HomeMy WebLinkAbout09-06-2016 Item 12 Memorandum of Agreement between City and Councy regarding the City's Sphere of Influence Meeting Date: 9/6/2016
FROM: Michael Codron, Community Development Director
Prepared By: Xzandrea Fowler, Community Development Deputy Director
SUBJECT: MEMORANDUM OF AGREEMENT BETWEEN THE CITY AND THE
COUNTY REGARDING THE CITY’S SPHERE OF INFLUENCE
RECOMMENDATION
Authorize the Mayor to enter into and sign a Memorandum of Agreement (Attachment A)
between the City of San Luis Obispo and the County of San Luis Obispo Regarding the Sphere
of Influence.
DISCUSSION
The Local Agency Formation Commission (LAFCO) has prepared a Sphere of Influence (SOI)
Update and a Municipal Service Review (MSR) for the City in accordance with the requirements
of the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (CKH Act). The
purposes of the SOI Update and MSR are to analyze the City’s capability to serve existing and
future residents and to establish an SOI boundary for the City’s probable growth and service area
over the next 20 years.
The Sphere of Influence (SOI) helps identify probable urban boundaries, discourages sprawl and
helps preserve open space between communities. The SOI also provides for more efficient
provision of public services and is consistent with the policies of the San Luis Obispo LAFCO .
The existing SOI boundary reflects City policies regarding growth, development and urban
services, including those identified in the recently updated Land Use, Circulation and Housing
Elements of the General Plan and is consistent with LAFCO’s policies. Therefore, no additional
properties or changes to the SOI boundary are being considered as part of this proposed SOI
Update. The SOI Update and MSR consist of textual (i.e., updated goals and polices) and
graphical (i.e., tables, maps, etc.) changes, see Attachment B for the Draft SOI and MSR and
Attachment C for the proposed changes to be incorporated into the final version.
Background
The Cortese-Knox-Hertzberg (CKH) Local Government Reorganization Act of 2000 is the
section of the State Government Code (Government Code §§ 56000 et seq) that requires the
Local Agency Formation Commission (LAFCO) to update the Spheres of Influence (SOI) for all
applicable jurisdictions in the County of San Luis Obispo (County). LAFCOs were created by
the State of California to ensure orderly growth of and the provision of services by cities,
independent service districts, and countries. LAFCO consists of seven members and four
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alternates, appointed from and by the governing bodies (City Councils, independent special
districts, Board of Supervisors) of the jurisdictions served, plus one public representative and
alternate appointed by LAFCO. Among other things, LAFCO has final decision-making
authority over SOI boundaries, annexations and detachments, and special district boundaries.
Sphere of Influence
A Sphere of Influence (SOI) is defined by Government Code 56425 as “…a plan for the probable
physical boundary and service area of a local agency or municipality…” A SOI is generally
considered to be a 20-year, long range planning tool, however there is no requirement that areas
identified in the SOI be annexed within that period nor does it create a requirement to deliver
municipal services to these areas, for example there are areas identified in the SOI that have not
been addressed in the City’s General Plan, such as SOI Study Area #3 - Orcutt Area, located east
of Orcutt Road, which the City has not identified for future development or annexation, but is
included in the SOI boundary because it is largely built out with Residential Suburban land uses
that are in close proximity to the City. For this reason, the SOI is an important tool used by
LAFCO to plan for future annexations. For a property to be annexed into the City it must be
inside the approved SOI boundary. The SOI does not convey legal authority for development. It
is a planning and policy tool used by LAFCO to consider future areas to be served by a
jurisdiction. Nor does it change land use categories or give a property owner any more land use
entitlements than already exist with a particular property. The SOI does not define or identify
specific development projects, change or modify zoning, or grant land use entitlements.
The City’s existing SOI was adopted in 2006 and includes approximately 5,930 acres beyond the
City limits consisting of nine areas. The nine areas include are identified as 1) Cal Poly, 2)
Florita-Alrita, 3) Orcutt, 4) Broad Street, 5) Airport, 6) Chevron, 7) LOVR/101, 8) San Luis
Ranch, and 9) Cerro San Luis. A map of the existing SOI is provided in Exhibit A of Attachment
A. The recommended SOI includes the same study areas, and would not result in any changes to
the SOI boundary.
Since the adoption of the existing SOI five proposals have been considered and approved by
LAFCO. In 2007, the Margarita/Airport Area was annexed which was comprised of
approximately 1,100 acres. In 2010, the Madonna/Gap annexation was approved (i.e. the Target
shopping center), which consisted of 118 acres of which 19 acres were preserved for agriculture.
In 2011, the Orcutt Area was annexed consisting of 230 acres with 79 acres preserved in
agriculture and open space. In 2015, a small, less than one acre, parcel (Farmhouse Lane) was
annexed.
Municipal Service Review
CKH Act further requires that a Municipal Service Review (MSR) be conducted prior to, or in
conjunction with, the update of a SOI. The MSR evaluates the capability of a jurisdiction to
serve their existing residents for future development in their SOI (Attachments B and C). The
MSR addresses the following seven factors:
1. Growth and population projections for the affected area.
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2. Location and characteristics of any disadvantaged unincorporated communities.
3. Present and planned capacity of public facilities and adequacy of public services
including infrastructure needs or deficiencies.
4. Financial ability of agencies to provide services.
5. Status of, and opportunity for, shared facilities.
6. Accountability for community service needs including governmental structure and
operational efficiencies.
7. Any other matter related to effective or efficient service delivery, as required by
commission policy.
Memorandum of Agreement
As part of the SOI Update process, the CKH Act provides an opportunity for the City and the
County to meet and reach agreement on the SOI boundaries, development standards and zoning
requirements for the areas of the sphere to be amended. Agreement on these matters is
documented and approved by the City and County in the form of a Memorandum of Agreement
(MOA). The CKH Act gives LAFCO power to “approve or disapprove with or without
amendment, wholly, partially or conditionally LAFCO is required to give “great weight” to an
approved agreement between the City and County when considering the SOI Update.
The draft MOA that is included in Attachment ‘A’ was developed in coordination with City,
County and LAFCO staff involving a series of meetings to discuss revisions, and covers the
areas of most interest to the City. In the draft MOA, the City and County agreed to maintain the
City’s existing SOI boundary, and to the extent of development standards and zoning processes
for proposed projects. The general approach of the draft MOA was to ensure close coordination
and cooperation between the City and County on the future planning and development of the
areas within the City’s SOI boundary. The provisions address regional coordination on various
interests including growth management, circulation, open space, fire and emergency response
services and preservation of agricultural lands. Key provisions of the draft MOA include the
following:
1. Written documentation to use other jurisdictions’ service as a way to mitigate an impact
to services;
2. Referral of projects in the fringe area to the City and County;
3. Inclusion of growth management policies;
4. Fair distribution of mitigation/impact fees;
5. Meeting among emergency response agencies to discuss impacts and fiscal issues;
6. Prior City review of projects submitted to County & written documentation that the City
will not consider annexing the project; and
7. Coordination of the City and County agricultural and open space policies.
The draft MOA will enhance the communication between the City and the County and helps to
clarify the process for development within the SOI area, and includes relevant goals from
specific Elements of each jurisdiction’s General Plan.
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LAFCO Review
LAFCO staff worked closely with City and County staff to 1) collect accurate data on land use,
demographics, and services, 2) understand the City’s and the County’s policies and regulatory
framework, and 3) solicit input during the preparation of the draft SOI Update and the MSR
documents. LAFCO released the draft SOI Update and MSR for the City of San Luis Obispo for
public review on June 16, 2016.
Next Steps
Following City Council consideration of the MOA, the Board of Supervisors will consider it on
September 13, 2016. Once the MOA is executed by the City and the County, LAFCO will be
considering the following actions as part of this SOI Update: 1) approve and adopt the
environmental documentation pursuant to CEQA, 2) approve a MSR for the City of San Luis
Obispo, and 3) approve and adopt the San Luis Obispo SOI Update.
CONCURRENCES
Police, Fire, Utilities, Administration, Natural Resources, Parks and Recreation, Finance, Public
Works and Community Development staff have reviewed the draft MOA and SOI Update and
concur with the recommended actions.
ENVIRONMENTAL REVIEW
Execution of a Memorandum of Agreement between the City and the County regarding the
City’s Sphere of Influence is not a Project as defined in CEQA Guidelines Section 15387, and
would therefore not be subject to CEQA review. However, LAFCO, acting as the lead agency for
the SOI Update and MSR will prepare the environmental review for those items . Additionally,
the Program Environmental Impact Report (SCH#2013121019) that was prepared for the City’s
LUCE Update analyzed the environmental impacts associated with the SOI boundary and the
policies that are being incorporated into the SOI Update and MSR.
FISCAL IMPACT
There are no fiscal impacts associated with the recommended actions. Staff participation in this
SOI Update effort has been covered by the Community Development Department’s current
budget.
ALTERNATIVES
1. Make changes to the draft MOA.
2. Recommend changes to the SOI Update Boundary.
3. Continue the item for more information or discussion. There is no specific deadline or
time limit for Council action; LAFCO has targeted the end of this year for completion of
the SOI Update for the City of San Luis Obispo.
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Attachments:
a - Memorandum of Agreement Between the City of San Luis Obispo and the County of
San Luis Obispo Regarding the City's Sphere of Influence
b - Draft SOI Update and MSR 2016
c - LAFCO Recommended Changes to the Draft SOI Update and MSR
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Memorandum of Agreement 1 City of San Luis Obispo and County of San Luis Obispo
June 17, 2016
MEMORANDUM OF AGREEMENT
BETWEEN THE CITY OF SAN LUIS OBISPO AND
THE COUNTY OF SAN LUIS OBISPO
REGARDING THE CITY’S SPHERE OF INFLUENCE
This Agreement between the City of San Luis Obispo (hereafter “City”) and the County
San Luis Obispo County (hereafter “County”) is entered into by the City on this 6th day of
September , 2016, and by the County on this 13th day of September 2016.
WITNESSETH
WHEREAS, the Cortese/Knox/Hertzberg Act of 2000 (“the Act”) requires the Local
Agency Formation Commission (LAFCO) to update the Spheres of Influence for all applicable
jurisdictions in the County every five years, as needed; and
WHEREAS, a Sphere of Influence is defined by the California Government Code 56076
as a plan for the probable physical boundaries and service area of a local agency; and
WHEREAS, pursuant to Government Code 56425 the Sphere of Influence has been
identified by the County of San Luis Obispo and the City of San Luis Obispo as shown in
Exhibit A; and
WHEREAS, the Act further requires that a Municipal Service Review be completed prior
to or, in conjunction with, the update of a Sphere of Influence in accordance with Section 56430
of the California Government Code as a means of identifying and evaluating public services
provided by the City of San Luis Obispo and changes to the City’s Sphere of Influence; and
WHEREAS, a Municipal Service Review as stated above has been completed and shall
be considered by LAFCO when establishing the City’s Sphere of Influence; and
WHEREAS, the City and County have reached agreement regarding the boundaries
(Exhibit A), development standards, and zoning requirements (Exhibit B) of the Sphere of
Influence to ensure the orderly and logical development of these areas; and
WHEREAS, the City’s General Plan provides a clear policy base for growth and
development in the Sphere of Influence areas and defines policies and programs that the City
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will implement to ensure the preservation of the agricultural land, open space and the rural
character of San Luis Obispo; and
WHEREAS, the County’s General Plan goals in Framework for Planning and the San
Luis Obispo Area Plan call for Community Separators to provide for a community’s distinctive
identity and preserve the rural character of the areas between and on the fringes of communities
and cities; and
WHEREAS, the City and County intend to cooperate regarding growth and development
on the urban fringe of the City and in the referral area shown in Exhibit C; and
WHEREAS, LAFCO is required by Government Code 56425 (b) to give great weight to
this agreement in making the final determination regarding the City’s Sphere of Influence.
NOW, THEREFORE, be it resolved that the parties agree as follows:
1. The Sphere of Influence boundary contained in Exhibit A provides for the orderly and
logical growth for the City of San Luis Obispo and represents a potential 20-year growth
boundary (2015-2035) based on available information.
2. The development standards and zoning requirements contained in Exhibit B provide a
framework for completing updates to the General Plans of both the City and the County
for the areas in the Sphere of Influence.
3. The development standards and zoning requirements contained in Exhibit B are intended
to provide the City and the County with the basis for developing specific land use
policies and standards for the areas in the City of San Luis Obispo Sphere of Influence
and do not supersede or limit the planning or environmental review process of either
jurisdiction.
4. The City’s and County’s General Plan policies including those found in Exhibits D and E
shall be used to guide the logical and orderly development of these Sphere Areas while
preserving agricultural and open space lands.
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_____________________________
Mayor, City of San Luis Obispo
APPROVED AS TO FORM AND LEGAL EFFECT:
____________________________
City Attorney
Dated:_______________________
ATTEST:
____________________________
City Clerk
Dated:_______________________
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______________________________
Chairperson, Board of Supervisors
County of San Luis Obispo
APPROVED AS TO FORM AND LEGAL EFFECT:
______________________________
County Counsel
Dated:________________________
ATTEST:
____________________________
County Clerk
Dated:_______________________
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EXHIBIT A
SPHERE OF INFLUENCE BOUNDARY MAP
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EXHIBIT B
DEVELOPMENT STANDARDS AND ZONING REQUIREMENTS
The following development standards and zoning requirements are agreed to and shall be used
by the City of San Luis Obispo and the County of San Luis Obispo to develop specific land use
policies and standards within the proposed Sphere of Influence as shown in Exhibit A and to
update their General Plans.
1. Intent. It is the intent of the County and the City to work cooperatively towards the
goal of developing the agreed upon Sphere of Influence (as sh own in Exhibit A) in an
orderly and logical manner consistent with the Cortese/Knox/Hertzberg Act, the City
and County General Plans, the California Environmental Quality Act and any other
applicable laws and regulations.
2. Impact Mitigation. In evaluating any development, the agency considering approval
(City or County) should rely solely on its ability to provide the required services to
that development. The City and the County shall not presume any services will be
provided by the other agency without documenting that such services will be
provided.
Development/mitigation fees needed to offset the impacts from projects approved by
either jurisdiction in the Referral Area (Exhibit C) shall be collected and distributed
in a fair and equitable manner. These fees shall be paid to the City and/or the County
in proportion to the location and degree of project impacts; however the total fees
paid shall not exceed the cost to mitigate the specific project impact. Mitigation to
offset significant impacts to fire, law enforcement, emergency medical services, water
and wastewater treatment services, roads and streets, other public services, and
housing, shall be incorporated into the conditions of approval for projects on a case
by case basis. Documentation shall be provided that identifies the project’s fiscal,
infrastructure, housing, and services impacts to both the City and the County and
shall be considered as part of the development review process. The documentation
shall be used to prepare conditions of approval and to allocate impact fees where
allowable and as appropriate.
3. Regional Circulation. The City and County shall work together to improve regional
circulation such that future growth should provide for an improved circulation system
that would promote maximum connectivity between different parts of the City by
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planning for and/or constructing new roads, walkways, bike paths, transit facilities,
or other means based on Vehicle Miles Travel (VMT) data; cost sharing agreements
associated with the future development of City’s Capital Improvement Projects
(CIPs) that have regional circulation benefits. These regional circulation
improvements may include, but are not limited to, improvements to Highway 227,
Prado Road overcrossing, widening of Tank Farm Road, the LOVR traffic relief
project, etc. Associated fiscal impacts and appropriate mitigation measures for
development on the fringe shall be given special attention.
4. Fire and Law Enforcement Services. Costs associated with fire and emergency
response services shall be given special attention. The County and City Planning
Staff shall meet with the City’s Police and Fire Chief and the County Sheriff and Fire
Department Chief regarding development in the unincorporated areas that would
impact the fire and emergency response service levels including those services to
open space and trails. The purpose of this meeting is to identify and discuss fiscal and
resource impacts of development related to fire and emergency services, service
delivery impacts of development on the fringe, and appropriate mitigation measures.
5. Interagency Cooperation. The City and the County shall work cooperatively to plan
for future land uses and public services and facilities to improve and maintain area
circulation connections, and to preserve agricultural land and open space. The County
and City will consider the creation and implementation of various assessment and
financing mechanisms for the construction and maintenance of public improvements,
such as roads, utilities, recreation and trail improvements, parks and open space, and
similar improvements that could serve visitors and residents of the City and the
County. Discretionary development projects and General Plan Amendments within
each agency’s jurisdiction shall be referred to the other for review and comment prior
to action on a development proposal. The County shall seek the City’s comments
regarding these projects in the referral area map found in the County’s San Luis
Obispo Area Plan (Exhibit C). The City shall seek the County’s comments regarding
projects that affect the unincorporated area found in Exhibit C. Face to face meetings
are encouraged for any high-level projects to ensure the goals of each agency are
being met. When a discretionary project application is accepted for processing, it
shall be referred to the following contact person(s) for early review and comment:
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Deputy Director, Deputy Director,
Permitting & Policies and Programs Long Range Planning
County of San Luis Obispo City of San Luis Obispo
Department of Planning and Building Community Development Department
County Government Center 990 Palm Street
San Luis Obispo, CA 93408 San Luis Obispo, CA 93401-3249
This provision shall not supersede other methods of commenting or providing
feedback regarding a proposal or project.
6. Sphere of Influence. The County shall, to the extent legally possible, limit
development within the City’s Sphere of Influence (SOI) to those uses allowed by the
County General Plan. The County shall give the great weight to the City’s General
Plan policies when reviewing development in the City's Sphere of Influence.
a. City Review. For projects submitted to the County for consideration, as part of
the pre-application meetings and as part of processing the application, the County
shall request written documentation that indicates the City Council’s position
regarding annexation into the City. This documentation shall be provided by the
City in a timely manner that does not delay the County’s processing of the land
use application. During this time, the County shall continue to process the land
use application as required under the law.
b. Development Review Coordination. Larger regional projects proposed within
the referral area shown in Exhibit C, and subject to an Initial Study under CEQA,
shall cause on a case-by-case basis the City and County representatives to request
a meeting prior to completion of the Initial Study. The purpose would be to
discuss the City’s and County’s General Plan policies with regard to the project
and to identify any key issues that may need special attention during the CEQA
process.
7. Agriculture and Open Space. The City and the County shall work together to
preserve the agricultural and open space resources in the SOI area using the City’s
Greenbelt and Open Space policies, the County’s Agriculture and Open Space
Policies including the transfer development credit program or other programs as
appropriate. The criteria contained in the County’s Agriculture and Open Space
Element, listed in Exhibit D, and the pertinent policies in the City’s General Plan
(Exhibit E), shall be addressed in the preparation of any land use entitlements and
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Environmental Impact Reports. Impacts that are not deemed substantial or do not
create a significant change to the protection of agricultural and/or open space may not
need to be addressed in the EIR.
8. EnergyWise Plan. The City and the County shall work together to implement the
EnergyWise Plan (EWP) adopted by the County in order to implement the goals
established by the Conservation and Open Space Element of the County’s General
Plan to decrease energy use, increase renewable energy generation, reduce solid
waste generation, improve efficient use of water, modernize transportation systems,
and improve agricultural practices. The criteria contained in the County’s Open Space
Element, and the pertinent policies in the City’s General Plan (Exhibit E), shall be
addressed in the preparation of any land use entitlements and Environmental Impact
Reports.
9. General Plan Amendment. The City intends to complete environmental review, pre-
zoning, pre-annexation, and any necessary pre-general plan amendment activities
prior to or concurrent with an annexation proposal being processed by LAFCO. The
County intends to complete any necessary amendments to its General Plan in the San
Luis Obispo Area Plan to reflect the annexation of territory to the City of San Luis
Obispo.
10. Zoning Requirements/Specific Plan. Prior to annexation, the City shall complete
pre-zoning and environmental review consistent with its General Plan. CEQA review
shall include analysis of issues, including but not limited to the following: a reliable
and adequate water supply, sewer capacity, public services, cumulative traffic
circulation, agricultural buffers, jobs-housing balance, use of transfer development
credits, and affordable housing opportunities.
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EXHIBIT C
SAN LUIS OBISPO AREA PLAN - PROJECT REFERRAL MAP
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EXHIBIT D
COUNTY’S GROWTH POLICIES: AGRICULTURAL ELEMENT; CONSERVATION OPEN
SPACE ELEMENT; & ENERGYWISE PLAN
Agricultural Element
Policy #4: Agricultural Use of Small Parcels
Policy #14: Agricultural Preserve Program
Policy #15: Transfer of Development Credits (TDC)
Policy #16: Agricultural Land Conservation Programs
Policy #17: Agricultural Buffers
Policy #24: Conversion of Agricultural Land
Policy #25: Unique or Sensitive Habitat
Conservation and Open Space Element
Policy #OS1.1: Future Open Space Protection
Policy #OS1.4: Retention of Public Lands for Open Space
Policy #OS1.7: Open Space Resource Protection
Policy #OS2.1: Open Space Management to Protect, Sustain and Restore
Policy #OS4.1: Define Urban Areas to Prevent Sprawl
Policy #OS4.2: Maintain Community Separators
Goal E1: Sustainable Supply of Energy for all County Residents
Goal E3: Promote Energy Efficiency and Conservation
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AGRICULTURAL RESOURCES
AGP4: Agricultural Use of Small Parcels.
a. Encourage the establishment of small-scale agriculture uses, specialty crops, and
specialized animal facilities on existing small land parcels in the Agriculture land-
use category.
Discussion: The purpose of this policy is to encourage agricultural uses and discourage rural
residences as the principal use on existing small agriculturally-zoned parcels. The Land Use
Element and Land Use Ordinance already recognize and encourage these uses as appropriate and
allowable uses in the Agriculture land use category. This will encourage the best use of
agricultural land and will help minimize conflicts with surrounding agricultural uses and
agriculturally-zoned parcels.
Implementation: In order to better make people aware of the benefits of locating operations
devoted to specialty crops and specialized animal facilities (as defined in the LUE and LUO) in
agricultural areas of the county, the Agriculture Department, the Department of Planning and
Building, and agricultural organizations and agencies should advise existing and prospective
owners of smaller agricultural properties about the benefits of locating these uses on properties
designated Agriculture, rather than in residential areas where land is likely to be more expensive
and land use conflicts are more likely to occur between the agricultural activities and residential
neighbors. This policy is to be implemented through day-to-day public contact with persons who
desire to establish small-scale agricultural specialty uses on property they already own or are
considering for purchase.
AGP14: Agricultural Preserve Program.
a. Encourage eligible property owners to participate in the county’s agricultural
preserve program.
Discussion: Through 1995, cropland and grazing lands involved approximately
1,160,400 acres (including acreage in the Conservation and Reserve Program) or 55
percent of the total county area (2,122,240 acres) and accounted for approximately 74
percent of privately-owned lands in the county. The agricultural preserve program
continues to be the primary program for long-term protection of agricultural land in the
county. A Land Conservation Act (Williamson Act) contract provides tax incentives for
land owners to participate in the program in exchange for agreeing to keep their
properties in large parcels and in agricultural uses for minimum terms of 10 or 20 years,
depending on property location. A contract reduces property taxes to reflect the
production value of agricultural land, thereby promoting long-term agricultural use.
The county has a strong agricultural preserve program. Between 1980 and January 1,
1998, approximately 109,200 acres have been added to the contracted lands. However,
there has still been pressure to convert agricultural land to non-agricultural use. Since
adoption of the Land Use Element/Land Use Ordinance system in 1980, over 3,000 acres
of land have been rezoned from the Agriculture category to non -agricultural land use
categories in the unincorporated areas of the county.
The pressure for conversion can also be seen in statistics compiled by the California
Department of Conservation, the agency that oversees the state's Williamson Act
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program. Those statistics show that while the county had approximately 769,200 acres
under Williamson Act contract as of January 1, 1998, notices of non-renewal are filed on
approximately 8,000 acres of these contracted lands.
The county should continue to support incentives to encourage land owners to participate
in the agricultural preserve program. These incentives can include such things as the
continued subsidization of application processing fees for new agricultural preserves, as
well as timely processing of land use permit applications for agriculturally-related
development on lands under agricultural preserve contracts. Detailed policies to maintain
and strengthen the agricultural preserve program are described in the county “Rules of
Procedure to Implement the California Land Conservation Act of 1965,” as adopted by
the Board of Supervisors.
The state legislature has also recognized that additional incentives are needed to expand
options for landowners who wish to gain longer term farmland protection than otherwise
available through a conventional Williamson Act contract. Amendments to the Land
Conservation Act in 1998, added a new option called a “farmland security zone.” Under
this amendment to the Act, land owners may voluntarily rescind an existing contract in
order to simultaneously enter into a new contract designating the property as a farmland
security zone. The term of the contract shall be not less than 20 years, with an automatic
annual one year extension of the initial term unless a notice of nonrenewal is filed by the
owner.
Lands covered by a contract in a farmland security zone will receive additional protection
through tax valuation provisions in the Revenue and Taxation Code, application at a
reduced rate of any special tax approved by the voters for urban -related services,
limitations on the annexation of lands under such a designation and contract to a city or
special district, and a prohibition against a school district declaring local zoning
regulations inapplicable to lands to be used or acquired by the district. The county should
amend its Rules of Procedure to incorporate this legislation, inform holders of existing
Williamson Act contracts of this new option and assist any interested owners in applying
it to their land.
In another tax-related matter, family farmers should be made aware of the opportunity to
measurably reduce federal death taxes by electing to use Internal Revenue Service
Section 2032A (Special Use Valuation). A summary of qualifications for that section is
included in the county Rules of Procedure referenced above
Implementation:
1. As an incentive for land owners to participate in the agricultural preserve
program, the county should continue to provide a subsidy to the application filing
fees for processing applications to establish agricultural preserves. In addition,
the Department of Planning and Building shall provide timely processing of land
use permit applications for agriculturally related development on land subject to
Williamson Act contract. Timeframe: Ongoing.
2. The County Agricultural Preserve Review Committee should consider, and
recommend to the Board of Supervisors, proposed amendments to the county
Rules of Procedure to incorporate recent changes to the Land Conservation Act
(Williamson Act) that provide for the creation of “farm security zones,” and
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recommended procedures by which a landowner may voluntarily enter into a new
contract designating the property in such a zone.
Timeframe: 12 months from plan adoption.
AGP 15: Transfer of Development Credits (TDC).
a. Continue to utilize a voluntary TDC program to help protect agricultural resources
by guiding development to more suitable areas.
Discussion: The adopted TDC program is applicable in the inland areas of the county, not in the
coastal zone. As noted in Framework for Planning of the LUE, a TDC program is a planning tool
that “...allows the right to develop (called credits) to be separated from one site (the sending site)
and moved to another (the receiving site). The transfer of the credits reduces the development
possible on the sending site and increases the development possible on the receiving site.” The
program is “...voluntary, incentive-based, and market-driven between willing sellers and willing
buyers. Land owners are not obligated to use this technique to request an amendment to the
general plan or to subdivide property in conformance with existing regulations.”
Framework for Planning contains an important statement about the objectives of the TDC
program, as follows:
“The primary purpose of the TDC program is to promote appropriate settlement patterns
while maintaining an overall level of development within the service capacities of
transportation and other public service systems. As a countywide program it endeavors
to: protect both land with agricultural capability and the business of agriculture itself;
reduce development potential within land divisions or other areas that do not have
adequate services for residents; protect important or extraordinary natural areas, habitats
or cultural resources; reduce development potential in areas that may have the potential
for landslides, fires, or other hazards; and reduce air quality impacts associated with
locating residential development distant from jobs, schools, shopping and recreation.”
The TDC program can be an effective way to direct growth and development away from
agricultural areas, thereby reducing potential conflicts with agricultural activities. This voluntary
program can also help the owner of agricultural lands achieve the value of the potential
development without having to sell the property or otherwise develop it. Use of the TDC program
may also offer potential tax benefits to the property owners, but that will depend on the
circumstances of each ownership.
The TDC ordinance is adopted in the Land Use Ordinance which sets out the procedures and
standards for its use. The county should continue to encourage landowners to consider using the
TDC ordinance as another available tool to meeting their needs. Amendments should also be
proposed to the Local Coastal Plan that would allow the use of TDC’s in the coastal zone.
Implementation:
1. Ongoing through the voluntary action of land owners.
2. Prepare proposed amendments to the LCP that would add the voluntary TDC program as
an available land use tool in the coastal zone.
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Timeframe: 18 months from plan adoption.
AGP16: Agricultural Land Conservation Programs.
a. Encourage and support efforts by non-profit and other conservation organizations
to protect agricultural lands and maintain agricultural production.
b. Consider establishing a limited county program to acquire conservation easements
or development rights from willing land owners. Such programs should encourage
maximum flexibility for agricultural operations.
Discussion: There are a number of organizations active in farmland protection programs. Private
non-profit conservation organizations include the San Luis Obispo Land Conservancy, The
Nature Conservancy, and the American Farmland Trust.
The San Luis Obispo Land Conservancy provides assistance to land owners interested in
protecting agricultural, aesthetic and ecological values on their land. They offer counseling and
assistance in establishing conservation easements, transfer of development credits, estate
donation, and other conservation programs.
The American Farmland Trust (AFT) is a national organization dedicated to the conservation of
productive farmland. AFT increases public awareness of agricultural issues, provides technical
assistance to government agencies and private organizations, and engages in individual farmland
conservation real estate transactions.
The Coastal Conservancy is a state agency also actively engaged in farmland preservation
programs in California coastal counties. The Coastal Conservancy has been active in San Luis
Obispo County, working on projects with incorporated cities, as well as in the unincorporated
areas of the county.
In 1998, the county was successful in securing a grant from the Agricultural Land Stewardship
Program (see discussion in chapter 1) to assist in the investigation of the potential impacts of
antiquated subdivisions on areas of intensifying agriculture. The grant funding will enable the
compilation of a database of the antiquated subdivisions in areas of the county where agricultural
intensification is occurring, especially vineyards, so as to assess the potential impact to
agriculture if the underlying lots are developed with non-agricultural uses. When completed, that
evaluation should help provide further direction to the goals and policies of this general plan
element, as well as to the Land Use Element. The county should continue to actively pursue
participation in this grant program as future funds become available to address agricultural issues.
The following acquisition strategies are examples of some of the measures that could be carried
out by conservation organizations or by the county. In all cases they should be accomplished
between willing buyers and sellers. In those limited instances where the County may be an
active participant, the primary focus of these strategies should be on purchase of easements
and development rights, rather than the outright purchase of agricultural lands. While any
of the potential programs could have costs and operational concerns, there may be some limited
application in appropriate circumstances, although public purchase may be the most problematic
due to limited public funds.
The following strategies are not an all-inclusive list and other creative methods will need to be
developed and implemented over time.
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Purchase of Development Rights and Conservation Easements. The purchase of development
rights (PDR) from a willing seller retires development potential through deed restrictions, leaving
land owners all other rights of ownership except the right to sell homesites or to establish other
types of development, for which the rights have voluntarily been extinguished. Land owners may
receive income and estate tax benefits, in addition to protecting local agricultural areas from
conversion to other uses. However, there could also be tax penalties due to capital gains tax.
Land owners can also choose to enter into conservation easements to protect agricultural land. A
"Bargain Sale Conservation Easement" allows the land owner to receive cash income, but
provides a way to offset increased capital gains tax.
Purchase and Resale or Lease with Restrictions. This strategy involves purchasing land and
placing restrictions on its use and development. The land is then resold at a reduced market price
that reflects the land use restrictions. The end result is equivalent to purchase of development
rights. This concept may be more appropriate for entities other than the County to enter into.
Fee Simple Purchase and Lease-Back. This strategy protects farmland through outright
purchase. Both real property and estate tax problems can be solved for farmers who sell their land
to a public agency or conservation organization. Fee simple purchase can be very costly. This
strategy should be considered the lowest priority by the County and may be most appropriate for
other conservation organizations to pursue.
Long-term Conservation Lease. Where agricultural lands also contain open space resources that
are worthy of protection, such as riparian habitat, scenic qualities, etc., but the land owner is not
interested in selling the property or the development rights, an alternate approach may be to enter
into long-term conservation leases. Similar to the provisions of a Williamson Act contract, such a
lease could offer protection of the resources for an extended period of time, while also offering
the property owner a revenue stream that will enable maintenance of the agricultural activities.
The lease could be held by a conservation organization, with the term of the lease automatically
renewed annually for another year similar to a Williamson Act contract. This, and other creative
methods of resource conservation, should be explored more fully.
Implementation:
1. The Department of Planning and Building, in cooperation with the county Agriculture
Department and U.C. Cooperative Extension, should assist agricultural and conservation
organizations in developing and implementing programs to conserve agricultural land.
The agencies should prepare a public information brochure for distribution to the
agricultural community making them aware of the advantages of participating in such
programs.
Timeframe: 12 months from plan adoption.
2. In cooperation and coordination with conservation organizations and other jurisdictions,
the county should explore the possibility of establishing a program to protect agricultural
lands by purchasing development rights and conservation easements from willing sellers,
by offering long-term conservation easements, or through other innovative programs.
Timeframe: To be determined by Board of Supervisors after plan adoption.
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3. The County should actively pursue grant funds under provisions of the Agricultural Land
Stewardship Program Act of 1995, to assist with the implementation measures contained
in this Agriculture Element. Timeframe: Ongoing after plan adoption.
AGP17: Agricultural Buffers. a. Protect land designated Agriculture and other lands in production
agriculture by using natural or man-made buffers where adjacent to non-agricultural land uses in
accordance with the agricultural buffer policies adopted by the Board of Supervisor (see Appendix
C).
Discussion: New residential and other non-agricultural uses that are proposed adjacent to
agricultural land or uses may result in land use conflicts. Residential and other non-agricultural
uses can be adversely affected by odors, noise, dust and pesticide use. Farmers and ranchers are
affected by resident complaints and lawsuits, pilferage of vegetables and fruits, increased
incidence of trespass, theft and vandalism, disturbance of livestock by dogs and people,
introduction of plant and animal pests and diseases harmful to agricultural uses, increased
potential for fire on dry farm and grazing lands, and competition for available water resources.
The LUO contains a number of location and setback standards to separate existing residential
areas and uses from potentially incompatible agricultural uses such as feedlots, poultry ranches,
or hog farms. In addition, the Board of Supervisors has adopted policies for establishing buffers
between agricultural areas and non-agricultural development in order to minimize possible land
use conflicts. A further modification to those policies should be considered that would include a
provision for public disclosure that a buffer has been applied to a property as part of the county's
approval of a discretionary land use permit. The disclosure would provide notice to prospective
buyers and sellers that such a restriction applies.
Implementation:
1. The County Department of Agriculture shall review applications for land divisions, lot
line adjustments, land use permits and proposed general plan amendments for consistency
with the agricultural buffer policies adopted by the Board of Supervisors (see Appendix
C).
Timeframe: Ongoing.
2. The Department of Planning and Building, the County Department of Agriculture, and
agricultural industry groups should develop proposed amendments to the Agricultural
Buffer Policy establishing a disclosure process (similar to that found in the Right-to-Farm
Ordinance, Title 5 of the County Code) that would inform potential buyers and sellers of
properties that, as part of the county's approval of a discretionary land use permit, an
agricultural buffer has been applied to a property.
Timeframe: 24 months from plan adoption.
AGP24: Conversion of Agricultural Land.
a. Discourage the conversion of agricultural lands to non-agricultural uses through the
following actions:
1. Work in cooperation with the incorporated cities, service districts, school
districts, the County Department of Agriculture, the Agricultural Advisory
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Liaison Board, Farm Bureau, and affected community advisory groups to
establish urban service and urban reserve lines and village reserve lines that
will protect agricultural land and will stabilize agriculture at the urban
fringe.
2. Establish clear criteria in this plan and the Land Use Element for changing
the designation of land from Agriculture to non-agricultural designations.
3. Avoid land redesignation (rezoning) that would create new rural residential
development outside the urban and village reserve lines.
4. Avoid locating new public facilities outside urban and village reserve lines
unless they serve a rural function or there is no feasible alternative location
within the urban and village reserve lines.
Discussion: The purpose of this policy is twofold: to protect agricultural land at the urban fringe
by limiting the expansion of urban development; and to discourage urban/suburban sprawl by
preventing "leapfrog" development into the agricultural areas of the county.
Agricultural land is often converted to other uses for a variety of reasons, including: urban growth
pressures, rising land values and speculation, competition between urban and agricultural uses,
the desirability of large-lot rural homesites, subdivision of agricultural properties into parcels too
small to sustain agricultural uses, piecemeal LUE amendments to non-agricultural land use
categories, and a lack of policies that clearly define under what circumstances agricultural lands
should be converted to other uses and land use designations in the general plan. This conversion
of agricultural land has the potential to seriously erode the long-term protection of agricultural
resources.
Even with the strong Williamson Act program in the county, there has been pressure to convert
agricultural lands to other non-agricultural uses. Since adoption of the LUE in 1980, over 3,000
acres of land have been rezoned from the Agriculture category to non-agricultural land use
categories in the unincorporated areas of the county.
Statistics from the state Department of Conservation’s farmland mapping program show that in
the period between 1984 and 1995 (the last year for which statistics are available), there was an
overall decrease in agricultural land of about 14,800 acres. There was a net increase of Prime
Farmland due to intensification (primarily irrigated vineyards); however, the net acreage of
Farmland of Statewide Importance also declined by 783 acres.
The LUE contains a number of general goals that focus on the environment, distribution of land
uses, phasing of urban development, and the provision of public services and facilities. Consistent
with those goals, specific criteria should be developed for when it may be appropriate to convert
agricultural lands to other uses. The criteria should include, but not necessarily be limited to, the
following:
** Do not expand existing urban or village areas until such areas are largely built -out, or
until such time as additional land is needed to accommodate necessar y uses or services
that cannot otherwise be accommodated within the existing urban or village area.
** Urban or village expansion should occur only where contiguous to an existing
urban/village reserve line, as shown in the concept diagram in Figure 2-5, or where an
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entirely new urban or village area is needed in order to direct development away from
surrounding agricultural or open space resources.
** Where urban expansion is to occur, it shall be annexed to an incorporated city or an
existing community services district/county service area. The annexation shall occur only
where the clustered development from rural property is to be located adjacent to the
urban area, or when higher density development is to occur and where such development
is consistent with resource and service capabilities and orderly extension of urban
services.
** Where agricultural land is proposed for conversion to urban/suburban uses, give
consideration to the protection of agricultural lands in the following priority order: row
crop terrain and soils, specialty crops and forage lands, dry farm lands, and rangelands
for grazing.
** Approve land for conversion from Agriculture to non-agriculture designations based
upon a detailed site specific evaluation and consistency with the following findings:
a. the land does not meet the criteria for inclusion in the Agriculture designation in
this plan or the Land Use Element; and
b. agricultural production is not feasible due to some physical constraint (such as
soil infertility, lack of water resource, disease), or surrounding incompatible land
uses; and
c. adjacent lands are already substantially developed with uses that are incompatible
with agricultural uses; and
d. the conversion to non-agricultural uses shall not adversely affect existing or
potential agricultural production on surrounding lands that will remain
designated Agriculture; and
e. there is an over-riding public need for the conversion of the land that outweighs
the need to protect the land for long-term agricultural use, such as the orderly
expansion of an incorporated city or community.
** Approval of land conversions from agriculture to non-agricultural land uses will include a
finding that the conversion will not materially reduce groundwater recharge.
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Implementation:
1. In cooperation with the incorporated cities and service districts, consider the criteria
described in the above discussion to develop policies and implementation measures that
will provide for the protection of agricultural lands as well as appropriate urban
expansion.
2. Based on the results from item #1 above, consider proposed amendments to Framework
for Planning of the LUE that incorporates those policies and implemen tation measures
into the guidelines for general plan amendments and revise the purpose and character
statements for the Agriculture category so they are consistent with those criteria.
Timeframe: 24 months from plan adoption.
3. The Local Agency Formation Commission (LAFCO), in cooperation with the
incorporated cities and service districts, should develop and adopt standards, criteria and
procedures consistent with this plan and the LUE to be used in making decisions on
proposed annexations and expansions of cities and service districts that may affect
agricultural lands.
Timeframe: LAFCO adoption 18 months from adoption by the county of the criteria
specified in item #1 above.
4. Refer proposed general plan amendment requests and proposed annexations and
expansions of service districts to the County Department of Agriculture and affected
community advisory groups whenever the proposal involves potential conversion of
agricultural lands.
Timeframe: Ongoing.
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AGP25: Unique or Sensitive Habitat.
a. Encourage private landowners to protect and preserve unique or sensitive habitat.
b. For new development requiring a discretionary permit and for proposed land divisions,
protect unique or sensitive habitat affected by the proposal through the following
measures:
1. Site the proposed development so as to avoid significant impacts on the habitat or
significant impacts on the agricultural operations. Provide for adjustments in
project design where alternatives are infeasible, more environmentally damaging,
or have a significant negative impact on agriculture.
2. When significant impacts are identified, the landowner shall implement county-
approved mitigation measures consistent with the existing requirements of
CEQA.
Discussion: Consistent with the existing requirements of CEQA, the environmental review of
discretionary permits on lands containing both agricultural and open space resources should make
every effort to balance the mitigation of potential impacts on the open space resources with the
needs of the agricultural operation so that both resources are equally protected. Early consultation
with applicants can help define how the potential mitigation measures might affect the
agricultural operation. In those instances where significant impacts on the open space resources
are identified, county approved mitigation measures shall be implemented consistent with the
existing requirements of CEQA.
Implementation/Timeline: On-going through CEQA review of discretionary projects.
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OPEN SPACE RESOURCES
Policy OS 1.1 Future Open Space Protection
Continue to identify and protect open space resources with the following characteristics:
Recreation areas
Ecosystems and environmentally sensitive resources such as natural area preserves,
streams and riparian vegetation, unique, sensitive habitat, natural communities;
significant marine resources
Archaeological, cultural, and historical resources
Scenic areas
Hazard areas
Rural character
Implementation Strategy OS 1.1.1 Use of up-to-date science
Incorporate up-to-date scientific information and techniques into programs to identify, protect, and
manage open space resources.
Policy OS 1.4 Retention of public lands for open space
Retain land in public ownership that has potential for recreation, wildlife habitat and management,
conservation of ecosystems, water conservation, or scenic, historic, or other important open space
purposes.
Implementation Strategy OS 1.4.1 Retention of public lands
Do not remove land from the public domain without careful study to determine its value to any
government agency or the public.
Implementation Strategy OS 1.4.2 Acquisition and disposal of other public lands
Review and comment on new plans and policies such as those involving acquisitions and disposal of
land proposed by federal, state, and local agencies and private conservation organizations. Refer
major or controversial proposals to the Board of Supervisors.
Implementation Strategy OS 1.4.3 Disposal of public lands
Work with local, state, and federal agencies and conservation organizations to identify lands that are
suitable for disposal and exchange. An inventory of these lands should be prepared for review by the
Board of Supervisors to determine the appropriate course of action. The County should consider
placing permanent agricultural or conservation easements on public lands prior to sale or transfer to
public or private ownership.
Implementation Strategy OS 1.4.4 Land Use Element amendments for rural lands
Prepare proposed amendments to the purpose and character statements for the Open Space land use
category in Framework for Planning of the Land Use Element to include all rural lands designated
Multi-Use Public Lands that are not used or planned for active recreation or other intensive public
uses.
Implementation Strategy OS 1.4.5 Land Use Element amendments for open space
Prepare proposed amendments to the Land Use Element to change the land use category to Open
Space where major land holdings are owned by conservation organizations for protecting open space
resources.
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Policy OS 1.7 Open space resource protection
Protect open space resources by guiding development away from rural areas to more suitable areas.
Implementation Strategy OS 1.7.1 TDC program
Consider programs to better protect open space resources by guiding development away from rural
areas to more suitable areas (e.g. land banking or TDC).
Policy OS 2.1 Open space management to protect, sustain and restore
Manage open space resources on public lands to protect, sustain, and, where necessary, restore the
resources. Encourage such management strategies on private lands.
Policy OS 4.1 Define urban areas to prevent sprawl
Prevent urban sprawl by maintaining a well-defined boundary between urban/village boundaries and
surrounding rural areas.
Policy OS 4.2 Maintain community separators
Maintain permanent separations between communities in order to retain the rural character of the
county. (Also refer to the Community Separators section of Visual Resources Chapter.)
Implementation Strategy OS 4.2.1 Land Use Element Amendments:
RL designations Prepare proposed amendments to the purpose and character statement for the Rural
Lands land use category in the Framework for Planning of the Land Use Element to state that the
Rural Lands category is also applied near urban and village areas in order to maintain a clear
distinction between urban/village and rural areas and to provide maximu m flexibility and options in
planning for future orderly growth in urban areas. Prepare public review draft amendments by the end
of 2010.
ENERGY RESOURCES
Goal E1: The County will have an environmentally sustainable supply of energy for all county residents.
Goal E3: Energy efficiency and conservation will be promoted in both new and existing development.
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EXHIBIT E
CITY’S GROWTH MANAGEMENT POLICIES: LAND USE ELEMENT
Land Use Element Growth Management Policies and Programs
Policy 1.1. Overall Intent
Policy 1.2. Urban Separation
Policy 1.3. Build-out Capacity
Policy 1.4. Urban Edges Character
Policy 1.5. Jobs/Housing Relationship
Policy 1.6. Regional Planning
Policy 1.7. City Size and Expansion
Policy 1.8. Greenbelt
Policy 1.9. Prime Agricultural Land
Policy 1.10. Residential Clustering for Open Space Protection
Policy 1.11. Growth Rates & Phasing
Policy 1.12. Educational and Government Facilities
Policy 1.13. Annexation and Services
Program 1.14. Countywide Planning
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GROWTH MANAGEMENT
As part of the General Plan Update, integrating the concept of sustainability was an important
aspect of the State grant. In reviewing the General Plan, a number of sustainability practices
were already included in the General Plan. For existing and new policies and programs that
support sustainability, this icon is shown at the end of the policy / programs title. See
Policy 1.1.1, below, as an example.
POLICIES
1.1. Overall Intent
1.1.1. Growth Management Objectives
The City shall manage its growth so that:
A. The natural environment and air quality will be protected.
B. The relatively high level of services enjoyed by City residents is maintained or enhanced.
C. The demand for municipal services does not outpace their availability.
D. New residents can be assimilated without disrupting the community's social fabric, safety, or
established neighborhoods.
E. Residents' opportunities for direct participation in City government and their sense of
community can continue.
1.1.2. Development Capacity and Services
The City shall not designate more land for urban uses than its resources can be expected to
support.
1.2. Urban Separation
Broad, undeveloped open spaces should separate the City from nearby urban areas. This element
establishes a final edge for urban development.
1.3. Build-out Capacity
There should not be major expansion of the urban reserve line because the urban reserve provides
adequate capacity for new housing and employment up to the City’s desired maximum. This element
seeks to establish an ultimate population capacity.
1.4. Urban Edges Character
The City shall maintain a clear boundary between San Luis Obispo's urban development and
surrounding open land. Development just inside the boundary shall provide measures to avoid a stark-
appearing edge between buildings in the city and adjacent open land. Such measures may include:
using new or existing groves or windrows of trees, or hills or other landforms, to set the edge of
development; increasing the required side-yard and rear-yard setbacks; and providing open space or
agricultural transition buffers.
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1.5. Jobs/Housing Relationship
The gap between housing demand (due to more jobs and college enrollment) and supply should not
increase.
1.6. Regional Planning
The City shall encourage regional planning and growth management throughout the county, and in
cooperation with neighboring counties and the State.
1.7. City Size and Expansion
1.7.1. Urban Reserve
The City shall maintain an urban reserve line containing the area around the city where urban
development might occur (Figure 3, Land Use Diagram).
Urban uses within this line should only be developed if consistent with City-approved plans. Non-
urban agricultural, open space, and wildlife corridor uses are also encouraged within the urban
reserve, as interim or permanent uses shown on City-approved plans.
1.7.2. Expansion Areas
The City shall designate expansion areas adequate for growth consistent with these policies within
the urban reserve line (Figure 3, Land Use Diagram).
1.7.3. Interim Uses
Expansion areas should be kept in agriculture, compatible with agricultural support services, or
open-space uses until urban development occurs, unless a City-approved specific plan provides
for other interim uses.
1.8. Greenbelt
(See also Section 6, Resource Protection)
1.8.1. Open Space Protection
Within the City's planning area and outside the urban reserve line, undeveloped land should be
kept open. Prime agricultural land, productive agricultural land, and potentially productive
agricultural land shall be protected for farming. Scenic lands, sensitive wildlife habitat, and
undeveloped prime agricultural land shall be permanently protected as open space.
1.8.2. Greenbelt Uses
Appropriate greenbelt uses include: watershed; wildlife habitat; grazing; cultivated crops; parks
and outdoor recreation (with minimal land or landscape alteration, building, lighting, paving, or
use of vehicles, so rural character is maintained); and home sites surrounded by land of sufficient
size and appropriately located with respect to topography and vegetation to maintain the open
character.
1.8.3. Commercial Uses in Greenbelt
The City shall not allow commercial development within the greenbelt area unless it is clearly
incidental to and supportive of agriculture or other open space uses.
1.8.4. Parcel Sizes and Density
The City shall discourage the County from creating new parcels within the greenbelt, with the
exception of those permitted under Policy 1.10. Outside of clusters, allowed parcel sizes within
the greenbelt should be no less than 10 acres and preferably 20 acres or larger.
1.8.5. Building Design and Siting
All new buildings and structures should be subordinate to and in harmony with the surrounding
landscape. The City should encourage County adoption of regulations prohibiting new structures
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on ridge lines or in other visually prominent or environmentally sensitive locations, and allowing
transfer of development rights from one parcel to another in order to facilitate this policy.
1.8.6. Wildlife Habitat
The City shall ensure that continuous wildlife habitat – including corridors free of human
disruption - are preserved, and, where necessary, created.
1.8.7. Trees Outside City Limits
The City shall preserve significant trees, particularly native species, outside its limits and in the
greenbelt on lands owned or leased by the City or for which the City has an easement. For other
areas in the greenbelt, the City will work with the County, Cal Poly, and other public agencies to
protect these trees.
1.9. Prime Agricultural Land
1.9.1. Agricultural Protection
The City shall support preservation of economically viable agricultural operations and land within
the urban reserve and city limits. The City should provide for the continuation of farming through
steps such as provision of appropriate general plan designations and zoning.
1.9.2. Prime Agricultural Land
The City may allow development on prime agricultural land if the development contributes to the
protection of agricultural land in the urban reserve or greenbelt by one or more of the following
methods, or an equally effective method: acting as a receiver site for transfer of development
credit from prime agricultural land of equal quantity; securing for the City or for a suitable land
conservation organization open space or agricultural easements or fee ownership with deed
restrictions; helping to directly fund the acquisition of fee ownership or open space easements by
the City or a suitable land conservation organization. Development of small parcels which are
essentially surrounded by urbanization need not contribute to agricultural land protection.
1.10. Residential Clustering for Open Space Protection
1.10.1. Parcel Sizes
In the greenbelt, the City may allow, and the City shall encourage the County to allow, smaller
parcel sizes only when:
A. All new dwellings will be clustered contiguously;
B. At least 90% of the site area is permanently protected as open space;
C. Agricultural easements are placed on prime agricultural lands outside the cluster.
1.10.2. Means of Protection
The City shall require that open space be preserved either by dedication of permanent easements
or transfer of fee ownership to the City, the County, or a responsible, nonprofit conservation
organization.
1.10.3. Public Access
Areas preserved for open space should include public trail access, controlled to protect the natural
resources, to assure reasonable security and privacy of dwellings, and to allow continuing
agricultural operations. Public access through production agricultural land will not be considered,
unless the owner agrees.
1.10.4. Design Standards
The City shall require cluster development to:
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A. Be screened from public views by land forms or vegetation, but not at the expense of habitat.
If the visually screened locations contain sensitive habitats or unique resources as defined in
the Conservation and Open Space Element, development should be avoided in those areas and
instead designed to cluster in the form of vernacular farm building complexes, to blend into
the traditional agricultural working landscape.
B. Be located on other than prime agricultural land and be situated to allow continued
agricultural use;
C. Prohibit building sites and roads within stream corridors and other wetlands, on ridge lines,
rock outcrops, or visually prominent or steep hillsides, or other sensitive habitats or unique
resources as defined in the Conservation and Open Space Element.
D. Preserve historic or archaeological resources.
1.11. Growth Rates & Phasing
1.11.1. Overall Intent
The City shall manage the city’s growth rate to provide for the balanced evolution of the
community and the gradual assimilation of new residents. Growth must be consistent with the
City's ability to provide resources and services and with State and City requirements for
protecting the environment, the economy, and open space.
1.11.2. Residential Growth Rate
The City shall manage the growth of the city's housing supply so that it does not exceed one
percent per year, on average, based on thresholds established by Land Use Element Table 3,
excluding dwellings affordable to residents with extremely low, very low or low incomes as
defined by the Housing Element. This rate of growth may continue so long as the City's basic
service capacity is assured. Table 3 shows the approximate number of dwellings and residents
which would result from the one percent maximum average annual growth rate over the planning
period. Approved specific plan areas may develop in accordance with the phasing schedule
adopted by each specific plan provided thresholds established by Table 3 are not exceeded. The
City Council shall review the rate of growth on an annual basis in conjunction with the General
Plan annual report to ensure consistency with the City’s gradual assimilation policy.
Table 3. One Percent City Population Growth Projection
Year Approximate Maximum Number
of Dwellings*
Anticipated Number of People
2013 20,697 45,541
2015 21,113 46,456
2020 22,190 48,826
2025 23,322 51,317
2030 24,512 53,934
2035 25,762 56,686
Estimated urban reserve capacity: 57,200
* 2013 population based on CA Department of Finance data and projected based on 1% annual growth.
1.11.3. Phasing Residential Expansions
Before a residential expansion area is developed, the City must have adopted a specific plan or a
development plan for it. Such plans for residential expansion projects will provide for phased
development, consistent with the population growth outlined in Table 3, and taking into account
expected infill residential development.
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1.11.4. Nonresidential Growth Rate
Each year, the City Council shall evaluate the actual increase in nonresidential floor area over the
preceding five years. The Council shall consider establishing limits for the rate of nonresidential
development if the increase in nonresidential floor area for any five-year period exceeds five
percent. Any limits so established shall not apply to:
A. Changed operations or employment levels, or relocation or ownership change, of any business
existing within the City at the time the limit is set;
B. Additional nonresidential floor area within the Downtown core (Figure 4);
C. Public agencies; and
D. Manufacturing, light industrial, research businesses, or companies providing a significant
number of head of household jobs.
1.12. Educational and Governmental Facilities Near the City
1.12.1. Overall Policy
The City shall continue to communicate with nearby government and educational institutions to
address proposed changes in numbers of workers, students, or inmates that have the potential to
result in significant adverse land use or circulation impacts on the City or may negatively
influence the City’s ability to manage growth.
1.12.2. Cal Poly
The City shall encourage Cal Poly not to change its 2001 Master Plan enrollment targets in a way
that would exceed campus and community resources. The City shall encourage Cal Poly to
provide additional on-campus housing, enhanced transit service, and other measures to minimize
impacts of campus commuting and enrollment. Cal Poly should actively engage the community
during updates or amendments to the Campus Master Plan and fully mitigate impacts to the City,
including environmental and quality of life impacts to nearby neighborhoods.
1.12.3. California Men’s Colony
The City shall continue to communicate and cooperate with the California Men's Colony (CMC)
to identify resource constraints and to avoid adverse impacts of increased inmate population.
1.12.4. Cuesta Community College
The City supports Cuesta College’s efforts to offer courses at satellite campuses, on-line courses,
and enhanced transit service to avoid housing and commuting impacts of increasing enrollment at
Cuesta College.
1.13. Annexation and Services
1.13.1. Water and Sewer Service
The City shall not provide nor permit delivery of City potable water or sewer services to the
following areas. However, the City will serve those parties having valid previous connections or
contracts with the City.
A. Outside the City limits;
B. Outside the urban reserve line;
C. Above elevations reliably served by gravity-flow in the City water system;
D. Below elevations reliably served by gravity-flow or pumps in the City sewer system.
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Figure 4. Downtown Planning Area and Core
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1.13.2. Recycled Water
Provision of recycled water outside of City limits may only be considered in compliance with
Water and Wastewater Element Policy A 7.3.4 and the following findings:
A. Non-potable/recycled water is necessary to support continued agricultural operations.
B. Provision of non-potable/recycled water will not be used to increase development potential
of property being served.
C. Non-potable/recycled water will not be further treated to make it potable.
D. Prior to provision of non-potable/recycled water, the property to be served will record a
conservation, open space, Williamson Act, or other easement instrument to maintain the
area being served in agriculture and open space while recycled water is being provided.
1.13.3. Annexation Purpose and Timing
The City may use annexation as a growth management tool, both to enable appropriate urban
development and to protect open space. Areas within the urban reserve line which are to be
developed with urban uses should be annexed before urban development occurs. The City may
annex an area long before such development is to occur, and the City may annex areas which are
to remain permanently as open space. An area may be annexed in phases, consistent with the
city-approved specific plan or development plan for the area. Phasing of annexation and
development will reflect topography, needed capital facilities and funding, open space
objectives, and existing and proposed land uses and roads.
1.13.4. Annexation of Cal Poly
The City should analyze the cost/benefits of annexing Cal Poly.
1.13.5. Annexation in Airport Area
Properties in the Airport Area Specific Plan may only be annexed if they meet the following
criteria:
A. The property is contiguous to the existing city limits; and
B. The property is within the existing urban reserve line; and
C. The property is located near to existing infrastructure; and
D. Existing infrastructure capacity is available to serve the proposed development; and
E. A development plan for the property belonging to the applicant(s) accompanies the
application for annexation; and
F. The applicant(s) agree to contribute to the cost of preparing the specific plan and
constructing area-wide infrastructure improvements according to a cost -sharing plan
maintained by the City.
1.13.6. Required Plans
The City shall not allow development of any newly annexed private land until the City has
adopted a specific or development plan for land uses, open space protection, roads, utilities, the
overall pattern of subdivision, and financing of public facilities for the area.
1.13.7. Development and Services
The City shall approve development in newly annexed areas only when adequate City services
can be provided for that development, without reducing the level of public services or increasing
the cost of services for existing development and for build-out within the City limits.
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1.13.8. Open Space
The City shall require that each annexation help secure permanent protection for areas
designated Open Space, and for the habitat types and wildlife corridors within the annexation
area that are identified in the Conservation and Open Space Element. Properties, which are
both along the urban reserve line and on hillsides, shall dedicate land or easements for about
four times the area to be developed (developed area includes building lots, roads, parking and
other paved areas, and setbacks required by zoning). (See also Policy 6.4 and Policies 6.4.1 –
6.4.7). The following standards shall apply to the indicated areas:
A. Airport Area Specific Plan properties shall secure protection for any on-site resources as
identified in the Conservation and Open Space Element. These properties, to help maintain
the greenbelt, shall also secure open space protection for any contiguous, commonly owned
land outside the urban reserve. If it is not feasible to directly obtain protection for such land,
fees in lieu of dedication shall be paid when the property is developed, to help secure the
greenbelt in the area south of the City's southerly urban reserve line.
B. San Luis Ranch property (outside the city limit and generally bounded by Highway 101 and
Madonna Road) shall dedicate land or easements for approximately one-half of the
ownership that is to be preserved as open space.
C. Foothill Annexation: The northern portion of the Foothill property, and the creek area shall
be annexed as open space. Development on this site should be clustered or located near
Foothill Boulevard, with the northern portion of the site and creek area preserved as open
space.
1.13.9. Costs of Growth
The City shall require the costs of public facilities and services needed for new development be
borne by the new development, unless the community chooses to help pay the costs for a
certain development to obtain community-wide benefits. The City shall consider a range of
options for financing measures so that new development pays its fair share of costs of new
services and facilities which are required to serve the project and which are reasonably related
to the new growth attributable to the development.
1.13.10. Solid Waste Capacity
In addition to other requirements for adequate resources and services prior to development, the
City shall require that adequate solid waste disposal capacity exists before granting any
discretionary land use approval which would increase solid waste generation.
1.13.11. Plans Summary
The City will shall provide information to SLOCOG so that it can maintain a current summary of
the land use plans of all agencies in the county, showing areas designated for urban, rural, and
open-space uses, and tabulating the capacities for various kinds of uses.
1.13.12. Regional Growth Management
The City shall advocate a regional growth-management program, which should include:
A. Population growth no faster than the statewide average growth rate for the preceding year,
and no faster than can be sustained by available resources and services, whichever is less.
B. No significant deterioration in air quality, due to development activities for which local
government has approval.
C. Plans for large residential developments to include a range of housing types to provide
opportunities for residents with very low, low, or moderate incomes.
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D. Voter approval for any significant change from Open Space, Agriculture, or Residential Rural
designations to another designation.
PROGRAMS
See also Section 12, Implementation
1.14. Countywide Planning
1.14.1. County “RMS”
The City will monitor reports from the County “resource management system” and advocate
adherence to that system’s principle of assuring that there will be adequate resources and
environmental protection before development is approved.
1.14.2. Regular Coordination Meetings
The City shall advocate and help arrange quarterly coordination meetings among planning
directors of local jurisdictions in San Luis Obispo County, SLOCOG, LAFCO, Cal Poly, and APCD to
discuss regional issues.
1.14.3. Project Review
The City will continue to participate with the County in reviewing and providing input on County
projects and general plan amendments that have the potential to impact the City or be
inconsistent with City policies. Significant issues will be referred to the Planning Commission
and/or City Council.
1.14.4. Consistent Plans
The City shall seek County Board of Supervisors approval amending the County Land Use
Element to make it consistent with this element within San Luis Obispo's planning area. The City
will work with the County during updates of the County's plan for the San Luis Obispo planning
area.
1.14.5. City-County Agreement
The City shall maintain a memorandum of understanding with the County, pledging that neither
agency will approve a substantial amendment to its plan for San Luis Obispo's planning area
without carefully considering the comment and recommendation of the other agency. The key
feature of the memorandum would be the City's acceptance of the planned amount of growth
and the County's agreement to not allow urban development within the planning area but
outside the City.
1.14.6. Refined Planning Area Map
The City shall prepare and maintain a Planning Area Map in the General Plan. The City will seek
to establish and maintain County concurrence for the map, which applies to the City’s Planning
Area outside the urban reserve, including the City’s sphere of influence. The map will show:
A. Areas to be kept in permanent open space, including scenic lands, sensitive wildlife habitat,
and undeveloped prime agricultural land.
B. Existing uses other than open space, relatively far from the City's urban reserve line, which
may be maintained but which should not be expanded or made more intense, including
institutional uses such as California Men's Colony, Camp San Luis Obispo, and Cuesta
College, and scattered residential and commercial developments.
C. Existing uses other than open space which may be considered for inclusion within the urban
reserve line during the ten-year updates of this element, such as nearby groups of rural
homesites.
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D. Any existing uses other than open space which should be changed, relocated, or removed to
allow restoration of the natural landscape or agricultural uses.
1.14.7. Maintain Development Fee Program
The City shall maintain a development fee program that covers the costs associated with serving
projects with City services and facilities. This maintenance will include periodic review of the
fees collected to ensure they are adequate to cover City costs.
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Attachments
A: Public Review Draft
SOI/MSR/CE
B: Draft Memorandum of
Agreement (MOA)
C: Recommended Sphere
of Influence Map
TO: MEMBERS, FORMATION COMMISSION
FROM: DAVID CHURCH, AICP, EXECUTIVE OFFICER
DATE: JUNE 16, 2016
SUBJECT: STUDY SESSION-CITY OF SAN LUIS OBISPO SPHERE
OF INFLUENCE UPDATE/MUNICIPAL SERVICE
REVIEW (NO ACTION REQUIRED)
Recommendation. It is respectfully recommended that the Commission
consider the information provided at this study session and provid e
comments to staff as appropriate.
Summary. This study session is to provide the Commission and public
with information regarding the City of San Luis Obispo Sphere of
Influence and Municipal Service Review Update. Attached is the Public
Review Draft SOI/MSR Update describing the various population trends,
water supply and demand, and governmental structure of the City.
Chapter one is an Introduction and Executive Summary to the document.
Chapter two contains the Sphere of
Influence Update and Chapter three the
updated Municipal Service Review.
Because no changes to the Sphere of
Influence are proposed a Categorical
Exemption was determined to be
appropriate and can be found in
Appendix A. The Draft Memorandum of
Agreement would be schedule for
consideration by the City and County late
summer is in Appendix B.
Background. The Sphere of Influence Update and Municipal Service
Review for the City of San Luis Obispo have been drafted and released
for public review on June 16. The Public Review includes a 45-day
period for all interested parties to comment on the documents. The
comment period for the Draft documents ends on August 1, 2016. The
documents are available online at www.slolafco.com or a CD can be
obtained for free by calling the LAFCO office. Hard copies are available
at a cost of $13.00.
Study Session. During this study session staff will brief the Commission
and the public with regard to the Sphere of Influence Update and
Municipal Service Review prepared for the City of San Luis Obispo. Staff
will summarize the information and determinations found in the draft
documents.
LAFCO - San Luis Obispo - Local Agency Formation Commission
SLO LAFCO - Serving the Area of San Luis Obispo County
COMMISSIONERS
Chairman
FRANK MECHAM
County Member
Vice-Chairman
MARSHALL OCHYLSKI
Special District Member
ROBERT ENNS
Special District Member
ROBERTA FONZI
City Member
BRUCE GIBSON
County Member
TOM MURRAY
Public Member
EDWARD WAAGE
City Member
ALTERNATES
DAVID BROOKS
Public Member
ED EBY
Special District Member
ADAM HILL
County Member
JAMIE L. IRONS
City Member
STAFF
DAVID CHURCH
Executive Officer
RAYMOND A. BIERING
Legal Counsel
MIKE PRATER
Senior Analyst
DONNA J. BLOYD
Commission Clerk
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San Luis Obispo LAFCO June 16, 2016
SLO SOI Update/MSR Study Session Page 2
The study session is informational in nature and provides an opportunity to identify
issues and questions prior to the public hearing. Also the public is invited to provide
any feedback or questions about the documents or the process. No action is
requested by the Commission at this time. Please provide us with any comments,
insights and questions you may have about the documents or the process .
Chapter 1 - Introduction and Executive Summary. This chapter introduces terms
and definitions, summarizes the purpose of the documents and describes the process
of updating the SOI. The Executive Summary provides a brief summary of each of the
factors considered in the Municipal Service Review and the recommendation
regarding the SOI.
Chapter 2 - Sphere of Influence Update. The Sphere of Influence Chapter describes
the requirements of the Cortese-Knox-Hertzberg Act and provides background
regarding the existing SOI. It also identifies the S tudy Areas that were evaluated in
determining the SOI, the City-County draft agreement, and the LAFCO staff
recommendation. The draft MOA found in Appendix B is also summarized in this
chapter. Also covered are the factors that are required by CKH for esta blishing a SOI.
The Staff Recommendation is to maintain the existing SOI.
Chapter 3 - Municipal Service Review. The preparation of a Municipal Service
Review is an information-driven activity. We have been assisted by City staff in
gathering the information needed to prepare the Sphere Update and MSR. LAFCO
staff has taken this information and reviewed, analyzed and summarized the data.
The MSR along with the analysis and determinations called for by the Government
Code is used as the information base f or the Sphere of Influence Update. The MSR
addresses the seven factors that are required to be evaluated.
Notice of Exemption (Appendix A). The purpose of the environmental review
process is to provide information about the environmental effects of th e actions and
decisions made by LAFCO and to comply with the California Environmental Quality
Act (CEQA). In this case, it has been determined with certainty that there is no
possibility that the project may have a significant environmental effect on the
environment and therefore it is found to be exempt from CEQA pursuant to section
15061(b)(3) of the State Guidelines. The Local Agency Formation Commission will file
this Notice of Exemption upon approval of the Sphere of Influence Update.
Draft Memorandum of Agreement (Appendix B). The process of updating the
Sphere of Influence and Municipal Service Review also involved a series of meetings
to revise the City-County Memorandum of Agreement (MOA). That MOA covers the
areas of most interest to the City. The MOA should be considered by the City and
County in late summer, 2016. In the MOA, the City and the County agreed upon the
extent of the City’s Sphere of Influence, the development standards and zonin g
process. The general approach of the MOA is to ensure close coordination and
cooperation between the City and County on the future planning and development of
the areas within the City’s SOI boundary. The City and County agreed to maintain the
existing SOI. The provisions address regional coordination on various interests
including circulation, open space, fire and emergency response services and
preservation of agricultural lands.
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San Luis Obispo LAFCO June 16, 2016
SLO SOI Update/MSR Study Session Page 3
CITY OF MORRO BAY’S SPHERE OF INFLUENCE UPDATE/MUNICIPAL SERVICE
REVIEW STATUS UPDATE
Summary: This status report is to bring the Commission up-to-date regarding the
Sphere of Influence (SOI) update and Municipal Service Review (MSR) being
prepared for the City of Morro Bay. Updating the existing City/County Memorandum of
Agreement may be part of the SOI update process. The adopted MOA covers several
special areas of interest and lays out a process to follow if an area should be
considered for future development. The Tri-W property is not currently discussed in
the adopted MOA.
The City took a 60-day pause to re-consider potential alternative sites to locate the
WRF. The Righetti Ranch, Rancho Colina and Tri-W were identified as having the
greatest potential for a new Wastewater Treatment Facility site. At the City Council
May 10, 2016 meeting the Council voted to take another 30 days to notice surrounding
neighbors of the Tri-W site to inform them of this new potential location. The City is
expected to select a preferred site to focus an Enviro nmental Impact Report on with
the other site studied as alternatives in the EIR. The City Council is expected to hold a
meeting on June 14th.
Under LAFCO’s SOI Update for the City, the Study Areas will focus primarily on
properties being studied for locating a future wastewater treatment facility site. Once
the City has selected the preferred site to begin an EIR study, LAFCO would focus on
these areas for the update process.
Vicinity Map
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CITY OF SAN LUIS OBISPO
PUBLIC REVIEW DRAFT
SPHERE OF INFLUENCE UPDATE
MUNICIPAL SERVICE REVIEW
PREPARED BY:
SAN LUIS OBISPO
LOCAL AGENCY FORMATION COMMISSION
JUNE 16, 2016
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CITY OF SAN LUIS OBISPO
PUBLIC REVIEW DRAFT 2 JUNE 2016
SAN LUIS OBISPO LOCAL AGENCY FORMATION COMMISSION
Commission ers
Chairman: Frank Mecham, County Member
Vice Chairman: Marshall Ochylski, Special District Member
Roberta Fonzi, City Member
Bruce Gibson, County Member
Robert Enns, Special District Member
Ed Waage, City Member
Tom Murray, Public Member
Alternates
Ed Eby, Special District Member
David Brooks, Public Member
Jamie Irons, City Member
Adam Hill, County Member
Staff
David Church, AICP, Executive Officer
Raymond A. Biering, Legal Counsel
Mike Prater, LAFCO Analyst
Donna J. Bloyd, Commission Clerk
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CITY OF SAN LUIS OBISPO
PUBLIC REVIEW DRAFT 3 JUNE 2016
TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION AND EXECUTIVE SUMMARY
Introduction ................................................................................................................. 1-1
Service Review and Sphere of Influence Update Process ........................................... 1-2
California Environmental Quality Act ........................................................................... 1-3
Executive Summary ..................................................................................................... 1-5
Recommendation ........................................................................................................ 1-11
CHAPTER 2: SPHERE OF INFLUENCE UPDATE
Introduction .................................................................................................................. 2-1
Existing Sphere of Influence ......................................................................................... 2-2
Sphere of Influence Study Areas .................................................................................. 2-4
Study Area 1- Calpoly ....................................................................................... 2-6
Study Area 2- Flora-Alrita ................................................................................. 2-7
Study Area 3- Orcutt ......................................................................................... 2-8
Study Area 4- Broad Street ............................................................................... 2-9
Study Area 5- Airport Area ................................................................................ 2-10
Study Area 6- Chevron ..................................................................................... 2-11
Study Area 7- LOVR/101 .................................................................................. 2-12
Study Area 8- San Luis Ranch .......................................................................... 2-13
Study Area 9- Cerro San Luis ........................................................................... 2-14
Memorandum of Agreement ......................................................................................... 2-15
Conditions of Approval ................................................................................................. 2-15
Present and Planned Land Use .................................................................................... 2-16
Present/Probable Need for Public Services .................................................................. 2-17
Social and Economic Communities of Interest .............................................................. 2-17
Public Facilities and Services of Disadvantaged Unincorporated Communities ............ 2-17
Local Sphere of Influence Guidelines ........................................................................... 2-18
CHAPTER 3: CITY OF SAN LUIS OBISPO
Growth and Population.................................................................................................. 3-6
Disadvantage Unincorporated Communities ................................................................. 3-29
Infrastructure Needs and Deficiencies .......................................................................... 3-30
Financing Constraints and Opportunities ...................................................................... 3-72
Opportunities for Shared Facilities ................................................................................ 3-91
Local Accountability/Governance ................................................................................. 3-94
Other Matters ............................................................................................................... 3-99
FIGURES
Figure 1-1 City of San Luis Obispo Sphere of Influence Recommendation June 2016 ... 1-12
Figure 2-1 Existing Sphere of Influence .......................................................................... 2-3
Figure 2-2 Study Areas .................................................................................................. 2-5
Figure 2-3 Study Area 1 Calpoly ..................................................................................... 2-6
Figure 2-4 Study Area 2 Flora-Alrita ............................................................................... 2-7
Figure 2-5 Study Area 3 Orcutt ....................................................................................... 2-8
Figure 2-6 Study Area 4 Broad Street ............................................................................. 2-9
Figure 2-7 Study Area 5 Airport Area .............................................................................. 2-10
Figure 2-8 Study Area 6 Chevron ................................................................................... 2-11
Figure 2-9 Study Area 7 LOVR/101 ................................................................................ 2-12
Figure 2-10 Study Area 8 San Luis Ranch...................................................................... 2-13
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CITY OF SAN LUIS OBISPO
PUBLIC REVIEW DRAFT 4 JUNE 2016
Figure 2-11 Study Area 9 Cerro San Luis ....................................................................... 2-14
Figure 3-1 City of San Luis Obispo Existing Sphere of Influence .................................... 3-4
Figure 3-2 Greenbelt ...................................................................................................... 3-5
Figure 3-3 Existing Land Use ......................................................................................... 3-9
Figure 3-4 Development Capacity .................................................................................. 3-14
Figure 3-5 Urban Reserve Line/Urban Service Line ....................................................... 3-26
Figure 3-6 Current Water Supply .................................................................................... 3-34
Figure 3-7 Water Demand Policies ................................................................................. 3-39
Figure 3-8 Pressure Zones ............................................................................................. 3-46
Figure 3-9 Water Providers ............................................................................................ 3-49
Figure 3-10 Monthly Water Comparison ......................................................................... 3-54
Figure 3-11 Monthly Sewer Comparison ........................................................................ 3-54
Figure 3-12 Monthly Water & Sewer Comparison ........................................................... 3-54
Figure 3-13 Fire Station Incidents ................................................................................... 3-61
Figure 3-14 City of San Luis Obispo Violent Crime Rate per 1000 People...................... 3-64
Figure 3-15 City of San Luis Obispo Property Crime Rate per 1000 People ................... 3-64
Figure 3-16 Comparative Property Crime Rates per 1000 People .................................. 3-65
Figure 3-17 Comparative Violent Crime Rates per 1000 People ..................................... 3-66
Figure 3-18 Perception of Safe Community .................................................................... 3-67
Figure 3-19 General Fund Expenditures 2015-2017 ....................................................... 3-72
Figure 3-20 Operating Budget ........................................................................................ 3-76
Figure 3-21 General Fund Budget .................................................................................. 3-76
Figure 3-22 Property Tax Revenues ............................................................................... 3-77
Figure 3-23 Adaptable Revenues ................................................................................... 3-77
Figure 3-24 Reserves ..................................................................................................... 3-78
Figure 3-25 Long-term Debts/Liabilities .......................................................................... 3-78
Figure 3-26 Changes in Fund Balance ........................................................................... 3-79
Figure 3-27 Revenues by Type ...................................................................................... 3-79
Figure 3-28 Rates for Water Use 20 CCF ....................................................................... 3-86
Figure 3-29 City of San Luis Obispo Organizational Chart .............................................. 3-96
TABLES
Table 1-1 Historical & Projected Population Growth ....................................................... 1-5
Table 1-2 Estimated Housing Capacity in Expansion Areas ........................................... 1-6
Table 1-3 Current Water Supply ..................................................................................... 1-7
Table 2-1 City of San Luis Obispo Study Areas .............................................................. 2-4
Table 2-2 City of Atascadero Vacant Land Inventory ...................................................... 2-9
Table 3-1 Existing and Proposed Service Providers within the SOI ................................ 3-2
Table 3-2 Existing & Added SOI Areas in 2006 .............................................................. 3-3
Table 3-3 Study Areas in 2016 ....................................................................................... 3-3
Table 3-4 Proposals since 2004 ..................................................................................... 3-6
Table 3-5 Department of Finance Population Estimates ................................................. 3-7
Table 3-6 San Luis Obispo Council of Governments Population Projections .................. 3-8
Table 3-7 RMS Historical and Projected Population Growth ........................................... 3-11
Table 3-8 2010 UWMP Historical and Projected Population Growth ............................... 3-11
Table 3-9 Anticipated Population Growth ....................................................................... 3-12
Table 3-10 Build-Out Summary ...................................................................................... 3-13
Table 3-11 Expansion Areas Phasing Plan..................................................................... 3-14
Table 3-12 Building Permits Issued 2006-2013 .............................................................. 3-15
Table 3-13 Future Non-Residential Projects ................................................................... 3-16
Table 3-14 General Plan Summary Report ..................................................................... 3-17
Table 3-15 2014-2019 SLOCOG Regional Housing Needs Allocation ............................ 3-21
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Table 3-16 Estimated Housing Capacity in Expansion Areas ......................................... 3-27
Table 3-17 Water Supply ................................................................................................ 3-34
Table 3-18 Water Available for Development ................................................................. 3-35
Table 3-19 Water Supply Accounting ............................................................................. 3-35
Table 3-20 Potential Supplemental Water Sources ........................................................ 3-36
Table 3-21 Water Use .................................................................................................... 3-36
Table 3-22 RMS Water Use Estimates ........................................................................... 3-38
Table 3-23 Past, Current and Projected Water Deliveries ............................................... 3-42
Table 3-24 Single-Family Water Rates ........................................................................... 3-52
Table 3-25 Single-Family Sewer Rates .......................................................................... 3-53
Table 3-26 Transportation Network Improvements ......................................................... 3-55
Table 3-27 Transportation Planning Improvements ........................................................ 3-57
Table 3-28 Parking Management ................................................................................... 3-57
Table 3-29 Neighborhood Traffic Management .............................................................. 3-58
Table 3-30 Rail Travel Time & Frequency ...................................................................... 3-61
Table 3-31 Residential Water Rates Comparison ........................................................... 3-86
Table 3-32 Single-Family Water Rates and Monthly Bill ................................................. 3-87
Table 3-33 Single-Family Sewer Rates .......................................................................... 3-88
REFERENCES
APPENDICES
Appendix A: Environmental Determination Notice of Exemption
Appendix B: Draft Memorandum of Agreement
Appendix C: LAFCO Actions City of San Luis Obispo 1963 - Present
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Sphere of Influence
“…a plan for the
probable physical
boundary and
service area of a
local agency or
municipality…”.
CHAPTER 1 - INTRODUCTION & EXECUTIVE SUMMARY
INTRODUCTION
The Cortese/Knox/Hertzberg Local Government Reorganization Act of 2000 (CKH Act) requires
the Local Agency Formation Commission (LAFCO) to update the Spheres of Influence (SOI) for
all applicable jurisdictions in the County every five years or as needed. A Sphere of Influence is
defined by Government Code 56425 as “…a plan for the probable physical boundary and
service area of a local agency or municipality…”. A SOI is generally considered a 20-year, long-
range planning tool. The Act further requires that a Municipal Service Review (MSR) be
conducted prior to, or in conjunction with, the update of a Sphere of Influence. The MSR
evaluates the capability of a jurisdiction to serve their existing residents and future development
in their Sphere of Influence.
Chapter Two is the Sphere of Influence Update and describes the
requirements of the Cortese-Knox-Hertzberg Act. It also makes
recommendations for updating the Spheres of Influence for the City of
San Luis Obispo. The Sphere Update is based upon Municipal
Service Review Chapter Three that analyze the jurisdiction’s capability
to provide services to existing and future residents. The SOI Update
and Municipal Service Review are prepared to meet the requirements
of the Cortese/Knox/Hertzberg Local Government Reorganization Act
of 2000 (CKH). The Sphere of Influence Update and Municipal Service Review discuss the
following agency: City of San Luis Obispo in accordance with Section 56430 of the California
Government Code. The San Luis Obispo LAFCO’s Municipal Service Review Guidelines were
used to develop information, perform analysis and organize this study. The update of the
Sphere of Influence for the City recognizes the existing circumstances and recommends no
changes to the SOIs (a “Status Quo” recommendation).
The legislative authority for conducting Service Reviews is provided in section 56430 of the
CKH Act. The Act states, (“That in order to prepare and to update Spheres of Influence in
accordance with Section 56425, the Commission shall conduct a service review of the municipal
services provided in the County or other appropriate area designated by the Commission …”) A
Service Review must have written determinations that address the legislative factors in order to
update a Sphere of Influence.
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SEVEN SERVICE REVIEW FACTORS
1. Growth and Population projections for the
affected area
2. Location and characteristics of any
disadvantaged unincorporated communities
3. Present and planned capacity of public
facilities and adequacy of public services
including infrastructure needs or deficiencies
4. Financial ability of agencies to provide
services
5. Status of, and opportunity for, shared
facilities
6. Accountability for community service needs
including governmental structure and
operational efficiencies
7. Any other matter related to effective or
efficient service delivery, as required by
commission policy
Information that addresses each of the seven factors is provided in Chapters 3 – the Municipal
Service Review. The seven factors are listed below, and Written Determinations for each factor
are found after each section.
LAFCOs are encouraged to compile a variety of information in preparing a Service Review.
LAFCOs also may use a significant proposal (general plan update, master plan, specific plan,
etc.) as a way to compile the information needed for a Service Review. Administrative,
organizational, and financial information is also collected and evaluated.
SERVICE REVIEW & SPHERE OF
INFLUENCE UPDATE PROCESS
The process for updating the Agency’s Spheres
of Influence includes several steps:
1. Gathering and compiling information
regarding the jurisdictions service capability.
2. Update of City/County Memorandum of
Agreement (MOA) regarding SOI
boundaries and development provisions for
the Sphere of Influence area.
3. Preparation and release of a Public Review
Draft Sphere of Influence Update and
Municipal Service Review. Completion of the
environmental review process consistent
with the California Environmental Quality Act
(CEQA). Public Review and Comment
period for all documents.
4. If agreed to, City and County approval of a
Memorandum of Agreement (Appendix B).
LAFCO is required by the CKH Act to give
“great weight” to an agreement between the
City and the County when considering the
Sphere of Influence Update.
5. LAFCO consideration of Sphere of Influence
Update, Municipal Service Review,
Memorandum of Agreement, and
Environmental Review documentation.
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Past LAFCO Actions. The last SOI Study for San Luis Obispo was completed in 2006 which
included generally the same study areas, which expanded or added to the existing areas,
totaling 5,930 acres in their Sphere of Influence. Since that time five proposals have been
considered and approved by LAFCO. In 2007, the Margarita/Airport Area was annexed
approximately 1,100 acres. In 2010, the Madonna/Gap annexation was approved (Target
shopping center) a 118 acres area that preserved 19 acres of agricultural land. In 2011, The
Orcutt Area was annexed consisting of 230 acres with 79 acres preserved in agriculture and
open space. In 2015, a small less than 1-acre (Farmhouse Lane) parcel was annexed to the
City. Appendix C contains a table that shows the latest LAFCO actions.
Current LAFCO Action. LAFCO is being asked to consider the following actions as a part of
this Sphere of Influence Update:
1. Approve and adopt the environmental documentation pursuant to CEQA;
2. Approve the Municipal Service Review found in Chapter Three of this document;
and
3. Approve and adopt the Sphere of Influence Update for the City of San Luis
Obispo in Chapter Two of this document.
Environmental Determination
The California Environmental Quality Act ("CEQA") requires that the Commission undertake and
review an environmental analysis before granting approval of a project, as defined by CEQA.
The MSR’s are categorically exempt from the preparation of environmenta l documentation
under a classification related to information gathering (Class 6 - Regulation Section 15306),
which states: "Class 6 consists of basic data collection, research, experimental management,
and resource evaluation activities which do not result in a serious or major disturbance to an
environmental resource. These may be strictly for information gathering purposes, or as part of
a study leading to an action which a public agency has not yet approved, adopted, or funded."
Furthermore, the SOI update qualify for a general exemption from environmental review based
upon CEQA Regulation Section 15061(b)(3), which states: "The activity is covered by the
general rule that CEQA applies only to projects which have the potential for causing a significant
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effect on the environment. Where it can be seen with certainty that there is no possibility that the
activity in question may have a significant effect on the environment, the activity is not subject to
CEQA." There is no possibility that the MSR or SOI update would have a significant effect on
the environment because there is no land use changes associated with the document. If the
Commission approves and adopts the MSR’s and SOI update and determines that the project is
exempt from CEQA, staff will prepare and file a notice of exemption with the Clerk of the County
of San Luis Obispo, as required by CEQA Regulation Section 15062.
The study of impacts associated with the Sphere of Influence is often speculative since it is
unclear what type of project might be proposed or if an area will even be annexed in the future.
The City or County studies impacts comprehensively when a project-specific environmental
review is completed. The City is in various stages of preparing Specific Plans and
Environmental Impact Reports for some of the study areas. LAFCO may use these documents
in any future action before LAFCO if deemed appropriate.
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EXECUTIVE SUMMARY
The following is a summary of the key information contained in the Sphere of Influence Update
and Municipal Service Review completed for the City of San Luis Obispo. The seven factors
that are required to be addressed by the CKH Act are covered in this summary section. The
analysis in the chapter that follows evaluates and addresses the factors unique to LAFCO’s role
and decision-making authority pursuant to the CKH Act. The following is a summary of the key
information contained in this Service Review:
1. Growth & Population
According to the 2010 US Census, the City had a population of 45,119. Total housing units
were estimated to be 20,779 units. The City estimated build-out population within the current
City limits is 56,750. The City’s population grew by 2.1% from 2000 to 2010. In addition to this
permanent population, the City has a high number of visitor-serving uses such as hotels,
vacation rentals, and restaurants. Water use, wastewater flows and traffic conditions are all
affected by these uses and are not reflected in population figures. The City’s Urban Water
Management Plan projects the current City limit boundaries to yield a population of 57,200
persons. The 2010 UWMP based its projections from the City’s General Plan. The City of San
Luis Obispo has updated its General Plan in 2015 which establishes a growth rate of 1% per
year which estimates a build-out population of 56,750 persons.
Table 1-1: Historical & Projected Population Growth
1980(1) 1990(1) 2000(1) 2010(2) 2015(2) 2020(2) 2025(2) 2030(2)
Population 34,252 41,958 44,619 45,119 44,910 46,110 47,010 48,200
10 Year
Increase -- 7,706 2,661 500 -209 1,200 900 1,190
10 year Avg.
Increase -- 18.3% 6% 1.1% -<1% 2.6% 1.9% 2.4%
Average per
Year -- 1.8% <1% <1% -<1% <1% <1% <1%
(1) Source: U.S. Census
Source: City’s 2010 Urban Water Management Plan.
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Housing Units and Growth Projections. According to the City’s Housing Element a recent
available land inventory has been conducted which concludes the City has additional land
available for 3,477 new residential units within the City limits. In completing the recent update of
the Housing Element, the City produced a number of studies regarding housing and residential
land resources. This section focuses on the growth that may occur in the expansion areas. The
following tables summarize the growth that is projected for these expansion areas.
Table 1-2: Estimated Housing Capacity in Expansion Areas
Expansion Area Estimated Units in City
Orcutt-231 acres 979
Margarita-418 Acres 870
Edna Islay West 20
Minor Annexations/Cal Poly (1) 1,191
Totals 3,060
Sources: Housing Element, Appendix C Housing Constraints and Resources, City of San Luis Obispo,
(1) Foothill Saddle, Luneta, CDF, Highland, Miossi, Alrita, Maino, Cal Poly-900 student apartments
2. Infrastructure Needs & Deficiencies Location and Characteristics of
any Disadvantaged Unincorporated Communities
LAFCO is responsible for determining the location and characteristics of any disadvantaged
unincorporated communities within or contiguous to the sphere of influence. If a jurisdiction is
reasonably capable of providing needed resources and basic infrastructure to disadvantaged
unincorporated communities within the sphere of influence or contiguous to the sphere of
influence, it is important that such findings of infrastructure and resource availability occur when
revisions to the SOI and annexations are proposed by the agency or property owners. San Luis
Obispo’s Sphere of Influence does not have any disadvantage communities that have a present
and probable need for public facilities and services nor are the areas contiguous to the sphere
of influence qualify as a disadvantage community. However, the State Water Board has
tentatively identified the Higuera Street Apartments in need of water service by the City under
SB88. Higuera Street Apartments is a failing private water system that is within the City’s
Sphere of Influence. The City may be able to assist the owner and tenants with an adequate
supply of water of good quality through an outside user agreement or annexation.
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3. Infrastructure Needs & Deficiencies
LAFCO is responsible for determining that a jurisdiction is reasonably capable of providing
needed resources and basic infrastructure to serve areas already within the City and in the
Sphere of Influence. It is important that such findings of infrastructure and resource availability
occur when revisions to the SOI and annexations are proposed by the City or property owners.
In the case of this SOI Update, it is prudent for LAFCO to analyze present and long-term
infrastructure demands and resource capabilities of the City of Paso Robles. LAFCO
accomplishes this by evaluating 1) the resources and services that are currently available, and
2) the ability of the City to expand such resources and services in line with increasing demands.
Water
The City of San Luis Obispo’s Water supply comes from five primary sources: Salinas
Reservoir (Santa Margarita Lake) built in 1944, from Whale Rock Reservoir constructed in 1961,
some limited use of groundwater started in 1989, most recently San Luis Obispo are
participants in the Nacimiento W ater Project, and recycled water is available from the City’s
Water Reclamation Facility. The table below shows the City’s current water supply situation.
Table 1-3 – San Luis Obispo Current Water Supply
Source Amount
(acre feet)
Groundwater 89
Recycled Water 185
Salinas Res Water 2,851
Whale Rock Water 3,502
Nacimiento Water 5,482
Total 12,109
In 2015, the City reported annual water use of 4,990 acre-feet. The City anticipated future water
demand to be 9,096 acre-feet per year (at 114 gpcd consumption rate) at build out under the
existing General Plan.
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Wastewater
The City operates the wastewater treatment/reclamation facility conveying approximately 4.5
million gallons of wastewater per day with a capacity of 5.1 million gallons per day. . The
system is operating at 88% of capacity. The City is studying the options for expansion of the
system to provide adequate capacity as the City continues to grow.
Roads
The Circulation Element of the City’s General Plan describes how the City will manage
transportation issues as the City grows and develops. The Circulation Element was updated in
2015 along with other elements in the General Plan.
According to the San Luis Obispo Council of Government’s (SLOCOG) 2014 Regional
Transportation Plan a significant increase in traffic volume on Highway 101 is projected from the
2008 number of 57,857 average daily trips to 87,000 average daily trips in 2035. The Level of
Service in the San Luis Obispo area on Highway 101 is expected to drop to LOS F. The Central
County segment of the route experiences some of the highest volumes in the region.
Fire
The Fire Department operates out of four stations with fifty-two full time employees. The fire
department on average has a response time of 6.08 minutes over the City. The majority of the
calls the Fire Department responses to are medical related with a handful of calls being outside
of the City on mutual aid responses. In 2009, a Sacramento based Consulting Firm conducted
a Fire Department Master Plan for the City of San Luis Obispo that reviewed the records for
incidents between fiscal year 2004 and 2008. The study reported an average of 328.27 per
month or 10.76 incidents per day. On average each incident logged an average of 2.13
apparatus responses.
Police
The City of San Luis Obispo provides law enforcement services for the residents of the City.
The Police Station is located at the corner of Santa Rosa and Walnut. The Police Department
consists of 84.5 employees, 59 of which are sworn police officers. The Department is divided
into two bureaus, with a Police Captain commanding each.
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4. Financing Constraints & Opportunities
The City prepares a five-year financial forecast on an annual basis. This forecast, completed in
December 2014, indicated that the City no longer faces a continuing long term budget gap. In
2014-15, revenues sources such as sales tax and Transient Occupancy Tax (TOT) have been
growing for the past three years with TOT exceeding its pre‐recession peak. The 2015‐17
Financial Plan focused on major new investments and important reinvestments in critical City
infrastructure.
Measure G, a local ½ percent sales tax was reauthorized by the voters in 2014. The projected
revenue is expected to generate $7 million by 2016-17. The General Fund comprises 47% of
the City’s total expenditures. The 2015-2017 Financial Plan balances the budget while
maintaining the reserves at the policy level of 20%.
5. Opportunities for Shared Facilities
The annexation of the SOI study areas to the City may lead to shared roadway infrastructure
with the County and the State. The SOI area includes opportunities to created shared facilities
such as:
Roadway connections
Coordinated open space preservation
Linkages between City and County recreational trails
Preservation and enhancement of Agricultural Lands
In the case of roadways and creek trails, the opportunity to coordinate connections between
collector and arterial roadways will enhance regional traffic patterns, and will aid in emergency
response times. The County has, on occasion, collected impact fees for a City that is affected
by a project in the unincorporated areas. This type of coordination can lead to a reduction of
impacts and a more positive solution to the problem of development on the City’s fringe.
6. Accountability in Government Structure
The City Council is elected in compliance with California Election Laws. The City complies with
the Brown Act Open-Meeting Law and provides the public with ample opportunities to obtain
information about City issues, including website and phone access. The City‘s website contains
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a wealth of information about all of the City’s Departments and services. The City Council holds
regular meetings at 7:00 p.m. on the first and third Tuesdays of each month in the City Hall
Council Chambers, at 990 Palm Street. All Council meetings are televised live and videotaped
for later playback.
San Luis Obispo does maintain various customer-oriented programs, including a mission
statement for each City department, customer satisfaction programs, regular in-house safety
training and management, and similar programs designed to enhance the experience for the
City customer.
REGIONAL ISSUES
The following is a summary of issues that are relevant to the San Luis Obispo area, and if
further explored could help improve public services to the residents of the area.
Emergency Services. An emerging emergency serves trend is beginning to occur on the
fringes and in open space preserve and trails areas. Costs associated with fire and emergency
response services should be given special attention in these areas. The jurisdictions should
continue to work to provide fire and emergency protection service to those areas and the people
using the trails. As the areas become more popular with visitors and the needs arise to provide
these services greater study and evaluation on coordination and cost sharing should be
addressed to ensure emergency responses are efficiently being handled.
Regional Circulation. Regional circulation improvements such as Highway 227, Prado Road
overcrossing, widening of Tank Farm Road, the LOVR traffic relief project, etc. are examples of
regional issues that should be addressed not just by the City alone, but with coordination with
the County, SLOCOG, Caltrans and others to assist in associated fiscal impacts and
appropriate mitigation measures for development on the fringe. These agencies should work
together to improve regional circulation such that future growth should provide for an improved
circulation system that would promote maximum connectivity between different parts of the City
by planning for and/or constructing new roads, walkways, bike paths, transit facilities, or other
means based on Vehicle Miles Travel (VMT) data; cost sharing agreements associated with the
future development of City’s Capital Improvement Projects (CIPs) that have regional circulation
benefits.
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RECOMMENDATION
Based upon the information contained in Chapters 2 and 3 of this document, and the
environmental determination, it is recommended that the Atascadero Sphere of Influence
remain unchanged and be re-adopted by LAFCO. Chapter 2, Sphere of Influence Update,
provides more detailed information regarding the basis for this recommendation.
CHAPTER 2 SPHERE OF INFLUENCE UPDATE
The Sphere of Influence Chapter describes the requirements of the Cortese-Knox-Hertzberg Act
and provides background regarding the existing SOI for the City. It also identifies the Study
Areas that were evaluated in determining the SOI’s, the City-County agreement for San Luis
Obispo, and the LAFCO staff recommendation. The Draft MOA for the City of San Luis Obispo
can be found in Appendix B as well as summarized in this chapter. Also covered are the factors
that are required by CKH for establishing a SOI. The Staff Recommendation is to maintain the
existing SOI for City of San Luis Obispo.
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Figure 1-1 – Recommended Sphere of Influence
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CHAPTER 2
SLO – SPHERE OF INFLUENCE UPDATE
INTRODUCTION
This Sphere of Influence (SOI) Update chapter is prepared for the City of San Luis Obispo and
is based upon the following Municipal Service Review (Chapter 3) that analyzes the City’s
capability to serve existing and future residents. The SOI Update and Service Review were
prepared to meet the requirements of the Cortese/Knox/Hertzberg Local Government
Reorganization Act of 2000 (CKH). The fundamental role of the Local Agency Formation
Commission, LAFCO, is to implement the CKH Act, consistent with local conditions and
circumstances. LAFCO’s decisions are guided by the CKH Act, found in Government Code
56000, et seq. The major goals of LAFCO include:
Encouraging orderly growth and development which are essential to the social, fiscal, and
economic well-being of the state;
Promoting orderly development by encouraging the logical formation and determination of
boundaries and working to provide housing for families of all incomes;
Discouraging urban sprawl;
Preserving open space and prime agricultural lands by guiding development in a manner
that minimizes resource loss;
Promoting logical formation and boundary modifications that direct the burdens and benefits
of additional growth to those local agencies that are best suited to provide necessary
services and housing;
Making studies and obtaining and furnishing information which will contribute to the logical
and reasonable development of local agencies and shaping their development so as to
advantageously provide for the present and future needs of each county and its
communities;
Determining whether new or existing agencies can feasibly provide needed services in a
more efficient or accountable manner and, where deemed necessary, consider
reorganization with other single purpose agencies that provide related services;
Updating SOIs every five years or as necessary.
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To carry out State policies, LAFCO has the power to conduct studies, approve or disapprove
proposals, modify boundaries, and impose reasonable terms and conditions on approval of
proposals. Existing law does not provide LAFCO with direct land use authority, although some
of LAFCO’s discretionary actions consider land use as a factor in the decision making process.
LAFCO is expected to weigh, balance, deliberate, and make determinations regarding a specific
action or proposal.
An important tool used in implementing the CKH Act is the adoption of a Sphere of Influence
(SOI) for a jurisdiction. A SOI is defined by Government Code 56425 as “…a plan for the
probable physical boundary and service area of a local agency or municipality…”. A SOI
represents an area adjacent to a city or district where a jurisdiction might be reasonably
expected to provide services over the next 20 years. This chapter, along with the following
Municipal Service Review, provides the basis for updating the City of San Luis Obispo’s Sphere
of Influence, which is required to be updated every five years or as needed.
This Sphere of Influence Update chapter addresses the key factors called for in the
Cortese/Knox/Hertzberg Act by referring to information contained in the Service Review. Also,
the following written determinations must be addressed according to section 56425(e)(1-4) of
the Cortese/Knox/Hertzberg Act:
Present and planned land uses in the area, including agriculture, and open space lands;
Present and probable need for public facilities and services in the area;
Present capacity of public facilities and adequacy of public services that the agency
provides or is authorized to provide; and
Existence of social or economic communities of interest in the area if the Commission
determines that they are relevant to the agency.
The present and probable need for those public facilities and services of any disadvantaged
unincorporated communities within the existing sphere of influence.
EXISTING SPHERE OF INFLUENCE
The City’s existing Sphere of Influence is approximately 5,930+/- acres beyond the City limits
and includes nine areas. The nine areas include CALPOLY, Florita-Alrita, Orcutt, Broad Street,
Airport, Chevron, LOVR/101, San Luis Ranch and Cerro San Luis area. The map on the next
page shows the existing Sphere of Influence of the City.
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Figure 2-1 – SLO’s SOI
CALPOLY
Florita-
Alrita
Broad
Street
Orcutt
Airport
Chevron
LOVR/
101
San Luis
Ranch
Cerro
San Luis
Area
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SPHERE OF INFLUENCE STUDY AREAS
For analysis purposes, the City of San Luis Obispo and LAFCO staff have agreed and prepared
a map that includes the existing SOI properties to be re-considered for the Sphere of Influence.
The Study Areas are used to help analyze and identify which properties should be included and
which should be excluded from the Sphere of Influence. A summary of the Study Areas are
listed in the table below:
Table 2-1: Study Areas
Study Areas Acres Land Use/Zoning Existing Land Use Build-Out Potential
Area #1 - CALPOLY 1,057 Public Facility Residential/Grazing Unknown
student housing
Area #2 - Flora-Alrita
237 Rural Lands Open Space 0 units
Area #3 - Orcutt
175 Agriculture/Residential
Suburban
Residential Rural 17 units
Area #4 - Broad St. 96 Agricultural/Commercial Commercial/Grazing 0 units
Area #5 - Airport 544 Agriculture/Comm.
/Industrial
Commercial/Industrial
/Grazing 0 units
Area #6 - Chevron 912 Agriculture/Rec Grazing Unk units
Area #7 – LOVR/Hwy101
1,180 Agriculture/Rural Lands Grazing Unk units
Area #8 – San Luis
Ranch
130 Agriculture Crops 500 units
Area #9 - Cerro San Luis
1,600 Agriculture Grazing/Open Space 0 units
Source: SLO County Planning & Building Department, General Plan.
The Study Areas are described in more detail on the following pages and include: a map that
focuses on the particular area, the recommendation made by LAFCO Staff and the
recommendation by the Memorandum of Agreement (MOA). The discussion addresses the size
and location of the area, current zoning, possible City zoning for each area and other relevant
information. The MOA ensures a close coordination and cooperation between the City and
County on the future planning and development of the areas within the City’s SOI boundary.
Greater detail is provided later in this chapter.
The City recently completed an update to their General Plan Land Use Element, Circulation
Element and Housing Element that addressed potential expansion into the existing Sphere of
Influence areas. Therefore, no additional properties are considered for addition into the Sphere
of Influence consistent with the update to the General Plan and the City’s vision for future
growth based on resource constraints, land use issues, and/or infrastructure constraints.
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Figure 2-2 – Study Areas
Study
Area #1
Study
Area #2
Study
Area
#4
Study
Area
#3
Study
Area
#5
Study
Area
#6 Study
Area
#7
Study
Area #8
Study
Area #9
2015
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SOI Study Area #1 – Calpoly Area (Located in SLO County; within the SOI)
The 1,057-acre area is just north of the City limits consists of six parcels primarily under
Calpoly’s control. A 4-acre parcel is owned by Avila Frank Heirs and the City owns a 0.5 acre
parcel. A portion of the area is located across from the college adjacent to Hwy 1 that is also
owned by the school. The SOI covers the campus and surrounding areas. The California State
University has various plans for expanding student and facility housing as well as campus
facilities.
Cal Poly’s plan for the next 20 years calls for an ambitious rethinking of the campus that would
expand north to create a new hub of student life, reroute cars out of the core and add thousands
of new living units for students, faculty and staff.
In addition, the university wants to add a hotel and conference center, create space for Greek
houses and clubs, and explore the idea of year-round instruction by expanding summer classes.
The university updated their Master Plan that proposes a variety of new uses aimed at making
the most of campus property. All of the options and potential ideas for development are
conceptual at this point.
City/County MOA. This area should be included in the SOI
LAFCO Staff Recommendation. The SOI should include Area One. The City and the
University have a unique relationship with each other. Both the entities plans for future growth
have a responsibility to consider each other given the impacts any changes would have on the
City. It may become mutually beneficial for CALPOLY to be annexed to the City at some point.
Figure 2-3
SOI Study Area #1
Study Area
City Limit
URL
25 acres – Public
Facility 1
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SOI Study Area #2 – Flora-Alrita (Located in SLO County; within the SOI).
This 237-acre area is adjacent to the City and is located above Flora and Alrita Streets. The
area is identified in the General Plan as the Goldtree area. The area was included in the City’s
Sphere of Influence because of the potential for additional residential development on the lower
slopes of the parcels, and the possibility of securing open space dedication on the upper slopes.
Providing water service to these parcels is made very difficult because of their height and steep
terrain. Most of the area is above the 460-foot contour, the City’s hillside development limit.
Water service could be provided, but the system would have to be properly designed and would
be expensive. The City requires a 4 to 1 ratio of open space to developable land for this area,
significantly limiting the size of development that could occur on the site.
City/County MOA. This area should be included in the SOI.
LAFCO Staff Recommendation. The SOI should include Area Two. This area is a logical
extension of the City’s boundaries. The City’s Land Use and Open Space policies and
standards would manage any development proposed in this area. The Existing SOI may be able
to develop several residences in the area because they can meet the City’s open space
requirements. Maintaining the properties in the SOI would also provide the City and property
owners more flexibility in terms of future development proposals (i.e. meeting the 4:1 open
space requirement). The City is capable of providing any services needed to serve the area.
The City requires that the developer pay for infrastructure improvements and other needed
facilities and resources.
Figure 2-4
SOI Study Area #2
Study Area
City Limit
URL
237 acres – Open
Space
2
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SOI Study Area #3 – Orcutt Area (Located in SLO County; within the SOI).
This 175-acre area is located northeast of Orcutt Road and is adjacent to the City. The area is
zoned Residential Suburban and is largely built-out under the 1 unit per 5 acre density allowed
under County standards. The area consists of 17 parcels with 9 existing residences. The
County’s General Plan designates the north parcels of the study area as being part of the Urban
Reserve Area, while the southern portion of the Study Area is not in the County’s Urban
Reserve Area and is outside the City’s Urban Reserve Line designated as Agriculture (Wixom
Ranch). It is unlikely that increased development of these parcels would be able to occur
unless they were annexed to the City.
The area currently receives water service from groundwater and the homes are served by
individual septic tanks to meet the wastewater needs. Law enforcement is handled by the
County Sheriff and Fire response by the County Fire Department. The first responder to a call
would likely be the City Police and Fire units given their closer proximity to the area and the
Automatic and Mutual Aid Agreements that exist between the County and City emergency
response organizations.
City/County MOA. This area should be included in the SOI.
LAFCO Staff Recommendation. The SOI should continue to include Area #3. If the property
owners chose to develop in the County, it is unlikely that urban densities would be achieved
because of the County’s open space and agricultural policies. The County’s clustering and open
space policies may allow for the preservation of the rural character of the area and may be a
more appropriate use.
Figure 2-5
SOI Study Area #3
Study Area
City Limit
URL
175 acres –
Residential & Ag
3
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SOI Study Area #4 – Broad Street (Located in SLO County; within the SOI).
This 96-acre area is located on the southeast side of the City adjacent to Broad Street and
includes 39 parcels. The Fiero Lane Water Company provides water service in the area. The
private water company has had some difficulties with water quality. The zoning, water quality,
permit approvals and location of this area may support its eventual annexation to the City. The
large commercial development that has already been approved could reasonably be expected
to be served by the City at some point in the next 20 years.
City/County MOA. This area should be included in the SOI.
LAFCO Staff Recommendation. The SOI should continue to include Area Four. This area is
logical extension of the City’s boundaries. The proximity of this area to the City boundaries, a
major roadway (Broad St.), and the type of land uses being approved make this area one that
could be served by the City. The County has already approved major commercial development
in the area. The City is capable of providing any urban services needed to serve the area. The
private water company is facing difficulties providing water service in the area. The City has
policies that require the developer to pay for infrastructure improvements and other needed
facilities and resources.
Figure 2-6
SOI Study Area #4
Study Area
City Limit
URL
96 acres –
Commercial/Grazing 4
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SOI Study Area #5 – Airport Area (Located in SLO County; within the SOI).
The Airport Area Specific Plan provides standards and policies for future development of the
area. The EIR for this plan has been certified by the City and the Plan has been adopted. The
Airport Area Specific Plan consists of 1,500 acres of land adjacent to the San Luis Obispo
County Regional Airport bordered by the Margarita Area, South Higuera Street, South Broad
Street and Buckley Road. For purposes of this SOI Study Area the Airport Area Specific Plan is
divided into two Study Areas titled Airport Area and Chevron. The Airport Area consists of the
County Airport and surrounding commercial and industrial area. Study Area #6 includes the
balance of the Specific Plan. The Airport Specific Plan envisions a mixture of open space,
agriculture, business park and industrial development.
City/County MOA. The SOI should continue to include Area #5.
LAFCO Staff Recommendation. The SOI should include Area Five. This area is presently in
the SOI and is covered by the Airport Area Specific Plan. The vision is that the Airport Area be
served by the City and the Specific Plan be implemented. The Commission approved and
Outside User Agreement for the Fiero Lane Mutual Water Company to be served by the City for
water and wastewater services with the condition an annexation application be submitted in the
near-term.
Figure 2-7
SOI Study Area #5
Study Area
City Limit
URL
544 acres –
Commercial/Industrial
5
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SOI Study Area #6 – Chevron (Located in SLO County; within the SOI).
This 912-acre area includes the Drake Farms north of Buckley (37 acres). The 37-acre area on
the south side is zoned agriculture and is producing high-value row crops on some parcels.
Continued industrial development of the area is likely and the need for City services will
increase over the next 20 years. The City Council directed that the area north of Buckley Road
be included in the Airport Area Specific Plan (AASP).
Chevron is currently undergoing remediation and development of the 332-acre tank farm
property surrounding Tank Farm Road north of the airport. Remediation of the property requires
several activities expected to occur over a 3-year period: demolishing existing buildings,
excavating top soil, site re-contouring, and capping. Following the remediation project,
approximately 250 acres of the property would become permanent open space. A portion of the
property would be for future development of a business park and service-commercial uses. Up
to 15 acres may also be reserved for a recreation area. Proposed development would occur in
several phases over a 25-year period. Chevron is proposing a development agreement with the
City. The project site is in the County but is within the City’s SOI and is designated in the AASP.
City/County MOA. The SOI should continue to include Area #6.
LAFCO Staff Recommendation. The SOI should include Area Six. This area is a logical
extension of the City’s boundaries. The proximity of this area to the City boundaries, a major
roadway (Tank Farm, Buckley Rd.), and the type of land uses being approved make this area
one that could be served by the City. The City is capable of providing for any services needed to
serve the area.
Figure 2-8
SOI Study Area #6
Study Area
City Limit
URL
912 acres –
Agricultural
6
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SOI Study Area #7 – LOVR/101 (Located in SLO County; within the SOI).
This 1,180-acre area is located southwest of the City next to Los Osos Valley Road (LOVR) and
includes land that is zoned agriculture. Home Depot is located to the north, auto sales to the
east, commercial development and Highway 101 to the south, and agricultural land (grazing) to
the west. It is anticipated that this area would develop with commercial land uses located
nearer to the Highway and roads. The balance of the properties may be used to meet the City’s
open space requirements. The area to the south includes three parcels and approximately 470
acres. Much of the area is steep hillside and would likely be used to meet the City’s greenbelt
policies. The property west of the Mountainbrook Church is the Filipponi (West) Ranch
(approximately 220 acres). The parcel just to the south is the City-owned Johnson Ranch (242
acres). It has been the City’s practice to include City-owned open space lands within the city
limits so that city open space regulations can be enforced. Under General Plan policies,
wetlands must be preserved as open space. If eventually annexed, portions closest to LOVR
may have development potential; wetlands would be identified and designated as Open Space
at a 4:1 ratio of open space to developable land.
City/County MOA. The SOI should continue to include Area #7.
LAFCO Staff Recommendation. The SOI should include Area Seven. This area is a logical
extension of the City’s boundaries. The proximity of this area to the City boundaries, major
roadways (101, Higuera, Buckley Rd.), and the type of land uses being approved make this
area one that could be served by the City. The City also owns 220 acres that have been
dedicated to open space. If this property were annexed into the City, the City would not have to
pay property taxes on the parcel. The City is capable of providing any services needed to serve
the area. The City has policies that require the developer to pay for infrastructure improvements
and other needed facilities. Two Open Space Easements exists in the area.
Figure 2-9
SOI Study Area #7
Study Area
City Limit
URL
1,180 acres – Grazing
land
7
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SOI Study Area #8 – San Luis Ranch (Located in SLO County; within the SOI).
The San Luis Ranch development includes partial development of the 130 acres. The City has
development a preliminary draft Specific Plan for the area. Activity would involve a 200-room
hotel and conference center, commercial office space, Commercial-retail center and residential.
San Luis Ranch Specific Plan Area shall not exceed 500 units (excluding affordable units).
Infrastructure requirement would include roads, water and wastewater, and stormwater
conveyance systems. The Plan calls for setting aside land for open space and agriculture
(approximately 62 acres). The set aside includes 50 acres of agriculture. Interim Open Space
(4.41 acres) is the existing heron habitat.
City/County MOA. The SOI should continue to include Area #8.
LAFCO Staff Recommendation. The SOI should continue to include Area Eight. This area is
presently zoned agriculture and has long been envisioned to annex into the City.
Figure 2-10
SOI Study Area #8
Study Area
City Limit
URL
130 acres – Crop land
8
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SOI Study Area #9 – Cerro San Luis (Located in SLO County; within the SOI).
This 1,600-acre Study Area is located on the northwest side of the City with Foothill Blvd. as the
northern boundary and Los Osos Valley Road as the border to the west. The area includes land
that is zoned Agriculture and nine single-family residences that exist along the south side of
Foothill Boulevard. These are mostly half-acre lots that have already been developed. Ten of
the properties (1,202 acres-87%) are owned by the Madonna Family. Congregation Beth-David
has received approval from the County to build a worship facility at the corner of LOVR and
Foothill. The property just south of the Congregation is owned by Mr. Dan DeVaul. A large
portion of this area includes Cerro San Luis and would be considered for inclusion into the City’s
open space program if annexed into the City because of the steep topography, wetlands and
sensitive habitat.
City/County MOA. The SOI should continue to include area #9.
LAFCO Staff Recommendation. The SOI should continue to include Area Nine. This area is a
logical extension of the City’s boundaries. The proximity of this area to the City’s boundaries,
major roadways, and the type of land uses being approved by the County (churches, schools,
residences, etc.) make this area one that could eventually be served by the City. The City’s
emergency response agencies are often the first responder in this area in emergency situations.
Also, Cerro San Luis is often identified as part of the City and would be a rational addition to the
City’s open space program. Foothill and Los Osos Valley Road make logical boundaries for the
City Limits. The City is capable of providing any services needed to serve the area. The City has
policies that require the developer to pay for infrastructure improvements and other needed
facilities and resources.
Figure 2-11
SOI Study Area #9
Study Area
City Limit
URL
1,600 acres – Open
Space
9
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Memorandum of Agreement
The City Council and County Board of Supervisors will be considering the Memorandum of
Agreement (MOA) between the City of San Luis Obispo and the County of San Luis Obispo in
summer of 2016. That MOA covers the areas of most interest to the City and will be in place
under this update. The draft MOA is included as Appendix B. The CKH Act requires that this
agreement be given “great weight” by the Commission in making its decision regarding the
update of the City’s SOI. The City and the County agreed upon the extent of the City’s Sphere
of Influence, the development standards and zoning process. The general approach of the
MOA is to ensure close coordination and cooperation between the City and County on the future
planning and development of the areas within the City’s SOI boundary. Key provisions of the
MOA include the following:
Written documentation to use other jurisdictions’ services as a way to mitigate an impact to
services;
Referral of projects in the fringe area to the City and County;
Inclusion of growth management policies;
Fair distribution of mitigation/impact fees;
Meetings among emergency response agencies to discuss impacts and fiscal issues;
Prior City review of projects submitted to County & written documentation that the
City will not consider annexing the project; and
Coordination of City and County agricultural and open space policies.
The MOA helps enhance the communication between the City and the County and helps to
clarify the process for developing the SOI areas. Also included in the MOA are the relevant
goals from the each jurisdiction’s General Plan.
Conditions of Approval
The following conditions of approval are adopted based on this updated Sphere of Influence
Update, Municipal Service Review, Memorandum of Agreement, the environmental review, and
public input. These reflect the current situation for services and protection of agricultural and
open space lands.
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WATER
a. As a condition of an annexation application being filed with LAFCO, the City shall
document with a water supply analysis that an adequate, reliable, and sustainable water
supply is available and deliverable to serve the areas proposed for annexation.
AGRICULTURE & OPEN SPACE
a. The City shall identify all agricultural and open space lands to be protected in the
annexation areas when prezoning or preparing land use entitlements for an area.
b. Prior to LAFCO filing with the Board of Equalization the certificate of completion (if an
annexation is approved), conservation easement(s) or other appropriate mitigation
measures as listed in LAFCO’s Agricultural Policy 12, shall be recorded on the deed(s)
of the properties affected by the annexation specifying the areas to be protected in
perpetuity.
PRESENT AND PLANNED LAND USE
The land use zoning within the proposed Study Areas of the Sphere of Influence is Agriculture
to industrial and open space. The planned use for areas might include commercial, residential,
and open space. The proposed SOI area compares favorably with the existing pattern of
development and would promote the efficient provision of public services, focus development to
the existing urban area, encourage the preservation of open space and agricultural land and
would further discourage urban sprawl in the area. The City’s General Plan policies enable the
City to effectively manage the growth and development within this area. The policies would
encourage a more compact urban form, preservation of agricultural and open space, efficient
provision of public services, and a more efficient circulation pattern. The recommend SOI area
would promote the efficient provision of public services, focus development towards the existing
urban area, encourage the preservation of open space and agricultural land and would further
discourage urban sprawl. Pursuant to the CKH Act the following determinations must be made
by LAFCO to approve the Sphere of Influence.
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PRESENT/PROBABLE NEED FOR PUBLIC SERVICES
The present need for public services in the proposed SOI area varies in the different areas.
Many of the properties’ current uses are for agricultural and open space purposes. The
probable need for public services in these areas is low. In other areas such as San Luis Ranch
(Study Area #8), Chevron (Study Area #6), and Broad Street (Study Area #4) the probable need
for public services will be greater when development occurs. It’s likely that urban levels of
development will be proposed in the Sphere of Influence.
SOCIAL AND ECONOMIC COMMUNITIES OF INTEREST
The City of San Luis Obispo has a variety of social and economic communities of interest,
including numerous businesses, schools, churches, public sector facilities, and other
Community Service programs that serve residents. If the development of the SOI is managed
pursuant to the policies of the City, these areas should be a net benefit to the social and
economic communities of interest.
The existing social fabric of the City will change by adding this area into the Sphere. It is likely,
however, that this change will be positive, bringing in new families and economic buying power
as well as possible revenues that could help the City’s budget. Industrial, commercial, and retail
areas could bring jobs and economic growth into the City. Chapter Three of this report provides
information that documents the effect of the proposed Sphere of Influence on the City and
evaluates the City’s ability to manage expansions in these areas.
Present and Probable need for Public Facilities and Services of
Disadvantaged Unincorporated Communities
The City of San Luis Obispo has a variety of economic diversity that lives within the City limits
and surrounding area. Disadvantaged community means a community with an annual median
household income that is less than 80 percent of the statewide annual median household
income. Generally the City of San Luis Obispo’s Sphere of Influence does not qualify under the
definition of disadvantage community for the present and probable need for public facilities and
services. The State Water Board has identified the Higuera Street Apartments as a potential
disadvantaged community with a failing private water system that could be extended services
from the City by either an outside user agreement or annexation.
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LOCAL SPHERE OF INFLUENCE GUIDELINES
The Cortese/Knox/Hertzberg Act (CKH Act) requires that each Commission establish written
policies and procedures. The Act also states that LAFCOs are to exercise their powers
consistent with those policies and procedures. San Luis Obispo LAFCO policies encourage and
provide for well-ordered, efficient urban development patterns, balanced with preserving open
space and agriculture land while discouraging urban sprawl. This Sphere of Influence Update
and Municipal Service Review for the City of San Luis Obispo is consistent with those polices
and the purposes of LAFCO. The recommended SOI discourages urban sprawl and
encourages the preservation of open space and agricultural land through the implementation of
the City’s Open Space program and policies by maintaining the existing Sphere of Influence.
Inclusion in the City’s SOI also provides for the more efficient provision of public services and is
consistent with the policies of the San Luis Obispo LAFCO. The City and County have adopted
programs and policies in their General Plans to preserve the agricultural lands and natural
resources surrounding the City which is consist with LAFCO’s policies.
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CHAPTER 3
SAN LUIS OBISPO – MUNICIPAL SERVICE REVIEW
The legislative authority for conducting Municipal Service Reviews is
provided in Section 56430 of the Cortese-Knox-Hertzberg Act
(CKH). The Act states that, in order to update Spheres of Influence
in accordance with Government Code Section 56425, LAFCOs are
required to conduct a service review of the municipal services
provided by the jurisdiction. The Municipal Service Review factors
that need to be addressed include:
1. Growth and Population projections for the affected area
2. Location and characteristics of any disadvantaged unincorporated communities
3. Present and planned capacity of public facilities and adequacy of public services,
including infrastructure needs or deficiencies
4. Financial ability of agency to provide services
5. Status of, and opportunity for, shared facilities
6. Accountability for community service needs including governmental structure and
operational efficiencies
7. Any other matter related to effective or efficient service delivery, as required by
commission policy
The above-listed factors are addressed in this chapter and written determinations are included
for each factor as called for in the CKH Act.
The table below indicates both the existing and possible agencies that could provide services to
the SOI area. This assumes that the properties in the SOI area are eventually annexed into the
City and are not served through an Outside User Agreement or some other mechanism.
Typically, upon annexation, the City provides a full array of public services to the property or
area being annexed.
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Table 3-1: Existing & Proposed Service Providers within SOI
Service Existing Agency Providing Services for
SOI Areas
Agency to Provide
Services for SOI Areas
General Government
(including Governing Board,
Counsel, Assessor, Finance
and General Administration)
County of San Luis Obispo
City of San Luis Obispo
and County of San Luis
Obispo
Water Service Individual Wells or community water
system
City of San Luis Obispo
Wastewater collection,
treatment and disposal
County of San Luis Obispo Public Works or
Septic Systems
City of San Luis Obispo
Storm water drainage, flood
control County of San Luis Obispo Public Works City of San Luis Obispo
Roads, Circulation, Street
Maintenance
Street Lighting
County of San Luis Obispo
City of San Luis Obispo
Public Transportation SLO Transit Authority City of San Luis Obispo
Law Enforcement and Fire
Protection Services County Sheriff/County Fire Department
City of San Luis Obispo
Police and Fire
Departments
Community
Development/Planning and
Building Services, Code
Enforcement
County of San Luis Obispo
City of San Luis Obispo
Solid Waste County of San Luis Obispo-via contractor
or individual responsibility
City of San Luis Obispo
Parks and Recreation County of San Luis Obispo City of San Luis Obispo
Library County of San Luis Obispo City of San Luis Obispo
The San Luis Obispo Sphere of Influence was most recently updated in 2006, and included
eight study areas, which expanded or added to the six existing areas, totaling 5,930 acres
Sphere of Influence. The eight areas included were 24ac Filliponi, 169ac expansion of Florita-
Alrita, 105ac Wixcom, 70ac Righetti Hill (now part of the Orcutt Specific Plan Annexation #79),
185ac Broad Street, 519ac Avlia Ranch, 870ac LOVR/101, and 1,386ac Cerro San Luis area.
The existing areas were reconfirmed and included 64ac Florita-Alrita, 274ac Orcutt Area (
portions annexed in 2011), 1,100ac Airport Area (portions annexed in 2007), 185ac
Dalidio/McBride, 118ac Madonna (annexed in 2010), and 520ac Calpoly area. The now nine
sites comprise the present day San Luis Obispo SOI. Figure 3-1 shows the adopted Sphere of
Influence. Figure 3-2 shows the City of San Luis Obispo “Greenbelt” which indicates where
outside the urban reserve line, undeveloped land should be permanently protected as open
space.
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Table 3-2: Existing & Added SOI Areas in 2006 Update
SOI Area Acres Existing or added to
SOI in 2006 Status
Filliponi 24ac added SOI
Florita-Alrita 169ac expanded SOI
Wixcom 105ac added SOI
Righetti Hill 70ac expanded Annexed
Broad Street 185ac added SOI
Avlia Ranch 519ac added SOI
LOVR/101 870ac added SOI
Cerro San Luis area 1,386ac added SOI
Florita-Alrita 64ac existing SOI
Orcutt 274ac existing Annexed
Airport Area 1,100ac existing SOI
Dalidio/McBride 185ac existing SOI portion Anx
Madonna/Gap 118ac existing Annexed
Calpoly 520ac existing SOI
Table 3-3: Study Areas in 2016 Update
Study Areas Acres Land Use/Zoning Existing Land Use Build-Out Potential
Area #1 - CALPOLY 1,057 Public Facility Residential/Grazing Unknown
student housing
Area #2 - Flora-Alrita
237 Rural Lands Open Space 0 units
Area #3 - Orcutt
175 Agriculture/Residential
Suburban
Residential Rural 17 units
Area #4 - Broad St. 96 Agricultural/Commercial Commercial/Grazing 0 units
Area #5 - Airport 544 Agriculture/Comm.
/Industrial
Commercial/Industrial
/Grazing 0 units
Area #6 - Chevron 912 Agriculture/Rec Grazing Unk units
Area #7 – LOVR/Hwy101
1,180 Agriculture/Rural Lands Grazing Unk units
Area #8 – San Luis
Ranch
130 Agriculture Crops 500 units
Area #9 - Cerro San Luis
1,600 Agriculture Grazing/Open Space 0 units
Source: SLO County Planning & Building Department, General Plan
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Figure 3-1 - San Luis Obispo’s Existing SOI
Madonna
Annexed
In 2010
Orcutt
Annexed
in 2011
Airport
Annexed
in 2007
Margarita
Annexed
in 2007
Farmhouse
Annexed
in 2015
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Figure 3-2 – Greenbelt
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3.1 GROWTH AND POPULATION PROJECTIONS FOR THE
AFFECTED AREA
Purpose: To identify future growth patterns and project population increases.
POPULATION
This factor is intended to identify growth and population projections for the affected areas of a
jurisdiction. This section will use various sources of information to project growth and population
for the City of San Luis Obispo. The previous Sphere of Influence and Municipal Service Review
Update for San Luis Obispo provides background information. The table below summarizes
proposals considered by LAFCO since 2004 to the present.
Table 3-4 –Proposals Since 2004
Date
Action
Proposal
Acreage
Status
4/16/2015 Annexation Anx #78 to SLO
(Farmhouse) 0.74 Approved 4/16/15
4/21/2011 Annexation Anx #79 to SLO
(Orcutt Area) 231 Approved 11/16/11
06/13/05 Annexation Anx #74 to SLO
(Madonna/Gap) 31 Approved 01/21/10
05/02/07 Annexation
Anx #77 to SLO
(Airport/Margarita
Areas)
620 Approved 4/17/08
07/27/04
Annexation
Anx #71 to SLO
(McBride) 26
Approved 10/20/05
07/01/04 Annexation Anx #70 - Bishop
Knoll Estates 9.77 Inactive
03/05/04 Annexation Anx #69 - Dalidio – 131 Inactive
The Growth and Population factor includes a summary of population data and land use and
zoning in the area as well as growth trends.
According to the 2010 US Census, the City had a population of 45,119. Total housing units
were estimated to be 20,779 units. The City estimated build-out population within the current
City limits is 56,750. This assumes an existing population of 43,937, plus 4,495 units occupied
at a rate 2.2 people per unit.
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The City’s population grew by 2.1% from 2000 to 2010. In addition to this permanent population,
the City has a high number of visitor-serving uses such as hotels, vacation rentals, and
restaurants. Water use, wastewater flows and traffic conditions are all affected by these uses
and are not reflected in population figures.
California Department of Finance Population Estimates-2005 to 2015
The California Department of Finance (DOF) population estimates come from administrative
records of several state and federal government agencies, as well as numerous local
jurisdictions. According to the DOF, the total state estimate was within one-half of one percent
(0.5%) of the census count. The table below reflects the DOF estimates for San Luis Obispo
and the County of San Luis Obispo over the last decade. DOF estimates San Luis Obispo’s
current population as 45,400.
Table 3-5: Population Estimates
2005 2006 2007 2008 2009 2010* 2011 2012 2013 2014 2015
SLO 44,687 44,559 44,433 44,579 44,829 44,948 45,269 45,308 45,400 47,120 48,800
County
Total
261,699 263,939 266,043 268,636 270,901 269,637 270,305 271,483 271,754 272,773 273,792
Source: DOF E-4; E-1; P-1 Population Estimates for Cities, Counties and State, 2005-2015
* DOF made an adjustment after the 2010 Census was released for San Luis Obispo County.
Council of Governments Population Projections - 2011
The Council of Governments had the consulting firm of AECOM Technical Services update
population projections for San Luis Obispo County, including the City of San Luis Obispo. The
original study was completed in 2006 and was updated in 2011 to take into account the
economic downturn. These projections use a variety of data sources and assumptions to project
the future population of the cities and unincorporated areas of the County. These projections
incorporate information from the State of California about future population increases, past and
present County growth trends, and projected changes within the region. The consultants worked
with local planners to anticipate future growth in the various areas of the County to estimate the
potential for increases in population. The updated report presents low, medium, and high
population growth projections for areas in the County including the City of San Luis Obispo. The
table below shows those results:
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Table 3-6: Projected Population Growth San Luis Obispo
San Luis Obispo Council of Governments Projections
2010 2015 2020 2025 2030 2035 2040
LOW 43,937 44,667 45,964 46,602 47,401 48,208 49,037
MEDIUM 43,937 44,668 45,969 46,704 47,622 48,550 49,487
HIGH 43,937 44,669 45,972 46,792 47,822 48,860 49,897
San Luis Obispo is the County seat and the most populous of the seven cities in the county. The
2010 AECOM Technical Services population for the City was 43,937, down only 242 residents
from 2000. In 2010, there were 20,553 housing units with 2.2 persons per household and a
3.45% vacancy rate.
COUNTY’S GENERAL PLAN
The County’s San Luis Obispo Inland Planning Area of its General Plan establishes land use
policy in the unincorporated areas around the City of San Luis Obispo. The urban reserve line
identifies where the County anticipates urban development over the next 20-years. The URL of
San Luis Obispo encompasses approximately 2,300 acres beyond the existing City limits.
Areas within the urban reserve line around San Luis Obispo and within the Los Ranchos/Edna
Village have been planned for urban density development, while areas outside of the urban or
village reserve lines are maintained in larger parcels and in uses compatible with the production
agricultural and visual values they contain. The County’s Plan generally promotes the
preservation of prime agricultural lands and open space corridors. It has a number of policies
that call for guiding growth away from agricultural areas and promoting infill or other non-prime
agricultural use.
The County’s Conservation and Open Space Element (COSE) consolidated five individual
elements of the General Plan (conservation and open space, historic, esthetic, and energy
elements). The COSE is utilized as a tool to protect and preserve the unique community
resources. The element addresses many issues with regard to conservation, development, and
utilization of natural resources. The element includes policies and strategies that address
reducing greenhouse gas emissions, directing growth away from areas with constrained natural
resources, water and energy conservation, use of low impact development and green building
techniques, increased protection of community separators and scenic corridors. The County’s
overarching land use planning framework Strategic Growth Principles guided the element to
direct growth to occur in a more sustainable manner.
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Figure 3-3 (E) Land Use
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The San Luis Obispo County Inland Area Plan envisions continued opportunities for economic
vitality and growth, along with the opportunity to maintain the environmental attributes that have
contributed to the area's historically healthy economy. The community's excellent living
environment and educational opportunities can act to attract or retain businesses providing high
quality job opportunities for local residents, enabling them to afford housing within the area,
while also enhancing local tax revenues needed for public services. The planning area should
maintain a rural character in harmony with agriculture, business, recreational, environmental
and residential opportunities. Conservation of the area's resources is an integral part of
economic development in order to have a lasting economy that is strengthened by the region's
environmental assets.
RMS Biennial Report – 2010-2012
The County’s most recent biennial Resource Management System (RMS) was adopted for
2012-2014. However, this report was reformatted to look at topic on a regional basis, such as,
water and wastewater versus looking at each specific community as a whole on how these
services are provided and evaluating then on the rating system like the previous report from
2010-2012. So for purposes of this report the 2010-2012 RMS will be used to discuss the City
of San Luis Obispo’s performance. The Resource Management System (RMS) provides
information to guide decisions about balancing land development with the resources necessary
to sustain such development. It focuses on, 1) Collecting data, 2) Identifying resource problems
and 3) Recommending solutions.
According to the 2010-2012 Resource Management System Biennial Report, the City estimates
that it now serves approximately 44,229 residents in 2012 compared to an estimated 42,312 in
2000. Over the last 12 years, San Luis Obispo’s population has increased by approximately
1,917 people. This equates to 0.3% of population increase over the 12 year period. The table
below reflects the population data from the census and the County’s Resource Management
System Biennial Report: The year 2030 population estimate is 47,622. Buildout population is
approximately 56,750.
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Table 3-7: Historical & Projected Population Growth
San Luis Obispo California: Census and RMS Data
1990 1) 2000 1) 2010 2) 2015 2) 2020 2) 2025 2) 2030 2)
Population 41,958 42,312 43,937 44,590 45,969 46,704 47,622
10 Year
Increase -- 354 1,625 653 1,379 735 918
10 year %
Incr. -- <1% 3.6% 1.4% 2.9% 1.5% 1.9%
Sources: 1) US Census, 2) Resource Management System Biennial Report, 2010-2012
City of San Luis Obispo Urban Water Management Plan, 2010
Housing Units and Growth Projections. In the 2010 Urban Water Management Plan, the City
of San Luis Obispo estimates that 45,119 people lived in the City. In 2010, the U.S. Census
stated the total number of dwelling units as 20,375 with an average household size of 2.2
persons and an occupancy rate of about 96.5%. The City’s Urban Water Management Plan
projects the current City limit boundaries to yield a population of 57,200 persons. The 2010
UWMP based its projections from the City’s General Plan. The City of San Luis Obispo has
updated its General Plan in 2015 which establishes a growth rate of 1% per year which
estimates a build-out population of 56,750 persons.
The Urban Water Management Plan estimates the population build-out for the year 2030 will be
57,200 persons. The use of 2.3 persons per household is based on current occupancy patterns.
The table below is taken from the 2010 Urban Water Management Plan and shows historic and
projected growth rates:
Table 3-8: Historical & Projected Population Growth
1980(1) 1990(1) 2000(1) 2010(2) 2015(2) 2020(2) 2025(2) 2030(2)
Population 34,252 41,958 44,619 45,119 44,910 46,110 47,010 48,200
10 Year
Increase -- 7,706 2,661 500 -209 1,200 900 1,190
10 year Avg.
Increase -- 18.3% 6% 1.1% -<1% 2.6% 1.9% 2.4%
Average per
Year -- 1.8% <1% <1% -<1% <1% <1% <1%
(1) Source: U.S. Census
(2) Source: City’s 2010 Urban Water Management Plan.
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CITY OF SAN LUIS OBISPO GENERAL PLAN, 2015
The City of San Luis Obispo recently updated its General Plan Land Use and Circulation
Elements in January 2015. Over the past 40 years, the City experienced a slow-down in the rate
of growth since 1980. From 1970 to 1980 the City’s population increased at an average growth
rate of 2.2% per year. In the 1980’s (1980-1990) the City’s population again grew at a rate of
2.2% per year. Over the past 10 years the City has grown at a rate of approximately 0.5% per
year. From 1990 to 2000 population growth slowed to about a rate of 0.5% per year.
San Luis Obispo’s growth is likely to remain at a nominal level as the economic recovery
continues to evolve over the next few years. In 2010, the City’s Community Development
Department estimated the City is about 81% built out with a potential for approximately 4,452
new dwellings in the community at this time. Under the certified Housing Element 2010 the City
estimates a total of 3,773 new dwelling units as a realistic build-out. Since that estimate the City
annexed the Orcutt Area (231 acres) with the potential to add an additional 1,000 homes and
the Margarita Area with 870 residential units. Under the 2014 Housing Element Update an
estimated 3,477 new dwelling units could be accommodated.
If the City were to continue growth at their maximum 1% growth rate allowed by the General
Plan, slightly more than 1,113 new units per year would reach build-out within six years. Before
a residential expansion area is developed, the City must have adopted a specific plan or a
development plan for the project. Such plans for residential expansion projects will provide for
phased development, consistent with the population growth outlined in the table below. The
City’s policies encourage in-fill development, mixed-use, and higher densities within the core to
accommodate the growth at build-out. The following table summarizes the growth potential
within the City, expansion areas and SOI study areas.
Table 3-9
Anticipated Population Growth
Year Approx.
Maximum No of Dwellings
Anticipated No. of People
(based on 2.3 persons per dwelling)
2009 20,222* 44,521*
2014 21,253 48,881
2019 22,337 51,375
2024 23,477 53,997
2029 24,674 56,750
Estimated urban reserve capacity: 57,200
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* Actual Number from 2010 Housing Element. Remaining dwellings and population numbers based on
1% annual growth.
** Dwelling count of 24,300 would be reached in approximately 2028.
Note: the City’s Housing Element was adopted prior to the annexation of Orcutt Area which potentially
could add an additional 1,000 homes, or estimated 2,251 people.
The City has some potential for 3,000 housing units to be development within the City limits
under current zoning. The newly annexed areas of Orcutt and Margarita adds an additional
2,000 housing units potential. The remaining Sphere of Influence could add additional 1,200
residential housing units to the City’s inventory.
Table 3-10
Build-out Summary: Vacant Land within City plus Expansion & SOI
Zone Description Acres Approx. Units Population
R-1 Low-density
Residential
1,644 522 1,200
R-2 Medium-density
Residential
566 871 2,003
R-3 Medium-high-density
Residential
175 360 828
R-4 High-density
Residential
200 266 611
C/OS Conservation/Open
Space
2,420 266 611
AG Agricultural 0 0 0
C-C Community
Commercial
50 87 200
C-D Downtown Commercial 46 99 227
C-R General Commercial 164 300 690
C-N Neighborhood
Commercial
25 79 181
C-T Tourist Commercial 113
10 23
C-S Commercial Service 458 112 257
M Manufacturing 257 190 437
O Office 191 67 154
Orcutt (annexed
2011)
Mixed 231 979 2,251
Margarita (annexed
2007)
Mixed 418 870 2,001
Total Vacant Sites
within City Limits
6,958 5,078 11,674
Edna-Islay West Mixed 20 46
Minor Annexation
Areas
Residential 1,191 2,739
Total 6,958 6,289 14,459
Source: City of San Luis Obispo 2013, SLO County Planning & Building Department.
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Figure 3-4
Development Capacity by Zone and Outside City
Source: City of San Luis Obispo, Community Development Department, 2014
Table 3-11
Major Expansion Areas Phasing Plan, 2008
(a) Dwellings affordable to residents with very low, low, or moderate incomes, as defined in the Housing
Element, are exempt.
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(b) This is a simple count of dwellings and is not meant to reflect the Zoning Regulations method for calculating
fractional dwellings.
(c) Includes the incorporated area in 1994 and certain annexations during 1994-1998.
(d) A calculated result: dwellings permitted (new construction minus dem olitions), divided bt three, divided by
the total number of dwellings projected to be in the city at the middle of the interval, times 100; assumes that
the maximum amounts are achieved in previous intervals.
(e) A calculated result: the compound growth rate that over 24 years would result in the total net increase.
Visitor-Serving. The City attracts many tourists to the County and promotes a strong and
vibrant tourism industry that contributes economically to the County and other jurisdictions in the
area. San Luis Obispo has an inventory of 1,935 hotel rooms. Beyond these established hotels,
motels and RV parks, San Luis Obispo has a number of vacation rentals consisting of single-
family homes or condominium units. The 2,000 or so visitor accommodations in San Luis
Obispo represent approximately 23% of the total available accommodations Countywide (EVC;
2008). With regard to hotels that could be built within the City, the Community Development
Department estimates that approximately 400 units could be developed on properties zoned for
hotel/motel development. This number is speculative, since it is difficult to know if a commercial
property would indeed be used as a hotel site. The City has added an additional 100 rooms
since 2005 to reach the 1,935 room inventory noted.
Recent Building Permit Activity
Building Permits have been compiled for San Luis Obispo from the Community Development
Department. The table below shows the building permits by year from 2006 through 2013. Since
2006 the City has finaled 161 new single-family units and 401 multi-family units.
Table 3-12: Building Permits Finaled 2006-2013
SF MF
2013 19 73
2012 17 17
2011 2 65
2010 32 57
2009 19 39
2008 30 27
2007 21 104
2006 21 19
Total 161 401
Source: San Luis Obispo Community Development Department 2014
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The trend over the last decade had been a decrease in construction of office space and
services and manufacturing buildings, with sporadic retail development. In 2015, nonresidential
development has increase, with the majority being commercial components of mixed-use
projects. The table below describes project in process.
Table 3-13: Future Non-Residential Planning Project
Project Name Non-res. Sq. Ft. Status
Mixed-Use
Chinatown 140,000 Under construction
Marsh St Commons 8,000 Completed
Ah Louis 21,000 Entitled
Garden St Terrace 100,000 Under Construction
Broad St Mixed 7,200 Entitled
Marsh St Mixed Use 7,400 Entitled
Monterey Place 25,000 Entitled
Pacific Courtyards 8,000 Under Construction
Commercial
Airport Business Park 75,000 Completed
Art Center 22,000 Entitled
Long-Bonetti Ranch 47,000 Under Construction (revising project)
SESLOC 40,000 Completed
French Hospital 22,900 Completed
Mind Body 60,000 Completed
Old Mission School 4,000 Completed
Buffalo Wild Wings 6,000 Completed
1865 Monterey ( Hotel) 60,000 Under construction
Digital West 80,000 Entitled
Aerovista Office 44,000 Entitled
Volny Office 37,000 Entitled/Under Construction
Source: San Luis Obispo Community Development Department 201 6
Land Use
The General Plan allows for new growth within the City based on an analysis of available
resources (water, sewer, etc) and demand for those resources. The policies and standards in
the City’s General Plan provide for growth in the current SOI if it can be demonstrated that
water, sewer and other resources are available by the developer or services can be made
available without adversely affecting existing residents. There are no growth limits to
commercial or visitor-serving growth in place under the General Plan. The City will consider
establishing limits for the rate of nonresidential development if the increase in nonresidential
floor area for any five-year period exceeds five percent.
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It should be noted that the City’s General Plan provides a clear and detailed policy base with
regard to future growth and development within the City. It comprehensively addresses the
various facets of development, provides clear information to the public, and gives decision-
makers a sound foundation for considering future projects. The City has planned for areas in
the SOI in approving Specific Plans for Airport/Margarita and Orcutt area. Both of these have
been annexed into the City.
General Plan Annual Report
The City Community Development Department prepares an annual report regarding the
implementation and status of the General Plan. The report is organized into two key sections:
the administration of the General Plan including element updates and amendments, and the
implementation of the various elements and policies found in the General Plan. Under each of
these categories the following General Plan matters are discussed:
Table 3-14: Summary of General Plan Annual Report
Section Specific Issue
Administration of General Plan General Plan Status
Workshops & Meetings
Council Goals
Implementation of General Plan Housing & Population
Growth Management
Open Space Protection
Major Implementation Plans
Historic Preservation
Water Supply
Circulation
Safety
Neighborhood Wellness
Parks and Recreation
The following section will highlight key portions of this report that are relevant to the Municipal
Service Review.
Element Updates. The City adopted the updated Land Use Element and Circulation Element in
January 2015; the Housing Element was adopted in January 2015 as well. In order to be
prepared to evaluate the changes to the Land Use and Circulation Element, a revision to the
City’s circulation model was initiated in 2009 with the City being awarded a grant in 2011 for
ongoing efforts and the update was completed in 2015. Amendments to the Safety Element
were updated in 2012 in order to implement updates to the State Fire Hazards maps.
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General Plan Amendments. In 2015, the City is amending the General Plan with text and map
amendments. Map amendments typically change the zoning of a particular site or area.
Amendments to a City’s General Plan are not unusual and are evaluated by the Planning
Commission and City Council on a case-by-case basis. Amendments can be initiated by the
City or by a property owner. The most significant changes were associated with the
Madonna/Gap annexation from Open Space to Commercial-Retail Zoning designation to allow
for large retail development (Target) and open space acquisition.
Growth Management. The City implements growth management policies by phasing housing
construction in large annexation areas. These locations would include the Irish Hills, Margarita
and Orcutt areas. The City has adopted a phasing schedule that allows for a specific number of
residential units to be constructed over a three-year period. The Council considers the phasing
schedule as needed and adjusts it (if appropriate) to meet the needs of project proponents and
residents of the City. The Margarita and Orcutt areas are expected to be built out during the
three-year period. Amendments to the phasing schedule will likely be considered to reflect work
being completed on the Margarita and Orcutt Area Specific Plans, as well as revisions to the
Housing Element.
Open Space Protection. The City has adopted many policies regarding the protection of open
space and sensitive areas in and surrounding the City. The City has identified a large greenbelt
area that encompasses the City and surrounding environs. The City is working toward
protecting the biological, agricultural, aesthetic, and/or recreational resources that are found in
and around the City. The Figure 3-2 above shows the Greenbelt adopted by the City.
Policies Specific to SOI. San Luis Obispo’s General Plan Policy 1.12 Annexation and Services
addresses the criteria to be used when considering annexation and development projects.
1.12.1 Water and Sewer Service
“The City shall not provide nor permit delivery of City potable water or sewer services to the
following areas. However, the City will serve those parties having valid previous connections or
contracts with the City. A. Outside the City limits; B. Outside the urban reserve line; C. Above
elevations reliably served by gravity-flow in the City water system; D. Below elevations reliably
served by gravity-flow or pumps in the City sewer system.
1.12.2 Annexation Purpose and Timing
The City may use annexation as a growth management tool, both to enable appropriate urban
development and to protect open space. Areas within the urban reserve line which are to be
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developed with urban uses should be annexed before urban development occurs. The City may
annex an area long before such development is to occur, and the City may annex areas which
are to remain permanently as open space. An area may be annexed in phases, consistent with
the city-approved specific plan or development plan for the area. Phasing of annexation and
development will reflect topography, needed capital facilities and funding, open space objectives,
and existing and proposed land uses and roads.
1.12.5 Required Plans
The City shall not allow development of any newly annexed private land until the City has
adopted a specific or development plan for land uses, open space protection, roads, utilities, the
overall pattern of subdivision, and financing of public facilities for the area.
1.12.6 Development and Services
The City shall approve development in newly annexed areas only when adequate City services
can be provided for that development, without reducing the level of public services or increasing
the cost of services for existing development and for build-out within the City limits.
1.12.7 Open Space
The City shall require that each annexation help secure permanent protectio n for areas
designated Open Space, and for the habitat types and wildlife corridors within the annexation
area that are identified in the Conservation and Open Space Element. Properties, which are both
along the urban reserve line and on hillsides, shall dedicate land or easements for about four
times the area to be developed (developed area includes building lots, roads, parking and other
paved areas, and setbacks required by zoning). (See also the Hillside Planning policies, Section
6.2). The following standards shall apply to the indicated areas:
A. Airport Area Specific Plan properties shall secure protection for any on-site resources
as identified in the Conservation and Open Space Element. These properties, to help
maintain the greenbelt, shall also secure open space protection for any contiguous,
commonly owned land outside the urban reserve. If it is not feasible to directly obtain
protection for such land, fees in lieu of dedication shall be paid when the property is
developed, to help secure the greenbelt in the area south of the City's southerly
urban reserve line.
B. Foothill Annexation: The northern portion of the Foothill property, and the creek area
shall be annexed as open space. Development on this site should be clustered or
located near Foothill Boulevard, with the northern portion of the site and creek area
preserved as open space.
Policy 7.3.4 discusses the “Airport Area” properties that may be annexed in the future.
7.3.4 City Annexation and Services
The City shall actively pursue annexation of the Airport Area as noted in the Airport Area Specific
Plan. Airport Area land inside the urban reserve shall be considered for annexation if it meets the
criteria stated in Policy 1.12.4 and provisions in the Airport Area Specific Plan.
7.3.5 Greenbelt Protection
The City shall ensure annexation of the Airport Area Specific Plan is consistent with the growth
management objectives of maintaining areas outside the urban reserve line in rural,
predominantly open space uses. Annexation shall not take effect unless the annexed area helps
protect an appropriate part of the greenbelt near the Airport Area, through one or more of the
following methods:
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A. Dedicating an open-space easement or fee ownership to the City or to a responsible
land-conservation organization.
B. Paying fees to the City in-lieu of dedication that shall be used within a reasonable time
to secure greenbelt open space near the Airport Area.
7.3.7 Development Before Annexation
A. Areas which are designated for eventual urban development in the Airport Area Specific
Plan may be developed during the interim with rural residential or rural commercial uses. In such
areas, County development standards and discretionary review should assure that projects will
not preclude options for future urban development consistent with the City’s planning policies and
standards. Before any discretionary County land-use or land-division approval for such areas, a
development plan for the site should be prepared, showing that circulation, water and other utility,
and drainage proposals will be compatible with future annexation and urban development; and
conditions of approval should include payment of City fees required to mitigate traffic, housing,
and open space impacts.
B. Any development within the urban reserve approved by the County prior to annexation
should comply with City standards for roadway cross -sections, bus stops, walking and bicycle
paths, landscaping, view protection, setbacks, preferred site layouts, and architectural character.”
The General Plan also encourages "proactive planning.” This is to say that the City should be
establishing goals for land use and development within the City, within the planned expansion
areas comprising the Sphere of Influence. The Memorandum of Agreement between the City
and County provides for this type of collaboration. The Memorandum of Agreement will be
reviewed and updated as part of the Sphere of Influence and Municipal Service Review
process.
Housing Element. The City’s Housing Element was adopted by the City Council and certified
by the State Department of Housing and Community Development (HCD) in 2015. The Goals,
Policies and Programs found in the Housing Element are the Housing Implementation Plan for
the period from January 1, 2014 through July 1, 2019. Under the planning cycle January 1,
2014 through July 1, 2019 the City must provide zoning for 1,144 residential units. Because
HCD completed the review and certified the Housing Element in 2010 that required a larger
residential potential and the fact that the City did not build a large number of residential units,
the current cycle is a lower total therefore the City should be able to meet its targets.
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Table 3-15: 2014-2019 - SLOCOG Regional Housing Needs Allocation
Units By Income Category
Very Low Low Moderate Above
Moderate Totals % of
Units
Arroyo Grande 60 38 43 101 242 5.8%
Atascadero 98 62 69 164 393 9.5%
Grover Beach 41 25 29 69 166 5.8%
Morro Bay 39 24 27 65 154 3.7%
Paso Robles 123 77 87 206 492 11.8%
Pismo Beach 38 24 27 64 152 3.6%
San Luis Obispo 285 179 201 478 1,144 27.3%
County Unincorp. 336 211 237 563 1,347 32.5%
Total Units 1020 640 720 1710 4,090 100%
Source: SLOCOG RHNA 2013
The Housing Element is one of the seven State mandated elements of the City's General Plan
and is updated every six years to identify recent demographic and employment trends and can
be correlated with the three-year cycle of transportation planning, which may affect existing and
future housing demand and supply. The Housing Element is used to identify and provide for the
housing needs of the community. The Housing Element addresses the City's ability to meet the
State assigned regional housing needs shown in the above table. It specifies the number of
units to be zoned for in terms of affordability. The City has developed a set of objectives and
specific policies and programs to prepare for the production of housing in the City of San Luis
Obispo.
A Housing Element is required by California law to establish policies and programs that will
support the provision of an adequate housing supply for citizens of all income levels. The intent
of State law is to assure that jurisdictions in the State provide adequate housing to all members
of the community. While the State Department of Housing and Community Development (HCD)
reviews the Housing Element to assure compliance with housing law, each jurisdiction must
identify its particular issues to successfully address its housing needs.
The Housing Element provides a detailed assessment of the housing stock in San Luis Obispo,
including data on housing types, physical condition, cost and availability. The Element also
examines special housing needs of the population such as the elderly, farm workers and the
homeless. It identifies opportunities for energy conservation when housing is constructed or
remodeled. The Element assesses the effectiveness of past housing programs. The availability
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and capacity of land and public services for housing development are examined along with
factors that may constrain the production of affordable housing. Particular attention has been
paid to the need for affordable housing.
An understanding of existing housing conditions in the City is necessary as a basis for new
Housing Element policies to guide the use and development of housing that will be adequate
and affordable. In addition to this focused information, throughout the document comparisons to
San Luis Obispo County demographics and statistics are used to identify possible issues or
pertinent relationships. This assessment is representative of the larger area and informative of
the trends the entire county is experiencing, helping to gain a better understanding of the C ity in
a regional context.
State law is more specific about the content of Housing Elements than any other portion of the
General Plan. That specificity is reflected in the detailed demographics and other data contained
herein. The Housing Element is also the only part of the General Plan that is subject to
mandatory deadlines for periodic updates. Except for the Local Coastal Plan, it is the only
element that is subject to review and "certification" by the state. The City’s Housing Element for
the planning period 2014 to 2019 has been certified by the State.
According to the City’s Housing Element a recent available land inventory has been conducted
which concludes the City has additional land available for 3,477 new residential units within the
City limits. The Housing Element also evaluated the City’s infrastructure to accommodate these
new potential residential developments. The Housing Element states that the City is at 65%
capacity for water service and 88% capacity for wastewater. The City is in the process of
increasing the treatment capacity to 5.5 mgd, which demonstrates the City’s ability to provide
these services to the 3,477 residential units with planned capacity. These services are further
discussed in the next section.
The Circulation Element plans for improvements to the City’s transportation system that will
accommodate existing residents and future growth. Principals, Policies Standards, and
programs supporting these goals are provided in detail in the Circulation Element.
The Water and Wastewater Element addresses issues regarding water supply, wastewater,
and collection system services. Many of these policies, programs and standards related to the
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Sphere of Influence require the payment of fees to offset the infrastructure and service needs to
serve the new development from annexing properties.
Policy B 2.2.1 states Service Outside the City Limits. “To receive City wastewater service,
property must be annexed to the City. The City Council may authorize exceptions to this policy
provided it is found to be consistent with the General Plan.”
The Conservation and Open Space Element addresses natural resources such as water,
soils, creeks, riparian habitat, air quality as well as archaeological resources. This Element is
important in updating the Sphere of Influence because it contains detailed principals, policies,
standards, and programs targeted at preserving open space lands. It is important to note that
the City has adopted a policy base with regard to preserving prime agricultural and open space
lands. This policy base will be referenced in the Memorandum of Agreement. Key policies
include:
6.1.1 Open Space and Greenbelt Designations
The City shall designate the following types of land as open space:.
A. Upland and valley sensitive habitats or unique resources, as defined in the Conservation and
Open Space Element, including corridors which connect habitats.
B. Undeveloped prime agricultural soils which are to remain in agricultural use as provided in
policy 1.8.2.
C. Those areas which are best suited to non-urban uses due to: infeasibility of providing proper
access or utilities; excessive slope or slope instability; wildland fire hazard; noise exposure;
flood hazard; scenic value; wildlife habitat value, including sensitive habitats or unique
resources as defined in the Conservation and Open Space Element; agricultural value; and
value for passive recreation.
D. A greenbelt, outside the urban reserve, that surrounds the ultimate boundaries of t he urban
area, and which should connect with wildlife corridors that cross the urbanized area.
E. Sufficient area of each habitat type to ensure the ecological integrity of that habitat type within
the urban reserve and the greenbelt, including connections between habitats for wildlife
movement and dispersal; these habitat types will be as identified in the natural resource
inventory, as discussed in the "Background to this Land Use Element Update" and in
Community Goal #8.
Public lands suited for active recreation will be designated Park on the General Plan Land Use
Element Map. The City may establish an agricultural designation. (See the Conservation and
Open Space Element for refinements of these policies.)
8.1 Greenbelt. Open space outside the urban area
Secure and maintain a healthy and attractive Greenbelt around the urban area, comprised of
diverse and connected natural habitats, and productive agricultural land that reflects the City’s
watershed and topographic boundaries.
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8.2.1 Open space preserved.
The City will preserve as open space or agriculture the undeveloped and agricultural land outside
the urban reserve line, including the designated Greenbelt as shown in Figure 5, and will
encourage individuals, organizations and other agencies to do likewise.
8.2.2 GOAL: Open space within the urban area.
Within the urban area, the City will secure and maintain a diverse network of open land
encompassing particularly valuable natural and agricultural resources, connected with the
landscape around the urban area. Particularly valuable resources are:
A. Creek corridors, including open channels with natural banks and vegetation.
B. Laguna Lake and its undeveloped margins.
C. Wetlands and vernal pools.
D. Undeveloped land within the Urban Reserve not intended for urban uses.
E. Grassland communities and woodlands.
F. Wildlife habitat and corridors for the health and mobility of individuals and of the species.
G. The habitat of species listed as threatened or endangered by the State or Federal
governments.
H. Prime agricultural soils and economically viable farmland (Figure 10).
I. Groundwater recharge areas.
J. Historically open-space settings for cultural resources, native and traditional landscapes.
K. Hills, ridgelines and the Morros.
L. Scenic rock outcroppings and other significant geological features.
M. Unique plant and animal communities, including “species of local concern.”
8.6.3 Required mitigation.
Loss or harm shall be mitigated to the maximum extent feasible. Mitigation must at least comply
with Federal and State requirements. Mitigation shall be implemented and monitored in
compliance with State and Federal requirements, by qualified professionals, and shall be funded
by the project applicant.
A. For natural habitat that is relatively limited in extent (such as riparian or wetland habitat)
mitigation shall consist of creating twice the area of habitat lost, of equal quality,
B. Habitat created as mitigation should be located and designed to minimize the need for long -
term artificial support (such as supplying wetlands from a well requiring energy and
maintenance).
C. For a widespread habitat type or for farmland, mitigation shall consist of permanently
protecting an equal area of equal quality, which does not already have permanent protection,
within the San Luis Obispo Planning Area.
D. For projects involving enlargement of the urban reserve, mitigation shall consist of
permanently protecting an area not previously protected, that is located and that has
sufficient size (generally four times the area to be developed) to secure a permanent edge to
the city.
1.8.1 Agricultural Protection
The City shall support preservation of economically viable agricultural operations and land within
the urban reserve and city limits. The City should provide for the continuation of farming through
steps such as provision of appropriate general plan designations and zoning.
1.8.2 Prime Agricultural Land
The City may allow development on prime agricultural land, if the development contributes to the
protection of agricultural land in the urban reserve or greenbelt by one or more of the following
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methods, or an equally effective method: acting as a receiver site for transfer of development
credit from prime agricultural land of equal quantity; securing for the City or for a suitable land
conservation organization open space or agricultural easements or fee ownership with deed
restrictions; helping to directly fund the acquisition of fee ownership or open space easements by
the City or a suitable land conservation organization. Development of small parcels which are
essentially surrounded by urbanization need not contribute to agricultural land protection.
The Parks and Recreation, Safety Elements of the General Plan each have principals,
policies, standards, and programs that provide guidance and clarification for the public and
decision makers. These are important topics that the City addresses to ensure a healthful, safe,
and economically viable environment for residents and visitors alike. The policies and programs
in these elements would be applied to the Sphere of Influence.
The City’s current General Plan is based on the ability of the City to accommodate a population
of 56,750. Currently, the City’s population is approximately 45,119 people. The year in which
the City reaches their projected build-out is driven by a number of factors, including economic
and real-estate market conditions. The City projects build-out no sooner than year 2029.
In the City’s Land Use Element land uses are designated in general terms, as are potential
expansion areas. The map on the following page is from the Land Use Element and shows the
urban reserve line, possible land uses, and expansion areas for the City.
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Figure 3-5 Urban Reserve Line
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In completing the recent update of the Housing Element, the City produced a number of studies
regarding housing and residential land resources. This section focuses on the growth that may
occur in the unincorporated expansion areas. The following tables summarize the growth that is
projected for these expansion areas. The County’s build out numbers are based on the
following assumptions: 1) 7 units per acre density for Single Family Zoning, 2) a 75% absorption
rate, and 3) 629 acres of Residential Single Family land.
Table 3-16: Estimated Housing Capacity in Expansion Areas, 2010
Expansion Area Estimated Units in City Estimated Units in County (1)
Orcutt-231 acres 979 2,311
Margarita-418 Acres 870 991
Edna Islay West 20 N/A
Minor Annexations/Cal Poly (2) 1,191 0
Totals 3,060 3,302
Sources: Housing Element, Appendix C Housing Constraints and Resources, City of San Luis Obispo,
2010 County Land Use Element, San Luis Obispo Area Plan, 2000
(1) Residential Single Family Zoning in the unincorporated urban area
(2) Foothill Saddle, Luneta, CDF, Highland, Miossi, Alrita, Maino, Cal Poly-900 student apartments
In some cases, the projects have caused the City to provide emergency response services
outside the City Limits due to the nature of mutual and automatic aid agreements between the
City and the County. Emergency situations that present an imminent threat to public health and
safety require the response of the closest emergency response resources. On the fringes of the
northern and central City, the County Fire Department cannot respond to these situations as
quickly as the City can. The County contracts with the California Department of Forestry for
emergency response services. The closest station is located at the Airport.
Another issue is the construction of package sewer plants and individual wells to serve
developments in the unincorporated areas. Building infrastructure to serve individual
development projects can be inefficient. The City and County should consider working with
property owners toward the goal of having the City provide services in areas that could be more
efficiently and effectively served by the City. The Memorandum of Agreement (MOA) between
the City and the County provides for early coordination regarding these issues.
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WRITTEN DETERMINATIONS
The following written determinations are based on the information contained in the above
section regarding Growth and Population:
1. The City’s General Plan provides for the logical and reasonable growth and development of
the City and was updated in 2015.
2. According to both the County’s Resource Management System and the Council of
Governments Population Projections the City of San Luis Obispo is projected to grow at a
rate of 1% per year.
3. The projected number of people in the City of San Luis Obispo over the next 5, 10, 15 & 20
years based on the San Luis Obispo Council of Government’s 2011 Update to Long Range
Socio-Economic Projections can be accommodated within the existing City limits and
Sphere of Influence.
4. The City’s current General Plan is based on the ability of the City to accommodate a
population of 56,750. Currently, the City’s population is approximately 45,119 people.
5. Development of the proposed Sphere of Influence areas in the City, under its land use
policies and procedures, would allow for areas to be served with City services including
water, sewer, and road infrastructure and fire and police.
6. The City implements growth management policies by phasing housing construction in large
annexation areas. These locations would include the Irish Hills, Margarita and Orcutt areas.
The City has adopted a phasing schedule that allows for a specific number of residential
units to be constructed over a period of time.
7. The City Community Development Department prepares an annual report regarding the
implementation and status of the General Plan. The report is organized into two key
sections: the administration of the General Plan including element updates and
amendments, and the implementation of the various elements and policies found in the
General Plan.
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3.2 LOCATION AND CHARACTERISTICS OF ANY DISADVANTAGED
UNINCORPORATED COMMUNITIES
Purpose: To identify any disadvantaged unincorporated communities.
LAFCO is responsible for determining the location and characteristics of any disadvantaged
unincorporated communities within or contiguous to the sphere of influence of a jurisdiction. If a
jurisdiction is reasonably capable of providing needed resources and basic infrastructure to
disadvantaged unincorporated communities within the sphere of influence or contiguous to the
sphere of influence, it is important that such findings of infrastructure and resource availability
occur when revisions to the SOI and annexations are proposed by the District or property
owners.
The community of San Luis Obispo has a variety of economic diversity that reside within the city
boundary and surrounding area. A Disadvantaged community is defined as a community with
an annual median household income that is less than 80 percent of the statewide annual
median household income. San Luis Obispo’s Sphere of Influence does not have any
disadvantage communities that have a present and probable need for public facilities and
services nor are the areas contiguous to the sphere of influence qualify as a disadvantage
community.
WRITTEN DETERMINATIONS
The following written determinations are based on the information contained in the above
section regarding disadvantaged unincorporated communities:
1. The City of San Luis Obispo’s Sphere of Influence does not have disadvantaged
unincorporated community located within or adjacent to its boundaries.
2. The State Water Board has tentatively identified the Higuera Street Apartments in need of
water service by the City under SB88.
3. Higuera Street Apartments is a failing private water system that is within the City’s Sphere of
Influence. The City may be able to assist the owner and tenants with an adequate supply of
water of good quality through an outside user agreement or annexation.
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3.3 PRESENT AND PLANNED CAPACITY OF PUBLIC FACILITIES
AND ADEQUACY OF PUBLIC SERVICES, INCLUDING
INFRASTRUCTURE NEEDS OR DEFICIENCIES
Purpose: To identify the infrastructure needs and deficiencies in terms of supply,
capacity, condition of facilities, and ability to provide services.
LAFCO is responsible for determining that a jurisdiction is reasonably capable of providing
needed resources and basic infrastructure to serve areas already within the City and in the
Sphere of Influence. It is important that such findings of infrastructure and resource availability
occur when revisions to the SOI and annexations are proposed by the City or property owners.
The MSR analyzes present and long-term infrastructure demands and resource capabilities of
the City of San Luis Obispo. LAFCO reviews and evaluates: 1) the resources and services that
are currently available and 2) the ability of the City to expand such resources and services in
line with increasing demands. The City‘s General Plan contemplates expansion for annexations
in the future (within the existing SOI), and Urban Reserve Line.
The most important infrastructure needs are the provision of water and wastewater services.
Beyond these basic services, police and fire protection, and circulation/road services are
considered high priority needs for future growth of the City.
This section evaluates the City’s resources and capabilities to provide services to existing and
future residents. The key topics addressed include water supply and demand, water pipeline
system, sewer system capacity and condition, fire and police protection, traffic and roads, as
well as, other services.
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WATER
The City updated its Urban Water Management Plan in 2010, Water and Wastewater
Management Element in 2010, and prepares an annual Water Resources Status Report. The
County updated its Urban Water Management Plan in 2010. These plans, and other
documents, are the basis for this section of the Municipal Service Review. The City and County
are currently updating their Water Master Plans. Updating the Urban Water Management Plan is
due every five years, in years ending in “5” and “0” for water suppliers having more than 3,000
connections or selling at least 3,000 acre-feet of water per year. A jurisdiction’s ability to
provide water to existing residents and the Sphere of Influence areas is a key consideration in
updating the SOI. Because a Sphere is the area that is envisioned for eventual annexation and
service by a jurisdiction, it is important that an adequate water supply be documented. Also to
be considered are a jurisdiction’s policies with regard to growth and the provision of water.
Water Supply
The City of San Luis Obispo’s Water supply comes from five primary sources: Salinas
Reservoir (Santa Margarita Lake) built in 1944, from Whale Rock Reservoir constructed in 1961,
some limited use of groundwater started in 1989, most recently San Luis Obispo are
participants in the Nacimiento W ater Project, and recycled water is available from the City’s
Water Reclamation Facility.
Salinas Reservoir (Santa Margarita Lake). The Salinas Dam was built in 1941 by the War
Department to supply water to Camp San Luis Obispo and, secondarily, to meet the water
needs of the City. The Salinas Reservoir (Santa Margarita Lake) captures water from a 112
square mile watershed and can currently store up to 23,843 acre-feet. In 1947, the Salinas
Dam and delivery system was transferred from the regular Army to the U.S. Army Corps of
Engineers. Since 1965, the San Luis Obispo County Flood Control and Water Conservation
District has operated this water supply for the City under a lease from the U.S. Army Corps
of Engineers. Water from the reservoir is pumped through the Cuesta Tunnel (a one mile
long tunnel through the mountains of the Cuesta Ridge) and then flows by gravity to the
City’s Water Treatment Plant on Stenner Creek Road.
The City has water rights to store up to 45,000 acre-feet. The original design of the dam
included a gate in the spillway to increase the storage capacity.
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Whale Rock Reservoir. The Whale Rock Reservoir is a 40,662 acre-foot reservoir created by
the construction an earthen dam on Old Creek near the town of Cayucos. The dam was
designed and constructed by the State Department of Water Resources in 1961 to provide
water to the City of San Luis Obispo, Cal Poly State University and California Men’s Colony.
The Whale Rock Dam captures water from a 20.3 square mile watershed and water is delivered
to the three agencies through 17.6 miles of 30-inch pipeline and two pumping stations. The City
of San Luis Obispo owns 55.05 percent of the water storage rights at the reservoir. The
remaining water storage rights are divided between the two State agencies with Cal Poly
owning 33.71 percent and the California Men’s Colony owning 11.24 percent.
The City’s safe annual yield for 2015, from the coordinated operation of Salinas and Whale
Rock Reservoirs is 6,940 acre feet. This includes reductions due to siltation at both reservoirs to
the year 2010.
Groundwater. The groundwater basin beneath the City is relatively small and recharges very
quickly following normal rainfall periods. The groundwater basin also lowers relatively quickly
during periods of below-average rainfall. Extensive use of groundwater sustained the City
through most of the drought of 1986-1991. Groundwater was not relied upon in the recent four-
year drought conditions. The City’s two largest producing wells, the Auto Parkway and Denny’s
(Calle Joaquin) wells, have been shut down do to elevated nitrate levels. Additionally, portions
of the groundwater basin are contaminated with a chemical solvent (tetrachloroethylene) which
would require treatment facilities to remove. Therefore, the City does not rely that much on its
groundwater source to supply the City’s needs.
The City operates one well for domestic potable water use that produces approximately 11 acre-
feet per month or approximately two-percent of the City’s total water use. The City also
maintains a non-potable well at the City’s Corporation Yard for use by contractors for
construction activities such as dust control and soil compaction. The City’s Laguna Lake Golf
Course also has two wells that meet a portion of the irrigation demand for the course. The
remainder of the irrigation demand for the golf course is met using recycled water from the
City’s Water Reclamation Facility.
Nacimiento Water Allocation. The Nacimiento Reservoir provides flood protection and is a
source of supply for groundwater recharge for the Salinas Valley. It is owned and operated by
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the Monterey County Water Resources Agency. Since 1959, the San Luis Obispo County Flood
Control and Water Conservation District has had an entitlement to 17,500 acre-feet per year
(AFY) of water from the reservoir for use in San Luis Obispo County.
Approximately 1,750 AFY have been designated for uses around the lake, leaving 15,750 AFY
for allocation to other areas within the County of San Luis Obispo. In 2007 the County
constructed a 45-mile pipeline project to deliver water from the Nacimiento Reservoir to five
participating agencies and cities. The City initially had a contractual entitlement to 3,380 AFY of
water from the project. In 2016, the participating parties agreed to allocate the remaining
entitlements with the City obtaining an additional 2,102 AFY for a total allocation of 5,482 AFY
of Nacimiento surface water.
Recycled Water. Recycled water is highly treated wastewater approved for reuse by the
California Department of Public Health for a variety of applications, including landscape
irrigation and construction dust control. Completed in 2006, the Water Reuse Project created
the first new source of water for the City since 1961 following construction of Whale Rock Dam.
The Project resulted in improvements at the City’s Water Reclamation Facility and an initial
eight miles of distribution pipeline. The City’s first delivery of recycled water took place in 2006.
The City estimates demand exists for approximately 1,000 acre feet of recycled water for
landscape irrigation and other approved uses.
With an average influent flow of approximately 3.5 million gallons per day (2015), the City’s
Water Reclamation Facility produces over 5,100 acre-feet of disinfected tertiary-treated effluent
per year. A minimum of 1,807 acre-feet is discharged to San Luis Obispo Creek annually to
provide satisfactory habitat and flow volume for fish species (steelhead trout) within the San
Luis Obispo Creek environment. The balance makes up the City’s available recycled water
resource
The sources of water described above are all presently supplied by the City of San Luis Obispo
and delivered to their customers. The table below shows the City’s current water supply
situation. The chart shows the water supply by percentage.
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Groundwater
<1%
Recycled
1%
Salinas
24%
Whale Rock
29%
Nacimiento
45%
Water Supply
Table 3-17 – San Luis Obispo Current Water Supply
Source Amount
(acre feet)
Groundwater 89
Recycled Water 185
Salinas Res Water 2,851
Whale Rock Water 3,502
Nacimiento Water 5,482
Total 12,109
In 2010, the City adopted revisions to the City’s Water and Wastewater Management Element.
Relative to water resources, the new policies establish that the City will account for water
supplies necessary to meet three specific community needs.
1. Primary Water Supply – The primary water supply is the amount needed to meet the
General Plan build-out of the City. The quantity of water needed for the City’s
primary water supply needs is calculated using a ten-year average of actual per-
capita water use and the City’s build-out population as identified in the City’s adopted
Land Use Element of the General Plan.
2. Reliability Reserve – The reliability reserve provides a buffer for future unforeseen or
unpredictable long-term impacts to the City’s available water resources such as loss
Figure 3-6
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of yield from an existing water supply source and impacts due to climate change.
The amount of the reserve is established as the current City population times twenty
percent of the ten-year average of actual per-capita water use.
3. Secondary Water Supply – The secondary water supply is the amount needed to
meet peak water demand periods or short-term loss of City water supply sources.
The City’s secondary water supply is identified as any water supply resources above
those needed to meet primary water supply and reliability reserve.
Table 3-18 - Water Available for Development
Year
Population
Present Water Demand
@ 114 gpcd
Safe Annual Yield
Water Available for Allocation
2015 45,802 4,990 AF 10,005 AF 1,174 AF
Source: City of San Luis Obispo, Annual Water Resources Status Report 2015
The City can meet the water supplies needed for full build-out of the General Plan, which
includes the Orcutt Area annexation (recent addition), as well as providing water for the
reliability reserve and secondary water supply.
Table 3-19 2012 Water Supply Accounting
Total Water Supplies Primary Water Supply Reliability Reserve Secondary Water Supply
10,005 AF 7,330 AF 1,174 AF 1,501 AF
Source: City of San Luis Obispo, 2015 Water Resources Status Report
Supplemental Water Options. The City prepares an annual Water Resources Status Report
to inform the Council about the water situation. This report was released in November 2013.
The City is currently reviewing the following options for supplemental water: The Water Reuse
Project, additional water from the Nacimiento Pipeline Project, additional water conservation
measures, additional groundwater resources, a possible desalination facility, and the Salinas
Reservoir expansion project. The City also continues to implement an aggressive water
conservation program that is very effective. The following table lists the supplemental water
supply projects:
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Table 3-20: Potential Supplemental Water Sources
Project Current Status Potential
Yield (AFY)
Water Reuse 160 af for 2012, additional 10 af each year 1,200
Additional Conservation Measures In the process of being implemented 340
Salinas Reservoir Expansion Project City is not actively pursuing this option 1,650
Source: City of San Luis Obispo, 2012 Water Resources Status Report
The City uses an average per capita water use rate, moderated by the use of the ten-year
running average to normalize weather events. In 2015, the ten-year average is 114 gpcd. This
water use rate is used with the City’s build-out population and current population to project the
primary water supply and reliability reserve. The City’s remaining water resources make up
secondary water supply.
The table below shows water production by the City of San Luis Obispo from 2001 to 2015. The
Water and Wastewater Management Element projects the source of water over the next 20
years. It is estimated that by 2030 the current water supply will continue to supply the same safe
yields of water.
Table 3-21 San Luis Obispo Water Use
Year Population Total Water Use Per Capita Water Use
2001 44,347 5,886 118
2002 44,482 6,032 121
2003 44,357 5,968 120
2004 44,298 6,239 126
2005 44,687 6,098 122
2006 44,559 5,999 120
2007 44,433 6,493 130
2008 44,579 6,359 127
2009 44,829 6,134 122
2010 44,948 5,489 109
2011 45,418 5,285 104
2012 45,308 5,541 109
2013 45,541 5,338 105
2014 45,473 5,524 109
2015 45,802 4,990 97
Source: City of San Luis Obispo General Plan Water and Wastewater Management Element, 2010, and the City of
San Luis Obispo Water Department 2016. Units of Measure; Acre Feet per Year
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The following Policies were taken from the General Plan Water and Wastewater Management
Element regarding water resources:
3.2.1 Basis for Planning The City will plan for future development through the Land Use
Element taking into consideration available water resources from the Salinas, Whale Rock, and
Nacimiento Reservoirs and recycled water.
3.2.3 Groundwater Due to limitations for the use of the groundwater resources, the City will
continue to use groundwater for domestic purposes when available, but will not consider this
source of supply as part of its water resource availability.
3.3.1 An update on the water resource availability will be presente d to the City Council as part of
an annual Water Resources Status Report.
3.3.2 The City will update the safe annual yield computer model for Salinas and Whale Rock
Reservoirs following severe drought periods to determine if any changes are necessary to the
safe annual yield amount.
3.3.3 The City will monitor ongoing research on the potential for long-term impacts associated
with climate change to water supply resources.
5.2.3 Reliability Reserve The City will establish a reliability reserve that is 20-percent of the
water use rate established in Policy A 5.2.1 multiplied by the current population. The water supply
designated as the reliability reserve may not be used to serve future development.
5.2.5 Paying for Water for New Development New development shall pay its proportionate or
“fair share” for water supplies, expanded treatment and distribution system capacity and
upgrades.
County Biennial Resource Summary Report – 2010-2012
The County Department of Planning and Building prepares the Biennial Resources Summary
Report that summarizes the resource situation (including water) of San Luis Obispo and other
incorporated cities of the County. The Report evaluates the capability of incorporated cities and
unincorporated communities to provide public services. The Biennial Report uses a Level of
Severity rating system for water supply and water delivery systems. The rating system for water
includes evaluating the available supply and the production and distribution system for a
particular jurisdiction. The following rating system is used:
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The following is an excerpt from the 2010-2012 Biennial Resource Summary Report for City of
San Luis Obispo:
Water Demand
The City completes water demand projections in order to know how much water might be
needed to serve residents, businesses and other uses as growth and development occur in the
City. The City’s Water and Wastewater Management Element provides information and
establishes policies for meeting the current water demand and for projecting future water
demand. This document is a valuable water resource planning tool and was updated in 2010.
In 2015, the City reported annual water use of 4,990 acre-feet. The City has adopted the
following key policies related to projecting water demand:
The RMS utilizes three alert levels called levels of severity (LOS) to identify differing
levels of resource deficiencies.
• Level I is the first alert level. Level I occurs when sufficient lead time exists either to
expand the capacity of the resource, or to decrease the rate at which the resource
is being depleted.
• Level II identifies the crucial point at which some moderation of the rate of resource
use must occur to prevent exceeding the resource capacity.
• Finally, Level III occurs when the demand for the resource equals or exceeds its
supply. It is the most critical level of concern. The County should take actions to
address resource deficiencies before Level III is reached.
2009 RMS
The City of San Luis Obispo has a diverse water supply. Water sources include Santa
Margarita Lake, Whale Rock reservoir, a water reuse project, a small amount of groundwater
and Lake Nacimiento water. These sources will be adequate for full development under the
City’s general plan.
Total water supply= 9,950 acre feet per year (AFY)
Table 3-22 San Luis Obispo Water Use
Estimates, AFY
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
5,911 6,273 5,923 5,972 6,439 6,418 6295 5,833 5,909 6,000
Source: 2010-2012 RMS
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Figure 3-7: City of San Luis Obispo – Water Demand Policies
Water Conservation. The City has one of the most effective water conservation program in the
County. In 1988, the year before drought, conservation measures were implemented by the
City, the average number of gallons used per person was 175. Because of the experience
during the drought of 1986 to 1991, the City developed a Water Shortage Contingency Plan
(Plan) to deal with immediate, short-term water shortages. The Plan is designed to require
mandatory actions when there is a projected three year supply of water remaining from
available water resources. The City’s aggressive approach to water conservation during
drought years produces significant results in a relatively short period of time. The City can
implement this water conservation program in drought situations by phasing in water-saving
measures.
POLICIES
3.2.1 Basis of Projections. The City will plan for future development through the
Land Use Element taking into consideration available water resources from
the Salinas, Whale Rock, and Nacimiento Reservoirs and recycled water.
5.2.1 Water use Rate. The City will calculate the per capita water use rate based
on a ten-year running average of the City’s actual per capita water use.
4.2.2 Accounting for Siltation. The City will account for estimated safe annual
yield losses at Salinas and Whale Rock Reservoirs for the next 50 years
(2060) by deducting 500 acre feet of available water supplies to account for
these future losses. The siltation rate will be updated as information becomes
available from subsequent siltation analyses.
5.2.2 Primary Water Supply. The City shall establish the amount of water needed
for General Plan build-out using the water use rate established in Policy A
5.2.1 multiplied by the projected General Plan build-out population identified in
the Land Use Element.
5.2.3 Reliability Reserve. The City will establish a reliability reserve that is 20-
percent of the water use rate established in Policy A 5.2.1 multiplied by the
current population. The water supply designated as the reliability reserve may
not be used to serve future development.
5.2.4 Secondary Water Supply. After accounting for primary water supply and a
reliability reserve, any remaining water supplies shall be utilized for meeting
short-term water supply shortages or peak water demands.
7.2.2 Accounting for Recycled Water. The City will add total recycled water usage
from the prior year to the City’s water resource availability on an annual basis.
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The City also recognizes the importance of long-term water efficiency by supporting programs
that will enhance water supply reliability and comply with any current and/or future state
mandates in water use reductions. In 2009, Senate Bill X7-7 was passed requiring water
agencies to reduce per capita water use by 20 percent by the year 2020. There are three
options (with a fourth being developed) on how to determine the year 2020 target for the City.
Using the methodology which best corresponds to the City’s situation and recognizes the City’s
past investment in conservation, the City’s target per capita water use would be 117 gpcd which
is an additional five percent reduction from 2010 per capita water use. However, the city
reduced their per capita down even further in 2011 to 104 gpcd and in 2012 their per capita use
was 109 gpcd, and in 2015 the per capita is 97 gpcd.
The City’s water conservation practices are based on research and experience and include:
Water conservation pricing and rate structures
Technical assistance for water customers
Incentives for indoor and outdoor water saving technologies
Public information and outreach
Water audits
Recent Drought (2011-2015). The statewide drought has continued and is now well into the
fourth year. Governor Brown declared a drought emergency on January 17, 2014 and, as part of
the response, directed the State Water Resources Control Board (State Water Board) to draft
water conservation regulations to respond to the emergency. The State Water Board adopted
regulations prohibiting water waste in July 2014, and issued directives to reduce water use
statewide. In response to the continuing drought conditions, the State Water Board extended
the 2014 emergency regulations and added new measures on March 17, 2015. On April 1,
2015, the Governor issued Executive Order B-29-15 mandating increased enforcement against
water waste and declared a statewide water use reduction goal of 25 percent. This action was
followed by the State Water Board adopting regulations that require specific water purveyors to
reduce water use in a range of 8 to 36 percent compared to their 2013 water usage. The
amount of the mandated reduction is dependent on the water purveyor’s per capita use in 2013.
The City’s required reduction is 12 percent.
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The impacts of the 1987-1991 drought enculturated a strong water conservation ethic in San
Luis Obispo along with an urgency to develop new water supply sources. The current statewide
drought brought about unprecedented regulatory action from the State of California which
resulted in a mandatory average 12 percent reduction in water use from June 2015 to February
2016, when compared with 2013 water use numbers. To achieve this mandate, the City Council
adopted a drought response strategy in June 2015. This strategy includes:
1. Adoption of a resolution declaring a drought emergency;
2. Adoption of a resolution to defer new landscape installation or the use of modified
landscape plans during the drought emergency;
3. Introduction of an ordinance amending Chapter 13.07 of the City’s Municipal Code to
include two-day-a-week and time-of-day restrictions for outdoor watering;
4. Approval of an incentive program for high efficiency toilets and washing machines; and
5. Adoption of a resolution establishing a permit fee for the use of the Corporation Yard
groundwater well. This strategy relies on active enforcement of water waste prohibitions,
with a core focus on providing information and resources to the public.
Water Supply and Demand
The City’s existing water supply is found adequate to serve the anticipated build out of its
General Plan. The Supply/Safe Yield available to the City is currently estimated at 11,080 acre-
feet per year. The demand in 2015 was estimated to be 4,990 acre-feet per year. The City
anticipated future water demand to be 9,096 acre-feet per year (at 114 gpcd consumption rate)
at build out under the existing General Plan.
Water use in the City includes single-family, multi-family, commercial (includes institutional and
industrial), and irrigation customers. No agricultural uses are supplied by City water and the
City does not sell water to other agencies. The historical and projected number of connections
and deliveries to the City’s customers are presented in the table below.
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Table 3-23 Past, Current, and Projected Water Deliveries
Water Use Sectors
Single
Family
Multi-
Family
Commercial, Industrial, &
Institutional
Irrigation Total
2005 # of metered accounts 10,582 1,589 1,895 474 14,540
Deliveries ac-ft/yr 2,483 1,182 1,668 551 5,884
2010 # of metered accounts 10,680 1,760 1,695 524 14,812
Deliveries ac-ft/yr 2,193 1,093 1,408 524 5,218
2015 # of metered accounts 10,940 1,800 1,730 540 15,010
Deliveries ac-ft/yr 2,391 1,192 1,535 571 5,689
2020 # of metered accounts 11,200 1,840 1,770 550 15,360
Deliveries ac-ft/yr 2,455 1,224 1,577 587 5,843
2025 # of metered accounts 11,500 1,890 1,810 560 15,760
Deliveries ac-ft/yr 2,503 1,247 1,607 599 5,956
2030 # of metered accounts 11,780 1,940 1,600 570 15,890
Deliveries ac-ft/yr 2,567 1,280 1,648 614 6,109
2035 # of metered accounts 12,070 1,990 1,640 590 16,290
Deliveries ac-ft/yr 2,627 1,309 1,687 628 6,251
Notes: Source: City of San Luis Obispo Utilities Department, 2011
1. Department of Water Resources, Tables 3 through 7
2. The City has no unmetered accounts
Water Treatment
The City operates and maintains water treatment facilities that treat the water from the sources
described above. The City’s Treatment Plant is located on Stenner Creek Road northwest of
the Cal Poly campus. The Salinas Reservoir is located nine miles southeast of the community of
Santa Margarita with Whale Rock Reservoir located about ½ mile east of Cayucos. A pipeline
system connects these facilities. The following description of those treatment facilities comes
from the City’s website:
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Water Distribution and Storage System
The City operates and maintains an extensive water transmission and distribution system. It
consists of wells, storage tanks, pump stations, pressure relief valves and zone valves. The City
is divided into 18 different pressure zones to ensure adequate water pressure throughout the
City.
Water Distribution: The water distribution system delivers potable water to approximately
14,500 metered customers. The goals of the program are to provide uninterrupted water flow at
The purpose of a water treatment plant is to produce safe and pleasant drinking water, free of
disease-causing organisms and toxic substances. The City of San Luis Obispo has a state -of-
the-art treatment process that includes ozone and ensures a high level of protection to our
customers.
Each year the City Utilities Department mails a Water Quality Report to all of its customers.
San Luis Obispo water continues to meet or exceed all State and Federal Safe Drinking Water
standards.
City water comes from four sources: Salinas Reservoir (Santa Margarita Lake), Whale Rock
Reservoir, Nacimiento Reservoir and ground water. Nacimiento and Salinas Reservoirs are
our primary source of water. Whale Rock is our backup supply. Groundwater supplies a very
small percentage (less than 2%) of the City’s demand for water.
The source of the City’s water is important because it sets the required level of treatment.
Many communities rely solely on groundwater to meet their water needs. Groundwater
typically requires only minimal treatment (such as the addition of chlorine) to meet state and
federal standards, because water is filtered as it percolates through soil. This level of
treatment results in very low operating and maintenance costs.
In contrast, water from lakes or rivers (surface water) such as the Nacimiento, Salinas and
Whale Rock Reservoirs, requires a significantly greater level of treatment to meet state and
federal standards. The regulations require multiple treatment processes to provide multiple
levels of protection from potential contamination sources. In addition, the City’s water supply
reservoirs are patrolled on a daily basis to ensure that potential water quality problems at the
source are minimized and eliminated. Increased treatment results in higher operating and
maintenance costs.
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adequate pressures, to meet all fire and domestic flow requirements, and to minimize system
water loss due to leakage. In order to accomplish these goals, the water distribution program
has seven major work objectives. They are as follows:
Pump station and tank maintenance
Water main maintenance and repair
Water service installation and service renewal
Fire hydrant installation
Fire hydrant maintenance
Cross connection control
Underground Service Alert (USA) markouts
Because of the geographic setting of San Luis Obispo, the water distribution system is a very
complex structure of pipes, pumps, storage tanks, and pressure reducing valves. The water
distribution program delivers potable water from the water treatment plant and wells to
customers and fire hydrants via two storage reservoirs, eight pump stations, twelve storage
facilities, and approximately 185 miles of water mains. It is unlikely this basic distribution pattern
will change, since the water treatment plant will continue to be the principal source of treated
water for the City.
Growth within the City has placed increased demands on the water distribution system.
Additionally, many pipes throughout the City are over 100 years old, and do not provide
adequate capacity to meet current fire-flow requirements. Even without growth or fire protection
requirements, aging pipes must be replaced to avoid major service disruptions and leaks due to
deterioration.
There are approximately 185 miles of water distribution pipelines throughout the City. The
engineering estimate for the life expectancy of these facilities is 50 years. Complete
replacement within the term of life expectancy would require that the City replace an average of
2% of the system infrastructure each year.
Pressure Zones. The water delivered from the treatment plant is split into two main distribution
networks. About 52% flows into the City by gravity and the other 48% is pumped to a storage
reservoir at a higher elevation and then flows into the various service areas by gravity and
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through pressure reducing valves (PRVs). The most apparent strain is in the pumped delivery
system. Since electrical power for pumping water is a major expense, a goal is to develop a
system that minimizes pumping. The goal of the water supply system is to deliver water at
pressures between 40 pounds per square inch and 80 pounds per square inch at the customer’s
meter without using a pressure-reducing valve on the pipe connecting the water main to the
meter. This pressure range will meet the needs of most irrigation sprinklers and other uses, and
provide adequate pressure for fire sprinkler systems. Pressure zones are established in the
distribution system to maintain these pressure ranges. The City currently has 18 pressure zones
divided between the gravity and pumped delivery systems.
Mains and Services. Once raw water has been converted to drinking water, it must be
delivered to the customer with its quality intact. Additionally, it must be at a pressure that
assures adequate flow from the tap. The effort put into constructing a wide-ranging distribution
system is enormous in terms of cost, work, and disruption to the community. The elements of a
distribution system (pipes, pumping stations, valves, storage structures, and so forth) are
expected to operate over a long time frame, as they are all expensive to replace. In particular,
the piping network (placed largely below ground) is expected to have a very long service life.
Replacement and rehabilitation work is very costly and difficult. Presumably research and
development will continue in this area and new products, techniques, and new concepts in
engineering practice will help keep the network flowing smoothly.
Storage Facilities. Water storage facilities are necessary to provide water during peak demand
periods and emergency situations such as fires. The City has twelve water storage facilities,
nine of which are steel storage tanks ranging in size from .04 to 4 million gallons, three concrete
facilities with a capacity of .03 to 7.5 million gallons. The combined storage capacity is 26.22
million gallons.
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Figure 3-8 Pressure Zones
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Capital Improvement Plan-Water System. The City’s Capital Improvement Plan (CIP)
comprehensively schedules and finances all capital projects and equipment purchases over
$15,000. The City’s Capital Improvement Plan contains detailed project-by-project information
and provides for aligning the goals of the City with project implementation.
The City systematically plans schedules and finances capital projects to ensure cost-
effectiveness and conformance with established policies and longer-term plans. The City’s
approach considers the current fiscal situation and makes adjustments based on the City’s
ability to pay for improvements. Two years ago, the City characterized its fiscal outlook as the
best in many years largely due to the passage of a ½-cent City sales tax in 2006. Unfortunately,
this is not the case today. The City is facing another very tough budget season. In order to
balance the budget, the City made reductions in the CIP by over 40%. Because of this, the CIP
focused on maintaining, repairing or replacing the facilities, infrastructure and equipment
already in place based on the goal-setting process.
Planned water system improvements are included in the City’s Capital Improvements Program
that was adopted by the City Council July 1, 2009. The program is prepared in two-year
increments and is updated annually. The Water System Master Plan has prioritized the projects
that are most needed to improve the system. This plan was adopted along with the Airport and
Margarita Specific Plans and focus on the backbone water distribution facilities in order to fully
develop these properties.
Projects Budgeted 2015/2016
Water Distribution System Improvements, budgeted $1,487,300. -- total project
cost $3,508,700
Water Storage Reservoir Maintenance and Tank Replacement design, budgeted
$60,000
Water Storage Reservoir Maintenance and Tank Replacement, budgeted
$181,000-- total project cost $567,000
Distribution Pump Station Upgrade, budgeted $50,000
Air Compressor Replacements at Water Treatment Plant, budgeted $100,000. --
total project cost $300,000
Water Division Asset Management Plan Development, budgeted $100,000
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2014/2015
Water Distribution System Improvements, budgeted $1,487,300. -- total project
cost $3,508,700
Water Storage Reservoir Maintenance and Tank Replacement, budgeted
$181,000-- total project cost $567,000
Air Compressor Replacements at Water Treatment Plant, budgeted $100,000. --
total project cost $300,000
Utilities Generator Replacement, budgeted $55,000
Other Water Providers
In addition to the City of San Luis Obispo, twenty-two other private water purveyors provide
water services to area residents. Some providers are located within the City limits. The primary
source for all of these water providers is groundwater pumped water from Groundwater Basin.
These include:
Madonna Inn Water Company
Laureate Water Company
Elks Lodge #322
Tiger Water Supply
Bear Valley Water Company
Afuera De Chorro Water Company
Sunset Drive-In Snack Bar
Parsons Water Supply
Toyota San Luis Obispo
Tank Farm Business Park
Hidden Hills Mobilodge
SLO County Farm Bureau
Whitson Industrial Park
Ernie Ball Inc
Horizon Lane Water Supply
Higuera Apartments
CB&I Construction Inc.
SLO Partners
Fiero Lane Water Company
R. Howard Strabaugh Inc.
Golden State Water Company - Edna
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Figure 3-9 Other Water Providers
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WASTEWATER COLLECTION & TREATMENT SYSTEM
Facility Description. The City of San Luis Obispo operates the wastewater
treatment/reclamation facility, which has 13,500 hook-ups within the City limits. The City’s
wastewater collection system consists of one hundred fifty miles of sewer pipe, ranging in size
from 6 to 30 inches in diameter (at an average depth of six feet), over 2,500 manholes, and
eight sewage pump stations. This system conveys approximately 4.5 million gallons of
wastewater per day to the City’s Water Reclamation Facility, which has a capacity of 5.1 milli on
gallons per day.
To ensure system reliability, the collection system is regularly inspected, hydro-cleaned, and
repaired. Work is performed in response to work orders (updated daily) and area maintenance
of a particular drainage basin. The goal is to completely clean the system every three years.
Maintenance is performed bi-monthly on the eight sewage pump stations. Trucks known as
Wastewater Collection Combination Units clean City sewers using water pressure and are also
capable of vacuuming debris from the sewer system.
The City of San Luis Obispo has its own pipeline inspection unit. This unit allows collection
system problems to be quickly located and repaired using a closed-circuit video camera system.
If an overflow occurs during normal working hours, customers are urged to contact the
wastewater collection department. After hours emergencies should be reported to the San Luis
Obispo Police Department, who will contact on-call utility staff.
The City of San Luis Obispo’s Pretreatment Program was established in 1983 to provide
protection to the Water Reclamation Facility (WRF) and the sewer collection system by
controlling the introduction of non-domestic pollutants to the WRF and system. This program
uses the Federal General Pretreatment Regulations (40 CFR 403) to enforce general discharge
prohibitions and categorical standards. The City was required by the state to establish the
program to protect the WRF from non-domestic wastes that may upset or inhibit the plant’s
processes, contaminate the sludge or pass through treatment and end up in San Luis Creek,
the receiving water for the facility’s effluent discharge. An upset or inhibition in the facility can
mean reduced treatment of wastes, contaminated sludge that can result in expensive handling
and disposal costs, and pass-through which may result in a violation of the facility’s discharge
requirements and degradation of the creek’s environment.
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The City of San Luis Obispo’s Water Reclamation Facility is responsible for treating all of the
wastewater (sewage) within the City, Cal Poly and the County airport. The facility treats 4.5
million gallons of wastewater daily, twenty-four hours a day, 365 days a year. Staffing of
operators, laboratory analysts and maintenance technicians ensure the WRF is operated and
maintained in the most efficient manner possible and complies with federal, state, and local
discharge requirements.
The most recent upgrade to the WRF was completed to improve the quality of water discharged
into San Luis Obispo Creek. The WRF has very stringent discharge requirements and now
produces a high-quality effluent that surpasses drinking water standards for many constituents.
Plans to use a portion of this effluent to irrigate parks, median strips, landscape and other
appropriate uses are being developed under the City’s Water Reuse Program.
Capacity. The treatment system currently has the capacity to process 5.1 million gallons per
day of wastewater on an average dry day. The system is operating at 88% of capacity with an
estimated 4.5 million gallons per day currently being processed at the treatment facility. The
plant has the capacity to serve a population of up to 50,000. The City is studying the options for
expansion of the system to provide adequate capacity as the City continues to grow. Serving
future developments that are proposed would be studied as part of the environmental review
(CEQA) process. Expanding the capacity would likely be required if the City’s processing
capability was found to be inadequate.
Wastewater Collection. The existing wastewater collection system within the City is made of a
network of roughly 66 miles of pipeline, and 12 wastewater-pumping stations.
Projects Budgeted 2015/2016
Wastewater Collection System, replace aging and inadequate sewer
infrastructure, ensure uninterrupted wastewater collection, and reduce required
maintenance. , budgeted $1,470,000. -- total project cost $5,725,000
Margarita Sewer Lift Station Replacement, budgeted $500,000
Foothill Sewer Lift Station Replacement, budgeted $100,000
Wastewater Collections Sewer Camera Cargo Van, budgeted $160,600
Water Reclamation Facility Major Maintenance, budgeted $505,000. -- total
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project cost $2,080,000
2014/2015
Wastewater Collection System, replace aging and inadequate sewer
infrastructure, ensure uninterrupted wastewater collection, and reduce required
maintenance. , budgeted $800,000. -- total project cost $5,725,000
Madonna Sewer Lift Station Replacement, budgeted $500,000
Margarita Sewer Lift Station Replacement design, budgeted $100,000
Wastewater Collections Portable Generators, budgeted $309,300
Water Reclamation Facility Major Maintenance, budgeted $320,000. -- total
project cost $2,080,000
Water Reclamation Facility Upgrade, budgeted $56,300,000
Water Reclamation Facility Upgrade CM, budgeted $4,500,000
Water and Sewer Rates Comparison
The following tables compare the water and sewer rates of the seven cities. The sample
monthly bill was calculated using 10 units of water as a base. This information was gathered
from website research from each City.
Table 3-24 – Single-Family Water Rates
Rate/Fee
Pismo
Beach
Arroyo
Grande
Grover
Beach
Morro
Bay
Paso
Robles
Atascadero
San Luis
Obispo
Monthly Service Meter
Charge
$32.57
$7.19
$10.06
$24.18
$0.00
$18.00
$8.00
Water (per 100 cubic
feet)
$2.72
$3.42
$3.34
$7.00
$4.40
$2.10
$7.90
Other Charges
$0.00
$20.33
(Lopez
Treatment)
$0.00
$0.00
$0.00
$2.50
(Nacimiento)
$9.88
(over 8 units)
+ 5% tax
Sample Monthly Bill
(10 units of water)
$59.77
$61.72
$76.86
$71.18
$44.00
$41.50
$94.66
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Table 3-25 – Single-Family Sewer Rates
Rate/Fee
Pismo
Beach
Arroyo
Grande
Grover
Beach
Morro
Bay
Paso
Robles
Atascadero
San Luis
Obispo
Flat Monthly Rate
$63.53
$2.40
$9.92
$62.50
$0
$20.18
$8.32
Sewer (per 100 cubic
feet water)
$0.00
$0.67
$0.00
$0.00
$7.80
$0.00
$9.17
Other Charges
$0.00
$14.86
$14.86
$0.00
$0.00
$0.00
$0.00
Sample monthly bill
(10 units of water)
$63.53
$23.96
$24.78
$62.50
$78.00
$20.18
$100.02
Figures 3-10 and 3-11 show a rate comparison for all seven cities in the County. Overall, San
Luis Obispo’s water and sewer rates for residential customers are one of the highest among
other county cities. The charts are based upon a sample billing using “10 units” of water as a
basis.
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59.77 61.72
76.86
71.18
44.00 41.50
94.66
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
Pismo Beach Arroyo
Grande
Grover Beach Morro Bay Paso Robles Atascadero San Luis
ObispoDollars County Cities
Bill Comparision - Monthly Residential Water - 10 Units
1 unit = 100 Cubic Feet of Water
63.53
23.96 24.78
62.50
78.00
20.18
100.02
$0
$20
$40
$60
$80
$100
$120
Pismo Beach Arroyo
Grande
Grover Beach Morro Bay Paso Robles Atascadero San Luis
ObispoDollars County Cities
Bill Comparision - Monthly Residential Sewer - 10 units
1 unit = 100 Cubic Feet of Water
Figure 3-10
Figure 3-11
123.30
85.68 101.64
133.68 122.00
61.68
194.68
$0
$50
$100
$150
$200
$250
Pismo
Beach
Arroyo
Grande
Grover
Beach
Morro Bay Paso Robles Atascadero San Luis
ObispoDollars County Cities
Total Comparision - Monthly Residential Water & Sewer - 10 units
1 unit = 100 Cubic Feet of Water
Figure 3-12
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TRANSPORTATION - STREETS – ROADS
City of San Luis Obispo General Plan, Circulation Element 2015
The Circulation Element of the City’s General Plan describes how the City will manage
transportation issues as the City grows and develops. The Circulation Element was updated in
2015 along with other elements in the General Plan. The Element contains goals, policies and
implementation standards and programs to guide the future development of the City’s circulation
system.
The City prepares an annual report regarding the implementation of the General Plan, including
the Circulation Element. This report documents the progress made toward achieving the goals
of the Circulation Element and is broken down into the following categories:
Transportation Network Improvements,
Transportation Planning Improvements,
Neighborhood Traffic Management, and
Parking Management.
In 2009, the City completed a number of important projects regarding the transportation system
including:
Table 3-26 – Transportation Network Improvements
Transportation Network Improvements
Vehicular
Widening of Orcutt Road was completed from Broad Street to Laurel Lane including signalization of the
Laurel Lane intersection, integration of a bicycle signal at that location and additional lanes to
accommodate future growth in the Orcutt Area Specific Plan.
Sacramento Drive was extended to Orcutt Road providing an additional access point in and out of the
Sacramento Drive area.
The City worked with SLO County Airports, Caltrans and area developers to realign and signalize the
intersection of Aero Drive and Broad Street to improve safety and operations along HWY 227.
The Council directed staff to perform final analysis and return to Council in 2010 with recommendations
for relinquishing HWY 227 from State control to City jurisdiction pursuant to Circulation Element program
recommendations.
The City worked with Caltrans to construct the South Street “road diet” from Broad Street to Higuera to
address public safety concerns and speed of traffic along HWY 227.
The realignment and safety improvements were completed to the intersection of Buena
Vista/Garfield/Monterey and aesthetic improvements were installed at this gateway to the City.
The signal at the intersection of Santa Rosa/Marsh Street was reconstructed to improve operations and
safety.
The signal at the intersection of Marsh/Osos was reconstructed improve operations and safety.
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The City completed its first bi-annual traffic operations report addressing citywide traffic congestion.
Construction began on the Safe Route to School improvements at Hawthorne, Sinsheimer, & San Luis
Obispo High schools.
The City collaborated with Caltrans on the construction of pedestrian and bicycle access improvements at
the Marsh Street underpass of Highway 101.
Bicycle
Phase 4 of the Railroad Safety Trail (Foothill to Taft) was completed and opened to the public.
The City completed construction on the Bill Roalman Bike Blvd on Morro Street.
As part of a pilot program to reduce bicycle collisions, the City installed shared lane markings on upper
Monterey Street to notify motorists and bicyclists the minimum distance bicyclists should ride from on-
street parked cars to prevent “dooring”.
Design began on the Madonna Inn Class I bike path that will connect Marsh Street to Madonna Road
across the Madonna Inn property.
The City collaborated with the Rotary Club of San Luis Obispo to develop a fundraising effort for the
Railroad Safety Trail.
Design of the Bob Jones City to Sea Trail bridge connection at Prado Road was completed. Construction
to commence in 2010. Continued to work with Caltrans for the final design and location of the Los Osos
valley Road bridge connection for the Bob Jones trail.
In September, the City’s Police and Parks and Recreation Departments held its annual Bicycle Rodeo
instructing City youths on safe bicycling techniques and proper riding habits.
The City’s supply of short term bicycle parking continued to expand during the fifth year of the City’s
“Racks with Plaques” bicycle rack donation program.
In May 2009 the City participated in Bike to Work Month activities encouraging the public to use
alternative transportation.
Bike valet parking service continued for its fourth year at the weekly Thursday night Farmer’s Market. By
the end of 2008, almost 11,000 bicyclists made use of the free weekly service.
The City collaborated with the San Luis Obispo Bicycle Coalition and other community volunteers to offer
bicycle safety education training.
Transit
Starting in September 2008, SLO Transit extended the evening service trips running Monday thru Friday,
funded largely by a State Transportation Assistance (STA) grant of $205,000.
SLO Transit carried 1,007,807 riders during calendar year 2009 and averaged 29.32 passengers per
hour.
Carried 49,544 evening passengers on routes 2, 3, 4 and 6a & 6b in Fiscal year 2009 and averaged
19.87 passengers per hour.
Continued to monitor the Free Fare Subsidy Program for Cal Poly faculty and students.
Secured $1,023,660 in American Recovery and Reinvestment Act (ARRA) funding for Transit related
Capital projects.
Continued to utilize the new color scheme and branding utilizing City of San Luis Obispo colors for all new
transit vehicles starting with the October 2007 bus deliveries.
Purchased a new double deck bus to increase capacity for high demand routes at a lower operation cost
than standard 40’ buses.
Continued basic service levels for 2009 even with significant state funding reductions and takeaways to
balance the State’s general fund obligations.
Source: City of San Luis Obispo Annual Report of the General Plan 2009
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Table 3-27 – Transportation Planning Improvements
Transportation Planning Improvements
Vehicular
The City published its eighth annual Traffic Safety Report identifying high crash locations within the City
and recommending mitigation measures to reduce the crash rates. This was the first report that fully
integrated Public Works and Police activities. This report also marked the lowest number of annual
collisions reported since Public Works began tracking in 1999, 30% down from 2002 when the Traffic
Safety Report project first began.
The City completed its first Traffic Operations Program report intended to address traffic congestion
issues using the same methodology as the City’s Annual Traffic Safety Program.
The City received the prestigious Institute of Transportation Engineers “Public Agency of the Year” award
for it Annual Traffic Safety and Annual Operation programs.
The City completed its first bi-annual report highlighting the City’s efforts to improve bicycling during the
past two years.
The City began development on a new Travel Demand Model in preparation of a Circulation Element
update.
A Caltrans Project Report and Environmental Determination for the Los Osos Valley Road interchange
improvements were submitted for public circulation and approval.
Secured approximately $1.2 million in American Recovery and Reinvestment Act (ARRA) funding for
rehabilitation and improvements on upper Monterey Street.
Pedestrian
The City conducted its fourth annual Halloween Traffic Safety campaign passing out over 4000 reflective
Halloween bags to elementary school students in the City.
Implementing a Safe Routes to School grant, the City completed its design for a bicycle and pedestrian
path and bridge over Prefumo Creek which will provide non-vehicular access between the Oceanaire and
Laguna neighborhoods.
Source: City of San Luis Obispo Annual Report of the General Plan 2009
Table 3-28 – Parking Management
Parking Management
In 2009, the following efforts implemented parking management policies in the Circulation Element:
Parking Services researched car sharing programs and began work with local providers on a pilot project
to locate two car share vehicles in the City Hall parking lot.
Parking Services continued its financial assistance to the Downtown Access Pass program (formally the
Gold Pass)
The City established a policy for notifying neighboring businesses and property owners of on-street
parking spaces proposed for removal or conversion to other uses and establishing a process for providing
input before a decision is made.
Progress on the design of the Palm Nipomo parking structure resumed after the City concurred with a
consultant’s financial report and Ad Hoc Committee review confirming that funding was available for the
project and that demand for the structure at this location can be met.
Parking Services continued to monitor public parking in the downtown core.
As part of the City’s annual review of the Parking Fund, public parking fees and fines were raised to
reflect rising costs.
Source: City of San Luis Obispo Annual Report of the General Plan 2009
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Table 3-29 – Neighborhood Traffic Management
Neighborhood Traffic Management
Five (5) neighborhoods actively pursued the preparation of Neighborhood Traffic Management (NTM)
Plans for their neighborhoods. Staff proceeded with the most critical NTM reques t, the Pismo/Buchon
Neighborhood. The Pismo/Buchon Neighborhood voted to support the formation of an NTM program, an
action team was established and in 2009 staff completed and circulated a draft action plan. As of the end
of 2009 staff and the Action Team were finalizing the action plan for council approval.
Source: City of San Luis Obispo Annual Report of the General Plan 2009
Below is a list of local street improvement projects proposed in the City’s Capital Improvement
Program: Funding for these projects is allocated based upon available funding and budget
priorities.
Projects Budgeted 2015/2016
City Facility Parking Lot Maintenance – $82,000
Street Maintenance Projects – $1,700,000
Sign Maintenance Projects – $66,500
Median Landscaping – $50,000
Sidewalk Repairs – $35,000
Pathway Maintenance – $60,000
Bicycle Facility Improvement – $25,000
Bob Jones Trail Octagon Barn Connection – $345,000
2014/2015
City Facility Parking Lot Maintenance – $75,000
Street Maintenance Projects – $700,000
Sign Maintenance Projects – $66,500
Curb Ramps Replacements – $105,000
Prado Road Bridge Maintenance– $170,000
Marsh Street Bridge Rehabilitation – $6,400,000
Sidewalk Repairs – $35,000
Pathway Maintenance – $60,000
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Bicycle Facility Improvement – $25,000
Bob Jones Trail Octagon Barn Connection – $40,000
SLOCOG Regional Transportation Plan, 2014
The most recent adopted RTP, Sustainable Communities Strategy, acts as a blueprint for
a transportation system that addresses transportation projects that will meet access and mobility
needs. The 2014 Regional Transportation Plan (2014 RTP) is intended to be a comprehensive
Plan guiding transportation policy for the region and will make recommendations concerning
improvements to the existing transportation network of highways, transit, air and water, rail and
bicycling.
Regional Improvements. According to the San Luis Obispo Council of Government’s
(SLOCOG) 2014 Regional Transportation Plan a significant increase in traffic volume on
Highway 101 is projected from the 2008 number of 57,857 average daily trips to 87,000 average
daily trips in 2035. The Level of Service in the San Luis Obispo area on Highway 101 is
expected to drop to LOS F. The Central County segment of the route experiences some of the
highest volumes in the region. The SLOCOG 2014 RTP protects the right-of-way for future
expansion; and provides for an evaluation of the capacity needs throughout the corridor to more
complete develop a financial, service and facility plan to meet corridor mobility needs.
U.S.101/SR 1 interchange this location continues to be a significant area of congestion. The
City is leading a study to identify congestion and improvement alternatives at the location. The
SR 1 Major Investment Study, completed summer 2010, recommends a project initiation
document for the interchange. A potentially significant issue at the location is the standards for
clearance over the mainline. Any improvements at this location would warrant rebuilding the
overcrossing to meet standard height. The close proximity of ramps and the interrelationship of
the ramp network and city circulation issues pose a challenging and unique situation.
Los Osos Valley Road: The interchange at Los Osos Valley Road has widen the southbound
off-ramp, raise the intersection at the southbound ramps to improve stopping sight distance,
widen the overcrossing to 4 lanes, and improve bike and pedestrian facilities on the
overcrossing. Construction for this project has completed in April 2016.
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Transit. RTA provides regional fixed-route services within San Luis Obispo County. RTA’s
Route 9 operates on the Highway 101 corridor between San Miguel, Paso Robles, Templeton,
Atascadero, Santa Margarita, and San Luis Obispo. Route 12-A operates between San Luis
Obispo, Cuesta College, Morro Bay, Baywood Park, and Los Osos. There is also one express
trip (in each direction) between Los Osos, Cal Poly and San Luis Obispo on weekdays. San
Luis Obispo Transit operates seven fixed-route buses and trolley, on weekdays and weekends.
Route 1 operates on a circular route originating from the Downtown Transit Hub with stops
downtown, at the French and Sierra Vista Hospitals, and Cal Poly.
Route 2 operates on a figure eight loop servicing major destinations downtown and along
Higuera, including the Prado Day Center, the Department of Social Services and the
Department of Motor Vehicles.
Route 3 operates a circular loop with stops downtown, at the Crossroads Center, and at County
Health Services.
Routes 4 & 5 run in opposite directions on a circular route with stops downtown, at the Amtrak
train station, Laguna Village, Madonna Plaza, and Cal Poly.
Routes 6a & 6b Route 6a serves downtown, Cal Poly, and Highland. Route 6b serves
downtown and Cal Poly. From June 15th through Labor Day Routes 6a & b run every hour
between 8:30 am and 6 pm, Monday through Saturday.
The downtown trolley connects the North Monterey motel district with the core part of
downtown Thursday to Sunday with extended evening hours on Thursdays (Farmers’ Market).
Pacific Surfliner. The “Surfliner” provides two frequencies to/from San Luis Obispo and San
Diego. The service was implemented in 1995 and has proven to be successful and popular.
The service provides a convenient morning departure from San Luis Obispo to Santa Barbara,
Los Angeles and San Diego, with an evening return. In 2004, a San Luis Obispo-Los Angles
roundtrip was added with a midday arrival and departure southbound. The service also includes
a total of 8 bus connections to meet trains that begin (or end) in other cities. SLOCOG has
endorsed the State’s 20-year plan for intercity rail upgrades, which includes train travel time
reductions and increase in train frequency as follows:
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Table 3-30
Travel Time & Frequency Goal
Corridor Segment 2005-2010 2010-2015 2025
one-way
travel time
# of
roundtrips
one-way
travel time
# of
roundtrips
one-way
travel time
# of
roundtrips
San Diego – SLO 9 hrs 1 6.5 hrs 2 6.25 hrs 3
Los Angeles – SLO 6 hrs 2 4.5 hrs 1 4.25 hrs 3
Los Angeles – SF 12 hrs 3 8.75 hrs 2 8 hrs 2
Source: SLOCOG 2010 RTP
Coast Starlight – Amtrak’s’ Coast Starlight train serves the corridor from Los Angeles through
the San Luis Obispo region, to Seattle, Washington. It is one of the busiest long distance trains
in the nation, with one passenger train northbound and one southbound each day. The Coast
Starlight provides a total of four stops per day within the county, two in the City of San Luis
Obispo, each in the mid-afternoon. The on-time performance of the Coast Starlight has vastly
improved over the last year. It is within ½ hour of its scheduled arrival time about 80% of the
time.
Fire
The City of San Luis Obispo Fire Department website is the source of the following information:
“There are fifty-two full time employees of the San Luis Obispo City Fire Department. Eleven of
these are administrative and fire
prevention bureau personnel along with
one mechanic. The remaining forty-two
are firefighters with emergency response
capabilities. There are thirteen Captains,
fifteen Engineers, and twelve
Firefighters. The Fire Department has
five programs; Administration,
Emergency Operations, Fire Prevention
and Life Safety, Training and Equipment,
3,400
3,600
3,800
4,000
4,200
3,810
3,682
4,111 4,154
Fire Station Incidents
2009-12
Calls
Figure 3-13
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and Support Services. The Fire Department operates out of four stations.
Fire Station One (2160 Santa Barbara Avenue) Fire Station One at Broad and South Streets
houses the administrative offices, the Fire Prevention Bureau, and the department’s
maintenance shop with one mechanic, as well as emergency response vehicles. San Luis
Ambulance also operates a crew from this location, and their ambulance is garaged here. The
station is staffed by a Battalion Chief and a 4-person paramedic truck company.
Fire Station Two (126 North Chorro) is the oldest station, built in 1954. The station is staffed
with a 3-person paramedic engine company.
Fire Station Three (1280 Laurel Lane) Completed in 1960 to cover growth at the south end of
the city, Station 3 is located at the corner of Laurel Lane and Augusta Street. The station is
staffed by a 3-person paramedic engine company.
Fire Station Four (1395 Madonna Road) constructed in 1978; under the administration of
Mayor Kenneth Schwartz, Fire Station Number Four is located at the intersection of Madonna
Road and Los Osos Valley Road. The station also acts as the base of operations for the Fire
Captain, who is the Paramedic Coordinator for all the Paramedics on the Fire Department.
In 2009, a Sacramento based Consulting Firm conducted a Fire Department Master Plan for the
City of San Luis Obispo that reviewed the records for incidents between fiscal year 2004 and
2008. Service demands were counted and of the 33,679 apparatus responses over the 48-
month period, 15,757 responses were first apparatus arrivals on the scene of a distinct incident.
This translates to an average of 328.27 per month or 10.76 incidents per day. On average each
incident logged an average of 2.13 apparatus responses. The majority of the calls (9,770) were
medical related and 400 calls were outside of the City of San Luis Obispo.
The fire department on average has a response time of 6.08 minutes over the City. The National
Fire Protection Association (NFPA) 1710 standard is 6-minutes for the first apparatus on scene.
The City’s Fire Department is able to serve the City’s emergency response needs, however,
expansion of the fire department must be considered as growth and development increase.
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POLICE
The City of San Luis Obispo provides law enforcement services for the residents of the City.
The Police Station is located at the corner of Santa Rosa and Walnut. The total budget for the
Police Department for fiscal year 2013-14 is $14.96 million. An overview and services provided
by the Department are briefly described below. The San Luis Obispo Police Department
consists of 84.5 employees, 59 of which are sworn police officers. The Department is divided
into two bureaus, with a Police Captain commanding each.
The Operations Bureau consists of a Patrol Services Division, Traffic Safety Unit, Situation
Oriented Response Team (SORT), and Neighborhood Services. In 2008 construction began on
the new Emergency Communications Center located adjacent to Fire Station #1. The ECC is
equipped with new state-of-the-art technology.
Service Levels. Service levels for Police are often measured in terms of the number of sworn
officers per 1,000 people in a community. This is a general measure and should be used only as
one piece of information in characterizing police service levels. Service levels vary from city to
city because of minimum patrol staffing, officer safety, available back -up from surrounding law
enforcement agencies, demographics, geographic features, special service needs, specific
crime problems, and other factors. The following is a ratio of full-time sworn officers per 1,000 in
population for the City of San Luis Obispo in 2013, calculated using the following formula:
45,119 population ÷ 1,000 = 45.11 people
59 sworn employees’ ÷ 45.11 = 1.30 officers per 1000 people
Nationwide the Department of Justice-FBI law enforcement statistics show the ratio to be an
estimated two and a half officers per 1000 people for communities the size of San Luis Obispo.
The average officers/1,000 ratio for the seven cities in San Luis Obispo County is about 1.6
officers, with Pismo Beach being the highest at 2.6 and Paso Robles the lowest at 0.90
officers/1,000.
The figures below show the violent and property crime rates per 1,000 people for the City of San
Luis Obispo from 2006 through 2013. Violent crimes include homicide, rape, robbery, and
aggravated assault and have been steadily decreasing. Property crimes include burglary,
larceny, auto theft, and arson. This information is from the California Department of Justice
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Crime statistics. The 2006-2013 crime statistics are based on data from the State of California’s
Office of Attorney General, Department of Justice, Criminal Justice Statistics Center.
Figure 3-14: Violent Crime Rate
Source: California and FBI Crime Index Table 11, 2006-2013
Figure 3-15: Property Crime Rate
Source: California and FBI Crime Index Table 11, 2006-2013
3.6 3.8 3.1 3.1 2.8 2.9 2.6
3.5
0
0.5
1
1.5
2
2.5
3
3.5
4
2006 2007 2008 2009 2010 2011 2012 2013Crime per 1000 people City of San Luis Obispo - Violent Crime per 1000 people
Violent Crime Rate
39.7
42.5 39.5 42.6
66.1 69.7 77.1
70.5
0
10
20
30
40
50
60
70
80
90
2006 2007 2008 2009 2010 2011 2012 2013Crime per 1000 people City of San Luis Obispo - Property Crime per 1000 People
Property Crime Rate
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The following figures show the City of San Luis Obispo property and violent crime rates
compared to the other cities in the County. Property crime involves burglary, larceny, auto theft
and arson. The crime rate is normally calculated as the number of crimes per 100,000 people.
Due to the lower population of San Luis Obispo County and cities, the crime rate shown is per
1,000 people. San Luis Obispo had a crime rate of 44.3 in 2002 and in 2009 the crime rate
decreased to 39.5, then increased to 70.5 in 2013.
Figure 3-16: Comparative Crime Rate
Source: DOF E4, 2009 and California Department of Justice Department
2002 2003 2004 2005 2006 2007 2008 2009
Atas 31.2 31.3 25.3 22 24 19.6 19.2 22.8
A.G.23.9 23.1 24.9 25.1 22.9 21.8 22.2 26.4
G.B.24.9 25.7 31 21.6 29.9 21.2 24.3 31.1
P.R.33.6 35 24.9 24 34.5 31.5 28.1 37.5
P.B.42.9 49 53.5 43.8 49.3 41.4 41.2 57
SLO 44.3 44.8 45.5 41.1 39.7 42.5 39.5 42.6
M.B.18.7 20 17.7 17.1 16.1 15.5 18.2 20
0
10
20
30
40
50
60
Crime per 1000 people
City Comparisions
Property Crime per 1000 people
Atas A.G.G.B.P.R.P.B.SLO M.B.
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Violent crime involves homicide, rape, robbery, and aggravated assault. These statistics are
from the California Department of Justice Law Enforcement Information Center and the
California Department of Finance E4 report, 2009. The crime rate is normally calculated as the
number of crimes per 100,000 people. Due to the lower population of San Luis Obispo County
cities, the crime rate shown above is per 1,000 people.
Figure 3-17: Comparative Crime Rate
Source: DOF E4, 2009 and California Department of Justice Department
2002 2003 2004 2005 2006 2007 2008 2009
Atas 3.3 2.4 3.9 4.1 2.6 3.4 2.8 2.2
A.G.1.4 1.6 1.9 2.6 2.9 1.5 1.7 1.4
G.B 3 2.8 2.4 2.7 3 6.8 6.8 3.9
P.R.4.5 4.5 4.4 3.9 3.1 3.6 4.1 3.1
P.B.6.4 3.3 5.2 3.8 5.7 2.6 2.9 1.7
SLO 3.6 3.1 4.1 3.8 3.6 3.8 3.1 3.1
M.B.2.3 2.5 1.8 1.5 2.2 2 1.8 1.9
0
1
2
3
4
5
6
7
8
Crime per 1000 people
City Comparisions
Violent Crime per 1000 people
Atas A.G.G.B P.R.P.B.SLO M.B.
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The City’s General Plan requires that all new development pay impact fees for additional
equipment and fixed facilities needed to serve the new development with police services. The
City also has a policy of maintaining staffing levels that enable the Police Department to give
adequate attention to calls for service, to patrol and crime prevention, and to administrative
requirements.
Public Perception – Safe Community. The Action for Healthy Communities completed an
indicators report in 2010. One of the factors considered is public safety service. A statistically
valid telephone survey is conducted that asks the question: “How safe would say you feel in
your neighborhood?” The following chart shows that from 2003-2010 residents in San Luis
Obispo perceived their City as becoming increasingly unsafe.
DEVELOPMENT IMPACT FEES
Government Code Section 66000 is intended to hold agencies to a higher level of accountability
whenever charges are established, increased, or imposed and whenever updates or reviews
are performed. Section 66000 requires ordinances to include language that commits the local
agency to establish reasonable development charges and, if those charges are found not to be
reasonable, to refund the difference. The City levies a series of development impact fees for
92.9
80.4 75.5
7.1
19 22.6
0 0.5 1.7 0
20
40
60
80
100
2003 2006 2010
Figure 3-18: San Luis Obispo- Perception of a Safe Community
Very Safe Somewhat Safe Not safe at all
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new development to address many differing needs. All these fees are based on Government
Code Section 66000 et seq., which requires the agency setting fees to (i) identify the purpose of
the fee, (ii) identify the use to which the fees will be put, (iii) determine the reasonable
relationship (or “nexus”) between the type of development charged the fee, the amount of the
fee and its use, and (iv) determine the reasonable relationship between the need for the public
facility or improvement and the project upon which the fee is imposed. Fees collected by the
City include: fees in-lieu of parkland dedication, park development projects, water and sewer
capacity and improvement fees, road and circulation fees, public safety fees, and general
administrative capital improvement fees.
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WRITTEN DETERMINATIONS
The following written determinations are based on the information contained in the above
section regarding Infrastructure Needs and Deficiencies:
Water Supply and Demand
1. The City is able to provide the core services (water, sewer, police and fire) to the
development within the City. The policies and standards in the City’s General Plan provide
for future services to be funded by the developer.
2. The 2015 Safe Yield of the City’s Water Supply is estimated to be 10,005 afy in the Water
and Wastewater Element of the City’s General Plan. The estimated demand by the City at
build out of the current General Plan is 9,096 afy.
3. The City currently has an adequate and reliable water supply to serve the City’s anticipated
build-out under its current General Plan. Properties proposed for annexation would be
required to identify land uses and water demands and supplies to adequately serve the
development.
4. The City’s General Plan policies would not allow water services to be provided in excess of
the available supply.
5. The City adopted water conservation measures in 2015 to continue to address the drought
conditions and meet the Governors 2014 mandate.
Wastewater
6. The City operates and regularly maintains the wastewater collection and treatment system,
which consists of sewer pipelines, manholes, pump stations, and a wastewater treatment
and reclamation facility.
7. The treatment facility has the capacity to process 5.1 million gallons per day of wastewater
and is currently processing an average of 4.5 million gallons per day. The system is
operating at 88% of capacity.
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8. The City regularly upgrades their Sewer System by approving projects and allocating funds
as part of their Capital Improvement Program and Plan.
9. The City is in the process of evaluating expansion options for the wastewater
treatment/reclamation facility that would accommodate new and in-fill development.
Roads and Streets
10. The City’s Circulation Element, in conjunction with the Land Use Element and Capital
Improvement Plan, prioritizes and manages the transportation and traffic network.
11. The City improves the transportation network by allocating funds and implementing
transportation improvement projects through the Capital Improvement Plan.
12. Several transportation projects are in the planning stages and are progressing toward
construction. These include the Los Osos Valley Road-Highway 101 interchange, the Prado
Road-Highway 101 interchange. These projects will provide for the continued upgrade of the
City circulation system.
Infrastructure
13. Development proposals in the Sphere of Influence would be required to extend physical
infrastructure to their respective sites as needed and pay their share for facilities and other
City services as a condition of project development.
14. The City is in the process of upgrading and maintaining many of its public facilities, including
roads, and wastewater treatment and collection system through its Capital Improvement
Plan.
15. The City’s General Plan, Capital Improvement Plan, and Circulation Element address the
provision of infrastructure for wastewater, roads and other public facility needs.
16. The City should be able to provide the core services (water, sewer, police and fire) to areas
within the existing Sphere of Influence while continuing to adequately serve existing
residents, pursuant to the policies and standards contained in the General Plan are
implemented when considering annexations and development projects.
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17. The City’s facilities comply with environmental and safety standards and no major
enforcement actions by state or federal agencies were identified.
Police and Fire
18. The City’s Police Department is adequately staffed to provide law enforcement services to
its residents given the comparable crime rate with other cities in the County.
19. The City will have the opportunity to add police staff as needed to serve the Sphere of
Influence area.
20. Agreements to provide fire and police services at no extra cost to existing residents will be
worked out with the developer during the preparation of the Specific Plans and other
permits.
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Figure 3-19
General Fund Expenditures in 2015-2017
Source: City of SLO Financial Plan, 2015-17
3.4 FINANCIAL ABILITY OF AGENCIES TO PROVIDE SERVICES
Purpose: To review the City’s existing financial documentation and identify any
financial constraints or opportunities.
Budget
The City of San Luis Obispo’s two-year budget document is well organized, thorough and
clearly articulates the City’s future financial plans. The City has established a comprehensive
fiscal policy base that guides the preparation and management of the budget, identifies the
City’s goals and work programs, and summarizes the progress toward previously established
City goals. From this policy base the City prepares the Financial Plan which functions as a
Policy Document, Fiscal Plan, Operations Guide, and Communications Tool. This leads to a
well-organized financial planning process that is based on input from the community,
comprehensive fiscal information, and clearly stated documentation.
The City prepares a five-year financial forecast on an annual basis. This forecast, completed in
December 2014, indicated that the City no longer faces a continuing long term budget gap. In
2014-15, revenues sources such as sales tax and Transient Occupancy Tax (TOT) have been
growing for the past three years with TOT exceeding its pre‐recession peak. The 2015‐17
Financial Plan focused on major new investments and important reinvestments in critical City
infrastructure. The 2015‐17 Financial Plan identifies the City’s unfunded pension liabilities and
makes substantial payments to reduce them. Measure G, a local ½ percent sales tax was
reauthorized by the voters in 2014. The projected revenue is expected to generate $7 million by
2016-17. The funding source enables the City to provide important and valued serves to the
community. The City Council prioritizes the use of this resource using the City’s financial
planning process. The local revenue measure supports many of the City basic services, such
as police, fire, road maintenance, and parks and open space. The General Fund comprises
47% of the City’s total expenditures.
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In recent years, the various City departments have gone through an organizational assessment
and planning process to identify best practices for service delivery and cost containment to
support ongoing efforts to increase efficiency and effectiveness of City operations.
The City has been very proactive in addressing the financial situation. The City has again relied
on the six-point Fiscal Health Contingency Plan. This plan helped prepare the City to take
several actions in response to a deteriorating financial picture and thus preserve the fiscal
health of the City.
The budget that is adopted is the spending plan for the City
and provides a framework for the City to address the following
issues: reserves, revenues, expenditures, transfer authority,
fiscal management, investments, capital improvements and
rates and fees.
The 2015-2017 Financial Plan balances the budget while
maintaining the reserves at the policy level. The budget is
designed to implement the Council’s top priorities. Two major
elements of the goal-setting process are the Community
Forum and the Council Goal-Setting Workshop which were both held in January. At the Goal-
Setting Workshop, Council established three Major City Goals and four Other Important Council
Objectives, as follows:
• Open Space Preservation. Protect and maintain open space.
• Multimodal Transportation. Prioritize implementation of the Bicycle
Transportation Plan and improve and maintain bicycle, pedestrian, and transit
facilities.
• Housing. Implement the Housing Element, facilitating workforce, affordable,
supportive and transitional housing options, including support for needed
infrastructure within the City’s fair share.
Fiscal Health Contingency Plan
1. Keep reserves at minimum
levels
2. Follow key fiscal policies
3. Closely monitor fiscal health
4. Assess the problem
5. Identify options
6. Take actions
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Other Important Objectives. Goals in this category are important for the City to accomplish,
and resources should be made available in the 2015-17 Financial Plan if at all possible.
• Neighborhood Wellness. Improve neighborhood wellness, work with
residents, Cuesta, and Cal Poly; increase public safety, code compliance,
and collaborative solutions.
• Laguna Lake Restoration. Initiate implementation of the Laguna Lake Natural
Reserve Conservation Plan.
• Fiscal Sustainability and Responsibility. Implement the City’s Fiscal
Responsibility Philosophy with a focus on the reduction of unfunded
liabilities.
• Downtown. Adopt a Downtown Concept Plan, develop a plan for expansion
of Mission Plaza, and improve safety, infrastructure, and maintenance in
the Downtown.
The City levies a series of development impact fees for new development to address a variety of
impacts and services. All these fees are based on Government Code Section 66000 et seq.,
which requires the agency setting fees to (i) identify the purpose of the fee, (ii) identify the use to
which the fees will be put, (iii) determine the reasonable relationship (or “nexus”) between the
type of development charged the fee, the amount of the fee and its use, and (iv) determine the
reasonable relationship between the need for the public facility or improvement and the project
upon which the fee is imposed. Fees collected by the City include: fees in-lieu of parkland
dedication, park development projects, water and sewer capacity and improvement fees, road
and circulation fees, public safety fees, and general administrative capital improvement fees.
Annual Audits
Annual audits are required by State Law and are performed with the purpose of identifying any
inconsistencies or non-compliance with mandated accounting requirements. As part of this
Service Review, audits prepared by an independent auditor over the last three years were
submitted to LAFCO by the City for review. In reviewing the audits, the City was found to be in
compliance with standard accounting principles and standards. The Auditor identified no issues
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or financial problems and provided an “unqualified opinion” regarding the financial statement
presented by the City. The following excerpt from the Independent Auditor documents the
auditor’s opinion:
“In my opinion, the financial statements referred to above (not shown) present fairly, in all material
respects, the respective financial position of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of San Luis
Obispo, California, as of June 30, 2015, and the respective changes in financial position and cash
flows, where applicable, thereof for the year ended in conformity with accounting principles
generally accepted in the United States of America.”
An “unqualified” independent audit indicates that the organization is managing its financial
resources in accordance with accepted accounting principles and standards. This is an indicator
of the financial health of an organization and provides information regarding its financial
practices. The City also posts its annual budget and audits on its website. This provides the
public with easy access to the annual budget and audits. Conversely, an independent auditor
would identify accounting financial concerns if these were found.
Constraints
Construction of new infrastructure to serve the SOI areas presents a challenge in terms of
funding such projects. Serving the SOI areas will likely require a plan for financing infrastructure
improvements in these areas. This plan would address funding sources for a number of needed
improvements including roads, pipeline infrastructure, and other capital improvements. Funding
and timing of these improvements would require planning and investment of resources. The
City has policies to require the developer to pay for infrastructure costs related to an annexation.
LAFCO considers the ability of a jurisdiction to pay for improvements or services associated
with future annexed sites. This planning can begin by identifying what opportunities there are to
fund infrastructure and maintenance needs associated with future annexation and development.
Also identifying limitations on financing such improvements, as well as the opportunities that
exist to construct and maintain those improvements, is important.
Fiscal Trend Analysis
The following charts show the fiscal trend analysis for the past five years for key fiscal indicators
that represent an early warning system for an agencies fiscal health. The key indicators are
overall operating budget, general fund expenditures, property tax revenues, elastic revenues
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(which include transit occupancy tax, sales tax, and franchise fees), reserves, long -term debt,
and fund balance for each year. The information was derived from the City’s comprehensive
annual financial statement for each year.
Operating Budget Figure 3-20
Formula:
Consolidated
Expenditures /
Fiscal year
Trend Analysis:
Monitor expenditures
over time.
Source:
Comprehensive Annual
Financial Statements:
Statement of Activities
Basic Financial
Statements: Statement
of Revenues,
Expenses & Changes
in Net Assets
$96,728,800$87,673,600$89,614,900$92,362,500$96,190,550$82,000,000
$84,000,000
$86,000,000
$88,000,000
$90,000,000
$92,000,000
$94,000,000
$96,000,000
$98,000,000
2010 2011 2012 2013 2014BudgetCity of San Luis Obispo
Operating Budget
Operating Budget by Year Description:
This indicator refers to the overall operating budget and expenditures including enterprise funds. It
shows the expenditure pattern over a period of several years.
General Fund Budget Figure 3-21
Formula:
General Fund
Expenditures / Fiscal
year
Trend Analysis:
Monitor expenditures
over time.
Source:
Comprehensive Annual
Financial Statements:
Statement of Activities
Basic Financial
Statements: Statement
of Revenues, Expenses
& Changes in Net
Assets
$54,009,600$44,713,900$47,212,100$54,324,556$60,271,589$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
2010 2011 2012 2013 2014Fund BalanceCity of San Luis Obispo
General Fund
General Fund by Year
Description:
This indicator refers to the General Fund expenditures Not including debt service, capital
improvements or capital projects contributions. For special districts it is assumed that all expenditures
(except as otherwise stated) are expenditures for services related to charges.
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Property Tax Revenues Figure 3-22
Formula:
Property tax revenue /
Fiscal year
Trend Analysis:
Monitor property tax
revenues over time.
Source:
Comprehensive Annual
Financial Statements:
Statement of Activities
Basic Financial
Statements:
Statement of
Revenues,
Expenses & Changes in
Net Assets
$12,144,400$8,441,100$8,367,000$8,960,010$7,191,579$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2010 2011 2012 2013 2014RevenueCity of San Luis Obispo
Property Tax Revenue
Property Tax Revenue by Year
Description:
This indicator will have more importance for those agencies heavily reliant upon property tax revenues
such as cities. As these revenues are closely tied to market conditions, this indicator can depict the
ability of an agency to respond to economic fluctuations. The property taxes are distributed based on the
calendar year and the years indicated in the chart are the ending years for each calendar year.
Adaptable Revenues Figure 3-23
Formula:
Adaptable operating
revenues / Net
operating revenues
Trend Analysis:
Monitor amount of
adaptable operating
revenues as a
percentage of net
operating revenues.
Source:
Comprehensive Annual
Financial Statements:
Statement of Activities
Basic Financial
Statements:
Statement of Revenues,
Expenses & Changes in
Net Assets
44.8%
28.6%29.6%
25.0%26.7%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
2010 2011 2012 2013 2014RevenueCity of San Luis Obispo
Adaptable Revenue
Adaptable Revenue by Year
Description:
This indicator can help agencies determine how adaptable revenues are impacting their abilities to
provide services. If revenues rely heavily on adaptable sources the agency may want to explore
opportunities for increasing inelastic sources to offset the shortfalls in the inelastic revenues. Adaptable
revenues consist of TOT, sales tax, and franchise fees, for special district elastic revenues also include
water and sewer sales and availability.
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Reserves Figure 3-24
Formula:
Unrestricted operating
revenues / Net
operating or general
fund expenditures
Trend Analysis:
Monitor amount of
reserves as a
percentage of net
operating or general
fund expenditures.
Source:
Comprehensive Annual
Financial Statements:
Statement of Activities
Basic Financial
Statements: Statement
of Revenues, Expenses
& Changes in Net
Assets
18.3%
27.5%
24.9%
20.0%19.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
2010 2011 2012 2013 2014Reserves by PercentCity of San Luis Obispo
General Fund Reserves
Reserves by Year
Description:
As the percentage of reserves increases, a local government gains its ability to respond to changing
conditions and to citizens’ needs and demands. Decreases in reserves may also indicate future inability
to maintain or enhance service levels. For special districts reserves are a % of next FY operating budget.
It should be noted that reserves for agencies with infrastructure maintenance obligations will likely exceed
100% as the agency builds the necessary reserves to upgrade and maintain infrastructure.
Long-Term Debt/Liabilities Figure 3-25
Formula:
Current liabilities / Net
operating revenues
Trend Analysis:
Monitor Long-term debt
at the end of the year as
a percentage of net
operating revenues over
time.
Source:
Statement of Net Assets
$97,041,100$91,704,800$84,186,400$77,963,268$85,620,704$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
2010 2011 2012 2013 2014DebtCity of San Luis Obispo
Long-Term Debt
Long-Term Debt by Year
Description:
A major component of a jurisdictions liability may be long-term debt in the form of tax or bond anticipation
notes. Although long-term borrowing is an accepted way to deal with uneven cash flow, an increasing
amount of long-term debt outstanding at the end of successive years can indicate deficit spending
problems.
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Changes in Fund Balance Figure 3-26
Formula:
General fund operating
deficit or surplus / Fund
operating revenue
Trend Analysis:
Monitor general fund
operating deficit or
surplus as a percentage
of net operating
revenues.
Source:
Comprehensive Annual
Financial Statements:
Statement of
Revenues, Expenses
and Changes in Fund
Balance (Government
Funds)
Basic Financial
Statements: Statement
of Revenues Expenses
& Changes in Net
Assets
-$12,988,000
$95,600
-$3,284,700 -$2,346,838
$7,381,021
-$15,000,000
-$10,000,000
-$5,000,000
$0
$5,000,000
$10,000,000
2010 2011 2012 2013 2014
Fund BalanceCity of San Luis Obispo
Changes in Fund Balance
Change in Fund Balance by Year
Description:
This indicator is especially important because a pattern of operating deficits of the general fund can be
one of the first signs of an imbalance between revenue structure and expenditures. It should be noted
that it would not indicate a problem if the agency had planned the operating deficits and was deliberately
drawing down reserve fund balances or using extra revenues from another fund for temporary needs.
Major Revenues. Sales Tax is the City’s number one General Fund revenue, accounting for
40% of General Fund sources or $24.8 million. Following declines in Sales Tax due to the Great
Recession, the City has seen year-over-year growth in this revenue stream over the last eight
quarters. The City is anticipating a growth of 10.1% in 2015-16. Property tax is expected to
increase by 5% or $9.73 million in 2015-16. TOT revenues also make-up the top three
revenues for the City accounting for about 11% or $6.84 million. The City had a 10% decline in
TOT in 2009-10 however the City reported a quick recovery. The City is project there will be a
growth of 5% in 2015-16.
Figure 3-27 Major Revenues
Sales Tax, 40%
Property Tax,
16%
TOT, 11%
Utility Tax, 9%
Fees, 9%
Lieu of VLF, 7%
Franchise, 2%
Other,
6%
Source: City of SLO Financial Plan, 2015-17
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Long-Term Debts
The City uses debt financing only for one-time capital improvements whose life will exceed the
term of the financing and where expected revenues are sufficient to cover the long-term debt.
The City does not use long-term debt financing for any recurring purpose such as current
operating and maintenance expenditures. The City has the following long-term debts:
2009 Lease Revenue Bonds - Purpose: Public Safety Communications and Emergency
Operations Center Maturity Date: 2039 Original Amount: $10,705,000 as of July 1, 2009
Principal Outstanding $10,705,000.
2008 State Infrastructure Bank (CIEDB) Loan - Purpose: Tank Farm Lift Station and
Force Main Project Maturity Date: 2038 Original Principal Amount: $10,000,000 as of
July 1, 2009 Principal Outstanding: $10,000,000.
2008 Installment Sale Agreement - Purpose: Tank Farm Lift Station and Force Main
Project Maturity Date: 2023 Original Amount: $2,050,000 as of July 1, 2009 Principal
Outstanding: $2,050,000.
2006 Water Revenue Bonds - Purpose: Water Treatment Plant Improvements Maturity
Date: 2036 Original Amount: $16,905,000 as of July 1, 2006 Principal Outstanding
$16,905,000.
2006 Lease Revenue Bonds - Purpose: Parking Structure and City Offices Maturity
Date: 2036 Original Amount: $16,160,000 as of July 1, 2007 Principal Outstanding
$16,160,000.
2005 Water Resources Control Board Loan - Purpose: Construct water reuse project.
Maturity Date: 2031 Authorized Principal Amount: $8,883,200 as of July 1, 2007
Principal Outstanding: $6,672,700.
2003 Lease Purchase Financing - Purpose: Construct energy conservation
improvements at various City locations. Maturity Date: 2013 Original Principal Amount:
$3,023,100 as of July 1, 2007 Principal Outstanding: $2,237,200.
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2001 State Infrastructure Bank (CIEDB) Loan - Purpose: Expand Marsh Street
parking structure Maturity Date: 2031 Original Principal Amount: $7,765,900 as of July 1,
2007 Principal Outstanding: $7,240,500.
1999 Series C Lease Revenue Bonds - Purpose: Purchase property and build athletic
fields; purchase property for police station expansion; purchase Downtown Plan
properties Maturity Date: 2029 Original Principal Amount: $6,745,000 as of July 1, 2007
Principal Outstanding: $6,660,000.
1996 Lease Revenue Bonds - Purpose: Construct a new headquarters fire station and
other City acquisitions. Maturity Date: 2026 Original Principal Amount: $7,100,000 as of
July 1, 2007 Principal Outstanding: $6,355,000.
1993 Water Revenue Bonds - Purpose: Upgrade the City's water treatment plant to
meet water quality standards. Maturity Date: 2023 Original Principal Amount:
$10,890,000 as of July 1, 2007 Principal Outstanding: $8,185,000.
1992 State Clean Water Revolving Fund Loan - Purpose: Upgrade the City's water
reclamation plant and collection system to meet discharge standards. Maturity Date:
2012 Original Principal Amount: $31,227,400 as of July 1, 2007 Principal Outstanding:
$13,043,700.
1990 Certificates of Participation - Purpose: Acquire land for open space, rehabilitate
the City's Recreation Center and acquire land for parks and recreation
offices/neighborhood Park. Maturity Date: 2010 Original Principal Amount: $4,500,000
as of July 1, 2007 Principal Outstanding: $1,600,000.
1986 Lease Revenue Bonds - Purpose: Construct parking structures (net proceeds:
$5,758,400); make road improvements and purchase facilities (net proceeds:
$4,450,000). Maturity Date: 2014 Original Principal Amount: $13,970,000, as of July 1,
2007 Principal Outstanding: $5,520,000.
While over time residential uses generally do not cover the full cost of municipal services from
property and local sales taxes that are generated, the opportunity to require privately maintained
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amenities, roads and open space in residential development projects, coupled with the inclusion
of commercial development suggests that the SOI areas as recommended may be able to break
even in terms of revenues versus costs of services. In March 2016, the median home price in
the City was $660,100. Since the property taxes are calculated based on the sales price of
homes, the higher the selling price the more property tax revenue would be generated. These
issues would be thoroughly analyzed as the development review process moved forward for
areas located in the SOI and being considered for annexation.
The fiscal impact of development on a City’s budget depends upon what type of development is
approved residential, commercial-retail, office, hotel, or industrial. Fiscal impacts also depend
on the City’s financial structure. According to the California League of Cities, the Financial
Structure of a City may include the following:
City’s costs of services to the development - costs vary, service levels vary – San Luis
Obispo updated its Development Impact Fees in 2010.
City’s particular mix of service responsibilities - e.g., some cities are not responsible for
certain services - San Luis Obispo provides all municipal services to residents.
City’s share of property tax revenue generated - shares vary – in part based on service
responsibility. – Through the approval of Proposition 1A in 2010 the State could take monies
from San Luis Obispo property tax revenues as a one-time funding source to fund the
State’s budget shortfall. The City’s budget does not anticipate any take-a-ways.
City’s local taxes and rates e.g. utility tax, hotel tax, business license tax, franchise tax,
sales tax, etc.- San Luis Obispo’s sales tax for 2015 rose by >10% from the previous year.
The fiscal impact of development is also dependent upon the Local Economy. Several factors
affect the City’s financial picture:
Local property values, which relate to assessed valuation for taxation.
City’s capacity to capture taxable sales from the new development within its jurisdiction - its
land-use mix - level and proximity of taxable sales from the new development.
Property turnover (resale) rates - property is reassessed for taxation upon resale.
Increased revenues from new homes would be directly derived from property taxes. The likely
fiscal benefits to the City from the areas annexed may include modest levels of property tax
collections from residential land development or Transient Occupancy Tax if tourist-oriented
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development takes place. Other residential income that could help offset the costs of residential
development would be derived from indirect sales and use taxes and one-time development
impact fees.
Likely fiscal costs to the City would typically include public maintenance of infrastructure
completed for the new projects. Possible programs to minimize and off -set public maintenance
costs include private maintenance through homeowner’s associations, as well as public
maintenance through a utility or assessment district established by the City. Assessment
districts can be a valuable tool used in many communities to offset on-going maintenance costs.
The use of these districts should be considered for undeveloped properties planned to be
included in the City.
San Luis Obispo, like most cities, requires new development projects, and in particular
annexations, to “pay their own way.” At the time an annexation is considered for any of the SOI
properties, the City requires an economic analysis to be prepared to identify a cost -benefit
breakdown of the proposed land uses and projects.
The current Master Property Tax Agreement policy for property tax exchanges upon annexation
of “raw land” enables the County to retain all of the base property tax with 66% of the increment
being allocated to the County. The City retains 33% of the property tax increment and all of the
sales tax, if any. A different tax exchange agreement can be negotiated between the City and
the County if both parties agree.
Other income from residential uses would be derived from indirect sales and use taxes, as well
as enterprise fund payments, and one-time development impact fees. San Luis Obispo would
also gain sales tax and transient occupancy tax (TOT) revenues from any retail or visitor-serving
uses added to the SOI sites.
Reserves
The City has adopted a Fiscal Policy which includes maintaining a General Fund Reserve of
20% of budgeted annual operating expenditures and a minimum working capital balance of 20%
in operating expenditures in the water, sewer and parking enterprise funds. This is considered
the minimum level for maintaining a good credit rating, to provide for economic uncertainties,
contingencies for unforeseen expenses, and cash flow requirements. The City balanced the
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budget while maintaining reserves at the 20% of operating expenditures. Healthy reserves are
one indicator that the City is in sound financial condition. The combination of conservative
revenue projections and holding the line on expenditures has helped San Luis Obispo maintain
a reserve in excess of the City’s 20% policy of $4.4 million at the end of fiscal year 2015.
The City adopts a two-year budget which forces the City to look beyond the current year and
attempt to alleviate any shortfalls that may occur in the future. The two-year budget also saves
time and energy of the staff as well as money. The City balanced the last three FY 11-12, 12-13,
and 13-14 budgets without dipping into its reserves with FY 14-15 slightly dipping into the
reserves. The following information is from City Adopted Financial Plan, FY 2015-17 [pie charts,
pg D-15].
General Fund
• General Sale Tax 27%
• Property Tax 15%
• Services Charges 12%
• Local Measure Sales Tax 11%
• TOT 11%
• Utility User Tax 09%
• Other Taxes 07%
• Property Tax in Lieu of VLF 06%
• All Other Revenue 01%
Rates and Fees
In 2013, the City prepared a Water & Wastewater Development Impact Fee Study that
considered one-time charges imposed for new development when development creates an
impact on the City’s water and/or wastewater systems. The fees are designed to recover the
portion of the capital investments required to provide sufficient system capacity to serve new
users. The City prepared the 2013 Study in order to identify and/or update the public facilities
and costs associated with providing capacity for future development. This study complied with
Section 66000 et seq. of the Government Code.
In 2009, the City retained Maximus, Inc to complete a city-wide Cost for Services Study to
reflect current conditions in San Luis Obispo. The purpose of the study was to address the need
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to maintain the City’s services at levels equal to the standards set by the City Council and to
maintain effective policy and management control of City Services. As described earlier, the
annexation of any site will be done through the preparation of specific plans that will include
payment of annexation and development fees by the landowners, as well as requirements to
install and maintain basic infrastructure to serve the developments. Impact fees for the following
types of facilities and improvements were evaluated; planning, building and safety, police, fire,
utilities, and recreation, (water, wastewater, transportation facilities were adjusted in 2006 with a
CIP index). This study provided information and guidance to the City Council on how the City
can continue as a viable financial entity, finance the services and facilities that its citizens and
businesses have come to expect, and yet be able to live with budgetary limits. Using this study
the City adjusted their fee structure by increasing the costs of key development applications.
This adjustment resulted in the City recouping a higher percentage of the actual expense of
providing and maintaining various facilities and infrastructure needs for new development.
In 2006, the City retained MuniFinancial to provide Transportation Impact Fee Justification
Study. Using this study the City adjusted its fee structure by increasing the cost of new
development and identifying the public facilities and costs associated with mitigating the direct
cumulative impacts.
In 2009, the City provided water and sewer rate studies and related reports and
recommendations for the City’s water and sewer enterprise funds. This report provided rate
increases for the FY 09-11 to maintain reliable water and sewer service. The report also
discussed water rates that reflected the Nacimiento Pipeline Project. The City gave public
noticing for customers to protest the increased rates of providing water service. The City did not
receive a majority of written protest for rate increase subsequently the City adopted new rates
for water and sewer service.
The City’s water and sewer services are operated as enterprise funds. This means that
revenues to support operations and capital improvements are borne by the ratepayer. Water
and sewer funds are reviewed annually by the City Council at a public hearing where the
Council then determines the appropriate rate for service. If rate increases are needed, they are
usually implemented at the beginning of the new fiscal year, July 1st, and all rates are prorated
accordingly. The following is a table that compares the rates and fees of several service
providers for water and sewer services:
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Table 3-31: Residential Water Rates Comparison
Rate/Fee Paso Robles Atascadero2) Morro Bay Pismo Beach Arroyo Grande Grover Beach San Luis Obispo1) Monthly
Service
Charge
$0.00
$20.50
$24.18
$32.57
$27.523)
$10.06
$8
Water Fee
Per unit
used: 100
cubic feet =
1 ccf
100 cubic
foot = 748
gallons
$0
$4.40
(all ccf)
$2.10
(3-12 ccf)
$3.25
(13-25
ccf)
$4.80
(26-50
ccf)
$5.50
(51 + ccf)
$4.00
(1-3 ccf)
$7.00
(4-10 ccf)
$9.50
(11-50
ccf)
$12.50
(50+ ccf)
$2.72
(1-10 ccf)
$3.36
(11-20
ccf)
$3.97
(21-35
ccf)
$5.43
(36 + ccf)
$3.42
(1-18 ccf)
$3.76
(19-36
ccf)
$5.02
(36+ccf)
$3.34
(0-12 ccf)
$3.53
(13-20
ccf)
$4.04
(21-42
ccf)
$4.57
(42 + ccf)
$7.90
(0-8 ccf)
$9.88
(9 + ccf)
5% utility
tax
1) SLO has a 5% tax
2) Nacimiento Charge $2.50
3) Lopez Charge
Jurisdictions that have a limited water supply, such as Morro Bay, typically have a graduated
rate structure that increases significantly with higher water use. This encourages conservation
on the part of the water users and discourages wasteful practices. The City of San Luis Obispo
water rates are higher in comparison to others in the County. Comparing the various rates and
fees, a sample bill using 20 units of water over a two-month period was calculated. In
comparison, San Luis Obispo has the highest water rates of all the jurisdictions:
2.95
9.78
3.25
4.40 3.60
9.50 9.50
3.36 3.76 3.53
9.88
2.84 2.61
6.00
9.85
2.80
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
Figure 3-28: Rates for Water Use at 20 CCF
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Table 3-32 – Single-Family Water Rates and Monthly Bill
Rate/Fee
Paso
Robles
Atascadero
San
Luis
Obispo
Cambria
Morro
Bay
Pismo
Beach
Arroyo
Grande
Los
Osos
Grover
Beach
Templeton
Monthly
Service Meter
Charge
$0.00
$18.00
Up to 2 ccf
$8.00
$25.50
$24.18
$32.57
$7.19
$52.36
$10.06
$17.05
Up to 3 ccf
Water
(per 1 Unit)
20 units @
$4.40
(all ccf)
9 units @
$2.10
(3-12 ccf)
9 units @
$3.25
(13-25 ccf)
8 units
@ $7.90
(0-8 ccf)
12 units
@ $9.88
(9 + ccf)
4 units @
$6.50
(1-4 ccf)
12 units
@ $8.50
(5-16 ccf)
4 units @
$9.50
(16 + ccf)
3 units @
$4.00
(1-3 ccf)
5 units @
$7.00
(4-10 ccf)
10 units
@$9.50
(11-50 ccf)
10 units
@ $2.72
(1-10 ccf)
10 units
@ $3.36
(11- 20
ccf)
18 units
@ $3.42
(1-18 ccf)
2 units @
$3.76
(18-36 ccf)
5 units @
$2.00
(1-5 ccf)
5 units @
$3.75
(6-10 ccf)
10 units
@ $6.00
(11-20
ccf)
12 units
@ $3.34
(0-12 ccf)
8 units @
$3.53
(13-20
ccf)
14 units @
$2.13 (3-20
ccf)
3 units @
$2.84 (20-39
ccf)
Other
Charges
$0.00
$2.50 (3)
5% Tax
$0.00
$0.00
$0.00
$20.33 (2)
$0.00
$0.00
$0.00
Sample
Monthly Bill
(20 units
of water)
$88.00
$68.65
$199.25
$191.50
$166.18
$93.37
$96.60
$141.11
$78.38
$55.39
(1) Price per unit for Dam retrofit.
(2) Lopez Charge.
(3) Nacimiento
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Sewer rates are compared in the table below:
Table 3-33: Single-Family Sewer Rates
Rate/Fee Paso Robles (1) Atascadero Morro Bay Pismo Beach Arroyo Grande (2) Grover Beach San Luis Obispo (2) Flat
Monthly
Rate
$78.00
$20.18
$62.50
$63.53
$17.26
$24.78
$8.32
Note: (1) based on a $7.80 per unit use @ 10 ccf (2) additional use rate may apply based on amount of water used.
Because the City still has large potential before built-out, it has the opportunities to recover
impact fees in a growing community. Other programs defined by the City will require the
annexed sites to cover their full costs, including one-time capital projects as well as long-term
maintenance, repair and replacement needs. Several of these programs have been discussed
and describe how the SOI/Annexation areas would comply with these requirements.
The properties in the SOI areas do not presently receive public services for which a fee is paid
(such as water deliveries, wastewater service or storm drainage management). These services
in particular are not available in the SOI areas. As these areas are largely undeveloped at this
time, the impact of new services will be fees for those services. There is no evidence suggesting
that the annexation of these areas by San Luis Obispo will result in unreasonable fees for these
services as properties annex and develop within the City. It is expected that fees for the SOI
areas will be in line with citywide fees for such services.
The City and the County will work together to ensure that the cost of services for the
jurisdictions is equitable. The MOA will be used to further define this relationship. As stated
above the City has specific policies that would require the equitable sharing of the services
costs for Sphere of Influence areas.
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WRITTEN DETERMINATIONS
The following written determinations are based on the information contained in the above
section regarding Financial Constraints and Opportunities:
1. The City prepares a biannual budget with a mid-year update, and strives to use the best
practices in managing their financial resources. This is documented by the City receiving an
award from the California Society of Municipal Finance Officers for merit in Excellence in
Operating Budgeting and Capital Budgeting as far back as 2007-09. Since 2007 the City has
also received awards for Excellence in Public Communications, and Budget Innovations.
The award recognizes meritorious achievement in budgeting and reporting which reflects a
highly professional budget document and the underlying budgeting process through which
the budget is implemented. The City continues to follow the budgeting and strategic
planning process.
2. The City conducts bi-annual budget and goal setting workshops that allow the public to
participate in fiscal management that is integrated with long range planning.
3. The City has in place a variety of capital improvement plans, development impact fees, and
developer-required mitigation in the form of infrastructure improvements required from new
projects and similar programs to monitor public service needs of new development. It is
reasonable to conclude that the City endeavors to avoid long-term City obligations for the
capital improvements or maintenance of new development projects, such as those that
would occur in the SOI areas.
4. The City has in place financial regulations and policies that are implemented through
ordinances and resolutions. This is important because the manner of maintaining public
infrastructure and maintenance services is documented and available for public inspection
and scrutiny.
5. The likely fiscal benefits to the City from the proposed SOI areas could include modest
levels of property tax collections from residential land development, transient occupancy
tax revenues from new visitor-serving land uses, and sales tax from commercial properties.
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6. Likely fiscal costs to the City would typically include public maintenance of infrastructure
completed for the new projects in the SOI. Possible programs to minimize and off-set public
maintenance costs include private maintenance through homeowner’s associations, as well
as public maintenance through a JPA or utility district established.
7. There are no apparent short- or long-term fiscal constraints limiting the City of San Luis
Obispo’s ability to serve the suggested properties within the SOI. Further study at the time of
annexation should be completed.
8. The City has in place financial policies that provide a structure for responsible decision-
making.
10. Rates and fees for services are established using the City’s policy and procedures and
special studies as the need arises.
11. The City completed fee studies in 2013 and 2009 that identified the cost of services, the
subsidy a service received from the City, which resulted in establishing new fees for
selected City permit applications, water and wastewater services.
12. The City uses the budget cycle to consider updating the fees and rates schedule that is
implemented on an on-going basis.
13. Development impacts are used to offset the costs of building infrastructure to serve new
development. New development within the SOI will be required to pay the associated costs
of infrastructure and services.
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3.5 STATUS OF, AND OPPORTUNITY FOR, SHARED FACILITIES
Purpose: To identify the opportunities for jurisdictions to share facilities and
resources creating a more efficient service delivery system.
In the case of annexing new lands into a City, LAFCO can evaluate whether services or facilities
can be provided in a more efficient manner if the City, County, District, and/or State are
cooperatively working to construct and maintain facilities. In some cases, it may be possible to
establish a cooperative approach to facility planning by encouraging the City, County and State
to work cooperatively in such efforts.
The annexation of the SOI study areas to the City may lead to shared roadway infrastructure
with the County and the State. The SOI area includes opportunities to created shared facilities
such as:
Roadway connections
Coordinated open space preservation
Linkages between City and County recreational trails
Preservation and enhancement of Agricultural Lands
In the case of roadways and creek trails, the opportunity to coordinate connections between
collector and arterial roadways will enhance regional traffic patterns, and will aid in emergency
response times. The County has, on occasion, collected impact fees for a City that is affected
by a project in the unincorporated areas. This type of coordination can lead to a reduction of
impacts and a more positive solution to the problem of development on the City’s fringe. Roads
that may involve the City, County and State involvement include Highways 101, 1, and 227.
Other important City/County roadways would include Los Osos Valley Road, Foothill Blvd, Tank
Farm Road, O’Connor Way, Buckley Road, and South Higuera.
The recreational aspects of trail connections, tied into an open space and equestrian trails, offer
opportunities for the City and County to join their recreational resources not only to the benefit of
the City residents, but for the general public of the County as well. Coordination of open space
corridors that cross over the proposed City-County limit lines would enhance the viability of
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habitat from the area and preserve important habitat for generations to come.
Currently, there is no duplication of existing or planned facilities in the SOI study areas. The City
would assume those services provided by the County in the SOI study areas as they are
annexed and developed. These do not constitute (and would not in the future) duplication of
services in the SOI areas, rather a transfer of services.
The City works with the County in maintaining both the Whale Rock and Salinas Reservoirs,
which are the main water supply for the City. The Whale Rock Commission operates and
maintains these facilities and receives payment from the City for providing such ser vices. The
City pays a proportional amount based on how much water the City is allocated (55%). The City
also pays for 100% of costs to pump the water from Whale Rock to their water treatment facility.
The City pays for the total operational and maintenance costs of the Salinas Reservoir and to
transport the water to the City’s water treatment facility.
The City also works cooperatively with the State Corrections Department in providing water from
the Whale Rock Reservoir to the California Men’s Colony. These relationships are cooperative
and help each agency provide public services in a more efficient manner. The City also works
cooperatively and maintains working relationships with the following agencies:
CAL Fire/SLO County Fire through reciprocal Automatic Aid Agreement and all
neighboring fire agencies through the San Luis Obispo Operational Area Fire and rescue
Mutual Aid Operational Agreement.
Regional Water Quality Control Board regarding wastewater discharge
California Department of Fish and Game to protect wildlife and environmental
resources.
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WRITTEN DETERMINATIONS
The following written determinations are based on the information contained in the above
section regarding Opportunities for Shared Facilities:
1. The annexation of SOI study areas to San Luis Obispo may lead to shared infrastructure
with the State and County if cooperative agreements can be worked out. The potential to
create shared relationships for providing some services may be appropriate when providing
certain services.
2. At present, the distinction between City and County services in the SOI study areas is clear.
The City would assume those services provided by the County in the SOI study areas if they
are annexed and developed. These are not now, and would not be in the future, duplication
of services in the SOI areas.
3. The City works cooperatively with a variety of State and Federal Agencies to facilitate
improvements that benefit the City and protect residents and visitors.
4. There may be opportunities for the City and County to work out cooperative service
agreements for the areas proposed in the SOI (i.e. fire protection, police services, flood
management, road maintenance and improvements, and recreation) because a variety of
cost-sharing programs could be pursued that might be cost effective to the City and the
County.
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3.6 ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS
INCLUDING GOVERNMENTAL STRUCTURE AND OPERATIONAL
EFFICIENCIES
Purpose: To evaluate the accessibility and levels of public participation associated
with the agency’s decision-making and management processes.
The governing body of the City of San Luis Obispo is the City Council that is elected in
compliance with California Election Laws. The City complies with the Brown Act Open-Meeting
Law and provides the public with ample opportunities to obtain information about City issues,
including website and phone access. The City‘s website contains a wealth of information about
all of the City’s Departments and services. Several newsletters are produced to inform the
public of current events, services, utilities information, sales tax and activities in the community.
The City supports directly or participates in local business groups and community promotion to
the visitor industry (Conference and Visitors Bureau and Chamber of Commerce).
The City Council holds regular meetings at 7:00 p.m. on the first and third Tuesdays of each
month in the City Hall Council Chambers, at 990 Palm Street. Other meetings or study sessions
are held as needed. Agendas are posted consistent with the Brown Act. A public comment
period is scheduled at the beginning of each meeting for citizens to comment on City issues not
on the agenda. All Council meetings are televised live and videotaped for later playback.
The City provides a high level of service to its residents. The City’s budgeting process is based
on a two-year cycle that encourages full participation by the public, advisory bodies, Department
Staff and Management. Supplemental budget updates are provided as needed.
The City’s organizational structure is shown in the chart found on the next page. It should be
noted that the City has a number of advisory bodies that provide the council with a variety of
recommendations on a range of topics. These bodies consist of citizens and are staffed by the
relevant department:
Bicycle Advisory Committee
Cultural Heritage Committee
Housing Authority
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Human Relations Commission
Mass Transportation Committee
Parks and Recreation Commission
Personnel Board
Planning Commission
Promotional Coordinating Committee
Tree Committee
Administrative Hearing Officer
Architectural Review Commission
Technical and Special Purpose Advisory Bodies
Overall, the City is well-organized and equipped administratively to serve the recommended
Sphere of Influence. The City accomplishes many goals and implements a variety of initiatives.
It is apparent that City manages it resources in an efficient manner and makes every effort to
carefully allocate its revenues.
The City’s Budget process is discussed in the Financial Constraints and Opportunities section of
this report. The organizational chart shows a structure that is straightforward and efficient. It
does not include complex decision making loops that would delay decisions.
San Luis Obispo does maintain various customer-oriented programs, including a mission
statement for each City department, customer satisfaction programs, regular in-house safety
training and management, and similar programs designed to enhance the experience for the
City customer. The City maintains a comprehensive Work Programs and Projects Inventory that
describes the projects and program being completed by each City Department. This document
is regularly updated and includes a description of the program/project, key tasks to be
completed, start date and end date, and a status or comments section.
It is assumed that public participation in the planning and development process for the SOI
territories would be about the same for either City or County development projects. Both the
City and the County have well developed Citizen Participation programs that enable access to
information and allow for citizen involvement. The City and County have a track record of
extensive outreach to the community in making land use and other decisions.
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Organization Chart
Figure 3-29
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WRITTEN DETERMINATIONS
The following written determinations are based on the information contained in the above
section regarding Local Accountability and Governance:
1. The City has historically made broad efforts to maintain a public dialogue in the community.
The City’s outreach program includes providing information regarding current issues of
significance to the community through a variety of media. In particular, the City produces a
newsletter that is distributed quarterly and various other publication throughout the year, has
conducted workshops, and public town hall meetings to address matters for the broadest
public input possible. The City conducts goal-setting meetings to establish community
priorities.
2. The City has maintained relationships with local news media, providing information and/or
interviews as requested. Locally elected and appointed officials pride themselves on being
available to their constituencies.
3. The City conducts budget reviews and goal-setting workshops that are designed to keep the
public informed regarding budgetary situations. It is possible for the public to participate in
the budget hearing process. Annual audits are completed and made available to the public
upon request.
4. The City is well-organized, and is administratively capable of managing any annexations
that may be proposed for the Sphere of Influence.
5. The City evaluates the services provided to residents and services that may need to be
upgraded or started.
6. Long-term effects of individual annexations and development will be analyzed on a case by
case basis when site-specific annexations are presented. A cost-benefit analysis should
evaluate effects on both the City and County when these are prepared and submitted for
review.
7. The City has recently updated many of its service plans, including the Sewer System
Management Plan, Housing Element of the General Plan, and fee and rate structures.
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8. Because development relies on infrastructure available from the City, it is logical that the
City assume the lead in planning for these SOI areas, consistent with the General Plan. It is
reasonable to conclude that public services can be provided by the City of San Luis Obispo,
and that those services will meet or exceed present levels of service provided in the County.
9. Public participation in the development review process may be improved if the City and
County adopt a cooperative effort. This cooperation could result in heightened public
involvement at both the City and County levels.
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3.7 OTHER MATTERS
This factor allows LAFCO to discuss other issues and topics that may need to be addressed or
focused on in the MSR.
Outside User Agreements:
When a city or special district provides a service, by contract or agreement, outside of its
existing boundaries (i.e. city limits or special district service boundary) it is referred to as an “out
of agency contract for services” or Outside User Agreement. Government Code §56133 states
service extensions outside jurisdictional boundaries require LAFCO approval.
The City of San Luis Obispo has a number of agreements to provide water and sewer services
outside of its City limits. Recently LAFCO approved such as agreement for Fiero Lane Mutual
Water Company to be served by the City as an interim service with a future application to be
annexed. The Higuera Street Apartments are another example where an Outside User
Agreement tool could be used to provide water services to a failing private system next to the
City’s existing infrastructure.
LAFCO may authorize service extensions outside jurisdictional boundaries:
Within agency’s SOI, in anticipation of annexation
Outside agency’s SOI, in order to address an existing or impending public health and
safety threat.
Senate Bill 88 Water Measurement, Reporting and Consolidation Regulation:
The extended drought has highlighted the need for current, accurate information on how much
water is required to serve right holders in the various watersheds throughout the State. Even
during years with more normal precipitation, rainfall and snow accumulation patterns vary widely
across the State. Water supply may be adequate in one region while a critical water shortage
can occur in another region.
Accurate data on water diversion and use is needed on a timely basis in order to evaluate water
supply conditions in each watershed, how far water supplies can be expected to stretch, and
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whether there is water available for diversions. Unfortunately, the historic reporting standard
does not meet current needs. The new law regulations are expected to address this problem.
The State Water Board is the agency with primary responsibility for the administration and
regulation of water rights in California. The State Water Board allocates surface water through a
system of permits, licenses, and registrations. These allow the right holder to divert water for
reasonable beneficial use. The State Water Board also maintains records of water use under
riparian and pre-1914 claims of right.
Improved measurement and reporting of water rights as required by Senate Bill 88 will allow the
State Water Board and all water users to more effectively:
Increase understanding of water use through more accurate measurement;
Improve water rights administration and transparency of records;
Provide more accurate data on available water supplies;
Improve forecasting of water demand;
Assure compliance with the quantity and season limitations of existing water rights;
Protect senior rights in accordance with priorities; and
Provide efficient management and use of water during times of shortage.
The bill that would grant the state authority to force water systems to consolidate to serve
disadvantaged communities where a steady supply of clean drinking water is not available.
These disadvantaged communities would be located in an unincorporated area, or served by a
mutual water company, to consolidate to deliver safe drinking water to disadvantaged
communities. This provision would apply where a water system within a disadvantaged
community consistently fails to provide a supply of safe drinking water. In such cases, the Board
may order consolidation with a public water system (the “receiving water system”). The
consolidation may be physical or operational. The Board could also order the extension of
service (Outside User Agreement) to such a community, so long as the extension is an interim
extension in preparation for consolidation. The provision grants authority to the Board to set
timelines and performance measures to complete such consolidations.
The State Water Board has been is discussion with LAFCO and the City regarding the Higuera
Street Apartments located just outside of the City limits but within the Sphere of Influence. If
agreement from the property owner and City can be reached the City could provide needed
water serves to the apartment complex potentially under this regulation, or in any event by
LAFCO approval of an outside user agreement.
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REFERENCES
City of San Luis Obispo Budget FY 2015/16
City of San Luis Obispo Water Resources Status Report, 2014
City of San Luis Obispo General Plan Update, 2014
San Luis Obispo Council of Governments Regional Transportation Planning Agency,
Regional Transportation Plan, 2014.
City of San Luis Obispo Capital Improvement Project 2013-2015, 2013
City of San Luis Obispo Annual Report of General Plan, 2013
SLO Action Plan for Healthy Communities Report 2010 & 2013
SLOCOG Regional Housing Needs Allocation, 2013
San Luis Obispo Police Department Annual Report, 2011
SLO County Resource Management System Biennial Report, 2011
SLOCOG AECOM Population & Employment Forecast, 2011
City of San Luis Obispo Urban Water Management Plan, 2010
SLO County Conservation, Open Space Element, 2010
California Department of Finance E-4 Report, 2010
California Department of Finance E-4 Report, 2010
Orcutt Specific Plan, 2010
City of San Luis Obispo Fee Schedule, 2010
City of San Luis Obispo Water and Sewer Element, 2010
Orcutt Specific Plan Final EIR, 2009
City of San Luis Obispo Staff Report for Water & Wastewater Rate Study, 2009
City of San Luis Obispo Sewer System Management Plan, 2009
San Luis Obispo County Tourism Analysis Report, 2008
San Luis Obispo LAFCO, Sphere of Influence Study, 2006.
SLO County San Luis Bay Inland Area Plans, revised 2003
City of San Luis Obispo, Official Website, www.ci.san-luis-obispo.ca.us/.
County of San Luis Obispo, Official Website, www.slocounty.ca.gov.
San Luis Obispo Council of Governments, Official Website, www.slocog.org.
California Attorney General, Official Website, www.ag.ca.gov.
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NOTICE OF EXEMPTION
TO: Office of Planning and Research FROM: San Luis Obispo LAFCO
1400 Tenth Street, Room 121 1042 Pacific Street
Sacramento, CA 95814 San Luis Obispo, CA 93401
Tommy Gong, County Clerk CONTACT: David Church, AICP, Executive Officer
County of San Luis Obispo (805) 781-5795
County Government Center
San Luis Obispo, CA 93401
PROJECT TITLE: CITY OF SAN LUIS OBISPO SPHERE OF INFLUENCE UPDATE AND MUNICIPAL
SERVICE REVIEW
Project Location and Description. The City of San Luis Obispo’s Sphere of Influence is not recommended to
change from the existing adopted Sphere Boundary. The City’s existing Sphere of Influence is approximately
5,930+/- acres beyond the City limits. The Sphere of Influence is a 20-year planning boundary that indicates
what areas might be annexed and served by the jurisdiction in the future. These areas are recommended to
remain in the SOI in part because the City envisions future growth based on its General Plan update in 2015.
The City is in various stages of preparing Specific Plans and Environmental Impact Reports for some of the
study areas.
Public Agency Approving Project. The Local Agency Formation Commission (LAFCO) of San Luis Obispo
County will be conducted a public hearing on this item in August 18, 2016 at 9:00 a.m. in the Board of
Supervisors Chambers in San Luis Obispo at the County Government Center.
Environmental Determination. The purpose of the environmental review process is to provide information
about the environmental effects of the actions and decisions made by LAFCO and to comply with the
California Environmental Quality Act (CEQA). In this case, it has been determined with certainty that there is
no possibility that the project may have a significant environmental effect on the environment and therefore it is
found to be exempt from CEQA pursuant to section 15061(b)(3) of the State Guidelines. The Local Agency
Formation Commission will file this Notice of Exemption upon approval of the Sphere of Influence Update.
Reasons for Exemption. A Sphere of Influence is a plan for probable, physical boundary and service areas
of a local agency or jurisdiction. As such, it does not give property inside the Sphere boundary any more
development rights than what already exist. The Sphere of Influence Boundary is a long-range planning tool
that assists LAFCO in making decisions about a jurisdiction’s future boundary. The Sphere indicates areas
that might be served by the City. It is unknown if an area will ever be annexed to the City. Also, it is of ten
uncertain what type of precise land use is going to be proposed for a specific area. In the case of San Luis
Obispo’s Sphere of Influence Update, the boundary will not change nor has the setting changed significantly
with regard to the SOI.
The study of impacts associated with the Sphere of Influence is often speculative since it is unclear what type
of project might be proposed or if an area will even be annexed in the future. The City or County studies
impacts comprehensively when a project-specific environmental review is completed. The City is currently
evaluating and preparing an Environmental Impact Report for various study areas.
________________________________ __________________________
David Church, AICP, Executive Officer Date
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Draft Memorandum of Agreement 1 City of San Luis Obispo and County of San Luis Obispo
April 26, 2016
DRAFT
MEMORANDUM OF AGREEMENT
BETWEEN THE CITY OF SAN LUIS OBISPO AND
THE COUNTY OF SAN LUIS OBISPO
REGARDING THE CITY’S SPHERE OF INFLUENCE
This Agreement between the City of San Luis Obispo (hereafter “City”) and the County
San Luis Obispo County (hereafter “County”) is entered into by the City on this day of
, 20052016, and by the County on this _____ day of _______________, 20052016.
WITNESSETH
WHEREAS, the Cortese/Knox/Hertzberg Act of 2000 (“the Act”) requires the Local
Agency Formation Commission (LAFCO) to update the Spheres of Influence for all applicable
jurisdictions in the County every five years, as needed; and
WHEREAS, a Sphere of Influence is defined by the California Government Code 56076
as a plan for the probable physical boundaries and service area of a local agency; and
WHEREAS, pursuant to Government Code 56425 the Sphere of Influence has been
identified by the County of San Luis Obispo and the City of San Luis Obispo as shown in
Exhibit A; and
WHEREAS, the Act further requires that a Municipal Service Review be completed prior
to or, in conjunction with, the update of a Sphere of Influence in accordance with Section 56430
of the California Government Code as a means of identifying and evaluating public services
provided by the City of San Luis Obispo and changes to the City’s Sphere of Influence; and
WHEREAS, a Municipal Service Review as stated above has been completed and shall
be considered by LAFCO when establishing the City’s Sphere of Influence; and
WHEREAS, the City and County have reached agreement regarding the boundaries
(Exhibit A), development standards, and zoning requirements (Exhibit B) of the Sphere of
Influence to ensure the orderly and logical development of these areas; and
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Draft Memorandum of Agreement 2 City of San Luis Obispo and County of San Luis Obispo
April 26, 2016
WHEREAS, the City’s General Plan provides a clear policy base for growth and
development in the Sphere of Influence areas and defines policies and programs that the City
will implement to ensure the preservation of the agricultural land, open space and the rural
character of San Luis Obispo; and
WHEREAS, the County’s General Plan goals in Framework for Planning and the San
Luis Obispo Area Plan call for Community Separators to provide for a community’s distinctive
identity and preserve the rural character of the areas between and on the fringes of communities
and cities; and
WHEREAS, the City and County intend to cooperate regarding growth and development
on the urban fringe of the City and in the referral area shown in Exhibit C; and
WHEREAS, LAFCO is required by Government Code 56425 (b) to give great weight to
this agreement in making the final determination regarding the City’s Sphere of Influence.
NOW, THEREFORE, be it resolved that the parties agree as follows:
1. The Sphere of Influence boundary contained in Exhibit A provides for the orderly and
logical growth for the City of San Luis Obispo and represents a potential 20-year growth
boundary (20052016-20252036) based on available information.
2. The development standards and zoning requirements contained in Exhibit B provide a
framework for completing updates to the General Plans of both the City and the County
for the areas in the Sphere of Influence.
3. The development standards and zoning requirements contained in Exhibit B are intended
to provide the City and the County with the basis for developing specific land use
policies and standards for the areas in the City of San Luis Obispo Sphere of Influence
and do not supersede or limit the planning or environmental review process of either
jurisdiction.
4. The City’s and County’s General Plan policies including those found in Exhibits D and E
shall be used to guide the logical and orderly development of these Sphere Areas while
preserving agricultural and open space lands.
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Draft Memorandum of Agreement 3 City of San Luis Obispo and County of San Luis Obispo
April 26, 2016
_____________________________
Mayor, City of San Luis Obispo
APPROVED AS TO FORM AND LEGAL EFFECT:
____________________________
City Attorney
Dated:_______________________
ATTEST:
____________________________
City Clerk
Dated:_______________________
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Draft Memorandum of Agreement 4 City of San Luis Obispo and County of San Luis Obispo
April 26, 2016
______________________________
ChairmanChairperson, Board of Supervisors
County of San Luis Obispo
APPROVED AS TO FORM AND LEGAL EFFECT:
______________________________
County Counsel
Dated:________________________
ATTEST:
____________________________
County Clerk
Dated:_______________________
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Draft Memorandum of Agreement 5 City of San Luis Obispo and County of San Luis Obispo
April 26, 2016
EXHIBIT A
SPHERE OF INFLUENCE BOUNDARY MAP
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Draft Memorandum of Agreement 6 City of San Luis Obispo and County of San Luis Obispo
April 26, 2016
EXHIBIT B
DEVELOPMENT STANDARDS AND ZONING REQUIREMENTS
The following development standards and zoning requirements are agreed to and shall be used
by the City of San Luis Obispo and the County of San Luis Obispo to develop specific land use
policies and standards within the proposed Sphere of Influence as shown in Exhibit A and to
update their General Plans.
1. Intent. It is the intent of the County and the City to work cooperatively towards the
goal of developing the agreed upon Sphere of Influence (as shown in Exhibit A) in an
orderly and logical manner consistent with the Cortese/Knox/Hertzberg Act, the City
and County General Plans, the California Environmental Quality Act and any other
applicable laws and regulations.
2. Impact Mitigation. In evaluating any development, the agency considering approval
(City or County) should rely solely on its ability to provide the required services to
that development. The City and the County shall not presume any services will be
provided by the other agency without documenting that such services will be
provided.
Development/mitigation fees needed to offset the impacts from projects approved by
either jurisdiction in the Referral Area (Exhibit C) shall be collected and distributed
in a fair and equitable manner. These fees shall be paid to the City and/or the County
in proportion to the location and degree of project impacts; however the total fees
paid shall not exceed the cost to mitigate the specific project impact. Mitigation to
offset significant impacts to fire, law enforcement, emergency medical services, water
and wastewater treatment services, roads and streets, other public services, and
housing, shall be incorporated into the conditions of approval for projects on a case
by case basis. Documentation shall be provided that identifies the project’s fiscal,
infrastructure, housing, and services impacts to both the City and the County and
shall be considered as part of the development review process. The documentation
shall be used to prepare conditions of approval and to allocate impact fees where
allowable and as appropriate.
3. Regional Circulation. The City and County shall work together to improve regional
circulation such that future growth should provide for an improved circulation system
that would promote maximum connectivity between different parts of the City by
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Draft Memorandum of Agreement 7 City of San Luis Obispo and County of San Luis Obispo
April 26, 2016
planning for and/or constructing new roads, walkways, bike paths, transit facilities,
or other means based on Vehicle Miles Travel (VMT) data; cost sharing agreements
associated with the future development of City’s Capital Improvement Projects
(CIPs) that have regional circulation benefits. These regional circulation
improvements may include, but are not limited to, improvements to Highway 227,
Prado Road overcrossing, widening of Tank Farm Road, the LOVR traffic relief
project, etc. Associated fiscal impacts and appropriate mitigation measures for
development on the fringe shall be given special attention.
3.4. Fire and Law Enforcement Services. Costs associated with fire and emergency
response services shall be given special attention. The County and City Planning
Staff shall meet with the City’s Police and Fire Chief and the County Sheriff and Fire
Department Chief regarding development in the unincorporated areas that would
impact the fire and emergency response service levels including those services to
open space and trails. The purpose of this meeting is to identify and discuss fiscal and
resource impacts of development related to fire and emergency services, service
delivery impacts of development on the fringe, and appropriate mitigation measures.
4.5. Interagency Cooperation. The City and the County shall work cooperatively to plan
for future land uses and public services and facilities to improve and maintain area
circulation connections, and to preserve agricultural land and open space. The County
and City will consider the creation and implementation of various assessment and
financing mechanisms for the construction and maintenance of public improvements,
such as roads, utilities, recreation and trail improvements, parks and open space, and
similar improvements that could serve visitors and residents of the City and the
County. Discretionary development projects and General Plan Amendments within
each agency’s jurisdiction shall be referred to the other for review and comment prior
to action on a development proposal. The County shall seek the City’s comments
regarding these projects in the referral area map found in the County’s San Luis
Obispo Area Plan (Exhibit C). The City shall seek the County’s comments regarding
projects that affect the unincorporated area found in Exhibit C. Face to face meetings
are encouraged for any high-level projects to ensure the goals of each agency are
being met. When a discretionary project application is accepted for processing, it
shall be referred to the following contact person(s) for early review and comment:
Deputy Director, Deputy Director,
Permitting & Policies and Programs Long Range Planning
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Draft Memorandum of Agreement 8 City of San Luis Obispo and County of San Luis Obispo
April 26, 2016
County of San Luis Obispo City of San Luis Obispo
Department of Planning and Building Community Development Department
County Government Center 990 Palm Street
San Luis Obispo, CA 93408 San Luis Obispo, CA 93401-3249
This provision shall not supersede other methods of commenting or providing
feedback regarding a proposal or project.
5.6. Sphere of Influence. The County shall, to the extent legally possible, limit
development within the City’s Sphere of Influence (SOI) to those uses allowed by the
County General Plan. The County shall give the great weight to the City’s General
Plan policies when reviewing development in the City's Sphere of Influence.
a. City Review. For projects submitted to the County for consideration, as part of
the pre-application meetings and as part of processing the application, the County
shall request written documentation that indicates the City Council’s position
regarding annexation into the City. This documentation shall be provided by the
City in a timely manner that does not delay the County’s processing of the land
use application. During this time, the County shall continue to process the land
use application as required under the law.
b. Development Review Coordination. Projects proposed Proposed larger regional
projects within the referral area shown in Exhibit C, and subject to an Initial
Study under CEQA, shall cause on a case-by-case basis the City and County
representatives to request a meeting prior to completion of the Initial Study. The
purpose would be to discuss the City’s and County’s General Plan policies wit h
regard to the project and to identify any key issues that may need special attention
during the CEQA process.
6.7. Agriculture and Open Space. The City and the County shall work together to
preserve the agricultural and open space resources in the SOI area using the City’s
Greenbelt and Open Space policies, the County’s Agriculture and Open Space
Policies including the transfer development credit program or other programs as
appropriate. The criteria contained in the County’s Agriculture and Open Space
Element, particularly Agricultural Policies 17 and 24 (Exhibit D), and the pertinent
policies in the City’s General Plan (Exhibit E), shall be addressed in the preparation
of any land use entitlements and Environmental Impact Reports. Impacts that are not
deemed substantial or do not create a significant change to the protection of
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Draft Memorandum of Agreement 9 City of San Luis Obispo and County of San Luis Obispo
April 26, 2016
agricultural and/or open space may not need to be addressed in the EIR.
7.8. General Plan Amendment. The City intends to complete environmental review, pre-
zoning, pre-annexation, and any necessary pre-general plan amendment activities
prior to or concurrent with an annexation proposal being processed by LAFCO. The
County intends to complete any necessary amendments to its General Plan in the San
Luis Obispo Area Plan to reflect the annexation of territory to the City of San Luis
Obispo.
8.9. Zoning Requirements/Specific Plan. Prior to annexation, the City shall complete
pre-zoning and environmental review consistent with its General Plan. CEQA review
shall include analysis of issues, including but not limited to the following: a reliable
and adequate water supply, sewer capacity, public services, cumulative traffic
circulation, agricultural buffers, jobs-housing balance, use of transfer development
credits, and affordable housing opportunities.
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Packet Pg. 366 Attachment: b - Draft SOI Update and MSR 2016 (1446 : City's Sphere of Influence MOA)
Draft Memorandum of Agreement 10 City of San Luis Obispo and County of San Luis Obispo
April 26, 2016
EXHIBIT C
SAN LUIS OBISPO AREA PLAN - PROJECT REFERRAL MAP
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Packet Pg. 367 Attachment: b - Draft SOI Update and MSR 2016 (1446 : City's Sphere of Influence MOA)
Draft Memorandum of Agreement 11 City of San Luis Obispo and County of San Luis Obispo
April 26, 2016
EXHIBIT D
COUNTY’S GROWTH POLICIES: AGRICULTURAL-OPEN SPACE ELEMENT;
CONSERVATION OPEN SPACE ELEMENT; & ENERGYWISE PLAN
Policy #17: Agricultural Buffers
Policy #24: Conversion of Agricultural Land
Policy #XX:
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Packet Pg. 368 Attachment: b - Draft SOI Update and MSR 2016 (1446 : City's Sphere of Influence MOA)
Draft Memorandum of Agreement 12 City of San Luis Obispo and County of San Luis Obispo
April 26, 2016
EXHIBIT E
CITY’S GROWTH MANAGEMENT POLICIES
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Packet Pg. 369 Attachment: b - Draft SOI Update and MSR 2016 (1446 : City's Sphere of Influence MOA)
Appendix C LAFCO Actions City of San Luis Obispo 1963 - Present
LAFCO Actions, City of San Luis Obispo 1963-2016
Date
Action
LAFCO
File No
Proposal
Acres
10/12/10 Annexation 3-R-10 Anx #78 to SLO (Farmhouse Lane) Apv 4/16/15 0.74
11/03/10 Annexation 4-R-10 Anx #79 to SLO (Orcutt Area) Apv 04/21/11 230.85
06/13/05 Annexation 7-R-05 Anx #74 to SLO (Madonna/Gap) apv 01/21/10 31
05/02/07 Annexation 2-R-07 Anx #77 to SLO (Airport/Margarita Areas) - approved 620
12/08/05 SOI/MSR 1-S-05 SOI Update/MSR for the City of San Luis Obispo N/A
07/27/04 Annexation 7-R-04 Anx #71 - McBride Approved 26
07/01/04 Annexation 6-R-04 Anx #70 - Bishop Knoll Estates-void 9.77
03/05/04 Annexation 2-R-04 Anx #69 - Dalidio - 2004 - void 131
07/17/02 Annexation 3-R-02 Anx #68 - Irish Hills Open Space-Approved 197.09
08/20/01 Annexation 8-R-01 Anx #67 - Cannon Corporate Center-Approved 7.1
06/06/01 Annexation 7-R-01 Anx #66 - Creekside-Approved 6
02/23/01 Annexation 2-R-01 Anx #65 - Volny-Approved 15
11/16/00 Annexation 14-R-00 Anx #64 - Aero Vista-Approved 10.07
06/14/00 Annexation 7-R-00 Anx #63 - Acacia Creek 33
07/18/00 Annexation 8-R-00 Anx #62 - Froom Ranch/DeVaul Ranch South 68
03/17/00 Annexation 6-R-00 Anx #61 - PacBell 4.3
03/17/00 Annexation 5-R-00 Anx #60 - Farm Supply 4.7
02/15/00 Annexation 3-R-00 Anx #59 - A&R Welding
01/18/00 Annexation 1-R-00 Anx #58 - Area A Bishop & Area B Maino 137
12/20/99 Annexation 9-R-99 Anx #57 - NW Santa Margarita Area 143
04/19/99 Annexation 4-R-99 Anx #56 - Airport Business Park-terminated 10.07
03/22/99 Annexation 1-R-99 Anx #55 - Gateway Center-terminated
08/12/98 Annexation 7-R-98 Anx #54 - DeVaul 222
07/20/98 Annexation 6-R-98 Anx #53 - Fuller Road 9
07/20/98 Annexation 5-R-98 Anx #52 - Aero Drive 9
05/06/98 Annexation 3-R-98 Anx #51 - Bolduan 0.19
05/09/97 Annexation 6-R-97 Anx #50 - PG&E 13.1
05/06/97 Annexation 5-R-97 Anx #49 - Prefumo Creek homes 384
04/04/97 Annexation 4-R-97 Anx #48 -Touchstone-terminated 10
01/22/97 Annexation 2-R-97 Anx #47 - Spice Hunter 14.4
12/18/96 Annexation 9-R-96 Anx #46 - Ernie Ball 13.46
04/04/96 Annexation 4-R-96 Anx #45 - El Capitan 3.85
01/25/96 Annexation 2-R-96 Anx #44 - Portion of Suburban Rd. 1.42
05/30/95 Annexation 5-R-95 Anx #43 - Goldenrod 15.52
04/12/94 Annexation 4-R-94 Anx #43 - Froom Ranch-terminated 57
12/20/93 Annexation 10-R-93 Anx #42 - Airport Area Anx-terminated 1,710
09/27/93 Annexation 6-R-93 Anx #41 – Dalidio-terminated 130.4
05/26/93 Annexation 3-R-93 Anx #40 -TK 22.05
07/27/92 Annexation 7-R-92 Stoneridge II Minor Anx 60.0
07/08/92 Annexation 6-R-92 Broad Street Anx 78.06
10/01/88 Annexation 4-R-88 Anx #39 – Dalidio-terminated 187
None Annexation 4-R-86 Anx #38 - So Cal Gas Co-terminated
None Annexation 15-R-85 Anx #37 - SLO Creek Estates 18.68
08/10/84 Annexation 13-R-84 Anx #36 - Orcutt Road #22-terminated 18.1+
04/12/84 Annexation 4-R-84 Anx #35 - Highland/Santa Rosa-terminated 5.5+
06/26/81 Annexation 7-R-81 Anx to SLO - Public streets 1.67
08/29/79 Annexation 12-R-79 Anx - South Higuera Public Housing 2.14
04/14/78 Annexation 10-R-78 Anx - Foothill 26.7+
02/14/78 Annexation 4-R-78 Anx - Ferrini 51
09/10/76 Annexation 14-R-76 Anx – Richards-withdrawn 5.44+
06/16/75 Annexation 7-R-75 Anx - South Street 17.28+
09/21/73 Annexation 10-R-73 Anx - Madonna - LOVR to SLO 1.3
None Annexation 1-R-73 Anx - Oxford to SLO - Southwood Apx 4.5
None Annexation 16-R-72 Anx - Orcutt Road # 1-Approved - 10/05/72
09/11/72 Annexation 19-R-72 Anx - Edna Road #3-void 78
09/20/72 Annexation 20-R-72 Anx - Los Osos Road North - Withdrawn 164
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Packet Pg. 370 Attachment: b - Draft SOI Update and MSR 2016 (1446 : City's Sphere of Influence MOA)
Appendix C LAFCO Actions City of San Luis Obispo 1963 - Present
Date
Action
LAFCO
File No
Proposal
Acres
None Annexation 2-R-72 Anx - South Higuera Street #3 90
None Annexation 5-R-72 Anx - Fuller Road - Withdrawn
None Annexation 10-R-72 Anx portion of proposed Tract 460 Approved 09/21/72 .5
None Annexation 21-R-71 Anx - Danley # 9 - Denied 53.13
None Annexation 10-R-71 Anx - Revised Highland Drive - Approved 04/01/71
11/18/70 Annexation 17-R-70 Anx - SLO Airport & Area - Denied 800
02/11/70 Annexation 3-R-70 Anx - Vista Grande 18.3
05/20/70 Annexation 7-R-70 Anx - No 2 South Higuera 25.8
07/09/70 Annexation 9-R-70 Anx - Prefumo Canyon 103.3
07/09/70 Annexation 10-R-70 Anx - Weigold - Approved 08/20/70 .65
01/05/72 Annexation 10-R-69 Anx-Highland Drive Unkn
11/14/69 Annexation 3-R-69 Edna Road #2 24
01/21/69 Annexation 1-R-68 Anx - Faulstitch 47
11/09/67 Annexation 29-R-67 Anx - Touchstone 18
12/26/67 Annexation 18-R-67 Anx - Broad Street Industrial #2 7.8
05/18/67 Annexation 15-R-67 Anx - Los Osos #2 72
05/18/67 Annexation 11-R-66 Anx - Los Osos Road #1 184
08/20/65 Annexation #22 Anx - Touchstone Unkn
10/29/65 Annexation #20 Anx - Lot 57-Laguna Unkn
02/04/64 Annexation #15 Anx - Lots 90-91 78
11/05/64 Annexation #14 Anx - Rancho Canada de Los Osos & Laguna Unkn
02/06/64 Annexation #2 Anx 3 Calvary Baptist Church 3
None Annexation 30-R-67 Anx - Broad Street Industrial-terminated Unkn
10/06/66 Annexation 10-R-66 Anx - Edna Road #1-denied
1964 Annexation #9 Anx - T.C. Maino-withdrawn
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Packet Pg. 371 Attachment: b - Draft SOI Update and MSR 2016 (1446 : City's Sphere of Influence MOA)
Proposed Changes to SOI/MSR 1 City of San Luis Obispo
ATTACHMENT F
PROPOSED CHANGES TO DOCUMENTS
SPHERE OF INFLUENCE UPDATE
MUNICIPAL SERVICE REVIEW
# Page # Commenter Proposed Change
1 4
LAFCO
Delete Table 2-2 Contents reference. Does not exist.
2 1-11
LAFCO
Replaced the Name Atascadero with San Luis Obispo under
Recommendation.
3 Throughout
the
Document
LAFCO
Remove the word “Draft” in front of Memorandum of
Agreement or MOA since both the City and County approved
the agreement.
4 3-11 LAFCO Revised Urban Water Management Plan summary to include
the recently adopted 2015 UWMP. Delete references to the
2010 UWMP.
5 3-11 LAFCO Revised Table 3-8 Historical & Projected Population Growth.
6 3-15 LAFCO Revised Table 3-12 Building Permits Finialed to Issued and
expand permits from 2006 to 2015. Revised totals.
7 3-16 LAFCO Revised Table 3-13: Future Non-Residential Planning Project
to reflect current list of projects and there status.
8 3-30 LAFCO Revised Determination #4 to update current city population to
45,802.
9 3-34 LAFCO Revised Urban Water Management Plan summary to include
the recently City adopted 2015 UWMP. Delete references to
the City’s 2010 UWMP.
10 3-48 LAFCO Updated Pressure Zone Map Figure 3-8
12.c
Packet Pg. 372 Attachment: c - LAFCO Recommended Changes to the Draft SOI Update and MSR (1446 : City's Sphere of Influence MOA)
Memorandum of Agreement Between the City and the County Regarding the City’s Sphere of Influence
For Council consideration:- Draft MOA- SOI BoundaryRecommendation:Authorize the Mayor to enter into and sign a Memorandum of Agreement (MOA) between the City and the County regarding the Sphere of Influence (SOI) update.
LAFCO members are appointed by the local jurisdictions governing bodies (City Council, independent special districts, Board of Supervisors) and a public representative is appointed by LAFCO.Background:Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (CKH Act) – requires the Local Agency Formation Commission (LAFCO) to update the SOI for all applicable jurisdictions.LAFCO staff began that process with City staff in January 2016.
LAFCO Review- Worked with City and County Staff- Collected data on land use, demographics, and services- Discussed policies and regulatory framework- Held a study session in June 2016LAFCO’s Role:Final decision-making authority over SOI boundaries and annexations. Prepares the SOI and the Municipal Services Review (MSR).
The SOI is generally considered to be a 20-year, long range planning tool, however there is no requirement to annex or deliver services to areas outside of the jurisdiction that are identified in the SOISphere of Influence:“A plan for the probable physical boundaries and service area of a local agency, as determined by the commission” (LAFCO).
Current SOI Boundary:- Adopted in 2006- Approx. 5,930 acres beyond the City limitsProposed SOI Boundary:- No changes- Consistent with the LUCE Update
MSR addresses:- Population growth- Disadvantaged unincorporated communities- Capacity of public facilities services- Fiscal Ability- Shared Facilities- Accountability- Delivery of serviceMunicipal Services Review:The MSR evaluates the capabilities of a jurisdiction to serve existing residents and future development in the SOI.
Memorandum of Agreement:The MOA serves as an opportunity for the City and the County to meet and reach agreement on the SOI boundaries, development standards and zoning requirements for the SOI areas.LAFCO’s Authority:Power to approve or disapprove the City’s SOI boundary, but is required to give “great weight” to an approved MOA when considering and SOI update.
Key MOA Provisions:1. Use other jurisdictions’ service as a mitigation.2. Referral of projects in fringe.3. Growth management policies.4. Fair distribution of mitigation and impact fees.5. Emergency response agencies impacts and fiscal issues.6. Early annexation discussions. 7. Coordination on agricultural and open space land use policies.
Next Steps:Council: Consider Draft SOI update and MOA (Tonight)Board of Supervisors: Consider MOA (Sept. 20, 2016)LAFCO: Consider the environmental review and MOA, then take action on the MSR and SOI update (Fall 2016)
Recommendation:Authorize the Mayor to enter into and sign a Memorandum of Agreement (MOA) between the City and the County regarding the Sphere of Influence (SOI) update.