HomeMy WebLinkAbout7/21/2026 Item 6i, Tway - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: July 21, 2026
TO: Mayor and Council
FROM: Timmi Tway, Director of Community Development
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM #6.i – 2026 ANNUAL MONITORING FOR THE AVILA RANCH
DEVELOPMENT AGREEMENT, MITIGATION MEASURES, AND
PROJECT CONDITIONS
Staff received the following questions regarding the annual monitoring report for the Avila
Ranch Development Agreement, Mitigation Measures , and Project Conditions. The
questions are below with staff’s response shown in italics :
1) There is discussion in a couple places about drainage issues. On Page 229 of the
packet, it describes (under item c) some pooling of water and some pumping
mitigation measures that are being performed. Is this related to the same problem
that is addressed on page 234 of the packet, rela ted to Basin A? I’m just trying to
understand if there are other drainage issues on the site besides Basin A because
this came up a lot when I was on the Zone 9 Committee.
The drainage issues that have recently been experienced that are noted on page
229 are not related to Basin A. The pumping of stormwater noted on page 229 is
related to the temporary condition on the site created by the mass grading that is
currently underway. City staff have worked closely with the applicant to determine
the best way to ensure that drainage issues are addressed before the permanent
infrastructure is finished.
2) From Page 231 of the staff report, can you explain a little more about how this
works?
ITEM #6.i – 2026 Annual Monitoring Report for Avila Ranch Page 2
The developer is required to construct certain public improvements per the terms
of the entitlement approval, Conditions of Approval, and mitigation measures. The
project’s Development Agreement, and Reimbursement Agreements (Public and
Private) establish terms for the developer to be reimbursed for costs exceeding
their “fair share” for certain eligible improvements that they construct. For
improvements eligible for public reimbursement, the developer largely receives
reimbursement in the form of credits towards their Citywide Transportation
Improvement Fee (TIF) and Los Osos Valley Road (LOVR) Subarea TIF fees that
are due with each building permit until they have exhausted all available credits,
at which point they pay into the TIF programs.
3) The report states that the fire chief has decided we need a station in Avila Ranch
that can accommodate a 3-person company rather than a 2-person company. I
don’t know if you can answer this, but what is it that dictates this? Also, what is
the difference in cost that the city General Fund will have to cover because this is
not part of the DA.
The upgrade for Fire Station 5 from a two -person EMS unit to a three-person Fire
Engine is driven by extended response times to that area and need for fire
suppression services. While modern residences are being built with additional
safety measures, typical home furnishings and storage of hazardous materials
(fuels and batteries) often lead to exponential fire growth. Because the best
chance for a successful outcome is a fire suppression response while the fire is in
its initial growth phase, it was necessary to increase the station staffing from a two-
person EMS only unit to a three-person Fire Engine that can address these fire
suppression needs.
The Avila Ranch Developer is responsible for the costs of constructing a two -
person station, per the Development Agreement. The City will be responsible for
the cost increase associated with the slightly larger station and apparatus bay
necessary to accommodate a fire engine with a Firefighter, Engineer, and Captain.
The current estimate is that the City will be responsible for approximately
$440,000, which is the construction cost difference between a two - and three-
person station.