HomeMy WebLinkAbout01-19-2021 Agenda Packet
Tuesday, January 19, 2021
San Luis Obispo Page 1
Based on the threat of COVID-19 as reflected in the Proclamations of Emergency issued by both the Governor
of the State of California, the San Luis Obispo County Emergency Services Director and the City Council of the
City of San Luis Obispo as well as the Governor’s Executive Order N-29-20 issued on March 17, 2020, relating
to the convening of public meetings in response to the COVID-19 pandemic, the City of San Luis Obispo will
be holding all public meetings via teleconference. There will be no physical location for the Public to
view the meeting. Below are instructions on how to view the meeting remotely and how to leave public
comment.
Additionally, members of the City Council are allowed to attend the meeting via teleconference and to
participate in the meeting to the same extent as if they were present.
Using the most rapid means of communication available at this time, members of the public are
encouraged to participate in Council meetings in the following ways:
1. Remote Viewing - Members of the public who wish to watch the meeting can view:
• View the Webinar (recommended for the best viewing quality):
➢ Zoom Link: https://zoom.us/j/97166611446?pwd=K3p6RXExelNjOERqMFkvTkIxOSsyZz09
➢ Telephone Attendee: +1 (669) 669-900-6833
➢ Webinar ID: 971 6661 1446; Passcode: 060901
Note: The City is switching to Zoom Webinar for City Council Meetings. All attendees will enter the
meeting muted. An Attendee tutorial is available on YouTube; please test your audio settings.
• Televised live on Charter Cable Channel 20
• View a livestream of the meeting on the City’s YouTube channel: http://youtube.slo.city
2. Public Comment - The City Council will still be accepting public comment. Public comment can be
submitted in the following ways:
• Mail or Email Public Comment
➢ Received by 3:00 PM on the day of meeting - Can be submitted via email to
emailcouncil@slocity.org or U.S. Mail to City Clerk at 990 Palm St. San Luis Obispo, CA 93401.
All emails will be archived/distributed to councilmembers, however, submissions after 3:00 p.m. on
the day of the meeting may not be archived/distributed until the following day. Emails will not be
read aloud during the meeting.
• Verbal Public Comment
➢ In Advance of the Meeting - Call (805) 781-7164; state and spell your name, the agenda item
number you are calling about and leave your comment. The verbal comments must be limited to 3
minutes. All voicemails will be forwarded to the Council Members and saved as Agenda
Correspondence. Voicemails will not be played during the meeting.
➢ During the meeting – Join the webinar (instructions above). Once the meeting has started, please
put your name and the item # you would like to speak on in the questions box. During the public
comment section for the item, your name will be called, and your mic will be unmuted. If you have
questions, contact the office of the City Clerk at cityclerk@slocity.org or (805) 781-7100.
San Luis Obispo City Council Agenda January 19, 2021 Page 2
6:00 PM
REGULAR MEETING
TELECONFERENCE
Broadcasted via Webinar
CALL TO ORDER: Mayor Heidi Harmon
ROLL CALL: Council Members Carlyn Christianson, Jan Marx, Andy Pease,
Vice Mayor Erica A. Stewart, and Mayor Heidi Harmon
PRESENTATIONS
1. CITY MANAGER REPORT / EMERGENCY SERVICES DIRECTOR COVID-19
UPDATE (JOHNSON – 20 MINUTES)
Recommendation:
City Manager / Emergency Services Director Derek Johnson will provide COVID-19
updates.
PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA
(Not to exceed 15 minutes total)
The Council welcomes your input. 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.
2. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
(PURRINGTON)
Recommendation:
Waive reading of all resolutions and ordinances as appropriate.
San Luis Obispo City Council Agenda January 19, 2021 Page 3
3.MINUTES REVIEW - JANUARY 12, 2021 COUNCIL MINUTES (PURRINGTON)
Recommendation:
Approve the minutes of the City Council meeting held on January 12, 2021.
4.2020 WATER RESOURCES STATUS REPORT (FLOYD / BARCENAS / METZ)
Recommendation:
Receive and file the City’s 2020 Water Resources Status Report.
5.FY 2019-20 ANNUAL REPORT ON DEVELOPMENT IMPACT FEES UNDER
ASSEMBLY BILL 1600 (ELKE / E. CANO)
Recommendation:
1.Review the 2019-20 Fiscal Year Report on Development Impact Fees in compliance
with AB 1600 annual disclosure requirements; and
2.Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, accepting the 2019-20 Annual Report on Development Impact
Fees reaffirming the necessity of Development Impact Fees and make findings of
Development Impact Fees and make findings related to Impact Fee Balances and In-
Lieu Fees.”
6.AUTHORIZATION TO ADVERTISE JEFFREY SEWER AND WATER
REPLACEMENT, SPECIFICATION NO. 1000090 (HORN / NGUYEN)
Recommendation:
1.Approve the project plans and specifications for Jeffrey Sewer and Water Replacement,
Specification Number 1000090; and
2.Authorize staff to advertise for bids; and
3.Authorize the City Manager to award the Construction Contract pursuant to Section
3.24.190 of the Municipal Code for the bid total, if the lowest responsible bid is within
the publicly disclosed funding amount of $2,410,000; and
4.Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, authorizing use of Sewer Fund Unassigned Working Capital to
support sewer replacement work for Jeffrey Sewer and Water Replacement,
Specification No. 1000090” appropriating $300,000 of Sewer Fund Unassigned Working
Capital.
San Luis Obispo City Council Agenda January 19, 2021 Page 4
7. AUTHORIZATION TO ADVERTISE BEEBEE / CUESTA / LOOMIS WATERLINE
REPLACEMENT, SPECIFICATION NO. 1000066 (HORN / NGUYEN)
Recommendation:
1. Approve the project plan and specifications for Beebee / Cuesta / Loomis Waterline
Replacement, Specification Number 1000066; and
2. Authorize staff to advertise for bids; and
3. Authorize the Assistant City Manager to award the Construction Contract pursuant to
Section 3.24.190 of the Municipal Code for the bid total, if the lowest responsible bid is
within the Engineer’s Estimate of $1,700,000; and
4. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, authorizing use of Sewer Fund Unassigned Working Capital to
support sewer replacement work for Beebee / Cuesta / Loomis Waterline Replacement,
Specification No. 1000066” appropriating $300,000 of Sewer Fund Unassigned Working
Capital to the Project Account 1000066.
8. RAILROAD SAFETY TRAIL TAFT TO PEPPER PROJECT, SPECIFICATION NO.
91375, SEWER PIPE RELOCATIONS AND CONSTRUCTION CONTINGENCY
(FLOYD / BARCENAS / HIX)
Recommendation:
Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, authorizing use of Sewer Fund Unassigned Working Capital to increase
construction contingencies for the Railroad Safety Trail Taft to Pepper Project, Specification
No. 91375, Sewer Pipe Relocations.”
PUBLIC HEARING AND BUSINESS ITEMS
9. CANNABIS BUSINESS PROGRAM AND REGULATION UPDATES
(HERMANN / BAILEY – 60 MINUTES)
Recommendation:
1. Receive an update on the City’s Cannabis Business Program; and
2. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, amending the City’s Master Fee Schedule with updated User and
Regulatory Fees for var ious commercial cannabis business activities”; and
3. Introduce an Ordinance entitled, “An Ordinance of the City Council of the City of San
Luis Obispo, California, amending Title 9 (Public Peace, Morals and Welfare), Chapter
9.10 (Cannabis Regulations) and Title 5 (Licenses, Permits and Regulations), Chapter
5.10 (Cannabis Business Tax) to establish uniform permit renewal requirements;” and
4. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, waive the Operator Permit Renewal Fees for Fiscal Year 2020 –
2021 for Commercial Cannabis Business Papa Bear Farms, LLC.”
San Luis Obispo City Council Agenda January 19, 2021 Page 5
10. ACCEPTANCE OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR FISCAL YEAR 2019-20 (ELKE / MALICOAT – 60 MINUTES)
Recommendation:
Review and accept the 2019-20 Comprehensive Annual Financial Report (CAFR) and Audit.
11. EMERGENCY ENFORCEMENT AUTHORITY MUNICIPAL CODE
AMENDMENTS AND CLARIFICATIONS (DIETRICK – 30 MINUTES)
Recommendation:
Adopt an Emergency Ordinance entitled, “An Emergency Ordinance of the City Council of
the City of San Luis Obispo, California, amending Chapter 2.24 (Emergency Services) and
Chapter 9.22 (Safety Enhancement Zones) of the Municipal Code to provide expressly for
direct enforcement of local, state and federal emergency rules, regulations, orders,
directives, or other enactments related to the declaration of a local, state or federal
emergency affecting the City of San Luis Obispo and further clarifying the meaning of the
phrase “any lawful rule or regulation issued pursuant to this Chapter” as used in Chapter
2.24.”
LIAISON REPORTS AND COMMUNICATIONS
(Not to exceed 15 minutes)
Council Members report on conferences or other City activities. At this time, any Council
Member or the City Manager may ask a question for clarification, make an announcement, or
report briefly on his or her activities. In addition, subject to Council Policies and Procedures,
they may provide a reference to staff or other resources for factual information, request staff to
report back to the Council at a subsequent meeting concerning any matter or take action to
direct staff to place a matter of business on a future agenda. (Gov. Code Sec. 54954.2)
ADJOURNMENT
The next Regular Meeting of the City Council will be held on Tuesday, February 2, 2021 at 6:00
p.m., via teleconference.
San Luis Obispo City Council Agenda January 19, 2021 Page 6
LISTENING ASSISTIVE DEVICES are available for the hearing impaired--please see City Clerk.
The City of San Luis Obispo wishes to make all of its public meetings accessible to the
public. Upon request, this agenda will be made available in appropriate alternative for mats to
persons with disabilities. Any person with a disability who requires a modification or
accommodation in order to participate in a meeting should direct such request to the City
Clerk’s Office at (805) 781-7100 at least 48 hours before the meeting, if possible.
Telecommunications Device for the Deaf (805) 781-7410.
City Council regular meetings are televised live on Charter Channel 20. Agenda related
writings or documents provided to the City Council are available for public inspection in the
City Clerk’s Office located at 990 Palm Street, San Luis Obispo, California during normal
business hours, and on the City’s website www.slocity.org. Persons with questions concerning
any agenda item may call the City Clerk’s Office at (805) 781-7100.
1010 Marsh St., San Luis Obispo, CA 93401
(805) 546-8208 . FAX (805) 546-8641
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
County of San Luis Obispo,
I am a citizen of the United States and a resident
of the county aforesaid, I am over the age of
eighteen years, and not a party interested in the
above entitled matter. I am the principal clerk
of the printer of the New Times, a newspaper
of general circulation, printed and published
weekly in the City of San Luis Obispo, County
of San Luis Obispo, and which has been
adjudged a newspaper of general circulation by
the Superior Court of the County of San Luis
Obispo, State of California, under the date of
February 5, 1993, Case number CV72789: that
notice of which the annexed is a printed copy
(set in type not smaller than nonpareil), has been
published in each regular and entire issue of said
newspaper and not in any supplement thereof on
the following dates, ro-wit:
J�
in the year 2021.
I certify (or declare) under the the penalty of
perjury that the foregoing is true and correct.
Dated at San Luis Obispo, California, this day
7 off ,p OVA r 2021.
Patricia Horton, New Times Legals
Proof of Publication of
CITY OF SAN LUIS OBISPO
NOTICE OF AVAILABILITY OF INFORMATION
ACCOUNT INFORMATION RELATEDTO
LOCAL AGENCY IMPROVEMENT FEES
Notice Issue Date: December 21, 2020
Notice is hereby given that as of the date noted above, the
Chy of San Luis Obispo has made available to the public a
draft reportentitled:
FY2919-2D ANNUAL REPORT ON DEVELOPER IMPACT FEES
PURSUANT TO GOVERNMENT CODE SECTION 66001 (AB
Irmo)
The notice is provided in accordance with Section 66006(b)
(2) of the California Government Code. The final report shall
be considered by the City Council at the following public
meeting:
When: Tuesday, January 19.2021 at 6:00 p.m.
Where: Teleconference — webinar details will be
available on the published agenda
The draft report is available online at htt is://www.slocily.
o rg/gove in ment/de pa rtme nt-directo ry/fina nc e-and-it/
online-documents/infrastrucur re-financing/A61800-
reports. If you are unable to view the document online
please contact the City Clerk's Office at cityclerk49slocity.
org or 805-781-7100 and one will be mailed to you. Public
comment, prior to the startofthe meeting, may be submitted
in writing via U.S. Mail delivered to the City Clerk's office at
990 Palm Street San Luis Obispo, CA 93401 or by email to
emailcouncil®slocity.org.
While the Council encourages public participation, growing
concern about the COVID-19 pandemic has required that
public meetings be held via teleconference. Meetings can
he viewed on Government Access Channel 20 or streamed
live from the Cibys YouTube Channel at httpJ/youtube.slo.
city.
This notice was pasted on December21, 2020 at 5:00 p.m. on
the Chy's bulletin hoard, located in front of City Hell, on the
door of the Finance Department and on the City's website
www.slochy.org. For further information, interested persons
may contact Brigitte Elks, Finance Director, at(805)781-7125
or belke®sloidy.org.
Teresa Purrington
City Clerk
January 7, 2021
.Umio & YevmnvlLNTMG ddmINNTMG OHa/BICSMPSSIPuNio NohdPeaatnf Pub
1010 Marsh St., San Luis Obispo, CA 93401
(805) 546-8208 . FAX (805) 546-8641
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
County of San Luis Obispo,
I am a citizen of the United States and a resident
of the county aforesaid, I am over the age of
eighteen years, and not a party interested in the
above entitled matter. I am the principal clerk
of the printer of the New Times, a newspaper
of general circulation, printed and published
weekly in the City of San Luis Obispo, County
of San Luis Obispo, and which has been
adjudged a newspaper of general circulation by
the Superior Court of the County of San Luis
Obispo, State of California, under the date of
February 5, 1993, Case number CV72789: that
notice of which the annexed is a printed copy
(set in type nor smaller than nonpareil), has been
published in each regular and entire issue of said
newspaper and not in any supplement thereof on
the following dates, to -wit.
Jal1t7AM, ! -
in the year 2021.
I certify (or declare) under the the penalty of
perjury that the foregoing is true and correct.
Dated at San Luis Obispo, California, this day
7 ofdAfq • 2021.
Patricia Horton, New Times Legals
Proof of Publication of
0
SAN LUIS OBISPO CITY COUNCIL
NOTICE OF PUBLIC HEARING
The San Luis Obispo City Council invites all interested
persons to participate in a public meeting on Tuesday,
January 19, 2021, at 6:00 p.m. While the Council
encourages public participation, growing concern
about the COVID-19 pandemic has required that public
meetings be held via teleconference. Meetings can
be viewed on Government Access Channel 20 or
streamed live from the City's YouTube Channel at
httpWimutube.slo.eity. Public comment, priorto the start
of the meeting, maybe submitted in writing via U.S. Mail
delivered to the City Clerk's office at 990 Palm Street,
San Luis Obispo, CA 93401 Or by email to emailcouncil®
slocity.org.
Public Hearing Item:
• A public hearing will be held for the City Council to
receive Cannabis Business Program and Regulation
updates, The update will recommend a change to
yearly license renewal fee paid by all applicants,
recommend ordinance amendments that place all
operators on an operator permit renewal cycle in line
with the fiscal year, and will recommend waiving the
yearly license renewal fee of a cannabis business
being annexed into the City of San Luis Obispo from
the time of annexation to the start of the next fiscal
year.
For more information, contact Georgina Bailey, Cannabis
Program Coordinator, far the City's Administration
Department at (805) 503-5339 or by email, gbailey®
slocity.org.
The City Council may also discuss other hearings or
business items before or after the items listed above. If
You challenge the proposed project in court, you may be
limited to raising only those issues you or someone else
raised at the public hearing described in this notice, or in
written correspondence delivered to the City Council at,
or prior to, the public hearing.
Reports for this meeting will be available for review
Online at www.siocity.org no later than 72 hours prior to
the meeting. Please call the City Clerk's Office at 1805I
781-7100 for more information. The City Council meeting
will be televised live on Charter Cable Channel 20 and
live streaming on the City', YouTube channel https://
youtube.slo.city.
Teresa Purrington
City Clerk
City of San Luis Obispo
January7,2021
&]—,YP—A). NT GAd,,MWOU /BIBINUVNNu Nmi PJ fdW
1010 Marsh St.; Sate Luis Obispo, CA 93401
(805) 546-8208 . FAX 1'805/ 546-8641
PROOF OF PUBLICATION
(2015,5 C.C,R)
S17,i%TE OF CALIFORNIA,
Count-y of San Luis Obispo,
I am a citizen of the United States and a resident
of the couray aforesaid; I am over the ac;e of
ighteen pear end not a party interested it the
above entitled saner. i al.i the princi:-jal clerk
of the printer of the New Times, a newspaper
of general circulation, printed and published
weekly in the City of San Luis Obispo, County
of Sari Luis Obispo, and which has been
adjucl`ged ,, newspaper of general circularion by
the Superior Court of the County of San Luis
Obispo, State of California, under the date of
Feb-uarti ';, 1993, Case number 0V727S9: that
nori;-c of ;vhi,-h the :inneyed is a printed cops
type not smaller than nonpareil), has been
pui>lisi,>^j i . ,,.ach regular and entire issue of said
n e spape a::c'. not in any suppt.cmen.t thereof o_.
chc ;liowin� dates. ro-wit-
aS+_ 2�
in Q
nc� r1.ear 202
i certif-,, (Ior declare) under the the penalty of
eeriury that the foregoing is true and correct.
Dared at San Luis 01.-!i io. California, this day
2021
Patricia Horton, New Times Legals
Mtn W�,i1�l�s
CII'2r Gulf
'�r:ni..il:.l•;is^i�1.{:,•.inIN—MGGNi..:/FVSIN ES4/Vubl,_None:/?r: �r cr Pu
FEB G1Le21
SAN LUIS OBISPO CITY COUNCIL
NOTICE OF ADOPTED EMERGENCY ORDINANCE
NOTICE IS HEREBY GIVEN that the City Council of the City of San Luis Obispo, California, at its Regular Meeting of January 19, 2021, introduced and adopted the emergency
ordinance listed below upon a motion by Council Member Christianson, second by Council Member Marx, and on the following roll call vote:
AYES: Council Member Christianson, Marx, Pease, Vice Mayor Stewart, and Mayor Harmon
NOES: None
ORDINANCE NO.1692 (2021 Series)
AN EMERGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING CHAPTER 2.24 (EMERGENCY SERVICES) AND
CHAPTER 9.22 (SAFETY ENHANCEMENT ZONES) OF THE MUNICIPAL CODE TO PROVIDE EXPRESSLY FOR DIRECT ENFORCEMENT OF LOCAL, STATE AND FEDERAL
EMERGENCY RULES, REGULATIONS, ORDERS, ➢IRECTIVES, t)R OTHER ENACTMENTS RELATE➢ TO THE DECLARATION OF A LOCAL, STATE OR FEDERAL EMERGENCY
AFFECTING THE CITY OF SAN LUiS OBISPO AN FURTHER CLARIFYING THE MEANING OF THE PHRASE "ANY LAWFUL RULE DR REGULATION ISSUED PURSUANT TO
THIS CHAPTER" AS USED IN CHAPTER 2.24
WHEREAS, the City of San Luis Obispo is currently subject to iota), state and federal declarations of emergency related to the pandemic COVID-19: and
W HER EAS.McCity and County haveexperieneed increasingandsignil!cant ratesof €nfectian, hospitalization. and death of residents within th a C ityand CountyduetoCOVID-19:and
WHEREAS, the City and County are currently subject to State Public Health and Execulive orders enacting
limitations on certain activities and business operations that increase the risk of transmission of COVID-19: and
WHEREAS, clear enforcement authority of public health and emergency measures directly by the City is imperative to mitigating against the spread of
COVIO-19 and confnuing increases in illness. loss of life and extended economic damage associated with extended limitations on and closures of businesses.
WHEREAS, there is an immediate and urgent need for clarification and amendment of the G ty's emergency and administrative enforcement provisions to ensure clear and
ccnslsfentenforcemefit of COVI0-19emergency and public health measures necessary to mitigate against Me risk of serious harm tocitizensof the City asthe result of COVID-19,
WHEREAS, failure to enact the provisions below as emergency measures could result in the invalidation of City enforcement of urgent
emergency rules and regulations intended iv mitigate and prevent the spread of COVID-19 within the City resulting in the increase of
activities within the City that present a risk of continuing and increasing illness and death of residents in the City due to COVID-19: and
WHEREAS, failure or refusal of businesses within the city to comply with COViD-19 public health and safety requirementSr and
uncertainty regarding the City's aWity+ to enforce such measures, may unfairly disadvantage businesses acting in good faith to abide
by applicable health and safety measures and result in an unfair advantage to businesses who violate or disregard such measures,
NOW, THEREFORE, BE R ORDAINED by the Council of the City of San Luis Obispo as follows:
SECTION 1. Findings. The Council hereby finds and declares the followiing:
a) During Ile existence of adeclared local, state, Grfederal emergency, It is necessaryforthe EmergancyServices Director, the D'rsasterCcurncilorthe City Gounci€to have clear
autharityto act quickly and d'rrectiyto enactsuch measuresas are deemed necessary to protect the health, safety and welfare of City operations and the residents of the City.
b) Express and unambiguous authority to enforce emergency and public health measures, orders or directives issued by County, State and
federal aulhorities will permit the City to respond effectively to rapidly evolving emergency situations and take direct and expedient action to
implement and enforce emergency and public health and safety measures necessary to protect the City organization and residents of the City-
c) It is the intent of the City Council that nothing herein is intended to or shall require the City to undertake the direct enforcement of any emergency or public
health measure, order or directive issued by any County of San Luis Obispo, State of California or linnet States jurisdictional authority authorized to issue
or enact such measures, orders or directives, but that the Emergency Services Director, the Disaster Council or the City Council shall be empowered
to enforce such measures, orders or directives, either criminally or administratively, as a violation of the municipal cede upon declaration, order or
resolution of the Emergency Services Director, the Disaster Council or the City Council pursuant to Chapter 2.24 and their local emergency powers.
d) The addition of Section 2.24.060 A.6.f as set forth below is a declaration and clarification of existing city Taw and. as such.
the declaration of otherwise existing emergency authority shall be applied in all instances, both prospectively and retroactively.
e) The addition of Sections 2.24, 1 DO D and E, as set forth in Section below is a dectaration and clarification of existing city law and,assuch, the meaning ofthe phrase "rule or
regulation issued pursuant to this chapter" asset forth in section 0 and as used elsewherein this Chaptershall be applled inail instances, both prospectively and retroactively.
f) The addition of Sections 2.24.100 F, as set forth in Section 3 below, is a declaration and ctarification of existing city law and. as such. the declaration and clarification
of existing emergency and legislative authority as set forth in Section F shall be applled in all instances, bath prospectively and retroactively.
SECTION 2. Section 2.24.060 (Officers — Powers and Duties), subseclion A.6, shall be arnended to add subsection f to read as Ioil ows:
f. Nothing herein shall limit or otherwise preclude the disaster Council or City Council from directly enacting measures or directing enforcement of measures in
furtherance of this Chapter or as deemed necessary bythe City Council to protectthe public heath, safety, and welfare, pursuantfo any declared local, state, orfederal
emergency by any lawful means otherwise available to them, including but not limited to, declaration, proCiamMion, Malian, minute Order, resolution, or ordinance.
SECTION 3. Section 2-24,100 (Violation — Penalty) of the San Luls Obispo Municipal Code shall be amended to read as to [lows:
It shall be a misdemeanor, punishable by fine nat in excess of five hundred dolbts or by imprisonment for a pedad not to exceed six months, or both, for any person,
during an emergency, to engage in the actions set forth in subsections A-C below:
A-Willluily obstruct. hinder, or delay any member of the emergency organization in the enforcement of any Lawful rule or
regulation issued pursuant to this chapter, or in the performance of any duty imposed upon him or her by virtue of this chapter.
B. Do any act forbid den by any lawful rule arregulation issued pu rsua nt to th is chapter, if such act is of such a nature as to give, or beIikely to give, assistanceto the enemy orto
imperil the lives or property of inhabitants of this city, or to prevent, hinder or delay the detense or protection thereof. Any violation of any duly enacted public health measure
to mitigate or prevent the transmission of a communicable disease that presents a risk of serious illness or death to City residents or of any emergency measure enacted to
prevent the exposure of residents to shall be presumed "to Imperil the lives or property 0f inhabitants of this city": and failure to remedy such violation after direction by any
authorized city personnel charged with enforcing such measu res shall bepresumed "to prevent, hinder ardelaythedefense orprotection Thereof"forpurposes of this Chapter.
C. Wear, carry or display, without authority. any means of identification specified by the emergency agency of the state. (Prior code § 2430.7)
D. As used in this Chapter 2.24. "rule or regulation issued pursuant to this chapter' means, in addition to any duty adopted ordinance of the City, any
duly adapted resolution, pr0claMatipn, declaration or order of the City Council, the Disaster Council or the Emergency Services Director in furtherance
of their respective emergency powers pursuant to a declared local (City or County), slate or federal emergency affecting Lira City of San Luis Obspo.
E. As used inthisChapter2.24,"rule orregulationissued pursuanttothischapter" shall also include any emergency orpublie heafthmeasure, orderordirectiveapplicable
in the City and issued by any County of San Luis Obispo, State of CallfomiaorUnitesStatesiurisdictional authority auth0riaed tofssue or enact such emergencyor public health
measures, orders or directives, where the City CoundI, Disaster Council and/or Emergency Services Director has authorized or directed the enforcement of such measures
pursuanttotheirpowersunderthischapterortheirotherwiseapplicab leauthoritytotakeactionsinfurtheranceoftheheafih,safetyandweliareoTtheeityorganlzationand residents.
F. In addition to misdemeanor prosecution, nothing herein shall preclude enforcement of violations of this Chapter by any means otherwise perm€fted by the San Luis
Municipal Code or other applicable law, including but not limited to administrative or civil enforcement.
SECTION 4. Section 9,22,020 B (Safety Enhancement Zone Violations) of Chapter 9,22 (Safety enhancement zone penalties and violations) is amended to read as follows:
B. Safety Enhancement Zane Violations. Pries for violations CGMMMed in the safety enhancement zone shall apply to the following provisions: Chapter 9.D4 (possession
of open containers or consumption of alcoholic beverages in public places), Chapter 9.05 (hosting a gathering vMere underage persons consume alcohol), Chapter
9.12 (noise control), Chapter 9.13 (unruly gatherings), Chapter 9.16 (dangerous and deadly weapons), and Chapter 9.20 (urination in public). Violations of Chapter 2.24
(Emergency Services), or of any duly enacted rule or regulation pursuant to Chapter 2.24. or of any local (City or County of San Luis Obispo), State of California, or Unfted
States emergency or public health emergency measure, order or directive issued pursuant to any declared local, state, or federal emergency applicable within the City
shall be suhiect to enforcement throughout the geographic limits of the City under this section immediately upon decia ration of the emergency, and for the duration of
the declared emergency, and shall be subject to an immediate $1,000 penalty as an immediate threat to public health or safety. A separate offense shall be deemed to
have been commided whenever a person repeats the act that canstitutes the violation.
SECTION 5. All prior ordinances affecting the provisions herein are superseded to the Went Ineon sistenl herewith but shall otherwise remain in fuR force and effect.
SECTION 6. Urgent Need. Based on the foregoing recitals and findings, all of which are deemed true and correct, this ordinance is urgently necessary as an emergency
measure for the immediate preservation of the public peace, health, or safety and, therefore. shall take eiiect immedlately upon adoption in accordance with the provisions
of Article Vl, Section 605 of the City Charter and Section 36937(b) of the Government Code.
SECTION 7. Publication. Within 15 drays after its passage, the City Clerk shall cause a summary of this Ordinance to be published at least once. with the names of those
City Council Members voting for and against fie Ordinance, in a newspaper of general circulation published and circulated In the city.
r SECTION 8. SeverahiIity. If arty provision of this Ordinance is held.invafid by a court of competent jurisdiction, such provision shall be considered a separate, distinct,
and independent provision and such holding shall not affect the validity and enforceability of the other provisions of this Ordinance.
Teresa Purrington
City Clerk
City of San Luis Obispo
January 28, 2021
San Luis Obispo Page 1
Tuesday, January 12, 2021
Rescheduled Regular Meeting of the City Council
CALL TO ORDER
A Rescheduled Regular Meeting of the San Luis Obispo City Council was called to order on
Tuesday, January 12, 2021 at 6:00 p.m. by Mayor Harmon via webinar.
ROLL CALL
Council Members
Present: Council Members Carlyn Christianson, Jan Marx, Andy Pease,
Vice Mayor Erica A. Stewart, and Mayor Heidi Harmon.
Council Members
Absent: None
City Staff
Present: Derek Johnson, City Manager; Christine Dietrick, City Attorney; and Teresa
Purrington, City Clerk; were present at Roll Call. Other staff members presented
reports or responded to questions as indicated in the minutes.
CITY ATTORNEY REPORT ON CLOSED SESSION
City Attorney Dietrick stated the City Council met in Closed Session on one item. The council
gave majority direction on negotiating parameters with city employee both represented and
unrepresented as noted on the agenda and no further reportable action was provided.
A. RECEIVE AN UPDATE FROM THE EMERGENCY SERVICES DIRECTOR AND
PROVIDE COVID-19 RELATED DIRECTION BASED ON CURRENT STATUS
Recommendation:
1. Receive an update from the Emergency Services Director related to COVID-19; and
2. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, affirming actions of the Emergency Services Director.”
City Manager Derek Johnson provided an in-depth staff report and responded to Council
questions.
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Public Comments:
None
---End of Public Comment---
ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY
COUNCIL MEMBER MARX, CARRIED 5-0 to adopt Resolution No. 11208 (2021 Series)
entitled, “A Resolution of the City Council of the City of San Luis Obispo, California,
affirming actions of the Emergency Services Director.
PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA
Briana Gomez
John Smigelski
Jackie Mansoor
Gessica Russo
Marshall James
Kanyn January
Kevin Foote
---End of Public Comment---
CONSENT AGENDA
ITEM #6 – Pulled from Consent by Mayor Harmon.
ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY
COUNCIL MEMBER PEASE, CARRIED 5-0 to approve Consent Calendar Items 1 thru 5.
1. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
CARRIED 5-0, to waive reading of all resolutions and ordinances as appropriate.
2. MINUTES REVIEW - DECEMBER 1, 2020, DECEMBER 8, 2020, AND
DECEMBER 10, 2020 COUNCIL MINUTES
CARRIED 5-0, to approve the minutes of the City Council meetings held on December 1,
2020, December 8, 2020, and December 10, 2020.
3. AUTHORIZE ADVERTISEMENT OF CALLE JOAQUIN SIPHON AND SEWER
LIFT STATION REPLACEMENT PROJECT, SPECIFICATION NO. 91118
CARRIED 5-0, to:
1. Approve the plans and specifications for the Calle Joaquin Siphon and Sewer Lift
Station Replacement Project, Specification No. 91118; and
2. Authorize staff to advertise the Project for bids; and
3. Adopt Resolution No. 11204 (2021 Series) entitled “A Resolution of the City Council
of the City of San Luis Obispo, California, Authorizing Use of Sewer Fund Unreserved
Working Capital for Construction of the Calle Joaquin Siphon and Lift Station
Replacement Project, Specification No. 91118 and General Fund Completed Projects
and Capital Reserves to Fund Silt Removal;” and
4. Authorize the City Manager to award the construction contract for the Project if the
lowest responsible bid is within available project funding.
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4. AUTHORIZATION TO APPLY FOR 2021 NATIONAL FITNESS CAMPAIGN
GRANT FUNDS
CARRIED 5-0, to:
1. Approve Resolution No. 11205 (2021 Series) entitled, “A Resolution of the City
Council of the City of San Luis Obispo, California, approving the application for 2021
National Fitness Campaign Grant Funds and allocating matching funds for an Outdoor
Fitness Court®” authorizing staff to pursue a grant application, for a total amount not to
exceed $25,000, with the National Fitness Challenge (NFC) for 2021 Healthy Cities
Campaign funding; and
2. If awarded the grant, appropriate the grant amount and additional necessary funding
from the Parkland-in-lieu (Quimby) Fund into the Parks and Recreation Department’s
budget upon grant award; and
3. Authorize the City Manager to execute the necessary grant documents including a sole
source contract with NFC for purchase and installation of a Fitness Court® Emerson
Park if grant is awarded.
5. AUTHORIZATION TO ADVERTISE RESERVOIR #1 COVER REPLACEMENT,
SPECIFICATION NO. 1000034
CARRIED 5-0, to:
1. Approve Contract Documents for Reservoir 1 Cover Replacement, Specification No.
1000034; and
2. Authorize staff to advertise for bids; and
3. Authorize the City Manager to award a contract for the lowest responsible bid if within
the Engineer’s Estimate of $703,500.
6. AWARD CONTRACTS FOR MOBILE DATA COMPUTER, IN-CAR VIDEO,
BODY-WORN CAMERA AND COMMUNICATION GATEWAY FOR POLICE
AND FIRE
Public Comment
Marshall James
---End of Public Comment---
ACTION: MOTION BY MAYOR HARMON, SECOND BY COUNCIL MEMBER
CHRISTIANSON, CARRIED 5-0 to:
1. Authorize the City Manager to award the contract to purchase Mobile Data Computers
and Mobile Communication Gateways to CDCE Inc; and
2. Authorize the City Manager to award the contract to WatchGuard for the purchase of in-
car video and body-worn camera systems; and
3. Authorize waiver of formal bids to cooperatively purchase mobile data computers and
communication gateway equipment as allowed under 3.24.060 E of the City of San Luis
Obispo Municipal Code using the Panasonic NASPO ValuePoint Contract Master
Agreement: MNWNC-124; and
4. Authorize waiver of formal bids to cooperatively purchase in-car video and body-worn
camera equipment as allowed under 3.24.060 E of the City of San Luis Obispo
Municipal Code using the University of California Statewide Contract Purchasing
Agreement #2018-000203; and
5. Authorize Drive Customs to install the mobile data equipment in the Public Safety vehicles.
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PUBLIC HEARING ITEMS AND BUSINESS ITEMS
7. HIGUERA STREET SIDEWALK REPAIR PROJECT, SPECIFICATION NO. 91320
Public Works Director Matt Horn and Acting City Engineer Brian Nelson provided an in-
depth staff report and responded to Council questions.
Public Comments:
Lana Johns, Property Owner
---End of Public Comment---
ACTION: MOTION BY COUNCIL MEMBER PEASE, SECOND BY MAYOR
HARMON, CARRIED 4-1 (WITH VICE MAYOR STEWART VOTING NO) to:
1. Adopt Resolution No. 11206 (2021 Series) entitled, “A Resolution of the City Council of
the City of San Luis Obispo, California, authorizing staff to recover the costs for
Higuera Street sidewalk repair in the amount of $66,080 $209,481 for installation of
Mission-Style sidewalk from the property owner of 858 & 860 Higuera Street, and in the
event of non-payment from the property owner, imposing an Administrative Lien on the
858 & 860 Higuera Street Property.” and amend Section 2 with the language in Option 2
presented at the meeting.
2. Consider a payment agreement with the property owner including a provision to that
agreement to require of the owner to waive further lien notification in the event of
default of the agreement.
RECESS
Council recessed at 8:03 p.m. and reconvened at 8:10 p.m., with all Council Members present.
Item 9 heard before Item 8 at the request of Vice Mayor Stewart.
9. CONSIDERATION OF THE DIVERSITY, EQUITY, AND INCLUSION TASK
FORCE RECOMMENDATIONS
City Manager Derek Johnson, Dale Magee, DEI-TF Project Manager, Amman Asfaw, DEI-
TF Chair, Beya Makekau, DEI-TF Facilitator provided an in-depth staff report and
responded to Council questions.
Public Comments:
Marshall James
---End of Public Comment---
ACTION: MOTION BY VICE MAYOR STEWART, SECOND BY MAYOR HARMON
CARRIED 5-0 to adopt Resolution No. 11207 (2021 Series) entitled, “A Resolution of the
City Council of the City of San Luis Obispo, California, recognizing and receiving the
recommendations of the Diversity, Equity, and Inclusion Task Force.”
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8. 2021-23 FINANCIAL PLAN PROCESS: ECONOMIC OUTLOOK, BUDGET
POLICES, AND CAPITAL IMPROVEMENT PLAN REVIEW
Finance Director Brigitte Elke and Principal Budget Analyst Natalie Harnett provided an in-
depth staff report and responded to Council questions.
Public Comments:
Thomas Arndt
Jordan
---End of Public Comment---
ACTION: By consensus, the Council directed staff to receive and file the following:
1. The 2021-23 Financial Plan Goal Setting Process; and
2. The City’s budget and fiscal policies; and
3. The economic outlook for the 2021-23 Financial Plan development; and
4. The current and long-term capital outlook plan review.
10. COUNCIL LIAISON SUBCOMMITTEE ASSIGNMENTS 2021
City Clerk Teresa Purrington provided an in-depth staff report and responded to Council
questions.
Public Comments:
None
---End of Public Comment---
ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY VICE
MAYOR STEWART, CARRIED 5-0 to approve Council Liaison Subcommittee
assignments for the calendar year of 2021 as presented in the staff report with the following
changes:
• Cultural Heritage Committee – Christianson/Marx
• LAFCO – Marx/Pease
• SLOCOG – Pease/Marx
• SLORTA – Pease/Marx
• Community Action Partnership – Stewart
• Homeless Services Oversight Committee – Christianson
• Climate Coalition – Harmon/Pease
• Central Coast Clean Energy – Marx/Stewart
• Change Legislative Platform to come to the full Council and change back to Ad-hoc
as needed.
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COUNCIL COMMUNICATIONS AND LIAISON REPORTS
By consensus, the Council directed staff to add, on a future agenda, options for addressing
adverse behavior and public health and safety issues happening in our parks and public spaces.
Vice Mayor Stewart provided an update regarding CAPSLO creating a DEI -TF and putting
together a needs assessment.
ADJOURNMENT
The meeting was adjourned at 10:44 p.m. The next Regular City Council Meeting is scheduled
for Tuesday, January 19, 2021 at 6:00 p.m., via teleconference.
__________________________
Teresa Purrington
City Clerk
APPROVED BY COUNCIL: XX/XX/2021
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Department Name: Utilities
Cost Center: 6001
For Agenda of: January 19, 2021
Placement: Consent Item
Estimated Time: N/A
FROM: Aaron Floyd, Utilities Director
Prepared By: Mychal Boerman, Utilities Deputy Director - Water
Jennifer Metz, Utilities Projects Manager
SUBJECT: 2020 WATER RESOURCES STATUS REPORT
RECOMMENDATION
Receive and file the City’s 2020 Water Resources Status Report.
DISCUSSION
The 2020 Water Resources Status Report (2020 Report; Attachment A) provides an overview
and update on the City's water resources. This report covers Water Year 2020, which extends
from October 1, 2019 through September 30, 2020. Highlights for the Water Year include:
1. In July of 2020, the City received a nearly $2
million planning-phase grant, funded through
Proposition 1, to study Tetrachloroethylene (PCE)
contamination of the groundwater basin. A detailed
understanding of the extent of PCE contamination
and remediation options are necessary steps in
fully utilizing the City’s groundwater pumping
opportunities. The planning phase will continue
through 2021 with implementation planned for
2022.
2. Completion of two capital projects including
replacement of waterlines on Casa, Stenner, and
Murray Streets surrounding Sierra Vista Hospital
and the Disinfection Byproduct Reduction and
Water Treatment Plant Pipe Gallery Improvements
Project.
3. Approval and construction kickoff of the City’s
$14.3 million Water Energy Efficiency project at
the Water Treatment Plant. This project is a
collaboration with Pacific Gas and Electric through
their Sustainable Solutions Turnkey Program.
Water Energy Efficiency Project
Installation of new Ozone Generators.
Installation of new Dilution Air Dryers.
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4. Preparation of plans and specifications for a Spillway Underdrain Repair project and
the draft Emergency Action Plan update, at the Whale Rock dam.
5. Replacement of pressure relief valves for Whale Rock Pump Station B, 2,000 feet of fence-
line around Whale Rock Reservoir, and the Reservoir’s boathouse structure.
6. Work with the County of San Luis Obispo on the Groundwater Sustainability Plan under the
Sustainable Groundwater Management Act.
7. Review of the new Department of Water Resources guidelines for the 2020 Urban Water
Management Plan.
8. Total water demand in the City for the 2020 Water Year was 4,730 acre-feet, down from
4,762 acre-feet in the 2019 Water Year.
9. The average water use in the City, in terms of gallons per capita per day (gpcd), declined
slightly to 92 gpcd during the 2020 Water Year from 93 gpcd in the 2019 Water Year.
10. The City received above average rainfall at two of its reservoirs (Nacimiento and Salinas
reservoirs) and below average rainfall in the Whale Rock Reservoir watershed.
Table 1: Water Year 2020 Summary
Water Year 2020 Summary 4
(October 1, 2019 to September 30, 2020)
Total Water Use: 4,730 acre-feet
Potable Water Use 4,493 acre-feet
Recycled Water Use (includes landscape irrigation and
construction water) 237 acre-feet
2020 City Population 45,920
Per Capita Demand Per Day (Potable and Recycled
Water) 92 gallons
Water Projection Model (as of September 30, 2020) >5 years of supply
Annual Water Resource Availability:
Salinas and Whale Rock Reservoirs 4,910 acre-feet
Nacimiento Reservoir 5,482 acre-feet
Recycled Water (usage from 2019) 215 acre-feet
Siltation (from 2010 to 2060) (500 acre-feet)
Total: 10,107 acre-feet
Water Supply Accounting:
Primary Water Supply 1 7,496 acre-feet
Reliability Reserve 2 1,204 acre-feet
Secondary Water Supply 3 1,407 acre-feet
NOTES:
1. Per General Plan Policy A 5.2.2, primary water supply is the amount of water needed for General
Plan build-out using the water use rate established by policy A 5.2.1 (117 gpcd).
2. Per General Plan Policy A 5.2.3, reliability reserve that is 20-percent of the water use rate
established in Policy A 5.2.1 multiplied by the City’s current population (45,920 for 2020).
3. Per General Plan Policy A 5.2.4, secondary water supply is the remaining City water supply
available after accounting for primary water supply and a reliability reserve.
4. Values are rounded.
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Policy Content
The 2020 Report was prepared in accordance with the General Plan, Water and Wastewater
Management Element, Program A5.3.1.1
Public Engagement
Annual Water Resources Status Reports have been provided to the City Council and community
since 1985 and serve to both inform future policy decisions as well as provide historical
documentation of water conditions. The current year’s Water Resources Status Report is made
available on the City website.
ENVIRONMENTAL REVIEW
The 2020 Report is not a "project" under the California Environmental Quality Act (CEQA),
because the action does not involve any commitment to a specific project which may result in a
potentially significant physical impact on the environment, as contemplated by Title 14,
California Code of Regulations, Section 15378.
CONCURRENCES
Community Development concurs with these findings.
FISCAL IMPACT
There are no fiscal impacts associated with the recommended action.
ALTERNATIVE
The City Council could elect not to receive and file the 2020 Report and provide direction to
staff on desired modifications. Staff does not recommend this alternative, as the 2020 Report
was prepared in compliance with General Plan, Water and Wastewater Management Element,
Policy A5.3.1.
Attachments:
a - 2020 Water Resources Status Report
1 General Plan, Water and Wastewater Management Element, Program A 5.3.1, states “An update on water supply
accounting and demand projections will be presented to the City Council as part of the annual Water Resources
Status Report.”
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2020 Water Resources Status Report
For the Time Period October 1, 2019 through September 30, 2020
Stenner Canyon Water Treatment Plant.
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City of San Luis Obispo
2020 Water Resources Status Report
Page 2
The City’s 2020 Water Resources Status Report was prepared in accordance with the General Plan, Water
and Wastewater Management Element, Policy A5.3.1. The reporting period corresponds to the 2020
Water Year (October 1, 2019 through September 30, 2020), the twelve-month period for which
precipitation totals are measured designated by the calendar year in which it ends. This report provides a
summary of the following for the 2020 Water Year:
I. Regulatory and Water Capital Projects Update
II. Water Supply
III. Water Demand
IV. Water Resource Availability
V. Water Supply Accounting
I. CAPITAL PROJECTS AND REGULATORY UPDATE
The City completed two large water infrastructure projects during the 2020 Water Year and began the
implementation of a third project with capital improvements totaling over $18.7 million. These projects
are summarized below along with key regulatory updates related to the Sustainable Groundwater
Management Act and the upcoming update to the City’s Urban Water Management Plan.
Disinfection Byproduct Reduction & Water Treatment Plant Pipe Gallery Improvement Project
In August, the City completed the approximately $2.6 million Disinfection Byproduct Reduction and
Water Treatment Plant (WTP) Pipe Gallery Improvements Project. The Project included modifications at
two potable water storage tanks (Clearwell #2 at the WTP and Edna Saddle Tank) for the installation of
specialty equipment (mixers, aerators, and ventilators) to effectively reduce disinfection byproducts to
improve water quality and meet regulatory requirements. The Project also included replacement of
corroded pipe within the pipe gallery at the WTP, and the replacement of a sections of effluent line and
additional valving to provide a means for improved maintenance flexibility within the pipe gallery .
Water Energy Efficiency Project
In November 2019, the City Council approved the Water
Energy Efficiency project that includes $14.3 million of
improvements to the City’s Water Treatment Plant. The
benefits of the project include:
1. Contribute to the City’s sustainability goals and
advancement toward Zero Net Energy.
2. Reduce energy consumption and greenhouse gas
emissions.
3. Replace obsolete equipment and components.
4. Improve ability to perform maintenance.
5. Improve reliability of achieving permit compliance.
6. Increase operational reliability, flexibility, and
redundancy.
7. Reduced staff requirements for manual operation.
It is estimated that implementation of the Water Energy
Efficiency Project will result in a reduction of energy usage of
over 33 percent annually from 2019 WTP operations. The
project is approximately 50 percent complete, with Phase 1
Installation of new Ozone Generators.
Installation of new Dilution Air Dryers.
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Commissioning planned for early 2021. The Project is scheduled to be complete in mid-2021.
Waterline Replacement Projects
During the 2020 Water Year, the City completed replacement of over 3,000 lineal feet of waterline on
Casa, Stenner, and Murray Streets surrounding Sierra Vista Hospital at a cost of approximately $1.7
million. Replacement of water distribution pipes and related facilities is an ongoing program aimed to
address aging, substandard, and deteriorating infrastructure, with the added benefit of reducing
customer impacts associated with emergency repairs. Waterline breaks occur with more frequency with
aging waterlines, and the resulting repairs are disruptive to the public and expensive to repair. The main
objectives of this program are to ensure reliable water service, reduce the need for emergency repairs,
and to enhance available fire flows.
Capital Improvements at Whale Rock Reservoir
At the request of the California Department of Water Resources, Division of Safety of Dams, the City
began preparing plans and specifications for a Spillway Underdrain Repair project at the Whale Rock
dam, as well as the first draft of the Emergency Action Plan update, during the 2020 Water Year. The Plan
is under review internally by staff. The City performs this work with its Whale Rock Commission partners,
Cal Poly State University and the California Men’s Colony.
Ongoing capital improvements aimed at maintaining infrastructure safety and reliability include
replacement of pressure relief valves for Whale Rock Pump Station B, replacement of 2,000 feet of fence-
line around Whale Rock Reservoir, and replacement of the Reservoir’s boathouse structure.
Sustainable Groundwater Management Act
The use of groundwater will increase resiliency in the City’s water supply portfolio by offering a local
water source to complement the City’s three surface water supplies. The Sustainable Groundwater
Management Act (SGMA) is a statewide law that requires Groundwater Sustainability Agencies (GSA) to
adopt groundwater management plans that outline actions needed to return groundwater basins to
sustainable levels of pumping and recharge.
Sunset bike ride at Whale Rock Reservoir.
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City of San Luis Obispo
2020 Water Resources Status Report
Page 4
The City is working with the County of San Luis Obispo GSA to create a single Groundwater Sustainability
Plan (GSP) that provides full coverage of the San Luis Valley Groundwater Basin. To-date, the first seven
chapters of the GSP have been drafted and released to the public for review. To get additional
information, to sign up for the interested stakeholder email list, or to see materials for past or upcoming
meetings related to the GSP development, interested parties are encouraged to visit
www.slowaterbasin.com. The San Luis Valley GSP must be submitted to California Department of Water
Resources (DWR) by January 31, 2022.
2020 Urban Water Management Plan Guidelines
California’s Department of Water Resources issued its draft 2020 Urban Water Management Plan
Guidelines in August 2020. The State’s new requirements include:
1. Water loss audit results that characterize distribution system losses.
2. Procedures for conducting annual water supply and demand assessment.
3. Five-year drought risk asssessment.
4. Energy analysis.
5. A six-phase water shortage contingency plan.
Many of these new State requirements are already part of the City’s water planning , including the
preparation of this Water Resource Status Report annually. Staff will present more information to the
City Council on the new requirements at a March 2021 Study Session, with consideration of the City’s
2020 Urban Water Management Plan in June of 2021.
II. WATER SUPPLY
Per the General Plan Water and Wastewater Management Element, Policy A2.2.1, the City uses multiple
water sources to meet its water supply needs. The City has four primary water supply sources including
Whale Rock Reservoir, Salinas Reservoir, Nacimiento Reservoir, and recycled water. Groundwater serves
as the City’s fifth supplemental water source. Substantial work efforts are being made to better
understand the City’s groundwater supplies and how they may be fully utilized in the future. The quantity
of water supplied by each water source for Water Year 2020 (from October 1, 2019 to September 30,
2020) is summarized in Table 1.
Table 1: City Water Supply by Source during the 2020 Water Year
(in acre-feet)
Nacimiento
Reservoir
Whale Rock
Reservoir 2
Recycled
Water
Salinas
Reservoir Groundwater 3 Total City Water
Demand
1,562 777 237 2,154 0 4,730
33% 16% 5% 46% 0% 100%
Notes:
1. Values are rounded.
2. Water delivered to Cal Poly State University is excluded from the City’s water demand.
3. Groundwater was not used for potable purposes during Water Year 2020.
During Water Year 2020, 33 percent of the City’s total water demand was met by Nacimiento Reservoi r.
San Luis Obispo County operates and maintains the water delivery system from Nacimiento Reservoir to
participating agencies (currently the cities of Paso Robles and San Luis Obispo, Atascadero Mutual Water
Company, Templeton Community Services District, County Service Area 10A [Cayucos], Santa Margarita
Ranch, and Bella Vista Mobile Home Park). The Nacimiento Project Commission provides oversight to
project operations, maintenance, and the project budget. The Commission is made up of representatives
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from each of the four agencies’ governing boards and a County Representative who is a member of the
County Board of Supervisors who also sits on the Board of Directors for the Flood Control District.
During Water Year 2020, water demand totaled 4,730 acre-feet, below the ten-year average of 5,004
acre-feet (for 2011 to 2020), and the lowest total water demand since 2015. This is likely due to the
impacts of COVID-19. The City utilized a total of 2,931 acre-feet from Salinas and Whale Rock reservoirs,
meeting 62 percent of total City water demand. The City pays the County of San Luis Obispo Flood Control
and Water Conservation District (County) to provide oversight, operations, and maintenance of Salinas
Reservoir and related water delivery facilities. The City provides oversight, operations, and maintenance
of the Whale Rock Reservoir for the benefit of the Whale Rock Commission, a joint powers agency made
up of Cal Poly State University, California Men’s Colony, and the City.
For Water Year 2020, the City delivered 237acre-feet of recycled water for landscape irrigation and
construction water. This equates to five percent of total City water demand. New recycled water
customers during the 2020 Water Year include several properties in the Orcutt Specific Plan Area.
Although the City suspended using groundwater for potable purposes in April 2015, groundwater wells
remain in an operable, stand-by position should the use of groundwater be needed. In July of 2020,
the City received a nearly $2 million planning -phase grant, funded through Proposition 1, to study
Tetrachloroethylene (PCE) contamination of the groundwater basin. A detailed understanding of the
extent of PCE contamination and remediation options are necessary steps in fully utilizing the City’s
groundwater pumping opportunities. The planning phase will continue through 2021 with
implementation planned for 2022.
III. WATER DEMAND
During Water Year 2020, the breakdown of water use in the City by sector is as follows:
• 65.8 percent of water use supported single and multi-family residential uses, or
3,112 acre-feet,
• 20.8 percent of water use supported commercial and other non-residential uses,
or 984 acre-feet,
• 8.3 percent of water use supported separately metered landscape irrigation
(potable water), or 393 acre-feet,
• 4.4 percent of water use supported separately metered landscape irrigation
(recycled water), or 208 acre-feet, and
• 0.7 percent of water use supported construction (recycled water), or 33 acre-feet.
Compared to the prior water year, total City water demand for single and multi-family residential uses
increased from 60.5 percent in Water Year 2019 to 65.8 percent in Water Year 2020, likely due to both
remote work and remote learning during COVID-19. During the same timeframe, water demand for
commercial uses decreased from 28.4 percent in Water Year 2019 to 20.8 percent in Water Year 2020.
Historical water use is summarized in Table 2, as well as corresponding population, per capita use rate,
and rainfall. The 2020 per capita water use was 92 gallons per capita per day (gpcd). Per capita water use
is calculated by dividing total water use (including recycled water) in the City by the City’s population.
Total water use includes residential and daytime population needs for all uses such as restaurants, hotels,
industrial/manufacturing, government/schools, and irrigation. Based on the City’s General Plan Water
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and Wastewater Management Element policies, the City uses a factor of 117 gpcd to project water
required to serve the General Plan’s estimated population in 2035.
The City’s water supply reservoirs are in different watersheds, therefore rainfall at various locations
within San Luis Obispo County benefits the City. As shown in Table 3, during Water Year 2020, two
reservoir locations (Rocky Butte and Salinas Dam) received more than the annual average. The remaining
location, Hwy 46 and W 7 Mile Road, Cambria, CA, received less than average rainfall.
Table 2: Population, Water Use, and Rainfall, 2011-2020
Year Population3 Total Water Use
(acre-feet)
Per Capita Water Use
(gpcd) Rainfall1,2 (inches)
2011 45,418 5,285 104 18.9
2012 45,308 5,541 109 21.5
2013 45,541 5,892 116 3.8
2014 45,473 5,524 109 14.2
2015 45,802 4,990 97 11.8
2016 46,117 4,731 92 17.8
2017 46,424 4,975 95 35.1
2018 46,548 5,225 100 12.9
2019 45,9374 4,762 93 27.1
2020 45,920 4,730 92 21.59
NOTES:
1. Rai nf all for 2011 through 2012 calendar year source was from the Cal Poly CIMIS Weather Station. Rainfall for calendar
year 2013 through 2020 was from data for SLO Reser voir available from SLO County at:
https://wr.slocountywater.org/list/?sensor_class=11&mode=sensor&cache=1&refresh=off
2. Rainfall data for 20011-2014 is for the calendar year; 2015-2020 data covers the Water Year (October 1 to September 30).
3. City population data is available at the CA Department of Finance website at:
http://www.dof.ca.gov/Forecasting/Demographics/Estimates/e-1/
4. The City’s 2019 population figure reflects the revised estimate available from the CA Department of Finance in 2020 since
the 2019 Water Resource Status Report.
Table 3: Water Year 2020 Rainfall Totals
Rainfall Measurement
Location Watershed
Annual
Average
Rainfall
(in inches)
Water Year
2020
Total Rainfall
(in inches)
Water
Year 2020
Percent of
Average
Rocky Butte Nacimiento Reservoir 40 43.38 108%
Hwy 46 and W 7 Mile
Road, Cambria, CA Whale Rock Reservoir 30 17.49 58%
SLO Reservoir San Luis Obispo Creek 24 21.59 90%
Salinas Dam Salinas Reservoir 22 23.71 107%
Source: https://wr.slocountywater.org/list/?sensor_class=11&mode=sensor&cache=1&refresh=off
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City of San Luis Obispo
2020 Water Resources Status Report
Page 7
NOTE: In 2016, the City recognized the full allocation of Nacimiento Reservoir increasing the City’s
contractual water supply from 3,380 acre-feet to 5,482 acre-feet annually (+2,102 acre-feet). Following the
end of the drought in 2016, the City updated the Safe Annual Yield model for Whale Rock and Salinas
Reservoirs incorporating rainfall data and three climate change scenarios. In 2018, the City recognized the
reduction from 6,940 acre-feet to 4,910 acre-feet in Safe Annual Yield (-2,030 acre-feet).
IV. WATER RESOURCE AVAILABILITY
The following table summarizes the Water Resource Availability based on Water and Wastewater
Management Element, Section 3. Water availability for Water Year 2020 is 10,107 acre-feet.
Table 4: Water Year 2020 Water Resource Availability
Water Resource Acre-Feet Description
Salinas & Whale Rock Reservoirs 4,910 Safe Annual Yield 1
Nacimiento Reservoir 5,482 Dependable Yield 2
Recycled Water 215 2019 Annual Usage 3
Siltation from 2010 to 2060 (500) WWME Policy A 4.2.2 4
10,107 2020 Availability
NOTES:
1. The City’s Safe Annual Yield model was updated in 2018.
2. Dependable Yield is the contractual amount of water the City has rights to from
Nacimiento Reservoir.
3. The quantity of recycled water included (215 acre-feet) is the actual prior year’s usage
(calendar year 2019) per General Plan Water and Wastewater Management Element
Policy A 7.2.2.
4. Reservoir siltation is a natural occurrence that reduces storage capacity over long
periods, resulting in the reduction of safe annual yield.
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City of San Luis Obispo
2020 Water Resources Status Report
Page 8
V. WATER SUPPLY ACCOUNTING
Per General Plan Water and Wastewater Management Element (WWME), Section 5, the City accounts
for water supplies necessary to meet three specific community needs:
• Primary water supply
• Reliability reserve
• Secondary water supply
Primary water supply is defined as the amount of water needed to serve the City’s future residential and
non-residential water demand, based on the population identified in the General Plan, Land Use Element
(2014). Table 3 in the Land Use Element identifies an urban reserve capacity of 57,200 people1. The
quantity of water needed for the primary water supply is calculated per WWME Policy A 5.2.2, using 117
gallons per capita per day (gpcd).
The City’s reliability reserve is defined as the buffer for future unforeseen or unpredictable long-term
water supply impacts. The quantity of water for the reliability reserve is defined in WWME Policy A 5.2.3,
using 20 percent of the existing City population (45,920, 2020 population) at 117 gpcd. Based on this
policy, the reliability reserve will change over time as the City’s actual population changes. The reliability
reserve concept is included in the City’s Charter (Section 909) which identifies that the water may not be
used to serve future development.
The City’s secondary water supply is defined as the amount of water remaining from available water
resources above those needed to meet the primary water supply and reliability reserve. The secondary
supply is identified to meet peak water demand periods or short-term loss of City water supply sources,
per WWME Policy A 5.2.4.
Water suppl y accounting for the 2020 Water Year is summarized in the table below and shown in
Appendix A .
1 The City’s population projection of 57,200 persons, from the General Plan Land Use Element, is based one percent
growth annually between 2014 and 2035. By policy, certain housing types and areas are excluded from this growth
rate and projection (affordable housing, etc.). The City’s estimated Primary Water Supply need is based on
projected population but encompasses all water demand in the City (residential, non-residential, and irrigation). In
WY 2020, single-family and multi-family residential water demand was 65.8 percent of total City water demand.
2020 Water Supply Accounting
Primary Water Supply = 117 gpcd x City Build-out Population, in acre-feet per year
117 gpcd x 57,200 x 365 day/year x acre-ft/325,851 gallons = 7,496 acre-ft per year
Reliability Reserve = 117 gpcd x 2020 City Population x 20 percent, in acre-feet per year
117 gpcd x 45,920 x 365 day/year x acre-ft/325,851 gallons x 20 percent = 1,204 acre-ft per year
Secondary Water Supply = Current Annual Availability – Primary Water Supply – Reliability Reserve
10,107 acre-ft/year A – 7,496 acre-ft/year – 1,204 Acre-Ft/year = 1,407 acre-ft per year
A 2020 Annual Water Resource Availability from table above.
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City of San Luis Obispo
2020 Water Resources Status Report
Page 9
Table 5: 2020 Water Supply Accounting (in acre-feet)
Primary Water Supply Reliability Reserve Secondary Water
Supply Total
7,496 1,204 1,407 10,107
SOURCE: Policies related to Water Supply Accounting are found in the City’s General Plan Water and Wastewater Management
Element (Policies A 5.2.2 through A 5.2.4).
In summary, the City maintains a robust water supply portfolio with greater than five years of wa ter
available. Per capita water use (obtained from adding up all water used by visitors, residents, commercial
uses, etc.) decreased during the 2020 Water Year to 92 gallons per capita per day (gpcd) from 93 gpcd
during the 2019 Water Year. City population figures, and associated gallons per capita per day, reported
in the 2019 Water Resource Status Report were updated from Department of Finance data.
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City of San Luis Obispo
2020 Water Resources Status Report
Page 10
Appendix A.
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BLANK PAGE
This page is intended to be blank so that you can print double-sided.
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Department Name: Finance
Cost Center: 2005
For Agenda of: January 19, 2021
Placement: Consent
Estimated Time: N/A
FROM: Brigitte Elke, Finance Director
Prepared By: Esteban Cano-Gutierrez, Financial Analyst – Infrastructure Financing
SUBJECT: FY 2019-20 ANNUAL REPORT ON DEVELOPMENT IMPACT FEES UNDER
ASSEMBLY BILL 1600
RECOMMENDATION
1. Review the 2019-20 Fiscal Year Report on Development Impact Fees in compliance
with AB 1600 annual disclosure requirements: and
2. Adopt a Resolution (Attachment A) accepting the report and making applicable
findings related to impact fee balances and in-lieu fees.
DISCUSSION
Background
The City of San Luis Obispo (City) has an adopted development impact fee program that is
subject to AB 1600 (the Mitigation Fee Act, Gov. Code §§ 66000 et seq.) and its annual
disclosure and reporting requirements. This report (Attachment B) is developed to satisfy the
required criteria by briefly describing each type of fee, identifying the amount of each fee
collected, the disbursements made from each fee type, and the amount of interest apportioned to
each fee balance during the 2019-20 fiscal year. In addition, an accompanying analysis has been
prepared that reflects, for each fee type, the aging of the balance held by the City.
As required by Gov. Code 66006(b), this report was made available for public inspection on the
City’s website, in the City Clerk’s Office, and in the Finance Department on December 23, 2020.
Notice of Availability was published in the New Times and posted on the City’s website on
December 24, 2020.
The individual fund schedules provide a breakdown of the fee balances on hand as of June 30,
2020, based on the City’s audited financials. AB1600 requires that the annual report include the
following information:
A. A brief description of the type of fee in the account or fund.
B. The amount of the fee.
C. The beginning and ending balance of the account or fund.
D. The amount of the fees collected, and the interest earned.
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E. An identification of each public improvement on which fees were expended and the
amount of the expenditures on each improvement, including the total percentage of the
cost of the public improvement that was funded with fees.
F. An identification of an approximate date by which the construction of the public
improvement will commence if the local agency determines that sufficient funds have
been collected to complete financing on an incomplete public improvement, as identified
in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains
incomplete.
G. A description of each interfund transfer or loan made from the account or fund, including
the public improvement on which the transferred or loaned fees will be expended, and, in
the case of an interfund loan, the date on which the loan will be repaid, and the rate of
interest that the account or fund will receive on the loan.
H. The amount of refunds made pursuant to subdivision (e) of Section 66001 and any
allocations pursuant to subdivision (f) of Section 66001.
The following is a brief description of the purpose of the fee and the nature of projects funded in
the current year.
The City of San Luis Obispo's Fee Areas
Citywide Transportation Impact Fee
This impact fee was established for the construction of multimodal transportation infrastructure
within the City, needed to support planned growth as adopted under the City's General Plan. As
of June 30, 2020, $8,750,403 in funds were available for transportation projects. There were
twelve active projects funded by this fee during the most recent fiscal year. The following ones
have impact fees associated to them:
1. 49% of Prado Road Bridge Widening
2. Bike Bridge at Phillips
3. Railroad Safety Trail at Taft & Pepper
4. Monterey/Osos Traffic Signal
5. Los Osos Valley Road Interchange Landscape
6. California Taft Roundabout
7. Broad Street Corridor Improvements
8. Topographic Survey and Right-of-Way Establishment
9. Design of the Orcutt & Tank Roundabout
10. Prado Road Interchange
Margarita & Airport Specific Plans Transportation Impact Fee
These two impact fees were established for the expansion of transportation facilities in and
around the Margarita and Airport areas to support planned development in those specific plan
areas. On April 3, 2018, the City Council adopted Resolution no. 10908 (2018 Series) in
compliance with AB1600. As part of that approval, projects that were previously contained in the
Airport and Margarita sub-area fee programs were incorporated into the Citywide Transportation
Impact Fee program which became effective July 1, 2018.
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For the Margarita Area, there remains a yet to be reimbursed interfund loan of $1,468,509
between the Park in-lieu program and the Citywide fee program. As of June 30, 2020,
$1,114,404 in funds were available for projects for the Airport Area and $2,064,138 in the
Margarita Area.
Orcutt Area Impact Fee
This impact fee was established for the expansion of transportation and park facilities in and
around the Orcutt area to support planned development in that specific plan area. The Orcutt
Area Specific Plan (OASP) Public Facilities Financing Plan (PFFP) was amended on December
17, 2017, and again on October 16, 2018, to update cost to reflect current construction estimates
and to revise the scope of certain capital improvement projects within the PFFP. As of June 30,
2020, $63,980 in funds were available for projects for the Orcutt Area.
Los Osos Valley Road Impact Fee
This add-on impact fee was established for the expansion of capacity for the Los Osos Valley
Road (LOVR) interchange at US 101 for construction, pr oject management, and inspection.
Though the interchange project has been completed there are still minor projects that the City
will need to implement at this location. The fee program was revised in 2019 to reflect the
completion of the interchange construction work and the remaining projects. The City has an
existing reimbursement agreement with Costco with a current balance owed of $1,802,582 for
improvements already constructed at the LOVR interchange, most notably the relocation of Calle
Joaquin that still is an obligation of the impact fee fund. As of June 30, 2020, $441,269 in funds
were available for projects for the LOVR area.
Parkland Development Fees
This fee was established for the purpose of acquisition and development of community parks and
existing park facilities intended for access and use by the entire City. As of June 30, 2020,
$4,612,184 in funds were available for parkland projects.
Open Space Protection
This fee was established to address the need to acquire new open space lands commensurate with
similar land lost to development projects within the Airport Area Specific Plan and the land will
be added to the City's existing open space inventory. As of June 30, 2020, $812,233 in funds
were available for open space projects.
Water Impact Fee
This fee was established for the expansion and improvement of facilities used for water supply,
water treatment, and water distribution. The current balance of the Water Impact Fee Fund is $-
2,715,566. The fees are used for debt service for the following projects:
1. Nacimiento Pipeline
2. Water Reuse Project Loan
3. 2018/2006 Water Treatment Plant Refunding Debt Service
4. 2012 Water Refunding Debt Service
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Sewer Impact Fee
This impact fee was established for the expansion and improvement of facilities used for sewer
collection and sewer treatment. The current balance of the Sewer Impact Fee Fund is $596,178.
The fees were used for the following projects:
1. Calle Joaquin Lift Station
2. Margarita Lift Station
3. Water Resource Recovery Facility (WRRF) Upgrade
4. Tank Farm Lift Station
Public Safety Impact Fee
This impact fee was established to cover the City of San Luis Obispo's Police and Fire services,
including but not limited to patrol services, 911-dispatch, a traffic safety unit, neighborhood
services, records unit, investigations, fire administration, fire emergency response, prevention
and education, training, technical services, and disaster preparedness. The fee will be used to
renovate Fire Stations 1, 2, 3, and 4 and construct Fire Station 5 and replace the fir e vehicles and
equipment needed to serve the City through General Plan buildout. It will also help construct a
new police headquarters and purchase vehicles to maintain the existing ratio of police vehicles to
service population. As of June 30, 2020, $183,812 in funds were available for public safety
projects.
Policy Context
As the City has an active development impact fee program, this report is an annual requirement
under AB 1600 and specifically Gov. Code 66006(b)which governs impact fee collection and
disbursement.
Public Engagement
This report was made public on December 23, 2020, so that, interested parties can review the fee
collection, applicable uses, and disbursements during the fiscal year.
CONCURRENCE
The Public Works and Utilities Departments concur with the recommendations contained
within this report.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
particular report, because the action does not constitute a "Project" under CEQA Guidelines
Sec. 15378.
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FISCAL IMPACT
Budgeted: N/A Budget Year: 2019-20
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund
State
Federal
Fees
Other:
Total N/A N/A N/A
The action before the City Council in itself does not have a fiscal impact. However, AB 1600
reports on the City's impact fee collection, the use of the fees, and the status of projects for which
the fee has been collected. It therefore summarizes the fiscal impact of the fees in advancing
important infrastructure projects for the City.
ALTERNATIVES
Council could choose not to make the findings called for in this report. This is not
recommended as it would require reimbursement of certain impact fees collected under the
program and present a monetary shortfall for many of the development related improvements.
Attachments:
a - Draft Resolution
b - AB1600 Report FY 2019-20
c - Exhibit A - Impact Fees Schedule FY 2019-20
d - Exhbit B - Impact Fees Collected FY 2019-20
e - Exhibit C - Impact Fees Disbursed per Project FY 2019-20
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RESOLUTION NO. ______ (2021 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ACCEPTING THE 2019-20 ANNUAL REPORT
ON DEVELOPMENT IMPACT FEES REAFFIRMING THE NECESSITY
OF DEVELOPMENT IMPACT FEES AND MAKE FINDINGS OF
DEVELOPMENT IMPACT FEES AND MAKE FINDINGS RELATED TO
IMPACT FEE BALANCES AND IN-LIEU FEES
WHEREAS, the City of San Luis Obispo (“City”) has an established Development
Impact Fee program and collects applicable fees according to the program; and
WHEREAS, the City is required to make certain findings every five years with respect
to the unexpended fund balance of certain development impact fee funds pursuant to California
Government Code section 66001; and
WHEREAS, the documents, reflecting the balance in each development impact fee fund
or account, the accrued interest, and the amount of expenditure by public facility for the fiscal year,
have been made available for public review as required by California Government Code section
66006; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Recitals. All of the above recitals are true and correct and are incorporated
herein by this reference.
SECTION 2. Acceptance. The 2019-20 Annual Report on Development Impact Fees is
hereby accepted.
SECTION 3. Findings. The following findings are made as required under Government
Code section 66001:
1. The purpose to which each Development Impact Fee is collected for has been
identified.
2. There is a continued need for the improvements and that there is a reasonable
relationship between the fee, the timing of the improvements, and the impacts for
development for which the fees are collected.
3. The sources and amounts of funding anticipated to complete the financing of capital
projects have been identified and will be deposited into the appropriate account upon
receipt or during the normal capital improvement program budget cycle.
4. A copy of the approved resolution shall be forwarded to the Finance Director for use
in overseeing these monies.
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Resolution No. (2021 Series) Page 2
R ______
SECTION 4. These findings are based, in part, on information provided in the City of San
Luis Obispo’s 2019-21 Capital Improvement Plan.
Upon motion of , seconded by _____________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this day of ________________ 2021.
____________________________________ 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, on _________________________.
____________________________________
Teresa Purrington
City Clerk
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City of San Luis Obispo
AB 1600 Annual Report and Findings
The City of San Luis Obispo has an adopted Development Fee program, governed under AB 1600 which is
otherwise known as the Mitigation Fee Act and is codified in Government Code §§ 66000 et seq. The
power to exact development impact fees arises from the City's police power to protect the public health,
safety, and welfare. (Cal. Const., Art. XI, § 7.) The police power allows a city to act in the interest of its
citizenry and to enact and enforce ordinances and regulations that are not in conflict with state law. Charter
cities have the additional power to regulate by virtue of their plenary authority with respect to municipal
affairs. (Cal. Const., Art. XI, § 5.)
When does AB 1600 Apply?
AB 1600 applies to all local agencies in the state, including all general law and charter cities. (Gov. Code
§ 66000(c).) However, AB 1600 does not apply to every fee or exaction collected by a local agency. AB
1600 only applies when a local agency imposes a fee on an applicant in connection with approval of a
development project to defray all or a portion of the cost of public facilities related to the project. (Gov.
Code § 66001.) "Public facilities" are defined to include public improvements, public services, and
community amenities. (Gov. Code § 66000(d).)
Definition of Development Impact Fees
A development impact fee is a monetary exaction other than a tax or special assessment that is charged by a
local governmental agency to an applicant in connection with approval of a development project for the
purpose of defraying all or a portion of the cost of public facilities related to the development project. (Gov.
Code § 66000(b).) A development impact fee is not a tax or special assessment; by its definition, a fee is
voluntary and must be reasonably related to the cost of the service provided by the local agency. If a
development impact fee does not relate to the impact created by development or exceeds the reasonable
cost of providing the public service, then the fee may be declared a special tax and must then be subject to a
two-thirds voter approval. (Cal. Const., Art. XIII A, § 4.)
Annual Accounting for Fees
Funds collected for each capital facility or service shall be deposited in separate accounts and not
commingled with any other funds for other impact fees. (Gov. Code § 66006(a).) While funds are accruing
for individual capital facilities, the city must keep track of each fund and provide an annual report. (Gov.
Code § 66006(b).)
Annual Report
This report is submitted to satisfy the requirements of AB 1600 and identifies the amount of each
development impact fee collected, the disbursements made from each fee type and the amount of interest
apportioned to each fee balance during the 2019-20 fiscal year. Accompanying the report is information
specifically prepared to reflect each fee type and the aging of the balance held by the City. Per AB 1600,
each fee collected to mitigate a specific impact has to be spent within five years of collection. If the fee is
held beyond this time frame due to specific circumstances or insufficient collection for the needed
improvements, the City Council must make specific findings to continue holding the fees. Otherwise, the
fees are subject to refund.
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As required by law, the development impact fee report has been available for public inspection prior on the
City’s website, the City Clerk’s office, and the Finance Department public counter on December 23, 2020.
Notice was posted on the City Clerk’s bulletin board in front of City Hall on December 23, 2020.
The schedules referred to above provide a breakdown of the individual fee balances on hand as of June 30,
2020 based on unaudited information. The Mitigation Fee Act requires that this report include the following
information:
1. The amount of each fee. (Exhibit A)
2. The amount of developer fees disbursed on each project for the year just ended. (Exhibit B)
3. The amount of developer fees collected for the year just ended. (Exhibit C)
4. The amount of interest earned by the developer fees for the year just ended.
5. Any other income received that is related to the projects, if applicable.
6. The beginning and ending fund balance for each development fee account.
7. The total cost of projects undertaken during the last year and the percentage of the project cost paid
out of developer fees.
8. The identification of an approximate date by which the construction of the public improvement will
commence if the local agency determines that sufficient funds have been collected to complete
financing on an incomplete public improvement and the public improvement remains incomplete.
9. The amount and purpose of all interfund transfers during the last year.
10. A brief description of the purpose of the fee and the nature of projects funded in the current year.
AB 1600 Fee – Fund Details
Parkland Development Impact Fees (Fund 501)
This impact fee was established for the purpose of acquisition and development of community parks and
existing park facilities intended for access and use by the entire city.
As of June 30, 2020, $4,617,894 in funds are available for projects and $323,842 of Parkland Development
Impact Fees have been held longer than five years.
Finding: the $323,842 can be attributed to park impact fees collected for the park planned to be built within
the Margarita Area Specific Plan (MASP). At this time, the land zoned for park space is still privately owned
and the current owners are not interested in selling or developing the land. Therefore, the City has not spent
the funds collected specifically for the development of the MASP park. The City still anticipates using the
funds collected for the MASP park at the time the landowner decides to sell or develop.
Aging of Funds Held
Current Yr
Funds
FY 2019-20
1 yr old
Funds
FY 2018-19
2 yr old
Funds
FY 2017-18
3 yr old
Funds
FY 2016-17
4 yr old
Funds
FY 2015-16
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
1,387,412$ 1,677,252$ 484,228$ 522,336$ 222,825$ 4,294,052$ 323,842$ 4,617,894$
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Open Space Protection Impact Fees (Fund 502)
This impact fee was established to address the need to acquire new open space lands commensurate with
similar land lost to development projects within the Airport Area Specific Plan (AASP) and will be added to
the City’s existing open space inventory. In fiscal year 2019-20, no impact fees were collected associated
with the AASP and no balance attributed to impact fees is held in the Open Space Protection Fund, as it is
demonstrated in the balance for the recent 7 years below.
Transportation Impact Fee (Fund 507)
This impact fee was established for the expansion of transportation facilities and travel lanes within the
City. There were seven active projects funded by this fee during the most recent fiscal year.
1. 49% of Prado Rd Bridge Widening
2. Bike Bridge at Phillips
3. Railroad Safety Trail at Taft and Pepper
4. Monterey/Osos Traffic Signal
5. Los Osos Valley Road Interchange Landscape
6. California/Taft Roundabout
7. Broad Street Corridor Improvements
8. Topographic Survey and Right-of-Way Establishment
9. Design of Orcutt & Tank Roundabout
10. Prado Road Interchange
As of June 30, 2020, $8,750,403 in funds were available for projects and no funds were held longer than five
years in the total of Fund 507.
Finding: even though it is shown that there are no funds held for more than 5 years in the total of Fund 507,
when analyzing the Fund divided by subareas, it is shown that for the Citywide Transportation Impact Fee,
$495,045 have been held for more than five years. This amount is part of the planned Prado Road Interchange
anticipated to be start construction in 2021 as adopted in the City’s Capital Improvement Program. See
TABLE 1 below for more details.
Aging of Funds Held
Current Yr
Funds
FY 2019-20
1 yr old
Funds
FY 2018-19
2 yr old
Funds
FY 2017-18
3 yr old
Funds
FY 2016-17
4 yr old
Funds
FY 2015-16
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
(383)$ 5,957$ 7,442$ 12,116$ 51,470$ 76,602$ 756,235$ 832,837$
Balances from Transfers (7 Years)475,000$
Balances from Other Revenues (7 years)413,102$
Balances attributed to Impact Fees (7 Years)75,769$
812,333$
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TABLE 1
Airport Area Impact Fees (Fund 503)
This impact fee was established for the expansion of transportation facilities in and around the airport area.
The only project funded during the fiscal year from these fees was the 51% of the Prado Road Bridge
Widening. On April 3, 2018, the City Council adopted a resolution in compliance with AB1600 that
consolidated this fee program into the Citywide Transportation Impact Fee Program.
As of June 30, 2020, $1,114,404 in funds were available for projects and $876,344 in Airport Area Impact
Fees have been held longer than five years.
Finding: The funds held for longer than five years are also part of the planned Prado Road Interchange
which is for the purpose of mitigating impacts of planned growth in this area. All funds are anticipated to be
collected and construction initiated by 2021 as adopted in the City’s Capital Improvement Program. See
TABLE 1 in Fund 507 for more details.
Aging of Funds Held
Current Yr
Funds
FY 2019-20
1 yr old
Funds
FY 2018-19
2 yr old
Funds
FY 2017-18
3 yr old
Funds
FY 2016-17
4 yr old
Funds
FY 2015-16
Funds
attributed to
recent 5
years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
2,410,187$ 2,102,866$ 1,235,025$ 1,607,744$ 1,463,965$ 8,819,786$ (69,383)$ 8,750,403$
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Los Osos Valley Road Add-on Impact Fee (Fund 504)
This add-on impact fee was established for the expansion of capacity for Los Osos Valley Road (LOVR)
interchange at US 101 for construction, project management, and inspection. Though the project has been
completed, the Fund recorded a liability for the reimbursement owed for an amount equal to the impact fees
collected for the year. The City has an existing reimbursement agreement with Costco Wholesale
Corporation for improvements already constructed at the LOVR interchange. As of June 30, 2020, $441,269
in funds were available.
Water Impact Fees (Fund 601- Account 47201)
This fee was established for the expansion and improvement of facilities used for water supply, water
treatment and water distribution. Water infrastructure is constructed when needed and usually ahead of time
of impact fee collection, there for use to debt service. More specifically to pay for new development’s fair
share for upgrades to the water treatment plant, the recycled water system, as well as the pipeline serving the
City from Nacimiento Lake. following projects:
1. Nacimiento Pipeline
2. 2018/2006 Water Treatment Plant Refunding Debt Service
3. 2012 Water Refunding Debt Service
In fiscal year 2019-20, $3,723,460 was collected in impact fees, while $4,330,340 was expended. No funds
were held longer than five years as payments cover debt service expenses upon receipt.
Aging of Funds Held
Current Yr
Funds
FY 2018-19
1 yr old
Funds
FY 2017-18
2 yr old
Funds
FY 2016-17
3 yr old
Funds
FY 2015-16
4 yr old
Funds
FY 2014-15
Funds
attributed to
recent 5
years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
26,655$ 586,991$ 3,577$ 428,804$ 17,246$ 1,063,273$ (622,005)$ 441,269$
Item 5
Packet Page 32
Sewer Impact Fees (Fund 506 & 602 – Account 47201)
This impact fee was established for the expansion and improvement of facilities used for sewer collection
and sewer treatment. The fees were used for the following projects:
1. Calle Joaquin Lift Station
2. Water Resource Recovery Facility (WRRF) Upgrade – currently under construction. To be finished
in 2023.
3. Tank Farm Lift Station
As of June 30, 2020, available funds were $596,178. As future development occurs, and, in turn, future
impact fees are collected, more funds will become available to fund the projects. No funds were held
longer than five years.
Affordable Housing Inclusionary In-Lieu Fees (Fund 505)
This inclusionary fee was established to provide funding for the provision of affordable housing and for
reasonable costs associated with the development of affordable housing and can be spent at the discretion of
the Council. It is not an impact fee as defined by AB 1600. In FY 2019-20 the City granted $330,000 to SLO
Transitions LLC for the acquisition and rehabilitation of housing at 527 Branch Street and 526 South Street.
$57,000 was transferred into the General Fund to help fund the Housing Coordinator position.
As of June 30, 2020, $2,689,980 in funds were available for affordable housing projects and no funds were
held longer than five years. On January 21, 2020, the City Council approved the allocation of $2,000,000 to
two new affordable housing projects proposed by Peoples’ Self-Help Housing Corporation, thus resulting in
a total undesignated balance of $689,980 as of June 30, 2020.
Aging of Funds Held
Current Yr
Funds
FY 2019-20
1 yr old
Funds
FY 2018-19
2 yr old
Funds
FY 2017-18
3 yr old
Funds
FY 2016-17
4 yr old
Funds
FY 2015-16
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject to
findings or
refund
Total
Ending
Balance
3,723,460$ 3,745,666$ 2,131,345$ 1,281,874$ 1,542,268$ 12,424,614$ (15,140,169)$ (2,715,556)$
Aging of Funds Held
Current Yr
Funds
FY 2019-20
1 yr old
Funds
FY 2018-19
2 yr old
Funds
FY 2017-
18
3 yr old
Funds
FY 2016-17
4 yr old
Funds
FY 2015-16
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
2,618,030$ 2,028,174$ 811,229$ 665,053$ 681,887$ 6,804,374$ (6,208,196)$ 596,178$
Item 5
Packet Page 33
Public Safety Impact Fees (Fund 508)
This impact fee was established as part of the 2018 nexus study to help cover the cost of the City’s Police and
Fire services. It will also be used to renovate and maintain public safety assets. As of June 30, 2020,
$183,812 in funds were available for public safety projects and no funds were held longer than five years.
Conclusion
The City will continue to closely monitor its impact fee collection to report the use and retention of the fees in
compliance with AB 1600. Findings on retained fund balances over five years will be integrated in the
report, so the City Council can approve appropriate action on an annual basis.
Aging of Funds Held
Current Yr
Funds
FY 2019-20
1 yr old
Funds
FY 2018-19
2 yr old
Funds
FY 2017-18
3 yr old
Funds
FY 2016-17
4 yr old
Funds
FY 2015-16
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total
Ending
Balance
91,515$ 1,217,920$ 366,637$ 1,135,833$ 659,920$ 3,471,825$ (781,840)$ 2,689,985$
Aging of Funds Held
Current Yr
Funds
FY 2019-20
1 yr old
Funds
FY 2018-19
2 yr old
Funds
FY 2017-18
3 yr old
Funds
FY 2016-17
4 yr old
Funds
FY 2015-16
Funds
attributed to
recent 5
years
If Number is
Positive, then
Funds subject to
findings or
refund
Total
Ending
Balance
183,812$ 4,110$ -$ -$ -$ 187,922$ (4,110)$ 183,812$
Item 5
Packet Page 34
MASTER FEE SCHEDULE
Fiscal Year 2019-2020
Planning Services…………………………………………………………... 1
Engineering Services……………………………………………………….. 3
Public Works Services……………………………………………………... 7
Fire Services………………………………………………………………... 8
Other Fire Fees……………………………………………………………... 14
Building Plan Check Fees………………………………………………….. 17
Building Inspection Fees…………………………………………………… 19
Utilities Services…………………………………………………………… 21
Impact Fees………………………………………………………………… 22
General Government……………………………………………………….. 24
Business Licenses & Tax…………………………………………………... 25
Creek & Flood Protection………………………………………………….. 25
Cannabis Fees………………………………………………………………. 26
Parks & Recreation Fees…………………………………………………… 27
Police Department Fees…………………………………………………….. 32
The City' s adopted fee schedule is adjusted by 3. 3% which reflects the All Urban Consumer Price Index, Los
Angeles area — based on the change from April 2018 – April 2019. (Resolution No. 11017, Section 4)
Item 5
Packet Page 35
Transportation
(Citywide)(1)
Transportation (San Luis
Ranch Subarea)(1)
Transportation (LOVR
Subarea) (1)
Fee with Administration charge
(4)
Residential
Single Family
≥ 1,400 sq. ft. (fees are per unit) $10,694.16 $8,309.07 $9,695.81
700 to 1,399 sq. ft. (fees are per sq. ft.) $7.64 $5.93 $6.92
≤ 699 sq. ft. (fees are per unit) $5,347.08 $4,154.53 $4,847.90
Multifamily
≥ 1,100 sq. ft. (fees are per unit) $8,308.75 $6,455.67 $7,533.07
550 to 1,099 sq. ft. (fees are per sq. ft.) $7.55 $5.87 $6.85
≤ 549 sq. ft. (fees are per unit) $4,154.37 $3,227.83 $3,766.53
Non-Residential
Office (fees are per sq. ft.) $10.32 $8.02 $9.36 Requires Calculation
Service (fees are per sq. ft.) $10.32 $8.02 $9.36 Requires Calculation
Retail (fees are per sq. ft.) $14.99 $11.03 $13.59 Requires Calculation
Industrial (fees are per sq. ft.) $6.01 $4.92 $5.75 Requires Calculation
Institutional (fees are per sq. ft.) $12.15 $9.44 $11.01 Requires Calculation
Lodging (fees are per room) $4,314.63 $3,352.34 $3,911.83 Requires Calculation
Specialty (fees are per ADT) (2) $657.80 $510.93 $596.32 Requires Calculation
Parkland In-Lieu
(Citywide, except San luis
ranch Subarea)
Park Development
(Citywide,except San Luis
Ranch Subarea)(3)
Residential
Single Family (per Dwelling Unit)$3,251.83 $2,972.16
Multifamily Condominium (per Dwelling unit)$2,341.61 $2,140.37
Multifamily apartment (per Dwelling unit)$1,503.62 $2,140.37
Impact fees continued on next page…
PARK IMPACT FEES
Fee with Administration charge (4)
Requires Calculation
Requires Calculation
2019-20 Fee Schedule
TRANSPORTATION IMPACT FEES
Requires Calculation
Requires Calculation
Requires Calculation
22
Item 5
Packet Page 36
Police (Citywide)Fire (Citywide)Fee with Adminisration
charge (4)
Residential
Single Family
Per unit $689.38 $587.21
Multifamily
Per unit $496.39 $423.12
Non-Residential
Office (fees are per sq. ft.)$0.45 $0.39
Service (fees are per sq. ft.)$0.25 $0.22
Retail (fees are per sq. ft.)$0.25 $0.22
Industrial (fees are per sq. ft.)$0.19 $0.15
Institutional (fees are per sq. ft.)$0.25 $0.22
Lodging (fees are per room)$137.26 $116.62
Specialty (fees are per ADT) (2)
Land Use Category
Single Family & Multifamily (per Dwelling Unit Size)
≥ 1,201 sq. ft. (fees are per unit)
801 to 1,200 sq. ft. (fees are per unit)
451 to 800 sq. ft. (fees are per unit)
≤ 450 sq. ft. (fees are per unit)
Mobile/Manufactured Home (per Dwelling Unit)
Mobile/Manufactured Home
Non-Residential (by Meter Size)
3/4" meter
1" meter
1.5" meter
2" meter
3" meter
4" meter
6" meter
WATER AND WASTEWATER IMPACT FEES
$130,332.78
$203,416.81
$406,834.65
$10,999.75
$18,699.88
$37,398.73
$59,398.22
$117,697.59
$183,696.07
$367,391.11
$12,180.67
$20,706.73
$7,308.40
$65,775.83
$41,414.49
$6,600.26
$12,180.67
$9,744.54
$8,526.47
$3,654.20
Requires Calculation
Requires Calculation
Requires Calculation
Requires Calculation
Requires Calculation
Requires Calculation
Requires Calculation
Requires Calculation
Requires Calculation
POLICE AND FIRE IMPACT FEES
(*) The City's development impact fees are subject to annual increases.
(1) The transportation fees are applied based on three geographic areas within the City (Citywide, San Luis Ranch and Los Osos Valley Road subareas)
(2) The Average Cost per Average Daily Trip (ADT) rate may be applied to non-residential development uses that are not identified in the land use category, but are identified in the City of San Luis Obispo
Parcel Data SIC Correspondence table.
(3) Fees shown reflect Parkland In-lieu Fees authorized by the Quimby Act (single family residential uses only) and Park Development Impact Fees authorized by the Mitigation Fee Act (single family and
multifamily residential uses). Development in the MASP, OASP, Avila Ranch, or San Luis Ranch areas will meet park and recreation obligations per the terms of applicable Specific Plans and/or
Development Agreements.
(4) Fees shown are subject to an additional 1.75% administrative charge.
Water Development Impact Fee(Citywide)Wastewater
Development Impact Fee (Citywide)
$10,999.75
$8,800.00
$7,700.13
$3,299.62
23
Item 5
Packet Page 37
City of San Luis Obispo
Development Impact Fee Compliance 2020
Parks Impact Fees
Fund 501
Fiscal
Year Beginning Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2007-08 200,679$ 861,834 38,135 - - - - 84,326 - - 1,016,322$
2008-09 1,016,322$ 176,579 54,896 - 94,781 - - 22,705 - - 1,319,873$
2009-10 1,319,873$ 36,378 41,787 - - - - 66,981 - - 1,331,057$
2010-11 1,331,057$ 35,805 23,628 - 25,583 - - 169,411 - - 1,246,662$
2011-12 1,246,662$ 40,135 19,130 - - - - 214,309 - - 1,091,618$
2012-13 1,091,618$ 152,217 318 - - - - 11,746 - - 1,232,407$
2013-14 1,232,407$ 97,535 9,500 - - - - 173,120 - - 1,166,322$
2014-15 1,166,322$ 273,647 3,110 - - - - 822,521 - - 620,558$
2015-16 620,558$ 217,069 5,756 - - - - 1,572 - - 841,811$
2016-17 841,811$ 505,886 16,450 - - - 900,000 4,142 - - 2,260,005$
2017-18 2,260,005$ 456,140 28,088 - - (1,590) - 217,193 - 160,000 2,365,450$
2018-19 2,365,450$ 1,653,597 23,655 - - - - 32,287 573,419 - 3,436,996$
2019-20 3,436,996$ 1,249,959 137,453 - - - - 212,224 - - 4,612,184$
Aging of Funds Held
Current Yr
Funds
FY 2019-20
1 yr old
Funds
FY 2018-19
2 yr old
Funds
FY 2017-18
3 yr old
Funds
FY 2016-17
4 yr old
Funds
FY 2015-16
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
1,387,412$ 1,677,252$ 484,228$ 522,336$ 222,825$ 4,294,052$ 318,132$ 4,612,184$
Item 5
Packet Page 38
Orcutt Area Park Improvement Impact Fees (Fund 501)
Fiscal
Year Beginning Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2018-19 -$ 775,701 - - - - - - - - 775,701$
2019-20 775,701$ 33,033 3,632 - - - - - - - 812,367$
Aging of Funds Held
Current Yr
Funds
FY 2019-20
1 yr old
Funds
FY 2018-19
2 yr old
Funds
FY 2017-18
3 yr old
Funds
FY 2016-17
4 yr old
Funds
FY 2015-16
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
36,665$ 775,701$ -$ -$ -$ 812,367$ -$ 812,367$
Orcutt Area Parkland Acquisition Impact Fees (Fund 501)
Fiscal
Year Beginning Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2018-19 -$ 598,022 - - - - - - 573,419 - 24,603$
2019-20 24,603$ 354,387 38,970 - - - - - - - 417,960$
Aging of Funds Held
Current Yr
Funds
FY 2019-20
1 yr old
Funds
FY 2018-19
2 yr old
Funds
FY 2017-18
3 yr old
Funds
FY 2016-17
4 yr old
Funds
FY 2015-16
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
393,357$ 598,022$ -$ -$ -$ 991,379$ (573,419)$ 417,960$
Item 5
Packet Page 39
City of San Luis Obispo
Development Impact Fee Compliance 2020
Open Space Impact Fee
Fund 502
Fiscal
Year Beginning Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
Impact Fee
Expenditures
Other
Expenses
AB 1600
Transfers
Out
Total
Ending
Balance
2007-08 81,559$ - 11,997 - - - 323,000 22,772 - 5,000 388,784$
2008-09 388,784$ - 16,221 - 6,436 100 234,000 383,991 - - 261,550$
2009-10 261,550$ - 12,706 - 314,824 10,500 260,378 370,498 - - 489,460$
2010-11 489,460$ - (807) - 186,809 153 - 560,516 - - 115,099$
2011-12 115,099$ - 3,336 - - - 305,000 240,069 - - 183,366$
2012-13 183,366$ - (1) - - - 22,500 11,566 - - 194,299$
2013-14 194,299$ 20,981 4,560 - 50,205 - 200,000 - 58,452 - 411,593$
2014-15 411,593$ - 2,289 - - - 275,000 38,258 - 35,000 530,623$
2015-16 530,623$ 47,369 4,101 - - - - 32,743 - - 549,350$
2016-17 549,350$ 7,419 4,697 - 63,351 - - 36,074 - - 588,743$
2017-18 588,743$ - 7,442 - - (512) - - - - 595,673$
2018-19 595,673$ - 5,957 - 100,059 - - -$ - - 701,689$
2019-20 701,689$ - (383) - - 200,000 - 34,234$ - - 867,072$
Aging of Funds Held
Current Yr
Funds
FY 2019-20
1 yr old
Funds
FY 2018-19
2 yr old
Funds
FY 2017-18
3 yr old
Funds
FY 2016-17
4 yr old
Funds
FY 2015-16
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
(383)$ 5,957$ 7,442$ 12,116$ 51,470$ 76,602$ 790,469$ 867,072$
Balances from Transfers (7 Years)475,000$
Balances from Other Revenues (7 years)413,102$
Balances attributed to Impact Fees (7 Years)75,769$
812,333$
Item 5
Packet Page 40
City of San Luis Obispo
Development Impact Fee Compliance 2020
Airport Area Impact Fee
Fund 503
Fiscal
Year Beginning Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2008-09 966,198$ - 48,509 - - - - 20,991 - - 993,716$
2009-10 993,716$ 3,599 31,393 - - - - - - - 1,028,708$
2010-11 1,028,708$ - 19,147 - - - - 19,383 - - 1,028,472$
2011-12 1,028,472$ 11,280 16,993 - - - - 35,173 - - 1,021,572$
2012-13 1,021,572$ 134,210 8,248 - - - - 317,712 - - 846,318$
2013-14 846,318$ 255,011 3,668 - - - - 9,845 - - 1,095,152$
2014-15 1,095,152$ - 4,344 - - - - 23,487 - - 937,498$
2015-16 937,498$ 134,210 8,248 - - - - - - - 1,079,956$
2016-17 1,079,956$ 24,437 9,577 - - - - 5,000 - - 1,108,970$
2017-18 1,108,970$ - 14,019 - - (973) - - - - 1,122,016$
2018-19 1,122,016$ 2,097 11,220 - - - - 8,992 - - 1,126,341$
2019-20 1,126,341$ 827 33,425 - - - - 46,189 - - 1,114,404$
Aging of Funds Held
Current Yr
Funds
FY 2019-20
1 yr old
Funds
FY 2018-19
2 yr old
Funds
FY 2017-18
3 yr old
Funds
FY 2016-17
4 yr old
Funds
FY 2015-16
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
34,252$ 13,317$ 14,019$ 34,014$ 142,458$ 238,060$ 876,344$ 1,114,404$
Item 5
Packet Page 41
City of San Luis Obispo
Development Impact Fee Compliance 2020
Los Osos Valley Road Impact Fee
Fund 504
Fiscal
Year Beginning Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2008-09 282,240$ - 48,311 - - - - 229,058 8,875 - 92,618$
2009-10 92,618$ 79,719 15,084 - - - - - 4,043 - 183,378$
2010-11 183,378$ 11,166 8,599 - - - - - 18,963 - 184,180$
2011-12 184,180$ 1,797,650 18,233 - - - - 1,622,651 1,576 375,836$
2012-13 375,836$ - 1,166 - - - - 49,577 179,809 - 147,616$
2013-14 147,616$ 3,097 7,573 - - - - 9,979 3,097 - 145,210$
2014-15 145,210$ - 1,514 - - - - - - - 146,724$
2015-16 146,724$ 14,661 2,585 - - - - - - - 163,970$
2016-17 163,970$ 422,858 5,946 - - - - 40,482 423,344 - 128,948$
2017-18 128,948$ - 3,577 - - (291) - 34,518 - - 97,716$
2018-19 97,716$ 586,014 977 - - - - - - - 684,707$
2019-20 684,707$ - 26,655 - - - - 270,094 - - 441,269$
Aging of Funds Held
Current Yr
Funds
FY 2018-19
1 yr old
Funds
FY 2017-18
2 yr old
Funds
FY 2016-17
3 yr old
Funds
FY 2015-16
4 yr old
Funds
FY 2014-15
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
26,655$ 586,991$ 3,577$ 428,804$ 17,246$ 1,063,273$ (622,005)$ 441,269$
Item 5
Packet Page 42
City of San Luis Obispo
Development Impact Fee Compliance 2020
Affordable Housing Inclusionary Impact Fee
Fund 505
Fiscal
Year Beginning Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2007-08 3,811,662$ 682,418 155,631 - - - - 630,000 - - 4,019,711$
2008-09 4,019,711$ 465,726 199,625 - - 1,450 - 892,462 - - 3,794,050$
2009-10 3,794,050$ - 32,584 - 270,000 9,000 - 3,416,692 21,286 - 667,656$
2010-11 667,656$ 332,841 15,988 - 30,000 3,929 - 39,854 - - 1,010,560$
2011-12 1,010,560$ 848,788 21,915 - - - - 112,696 - - 1,768,567$
2012-13 1,768,567$ 182,685 7,417 - - - - 30,000 - - 1,928,669$
2013-14 1,928,669$ 793,655 52,712 - - - - 30,000 - 17,000 2,728,036$
2014-15 2,728,036$ 159,602 12,882 - - 179,552 - 697,000 - 17,000 2,366,072$
2015-16 2,366,072$ 625,506 34,414 - - - - 698,978 - - 2,562,826$
2016-17 2,562,826$ 1,130,587 5,246 - - 359,081 - 1,490,738 - - 2,567,002$
2017-18 2,567,002$ 357,581 9,056 - 75,177 87,422 - 850,000 - - 2,482,050$
2018-19 2,482,050$ 1,193,099 24,820 - - 12,500 - 710,000 - 17,000 2,985,470$
2019-20 2,985,470$ 17,737 73,778 - - - - 330,000 - 57,000 2,689,985$
Aging of Funds Held
Current Yr
Funds
FY 2019-20
1 yr old
Funds
FY 2018-19
2 yr old
Funds
FY 2017-18
3 yr old
Funds
FY 2016-17
4 yr old
Funds
FY 2015-16
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total
Ending
Balance
91,515$ 1,217,920$ 366,637$ 1,135,833$ 659,920$ 3,471,825$ (781,840)$ 2,689,985$
Item 5
Packet Page 43
City of San Luis Obispo
Developer Impact Fee Compliance 2020
Sewer Impact Fee
Fund 506 & Fund 602 - Account 47201
Fiscal
Year Beginning Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2008-09 1,229,684$ 171,000 4,919 - - - - 528,164 49,055 - 926,494$
2009-10 926,494$ 98,600 3,063 - - - - 854,235 3,733 - 177,655$
2010-11 177,655$ 169,800 2,632 - - - - 849,584 14,956 - (484,541)$
2011-12 (484,541)$ 141,237 1,990 - - - - 655,355 - - (996,669)$
2012-13 (996,669)$ 355,395 - - - - - 1,308,687 9,430 - (1,959,391)$
2013-14 (1,959,391)$ 268,132 2,934 - - - - 608,432 - - (2,296,757)$
2014-15 (2,296,757)$ 1,160,654 1,092 - - - - 1,393,810 - - (2,528,821)$
2015-16 (2,528,821)$ 674,831 7,056 - - - - 700,632 - - (2,547,566)$
2016-17 (2,547,566)$ 653,821 11,232 - - - - 700,632 - - (2,583,145)$
2017-18 (2,583,145)$ 811,229 - - (22,861) - - - - (1,794,777)$
2018-19 (1,794,777)$ 2,028,174 -$ - - - - 1,197,917 - - (964,520)$
2019-20 (964,520)$ 2,582,197 35,834$ - - - - 528,666 - - 1,124,844$
Aging of Funds Held
Current Yr
Funds
FY 2019-20
1 yr old
Funds
FY 2018-19
2 yr old
Funds
FY 2017-18
3 yr old
Funds
FY 2016-17
4 yr old
Funds
FY 2015-16
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
2,618,030$ 2,028,174$ 811,229$ 665,053$ 681,887$ 6,804,374$ (5,679,529)$ 1,124,844$
Item 5
Packet Page 44
City of San Luis Obispo
Developer Impact Fee Compliance 2020
Transportation Impact Fee
Fund 507
Fiscal
Year Beginning Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Other
Expenses
AB 1600
Transfers
Out
Total
Ending
Balance
2008-09 4,057,425$ 498,385 197,387 - 668,853 - - 1,829,260 - - 3,592,790$
2009-10 3,592,790$ 30,237 107,553 - 399,911 87,221 74,000 864,670 28,700 - 3,398,342$
2010-11 3,398,342$ 860,530 72,051 - 647,364 - - 671,057 86,100 - 4,221,130$
2011-12 4,221,130$ 274,470 66,373 - 212,085 (481,252) - 376,931 404,030 - 3,511,844$
2012-13 3,511,844$ 221,213 3,044 - 1,059,704 - - 974,689 777,319 - 3,043,797$
2013-14 3,043,797$ 1,002,592 28,352 - 282,208 - - 408,460 301,140 - 3,647,349$
2014-15 3,647,349$ 898,574 48,584 - 350,172 63,791 7,873,360 1,077,990 2,918,542 - 8,885,296$
2015-16 8,885,296$ 1,356,158 107,807 - - - - 381,535 3,422,400 320,000 6,225,326$
2016-17 6,225,326$ 1,615,385 (7,641) - - - - 172,719 97,548 - 7,562,803$
2017-18 7,562,803$ 1,230,254 4,771 - - (6,208) - 945,980 711,169 250,000 6,884,471$
2018-19 6,844,471$ 2,034,421 68,445 - - 41,966 - 1,250,110 - - 7,739,192$
2019-20 7,739,192$ 2,157,533 252,654 - - - - 1,118,976 - 280,000 8,750,403$
Aging of Funds Held
Current Yr
Funds
FY 2019-20
1 yr old
Funds
FY 2018-19
2 yr old
Funds
FY 2017-18
3 yr old
Funds
FY 2016-17
4 yr old
Funds
FY 2015-16
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
2,410,187$ 2,102,866$ 1,235,025$ 1,607,744$ 1,463,965$ 8,819,786$ (69,383)$ 8,750,403$
Item 5
Packet Page 45
Margarita Area TIF Fee
Fiscal
Year Beginning Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Other
Expenses
AB 1600
Transfers
Out
Total
Ending
Balance
2011-12 -$ - - - - - - - - - -$
2012-13 -$ - - - - - - - - - -$
2013-14 -$ - - - - - - - - - -$
2014-15 -$ - - - - - - - - - -$
2015-16 -$ 43,215 491 - - - - - - - 43,706$
2016-17 43,706$ 417,347 11,067 - - - - - - - 472,120$
2017-18 472,120$ 514,776 16,739 - - - - - - - 1,003,635$
2018-19 1,003,635$ 416,805 25,666 - - - - - - - 1,446,105$
2019-20 1,446,105$ 553,246 64,787 - - - - - - - 2,064,138$
Aging of Funds Held
Current Yr
Funds
FY 2019-20
1 yr old
Funds
FY 2018-19
2 yr old
Funds
FY 2017-18
3 yr old
Funds
FY 2016-17
4 yr old
Funds
FY 2015-16
Funds
attributed to
recent
5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
618,033$ 442,471$ 531,515$ 428,414$ 43,706$ 2,064,138$ -$ 2,064,138$
Orcutt Area TIF Fee
Fiscal
Year Beginning Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Other
Expenses
AB 1600
Transfers
Out
Total
Ending
Balance
2012-13 -$ $ 3,457 1,648$ - - - - - - - 5,105$
2013-14 5,105$ - - - - - - - - - 5,105$
2014-15 5,105$ - - - - - - - - - 5,105$
2015-16 5,105$ 5,499 62 - - - - - - - 10,666$
2016-17 10,666$ - - - - - - - - - 10,666$
2017-18 10,666$ 12,394 403 - - - - 46,668 - - (23,205)$
2018-19 (23,205)$ 438,197 - - - - - - - - 414,992$
2019-20 414,992$ 153,821 18,013 - - - - $ 107,853 - - 63,980$
Aging of Funds Held
Current Yr
Funds
FY 2019-20
1 yr old
Funds
FY 2018-19
2 yr old
Funds
FY 2017-18
3 yr old
Funds
FY 2016-17
4 yr old
Funds
FY 2015-16
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
171,833$ 438,197$ 12,797$ -$ 5,561$ 628,389$ (564,409)$ 63,980$
Item 5
Packet Page 46
Transporation Impact Fee (Citywide)
Fiscal
Year Beginning Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Other
Expenses
AB 1600
Transfers
Out
Total
Ending
Balance
2008-09 4,057,425$ 498,385$ 197,387$ -$ 668,853$ -$ -$ 1,829,260$ -$ -$ 3,592,790$
2009-10 3,592,790$ 30,237$ 107,553$ -$ 399,911$ 87,221$ 74,000$ 864,670$ 28,700$ -$ 3,398,342$
2010-11 3,398,342$ 860,530$ 72,051$ -$ 647,364$ -$ -$ 671,057$ 86,100$ -$ 4,221,130$
2011-12 4,221,130$ 274,470$ 66,373$ -$ 212,085$ (481,252)$ -$ 376,931$ 404,030$ -$ 3,511,844$
2012-13 3,511,844$ 221,213 3,044 - 1,059,704 - - 974,689 777,319 - 3,043,797$
2013-14 3,038,692$ 1,002,592$ 28,352$ -$ 282,208$ -$ -$ 408,460$ 301,140$ -$ 3,642,244$
2014-15 3,642,244$ 898,574$ 48,584$ -$ 350,172$ 63,791$ 7,873,360$ 1,077,990$ 2,918,542$ -$ 8,880,191$
2015-16 8,880,191$ 1,307,444$ 107,253$ -$ -$ -$ -$ 381,535$ 3,422,400$ 320,000$ 6,170,954$
2016-17 6,170,954$ 1,198,038$ (18,708)$ -$ -$ -$ -$ 172,719$ 97,548$ -$ 7,080,016$
2017-18 7,080,016$ 703,084$ (12,370)$ -$ -$ (6,208)$ -$ 899,312$ 711,169$ 250,000$ 5,904,041$
2018-19 5,864,041$ 1,179,419$ 42,779$ -$ -$ 41,966$ -$ 1,250,110$ -$ -$ 5,878,095$
2019-20 5,878,095$ 1,450,466$ 169,854$ -$ -$ -$ -$ 1,011,123$ -$ 280,000$ 6,622,285$
Aging of Funds Held
Current Yr
Funds
FY 2019-20
1 yr old
Funds
FY 2018-19
2 yr old
Funds
FY 2017-18
3 yr old
Funds
FY 2016-17
4 yr old
Funds
FY 2015-16
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total Ending
Balance
1,620,320 1,222,198$ 690,714 1,179,330 1,414,697 6,127,260 495,025$ 6,622,285$
Item 5
Packet Page 47
City of San Luis Obispo
Developer Impact Fee Compliance 2020
Public Safety Impact Fee
Fund 508
Fiscal
Year Beginning Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2018-19 -$ 4,110 - - - - - -$ - - 4,110$
2019-20 4,110$ 178,784 5,028 - - - - -$ - - 183,812$
Aging of Funds Held
Current Yr
Funds
FY 2019-20
1 yr old
Funds
FY 2018-19
2 yr old
Funds
FY 2017-18
3 yr old
Funds
FY 2016-17
4 yr old
Funds
FY 2015-16
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total
Ending
Balance
183,812$ 4,110$ -$ -$ -$ 187,922$ (4,110)$ 183,812$
Item 5
Packet Page 48
City of San Luis Obispo
Developer Impact Fee Compliance 2020
Water Impact Fee
Fund 601 - Account 47201
Fiscal
Year Beginning Balance Impact Fees Interest
Non
AB 1600
Interest
Revenue
Other
Agencies
Other
Revenue Transfers In
AB 1600
Expenses
Developer
Reimb
AB 1600
Transfers
Out
Total
Ending
Balance
2008-09 4,426,570$ 663,000 40,922 - - - - 895,190 122,259 - 4,357,561$
2009-10 4,357,561$ 448,200 21,717 - - - - 970,096 14,918 - 3,872,300$
2010-11 3,872,300$ 639,600 15,322 - - - - 803,305 59,772 - 3,783,689$
2011-12 3,783,689$ 643,160 12,999 - - - - 703,006 - - 3,736,842$
2012-13 3,736,842$ 1,625,113 26,300 - - - - 3,906,320 41,330 - 1,523,265$
2013-14 1,523,265$ 819,477 5,650 - - - - 2,865,321 - - (516,929)$
2014-15 (516,929)$ 2,471,502 1,972 - - - - 280,830 - - 1,675,715$
2015-16 1,675,715$ 1,542,268 - - - - - 2,572,741 - - 645,242$
2016-17 645,242$ 1,266,674 15,200 - - - - 2,605,220 - - (678,104)$
2017-18 (678,104)$ 2,131,345 - - - (17,875) - - - - 1,435,366$
2018-19 1,435,366$ 3,745,666 - - - - - 2,959,368 - - 2,221,665$
2019-20 2,221,665$ 3,723,460 - - - - - 4,330,340 - - 1,614,785$
Aging of Funds Held
Current Yr
Funds
FY 2019-20
1 yr old
Funds
FY 2018-19
2 yr old
Funds
FY 2017-18
3 yr old
Funds
FY 2016-17
4 yr old
Funds
FY 2015-16
Funds
attributed to
recent 5 years
If Number is
Positive, then
Funds subject
to findings or
refund
Total
Ending
Balance
3,723,460$ 3,745,666$ 2,131,345$ 1,281,874$ 1,542,268$ 12,424,614$ (10,809,829)$ 1,614,785$
Item 5
Packet Page 49
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2020
Parks Impact Fees (Fund 501)
Enacted using the Quimby Act. See note below.
Project Number Project Name
Project
Amount
Expended
Percent
Funded
by Impact
Fees
Impact Fee
Expenditures
Non
Impact
Fee
Expendit
ures
Developer
Impact Fees
Collected
Impact Fee
Interest
Income
Other
Income
91563 PICKLE BALL COURTS 148,588$ 100%148,588$ -$
91683 NORTH BROAD ST PARK 63,657$ 100%63,657$ -$
Totals 212,244$ 212,244$ -$ 1,249,959$ 137,453$ -$
Available Funds as of June 30, 2018 2,365,450$
Available Funds as of June 30, 2019 3,436,996$
Available Funds as of June 30, 2020 4,612,184$
Fees and Interest Collected in Prior 5 Years 4,294,052$
Funds held Longer Than 5 Years 318,132$
Note: Quimby Act Fees are required to be reported on the AB1600 Report.
However, some of the legal restrictions from Gov't Code Section 66000 may not apply.
Item 5
Packet Page 50
Orcutt Area Park Improvement Impact Fees (Fund 501)
Project Number Project Name
Project
Amount
Expended
Percent
Funded
by Impact
Fees
Impact Fee
Expenditures
Non
Impact
Fee
Expendit
ures
Developer
Impact Fees
Collected
Impact Fee
Interest
Income
Other
Income
Available Funds as of June 30, 2019 775,701$
Available Funds as of June 30, 2020 812,367$
Fees and Interest Collected in Prior 5 Years 812,367$
Funds held Longer Than 5 Years -$
Orcutt Area Parkland Acquisition Impact Fees (Fund 501)
Project Number Project Name
Project
Amount
Expended
Percent
Funded
by Impact
Fees
Impact Fee
Expenditures
Non
Impact
Fee
Expendit
ures
Developer
Impact Fees
Collected
Impact Fee
Interest
Income
Other
Income
Available Funds as of June 30, 2019 24,603$
Available Funds as of June 30, 2020 417,960$
Fees and Interest Collected in Prior 5 Years 991,379$
Funds held Longer Than 5 Years (573,419)$
Item 5
Packet Page 51
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2020
Open Space Impact Fee (Fund 502)
Project Number Project Name
Project
Amount
Expended
Percent
Funded
by Impact
Fees
Impact Fee
Expenditures
Non
Impact
Fee
Expendit
ures
Developer
Impact Fees
Collected
Impact Fee
Interest
Income
Other
Income
MIOSSI OPEN SPACE 34,234$ 100%34,234$ -$ -$
Totals 34,234$ 34,234$ -$ -$ (383)$ -$
Available Funds as of June 30, 2018 595,673$
Available Funds as of June 30, 2019 667,454$
Available Funds as of June 30, 2020 832,837$
Fees and Interest Collected in Prior 5 years 76,602$
Funds Held Longer Than 5 Years 756,235$ **
**Note: $812,333 funds accumulated for the last 7 years thru 6/30/20 stem from revenues other than impact fee funds (See Fee Aging Report)
Item 5
Packet Page 52
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2020
Airport Area Impact Fee (Fund 503)
Project Number Project Name
Project
Amount
Expended
Percent
Funded
by Impact
Fees
Impact Fee
Expenditures
Non
Impact
Fee
Expendit
ures
Developer
Impact Fees
Collected
Impact Fee
Interest
Income
91252 PRADO ROAD BRIDGE 90,267$ 51%46,189$ -$ -$ -$
Totals 90,267$ 46,189$ -$ 827$ 33,425$
Available Funds as of June 30, 2018 1,122,016$
Available Funds as of June 30, 2019 1,126,341$
Available Funds as of June 30, 2020 1,114,404$
Funds Collected in recent year and prior 5 years 238,060$
Funds Held Longer than 5 Years 876,344$
Item 5
Packet Page 53
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2020
Los Osos Valley Road Impact Fee (Fund 504 Formerly Fund 460)
Project Number Project Name Budget
Encumbra
nce
Project
Amount
Expended
Percent
Funded
by
Impact
Fees
Impact Fee
Expenditures
Developer
Reimbursem
ents
Developer
Impact Fees
Collected
Impact
Fee
Interest
Income
Other
Income
1000175 COSTCO REIMBURSEMENT 423,344.00$ 270,094$ 100%- - -
Totals 270,094$ -$ -$ -$ 26,655$
Available Funds as of June 30, 2018 97,716$
Available Funds as of June 30, 2019 684,707$
Available Funds as of June 30, 2020 441,269$
Fees collected in recent year and prior 5 years 1,063,273$
Funds Held Longer than 5 Years (622,005)$
Item 5
Packet Page 54
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2020
Affordable Housing Inclusionary Impact Fee (Fund 505)
Project Number Project Name
Project
Amount
Expended
Percent
Funded
by Impact
Fees
Impact Fee
Expenditures
Non
Impact
Fee
Expendit
ures
Developer
Fees
Collected
Impact Fee
Interest
Income
Other
Income
SLO TRANSITIONS LLC 330,000$ 100%330,000$ -$ -$
Totals 330,000$ 330,000$ -$ 17,737$ 73,778$ -$
Available Funds as of June 30, 2018 2,482,050$
Available Funds as of June 30, 2019 2,985,470$
Available Funds as of June 30, 2020 2,689,985$
Fees and Interest Collected in Prior 5 Years 3,471,825$
Fees Held Longer Than 5 Years (781,840)$
Item 5
Packet Page 55
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2020
Sewer Impact Fee (Fund 506 & Fund 602 - Account 47201)
Project Number Project Name
Project
Amount
Expended
Percent
Funded
by Impact
Fees
Impact Fee
Expenditures
Develop
er Reimb
Developer
Fees
Collected
Impact Fee
Interest
Income
Other
Income
91118 CALLE JOAQUIN LIFT STATION 282,726$ 28.0%79,163$ -$
91214 MARGARITA LIFT STATION -$ 51.0%-$ -$
SILVER CITY -$ 0.0%-$ -$
LAGUNA LIFT STATION -$ 0.0%-$ -$
91219 WRRF UPGRADE 618,177$ 20.5%126,726$ -$
89351 TANK FARM LIFT STATION 556,512$ 58.0%322,777$ -$
Totals 1,457,415$ 528,666$ -$ 2,582,197 35,834$
Available Funds as of June 30, 2018 (2,323,444)$
Available Funds as of June 30, 2019 (1,493,186)$
Available Funds as of June 30, 2020 596,178$
Fees collected in recent year and prior 5 years 6,804,374$
Funds held longer than 5 years (6,208,196)$
Item 5
Packet Page 56
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2020
Citywide Transportation Impact Fee (Fund 507)
Project Number Project Name
Project
Amount
Expended
Percent
Funded
by 507
Impact
Fees
Impact Fee
Expenditures
Non
Impact
Fee
Expendit
ures
Developer
Impact Fees
Collected
Impact Fee
Interest
Income
Other
Income
90653 TRAFFIC VOLUME COUNTS $ - 100% $ - -$ $ -
91252 PRADO RD BRIDGE WIDEN $ 90,267 49% $ 44,077 -$ $ -
91375 BIKE BRIDGE/PHILLIPS $ 565,073 100% $ 565,073 -$ $ -
91111 RR SAFETY TRL TAFT/PEPPER $ - 100% $ - -$ $ -
91377 MONT/OSOS TRAFFIC SIG $ - 100% $ - -$ $ -
91435 LOVR INTERCHANGE LDP $ 50,000 100% $ 50,000 -$ $ -
91503 CALIFORNIA TAFT ROUNDABOUT $ - 100% $ - -$ $ -
91609 BROAD CORRIDOR IMPR $ 434 100% $ 434 -$ $ -
91610 TOPOGRAPHIC SURVEY AND ROW ESTABLISHMENT $ 21,571 100% $ 21,571 -$ $ -
91611 DN-ORCUTT & TANK ROUNDABOUT $ 107,853 100% $ 107,853 -$ $ -
91613 PRADO RD INTERCHANGE $ 329,967 100% $ 329,967 -$ $ -
99821 LOVR/US 101 INTERCHANGE $ - 100% $ - -$ $ -
90073 HIGUERA WIDENING MARSH $ - 100% $ - -$ $ -
1000013 WRRF HYRDRAULIC MODEL UPDATE $ - 100% $ - -$ $ -
1000015 TRAFFIC DATA $ - 100% $ - -$ $ -
Totals 1,165,166$ 1,118,976$ -$ 2,157,533$ 41,966$
Available Funds as of June 30, 2018 6,884,471$
Available Funds as of June 30, 2019 7,739,192$
Available Funds as of June 30, 2020 8,750,403$
Funds Collected in recent year and prior 5 years 8,819,786$
Funds held longer than 5 years (69,383)$
Item 5
Packet Page 57
Margarita Area Traffic Impact Fee (Fund 507)
Project Number Project Name
Project
Amount
Expended
Percent
Funded
by Impact
Fees
Impact Fee
Expenditures
Non
Impact
Fee
Expendit
ures
Developer
Impact Fees
Collected
Impact Fee
Interest
Income
Other
Income
Available Funds as of June 30, 2019 1,409,623$
Available Funds as of June 30, 2020 2,027,656$
Funds Collected in recent year and prior 5 years 2,027,656$
Funds held longer than 5 years -$
Orcutt Area Traffic Impact Fee (Fund 507)
Project Number Project Name
Project
Amount
Expended
Percent
Funded
by Impact
Fees
Impact Fee
Expenditures
Non
Impact
Fee
Expendit
ures
Developer
Impact Fees
Collected
Impact Fee
Interest
Income
Other
Income
91611 DN-ORCUTT & TANK ROUNDABOUT $ 107,853 100% $ 107,853 -$ $ - $ -
Totals 107,853$ 107,853$ -$ -$ -$ -$
Available Funds as of June 30, 2019 413,412$
Available Funds as of June 30, 2020 63,980$
Funds Collected in recent year and prior 5 years 628,409$
Funds held longer than 5 years (564,428)
Item 5
Packet Page 58
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2020
Public Safety Impact Fee (Fund 508)
Project Number Project Name
Project
Amount
Expended
Percent
Funded
by Impact
Fees
Impact Fee
Expenditures
Developer
Reimburs
ements
Developer
Fees
Collected
Impact Fee
Interest
Income
Other
Income
Available Funds as of June 30, 2018 -$
Available Funds as of June 30, 2019 4,110$
Available Funds as of June 30, 2020 183,812$
Fees collected in recent year and prior 5 years 187,922$
Funds held longer than 5 years (4,110)$
Item 5
Packet Page 59
City of San Luis Obispo
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2020
Water Impact Fee (Fund 601- Account 47201)
Project Number Project Name
Project
Amount
Expended
Percent
Funded
by Impact
Fees
Impact Fee
Expenditures
Developer
Reimburs
ements
Developer
Fees
Collected
Impact Fee
Interest
Income
Other
Income
55110 NACIMIENTO PIPELINE 10,766,339$ 39%4,198,872$ -$
89350 WATER REUSE PROGRAM DEBT SERVICE -$ 59%-$ -$
89350 2006 WATER TREATMENT PLANT DEBT -$ 29%-$ -$
89350 2012 WATER REFUNDING DEBT SERVICE 571,600$ 23%131,468$ -$
89350 2018 REFUNDING OF '06 & '09 BONDS 937,063$ 0%-$ -$
Totals 12,275,002$ 4,330,340$ -$ 3,723,460$ -$
Available Funds as of June 30, 2018 (678,104)$
Available Funds as of June 30, 2019 (2,894,974)$
Available Funds as of June 30, 2020 (2,108,675)$
Fees collected in recent year and prior 5 years 12,424,614$
Funds Held Longer than 5 Years (15,140,169)$
Item 5
Packet Page 60
Department Name: Public Works
Cost Center: 6102 & 6004
For Agenda of: January 19, 2021
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Hai Nguyen, Engineer III
SUBJECT: AUTHORIZATION TO ADVERTISE JEFFREY SEWER AND WATER
REPLACEMENT, SPECIFICATION NO. 1000090
RECOMMENDATION
1. Approve the project plans (Attachment A) and specifications (Attachment B) for Jeffrey
Sewer and Water Replacement, Specification Number 1000090; and
2. Authorize staff to advertise for bids; and
3. Authorize the City Manager to award the Construction Contract pursuant to Section 3.24.190
of the Municipal Code for the bid total, if the lowest responsible bid is within the publicly
disclosed funding amount of $2,410,000; and
4. Approve Resolution (Attachment C) and appropriate $300,000 of Sewer Fund Unassigned
Working Capital to the Project Account 1000090.
DISCUSSION
Background
Replacement and rehabilitation of wastewater collection pipes is part of an ongoing program to
maintain aging and deteriorating infrastructure. This program has several objectives: 1) ensure
reliable removal of waste; 2) reduce the need for emergency repairs; 3) reduce the need for
preventive maintenance; and 4) ensure uninterrupted wastewater flow without health hazard or
effluent leakage. This project will accomplish these objectives for part of the City’s wastewater
collection system.
Replacement of water distribution pipes and related facilities is an ongoing program to replace
aging, substandard, and deteriorating infrastructure, with the added benefit of lowering costs and
reducing customer impacts associated with emergency repairs. This program has several
objectives: 1) ensure reliable water service; 2) reduce the need for emergency repairs; and 3) and
to enhance available fire flows.
The Project
The Jeffrey Sewer and Water Replacement Project (Project) proposes replacement of
approximately 3,178 lineal feet of sewer main on Westmont, Jeffrey, Cerro Romauldo, and
Tassajara (Attachment D). The existing sewer pipes planned for replacement work have been
video inspected and confirmed to have reached the end of their useful life.
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The Project also proposes to replace 2,571 lineal feet of water main on Jeffrey and Cerro
Romauldo. The waterlines that will be replaced with this Project are substandard (undersized)
and deteriorated. Their replacement will eliminate capacity limitations and improve water flow.
Replacing these waterlines will result in lower costs to the City and reduced customer impacts
associated with emergency repairs. Reducing or eliminating the number of required emergency
repairs provide more time for maintenance staff to complete preventive maintenance, which
prolongs the expected service life of Water Distribution facilities and equipment.
This Project also includes an additive alternate bid item. With additive alternate bid items, the
contractors provide cost of items of work and once known, the City will make the determination
whether to award this portion of the work. This Project’s additive alternate bid items include the
installation of 255 lineal feet of sewer main by open trenching and 308 lineal feet of sewer main
by pipe bursting. Pipe bursting installs a sewer pipe inside the existing sewer pipe resulting in a
new sewer pipe of the same or greater size than the prior sewer pipe size.
Previous Council or Advisory Body Action
This Project was identified in the 2019-21 Financial Plans that were approved by Council.
Policy Context
The City Council approved the Wastewater Collection System Infrastructure Renewal Strategy in
January 2016. The plan identified a strategy for prioritizing pipeline replacement in the
wastewater collection system to serve existing customers and future development in the City.
The City Council approved the Potable Water Distribution System Operations Plan (Plan) on
January 19, 2016. The Plan identified this Project as a high priority.
Additionally, per the October 2018 Financial Management Manual, Council approval is required
for Public Projects that cost over $175,000.
Public Engagement
Public engagement was conducted during the initial identification of this project to be included
in the 2019-21 Financial Plan. This is a critical public infrastructure project and is important for
fire safety and the general health and welfare the public.
CONCURRENCE
This project has the concurrence of the Utilities Department.
ENVIRONMENTAL REVIEW
A portion of the Project is located within a potentially archeologically sensitive zone of influence
(within 200 feet of Old Garden Creek). Mitigation measures approved through Mitigated
Negative Declaration ER10-07 are included in the Project’s specifications and will be followed
by the City’s contractor, as applicable, consistent with the requirements of the California
Environmental Quality Act (CEQA).
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FISCAL IMPACT
Budgeted: Yes Budget Year: 2019-21
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund
State
Federal
Fees
Sewer Fund $1,586,705
Water Fund $1,280,000
Total $2,866,705
602 Sewer Fund 601 Water Fund 601 Water Fund
Base Bid Estimate $1,140,000 $180,000 $890,000 $2,210,000
Add Alt A Estimate $200,000 $200,000
Contingencies $226,205 $210,000 $436,205
Total for Construction $2,846,205
Materials Testing $5,000 $5,000
Archaeological Monintoring $15,000 $15,000
Printing $500 $500
Total Project Cost $1,586,705 $180,000 $1,100,000 $2,866,705
Current Project Balance:$1,286,705 $180,000 $1,100,000 $2,566,705
Unreserved Working Capital (Sewer Fund)$300,000 $0 $0 $300,000
Jeffrey Sewer and Water Replacement, Specification No. 1000090
Project Total
Costs
Project Account
(1000090)
Account
(1000168)
Account
(1000067)
The project is structured with a Base Bid and one Additive Alternative to maximize the scope of
work within available funding. The strategy is to award the contract with the Base Bid and
Additive Alternative A as funding will allow, up to the Publicly Disclosed Funding amount of
$2,410,000 in compliance with Public Contract Code Section 20103.8(c).
Waterline improvements identified in this project are described in the 2019-21 Financial Plan,
Capital Improvement Program (page 365). Funding for this project is available in accounts
1000067 and 1000168 which has a current total balance of $1,280,000.
Sewerline improvements identified in this project are described in the 2019-21 Financial Plan,
Capital Improvement Program (page 389). Funding for this project is available in the Project
Account (1000090) which has a current balance $1,286,705.
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Staff is recommending appropriation of $300,000 of Sewer Fund Unassigned Working Capital to
the Project Account to provide sufficient funding for this project. A balance of approximately
$30 million is available from Sewer Fund’s Unassigned Working Capital to fund the Project.
ALTERNATIVES
Deny or defer approval to advertise. The City Council may choose to deny or defer the approval
to advertise this project. Staff does not recommend this option, as the sewer and water mains
included in this project continue to deteriorate and pose a high risk of catastrophic failure,
requiring expensive repairs.
Attachments:
a - COUNCIL READING FILE - Project Plans
b - COUNCIL READING FILE - Project Specifications
c - Draft Resolution
d - Project Vicinity Map
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R ______
RESOLUTION NO. _____ (2021 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING USE OF SEWER FUND
UNASSIGNED WORKING CAPITAL TO SUPPORT SEWER
REPLACEMENT WORK FOR JEFFREY SEWER AND WATER
REPLACEMENT, SPECIFICATION NO. 1000090
WHEREAS, the City adopted the Wastewater Collection System Infrastructure Renewal
Strategy on January 19, 2016 which identified areas in the wastewater collection system that are
recommended for infrastructure improvements; and
WHEREAS, in June of 2019, the City Council approved 2019-21 Financial Plan – Capital
Improvement Program, which identified the Jeffrey Sewer and Water Replacement (Project) with
a total budget of $1,320,000; and
WHEREAS, to ensure adequate funding to support sewer replacement work for the Project,
staff is recommending the City Council approve use of $300,000 from Sewer Fund, Unassigned
Working Capital; and
WHEREAS, a balance of approximately $30 million is available from Sewer Fund,
Unassigned Working Capital to fund the Project.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
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Resolution No. _____ (2021 Series) Page 2
R ______
SECTION 1. The City Council authorizes staff to transfer $300,000 from the Sewer Fund,
Unassigned Working Capital to the Jeffrey Sewer and Water Replacement, Specification No.
1000090, for sewer related improvements as it is a high priority City project.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2021.
____________________________________
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, on ___________________________.
____________________________________
Teresa Purrington
City Clerk
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JEFFREY SEWER AND
WATER REPLACEMENT
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Department Name: Public Works
Cost Center: 6004
For Agenda of: January 19, 2021
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Hai Nguyen, Engineer III
SUBJECT: AUTHORIZATION TO ADVERTISE BEEBEE / CUESTA / LOOMIS
WATERLINE REPLACEMENT, SPECIFICATION NO. 1000066
RECOMMENDATION
1. Approve the project plans (Attachment A) and specifications (Attachment B) for Beebee /
Cuesta / Loomis Waterline Replacement, Specification Number 1000066; and
2. Authorize staff to advertise for bids; and
3. Authorize the Assistant City Manager to award the Construction Contract pursuant to Section
3.24.190 of the Municipal Code for the bid total, if the lowest responsible bid is within the
Engineer’s Estimate of $1,700,000; and,
4. Adopt a Resolution (Attachment C) and appropriate $300,000 of Sewer Fund Unassigned
Working Capital to the Project Account 1000066.
DISCUSSION
Background
The City’s water distribution system is comprised of 184 miles of pipe with diameters ranging in
size from four inches to 30 inches. Some of the pipes that make up the City’s water distribution
system have been identified as undersized and/or beyond their useful design life. The useful
design life expectancy of waterlines is typically 50 years. Waterline breaks occur with more
frequency with aging waterlines, and the resulting repairs are disruptive to the public and
expensive. Waterline breaks undermine the roadway requiring full depth and costly
reconstruction to properly rehabilitate the pavement.
Replacement of water distribution pipes and related facilities is an ongoing program to replace
aging, substandard, and deteriorating infrastructure, with the added benefit of lowering costs and
reducing customer impacts associated with emergency repairs. The main objectives of this
program are to ensure reliable water services, reduce the need for emergency repairs, and to
enhance available fire flows.
Project
The Beebee/Cuesta/Loomis Waterline Replacement Project (Project) will replace approximately
2,800 lineal feet of waterline on Beebee, Cuesta, and Loomis (Attachment D) streets. The
waterlines that will be replaced with this project are substandard (undersized) and deteriorated.
Their replacement will eliminate capacity constraints and improve water flow.
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Replacing these waterlines will result in lower costs to the City and reduced customer impacts
associated with emergency repairs. Reducing or eliminating the number of required emergency
repairs provide more time for maintenance staff to complete preventive maintenance, which has
the added benefit of prolonging the expected service life of other water distribution assets.
The Project will also replace 425 lineal feet of sewer main on Cuesta Drive. Staff identified cost
savings on mobilization and traffic control by incorporating this work into the Project.
Furthermore, replacement of this segment of sewer main will increase flow capacity and reduce
the infiltration/inflow of groundwater and surface runoff into the wastewater collection system
thereby reducing operational costs and the potential for sewer overflows. However, replacement
of the sewer main was not part of the approved project and unassigned Sewer Fund working
capital is being requested to take advantage of the cost savings to achieve this important
replacement.
Previous Council or Advisory Body Action
This water related portion of the project was identified in the 2019-21 Financial Plans that were
approved by Council.
Policy Context
The City Council approved the Potable Water Distribution System Operations Plan on January
19, 2016. This Plan identified this Project as a high priority. Additionally, per the October 2018
Financial Management Manual, Council approval is required for Public Projects that cost over
$175,000.
Public Engagement
Public engagement was conducted during the initial identification of this Project to be included
in the 2019-21 Financial Plan. This is a critical public infrastructure project and is important for
fire safety and the general health and welfare the public.
CONCURRENCE
This project has the concurrence of the Utilities Department.
ENVIRONMENTAL REVIEW
A portion of the Project is located within a potentially archeologically sensitive zone of influence
(within 200 feet of Old Garden Creek). Mitigation measures approved through Mitigated
Negative Declaration ER10-07 are included in the Project’s specifications and will be followed
by the City’s contractor, as applicable, consistent with the requirements of the California
Environmental Quality Act (CEQA).
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FISCAL IMPACT
Budgeted: Yes Budget Year: 2019-20
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund
State
Federal
Fees
Water Fund $1,720,534
Sewer Fund $300,000
Total $2,020,534
601 Water Fund 602 Sewer Fund
Construction Estimate $1,450,000 $250,000 $1,700,000
Contingencies $250,000 $50,000 $300,000
Total for Construction $2,000,000
Materials Testing $5,000 $5,000
Archaeological Monintoring $15,000 $15,000
Printing $534 $534
Total Project Cost $1,720,534 $300,000 $2,020,534
Current Project Balance:$1,720,534 $0 $1,720,534
Unreserved Working Captial (Sewer Fund)$0 $300,000 $300,000
Remaining Balance:$0 $0 $0
Beebee/Cuesta/Loomis Waterline Replacement, Specification No. 1000066
Project Total CostsProject Account (1000066)
Funding for the waterline replacement work is identified in the 2019-21 Financial Plan, Capital
Improvement Program (page 364). Funding for the necessary sewer main replacement work is
recommended to be appropriated from the Sewer Fund’s Unassigned Working Capital in the
amount of $300,000. A balance of approximately $30 million is available from Sewer Fund’s
Unassigned Working Capital to fund the Project.
ALTERNATIVES
Deny or defer approval to advertise. The City Council may choose to deny or defer the approval
to advertise this project. Staff does not recommend this option, as the water mains included in
this project continue to deteriorate and pose a high risk of catastrophic failure, requiring
expensive repairs.
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Attachments:
a - COUNCIL READING FILE - Project Plans
b - COUNCIL READING FILE - Project Specifications
c - Draft Resolution
d - Project Vicinity Map
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R ______
RESOLUTION NO. _____ (2021 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING USE OF SEWER FUND
UNASSIGNED WORKING CAPITAL TO SUPPORT SEWER
REPLACEMENT WORK FOR BEEBEE/CUESTA/LOOMIS WATERLINE
REPLACEMENT, SPECIFICATION NO. 1000066
WHEREAS, the City adopted the Wastewater Collection System Infrastructure Renewal
Strategy on January 19, 2016 which identified areas in the wastewater collection system that are
recommended for infrastructure improvements; and
WHEREAS, in June of 2019, the City Council approved 2019-21 Financial Plan – Capital
Improvement Program, which identified the Beebee/Cuesta/Loomis Waterline Replacement
(Project) with a total budget of $1,750,000; and
WHEREAS, to provide funding to support sewer replacement work for the Project, staff is
recommending the City Council approve use of $300,000 from Sewer Fund, Unassigned Working
Capital; and
WHEREAS, a balance of approximately $30 million is available from Sewer Fund,
Unassigned Working Capital to fund the Project.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
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Resolution No. _____ (2021 Series) Page 2
R ______
SECTION 1. The City Council authorizes staff to transfer $300,000 from the Sewer Fund,
Unassigned Working Capital to the Beebee/Cuesta/Loomis Waterline Replacement, Specification
No. 1000066, for sewer related improvements as it is a high priority City project.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2021.
____________________________________
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, on ___________________________.
____________________________________
Teresa Purrington
City Clerk
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Project
Location
Project
Location
Project Location
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Department Name: Utilities
Cost Center: 6102
For Agenda of: January 19, 2021
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Utilities Director
Prepared by: David Hix, Utilities Deputy Director - Sewer
Miguel Barcenas, Interim Deputy Director Engineering and Planning
SUBJECT: RAILROAD SAFETY TRAIL TAFT TO PEPPER PROJECT, SPECIFICATION
NO. 91375, SEWER PIPE RELOCATIONS AND CONSTRUCTION
CONTINGENCY
RECOMMENDATION
Approve a Resolution (Attachment A) authorizing the use of $50,000 from Sewer Fund
Unassigned Working Capital to increase available construction contingency for the completion
of the Railroad Safety Trail Taft to Pepper Project, Specification No. 91375.
DISCUSSION
On August 21, 2020 the Railroad Safety Trail – Taft to Pepper Project, Spec. 91375, was
awarded to Souza Contraction Inc. in the amount of $3,774,960. The project includes pedestrian
safety improvements over the railroad right of way, and some required utility relocations of
sewer and water pipes. Construction began on October 5, 2020 and is anticipated to be complete
in the summer of 2021.
The contractor began the project with
clearing and grubbing operations
within the proposed alignment for
pedestrian safety improvements. The
clearing of trees and vegetation had
uncovered unforeseen conditions on
the existing sewer system at the north
end of the project. Staff initially
determined that the sewer mainline
and its alignment were satisfactory
and would not require replacement.
As a result of discovering the sewer
main’s poor condition, replacement of
an additional 242 feet of 6” clay sewer
pipeline and one maintenance-hole is
being recommended.
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Completing this work now would renew all City infrastructure along the new pathway, reduce
the likelihood of potential sewer failures that could result in costly damages to the new pathway
or in a sewage spill. The contractor is currently under contract with the City and has all the
permits and authorization from Union Pacific Railroad to complete this work. Future
replacement will likely result in higher replacement costs, additional delays to obtain the
required permits to work near the railroad, and limited access to the site after completion of the
safety trail.
The plan and the cost provided by the contractor will replace the six-inch clay sewer pipeline
with new 8-inch HDPE sewer pipeline, which will reduce maintenance costs. Wastewater
Collection staff performs routine preventative maintenance in this region once every 6 months.
With the replacement of the additional pipe segments near the railroad right of way, periodic
maintenance requirements will be significantly reduced.
Previous Council or Advisory Body Actions
The City Council approved advertisement of the Project on March 17, 2020 (Attachment B). The
award of the Project was approved by the City Manager on August 21, 2020.
Policy Context
This project involves the replacement of poor condition sewer mainline that will maintain
compliance State Water Resources Control Board’s regulations and the City’s adopted Sanitar y
Sewer System Management Plan. This project also aligns with the City’s General Plan goal to
collect and convey all wastewater under safe and sanitary conditions to the Water Resource
Recovery Facility.
The collection and conveyance of all wastewater under safe and sanitary conditions to the Water
Resource Recovery is a goal in the Wastewater Element of the City’s General Plan.
Public Engagement
The City maintains a copy of the Sewer System Management Plan on the City’s Utilities
Department website. Outreach is also performed through various City programs including the
Environmental Compliance (Pretreatment) Program and Capital Improvement Program.
CONCURRENCE
Public Works staff concurs with this request.
ENVIRONMENTAL REVIEW
An initial study of this Project was conducted, and a Mitigated Negative Declaration (MND) was
filed to the County of San Luis Obispo on May 19, 2017. All construction plans conform to those
mitigations found in the MND.
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FISCAL IMPACT
Budgeted: Yes Budget Year: FY 20-21
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY
Available Budget
Additional
Funding Total Project Cost
Local Funds $2,516,108 $2,516,108
State Funds $3,494,000 $3,494,000
Federal
Fees
Other: Sewer Fund $0 $50,000 $50,000
Total $6,010,108 $50,000 $6,060,108
City Council approved the 2019-21 Financial Plan – Capital Improvement Program, which
identified the Railroad Safety Trail Taft to Pepper (Project) with a total budget of $6,010,108.
To increase the contingencies for sewer related improvements for the Project would cost a total of
$50,000, increasing the total project budget from $6,010,108 to $6,060,108. Sewer Fund
Unassigned Working Capital has an available bal ance of over $30 million to accommodate the
recommendation.
ALTERNATIVE
Do not approve the Resolution. The Council may elect not to approve the Resolution
authorizing additional contingency; however, staff does not recommend this alternative as future
replacement will likely result in higher replacement costs, ongoing maintenance is costly and
time consuming and failure of pipeline would result in closure of the safety trail to perform
emergency repairs.
Attachments:
a - Draft Resolution
b - Council Agenda Report dated March 17, 2020
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R ______
RESOLUTION NO. _____ (2021 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING USE OF SEWER FUND
UNASSIGNED WORKING CAPITAL TO INCREASE CONSTRUCTION
CONTINGENCIES FOR THE RAILROAD SAFETY TRAIL TAFT TO
PEPPER PROJECT, SPECIFICATION NO. 91375, SEWER PIPE
RELOCATIONS
WHEREAS, in June of 2017, the City Council approved 2019-21 Financial Plan – Capital
Improvement Program, which identified the Railroad Safety Trail Taft to Pepper (Project) with a
total budget of $6,010,108; and
WHEREAS, on March 17, 2020, the City Council approved the Railroad Safety Trail Taft
to Pepper Project (Project) to advertise for bids; and
WHEREAS, on August 21, 2020, City Manager awarded the construction contract to
Souza Construction Inc. in the amount of $3,774,960.26, and authorized $630,000.00 for
construction contingencies related to transportation improvements; and
WHEREAS, it has been discovered during construction that several hundred feet of sewer
line are in poor condition and must be replaced to provide safe and sanitary conveyance of
wastewater; and
WHEREAS, to ensure adequate funding is available for completion of the Project, staff is
recommending the City Council approve use of $50,000 from Sewer Fund, Unassigned Working
Capital to appropriate project contingencies related to unforeseen conditions for sewer pipe
replacements; and
WHEREAS, a balance of approximately $30 million is available from Sewer Fund,
Unassigned Working Capital to fund the Project.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. The City Council authorizes staff to transfer $50,000 from the Sewer Fund,
Unassigned Working Capital to the Railroad Safety Trail Taft to Pepper Project, Specification No.
91375, for sewer related improvements as it is a high priority City project as shown in the attached
Budget Amendment Request (Exhibit A).
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Resolution No. _____ (2021 Series) Page 2
R ______
SECTION 2. Environmental Review. An initial study of this Project was conducted, and
a Mitigated Negative Declaration (MND) was filed to the County of San Luis Obispo on May 19,
2017. All construction plans conform to those mitigations found in the MND.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2021.
____________________________________
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, on ___________________________.
____________________________________
Teresa Purrington
City Clerk
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Department Name: Public Works
Cost Center: 5010
For Agenda of: March 17, 2020
Placement: Consent Item
Estimated Time: N/A
FROM: Shelly Stanwyck, Assistant City Manager, Community Services
Prepared By: Bryan Wheeler, Transportation Planner-Engineer III
SUBJECT: AUTHORIZATION TO ADVERTISE AND AWARD RAILROAD SAFETY
TRAIL TAFT TO PEPPER PROJECT, SPECIFICATION NO. 91375
RECOMMENDATION
1. Approve plans and specifications for the Railroad Safety Trail Taft to Pepper Project
(Project), Specification No. 91375 and authorize staff to formally advertise for bids; and
2. Authorize the City Manager to award the construction contract if the lowest responsible bid
is within the publicly disclosed funding amount of $5,070,600; and
3. Authorize the City Manager to award the construction management contract if the lowest
responsible bid is within the publicly disclosed funding amount of $603,750; and
4. Authorize the City Manager to award the railroad services contracts for flagging and
permitting, not to exceed the publicly disclosed funding amount of $110,000.
DISCUSSION
Background
The Railroad Safety Trail (RRST) has long been one of the highest-priority multimodal
transportation projects in the City of San Luis Obispo (City)—a crosstown, dedicated facility for
pedestrians and bicyclists connecting the southern City limits north to California Polytechnic
State University (Cal Poly). Over the past two decades, approximately 40 percent of the total
four-mile trail has been completed and existing portions of the trail are enjoyed by over 1,000
pedestrians and cyclists per day. This Project proposal includes construction of the next segment
of the RRST from Taft Street to Pepper Street. It segment was included in the 2013 Bicycle
Transportation Plan (Attachment A) and supports the current Major City Goal to improve
Sustainable Transportation in the City.
The RRST extension from Taft Street to Pepper Street will encompass about 0.4 miles from the
existing trail alignment on the west side of California Boulevard, near Taft Street, south along
the existing bridge crossing over Highway 101, then shifting away from California Boulevard
behind the California Highway Patrol (CHP) property to a new bicycle/pedestrian bridge
crossing over the Union Pacific Railroad (UPRR) and connecting Phillips Lane to Pepper Street.
A Project vicinity map and bridge rendering shown below (Figure 1 & 2).
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Figure 1: Study Area Map
Figure 2: Rendering of Railroad Safety Trail Bridge over UPRR Tracks between Phillips and Pepper
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Caltrans Active Transportation Program Grant
In 2015, the City applied for a Caltrans Active Transportation Program (ATP) grant for the
Project and was awarded $3.24 million in funding towards Project construction. Over the past
five plus years, the Project progressed with planning, design, environmental review, permitting
and right-of-way acquisition to the current “shovel-ready” stage. After diligent negotiations with
UPRR, the State, and a private property owner, all property acquisition necessary to construct the
Project were completed in summer of 2019. At this time, staff has completed the Plans,
Specifications and Estimates and the Project is ready to be advertised for construction.
Project Scope of Work
The construction package attached to this Report includes plans and specifications for
construction of the RRST between Taft Street and Pepper Street. The designs include the
following elements:
a. Taft Street to Highway 101 Overcrossing – Separated Class I bicycle/pedestrian trail
along the west side of California Boulevard from Taft Street to the Highway 101
overcrossing.
b. Highway 101 Overcrossing – On-street Class IV protected two-way bikeway (“cycle
track”) along the existing California Boulevard bridge crossing over Highway 101. A
metal railing physically separates cyclists from motor vehicles and the existing sidewalk
serves pedestrian travel along the bridge.
c. Highway 101 Overcrossing to Phillips Lane – Separated Class I bicycle/pedestrian trail
shifts behind the CHP headquarters connecting to the Phillips Lane cul-de-sac.
d. Phillips Lane to Pepper Street – A new bicycle/pedestrian bridge connects Phillips
Lane on the north side of the UPRR tracks south to Pepper Street.
e. Other Elements
1. ADA curb ramps and path-of-travel upgrades at the Highway 101 bridge.
2. Widening of the Highway 101 offramp at California Boulevard to provide additional
queue storage (a requirement for Caltrans approval)
3. Resurfacing and re-striping along California Boulevard from Taft Street to the
Northbound Hwy 101 On- and Off-ramps.
4. Lighting system for the Class I trail.
Construction plans, specifications, and engineer’s estimate are provided as City Council Reading
Files as Attachment B thru D.
Next Phases of the Railroad Safety Trail Project
Upon completion of the Project, several gaps will remain along the RRST, totaling
approximately 1.5 miles. With completion of planned and pending development within the
Orcutt Area, the segment of the RRST between Tank Farm Road and the Jennifer Street Bridge
is anticipated to be fully connected within the next few years. This leaves about a one-mile gap
between Pepper Street and the Jennifer Street Bridge to complete the four-mile continuous
crosstown route. The preferred alignment and type of facility to complete this final RRST gap
will be identified in the City’s Active Transportation Plan, which is currently being drafted, and
is scheduled for completion later in 2020.
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Public Engagement
This Project was vetted by the City’s Bicycle Advisory Committee in 2011 and has continued to
be identified as a top project priority each year by the Active Transportation Committee (ATC).
The project was included in the 2013 Bicycle Transportation Plan and 2014 General Plan
Circulation Element, each of which included several public engagement opportunities. During
public outreach activities conducted in fall of 2019 for the upcoming Active Transportation Plan,
completion of the RRST was commonly expressed as one of the highest priority projects for
community members.
Policy Consistency
This project is identified in the RRST Plan, adopted in 2002, the General Plan Circulation
Element, and the City’s Bicycle Transportation Plan (BTP), adopted in 2013.
Construction of this RRST segment furthers the adopted 2019-21 Major City Goal: Multi-Modal
Transportation - Prioritize implementation of the Bicycle Master Plan, pedestrian safety, and the
Short-Range Transit Plan.
CONCURRENCE
The Project has been reviewed by the ATC and is a top priority for the committee to achieve the
City’s Sustainable Transportation Major City Goal. Updates have been provided to the ATC
throughout the project process.
The project came before City Council on August 20, 2019 to approve the transfer of funds from
the Transportation Impact Fee Program to the project. The RRST project was included in the
Citywide Transportation Impact Fee (TIF) program, and staff requested the transfer of
$2,894,163 in total from the Citywide TIF account to the RRST project account to fund the
property acquisition ($496,000) and construction funding shortfall ($2,398,163).
ENVIRONMENTAL REVIEW
An initial study of this Project was conducted, and a Mitigated Negative Declaration (MND) was
filed to the County of San Luis Obispo on May 19, 2017. All construction plans conform to those
mitigations found in the MND.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2017-18
Funding Identified: Yes
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Fiscal Analysis:
RRST- Taft to Pepper (91375)
Project Costs
Construction Costs $4,440,600
Construction Contingencies (15%) $630,000
Total Costs for this Construction Contract $5,070,600
Additional Items Outside Construction Contract (UPRR Items) $110,000
Construction Management & Materials Testing $603,750
Total for Construction $5,784,350
Project Funding
State Funds (Caltrans ATP Grant & SHA Funds) $3,494,000
Local Funds (Citywide TIF & Local Revenue Measure) $2,516,108
Total Available Funds $6,010,108
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund (LRM) $117,108
State (ATP Grant) $3,244,000
State (SHA) $250,000
Federal $0
Fees $0
Other: Citywide TIF $2,399,000
Total $6,010,108
The total construction cost for this project is estimated at $5,784,350, which includes
construction costs and contingencies related to this bid package ($5,070,600), construction
management and materials testing ($603,750) and related railroad flagging and permit review
costs, ($110,000). Construction Management support for this project will be procured via a
Request for Proposals (RFP) process through the City’s existing on-call construction
management contracts.
To date, $748,717 has been used or encumbered for property acquisition, environmental review
and project design.
ALTERNATIVES
The Council may choose not to authorize advertising for construction at this time. However, this
is not recommended because there is adequate funding for the project, the improvements will
provide a much-desired expansion of the Railroad Safety Trail to Cal Poly for bicyclists and
pedestrians, and this project will set up a critical link for the Railroad Safety Trail to connect
with Downtown San Luis Obispo. Further, if a construction contract is not awarded by June
2020, the City would risk forfeiture of the $3.24 million in Caltrans ATP grant funds.
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Attachments:
a - Project Page from 2013 Bicycle Transportation Plan
b - COUNCIL READING FILE - Project Plans
c - COUNCIL READING FILE - Special Provisions
d - COUNCIL READING FILE - Project Estimate
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Department Name: Administration
Cost Center: 1001
For Agenda of: January 19, 2021
Placement: Public Hearing
Estimated Time: 30 minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Georgina Bailey, Management Fellow
SUBJECT: CANNABIS BUSINESS PROGRAM AND REGULATION UPDATES
RECOMMENDATION
1. Receive an update on the City’s Cannabis Business Program; and
2. Adopt a Resolution that updates the Cannabis Fee Schedule (Attachment A); and
3. Introduce and adopt an Ordinance amending Municipal Codes Section 9.10 and 5.10
(Attachment C) that renews all operator permits at the beginning of the fiscal year.
4. Adopt a Resolution that waives the operator permit renewal fee for a cannabis business being
annexed into the City of San Luis Obispo from the date of annexation to July 1, 2021
(Attachment D).
REPORT-IN-BRIEF
The City of San Luis Obispo adopted regulations to implement a Cannabis Business Program
after the passage of Proposition 64 that were informed through public engagement, industry
outreach and City Council direction. The initial regulations were adopted by the City Council on
November 27, 2018. Staff returned on December 3, 2019, a year after the regulations were
adopted to provide a cannabis program update and City Council adopted recommended changes
to application fees and cannabis regulations. City Council directed staff to return with an update
regarding the implementation of the Cannabis Business Program and potential updates to the
regulations in the next year. This staff report intends to inform and recommend to the City
Council updates to the Cannabis Business Program based on the City’s experience over the last
year.
During that time, the City has opened two rounds of cannabis business application periods: 1)
January 15 – February 18, 2020, and 2) July 1-31, 2020. In parallel, staff worked to continually
develop the administrative and operational guidelines necessary to fully implement the Cannabis
Business Program. Staff has continued to follow the City’s process to comply with State
mandates allowing operators licensed outside of the City to deliver into the City, while enforcing
compliance with the City’s Business License and Tax Ordinance. Staff has conducted analysis,
research and outreach to businesses on the operator permit renewal fee and is recommending a
change to the operator permit fee paid by all applicants. Staff is also recommending waiving the
operator permit renewal fee of a cannabis business being annexed into the City from the time of
annexation to the start of the next fiscal year.
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Informed by staff’s experience and community feedback with operator permit renewals and
operator permit activations within the current Municipal Code 9.10 and 5.10, staff is
recommending changes to both sections of the Municipal Code that place all operators on an
operator permit renewal cycle in line with the fiscal year.
DISCUSSION
Background Cannabis Business Program Update
Following the passage of Proposition 64 in 2016 with 57% Statewide voter approval, the
initiative to legalize cannabis in the state of California became law on November 9, 2016,
allowing for recreational cannabis sales as of January 1, 2018. Following the passage of the
City’s Cannabis Business Tax on November 6, 2018, on November 27, 2018 the City Council
approved the fee structure, application criteria and zoning regulations to allow for cannabis
businesses to operate in the City.
Since the City Council has adopted the cannabis business program, staff has provided an annual
update with recommendations for improvements.
Application Update
In order to choose the most qualified operators, the City Council established an application and
approval process for applicants wanting to operate cannabis businesses in the City. In 2020,
based on feedback from businesses, staff improved that process by creating a completeness
check for all non-competitive applications. This process provides an independent review of the
application to determine if any required information is missing prior to scoring. The applicant is
provided with a list of any missing information and an opportunity to submit before the
application is deemed complete and scored. This process was added to better support non-
competitive applicants move through the City’s application process and receive operating
permits. The process has been successful in both application periods in 2020, with two applicants
being issued contingent operator permits out of three total applications. Both of those operators
are currently moving through the background investigation process to receive final operator
permits.
In December, the City prevailed in a lawsuit filed by an unsuccessful retail applicant challenging
the City’s rejection of its application for providing false information in the application process.
The favorable conclusion of that lawsuit ends any uncertainty related to the City’s review
process or the status of the three retail cannabis permits that were issued to other businesses in
that selection process.
Business Update
On November 25, 2019, the City’s first cannabis non-storefront retail opened and has since been
operating. On August 1, 2020, the City’s first cannabis retail storefront opened. Cannabis was
deemed by the State of California to be an essential service during the initial COVID-19
Statewide Stay at Home Order which went into effect on March 19, 2020. As such, operators in
the City have been able to stay open throughout the COVID-19 pandemic.
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The State and City have also provided an avenue for cannabis operators to conduct curbside
pickup, however, retailers are also able to continue in person shopping in compliance with public
health guidelines.
The remaining two retail storefront operators are at various stages of the permitting process. One
retail storefront has completed the land use permitting process and is expected to open by April
2021. The other retail storefront operator is working through the land use permit process. The
City’s first microbusiness is expected to be open by June of 2021. The below table summarizes
the status of businesses who have been granted permits by the City.
Business Business Status
Retail Storefront
Megan’s Organic Market Open and operating in the City.
Natural Healing Center Received a Commercial Cannabis Operator Permit on October
22, 2019.
Received a Conditional Use Permit on November 13, 2019
The businesses operator permit requires the business be open
by April 2021.
SLO Cal Roots Received a Commercial Cannabis Operator Permit on March
23, 2020 and is now completing the land use permit process.
Manufacturing,
Distribution and Retail
(Non-Storefront)
Coastal Delivery SLO Open and operating in the City.
Element 7 Received a Commercial Cannabis Operator Permit on
December 6, 2019.
Received a Conditional Use Permit on August 24, 2020.
The businesses operator permit requires the business be open
by June 2021.
Cali Direct Received a Contingent Commercial Cannabis Operator Permit
on May 19, 2020 and is currently completing the background
check process.
Pure SL Received a Contingent Commercial Cannabis Operator Permit
on November 2, 2020 and is currently completing the
background check process.
Mobile Deliveries from Outside of the City
The State Bureau of Cannabis Control (BCC) has implemented rules that mandate cities to allow
delivery within their jurisdiction from licensed operators outside of the City, consistent with
Section 5416 (d) of the BCC’ s cannabis regulations which states:
“d) A delivery employee may deliver to any jurisdiction within the State of California
provided that such delivery is conducted in compliance with all delivery provisions of
this division.”
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In 2019, the City developed a process to both bring licensed delivery businesses into compliance
with City business license and tax provisions and to enforce City and State laws against
unlicensed and illegal businesses delivering in the City. The City continued these efforts in 2020
and as a result of education and enforcement, several businesses outside of the City have come
into compliance and have been remitting taxes. The City has also been successful in receiving
back taxes from businesses operating in the City prior to coming into compliance and has been
successful in reporting illegal and out of compliance businesses to the BCC. Since the start of
this program the City has registered 11 of these businesses and has received over $100,000 in
cannabis taxes from these businesses. The City remains one of the only cities in the State and
only city in the County that has been successful in bringing these businesses into compliance.
Staff will continue this process as resources and staff time allow in 2021.
Annexation of a Cannabis Business into the City
City staff learned after City Council approved the Fiero Lane Annexation at the November 19,
2019 City Council meeting that one of the businesses being annexed into the City was a non-
storefront retail and small-scale manufacturing cannabis business currently permitted by the
County of San Luis Obispo (County). As a licensed cannabis business by the County and BCC
the business is eligible to continue its business operations in the City once the annexation occurs.
This is the first existing cannabis business being annexed into the City, and the current cannabis
regulations, Chapters 9.10, 5.10 and Section 17.86.080, do not provide explicit direction for
cannabis business annexations. To this end, Section 9.10.250 of the City’ s cannabis ordinance
authorizes the City Manager to determine any administrative regulations necessary to implement
the requirements and fulfill the purposes and policies of the City’s cannabis regulations. Working
within the Municipal Code, informed by other municipalities best practices, BCC policies,
internal multi-department staff teams and the direction of the City Manager, the City created a
process within the administrative guidelines to bring annexed cannabis businesses under the
City’s cannabis regulations. Cannabis businesses annexed into the City are not required to
complete the new cannabis business application process or pay any application fees, as the
existing land use related approvals must be honored by the City. The City does, however, require
cannabis businesses conform to the regulatory standards of Municipal Code 9.10 and 5.10, along
with all other general annexation regulations in Chapter 17 of the Municipal Code. Likewise, the
cannabis business must complete a background check based on the BCC’s background check
requirements and requires businesses to submit their Security Plan approved by their previous
jurisdiction and BCC for the City’s records. Annexed cannabis businesses must also pay the
operator permit renewal fee for a cannabis operator permit in the City at the rate set by the City
Council as the business will be operating in the City under a City issued operator permit.
City staff met with the business multiple times to discuss the annexation process and the City’s
proposed approach to bring the business under the City’s cannabis regulations. Through meeting
with the business on June 22, 2020, and a follow up meeting on September 24, 2020, the City
developed the approach outlined above and shared that with the business. The business did
express significant concerns regarding the operator permit renewal fee. The City understands the
concerns given the business structure was based on County operating permit fees.
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As such, staff is recommending the City Council adopt a resolution that will waive the business’
operator permit renewal fee obligation from the time of annexation to July 1, 2021 in order to
support the successful transition and continued operation of the existing business in the City’s
jurisdiction, while still being issued a commercial cannabis operator permit to operate in the City
during that time (Attachment D).
The recommendation to waive the operator permit renewal fee for the annexed cannabis business
for six months is in intended to provide the business time to make any adjustments to the
business structure and/or determine other options with goal of retaining the business in the City.
The City Cannabis Business Tax would still be remitted during this time period.
Cannabis Operator Permit Renewal Fee
On November 27, 2018, the City Council approved both application and operating license fees
for the Cannabis Business Program. These fees were based on estimated staff time and oth er
costs required to administer the adopted regulations and were developed by a consultant with
specific experience including work with other California cities in developing similar fees.
On December 3, 2019, the City Council approved a change to the cannabis application fees that
allowed all operators to pay an initial application fee and a secondary fee once the contingent
operator permit was granted, thus lowering the initial application fee. Staff also committed to
bring back an analysis of operator license fees after one full year of operations to collect
information on actual time spent compared to the assumptions used in developing the original
fees.
Regulatory fees must be based on an assessment of the reasonable costs incurred to provide the
regulatory service. To accomplish this, staff worked with a consultant, HdL, to conduct a new
fee study that analyzed staff time spent on operator permits of cannabis businesses within the
City which includes all the necessary time to implement and oversee the City’s cannabis
regulations for each business and the overall program. Furthermore, the fee study examined the
complexity of the regulatory roles, the frequency of the duties, the appropriate level of the staff
and/or contractors involved and the legal restrictions in implementing the cannabis program in
the City. The fee study captures the total costs involved in the administration of the Cannabis
Business Program to ensure the City is recovering costs for the staff time, contractors, and other
expenses required to manage the program.
Staff also recommends that the operating permit fee be consistent across all cannabis business
types. This recommendation is based on the results of the fee study which revealed staff spent
approximately the same amount of time for oversight and regulation for each cannabis business
permitted in the City regardless of the type of cannabis business. This is also consistent with fee
structures of other cities in California including Watsonville, Goleta, Salinas, Modesto,
Placerville, Vista, Redwood City and Los Angeles.
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The current and proposed fees are listed in the chart below.
Business Type Current Fees Proposed Fees
Retail $96,074.11 $39,638.38
Manufacturing $76,407.43 $39,638.38
Cultivation $76,629.12 $39,638.38
Other Businesses $69,890.40 $39,638.38
Staff also recommends that the two operators who have already paid their operator permit
renewal fee for the current year are reimbursed the difference between the proposed and current
fees. This approach is consistent with the requirement of fees assessed by the City to only cover
the reasonable costs associated with the fee for service. While initial efforts to establish the
program and get businesses operational and compliant, was significant, staff believes the
adjusted fees are reflective of ongoing costs of program administration.
Fee Comparison with Other Jurisdictions
The following table summarizes the proposed operator permit renewal fee for various business
types that are allowed in the City, as compared with other jurisdictions that have adopted similar
fee schedules.
In general cannabis business permit fees will vary depending on the level of oversight of the
business operations, city policies on cost recovery and amount of regulations that need to be
administered. The range of regulatory permit fees statewide is about $1,028 to $143,000 and in
most cases larger markets have higher fees to address more complexities more commonly
impacting larger cities. Below is a table that provides several annual license renewal fees for
retail businesses in California cities. Cities whose retail annual license renewal fee is the same
for all types of businesses have a “*” symbol.
Retail Operator Permit Renewal Fee
Santa Cruz No Annual Fee
Monterey County* $1,028
Watsonville* $2,800
San Francisco $4,354
San Luis Obispo County* $3,728 or $6,836
Santa Barbara $6,945
Vallejo $8,288
Los Angeles* $8,486 or $9,735
Salinas* $9,854
Goleta* $11,879
Oakland $15,151
Grover Beach $20,000
Sacramento $20,800
Modesto* $21,740
Placerville* $22,841
Vista* $28,001
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Redwood City* $29,530
San Luis Obispo* $39, 638
Davis $42,359
San Jose $143,333
The City’s recommended fees are higher than many jurisdictions, but a major contributing factor
is the level of cost recovery associated with the fees. The City is one of the few jurisdictions to
establish a 100% cost recovery goal for cannabis business fees, which creates a higher fee when
compared with cities with a lower cost recovery goal.
Operator Permit Renewal Timing
Staff also recommends a minor ordinance amendment to Chapter 9.10 and Chapter 5.10 of the
Municipal Code that requires all operators to renew their operator permit on the City’s Fiscal
Year, starting July 1st and ending June 30th of each year (Attachment C). This recommendation is
consistent with how all other types of Business Licenses and Tax Certificates under Municipal
Code Chapter 3 are currently renewed in the City of San Luis Obispo. For businesses that
activate their operator permit outside of the start of the fiscal year, the fee will be prorated from
their activation date and will renew on July 1st. This recommendation will create a more efficient
and consistent process for processing renewals, thereby minimizing unnecessary administrative
time that could drive additional costs.
Policy Context
The updates to the cannabis regulations are consistent with overall goals of the Cannabis
Business Program, the City’s 2020-2021 Meta Major City Goal and the applicable sections of the
Municipal Code.
The updates are also consistent with Chapters 9.10 and 5.10 of the Municipal Code and Section
17.86.080 of the Zoning Code, which outline that the provisions of each code are guided by
principles to protect, the health, safety, and welfare of the residents of the City. Furthermore, it is
the general best practice for the City to provide the most clear and concise regulations to benefit
the community, businesses, staff, and the City Council. It is also a general best practice for
economic development to lower the operator permit renewal fee when it is appropriate to support
businesses and business sustainability. The recommended amendments will not only provide
more clarity for cannabis operators during operator permit renewals but will also streamline the
process administratively for both businesses and staff. Likewise, the reduced cost of the operator
permit renewal fee will benefit businesses, while not sacrificing the City Council’s fiscal
responsibility goals for full cost-recovery1.
1 Financial Plan Policies: Section 2. 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.
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Public Engagement
The current ordinance and resolutions were considered and adopted City Council on May 15,
2018, October 16, 2018, November 27, 2018, and December 3, 2019. Since that time, staff have
been in regular communication with applicants, business operators and industry representatives,
receiving feedback on a wide range of issues related to the implementation of the Cannabis
Business Program. In addition, the information contained in this report was shared in advance
with businesses that have received permits from the City.
The Council has recently received request for policy modifications in anticipation of hearing this
item. Should Council want to proceed with any changes, staff would recommend a study session
to explore each of the policy areas and receive specific direction about any changes as the current
regulatory framework is an outcome of intensive public outreach and public hearings.
CONCURRENCE
A Steering Committee and Cannabis Team of City staff members including Administration staff,
City Attorney, the Community Development Director and staff, Finance Director and staff, and
Police Chief and staff, was convened to guide the process of developing updates and regulations
for consideration by the City Council.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended actions in this
report, because none of the actions constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2021
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Current
Budgeted Fees
Revised Budgeted
Fees
Change in
Budgeted
Fees
Annual
Ongoing Cost
General Fund $320,937 $220,402 $100,535 $0
State
Federal
Fees
Other:
Total $320,937 $ 220,402 $100,535 $0
5. The service is regulatory in nature and voluntary compliance is not expected to be t he 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.
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On June 2, 2020 City Council adopted fee revenues for the cannabis program for Fiscal Year
2020-21 of $320,937 based on the fees collected from applications and operator permits.
Because staff proposes to reimburse operators the difference, there will be a budget shortfall for
Fiscal Year 2020-21 in the actual fees collected. However, staff is confident that the amounts
collected in Cannabis tax will exceed the budgeted $400,000 and eliminate most if not all of the
fee shortfall.
Staff will provide an update on revenue levels at mid-year and incorporate the new fees into the
revenue assumptions for the 2021-23 Financial Plan.
ALTERNATIVES
1. Do not adopt staff recommendations. The recommendations proposed represent the changes
necessary to maintain the direction provided by the City Council to this point. For requested
modifications, the Council should provide guidance on specific changes desired.
2. Modify and Direct the Proposed for the Cannabis Business Annexation . The City Council
has the latitude to make modifications to the proposed action for the cannabis business
annexed into the City. The Council has the policy direction to adjust the proposal for the
cannabis business and Staff will be prepared to offer any ideas for any adjustments.
3. Modify and Direct the Proposed Fee Recommendation. The City Council has the latitude to
make modifications to the Cannabis Fee Schedule. The Council has the policy discretion to
adjust fees and Staff will be prepared to offer any ideas for any adjustments.
4. Modify and Direct the Proposed Ordinance Amendments. The City Council has the latitude
to make modifications to the 9.10 and 5.10 Municipal Code Ordinance Amendments. The
Council has the policy discretion to adjust the Operator Permit Renewals and Staff will be
prepared to offer any ideas for any adjustments.
Attachments:
a - Draft Resolution - Amendments to Cannabis Master Fee Schedule
b - Cannabis Fee Study Executive Summary
c - Draft Ordinance
d - Draft Resolution - Waive Papa Bear Farms Yearly License Renewal Fee for FY 20-21
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R ______
RESOLUTION NO. _____ (2021 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, on November 27, 2018, the City Council adopted Resolution 10965 (2018
Series) which updated the City’s Master Fee Schedule to include the one-time application fees and
yearly license renewal fees; and
WHEREAS, on December 2, 2019, the City Council adopted Resolution 11066 (2019
Series) which updated the City’s Master Fee Schedule that updated the one-time cannabis
application fee for all types of cannabis businesses permitted 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, HdL, to prepare a fee study for the
purpose of identifying appropriate fees to assess for various activities associated with
implementing and overseeing the City’s cannabis regulations for each business in the City of San
Luis Obispo; and
WHEREAS, the City has completed one full year of operations to collect information on
actual time spent compared to the initial cannabis yearly license renewal fees City Council adopted
through Resolution 10965 (2018 Series), upon which staff has concluded it necessary to adjust the
yearly license renewal fees for all types of cannabis businesses permitted within the City; and
WHEREAS, public outreach was conducted through outreach by staff members to
cannabis businesses impacted by the newly proposed fees and through publication of the proposed
fee schedule on the City’s website in advance of the City Council’s consideration of the newly
proposed fees; and
WHEREAS, on November 27, 2018, the City Council adopted a fee schedule; and
WHEREAS, on December 3, 2019 City Council adopted an updated fee schedule; and
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Resolution No. _______ (2021 Series) Page 2
R ______
WHEREAS, on January 19, 2021 the City Council held a public hearing to review and
discuss the updated proposed fee schedule, receive public input, and consider the
recommendations of its staff.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
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.
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Resolution No. _______ (2021 Series) Page 3
R ______
SECTION 2. Action. The City Council takes the following actions:
1. The City’ s Master Fee Schedule is hereby amended to include updated user and
regulatory fees for cannabis business operator applications and annual operator permit
licenses as provided in Exhibit A attached hereto.
2. The City will reimburse operators through the Finance Department who have already
paid their 2020-2021 yearly license renewal fees the difference of what the operators
paid based on the City’s 2020-2021 Master Fees and the newly proposed fees in Exhibit
A attached hereto.
3. This resolution supersedes Resolution 11066 (2019 Series) to the extent inconsistent
herewith.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2021.
____________________________________
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, on ___________________________.
____________________________________
Teresa Purrington
City Clerk
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Resolution No. _______ (2021 Series) Page 4
R ______
EXHIBIT A
CITY OF SAN LUIS OBISPO
Cannabis Fee Schedule
One Time Application Fees
All Commercial Cannabis Business Applicants:
Initial Application Fee $5,087.79
Final Application Fee when permit issues $18,797.63
Total One Time Application Fees $23,885.55
Yearly License Renewal Fees
All types of Cannabis Businesses permitted within the City $39,638.38
Retail Businesses $ 93,564
Manufacturing Businesses $ 74,411
Cultivation $ 74,627
Other Business $ 68,064
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1
Cannabis Business
Permit Fee Analysis
Executive Summary
Cannabis Business Permit Fee:
In the past five years, HdL has conducted application reviews for over 2,500 cannabis businesses
in California and gathered essential data during this time to evaluate the complexity of managing
a cannabis program for cities. In addition, its staff has conducted compliance and finan cial
reviews for over 16,000 cannabis businesses while working as regulators in California, Colorado,
and Nevada which has provided the Consultant a great understanding of the roles and
responsibilities needed to regulate the Cannabis Industry in San Luis Obispo. Since HdL staff has
been pioneers in developing regulatory management schemes for over 9 years at the state,
county, and local levels it has been able to incorporate “risk assessment” strategies which have
proven to be effective, efficient, and eco nomical. The core development of this program was
established by adopting the Colorado Marijuana Enforcement Divisions approach of regulating
nearly 1,700 businesses but modifying it to work at the local agency level with city staff which
can also be augmented with third-party consultants.
As part of the fee evaluation process for the City, the Consultant interviewed key staff from
various departments which had been identified as playing a role in the Cannabis Management
Program (CMP). These departments consist of the following: Administration, Attorney’s Office,
Community Development, Finance, Fire, Information Technology, and Police Department.
Furthermore, as part of this process HdL examined the complexity of the regulatory roles, the
frequency of the duties, the appropriate level of the staff involved and the legal restrictions
surrounding the course of action in implementing a CMP. Therefore, as part of this process we
have captured the total costs involved in the CMP to ensure the City is 100% reimbur sed for the
staff time, consultants fees, and other expenses which are essential to managing the program.
The recommended permit fee is based on the cost of annually reviewing cannabis businesses and
the cost of overseeing the City’s proposed regulatory enforcement strategy. The regulatory
enforcement strategy is designed to monitor licensed cannabis businesses within the City of San
Luis Obispo on a monthly, quarterly, and annual basis to ensure compliance with the City’s rules
and regulations throughout the year. The total enforcement time is broken into five performance
activities intended to balance proactive and reactive work that is critical to industry compliance.
It is anticipated that the City will have issued a total of four (4) to six (6) cannab is retail storefront
and non-storefront permits by the end of calendar year 2021 with the anticipation of issuing
others in future years. As such, we have determined the following factors which are illustrated in
the chart below. The study identified that 55% of the overall strategy will be in the form of
proactive enforcement (Risk-Based Reviews/Inspections & Stakeholder/Training), while 45% of
the time will be spent engaged in reactive enforcement (Complaints, NQSP & Administrative
Actions). The percentage numbers are expected to change over time to a greater percentage of
proactive enforcement as the industry and the enforcement strategies mature.
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Additionally, the strategy is designed to oversee the licensed businesses by utilizing both non -
sworn and sworn personnel. The sworn officers are intended to be used as support to the non -
sworn staff and to assist in matters related to complaints, attending stakeholder meetings, and
investigating illegal activity or non-qualified sales. The fee analysis determined the total amount
of hours involved in administering the CMP for the City. These hours include direct support and
contact with businesses, compliance check, annual background checks and internal
administrative program support. To achieve full cost recovery for the program, these hours are
then apportioned on per business basis (approximately 277 hours). The analysis then determined
the total City costs for the CMP by using fully burdened staffing rates, other operating costs and
applicable organizational overheard costs. These costs are then included in a general City hourly
cost for administering the program. As a result, it is recommended that the Cannabis Business
Permit Fee be established at the rate of $39,634.38.
In establishing this fee, it is a nticipated it will cover the cost associated with the annual
management and oversight of the program. Although the previous cannabis fee established
different cost for each type of business the “risk assessment” model approach has proven more
effective since it is built based upon common categories that all business are regulated regardless
of the business activity. These fees should be charged to each business operator prior to the
issuance of a Cannabis Business Permit and annually thereafter. For those b usinesses already
operating, the City may wish to prorate the fee so that all the fees will be due on the same date
which will streamline the renewal process administratively. Chart #1 below has been broken
down to identify the five core areas of the risk base assessment development process.
Chart #1
39%
32%
9%
16%4%
Enforcement Activities
Risk-Based Reviews/Inspections Administrative Actions
Complaints Stakeholder/Training Meetings
Non-Qualified Sales Program
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ENFORCEMENT ACTIVITY PER PERMIT STAFF INVOLVED TOTAL HOURS PERCENTAGE
Risk-Based Reviews/Inspections Sworn /Non-sworn 108 hours 39%
Administrative Support and Actions Sworn /Non-sworn 89 hours 32%
Complaints Sworn /Non-sworn 24 hours 9%
Stakeholder/Training Meetings Sworn /Non-sworn 44 hours 16%
Non-Qualified Sales Programs Sworn /Non-sworn 12 hours 4%
Cannabis Management Program Total 277 hours 100%
• Risk-Based Reviews/Inspections – It is recommended the City establish “Risk-Based”
approach for monitoring compliance of cannabis businesses to make the best use of City
resources.
o Level 1 Reviews/Inspections are limited to a quick review of the business, which
may be conducted either on-site or off-site. These can be done by monitoring
social media sites, observations of illegal signage, and illegal activity observed by
City staff or the Police Department.
o Level 2 Reviews/Inspections involve a thorough inspection of the business and
provides a structured and efficient tool to gauge how well a licensed business is
meeting compliance standards. This level of review may be done by the Consultant
conducting financial audits which may detect issues during the course of the audit.
In addition, businesses are also subject to quarterly compliance reviews and onsite
inspections.
o Level 3 Reviews/Inspections This level of compliance will be done by the Police
Department to address criminal activity which is reported to them by citizens,
customers, or other agencies and will be conducted as needed.
• Administrative Support and Actions – This function shall serve to establish the primary
contacts for the Cannabis Permittees and serve to conduct the duties of coordinating with
various departments or state regulatory agencies. In addition, it will be responsible for
the collection of tax and fees as well coordinating with the handling of cash payments
with armored vehicles and financial institutions. Furthermore, i n the event a business is
the subject of administrative sanctions, the City shall take the appropriate action to take
legal actions, such as notices for non -compliance, fines, suspensions, and permit
revocation. Finally, if required it will also escalate increased oversight and reporting
requirements for businesses that need additional attention due to regulatory issues .
• Complaints – As part of a robust and effective Risk-Based review program, it is imperative
for the City to receive, track, and investigate complaints received from external sources
in a consistent manner. The evaluation and investigation of complaints should be one of
the City’s highest priorities. Based on the number and type of complaints , enforcement
staff might need to re-classify the risk level and evaluate whether the need for increased
enforcement activity might be warranted.
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• Stakeholder/Training Meetings – In order to work collaboratively and collectively it will
be necessary to have the City Manager or his/her designee to conduct higher level
meetings with key City staff, Consultants, and the Cannabis Industry stakeholders. These
meetings may be individually or scheduled meetings with staff and/or Cannabis Industry
representatives. It may also include research and policy discussion with elected officials
as requested. Furthermore, this establishes the need for staff to seek continued
education on cannabis regulations, and industry best practices to ensure that the best
practices are being adhered to for the oversight of the program.
• Non-Qualified Sales Program – The primary objective of a Non-Qualified Sales Program
is to test and evaluate the level of compliance with regards to the business’s sales activity.
Non-Qualified Sales are defined as any sales transactions that are conducted in violation
of State and/or local law. This could be in the form of illegal sales of cannabis products or
sales to underaged minors.
In general Cannabis Business Permit fees will vary depending on the level of oversight of the
business operations and individual City goals for cost recovery. We have found the range of
regulatory permit fees statewide to be from $143,000-$8,200 and in most cases larger markets
having higher fees to address more complexities more commonly impacting larger cities. Chart
#2 below illustrates some of the more mature agencies which allow cannabis retail permits.
Chart #2
Agency Annual Permit Fee
San Jose $143,333
Redwood City $29,530
Vista $28,001
Placerville $22,841
Modesto $21,740
Sacramento $20,800
Grover Beach $20,000
Oakland $15,151
Salinas $9,854
Vallejo $8,288
San Luis Obispo $39,634*
Average Annual Permit Fee $31,954
*Proposed fee
In conclusion, in comparing the selected agencies annual regulatory permit fees the proposed
fee would reflect that it is consistent with the average of all those noted in Chart #2. Furthermore,
should the City choose to utilize this fee we recommend that a re-evaluation of these cost be
conducted again in two years or if significantly more businesses join the CMP. This would provide
the City the opportunity to determine future impacts to staff and any unforeseen issues related
to changes in regulations or policy decisions to manage the program.
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ORDINANCE NO. _____ (2021 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING TITLE 9 (PUBLIC PEACE,
MORALS AND WELFARE), CHAPTER 9.10 (CANNABIS
REGULATIONS) AND TITLE 5 (LICENSES, PERMITS AND
REGULATIONS), CHAPTER 5.10 (CANNABIS BUSINESS TAX) TO
ESTABLISH UNIFORM PERMIT RENEWAL REQUIREMENTS
WHEREAS, the City of San Luis Obispo adopted on ________________________, 2021,
at a public hearing conducted via teleconference, an amendment to the Municipal Code, Chapter
9.10, Regulations for Commercial Cannabis and Personal Cultivation and an amendment to the
Municipal Code, Chapter 5.10, Cannabis Business Tax; and
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Section 9.10.080, subsection A of the San Luis Obispo Municipal Code is
hereby amended as reflected in Exhibit A to read as follows:
A. Renewal Application Filing Deadline. An application for renewal of a commercial
cannabis operator permit shall be filed at least sixty calendar days, but not more than
one hundred twenty calendar days, prior to the expiration date of the permit with the
city manager or his/her designee. All commercial cannabis operator permits shall have
an expiration date of June 30th of each year. If the complete application and fees are
timely submitted but the city does not act to approve or reject the renewal prior to
expiration, the permittee may continue to operate under the expired permit until the city
approves or rejects the application for renewal.
SECTION 2. Section 5.10.045, subsection A of the San Luis Obispo Municipal Code is
hereby amended as reflected in Exhibit B to read as follows:
A. All persons engaging in a cannabis business, whether an existing, newly established or
acquired business, shall register with the tax administrator’s office by the later of:
1. Thirty days after commencing operation; or
2. January 1, 2019 and shall renew registration annually thereafter by July 1st of each
year, with any such renewal becoming delinquent on July 31st of each year.
3. The Tax Administrator is authorized to prorate existing, newly established, or
acquired business registration fees consistent with the intent of this Chapter and as
otherwise required by applicable law. Nothing herein is intended, nor shall it be
interpreted or applied to increase any tax in excess of the rate approved by the voters
of the City of San Luis Obispo and the Tax Administrator shall ensure that no
application of the provisions herein are so applied.
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SECTION 3. SECTION 3. Ordinance Number 1673 (2019 Series) and Ordinance
Number 1659 (2018 Series) are hereby superseded to the extent inconsistent herewith.
SECTION 4. Severability. If any subdivision, paragraph, sentence, clause, or phrase of
this Ordinance is, for any reason, held to be invalid or unenforceable by a court of competent
jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the
remaining portions of this Ordinance, or any other provisions of the city' s rules and regulations.
It is the city' s express intent that each remaining portion would have been adopted irrespective of
the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared
invalid or unenforceable.
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SECTION 5. A summary of this ordinance, together with the names of Council Members
voting for and against, shall be published at least five (5) days prior to its final passage, in The
New Times, a newspaper published and circulated in this City. This Ordinance shall go into effect
at the expiration of thirty (30) days after its final passage.
INTRODUCED on the ____ day of ___________, 2021, AND FINALLY ADOPTED
by the Council of the City of San Luis Obispo on the ____ day of _____________, 2021, 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, on ___________________________.
______________________________
Teresa Purrington
City Clerk
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Exhibit A
Chapter 9.10 Cannabis Regulations
9.10.010 Purpose and Intent
9.10.020 Definitions
9.10.030 Personal Cultivation Limited
9.10.040 Commercial Cannabis/City Permit and State License Required
9.10.050 Regulations and Fees
9.10.060 Display and Production of Permits
9.10.070 Commercial Cannabis Operator Permit Application Procedures and Requirements
9.10.080 Renewal of Permit
9.10.090 Suspension or Revocation of Permit
9.10.100 Appeal
9.10.110 Right to Occupy and Use Property for Commercial Cannabis Activity
9.10.120 Prohibition on Transfer of Commercial Cannabis Operator Permits
9.10.130 Records and Reporting
9.10.140 Inspection and Enforcement
9.10.150 Outdoor Commercial Cannabis Cultivation and Activities Prohibited
9.10.160 Indemnification, Insurance, Reimbursement, Consent
9.10.170 Compliance with Laws
9.10.180 Permit Violation
9.10.190 Permit Compliance Monitoring
9.10.200 Permit Holder Responsible for Violations by Employees or Agents
9.10.210 Consumption or Use Prohibited On-site and In Public
9.10.220 Concurrent Alcohol Sales or Service Prohibited
9.10.230 Minors
9.10.240 Sale of Cannabis, Cannabis Products or Cannabis Accessories by Vending Machine
prohibited
9.10.250 Security Measures
9.10.260 Limitations on City’s Liability
9.10.270 Fees Deemed Debt to City
9.10.280 Violation and Penalties
9.10.290 Severability
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9.10.010 Purpose and intent.
A. It is the primary purpose and intent of this chapter to protect the health, safety, and welfare
of the residents of the city of San Luis Obispo from the negative impacts of illegal
commercial and noncommercial cannabis activity, and of state authorized cannabis
activity, by enforcing city ordinances, rules and regulations consistent with applicable state
law, including, but not limited to, the Compassionate Use Act, the Medical Marijuana
Program Act, the Adult Use of Marijuana Act, and the Medicinal and Adult Use of
Cannabis Regulatory and Safety Act.
B. This chapter is not intended to, and shall not be construed to, prohibit or interfere with any
right, defense or immunity under Health and Safety Code Section 11362.5 (the
Compassionate Use Act), or under Health and Safety Code Section 11362.7 et seq. (the
Medical Marijuana Program Act).
C. This chapter is not intended to, and shall not be construed to, prohibit or interfere with any
right, defense or immunity of any person twenty-one years of age or older relating to the
adult personal possession or cultivation of cannabis or marijuana consistent with the
provisions of the Control, Regulate and Tax Adult Use of Marijuana Act and the Medicinal
and Adult Use of Cannabis Regulatory and Safety Act.
D. Nothing in this chapter shall be construed to authorize the cultivation, possession or use of
marijuana for any purpose inconsistent with state or local law.
E. Any reference to California statutes includes any regulations promulgated thereunder and
is deemed to include any successor or amended version of the referenced statute or
regulation. (Ord. 1647 § 4 (Exh. A (part)), 2018)
9.10.020 Definitions.
A. State-Defined Terms. Words or terms used in this chapter that are defined words or ter ms
in Business and Professions Code Section 26001 or Health and Safety Code Section
11362.7 (the “Statutes”) shall have the meanings ascribed to them in the Statutes as they
now read, or as they may be amended to read. These state- defined words and terms include,
but are not limited to, “cannabis,” “cannabis accessories,” “cannabis concentrate,”
“cannabis products,” “commercial cannabis activity,” “cultivation,” “delivery,”
“distribution,” “license,” “live plants,” “manufacture,” “operation,” “person,” “premises,”
“sell,” “sale,” “to sell.” Some of these terms are also set forth in Chapter 17.156. In the
event of conflict in the definitions, the definitions in Chapter 17.156 shall control;
provided the terms defined in subsection B of this section shall control over any other
definition.
B. City-Defined Terms. The following words or terms used in this chapter have the following
meanings:
1. “Commercial cannabis business” means any person or entity engaging in any business,
operation or activity which is commercial cannabis activity under state law in the city.
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2. “Commercial cannabis operator permit” means a permit required by the city of San
Luis Obispo pursuant to this chapter to conduct commercial cannabis activity or a
commercial cannabis business in the city.
3. “Responsible party(ies)” shall be one or more individuals who have an ownership
interest in a commercial cannabis activity and are designated to be personally
responsible for compliance with all terms and conditions of the commercial cannabis
operator permit, all other permits required by the city, and all ordinances and
regulations of the city. Any person having an ownership interest of more than fifty
percent in a commercial cannabis activity shall be designated a responsible party on the
application. If no individual owns more than fifty percent of a commercial cannabis
activity, the individual owning the largest share shall be a responsible party, and if
multiple individuals have the same percentage interest, each one shall be a responsible
party. More than one individual can be designated a responsible party.
4. “Cannabis event” means a public or private event where compensation is provided or
exchanged, either directly or indirectly or as part of an admission or other fee for
service, for the provision, hosting, promotion or conduct of the event where
consumption of cannabis is part of the activities. (Ord. 1647 § 4 (Exh. A (part)), 2018)
9.10.030 Personal cultivation limited.
A. Maximum Six Plants Outdoors per Parcel. It shall be unlawful for any person to plant,
cultivate, harvest, dry, process, maintain, possess or store outdoors, more than six live
cannabis plants on any parcel containing one or more private residences. This limitation on
outdoor personal cannabis activities applies per parcel, regardless of the number of
residents in each private residence, and regardless of the number of residences on the
parcel. This limitation applies to cannabis live plants for either adult recreational use or
medicinal purposes. Outdoor personal cultivation shall comply with applicable provisions
of Section 17.86.080.
B. Maximum Six Plants per Private Residence, Indoors and Outdoors. It shall be unlawful for
the cumulative total of cannabis plants per private residence, indoors and outdoors, to
exceed six cannabis live plants, regardless of number of persons residing in the private
residence. This limitation applies to cannabis live plants for either adult recreational use or
medicinal purposes. Any live cannabis plants grown indoors shall comply with applicable
provisions of Section 17.86.080.
C. No Outdoor Cultivation on Parcel without Private Residence. It shall be unlawful for any
person to plant, cultivate, harvest, dry, process, maintain, possess or store any cannabis live
plants outdoors on a parcel that does not have a private residence used for residential
dwelling purposes by the person cultivating the cannabis live plants.
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D. Neighborhood Impacts of Personal Cultivation. There shall be no exterior evidence of
cannabis cultivation occurring at the property visible by normal unaided vision from a
public place or the public right-of-way and any outdoor cultivation shall comply with
provisions of Section 17.86.080(D). Personal cultivation of cannabis, for recreational adult
use or for medicinal purposes, shall not create odors, dust, heat, noise, light, glare, smoke
or other impacts to people of normal sensitivity living, working or lawfully present in the
vicinity of the personal cultivation site. Impacts that cross the nearest property line of any
other parcel, beyond that parcel on which the personal cultivation is conducted, or that are
visible or noticeable with normal unaided vision, from a public place or the public right-
of-way, or from any separately owned, leased or controlled private residence or business
on the same parcel as the private residence responsible for the personal cultivation, are
unlawful.
E. No Hazardous Personal Cultivation. Personal cultivation, harvesting, drying, or processing
of cannabis, for recreational adult use or medicinal purposes, that uses or stores hazardous
or toxic chemicals or materials, creates hazardous or toxic products or wastes, or uses
volatile processes or other methods or substances that pose a significant risk to public
health or safety, is prohibited and unlawful. (Ord. 1647 § 4 (Exh. A (part)), 2018)
9.10.040 Commercial cannabis/city permit and state license required.
A. City Commercial Cannabis Operator Permit Required. No person shall engage in
commercial cannabis activity or have an ownership interest in, operate, or manage a
commercial cannabis business without obtaining and continuously maintaining a
commercial cannabis operator permit pursuant to this chapter.
B. Commercial Cannabis Operator Permit and State License(s) Required. It shall be unlawful
for any person to own, conduct, manage, operate, engage, or participate in, or work or
volunteer at a commercial cannabis activity or commercial cannabis business that does not
have a valid commercial cannabis operator permit issued pursuant to this chapter and other
city permits or licenses required by this code, in addition to the appropriate license(s)
required by state law to conduct the commercial cannabis activity. Any commercial
cannabis business or commercial cannabis activity conducted without all required city and
state permits and licenses is prohibited and unlawful and is hereby declared to be a public
nuisance. (Ord. 1647 § 4 (Exh. A (part)), 2018)
9.10.050 Regulations and fees.
The city council shall by resolution or ordinance adopt such forms, fees, regulations, and
procedures as are necessary to implement this chapter with respect to the application and
qualification for, and the selection, future selection, investigation, process, issuance, renewal,
revocation, and suspension of, commercial cannabis operator permits. (Ord. 1647 § 4 (Exh. A
(part)), 2018)
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9.10.060 Display and production of permits.
A. Dual Permits Posted and Visible. A copy of the commercial cannabis operator permit
issued by the city of San Luis Obispo pursuant to this chapter, together with a copy of the
appropriate state license(s) for the commercial cannabis activity being conducted, shall be
posted and readily visible to the public at all times, at each location where commercial
cannabis activity occurs.
B. Production of Originals for Inspection. Any owner, operator, employee or person in charge
of a commercial cannabis activity shall produce for inspection and copying, upon request
of a city inspector, code enforcement officer, or city police officer during normal operating
hours, the original of the current and valid city of San Luis Obispo commercial cannabis
operator permit and the appropriate, current and valid license(s) of the state of California
for the commercial cannabis activity(ies) or commercial cannabis business(es) being
conducted. (Ord. 1647 § 4 (Exh. A (part)), 2018)
9.10.070 Commercial cannabis operator permit application procedures and
requirements.
A. Application. A person shall apply for a commercial cannabis operator permit by submitting
an application to the city during the annual application period or any other period
established by the city manager. The city council will, by resolution, adopt criteria by
which all applications will be reviewed, applicants qualified and, in the case of retail and
cultivation businesses, also ranked. Those applicants that are selected will have the
opportunity to apply for a use permit as outlined in Section 17.86.080. Each application
shall designate at least one responsible party. If a person is not selected to receive a
commercial cannabis operator permit, the person may reapply during the next annual
application period or any subsequent application period established by the city manager.
B. Application Submittal Time Frame. A person may only submit one application per permit
type, per application period, for a commercial cannabis operator permit, during the annual
application period designated by resolution of the city council or any subsequent
application period established by the city manager. An applicant who is unsuccessful in
any application period may submit another application in any subsequent application
period. The commercial cannabis operator permit will be valid for twelve months. Once a
permit is obtained, the applicant can apply annually for renewal. There is no guarantee that
an applicant will receive a commercial cannabis operator permit in the first instance. Due
to limitations on the number of certain permits, even a highly ranked applicant for a retail
or cultivation permit may not receive a commercial cannabis operator permit and even an
applicant who receives a commercial cannabis operator permit is not guaranteed that any
subsequent, required land use permit, as outlined in Section17.86.080, will be approved.
C. Grounds for Automatic Disqualification. In addition to any other reason that may be
established by the city council as a basis for disqualification, an applicant shall be
disqualified from applying for, or obtaining, a commercial cannabis operator permit if:
1. The applicant fails to timely file an application during the annual application period.
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2. The responsible party refuses to sign the application and agree to be personally
responsible for compliance, and personally liable for failure to comply, with the
provisions of this chapter.
3. The applicant, or any of its officers, directors or owners, or any person listed in the
application, has been convicted of a felony or offense referenced in Business and
Professions Code Section 26057; or has been subject to fines, penalties, or sanctions
for cultivation or production of a controlled substance on public or private lands or for
unauthorized commercial cannabis activities as specified in Business and Professions
Code Section 26057; or has had a commercial cannabis license suspended or revoked
by the state of California or any city or county in any state, within the three years
preceding the date the application is filed, or is ineligible to apply for a state cannabis
license. No person who has been convicted of such a felony or offense, or subject to
such fines, penalties, sanctions, suspension or revocation, may be engaged (actively or
passively) in the operation, management or ownership of any commercial cannabis
business. A conviction within the meaning of this chapter means a plea or verdict of
guilty or a conviction or diversion following a plea of nolo contendere.
4. The applicant made one or more false or misleading statements or omissions in the
application process.
5. Any person listed on the application is a licensed physician making patient
recommendations for medical or medicinal cannabis pursuant to state law.
6. Any person listed in the application is less than twenty-one years of age.
D. Duration and Activation of Permit. Each commercial cannabis operator permit issued
pursuant to this chapter shall expire twelve months after the date of its activation. The
permittee may apply for renewal prior to expiration in accordance with this chapter. Each
commercial cannabis operator permit must be activated within twelve months of issuance.
The permit is activated by the issuance of a use permit for the commercial cannabis activity
pursuant to Section 17.86.080, together with all other applicable city permits and state
licenses, and the commercial cannabis operator thereafter opening and continuously
operating the commercial cannabis activity. Failure to timely activate the permit shall be
deemed abandonment of the permit and the permit shall automatically lapse. (Ord. 1673
§§ 1, 2 (Exh. A), 2020; Ord. 1647 § 4 (Exh. A (part)), 2018)
9.10.080 Renewal of permit.
A. Renewal Application Filing Deadline. An application for renewal of a commercial
cannabis operator permit shall be filed at least sixty calendar days, but not more than one
hundred twenty calendar days, prior to the expiration date of the permit with the city
manager or his/her designee. All commercial cannabis operator permits shall have an
expiration date of June 30th of each year. If the complete application and fees are timely
submitted but the city does not act to approve or reject the renewal prior to expiration, the
permittee may continue to operate under the expired permit until the city approves or
rejects the application for renewal.
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B. Rejection of Renewal Application. An application for renewal of a commercial cannabis
operator permit shall be rejected if any of the following exists:
1. The commercial cannabis operator permit is revoked at the time of the application or
renewal.
2. The applicant conducted unpermitted commercial cannabis activities in the city or
continued to conduct formerly permitted commercial cannabis activities after
expiration of the permit, other than as expressly permitted by this section.
3. Any of the grounds for disqualification for prequalification set forth in Section
9.10.070(C), or as established by the city council, exist at the time of application for
renewal, or the date of renewal.
4. The permittee fails to renew any required state of California license(s), or the state
revokes or suspends the license. Revocation, termination, nonissuance or suspension
of a license issued by the state of California, or any of its departments or divisions,
shall immediately, concurrently revoke, terminate, or suspend, respectively, the
commercial cannabis operator permit. Such automatic suspension makes it illegal for a
commercial cannabis business or activity to operate within the city of San Luis Obispo
until the state of California, or its respective department or division, reinstates or issues
the state license.
An application for renewal of a commercial cannabis operator permit may be denied if any
of the following exists:
1. The application is filed less than sixty days before expiration.
2. The applicant has received an administrative citation for violating any provision of this
code relating to its commercial cannabis activity(ies) in the city during the last twelve
months, and the administrative citation has not been resolved in the applicant’s favor
by the date of application for renewal. A pending, unresolved appeal of an
administrative citation shall not result in rejection of an otherwise timely and complete
application, but resolution of an appeal in a manner that upholds the violation against
the applicant during the application review period shall result in the immediate
rejection of the application.
3. The commercial cannabis business has not been in regular and continuous operation in
the three months immediately prior to the renewal application.
4. The commercial cannabis business fails to conform to the requirements of this chapter,
any regulations adopted pursuant to this chapter, or the conditions imposed as part of
any use permit or zoning requirements under Section 17.86.080.
5. The commercial cannabis operator permit is suspended at the time of application or
renewal.
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C. Effect of Rejection of Application for Renewal—Operations to Cease Pending Appeals. If
a renewal application is rejected, the commercial cannabis operator permit expires on the
expiration date set forth in the permit, even if an appeal has been filed. All commercial
cannabis activities in the city under the expired permit must stop until all appeals have been
exhausted. A person or entity whose renewal application is rejected, and who loses
his/her/its appeal, must go through the annual commercial cannabis business operator
permit application process. (Ord. 1647 § 4 (Exh. A (part)), 2018)
9.10.090 Suspension or revocation of permit.
In addition to any other penalty authorized by law, a commercial cannabis operator permit may be
suspended or revoked if the city finds, after notice to the permittee and opportunity to be heard,
that the permittee or his or her agents or employees have violated any condition of the permit
imposed pursuant to, or any provision of, this chapter.
1. Upon a finding by the city of a first permit violation within any five-year period, the permit
shall be suspended for thirty days.
2. Upon a finding by the city of a second permit violation within any five-year period, the
permit shall be suspended for ninety days.
3. Upon a finding by the city of a third permit violation within any five-year period, the permit
shall be revoked. (Ord. 1647 § 4 (Exh. A (part)), 2018)
9.10.100.1 Appeal.
A. Qualification—Ranking of Retailers and Cultivators. A decision of the city to not qualify
an applicant for a commercial cannabis operator permit, or to rank applicants for retail or
cultivation licenses, or to allow applicants with the highest rankings the first opportunity
to apply for a commercial cannabis operator permit, shall be the final action of the city and
not appealable.
B. Nonrenewal, Revocation or Suspension. A decision of the city to reject an application for
renewal, or to revoke or suspend a commercial cannabis operator permit, is appealable to
the city manager. An appeal must be filed with the city manager within ten working days
after the renewal has been denied, suspended or revoked. A decision of the city manager
or his or her designee is appealable to the city council in accordance with Chapter 1.20
C. Effect of Suspension. During a period of license suspension, the commercial cannabis
business shall remove from public view all cannabis and cannabis products and shall not
conduct any commercial cannabis activity.
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D. Revocation—Notice to State. Pursuant to Business and Professions Code Section 26200(c),
the city manager or his or her designee shall promptly notify the Bureau of Cannabis
Control within the Department of Consumer Affairs upon the city’s revocation of any local
license, permit, or authorization for a state licensee to engage in commercial cannabis
activity within the city. (Ord. 1647 § 4 (Exh. A (part)), 2018)
9.10.110 Right to occupy and to use property for commercial cannabis activity.
As a condition precedent to the city’s issuance of a commercial cannabis operator permit pursuant
to this chapter, any person intending to open and operate a commercial cannabis business shall
provide evidence satisfactory to the city of the applicant’s legal right to occupy and use the
proposed location for the proposed use, together with the approval of a use permit from the city
for cannabis activity at the location. In the event the proposed location is owned by or to be leased
from another person, the applicant for a permit under this chapter shall provide a signed and
notarized statement from the property owner agreeing to the operation of a commercial cannabis
business on the property. (Ord. 1647 § 4 (Exh. A (part)), 2018)
9.10.120 Prohibition on transfer of commercial cannabis operator permits.
A. Business Restriction to Location on Permit. It shall be unlawful for any person to transfer
a commercial cannabis operator permit to a location not specified on the permit, or to
operate a commercial cannabis business at any place or location other than that identified
on the commercial cannabis operator permit issued pursuant to this chapter.
B. Transfer or Assignment Prohibited. No person or entity shall encumber, mortgage, lien,
hypothecate, give, bequeath, sell, assign or transfer, by operation of law or otherwise, any
portion of the ownership or control of a commercial cannabis business or a commercial
cannabis operator permit to any person who does not have a commercial cannabis operator
permit from the city prior to the effective date of any action described in this sentence. The
commercial cannabis operator permittee proposing such an action shall:
1. Notify the city in writing of the proposed action, comply with applicable regulations
and provide such information as the city reasonably requests regarding the identity and
qualifications of the persons involved, and pay all applicable fees and charges; and
2. Provide proof that the proposed lender, lienholder, recipient, heir, buyer, assignee,
transferee, or other potential recipient of any portion of the ownership or control, at the
time of the notice and effective date of the proposed action, is qualified by the city to
apply for a commercial cannabis operator permit; and the proposed action is
conditioned on the city issuing to the person a new or amended commercial cannabis
operator permit.
3. Notify the city in writing within ten calendar days of the action becoming final with
the names and contact information of the new persons involved, together with a request
that the city issue either a new or amended commercial cannabis operator permit, as
applicable.
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C. Assignment Null and Void. Any attempt to transfer, sell, assign, give, or lien, or any
transfer, sale, assignment, gift or lien, of a commercial cannabis operator permit issued
pursuant to this chapter, by operation of law or otherwise, in violation of this chapter, is
prohibited. Any such action immediately voids, nullifies and terminates the commercial
cannabis operator permit, which shall be of no further force or effect. (Ord. 1647 § 4 (Exh.
A (part)), 2018)
9.10.130 Records and reports.
A. City Access to Records. Subject to the Health Insurance Portability and Accountability Act
(HIPAA) regulations, each commercial cannabis business shall allow city of San Luis
Obispo officials to have access to the commercial cannabis business’s books, records,
accounts, and any and all data relevant to its permitted activities for the purpose of
conducting an audit, examination or inspection. Books, records, accounts, and any and all
relevant data will be produced no later than twenty-four hours after receipt of the city’s
request or within a reasonable time as authorized in writing by the city.
B. Annual Audit. Each commercial cannabis business shall file with the city manager or
his/her designee an audit of its financial operations for the previous fiscal year, complete
and certified by an independent certified public accountant in accordance with generally
accepted auditing and accounting principles. The audit shall include but not be limited to a
discussion, analysis, and verification of each of the records required to be maintained
pursuant to this chapter. The information contained in the audit shall be made available in
standard electronic format which shall be compatible with programs and software used by
the city, and which can easily be imported into either Excel, Access or any other
contemporary software designated by the city manager.
C. Inventory Control System. All commercial cannabis businesses shall maintain an inventory
control and reporting system that accurately documents the present location, amounts, and
descriptions of all cannabis and cannabis products for all stages of the growing and
production or manufacturing, laboratory testing and distribution processes until sold or
distributed. All commercial cannabis businesses shall maintain records of all sales or
transfers of cannabis and cannabis products.
D. Employee Registry. Each owner and/or operator of a commercial cannabis business shall
maintain a current register of the names and the contact information (including the name,
address, and telephone number) of all employees currently employed by the commercial
cannabis business and shall disclose such register to any city of San Luis Obispo official
upon request.
E. Reporting and Tracking of Product and of Gross Sales. Each commercial cannabis business
shall have in place a point-of-sale tracking system to track and to report on all aspects of
the commercial cannabis business including, but not limited to, such matters as cannabis
tracking, inventory data, and gross sales (by weight and by sale) and shall ensure that such
information is compatible with the city’s recordkeeping systems. The system must have
the capability to produce historical transactional data for review by the city of San Luis
Obispo. All information provided to the city pursuant to this subsection shall be
confidential and shall not be disclosed, except as may otherwise be required under law.
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F. Maintenance of Records. All records required by this chapter shall be maintained by the
commercial cannabis business for a period of not less than seven years and shall otherwise
keep accurate records of all commercial cannabis business activity and provide such
records for inspection consistent with this code or any rules the city council may adopt by
resolution or ordinance. (Ord. 1647 § 4 (Exh. A (part)), 2018)
9.10.140 Inspection and enforcement.
A. Unscheduled Inspection during Business Hours. The city manager or his/her designee and
any other city of San Luis Obispo official or inspector charged with enforcing any
provisions of this code may enter a commercial cannabis business at any time during the
hours of operation without notice for the purpose of inspecting the commercial cannabis
business for compliance with the provisions of this code, the terms and conditions of the
commercial cannabis operator permit or any other city permit or state license, including
inspection of the recordings and records maintained pursuant to this chapter or the
applicable provisions of state law. The right to inspect under this section includes the right
to copy recordings and records.
B. Interference with Inspection. It is unlawful for any person who owns, operates, manages or
is employed by, or has any responsibility over the operation of, a commercial cannabis
business to refuse to allow, or to impede, obstruct, or interfere with, an inspection by the
city, or the city’s review or copying of recordings (including audio and video recordings)
and records, or to conceal, destroy, alter or falsify any recordings or records.
C. Obtaining Samples. The city manager or his/her designee or any other person charged with
enforcing the provisions of this chapter may enter the location of a commercial cannabis
business at any time during the hours of operation and without notice to obtain samples of
cannabis and cannabis products to test for law enforcement and/or public safety purposes.
Any samples obtained by the city of San Luis Obispo shall be logged, recorded, and
maintained in accordance with city of San Luis Obispo police department standards for
evidence. At all other times, the city manager or his/her designee may enter the location of
a commercial cannabis business to obtain samples of cannabis upon reasonable notice, as
otherwise authorized by law or pursuant to a warrant. (Ord. 1647§ 4 (Exh. A (part)), 2018)
9.10.150 Outdoor commercial cannabis cultivation and activities prohibited.
A. Outdoor Commercial Cultivation Prohibited. Outdoor commercial cannabis cultivation,
including, but not limited to, cultivation in greenhouses, hoop structures, and by mixed
light (part daylight/part artificial light), is prohibited and unlawful. This section prohibits
all outdoor commercial cannabis cultivation, including cultivation for profit or not-for-
profit cultivation, and including commercial cultivation for adult recreational use or
medicinal purposes. For purposes of this section, outdoor cultivation of cannabis by
cooperatives is prohibited. All commercial cannabis cultivation shall be conducted only
inside a fully enclosed structure by a person or entity with a commercial cannabis operator
permit, a city use permit, and appropriate state license(s). See also Section
17.86.080(E)(7)(c).
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B. Outdoor Commercial Cannabis Activities Prohibited. Outdoor storage, harvesting, drying,
processing, or manufacturing of commercial cannabis or cannabis products is prohibited
and unlawful. (Ord. 1647 § 4 (Exh. A (part)), 2018)
9.10.160 Indemnification, insurance, reimbursement, consent.
As a condition of approval of any commercial cannabis operator permit issued pursuant to this
chapter, the permittee shall, at a minimum:
A. Execute an agreement to protect, indemnify, defend (at its sole cost and expense with
counsel approved by city), and hold the city of San Luis Obispo and its officers, employees,
attorneys, representatives, and agents harmless from and against any and all claims,
demands, losses, damages, injuries, costs, expenses (including attorneys’ fees), fines,
penalties, or liabilities arising from, related to or associated with: the issuance of a
commercial cannabis operator permit or use permit; the permitting or approving the
operation of a commercial cannabis activity; the collection of any fees, taxes, or charges
from a commercial cannabis business; the commercial cannabis business’s or any of its
owners’, operators’, managers’, employees’, or agents’ violation of any federal, state or
local laws; the city’s suspension, revocation or refusal to renew the commercial cannabis
operator permit.
B. Maintain insurance with standard city coverages and limits, but with additional conditions
thereon as deemed necessary by the city attorney.
C. Reimburse the city of San Luis Obispo for any and all costs, expenses, attorney fees, fines,
penalties and court costs that the city of San Luis Obispo may be required to pay as a result
of any legal challenge related to the city’s approval of a commercial cannabis operator
permit pursuant to this chapter or any other city permit or the city of San Luis Obispo’s
approval of the operation of a commercial cannabis activity. The city of San Luis Obispo
may, at its sole discretion, participate at its own expense in the defense of any such action,
but such participation shall not relieve the obligations imposed under this chapter.
D. Consent to unscheduled inspections, production of records and recordings, and obtaining
of samples of cannabis and cannabis products by authorized city officials during normal
operating hours as provided in this chapter. (Ord. 1647 § 4 (Exh. A (part)), 2018)
9.10.170 Compliance with laws.
The commercial cannabis business shall operate all times in compliance with all applicable state
and local laws, regulations, and any specific, additional operating procedures or requirements
which may be imposed as conditions of approval of the commercial cannabis operator permit or
use permit or state license(s). Nothing in this chapter shall be construed as authorizing any action
which violates state law or local law with respect to the operation of a commercial cannabis
activity. (Ord. 1647 § 4 (Exh. A (part)), 2018)
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9.10.180 Permit violation.
Compliance with all local and state cannabis-related laws shall be a condition of a city commercial
cannabis operator permit and it shall be a violation of a commercial cannabis operator permit for
a permittee or his or her agents or employees to violate any local or state cannabis-related law.
(Ord. 1647 § 4 (Exh. A (part)), 2018)
9.10.190 Permit compliance monitoring.
Compliance with this chapter shall be monitored by the San Luis Obispo police department, code
enforcement staff and/or any other duly authorized agent of the city. Any compliance checks
pursuant to this chapter shall be in addition to any under any other ordinances, regulations or
permits. At least four compliance checks of each cannabis retailer shall be conducted during each
twelve-month period. At least two compliance checks of each commercial cannabis business other
than a retailer shall be conducted during each twelve-month period. The cost of compliance
monitoring shall be incorporated into the annual renewal fee. (Ord. 1647 § 4 (Exh. A (part)), 2018)
9.10.200 Permit holder responsible for violations by employees or agents.
The responsible person and any entity to whom a commercial cannabis operator permit is issued
pursuant to this chapter shall be responsible for all violations of the regulations and ordinances of
the city of San Luis Obispo committed by the permittee or any employee or agent of the permittee,
which violations occur in or about the premises of the commercial cannabis business, even if the
responsible person is not present. Violations by an employee or agent may result in the termination
or nonrenewal of the permit by the city. (Ord. 1647 § 4 (Exh. A (part)), 2018 )
9.10.210 Consumption or use prohibited on site and in public—Cannabis event
prohibited.
A. It is unlawful for any person or entity:
1. To sell, give, exchange, dispense or distribute cannabis or cannabis products for on-site
consumption, use or sampling on any business premises; or
2. To consume or use cannabis or cannabis products, whether by smoking, vaping,
inhaling, eating, drinking or any other means:
a) In, on or about the premises of any commercial cannabis business;
b) In, on or about any publicly owned or operated property; any place open to or
accessible by the public; any place smoking is prohibited; or any place visible from
any public place with normal unaided vision;
c) In on or about any other business, club, cooperative or commercial event, regardless
if open to the public or only to members, ticket holders or event invitees;
d) Any location where an entry or other fee is charged to attendees or to the host or
where a thing of value or consideration is received or exchanged, directly or
indirectly, for or related to the provision of cannabis.
B. It is unlawful for any person to conduct a cannabis event in the city. (Ord. 1647 § 4 (Exh.
A (part)), 2018)
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9.10.220 Concurrent alcohol or tobacco sales or service prohibited.
A. No person shall dispense, serve, store, give away or consume, or cause or permit the sale,
dispensing, serving, giving away or consumption of alcoholic beverages or tobacco in or
on the premises of a commercial cannabis business.
B. No person shall conduct any commercial cannabis activity at any location where alcohol is
sold or served. (Ord. 1647 § 4 (Exh. A (part)), 2018)
9.10.230 Minors.
A. Minors shall not be allowed on the premises of a commercial cannabis business having
either an “A” or “M” license, or both, even if accompanied by a parent or guardian.
B. No person under twenty-one years of age shall be allowed on the premises of a commercial
cannabis business having either an “A” or “M” license or both.
C. Every entrance to an “A” or “M” licensed commercial cannabis business shall be clearly
and legibly posted with the following notice: “ENTRY ONTO THESE PREMISES BY
PERSONS UNDER 21 YEARS OF AGE IS PROHIBITED BY LAW. VALID PHOTO
ID REQUIRED.” Each letter of the notice must be at least two inches high and clearly
visible.
D. No person, business, or other entity conducting a commercial cannabis activity with either
an “A” or “M” state license shall employ any person who is not at least twenty-one years
of age. (Ord. 1647 § 4 (Exh. A (part)), 2018)
9.10.240 Sale of cannabis products or cannabis accessories by vending machine
prohibited.
A. No person shall locate, install, keep, maintain, or use, or permit the location, installation,
keeping, maintenance or use on his, her or its premises of, any cannabis vending machine
used or intended to be used for the purpose of selling any cannabis products or cannabis
accessories therefrom.
B. No person, business, or other entity shall sell, offer for sale, or display for sale any cannabis
product by means of a self-service display or vending machine. All cannabis products shall
be offered for sale exclusively by means of vendor/employee assistance.
C. “Vending machine” means any electronic or mechanical device or appliance the operation
of which depends upon the insertion of money, whether in coin or paper bill, or debit or
credit card, or other thing representative of value, which device or appliance dispenses or
releases cannabis, cannabis product(s) and/or cannabis accessories. (Ord. 1647 § 4 (Exh.
A (part)), 2018)
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9.10.250 Security and public safety measures.
A. The city manager or his/her designee(s) is authorized to promulgate all regulations necessary
to implement the requirements and fulfill the purposes and policies of this chapter, including
but not limited to enforcement, background checks for applicants, approval and enforcement
of a commercial cannabis activity security plan, including audio and video recordings of
operations, and verification of compliance.
B. Every commercial cannabis activity shall have a security plan approved by the chief of police
or designee prior to issuance of a city commercial cannabis operator permit.
C. Hours of Operation.
a) Retail Storefront. Retail storefront commercial cannabis business shall not operate
between the hours of eight p.m. and nine a.m.
b) Retail Non-Storefront (Delivery Services). Retail non-storefront (delivery services)
commercial cannabis business shall not operate between the hours of ten p.m. and six
a.m.
c) Commercial Other than Retail. All commercial cannabis activity other than retail is
prohibited between the hours of ten p.m. and seven a.m. (Ord. 1647 § 4 (Exh. A (part)),
2018)
9.10.260 Limitations on city’s liability.
The city shall not be liable for issuing, or failing or refusing to issue, suspending, revoking or failing
to renew a commercial cannabis operator permit pursuant to this chapter or otherwise approving or
disapproving the operation of any commercial cannabis business pursuant to this chapter. (Ord. 1647
§ 4 (Exh. A (part)), 2018)
9.10.270 Fees deemed debt to city.
The amount of any fee, cost or charge imposed pursuant to this chapter shall be deemed a debt to
the city of San Luis Obispo that is recoverable in any court of competent jurisdiction. (Ord. 1647 §
4 (Exh. A (part)), 2018)
9.10.280 Violation and penalties.
A. Misdemeanor. Each violation of the provisions of this chapter shall be a misdemeanor and is
punishable as provided in Section 1.12.030; provided, that where the city attorney determines
that such action would be in the interest of justice, he/she may specify in the accusatory
pleading that the offense shall be an infraction. Any violation of the provisions of this chapter
by any person is also subject to administrative fines as provided in Chapter 1.24.
B. Infraction Violation. Where the city attorney determines that, in the interest of justice, a
violation of this chapter is an infraction, such infraction is punishable by a fine not exceeding
one hundred dollars for a first violation, a fine not exceeding two hundred dollars for a second
violation of the same provision within one year, and a fine not exceeding five hundred dollars
for each additional infraction violation of the same provision within one year.
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C. The fine amounts set forth above may be modified, from time to time, by city council
resolution. In no event shall such fine amounts exceed the amounts authorized by state law.
D. If the city of San Luis Obispo finds, based on substantial record evidence, that any person
has engaged in commercial cannabis activity in violation of this chapter, the city shall fine
that person as follows: Each day that person without a commercial cannabis operator permit
offers cannabis or cannabis products for sale or exchange shall constitute a separate
violation and assessed a fine in accordance with Sections 1.12.080 and 1.24.070(A).
E. Each person committing, causing, or maintaining a violation of this chapter or failing to
comply with the requirements set forth herein shall be deemed guilty of a separate offense
for each and every day during any portion of which any violation of any provision of this
chapter is committed, continued, maintained, or permitted by such person and shall be
punishable accordingly.
F. The violation of any provision of this chapter shall be and is hereby declared to be a public
nuisance and contrary to the public interest. Any public nuisance under this chapter may,
at the city’s discretion, be abated by the city by civil process by means of a restraining
order, preliminary or permanent injunction, or in any manner provided by law for the
abatement of such nuisance. The city shall also be entitled to recover its full reasonable
costs of abatement. The prevailing party in any proceeding associated with the abatement
of a public nuisance shall be entitled to recovery of attorneys’ fees incurred in any such
proceeding if the city has elected at the initiation of that individual action or proceeding to
seek recovery of its own attorneys’ fees.
G. In lieu of issuing a criminal citation, the city may issue an admi nistrative citation to any
person responsible for committing, causing, or maintaining a violation of this chapter.
Nothing in this section shall preclude the city from also issuing a citation upon the
occurrence of the same offense on a separate day.
H. The remedies set forth in this chapter are cumulative and in addition to any and all other
remedies available at law or equity, whether set forth elsewhere in the San Luis Obispo
Municipal Code, or in state or federal laws, regulations, or case law. In addition to other
remedies provided by this chapter or by other law, any violation of this chapter may be
remedied by a civil action brought by the city attorney, including but not limited to
administrative or judicial nuisance abatement proceedings, civil or criminal code
enforcement proceedings, and suits for injunctive relief. (Ord. 1647 § 4 (Exh. A (part)),
2018)
9.10.290 Severability.
If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this chapter is for
any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect
the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs,
sentences, clauses or phrases of this chapter or the rules adopted hereby. The city council of the
city of San Luis Obispo hereby declares that it would have adopted each section, subsection,
subdivision, paragraph, sentence, clause, or phrase hereof, irrespective of the fact that any one or
more other sections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared
invalid or unenforceable. (Ord. 1647 § 4 (Exh. A (part)), 2018)
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Exhibit B
Chapter 5.10 CANNABIS BUSINESS TAX
5.10.010 Title
5.10.020 Authority and purpose
5.10.030 Intent
5.10.040 Definitions
5.10.045 Registration of cannabis business
5.10.050 Tax imposed
5.10.060 Reporting and remittance of tax
5.10.070 Payments and communications – Timely remittance
5.10.080 Payment – When taxes deemed delinquent
5.10.090 Notice not required by the city
5.10.100 Penalties and interest
5.10.110 Refunds and credits
5.10.120 Refunds and procedures
5.10.130 Personal cultivation not taxed
5.10.140 Administration of the tax
5.10.150 Appeal procedure
5.10.160 Enforcement – Action to collect
5.10.170 Apportionment
5.10.180 Constitutionality and legality
5.10.190 Audit and examination of premises and records
5.10.200 Other licenses, permits, taxes, fees, or charges
5.10.210 Payment of tax does not authorize unlawful business
5.10.220 Deficiency determinations
5.10.230 Failure to report – Nonpayment, fraud
5.10.240 Tax assessment – Notice requirements
5.10.250 Tax assessment – Hearing, application, and determination
5.10.260 Relief from taxes – Disaster relief
5.10.270 Conviction for violation – Taxes not waived
5.10.280 Violation deemed misdemeanor
5.10.290 Severability
5.10.300 Remedies cumulative
5.10.310 Amendment or repeal
5.10.320 Enforcement consistent with business license tax
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5.10.010 Title.
This chapter shall be known as the cannabis business tax ordinance. (Ord. 1659 § 1 (part), 2018)
5.10.020 Authority and purpose.
The purpose of this chapter is to impose a tax, for revenue purposes, pursuant to Section 203 of
the city charter and Sections 37101 and 37100.5 of the California Government Code, upon persons
who engage in cannabis business in the city.
The cannabis business tax is a general tax enacted solely to raise revenue for general governmental
purposes of the city and not for regulation. All of the proceeds from the tax imposed by this chapter
shall be placed in the city’s general fund and be available for any lawful municipal purpose in the
discretion of the city. (Ord. 1659 § 1 (part), 2018)
5.10.030 Intent.
The intent of this chapter is to levy a tax on all cannabis businesses that operate in the city,
regardless of whether such business would have been legal at the time the ordinance codified in
this chapter was adopted. Nothing in this chapter shall be interpreted to authorize or permit any
business activity that would not otherwise be legal or permissible under laws applicable to the
activity at the time the activity is undertaken. (Ord. 1659 § 1 (part), 2018)
5.10.040 Definitions.
The following words and phrases shall have the meanings set forth below when used in this
chapter:
A. “Business” shall include all activities engaged in or caused to be engaged in within the city,
including any commercial or industrial enterprise, trade, profession, occupation, vocation,
calling, or livelihood, whether or not carried on for gain or profit, but shall not include the
services rendered by an employee to his or her employer.
B. “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or
Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or
purified, extracted from any part of the plant; and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means
cannabis as defined by Section 11018.5 of the California Health and Safety Code, by
Section 26001(f) of the Business and Professions Code, and by other state law.
C. “Cannabis product” means raw cannabis that has undergone a process whereby the raw
agricultural product has been transformed into a concentrate, an edible product, or a topical
product. “Cannabis product” also means marijuana products as defined by Section 11018.1
of the California Health and Safety Code and by other state law.
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D. “Canopy” means all areas occupied by any portion of a cannabis plant whether contiguous
or noncontiguous on any one site. When plants occupy multiple horizontal planes (as when
plants are placed on shelving above other plants) each plane shall be counted as a separate
canopy area.
E. “Cannabis business” means any business activity involving cannabis, including but not
limited to cultivating, transporting, distributing, manufacturing, compounding, converting,
processing, preparing, storing, packaging, delivering, testing, dispensing, retailing and
wholesaling of cannabis, of cannabis products or of ancillary products and accessories,
whether or not carried on for gain or profit, whether for medical or recreational use, and
whether or not such business is licensed by the state.
F. “Cannabis business tax” or “business tax” means the tax due pursuant to this chapter for
engaging in cannabis business in the city.
G. “City manager” means the city manager of the city under Section 703 of the charter or his
or her designee under Section 1.08.070.
H. “Commercial cannabis cultivation” means cultivation in the course of conducting a
cannabis business. “Commercial cannabis cultivation” does not include personal medical
cannabis cultivation or cultivation for personal recreational use as authorized by the
Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) for which the
individual receives no compensation whatsoever.
I. “City permit” means a permit issued by the city to a person to authorize that person to
operate or engage in a cannabis business.
J. “Cultivation” means any activity involving the planting, growing, harvesting, drying,
curing, grading, or trimming of cannabis and includes, but is not limited to, the operation
of a nursery.
K. “Delivery” means the transfer for any form of compensation of cannabis or cannabis
products to a customer or caregiver at a location that is not a dispensary.
L. “Dispensary” means a place at which cannabis, cannabis products, or accessories for the
use of cannabis or cannabis products are offered, either individually or in combination, for
retail sale, including an establishment that engages in delivery, whether or not from a fixed
place of business.
M. “Distributor” means a person engaged in procuring cannabis and/or cannabis products for
sale to a dispensary or other point of retail sale. “Distribution” means engaging in that
conduct.
N. “Employee” means each and every person engaged in the operation or conduct of any
business, whether as owner, member of the owner’s family, partner, associate, agent,
manager or solicitor, and each and every other person employed or working in such
business for a wage, salary, commission, barter or any other form of compensation.
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O. “Engaged in business as a cannabis business” means the commencing, conducting,
operating, managing or carrying on of a cannabis business, whether done as owner, or by
means of an officer, agent, manager, employee, or otherwise, whether operating from a
fixed location in the city or coming into the city from an outside location to engage in such
activities. A person shall be deemed engaged in business within the city if:
1. Such person or person’s employee maintains a fixed place of business within the city
for the benefit or partial benefit of such person;
2. Such person or person’s employee owns or leases real property within the city for
business purposes;
3. Such person or person’s employee regularly maintains a stock of tangible personal
property in the city for sale in the ordinary course of business;
4. Such person or person’s employee regularly conducts solicitation of business within
the city; or
5. Such person or person’s employee performs work or renders services in the city.
The foregoing specified activities shall not be a limitation on the meaning of “engaged in
business.”
P. “Evidence of doing business” means evidence such as, without limitation, use of signs,
circulars, cards or any other advertising media, including the use of internet or telephone
solicitation, or representation to a government agency or to the public that such person is
engaged in a cannabis business in the city.
Q. “Calendar year” means January 1st through December 31st of the following calendar year.
R. “Gross receipts,” except as otherwise specifically provided, means, whether designated a
sales price, royalty, rent, commission, dividend, or other designation, the total amount
(including all receipts, cash, credits and property of any kind or nature) received or payable
for sales of goods, wares or merchandise or for the performance of any act or service of
any nature for which a charge is made or credit allowed (whether such service, act or
employment is done as part of or in connection with the sale of goods, wares, merchandise
or not), without any deduction therefrom on account of the cost of the property sold, the
cost of materials used, labor or service costs, interest paid or payable, losses or any other
expense whatsoever. However, the following shall be excluded from the definition of gross
receipts:
1. Cash discounts where allowed and taken on sales;
2. Any tax required by law to be included in or added to the purchase price and collected
from the consumer or purchaser;
3. Such part of the sale price of any property returned by purchasers to the seller as
refunded by the seller by way of cash or credit allowances or return of refundable
deposits previously included in gross receipts;
4. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures,
machinery or other equipment used by the taxpayer in the regular course of the
taxpayer’s business;
5. Cash value of sales, trades or transactions between departments or units of the same
business;
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6. Whenever there are included within the gross receipts amounts which reflect sales for
which credit is extended and such amount proved uncollectible in a subsequent year,
those amounts may be excluded from the gross receipts in the year they prove to be
uncollectible; provided, however, if the whole or portion of such amounts excluded as
uncollectible are subsequently collected they shall be included in the amount of gross
receipts for the period when they are recovered;
7. Receipts of refundable deposits, except that such deposits when forfeited and taken into
income of the business shall not be excluded when in excess of one dollar;
8. Amounts collected for others where the business is acting as an agent or trustee and to
the extent that such amounts are paid to those for whom collected. These agents or
trustees must provide the finance department with the names and the addresses of the
others and the amounts paid to them. This exclusion shall not apply to any fees,
percentages, or other payments retained by the agent or trustees;
9. Retail sales of t-shirts, sweaters, hats, stickers, key chains, bags, books, posters, rolling
papers, cannabis accessories such as pipes, pipe screen, vape pen batteries (without
cannabis) or other personal tangible property which the tax administrator has excluded
in writing by issuing an administrative ruling per Section 5.10.140 shall not be subject
to the cannabis business tax under this chapter. However, any retail sales not subject to
this chapter as a result of the administrative ruling shall be subject to the appropriate
business tax under Chapter 5.01 or any other chapter or title as determined by the tax
administrator.
S. “Manufacturer” means a person who engages in the production, preparation, propagation,
or compounding of cannabis or cannabis products either directly or indirectly or by
extraction methods, or independently by means of chemical synthesis, or by a combination
of extraction and chemical synthesis.
T. “Nursery” means a facility or part of a facility that is used only for producing clones,
immature plants, seeds, and other agricultural products used specifically for the planting,
propagation, and cultivation of cannabis.
U. “Person” means an individual, firm, partnership, joint venture, association, collective,
corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or
any other group or combination acting as a unit, whether organized as a nonprofit or for -
profit entity, and includes the plural as well as the singular number.
V. “Sale” means and includes any sale, exchange, or barter.
W. “State” means the state of California.
X. “Tax administrator” means the finance director of the city of San Luis Obispo or his or her
designee.
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Y. “Testing laboratory” means a cannabis business that (1) offers or performs tests of cannabis
or cannabis products, (2) offers no service other than such tests, (3) sells no products,
excepting only testing supplies and materials, (4) is accredited by an accrediting body that
is independent from all other persons involved in the cannabis industry in the state and (5)
is licensed by the Bureau of Cannabis Control. (Ord. 1659 § 1 (part), 2018)
5.10.45 Registration of cannabis business.
A. All persons engaging in a cannabis business, whether an existing, newly established or
acquired business, shall register with the tax administrator’s office by the later of:
1. Thirty days after commencing operation; or
2. January 1, 2019, and shall annually renew such registration annually thereafter by July
1st of each year, with any such renewal becoming delinquent on July 31st of each
year. on or before the anniversary of the initial registration for that business.
3. The Tax Administrator is authorized to prorate existing, newly established, or acquired
business registration fees consistent with the intent of this Chapter and as otherwise
required by applicable law. Nothing herein is intended, nor shall it be interpreted or
applied to increase any tax in excess of the rate approved by the voters of the City of
San Luis Obispo and the Tax Administrator shall ensure that no application of the
provisions herein are so applied.
B. Registrants shall furnish to the tax administrator a statement sworn under penalty of
perjury, upon a form provided by the tax administrator, setting forth:
1. Every name under which the business engages in commercial cannabis activity in the
city;
2. The names and addresses of every person who is an owner, principal or manager of the
business;
3. The nature or kind of all business activity to be conducted;
4. The place or places, whether or not in the city, where such business is to be conducted;
and
5. Any further information which the tax administrator may require to administer the tax
under this chapter.
C. Registrants shall pay an annual registration fee in an amount established from time to time
by resolution of the city to recover the city’s costs to implement the registration
requirement of this section, and the other provisions of this chapter, other than the duty to
pay tax when due. As a regulatory fee, such fee shall be limited to the city’s reasonable
costs for those activities. (Ord. 1659 § 1 (part), 2018)
5.10.050 Tax imposed.
A. Beginning January 1, 2019, there is imposed upon each person who is engaged in business
as a cannabis business a cannabis business tax, whether the business has been issued a
permit to operate lawfully in the city or is operating unlawfully.
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B. The initial rate of the cannabis business tax shall be as follows, unless adjusted:
1. For every person who is engaged in commercial cannabis cultivation in the city:
a. Seven dollars annually per square foot of canopy space in a facility. For purposes
of this chapter, the square feet of canopy space for a business shall be rebuttably
presumed to be the maximum square footage of canopy allowed by the business’s
city permit for commercial cannabis cultivation, or, in the absence of a city permit,
the square footage shall be the maximum square footage of canopy for commercial
cannabis cultivation allowed by the business’s state license. Should a city permit
be issued to a business which cultivates only for certain months of the year, the city
shall prorate the tax as to sufficiently reflect the period in which cultivation is
occurring at the business. In no case shall canopy square footage which is
authorized by the city commercial cannabis permit, but not utilized for cultivation,
be deducted for the purpose of determining the tax for cultivation, unless the tax
administrator is informed in writing that such space will not be used and authorizes
such reduction for the purpose of relief from the tax prior to the period for which
the space will not be used.
2. For every person who engages in the operation of a testing laboratory: one percent of
gross receipts.
3. For every person who engages in the retail sales of cannabis as a retailer (dispensary)
or non-storefront retailer (delivery) or microbusiness (retail sales): six percent of gross
receipts.
4. For every person who engages in a cannabis distribution business: two percent of gross
receipts.
5. For every person who engages in a cannabis manufacturing, processing, microbusiness
(nonretail), or any other type of cannabis business not described in subsection (B)(1),
(B)(2), (B)(3) or (B)(4) of this section: two and one-half percent of gross receipts.
C. The city council may, by resolution or ordinance, adjust the rate of the cannabis business
tax. However, in no event may the city council set any adjusted rate that exceeds the
maximum rate calculated pursuant to subsection D of this section for the date on which the
adjusted rate will commence.
D. The maximum rate shall be calculated as follows:
1. For every person who is engaged in commercial cannabis cultivation in the city:
a. Through January 1, 2021, the maximum rate shall be:
i. Ten dollars annually per square foot of canopy space in a facility.
b. On January 1, 2022, and on each January 1st thereafter, the maximum annual tax
rate per square foot of each type of canopy space shall increase by the percentage
change between January of the calendar year prior to such increase and January of
the calendar year of the increase in the Consumer Price Index (“CPI”) for all urban
consumers in the Los Angeles-Long Beach-Anaheim area as published by the
United States Government Bureau of Labor Statistics. However, no CPI adjustment
resulting in a decrease of any tax imposed by this subsection shall be made.
2. For every person who engages in the operation of a testing laboratory, the maximum
tax rate shall not exceed two and one-half percent of gross receipts.
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3. For every person who engages in the retail sales of cannabis as a retailer (dispensary)
or non-storefront retailer (delivery business), or microbusiness (retail sales activity),
the maximum tax rate shall not exceed ten percent of gross receipts.
4. For every person who engages in a cannabis distribution business, the maximum tax
rate shall not exceed three percent of gross receipts.
5. For every person who engages in a cannabis manufacturing, processing, microbusiness
(nonretail activity) or any other type of cannabis business not described in subsection
(D)(1), (D)(2), (D)(3) or (D)(4) of this section, the maximum tax rate shall not exceed
four percent of gross receipts. (Ord. 1659 § 1 (part), 2018)
5.10.060 Reporting and remittance of tax.
A. The cannabis business tax imposed by this chapter shall be paid, in arrears, on a monthly
basis. For commercial cannabis cultivation, the tax due for each month shall be based on
the square footage of the business’s canopy space during the month and the rate shall be
twelve percent of the applicable annual rate. For all other cannabis businesses activities,
the tax due for each month shall be based on the gross receipts for the month.
B. Each person owing cannabis business tax for a month shall, no later than the last day of the
following month, file with the tax administrator a statement of the tax owed for that month
and the basis for calculating that tax. The tax administrator may require that the statement
be submitted on a form prescribed by the tax administrator. The tax for each month shall
be due and payable on that same date as the statement for the month is due.
C. Upon cessation of a cannabis business, tax statements and payments shall be immediately
due for all months up to the month during which cessation occurred.
D. The tax administrator may, at his or her discretion, establish shorter report and payment
periods for any taxpayer as the tax administrator deems necessary to ensure collection of
the tax. The tax administrator may also require that a deposit, to be applied against the
taxes for a month, be made by a taxpayer at the beginning of that month. In no event shall
the deposit required by the tax administrator exceed the tax amount he or she projects will
be owed by the taxpayer for the month. The tax administrator may require that a taxpayer
make payments via a cashier’s check, money order, wire transfer, or similar instrument.
(Ord. 1659 § 1 (part), 2018)
5.10.070 Payments and communications – Timely remittance.
Whenever any payment, statement, report, request or other communication is due, it must be
received by the tax administrator on or before the final due date. A postmark will not be accepted
as timely remittance. If the due date would fall on a Saturday, Sunday or a holiday, the due date
shall be the next regular business day on which the city is open to the public. (Ord. 1659 § 1 (part),
2018)
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5.10.080 Payment – When taxes deemed delinquent.
Unless otherwise specifically provided under other provisions of this chapter, the taxes required
to be paid pursuant to this chapter shall be deemed delinquent if not received by the tax
administrator on or before the due date as specified in Sections 5.10.060 and 5.10.070. (Ord. 1659
§ 1 (part), 2018)
5.10.090 Notice not required by the city.
Failure of the tax administrator to send a notice or bill shall not affect the validity of any tax or
penalty due under the provisions of this chapter. (Ord. 1659 § 1 (part), 2018)
5.10.100 Penalties and interest.
A. Any person who fails or refuses to pay any cannabis business tax required to be paid
pursuant to this chapter on or before the due date shall pay penalties and interest as follows:
1. A penalty equal to ten percent of the amount of the tax, in addition to the amount of the
tax, plus interest on the unpaid tax calculated from the due date of the tax at the rate of
one percent per month.
2. If the tax remains unpaid for a period exceeding one calendar month beyond the due
date, an additional penalty equal to twenty-five percent of the amount of the tax, plus
interest at the rate of one percent per month on the unpaid tax and on the unpaid
penalties.
3. Interest shall be applied at the rate of one percent per month on the first day of the
month for the full month and will continue to accrue monthly on the tax and penalty
until the balance is paid in full.
B. Whenever a check or electronic payment is submitted in payment of a cannabis business
tax and the payment is subsequently returned unpaid by the bank for any reason, the
taxpayer will be liable for the tax amount due plus any fees, penalties and interest as
provided for in this section, and any other amount allowed under state law. (Ord. 1659 § 1
(part), 2018)
5.10.110 Refunds and credits.
A. No refund shall be made of any tax collected pursuant to this chapter, except as provided
in Section 5.10.120.
B. No refund of any tax collected pursuant to this chapter shall be made because of the
discontinuation, dissolution, or other termination of a business. (Ord. 1659 § 1 (part), 2018)
5.10.120 Refunds and procedures.
A. Whenever the amount of any cannabis business tax, penalty or interest has been overpaid,
paid more than once, or has been erroneously collected or received by the city under this
chapter, it may be refunded to the claimant who paid the tax; provided, that a written claim
for refund is filed with the tax administrator within one year of the date the tax was
originally due and payable.
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B. The tax administrator, his or her designee or any other city officer charged with the
administration of this chapter shall have the right to examine and audit all the bo oks and
business records of the claimant in order to determine the eligibility of the claimant to the
claimed refund. No claim for refund shall be allowed if the claimant refuses to allow such
examination of claimant’s books and business records after request by the tax administrator
to do so.
C. In the event that the cannabis business tax was erroneously paid, and the error is attributable
to the city, upon a timely claim the city shall refund the amount of tax erroneously paid in
the year preceding the date the claim was received. (Ord. 1659 § 1 (part), 2018)
5.10.130 Personal cultivation not taxed.
The provisions of this chapter shall not apply to personal cannabis cultivation as defined in the
Medicinal and Adult-Use Cannabis Regulation and Safety Act. This chapter shall not apply to
personal use of cannabis that is specifically exempted from the city or state licensing requirements,
that meets the definition of personal use or equivalent terminology under state law, and for which
the individual receives no compensation whatsoever related to that personal use. (Ord. 1659 § 1
(part), 2018)
5.10.140 Administration of the tax.
A. It shall be the duty of the tax administrator to collect the taxes, penalties, fees, and perform
the duties required by this chapter.
B. For purposes of administration and enforcement of this chapter generally, the tax
administrator may from time to time promulgate such administrative interpretations, rules,
and procedures consistent with the purpose, intent, and express terms of this chapter as he
or she deems necessary to implement or clarify such provisions or aid in enforcement. He
or she shall give notice of those regulations in the manner required by law for publication
of ordinances of the city council and the regulations shall take effect thirty days after such
notice unless otherwise provided in a particular regulation.
C. The tax administrator may take such administrative actions as needed to administer the tax,
including but not limited to:
1. Provide to all cannabis business taxpayers forms for the reporting of the tax;
2. Provide information to any taxpayer concerning the provisions of this chapter;
3. Receive and record all taxes remitted to the city as provided in this chapter;
4. Maintain records of taxpayer reports and taxes collected pursuant to this chapter;
5. Assess penalties and interest to taxpayers pursuant to this chapter;
6. Determine amounts owed and enforce collection pursuant to this chapter. (Ord. 1659
§ 1 (part), 2018)
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5.10.150 Appeal procedure.
Any taxpayer aggrieved by any decision of the tax administrator with respect to the amount of tax,
interest, penalties and fees, if any, due under this chapter may appeal to the city manager by filing
a notice of appeal with the city clerk within thirty days of the serving or mailing of the
determination of tax due. The city clerk, or his or her designee, shall fix a time and place for
hearing such appeal, and the city clerk, or his or her designee, shall give notice in writing to such
operator at the last known place of address. The finding of the city manager shall be final and
conclusive as to the city, but subject to judicial review under Code of Civil Procedure Section
1094.5 and shall be served upon the appellant in the manner prescribed by this chapter for service
of notice of hearing. Any amount found to be due shall be immediately due and payable upon the
service of the notice. (Ord. 1659 § 1 (part), 2018)
5.10.160 Enforcement – Action to collect.
Any taxes, penalties and/or fees required to be paid under the provisions of this chapter shall be
deemed a debt owed to the city. Any person owing money to the city under the provisions of this
chapter shall be liable in an action brought in the name of the city for the recovery of such debt.
(Ord. 1659 § 1 (part), 2018)
5.10.170 Apportionment.
If a business subject to the tax is operating both within and outside the city, it is the intent of the
city to apply the cannabis business tax so that the measure of the tax fairly reflects the proportion
of the taxed activity actually carried on in the city. To the extent federal or state law requires that
any tax due from any taxpayer be apportioned, the taxpayer may propose an apportionment on his
or her tax return. The tax administrator may accept or reject that apportionment and, if the latter,
shall establish an appropriate apportionment on such evidence as is provided by the taxpayer or
otherwise available to the tax administrator. The tax administrator may promulgate administrative
procedures for apportionment as he or she finds useful or necessary. (Ord. 1659 § 1 (part), 2018)
5.10.180 Constitutionality and legality.
A. This tax is intended to be applied consistently with the United States and California
Constitutions, state law and the city charter. The tax shall not be applied so as to cause an
undue burden upon interstate commerce, a violation of the equal protection and due process
clauses of the Constitution of the United States or the state of California, to constitute a
special tax, or to cause a violation of any other provision of applicable law.
B. The taxes imposed under this chapter are excises on the privilege of engaging in
commercial cannabis activity in the city. They are not sales or use taxes and shall not be
calculated or assessed as such. Nevertheless, at the option of a cannabis business, the tax
may be separately identified on invoices, receipts and other evidences of transactions. (Ord.
1659 § 1 (part), 2018)
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5.10.190 Audit and examination of premises and records.
A. For the purpose of ascertaining the amount of cannabis business tax owed or verifying any
representations made by any taxpayer to the city in support of his or her tax calculation,
the tax administrator shall have the power to inspect any location where commercial
cannabis cultivation or commercial business activity occurs, whether or not located in the
city, and to audit and examine all books and records (including, but not limited to,
bookkeeping records, state and federal income tax returns, and other records relating to the
gross receipts of the business) of persons engaged in cannabis businesses. In conducting
such investigation, the tax administrator shall have the power to inspect any equipment,
such as computers or point of sale machines, that may contain such records.
B. It shall be the duty of every person liable for the collection and payment to the city of any
tax imposed by this chapter to keep and preserve, for a period of at least three years, all
records as may be necessary to determine the amount of such tax as he or she may have
been liable to pay to the city, which records the tax administrator or his/her designee shall
have the right to inspect at all reasonable times. (Ord. 1659 § 1 (part), 2018)
5.10.200 Other licenses, permits, taxes, fees or charges.
A. Nothing contained in this chapter shall be deemed to repeal, amend, be in lieu of, replace
or in any way affect any requirements for any permit or license required by, under or by
virtue of any provision of any other chapter of this code or any other ordinance or resolution
of the city, nor be deemed to repeal, amend, be in lieu of, replace or in any way affect any
tax, fee or other charge imposed, assessed or required by, under or by virtue of any other
chapter of this code or any other ordinance or resolution of the city. Any references made
or contained in any other chapter of this code to any licenses, license taxes, fees, or charges,
or to any schedule of license fees, shall be deemed to refer to the licenses, license taxes,
fees or charges, or schedule of license fees, provided for in other chapters of this code
unless the context is plain that another meaning is intended.
B. Notwithstanding subsection A of this section, a cannabis business shall not be required to
pay the license fee required by Chapter 5.01 so long as all of the business’s activities within
the city that would require payment of a license fee are subject to the cannabis business
tax.
C. The tax administrator may revoke or refuse to renew the license required by Chapter 5.01
for any business that is delinquent in the payment of any tax due pursuant to this chapter
or that fails to make a deposit required by the tax administrator pursuant to Section
5.10.060. (Ord. 1659 § 1 (part), 2018)
5.10.210 Payment of tax does not authorize unlawful business.
A. The payment of a cannabis business tax required by this chapter, and its acceptance by the
city, shall not entitle any person to carry on any cannabis business unless the person has
complied with all of the requirements of this code and all other applicable state and local
laws.
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B. No tax paid under the provisions of this chapter shall be construed as authorizing the
conduct or continuance of any illegal or unlawful business, or any business in violation of
any local or state law, although businesses illegal under other law are nevertheless subject
to tax under this chapter according to its terms. (Ord. 1659 § 1 (part), 2018)
5.10.220 Deficiency determinations.
If the tax administrator is not satisfied that any statement filed as required under the provisions of
this chapter is correct, or that the amount of tax is correctly computed, he or she may compute and
determine the amount to be paid and make a deficiency determination upon the basis of the facts
contained in the statement or upon the basis of any information in his or her possession or that may
come into his or her possession within three years of the date the tax was originally due and
payable. One or more deficiency determinations of the amount of tax due for a period or periods
may be made. When a person discontinues engaging in a business, a deficiency determination may
be made at any time within three years thereafter as to any liability arising from engaging in such
business whether or not a deficiency determination is issued prior to the date the tax would
otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the
person concerned in the same manner as notices of assessment are given under Section 5.10.240.
(Ord. 1659 § 1 (part), 2018)
5.10.230 Failure to report—Nonpayment, fraud.
A. Under any of the following circumstances, the tax administrator may make and give notice
of an assessment of the amount of tax owed by a person under this chapter at any time:
1. If the person has not filed a complete statement required under the provisions of this
chapter;
2. If the person has not paid the tax due under the provisions of this chapter;
3. If the person has not, after demand by the tax administrator, filed a corrected statement,
or furnished to the tax administrator adequate substantiation of the information
contained in a statement already filed, or paid any additional amount of tax due under
the provisions of this chapter; or
4. If the tax administrator determines that the nonpayment of any business tax due under
this chapter is due to fraud, a penalty of twenty-five percent of the amount of the tax
shall be added thereto in addition to penalties and interest otherwise stated in this
chapter and any other penalties allowed by law.
B. The notice of assessment shall separately set forth the amount of any tax known by the tax
administrator to be due or estimated by the tax administrator, after consideration of all
information within the tax administrator’s knowledge concerning the business and
activities of the person assessed, to be due under each applicable section of this chapter
and shall include the amount of any penalties or interest accrued on each amount to the
date of the notice of assessment. (Ord. 1659 § 1 (part), 2018)
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5.10.240 Tax assessment – Notice requirements.
The notice of assessment shall be served upon the person either by personal delivery, or by a
deposit of the notice in the United States mail, postage prepaid thereon, addressed to the person at
the address of the location of the business or to such other address as he or she shall register with
the tax administrator for the purpose of receiving notices provided under this chapter; or, should
the person have no address registered with the tax administrator for such purpose, then to such
person’s last known address. For the purposes of this section, a service by mail is complete at the
time of deposit in the United States mail. (Ord. 1659 § 1 (part), 2018)
5.10.250 Tax assessment – Hearing, application and determination.
Within thirty days after the date of service the person may apply in writing to the tax administrator
for a hearing on the assessment. If application for a hearing before the city is not made within the
time herein prescribed, the tax assessed by the tax administrator shall become final and conclusive.
Within thirty days of the receipt of any such application for hearing, the tax administrator shall
cause the matter to be set for hearing before him or her no later than thirty days after the receipt of
the application, unless a later date is agreed to by the tax administrator and the person requesting
the hearing. Notice of such hearing shall be given by the tax administrator to the person requesting
such hearing not later than five days prior to such hearing. At such hearing said applicant may
appear and offer evidence why the assessment as made by the tax administrator should not be
confirmed and fixed as the tax due. After such hearing the tax administrator shall determine and
reassess the proper tax to be charged and shall give written notice to the person in the manner
prescribed in Section 5.10.240 for giving notice of assessment. (Ord. 1659 § 1 (part), 2018)
5.10.260 Relief from taxes – Disaster relief.
A. If a business is unable to comply with any tax requirement due to a disaster, the business
may notify the tax administrator of this inability to comply and request relief from the tax
requirement;
B. The tax administrator, in its sole discretion, may provide relief from the cannabis business
tax requirement for businesses whose operations have been impacted by a disaster if such
tax liability does not exceed five thousand dollars. If such tax liability is five thousand one
dollars or more then such relief shall only be approved by the city manager;
C. Temporary relief from the cannabis tax may be relieved for a reasonable amount of time
as determined by the tax administrator in order to allow the cannabis business time to
recover from the disaster;
D. The tax administrator may require that certain conditions be followed in order for a
cannabis business to receive temporary relief from the cannabis business tax requirement;
E. A cannabis business shall not be subject to an enforcement action for a violation of a
cannabis business requirement in which the licensee has received temporary relief from the
tax administrator;
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F. For purposes of this section, “disaster” means fire, flood, storm, tidal wave, earthquake, or
similar public calamity, whether or not resulting from natural causes.
1. The cannabis business must notify the tax administrator in writing of a request for
temporary relief from imposition of the tax requirement pursuant to subsection A of
this section, indicating clearly why disaster relief is requested, the time period for which
the relief is requested, and the reasons relief is needed for the specified amount of time;
2. The cannabis business agrees to grant the tax collector or his/her designee access to the
location where the cannabis business has been impacted due to a disaster. (Ord. 1659
§ 1 (part), 2018)
5.10.270 Conviction for violation – Taxes not waived.
The conviction and punishment of any person for failure to pay the required tax shall not excuse
or exempt such person from any civil action for the tax debt unpaid at the time of such conviction.
No civil action shall prevent a criminal prosecution for any violation of the provisions of this
chapter or of any state law requiring the payment of all taxes. (Ord. 1659 § 1 (part), 2018)
5.10.280 Violation deemed misdemeanor.
Any person violating any of the provisions of this chapter shall be guilty of a misdemeanor
punishable under Chapter 1.12 unless the tax administrator provides by regulation that violation
of a particular provision of this chapter ought to be enforced as an infraction or if the city attorney
determines in his or her discretion that a particular violation ought to be enforced as an infraction
in the interests of justice. (Ord. 1659 § 1 (part), 2018)
5.10.290 Severability.
If any provision of this chapter, or its application to any person or circumstance, is determined by
a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that
determination shall have no effect on any other provision of this chapter or the application of this
chapter to any other person or circumstance and, to that end, the provisions hereof are severable.
(Ord. 1659 § 1 (part), 2018)
5.10.300 Remedies cumulative.
All remedies and penalties prescribed by this chapter or which are available under any other
provision of the San Luis Obispo Municipal Code and any other provision of law or equity are
cumulative. The use of one or more remedies by the city shall not bar the use of any other remedy
for the purpose of enforcing the provisions of this chapter; provided only that the city not recover
any sum due under this chapter, including penalties and interest, more than once. (Ord. 1659 § 1
(part), 2018)
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Ordinance No. _____ (2021 Series) Page 35
O ______
5.10.310 Amendment or repeal.
This chapter may be repealed or amended by the city council without a vote of the people to the
extent allowed by law. However, as required by Article XIII C of the California Constitution, voter
approval is required for any amendment that would increase the maximum rates of any tax
established pursuant to this chapter. The people of the city of San Luis Obispo affirm that the
following actions shall not constitute an increase of the rate of a tax:
A. The restoration of a tax to a rate or amount that is no higher than that set by this chapter;
B. An action that interprets or clarifies the methodology of the tax, or any definition applicable
to the tax, so long as interpretation or clarification (even if contrary to some prior
interpretation or clarification) is not inconsistent with the language of this chapter; or
C. The collection of the tax imposed by this chapter even if the city had, for some period of
time, failed to collect the tax. (Ord. 1659 § 1 (part), 2018)
5.10.320 Enforcement consistent with business license tax.
Except as otherwise provided in this chapter, the taxes due under this chapter may be enforced in
the manner provided by Chapter 5.01 and any policy or regulation adopted or implement pursuant
to that chapter. (Ord. 1659 § 1 (part), 2018)
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R ______
RESOLUTION NO. _____ (2021 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, WAIVE THE OPERATOR PERMIT RENEWAL
FEES FOR FISCAL YEAR 2020 – 2021 FOR COMMERCIAL CANNABIS
BUSINESS PAPA BEAR FARMS, LLC
WHEREAS, the City of San Luis Obispo’ s (City) General Plan and Airport Area Specific
Plan call for annexation of the area referred to as the Fiero Lane and Clarion Court Annexation
Area; and
WHEREAS, City Council approved the Fiero Lane and Clarion Court area annexation on
November 19, 2019; and
WHEREAS, within the proposed annexation area a Commercial Cannabis Delivery and
Small-Scale Manufacturing Business, Papa Bear Farms, LLC licensed by the State of California’s
Bureau of Cannabis Control (BCC) and County of San Luis Obispo (County) is coming under City
jurisdiction; and
WHEREAS, a licensed Cannabis Business by the BCC and County is eligible to continue
its business operations in the City of San Luis Obispo once the annexation occurs; and
WHEREAS, the current cannabis regulations within Chapter 9.10, 5.10 and 17.86.080 do
not provide explicit direction for cannabis business annexations; and
WHEREAS, Papa Bear Farms, LLC will be required to have a valid City operating permit
and pay applicable fees; and
WHEREAS, Papa Bear Farms, LLC has expressed significant concerns regarding the
impact of the City’s operator permit renewal fee on its ability to continue existing operations within
City jurisdiction; and
WHEREAS, the City acknowledges the existing business structure was based on County
operating permit fees; and
WHEREAS, Papa Bear Farms, LLC supports City Council’s consideration of waived
operator permit renewal fees for Fiscal Year 2020 – 2021; and
WHEREAS, the City Council has the authority to waive the operator permit renewal fees
for Papa Bear Farms, LLC through June 30, 2021; and
WHEREAS, on January 19, 2021 the City Council held a public hearing to review and
discuss a proposal to waive Papa Bear Farms, LLC operator permit renewal fees through June 30,
2021, receive public input and consider the recommendations of its staff.
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Resolution No. _____ (2021 Series) Page 2
R ______
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 waiving of cannabis operator permit renewal fees is consistent with
the City’s Municipal Code and cannabis regulations.
3. Support and retention of existing businesses during and following the COVID-19
pandemic emergency is in the public interest of the residents of the City and the City
organization.
4. A one-time waiver of fees to advance the retention of an established locally owned and
operated business and its continuing operations and tax contributions in City
jurisdiction following annexation is in the long-term financial interest of the City and
advances the economic development interests of the community as a whole.
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Resolution No. _____ (2021 Series) Page 3
R ______
SECTION 2. Action. The City Council takes the following actions:
1. The City waives the operator permit renewal fees for Papa Bear Farms, LLC through
June 30, 2021.
2. The City will issue Papa Bear Farms, LLC a City of San Luis Obispo Operator Permit
for the 2020 – 2021 Fiscal Year ending on June 30, 2021 and the business may continue
to operate in the City with a renewal of the operating permit and payment of applicable
fees required by July 1, 2021.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2021.
____________________________________
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, on ___________________________.
____________________________________
Teresa Purrington
City Clerk
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Department Name: Finance
Cost Center: 2001
For Agenda of: January 19, 2021
Placement: Business Item
Estimated Time: 20 minutes
FROM: Brigitte Elke, Finance Director
Prepared By: Debbie Malicoat, Accounting Manager/Controller
SUBJECT: ACCEPTANCE OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR FISCAL YEAR 2019-20
RECOMMENDATION
Review and accept the 2019-20 Comprehensive Annual Financial Report and Audit. (Attachment
A)
DISCUSSION
The accompanying Comprehensive Annual Financial Report (CAFR) has been prepared as required
by the City’s Charter and applicable State laws regarding financial reporting for municipalities. The
CAFR provides a final and audited representation of the City’s financial condition across all funds
for the fiscal year that ended June 30, 2020. The CAFR was published on the City’s website on
December 31, 2020 to be available for public review.
In accordance with the City Charter1, the City’s financial statements have been audited by
independent certified public accountants from Badawi & Associates. The objective of the financial
audit is to provide users of the financial reports with reasonable assurance from an independent
source that the financial reports are reliable and represent a fair assessment of the City’s financial
condition. The auditor issued the financial statements with an unmodified opinion which means that
they are presented fairly and in conformity with generally accepted accounting principles (see pages
1-3 of the CAFR- Independent Auditors’ report).
In the past, staff presented the Single Audit Report and Transportation Development Act annual
audit at the same time as the CAFR. However, due to timing issues, these two reports will be
presented at a future date that corresponds with applicable deadlines.
1 Section 810. Independent Audits.
The Council shall employ, at the beginning of each fiscal year, an independent certified public accountant who, at such time or times as may be
specified by the Council, at least annually, shall ex amine the books, records, inventories, and reports of all officials, employees, departments, and
agencies who receive, handle, or disburse public funds. As soon as practicable after the end of the fiscal year, a final audi t and report shall be
submitted by such accountant to the Council, one copy thereof to be distributed to each member, one each to the City Clerk, the City Treas urer,
the City Manager, and City Attorney respectively, and three (3) additional copies to be placed on file in the office of the City Clerk where they
shall be available for inspection by the general public for the period required by the laws of the State of California. Restr icted and special
assessment district funds shall be segregated in the audit report.
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New Government Accounting Standard Board (GASB) Statements
In 2020, GASB issued Statement No 95 - Postponement of the Effective Dates of Certain
Authoritative Guidance - in consideration of the effect of the worldwide pandemic on government
operations. Hence, no new accounting standards became applicable for the audited fiscal year.
Financial Results Highlighted in the CAFR
Within the CAFR, the Transmittal Memorandum and Management’s Discussion and Analysis
(MD&A) summarize the City’s fiscal performance and provide an analysis of the influencing
factors. They also provide information on the City’s fiscal policies, practices, and financial results.
Key variances from projected ending balances for 2019-20 are highlighted in the Transmittal
Memorandum. Both documents allow the reader to gain insight into the City’s audited financials
and provide context to the financial statements that follow.
Financial results for fiscal year 2019-20 were mixed, largely due to the global pandemic, the
shelter-at -home directives, and the City’s response to it. All major funds experienced impacts
and in particular, the Transit Fund and Parking Fund revenues were significantly reduced as
demand diminished with the shelter-at-home directives. Additionally, the City offered free
parking both on-street and at the garages, as well as free ridership on City buses to assist with the
impacts of COVID-19.
Revenues and expenditures in the General Fund came in below original budget estimates by $4
million. However, by reacting quickly and activating the Fiscal Health Contingency Plan,
General Fund expenditures remained $7.5 million under budget. The result was an ending fund
balance of $33.7 million. As the chart below outlines, most of the ending balance is assigned for
future spending or adopted reserve levels, and not available for spending in conformance with
GASB 54.
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Nonspendable -
Assigned to:
Contingency Fund - 20% policy level 10,251,000$
Establishment of Section 115 Trust 1,400,000
Revenue Stabilization 1,000,000
Development Services 899,277
Risk Management 1,498,078
General Government 10,384,119
Public Safety 1,096,215
Unassigned 7,122,607
Total fund balance 33,651,296$
General Fund - Fund Balance June 30, 2020
The unassigned fund balance of $7.1 million represents the amount available for additional
spending. This includes $5.9 million in unassigned fund balance from 2018-19 that the City
Council left intact due to the uncertainties with the onset of the pandemic. The City Council
subsequently delegated authority to the City Manager to utilize up to $5.9 million for COVID -19
related expenses as the pandemic and the associated needs continued to evolve.
Enterprise Funds
The City maintains four Enterprise Funds for its Water and Sewer utility, and the Parking and
Transit enterprises. Enterprise Funds are business -type activities within government accounting
and are reported on separately.
The primary sources of revenue for the Water, Sewer, and Parking Funds are fees for sales and
services. Transit is largely funded through federal and state allocation to supplement farebox
revenue. Most revenue streams in these funds exceeded budget assumptions except for all
parking fees collected within the Parking Fund, Transit bus fares, and sales to Cal Poly in the
Water and Sewer Funds. All of these are impacts of the COVID-19 pandemic.
Apart from the Parking and Transit Fund, the Enterprise Funds ended the fiscal year 2019-20
positively with an increase in net position at year end. The Parking Fund experienced a decrease
in net position by $102,594 and the Transit Fund by $373,542 (CAFR page 35).
Though the Transit Fund was heavily impacted by the pandemic, it did receive funding through
the CARES Act that will make up the losses.
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CAFR Organization
In accordance with generally accepted accounting principles for state and local governments, the
City’s CAFR is organized into three major sections: Introduction, Financial Reports, and Statistical
Tables. The following is a brief summary of the contents of each of these sections.
Introduction. The Transmittal Memorandum and other information of general interest are
presented in this section, including directory of officials, advisory bodies, and organization chart.
Financial Reports. This section includes the City’s primary financial statements in five major
parts:
1. Auditors’ opinion regarding the financial statements.
2. Management’s discussion and analysis providing a narrative overview of City-wide
finances.
3. The basic financial statements presenting the government-wide results combining the
activities of the major funds (General, Capital Outlay and all Enterprise Funds) into
governmental and business-type categories; the fund financial statements; and the notes to
the financial statements.
4. Required supplementary information presenting the General Fund actual results with both
the original and final adjusted budgets.
5. Other supplemental schedules and financial statements providing financial information for
each of the City’s non-major governmental and agency funds. This includes a financial
schedule presenting Half Percent Sales Tax Measure revenues and uses in 2019-20 as
required by the City’s Municipal Code.
Statistical Tables. This section provides demographic and financial tables showing current and
historical trend information for the City and is organized into six major parts:
1. Statistical overview. General information about the San Luis Obispo community.
2. General financial trends. Ten-year summary information on net assets, governmental
revenues and expenditures and fund balances.
3. Revenue capacity. Ten-year summary information on property and sales tax trends.
4. Debt capacity. Ten-year summary information on debt service requirements.
5. Economic and demographic trends. Ten-year summaries of taxable sales, building
permits and valuations, housing, population and other demographic trends.
6. Operating information. Ten-year trend information on operating indicators by function.
Recognition for Excellence in Financial Reporting
Beginning in fiscal year 1983-84, all of the City’s CAFRs have been awarded the certificate of
achievement for excellence in financial reporting from the Government Finance Officers
Association of the United States and Canada (GFOA). This is a prestigious national award
recognizing the City’s use of the highest standards in preparing its annual financial report. The City
has submitted the award application for the 2018-19 CAFR, but due to COVID-19 the award
program is delayed. Staff will again apply to the program for the 2019-20 CAFR.
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Popular Annual Financial Report (PAFR)
In accordance with the Government Finance Officers’ Association (GFOA) Best Practices, the City
also publishes a popular version of the CAFR to make the information readily accessible and easily
understandable to the general public and other interested parties without a background in public
finance. The PAFR is available on the City’s website under:
https://www.slocity.org/government/department-directory/finance-and-it/online-documents/-folder-
1990
Policy Context
The City’s Charter under Section 810 requires the employment of an independent certified public
account to examine the City’s financials.
Public Engagement
The City’s annual audit and issuance of the Comprehensive Annual Financial Report fulfills a
legal requirement and does not have a public engagement component outside the required
presentation before Council during a public session.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2020-21
Funding Identified: Yes
Fiscal Analysis:
Funding Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing Cost
General Fund $75,000 $61,310 $13,690
State
Federal
Fees
Other:
Total $75,000 $61,310 $13,690
The City budgets the cost for the auditing firm annually. The cost is appropriated with the annual
budget approval. The current fiscal year contains a budget of $75,000 for the previous fiscal year
audit. Actual costs are anticipated to be $61,310.
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ALTERNATIVES
The City Council could decide to revise or not accept the Comprehensive Annual Financial
Report for fiscal year 2019-20. This is not recommended as the report has been prepared in
conformance with a variety of accounting and other reporting requirements and represent the
professional evaluation and analysis by the City’s independent auditors as required by the City
Charter. The auditors have rendered an unqualified opinion which means that the reports are
presented fairly and in conformity with generally accepted accounting principles.
Attachments:
a - COUNCIL READING FILE - Comprehensive Annual Financial Report 2020
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Department Name: City Attorney
Cost Center: 1500
For Agenda of: January 19, 2021
Placement: Public Hearing
Estimated Time: 30 minutes
FROM: Christine Dietrick, City Attorney
SUBJECT: EMERGENCY ENFORCEMENT AUTHORITY MUNICIPAL CODE
AMENDMENTS AND CLARIFICATIONS
RECOMMENDATION
Adopt an emergency ordinance clarifying City emergency enforcement authority and amending
Chapter 2.24 (Emergency Services) and chapter 9.22 (Safety Enhancement Zones) of the
Municipal Code to provide expressly for direct enforcement of local, state and federal emergency
rules, regulations, orders, directives, or other enactments related to the declaration of a local,
state or federal emergency affecting the City of San Luis Obispo and further clarifying the
meaning of the phrase “any lawful rule or regulation issued pursuant to this Chapter” as used in
Chapter 2.24.
DISCUSSION
Background
The City Council took prior action via Council Resolution 11099 and 11106 (2020 Series) to
declare a local emergency and to enact emergency measures for the administrative enforcement
of violations of any COVID-19 related public health and emergency orders against persons and
businesses that failed or refused to comply with public health orders (see specifically Section 6
of Reso. 11106). As the infection rate, hospitalizations and deaths throughout the nation, state,
County and City have continued to rise, the City has issued administrative citations with
enhanced penalties of $1,000 per violation for violations of state Purple Tier business operations
and social gathering restrictions, pursuant to the administrative enforcement authority enacted by
the Council. No citations were issued prior to extensive city publication of information regarding
requirements and intent to enforce public health orders and, in the case of businesses, none were
cited prior to extensive outreach and education efforts.
Since the City began issuing citations, the number of administrative citation appeals has risen
significantly. Most of the appeals are heard by volunteer hearing officers and the outcomes of
appeals have been inconsistent among hearing officers. A review of appeals outcomes suggests
that some of the outcomes clearly resulted from simple variations in underlying facts from case
to case and some resulted from persuasive information presented by appellants at hearing
suggesting that no violation had been sufficiently established. However, following review of
hearing officer outcomes and a recent COVID violation appeal hearing before the City’s
Administrative Review Board, it became clear that the City’s enforcement approach and
regulatory structure could be amended and clarified to ensure direct municipal code enforcement
authority of relevant public health measures.
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Policy Context
The City has consistently tried to educate and support the community in complying with publi c
health measures to mitigate or stop the spread of COVID-19 in order to advance the health and
safety of the community and to mitigate against the adverse economic impacts of long -term
restrictions and closures that were inevitable if the pandemic could not be adequately managed
and contained.
Chapter 2.24 of the City’s municipal code provides the Disaster Council (City Council) is
empowered “…to review and approve the emergency operations plan and mutual-aid plans and
agreements and such ordinances and resolutions and rules and regulations as are necessary to
implement such plans and agreements.” The Emergency Services Director (City Manager) is
authorized to “Request the city council to proclaim the existence or threatened existence of a
“local emergency” if the city council is in session, or to issue such proclamation if the city
council is not in session”, and, thereafter, “To make and issue rules and regulations on matters
reasonably related to the protection of life and property as affected by such emergency;
provided, however, such rules and regulations must be confirmed at the earliest practicable time
by the city council.” In this instance the Emergency Services Director recommended that the
Council act directly, via Resolution 11106, to adopt measures to authorize direct administrative
enforcement authority for violations of public health orders in order to compel compliance with
public health orders designed to mitigate and prevent the spread of COVID-19.
Concerns Raised by Administrative Citation Appeal
At an administrative appeal hearing held on January 7, 2021 on a citation issued to Kennedy
Club Fitness (KCF) in SLO for violation of state indoor gym operations restrictions, the City’s
three-member Administrative Review Board heard arguments raised by the Appellant’s (KCF’s)
legal counsel, continued the hearing to January 20, 2021, and requested further briefing from the
parties on the following:
1. Were the Resolutions adopted by the City Council “rules or regulations” as
contemplated under Chapter 2.24? (Counsel for the City argued that the resolutions
were valid “rules and regulations” pursuant to emergency authority; and legal counsel
for the Appellant argued that such rules and regulations could be enacted by
ordinance but were not validly enacted by resolution).
2. If the Resolutions are valid emergency “rules or regulations” under Chapter 2.24, are
there any rule making requirements, similar to those for federal rulemaking under the
federal Administrative Procedures Act, applicable to emergency rules and regulations
issued pursuant to Chapter 2.24. (Counsel for the appellant did not take a position on
this question from the ARB and the City argued that no such requirements apply to
the Council’s adoption of emergency rules and regulations via resolution or
otherwise. It remains the City’s position that Council action via resolution is an
appropriate exercise of emergency regulatory authority, either under Chapter 2.24 or
its otherwise applicable general police powers for the protection of public health and
safety).
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3. Do the Governor’s Emergency Orders and those of the State Public Health Officer
constitute enforceable emergency measures? (Appellant’s counsel argued that they
do not. The City asserted that the ARB lacks jurisdiction to invalidate the orders and
any such objections or legal challenges are properly directed to the State; the City is
merely enforcing State orders intended to curb the spread of COVID-19, as currently
enacted).
Counsel for Appellant and the City will be providing further briefing to the ARB in advance of
the hearing on January 20, 2021 at which time the ARB will deliberate and provide direction to
ARB legal counsel regarding its findings and conclusions supporting its final decision.
Thereafter, legal counsel for the ARB will prepare a proposed decision, which will have to be
reviewed, revised, and finalized at a yet a third public meeting of the ARB in compliance with
the Brown Act. The supplemental briefing submitted to the ARB will be provided to the Council
prior to its January 19 meeting so that the Council has a more thorough understanding of the
arguments and authority the ARB will be considering.
However, the pending appeal raises issues with the enforceability of the City’s current
emergency regulatory structure that may not be resolved for some time, creating uncertainty
regarding the City’s enforcement authority that may not be resolved for several weeks, in the
height of a continuing COVID-19 surge. Because staff believes that collective compliance with
public health measures is the most efficient, effective, and expedient path to relief from the
current state restrictions, and clear enforcement authority supports collective compliance, staff is
recommending emergency amendments to clarify and enhance the City’s enforcement tools.
Recommendations for Clarification and Enhancement of Code Enforcement Authority
Staff is recommending amendments to two Chapters of the municipal code, Chapter 2.24,
governing emergency powers and authority, and Chapter 9.22 establishing certain pre-
determined safety enhancement zone timeframes and providing the authority for council to enact
additional safety enhancement zones, by resolution, as necessary to address “…unique
conditions and circumstances during a specific period of time that create the potential for a
significant threat to public health and safety and that the threat would be reduced by enhanced
penalties for violations of provisions of the San Luis Obispo Municipal Code.”
In effect, the recommended amendments more clearly state and expressly codify in the municipal
code the authority of the Council and the Emergency Services Director to directly enforce
violations of any orders, directives and measures enacted by the County, State and Federal
governments that are applicable to the City and issued pursuant to a declared emergency. Staff
believes that authority is implicit in the emergency powers and can be made explicit via the
expedited issuance of emergency rules and regulations during an emergency, but staff believes
the express inclusion of that authority in the ordinance itself is beneficial for expedience, clarity,
and ease of communication of enforcement authority, so that no ambiguity remains in
circumstances where time is often of the essence.
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Similarly, the amendments to the safety enhancement zone provisions expressly designate
violations of Chapter 2.24, or validly enacted County, State or Federal emergency or Public
Health emergency measures issued under that Chapter, as subject to $1000 fines im mediately
upon declaration of emergency and for the duration of a declared emergency. The latter
amendment essentially makes the safety enhancement zone related to declared emergencies self -
executing, rather than requiring a Council resolution to activate the enhanced penalties
associated with a safety enhancement zone. The provision is intended to recognize the volatile
and fluid circumstances that are normally in play during declared emergencies, as well as the
reality that violations of emergency and public health orders, by definition, present a unique,
elevated, and immediate risk of harm to public health, safety, and welfare.
Previous Council or Advisory Body Action
The City Council took prior action via Council Resolution 11099 and 11106 (2020 Series) to
declare a local emergency and to enact emergency measures for the administrative enforcement
of violations of any COVID-19 related public health and emergency orders against persons and
businesses that failed or refused to comply with public health orders (see specifically Section 6
of Reso. 11106).
Public Engagement
The January 19, 2021 City Council meeting was duly noticed, and emergency or urgency
ordinances do not require additional pre-adoption notice or publication pursuant to California
Government Code §§ 36933 and 36937.
CONCURRENCE
The Emergency Services Director concurs with the recommended actions in this report.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under §21065 of the California Public
Resources Code because the clarifications in the ordinance do not create any direct or indirect
physical change in the environment. The ordinance simply clarifies sections for purposes of
existing enforcement and educational efforts for COVID-19 state and local health orders.
FISCAL IMPACT
The recommended amendments are not anticipated to have any fiscal impact, as the City’s
position remains that the current enforcement mechanisms are valid and, therefore, penalty
amounts assessed would be the same under either approach. The amendments are recommended
for clarity and ease of communication of enforcement authority and for elimination of ambiguity
of enforcement in emergency situations.
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ALTERNATIVES
1. Decline to adopt the emergency ordinance, await ARB decision and maintain current
enforcement approach if upheld. Not recommended as this approach risks continuing
ambiguity and delay in enforcement during the current COVID-19 surge.
2. Decline to adopt the emergency ordinance and direct staff to return with a non-emergency
ordinance. Not recommended because this approach leaves the City’s enforcement approach
in question for approximately two months pursuant to meeting schedules and normal
ordinance introduction and adoption timelines in the midst of a COVID-19 surge.
3. Direct changes to the emergency ordinance and adopt as amended.
Attachments:
a - Draft Emergency Ordinance
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O ______
ORDINANCE NO. _____ (2021 SERIES)
AN EMERGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SAN LUIS OBISPO, CALIFORNIA, AMENDING CHAPTER 2.24
(EMERGENCY SERVICES) AND CHAPTER 9.22 (SAFETY
ENHANCEMENT ZONES) OF THE MUNICIPAL CODE TO PROVIDE
EXPRESSLY FOR DIRECT ENFORCEMENT OF LOCAL, STATE AND
FEDERAL EMERGENCY RULES, REGULATIONS, ORDERS,
DIRECTIVES, OR OTHER ENACTMENTS RELATED TO THE
DECLARATION OF A LOCAL, STATE OR FEDERAL EMERGENCY
AFFECTING THE CITY OF SAN LUIS OBISPO AND FURTHER
CLARIFYING THE MEANING OF THE PHRASE “ANY LAWFUL RULE
OR REGULATION ISSUED PURSUANT TO THIS CHAPTER” AS USED
IN CHAPTER 2.24
WHEREAS, the City of San Luis Obispo is currently subject to local, state and federal
declarations of emergency related to the pandemic COVID-19; and
WHEREAS, the City and County have experienced increasing and significant rates of
infection, hospitalization, and death of residents within the City and County due to COVID-19;
and
WHEREAS, the City and County are currently subject to State Public Health and
Executive orders enacting limitations on certain activities and business operations that increase the
risk of transmission of COVID-19; and
WHEREAS, clear enforcement authority of public health and emergency measures
directly by the City is imperative to mitigating against the spread of COVID-19 and continuing
increases in illness, loss of life and extended economic damage associated with extended
limitations on and closures of businesses.
WHEREAS, there is an immediate and urgent need for clarification and amendment of the
City’s emergency and administrative enforcement provisions to ensure clear and consistent
enforcement of COVID-19 emergency and public health measures necessary to mitigate against
the risk of serious harm to citizens of the City as the result of COVID-19.
WHEREAS, failure to enact the provisions below as emergency measures could result in
the invalidation of City enforcement of urgent emergency rules and regulations intended to
mitigate and prevent the spread of COVID-19 within the City, resulting in the increase of activities
within the City that present a risk of continuing and increasing illness and death of residents in the
City due to COVID-19; and
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Ordinance No. _____ (2021 Series) Page 2
O ______
WHEREAS, failure or refusal of businesses within the city to comply with COVID-19
public health and safety requirements, and uncertainty regarding the City’s ability to enforce such
measures, may unfairly disadvantage businesses acting in good faith to abide by applicable health
and safety measures and result in an unfair advantage to businesses who violate or disregard such
measures,
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Findings. The Council hereby finds and declares the following:
a. During the existence of a declared local, state, or federal emergency, it is necessary for
the Emergency Services Director, the Disaster Council or the City Council to have clear
authority to act quickly and directly to enact such measures as are deemed necessary to
protect the health, safety and welfare of City operations and the residents of the City.
b. Express and unambiguous authority to enforce emergency and public health measures,
orders or directives issued by County, State and federal authorities will permit the City
to respond effectively to rapidly evolving emergency situations and take direct and
expedient action to implement and enforce emergency and public health and safety
measures necessary to protect the City organization and residents of the City.
c. It is the intent of the City Council that nothing herein is intended to or shall require the
City to undertake the direct enforcement of any emergency or public health measure,
order or directive issued by any County of San Luis Obispo, State of California or
Unites States jurisdictional authority authorized to issue or enact such measures, orders
or directives, but that the Emergency Services Director, the Disaster Council or the City
Council shall be empowered to enforce such measures, orders or directives, either
criminally or administratively, as a violation of the municipal code upon declaration,
order or resolution of the Emergency Services Director, the Disaster Council or the
City Council pursuant to Chapter 2.24 and their local emergency powers.
d. The addition of Section 2.24.060 A.6.f as set forth below is a declaration and
clarification of existing city law and, as such, the declaration of otherwise existing
emergency authority shall be applied in all instances, both prospectively and
retroactively.
e. The addition of Sections 2.24.100 D and E, as set forth in Section 3 below, is a
declaration and clarification of existing city law and, as such, the meaning of the phrase
“rule or regulation issued pursuant to this chapter” as set forth in section D and as used
elsewhere in this Chapter shall be applied in all instances, both prospectively and
retroactively.
f. The addition of Sections 2.24.100 F, as set forth in Section 3 below, is a declaration
and clarification of existing city law and, as such, the declaration and clarification of
existing emergency and legislative authority as set forth in Section F shall be applied
in all instances, both prospectively and retroactively.
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SECTION 2. Section 2.24.060 (Officers – Powers and Duties), subsection A.6, shall be
amended to add subsection f to read as follows:
f. Nothing herein shall limit or otherwise preclude the Disaster Council or City Council
from directly enacting measures or directing enforcement of measures in furtherance
of this Chapter or as deemed necessary by the City Council to protect the public health,
safety, and welfare, pursuant to any declared local, state, or federal emergency by any
lawful means otherwise available to them, including but not limited to, declaration,
proclamation, motion, minute order, resolution, or ordinance.
SECTION 3. Section 2.24.100 (Violation – Penalty) of the San Luis Obispo Municipal
Code shall be amended to read as follows:
It shall be a misdemeanor, punishable by a fine not in excess of five hundred dollars or by
imprisonment for a period not to exceed six months, or both, for any person, during an
emergency, to engage in the actions set forth in subsections A-C below:
A. Willfully obstruct, hinder, or delay any member of the emergency organization in the
enforcement of any lawful rule or regulation issued pursuant to this chapter, or in the
performance of any duty imposed upon him or her by virtue of this chapter.
B. Do any act forbidden by any lawful rule or regulation issued pursuant to this chapter,
if such act is of such a nature as to give, or be likely to give, assistance to the enemy or
to imperil the lives or property of inhabitants of this city, or to prevent, hinder or delay
the defense or protection thereof. Any violation of any duly enacted public health
measure to mitigate or prevent the transmission of a communicable disease that
presents a risk of serious illness or death to City residents or of any emergency measure
enacted to prevent the exposure of residents to shall be presumed “to imperil the lives
or property of inhabitants of this city”; and failure to remedy such violation after
direction by any authorized city personnel charged with enforcing such measures shall
be presumed “to prevent, hinder or delay the defense or protection thereof” for purposes
of this Chapter.
C. Wear, carry or display, without authority, any means of identification specified by the
emergency agency of the state. (Prior code § 2430.7)
D. As used in this Chapter 2.24, “rule or regulation issued pursuant to this chapter” means,
in addition to any duly adopted ordinance of the City, any duly adopted resolution,
proclamation, declaration or order of the City Council, the Disaster Council or the
Emergency Services Director in furtherance of their respective emergency powers
pursuant to a declared local (City or County), state or federal emergency affecting the
City of San Luis Obispo.
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E. As used in this Chapter 2.24, “rule or regulation issued pursuant to this chapter” shall
also include any emergency or public health measure, order or directive applicable in
the City and issued by any County of San Luis Obispo, State of California or Unites
States jurisdictional authority authorized to issue or enact such emergency or public
health measures, orders or directives, where the City Council, Disaster Council and/or
Emergency Services Director has authorized or directed the enforcement of such
measures pursuant to their powers under this chapter or their otherwise applicable
authority to take actions in furtherance of the health, safety and welfare of the city
organization and residents.
F. In addition to misdemeanor prosecution, nothing herein shall preclude enforcement of
violations of this Chapter by any means otherwise permitted by the San Luis Municipal
Code or other applicable law, including but not limited to administrative or civil
enforcement.
SECTION 4. Section 9.22.020 B (Safety Enhancement Zone Violations) of Chapter 9.22
(Safety enhancement zone penalties and violations) is amended to read as follows:
B. Safety Enhancement Zone Violations. Fines for violations committed in the safety
enhancement zone shall apply to the following provisions: Chapter 9.04 (possession of
open containers or consumption of alcoholic beverages in public places), Chapter 9.05
(hosting a gathering where underage persons consume alcohol), Chapter 9.12 (noise
control), Chapter 9.13 (unruly gatherings), Chapter 9.16 (dangerous and deadly
weapons), and Chapter 9.20 (urination in public). Violations of Chapter 2.24
(Emergency Services), or of any duly enacted rule or regulation pursuant to Chapter
2.24, or of any local (City or County of San Luis Obispo), State of California, or United
States emergency or public health emergency measure, order or directive issued
pursuant to any declared local, state, or federal emergency applicable within the City
shall be subject to enforcement throughout the geographic limits of the City under this
section immediately upon declaration of the emergency, and for the duration of the
declared emergency, and shall be subject to an immediate $1,000 penalty as an
immediate threat to public health or safety. A separate offense shall be deemed to have
been committed whenever a person repeats the act that constitutes the violation.
SECTION 5. All prior ordinances affecting the provisions herein are superseded to the
extent inconsistent herewith but shall otherwise remain in full force and effect.
SECTION 6. Urgent Need. Based on the foregoing recitals and findings, all of which are
deemed true and correct, this ordinance is urgently necessary as an emergency measure for the
immediate preservation of the public peace, health, or safety and, therefore, shall take effect
immediately upon adoption in accordance with the provisions of Article VI, Section 605 of the
City Charter and Section 36937(b) of the Government Code.
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SECTION 7. Publication. Within 15 days after its passage, the City Clerk shall cause a
summary of this Ordinance to be published at least once, with the names of those City Council
Members voting for and against the Ordinance, in a newspaper of general circulation published
and circulated in the city.
SECTION 8. Severability. If any provision of this Ordinance is held invalid by a court
of competent jurisdiction, such provision shall be considered a separate, distinct, and independent
provision and such holding shall not affect the validity and enforceability of the other provisions
of this Ordinance.
INTRODUCED and ADOPTED on the ____ day of ___________, 2021, by the Council
of the City of San Luis Obispo, 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, on ____________________________.
______________________________
Teresa Purrington
City Clerk
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