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HomeMy WebLinkAboutPC 08-09-2017 Agenda PacketCity of San Luis Obispo, Agenda, Planning Commission Any writings or documents provided to a majority of the Planning Commission regarding any item on this agenda will be made available for public inspection in the Community Development, 919 Palm Street, during normal business hours. Agenda Planning Commission Wednesday, August 9, 2017 6:00 p.m. REGULAR MEETING Council Chamber 990 Palm Street San Luis Obispo, CA CALL TO ORDER: Chair Stevenson PLEDGE OF ALLEGIANCE : Chair Stevenson ROLL CALL : Commissioners Kim Bisheff, Scott Mann, Ronald Malak, Nicholas Osterbur, Hemalata Dandekar, Vice-Chair John Fowler, and Chair Charles Stevenson ACCEPTANCE OF AGENDA: Commissioners or staff may modify the order of items. PUBLIC COMMENT: At this time, people may address the Commission about items not on the agenda. Persons wishing to speak should come forward and state their name and address. Comments are limited to three minutes per person. Items raised at this time are generally referred to staff, and, if action by the Commission is necessary, may be scheduled for a future meeting. PUBLIC HEARING ITEMS 1. 175 Venture Drive. SPEC/ER 1318-2015, GENP 1319-2015, SBDV 2042-2015: Review of the Avila Ranch Project and related entitlements, including a Specific Plan Amendment (Airport Area Specific Plan), General Plan Amendment, Rezone, Development Plan/Tentative Tract Map, and certification of a Final Environmental Impact Report that addresses these entitlements. Recommendations will be forwarded to City Council for their consideration; Special Focus Area SP-4; Avila Ranch, LLC, applicant. (John Rickenbach) 2. 175 Venture Drive. OTHR 0455-2017: Review of the Avila Ranch Project Development Agreement, which implements the Avila Ranch Development Plan and related entitlements as evaluated in the Final Environmental Impact Report prepared for the project. Recommendations Planning Commission Agenda Page 2 The City of San Luis Obispo is committed to include the disabled in all of its services, programs , and activities. Please contact the City Clerk or staff liaison prior to the meeting if you require assistance. will be forwarded to the City Council for their consideration; Special Focus Area SP-4; Avila Ranch, LLC, applicant. (John Rickenbach) BUSINESS ITEMS 1. Zoning Regulations Update. The Zoning Regulations Update is focused on implementing the policies and programs of the Land Use and Circulation Elements (LUCE). This will be a standing item on the Planning Commission agenda from June 14, 2017 through completion of the Update of the Zoning Regulations, tentatively scheduled for completion in March, 2018. This will be an opportunity for staff to update the Commission on the status of the Zoning Regulations Update and for the Commission to listen to ongoing public testimony and discuss any such updates as they come forward. As a standing item, sometimes there will be nothing to report; other times staff will give a brief update with limited discussion; and at certain points, such as review of White Papers associated with the Zoning Regulations Update, there will be more substantive discussion on the item. When materials are associated with the Update, as with the White Papers, such information will be made available to the public and Commission prior to the meeting. Informational Items: 1.- Zoning Regulations Workshop (June 3, 2017) Summary 2.- White Paper: Housing Trends COMMENT AND DISCUSSION 1. STAFF a. Agenda Forecast ADJOURNMENT The next Regular Planning Commission M eeting is scheduled for Wednesday, August 23, 2017 at 6:00 p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo, California. APPEALS: Any decision of the Planning Commission is final unless appealed to City Council within 10 days of the action (Recommendations to City Council cannot be appealed since they are not a final action.). Any person aggrieved by a decision of the Commission may file an appeal with the City Clerk. Appeal forms are available at the Community Development Department office, City Clerk’s office, or on the City’s website (www.slocity.org). The appropriate appeal fee must accompany the appeal documentation. PLANNING COMMISSION AGENDA REPORT SUBJECT: Public meeting to consider the Avila Ranch project, including related entitlements and the associated Final Environmental Impact Report (EIR). The project entitlements include an update to the Airport Area Specific Plan, General Plan Amendment, Rezone, Development Plan, Vesting Tentative Tract Map, and Development Agreement. (The Development Agreement will be considered as a separate item by the Planning Commission.) PROJECT ADDRESS: 175 Venture Drive BY: John Rickenbach, Contract Planner Phone Number: 805-610-1109 Email: JFRickenbach@aol.com FILE NUMBERS: GENP 1319-2015 FROM: Doug Davidson, Deputy Director SPEC/ER 1318-2015 SBDV 2042-2015 RECOMMENDATION: Recommend to the City Council that they take the following actions as contained in the attached Resolution (Attachment 1): 1) certify the Final EIR, adopt appropriate CEQA Findings and Statement of Overriding Considerations, and adopt a Mitigation Monitoring and Reporting Plan; 2) approve the Airport Area Specific Plan Amendment, General Plan Amendment and Rezone; 3) approve the Avila Ranch Development Plan based on findings that the project is consistent with the General Plan and Airport Area Specific Plan as amended; and 4) approve Vesting Tentative Tract Map No. 3089. SITE DATA Applicant Representative Proposed General Plan and Zoning Site Area Environmental Status Avila Ranch, LLC Stephen Peck, AICP Low, Medium, Medium-High, & High Density Residential (R-1, R-2, R-3, & R-4); Neighborhood Commercial (C-N); Public Facility (PF); & Conservation/Open Space (C/OS) 150 acres A Final EIR is available for review. SUMMARY Avila Ranch, LLC has proposed a new, primarily residential development with up to 720 units on a 150-acre site north of Buckley Road within the boundaries of the Airport Area Specific Plan (“AASP”). The project would also include a “Town Center” with 15,000 square feet of neighborhood-serving retail and office uses next to a neighborhood park, as well as the Meeting Date: August 9, 2017 Public Hearing Item Number: 1 PH 1 - 1 preservation of some of the existing onsite agricultural uses and open space. The project as proposed is envisioned to implement the policies and development parameters as articul ated in the recent Land Use and Circulation Elements (LUCE) update, other elements of the General Plan, AASP, and the City’s Community Design Guidelines. A Final EIR has been prepared for the project, and is available on the City’s website at: https://tinyurl.com/yae2byxp 1.0 SITE INFORMATION Please refer to the staff report for the Planning Commission hearing of June 28 & 29, which is available for review online at the following location: http://opengov.slocity.org/WebLink/1/doc/65871/Page1.aspx 2.0 PLANNING COMMISSION’S PURVIEW The Planning Commission’s role is to review and provide a recommendation to City Council on the Public Hearing Draft Development Plan and related entitlements, including an update to the Airport Area Specific Plan, as well as a General Plan Amendment, Rezone, Development Plan, Vesting Tentative Tract Map, Development Agreement, and the Final EIR, which addresses these project entitlements. The Commission will make recommendations to the City Council on certifying the Final EIR and various project entitlements as conditioned in the Resolution and attached to the staff report as Attachment 1. (The Development Agreement will be considered as a separate item by the Planning Commission, and is not part of the Resolution attached to this staff report.) 3.0 PREVIOUS PLANNING COMMISSION REVIEW The June 28 & 29 staff report describes past Planning Commission input on the project prior to that date. At the public hearings of June 28, June 29, and July 12, 2017, the Commission provided focused input on the following aspects of the proposed project: • Final Environmental Impact Report • Airport Area Specific Plan Amendment • General Plan Amendment/Rezone • Avila Ranch Development Plan • Vesting Tentative Tract Map There were 28 public speakers at the June 28 hearing, and an additional two speakers on June 29. There were 17 speakers at the July 12 hearing, 4 of whom had previously given testimony on June 28. Pursuant to the discussion at the three meetings, the Planning Commission consensus was that the Final EIR adequately described and analyzed the proposed project, and the Development Plan was consistent with the intent of the amended General Plan and Airport Area Specific Plan as it relates to the project site. The Planning Commission also concurred that the Vesting Tentative Tract Map accurately reflected the intent of the Specific Plan and Development Plan. However, the Planning Commission made certain recommendations with respect to the Final EIR/CEQA Findings, as well as the Vesting Tentative Tract Map conditions. PH 1 - 2 The Planning Commission also asked for additional clarification on how the project would provide for affordable housing. These items are addressed below. 3.1 Final Environmental Impact Report Certification and CEQA Findings The Planning Commission agreed that the Final EIR adequately described and analyzed the proposed project, and that the document included appropriate mitigation measures to reduce potential impacts to the extent feasible. These mitigation measures are included in a Mitigation Monitoring and Reporting Program within the Final EIR, and also included within the attached Resolution in the CEQA Findings (Attachment 1, Exhibit A). Based on this, the Planning Commission is asked to recommend that the City Council certify the Final EIR, including CEQA Findings that support the proposed project and a Statement of Overriding Considerations to address the identified significant and unavoidable impacts described in the Final EIR. The Final EIR identifies the following significant and unavoidable impacts: • Agricultural Resources – conversion of historically cultivated farmland to urban development. (Note that this issue was previously evaluated in the Final EIR for both the AASP and LUCE. As a result of both actions, the site was redesignated to non - agricultural uses, and annexed to the City as such. However, the impact addresses the physical conversion of the land itself, not the pre-existing regulatory change.) • Air Quality – short and long-term construction emissions of ROG and NOx, and operational air pollutant emissions associated with vehicle trips from the project; consistency with the Clean Air Plan. • Noise – short-term construction noise. • Transportation and Traffic – impacts to intersection capacities at Buckley Road/SR 227. With respect to the CEQA Findings, the Planning Commission recommended that the Statement of Overriding Considerations be augmented to address the following additional public benefits that would be realized as a result of project approval to offset the potentially unmitigated environmental impacts described above: • That local employees will be given first preference to purchase a residence within the project, which is intended to improve the local jobs-housing balance, and reduce commute lengths and resulting impacts related to air quality and greenhouse gas emissions; and • In order to promote housing affordability, owner occupancy will be required, which will reduce pressure from outside speculative buyers, a phenomenon that tends to drive up housing prices. The Planning Commission’s recommendations regarding the CEQA Findings and Statement PH 1 - 3 of Overriding Considerations will be forwarded to the City Council, which will need to adopt them as the basis of CEQA compliance if it chooses to approve the proposed project. 3.2 Recommended Modifications to the Vesting Tentative Tract Map Conditions As noted above, the Planning Commission concurred with the Vesting Tentative Tract Map as conditioned, but asked for clarification on two proposed conditions that relate to roadway design. The first relates to the design of Earthwood Lane, specifically that it be designed to allow for sufficient on-street parking to minimize potential negative impacts to existing businesses along that roadway. The Planning Commission consensus was that the roadway could be designed with on-street parking on one side, and a bike lane on the other, subject to the Public Works Department outreach to potentially affected businesses. As a result, the addition of the following language to Condition 101 is proposed: The existing section of Earthwood lane shall be restriped to add Class II bike lanes by removing parking on one side of the street. The striping design shall be determined as part of preparation of the Public Improvement Plans in consultation with surrounding property owners. In response to discussion at Planning Commission related to the feasibility and timing of a possible left turn lane at Venture Drive, staff proposes that Condition 125 be modified as follows: Condition 125. The developer shall design and install a southbound left turn lane on Vachell Lane at Venture per City Engineering Standards if the improvement is determined to be feasible to the satisfaction of the Public Works director. If determined to be infeasible this condition is waived. The City Council may consider exercising its power of eminent domain to acquire any off-site right-of-way dedication necessary to complete these improvements as provided in the Government Code section 66462.5. The intent of this modification is to allow for the Public Works Director the discretion to consider whether or not this roadway modification will actually be needed to address possible impacts, especially considered in the context of whether necessary right-of-way acquisition could introduce other impacts related to resource protection. The US 101 Corridor Mobility Master Plan calls for ramp metering at the Los Osos Valley Road & S. Higuera Interchanges. Although no project impacts have been identified at these locations, CalTrans has requested that the project participate in implementation of these planned improvements. In response to this request staff proposes an additional condition as follows: Condition 126. Prior to issuance of building permits for Phase 1, the developer shall design a ramp meter for the SB 101 On-Ramp at Los Osos Valley Road as identified in the US 101 Corridor Mobility Master Plan and submit the plans to CalTrans for approval and encroachment permit to construct. The applicant shall construct the ramp meter within 6 months of CalTrans issuance of the encroachment permit. The ramp meter PH 1 - 4 shall be constructed prior to occupancy of the 75th unit. The applicants share of this cost is established at 3%, costs above and beyond this fair share proportion are eligible for crediting against Los Osos Valley Road Interchange Sub Area Impact fees. Prior to issuance of building permits for Phase 1 the developer shall also design a ramp meter for the SB 101 On-Ramp at S. Higuera at identified in the US 101 Corridor Mobility Master Plan and submit the plans to CalTrans for approval. 3.3 Affordable & Workforce Housing The Planning Commission asked for additional clarification related to the project’s provision of affordable and workforce housing. The Planning Commission also appointed Vice-Chair Fowler to represent the Commission and meet with staff to review the affordable and workforce housing plan in more detail. This meeting was held on July 26th. As proposed by the applicant in consultation with City staff, and presented at the July 12 Planning Commission meeting, the project’s affordable and workforce housing plan includes design and development strategies that serve to provide lower cost housing by providing for a range of housing sizes and types, greater number of lower income Inclusionary housing units than required by Ordinance, local preference, owner occupancy restrictions, workforce housing incentive program and down payment assistance. The affordable and workforce housing plan is included as Attachment 2 to the staff report and it is also a part of the Development Agreement for the project. In summary, the affordable and workforce housing plan includes the following key components: Inclusionary Housing: • 71 inclusionary housing units required and provided through a combination of construction, dedicated land and payment of in-lieu fees • 32 low income units provided where 23 are required by Ordinance • Majority of units provided in phases 1-3 • Dedicated one acre site for an affordable housing development Workforce Housing: • 25 workforce housing units (121-160% of area median income) • 10 year deed restriction that resets with new income qualified buyer upon sale within the 10 year period • Revolving down payment assistance fund (approximately $500,000) • Workforce housing program and down payment assistance fund administered by the City 4.0 PROJECT SUMMARY AND DISCUSSION The project is the development of a major new City neighborhood, which will be governed by a Development Plan within the framework of the existing Airport Area Specific Plan. Other necessary project entitlements to allow development of the Avila Ranch area (identified as Specific Focus Area SP-4 in the City’s General Plan) are listed below: PH 1 - 5 • Airport Area Specific Plan (AASP) Amendment • General Plan Amendment • Rezone • Development Plan • Vesting Tentative Tract Map • Development Agreement The first five of these were discussed and analyzed in the Planning Commission staff reports for June 28 & 29, and July 12th. In the case of the Development Plan, recommended modifications arising from the June 28 and 29 Planning Commission hearings were discussed in Section 3.1 of the July 12 staff report. The Development Agreement will be described and analyzed in a separate staff report for the Planning Commission’s consideration as part of the August 9th meeting agenda. 5.0 NEXT STEPS If the Planning Commission recommends project approval in accordance with the attached Resolution, and it recommends approval of the related Development Agreement in a separate agenda item, these are the next steps in the process: • City Council Considers Project. The City Council will review the Planning Commission and Architectural Review Commission recommendations, and consider the project. • AB 1600 Fee Program Update and Community Facilities District Formation. Based in part on input received at a future joint Planning Commission/City Council workshop, the City’s AB 1600 fee program will be updated. A CFD is also proposed for the project, which will require City Council action. • Project Development. Once the Development Agreement is approved, and necessary fee structures are in place, the City’s approved project entitlements will become effective. 6.0 ATTACHMENTS 1. Resolution recommending approval of project-related entitlements to the City Council (including CEQA Findings, Statement of Overriding Considerations, and mitigation measures and project conditions associated with the Vesting Tentative Tract Map) 2. Affordable and Workforce Housing Plan The Avila Ranch Final EIR, Development Plan, Vesting Tentative Tract Map and Airport Area Specific Plan Legislative Draft are available for review online at the following location: https://tinyurl.com/ydx3d52r PH 1 - 6 RESOLUTION NO. ______ (2017 Series) A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SAN LUIS OBISPO RECOMMENDING CERTIFICATION OF THE FINAL EIR FOR, AND APPROVAL OF, THE AVILA RANCH DEVELOPMENT PLAN, AIRPORT AREA SPECIFIC PLAN AMENDMENT, GENERAL PLAN AMENDMENT, REZONE, AND VESTING TENTATIVE TRACT MAP NO. 3089 FOR PROPERTY LOCATED AT 175 VENTURE DRIVE (GENP 1319-2015; SPEC/ER-1318-2015; SBDV 2042-2015 a.k.a. “AVILA RANCH PROJECT”) WHEREAS, the Planning Commission of the City of San Luis Obispo conducted public hearings on the Avila Ranch project June 28, June 29, July 12, and August 9, 2017; and WHEREAS, the Planning Commission hearings were for the purpose of formulating and forwarding recommendations to the City Council of the City of San Luis Obispo regarding the project; and WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and WHEREAS, the Planning Commission has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff, presented at said hearing. BE IT RESOLVED, by the Planning Commission of the City of San Luis Obispo to recommend to the City Council certification of the Final Environmental Impact Report (EIR) and approval of the Avila Ranch Development Plan, Airport Area Specific Plan Amendment, General Plan Amendment, Rezone, and Vesting Tentative Tract Map (“Avila Ranch Project”). This resolution is based on the following CEQA Findings, Mitigation Measures, Development Plan Modifications, and Map Conditions, with associated project findings: Section 1. CEQA Findings, Mitigation Measures and Mitigation Monitoring Program. Based upon all the evidence, the Planning Commission makes the following CEQA findings in support of the Avila Ranch Project: 1. The Avila Ranch Development Plan Final Environmental Impact Report (FEIR) was prepared in accordance with the California Environmental Quality Act (CEQA) and the State CEQA Guidelines, adequately addressing impacts associated with the proposed project; and PH 1 - 7 2. The proposed project is consistent with the requirements of the Avila Ranch Development Plan Final Environmental Impact Report (FEIR) as proposed based on the attached Findings and Statement of Overriding Considerations prepared consistent with CEQA Guidelines Sections 15091 and 15093, and this approval incorporates those FEIR mitigation measures as applicable to VTM #3089, as detailed below, and described more fully in the attached “Findings of Fact and Statement of Overriding Considerations” document. 3. All potentially significant effects were analyzed adequately in the referenced FEIR, and reduced to the extent feasible, provided the following mitigation measures are incorporated into the project and the mitigation monitoring program. AVILA RANCH FEIR MITIGATION MEASURES Agricultural Resources Mitigation AG-1. The Applicant shall establish an offsite agricultural conservation easement or pay in-lieu fees to a City designated fund dedicated to acquiring and preserving agricultural land. While the City’s priority is that such agricultural land be acquired in the closest feasible proximity to the City, mitigation may be implemented using one of the following options: a. The Applicant shall ensure permanent protection of farmland of equal area and quality, which does not already have permanent protection, within the City of San Luis Obispo, consistent with City Policy 8.6.3(C) and AASP Policy 3.2.18. The Applicant shall identify and purchase or place in a conservation easement a parcel of land of at least 71 acres of equal quality farmland, or provide in-lieu fees to allow the City to complete such an acquisition. b. If no suitable parcel exists within the City limits, the Applicant shall identify and purchase or place in a conservation easement a parcel of farmland, of equal quantity and quality, within the City’s Sphere of Influence that is threatened by development of nonagricultural uses. The parcel shall be placed in an agricultural conservation easement (refer to Figure 2 in the Land Use Element for City Sphere of Influence). The Applicant may also provide in-lieu fees to allow the City to complete such an acquisition. c. In the event that no suitable land is available within the City limits or City’s Sphere of Influence, the Applicant shall identify and purchase or place in a conservation easement a parcel of farmland, of equal quantity and quality, within the City’s urban reserve or greenbelt that is threatened by development of nonagricultural uses. This parcel shall be placed in an agricultural conservation easement (refer to Figure 1 in the Land Use Element for City Planning Area). The Applicant may also provide in-lieu fees to allow the City to complete such an acquisition. In the event that no suitable land for an agricultural conservation easement is available for purchase within the City limits, the City’s Sphere of Influence, or urban reserve or greenbel t Planning Area, the Applicant shall identify and purchase or place in a conservation easement a parcel of farmland, of equal quantity and quality, within County lands (e.g., agricultural lands north and south of Buckley Road) that is considered to be threatened by the conversion to nonagricultural use. This parcel shall be placed in an agricultural conservation easement. The Applicant may also provide in- lieu fees to allow the City to complete such an acquisition. The Applicant shall demonstrate that such land is as close in proximity to the City as feasible. PH 1 - 8 AG-2a. To address potential agricultural land use conflicts, the Applicant shall coordinate with the City and County to fund installation of fencing and signs along Buckley Road to minimize potential for increases in trespass and vandalism of adjacent agricultural areas. Along the south side of Buckley Road, the use of three strand barbwire fencing would be acceptable. Along the north side of the Buckley Road extension bordering the Class I bike path, spit rail fencing shall be installed or other fencing acceptable to the County. AG-2b. To reduce the potential for noise, dust, and pesticide drift to affect future Project residents, the Applicant shall ensure that Project landscape plans include planting of a windrow of trees and shrubs along the proposed southern landscape berm and eastern Project site boundary at a sufficient density to buffer the site from surrounding agricultural operations. AG-2c. To augment the existing 100-foot agricultural buffer to the Caltrans property to the west of the Project site, the Applicant shall add a 20-foot hedgerow/windrow of trees and vegetation along the east side of Vachell Lane. Air Quality Mitigation AQ-1a. A Construction Activity Management Plan (CAMP) shall be included as part of Project grading and building plans and shall be submitted to the APCD and to the City for review and approval prior to the start of construction. In addition, the contractor or builder shall designate a person or persons to monitor the dust control program and to order increased watering, as necessary, to prevent transport of dust offsite. Their duties shall include holidays and weekend periods when work may not be in progress. The name and telephone of such persons shall be provided to the APCD prior to land use clearance for map recordation and grading. The plan shall include but not be limited to the following elements: 1. A Dust Control Management Plan that encompasses the following dust control measures: • Reduce the amount of disturbed area where possible; • Water trucks or sprinkler trucks shall be used during construction to keep all areas of vehicle movement damp enough to prevent dust from leaving the site. At a minimum, this would require twice-daily applications. All dirt stock pile areas should be sprayed daily as needed. Increased watering frequency would be required when wind speeds exceed 15 miles per hour (mph). Reclaimed water or the onsite water well (non-potable) shall be used when possible. The contractor or builder shall consider the use of an APCD-approved dust suppressant where feasible to reduce the amount of water used for dust control; • All dirt stock-pile areas shall be sprayed daily as needed; • Permanent dust control measures identified in the approved Project revegetation and landscape plans should be implemented as soon as possible following completion of any soil disturbing activities; • Exposed ground areas that are planned to be reworked at dates greater than one month after initial grading shall be sown with a fast germinating native grass seed and watered until vegetation is established; • All disturbed soil areas not subject to revegetation shall be stabilized using approved chemical soil binders, jute netting, or other methods approved in advance by the APCD; PH 1 - 9 • All roadways, driveways, sidewalks, etc. to be paved should be completed as soon as possible. In addition, building pads should be laid as soon as possible after grading unless seeding or soil binders are used; • Vehicle speed for all construction vehicles shall not exceed 15 mph on any unpaved surface at the construction site; • All trucks hauling dirt, sand, soil, or other loose materials are to be covered or shall maintain at least two feet of freeboard in accordance with California Vehicle Code Section 23114; • Install wheel washers where vehicles enter and exit unpaved roads onto streets, or wash off trucks and equipment leaving the site; • Sweep streets at the end of each day if visible soil material is carried onto adjacent paved roads. Water sweepers with reclaimed water should be used where feasible; • All of these fugitive dust mitigation measures shall be shown on grading and building plans; and • The contractor or builder shall designate a person or persons to monitor the fugitive dust control emissions and enhance the implementation of the measures as necessary to minimize dust complaints, reduce visible emissions below 20 percent opacity, and to prevent transport of dust offsite. Their duties shall include holiday and weekend periods when work may not be in progress. The name and telephone number of such persons shall be provided to the APCD Compliance Division prior to the start of any grading, earthwork or demolition. 2. Implementation of the following BACT for diesel-fueled construction equipment, where feasible. The BACT measures shall include: • Use of Tier 3 and Tier 4 off-road equipment and 2010 on-road compliant engines; • Repowering equipment with the cleanest engines available; and • Installing California Verified Diesel Emission Control Strategies. 3. Implementation of the following standard air quality measures to minimize diesel emissions: • Maintain all construction equipment in proper tune according to manufacturer’s specifications; • Fuel all off-road and portable diesel powered equipment with CARB-certified motor vehicle diesel fuel (non-taxed version suitable for use off-road). • Use diesel construction equipment meeting CARB’s Tier 2 certified engines or cleaner off-road heavy-duty diesel engines, and comply with the State off-Road Regulation; • Use on-road heavy-duty trucks that meet the CARB’s 2007 or cleaner certification standard for on-road heavy-duty diesel engines and comply with the State On-Road Regulation; • Construction or trucking companies with fleets that do not have engines in their fleet that meet the engine standards identified in the above two measures (e.g. captive or NOx exempt area fleets) may be eligible by proving alternative compliance; • On- and off-road diesel equipment shall not be allowed to idle for more than five minutes. Signs shall be posted in the designated queuing areas to remind drivers and operators of the five-minute idling limit; • Diesel idling within 1,000 feet of sensitive receptors in not permitted; PH 1 - 10 • Staging and queuing areas shall not be located within 1,000 feet of sensitive receptors; • Electrify equipment when feasible; • Substitute gasoline-powered in place of diesel-powered equipment, where feasible; and, • Use alternatively fueled construction equipment onsite where feasible, such as compressed natural gas (CNG), liquefied natural gas (LNG), propane or biodiesel. 4. Tabulation of on- and off-road construction equipment (age, horse-power, and miles and/or hours of operation); 5. Schedule construction truck trips during non-peak hours (as determined by the Public Works Director) to reduce peak hour emissions; 6. Limit the length of the construction work-day period; and 7. Phase construction activities, if appropriate. AQ-1b. To reduce ROG and NOx levels during the architectural coating phase, low or no VOC- emission paint shall be used with levels of 50 g/L or less, such as Benjamin Moore Natura Paint (Odorless, Zero VOC Paint). The Applicant or builder shall consider additional measures to reduce daily and quarterly ROG and NOx levels related to architectural coatings, such as extending coating applications by limiting daily coating activities. AQ-1c. In order to further reduce Project air quality impacts, an offsite mitigation strategy shall be developed and agreed upon by the developer, City, and APCD at least three months prior to the issuance of grading permits, including added funding for circulation improvements and transit operations. Such funding may be in the form of cash payment or included as part of the obligation of the Community Facilities District. The Applicant shall provide this funding at least two months prior to the start of construction to help facilitate emission offsets that are as real-time as possible. Offsite mitigation strategies shall include one or more of the following: • Replace/repower San Luis Obispo Regional Transit Authority (SLORTA) transit buses; • Purchase VDECs for transit buses; and • Fund expansion of existing SLORTA transit services. AQ-2a. The Applicant shall include the following: • Water Conservation Strategy: The Applicant shall install fixtures with the EPA WaterSense Label, achieving 20 percent reduction indoor. The Project shall install drip, micro, or fixed spray irrigation on all plants other than turf, also including the EPA WaterSense Label, achieving 15 percent reduction in outdoor landscaping. • Solid Waste: The Applicant shall institute recycling and composting services to achieve a 15 percent reduction in waste disposal, and use waste efficient landscaping. • Fugitive Dust: The Applicant shall replace ground cover of at least 70 percent of area disturbed in accordance with CARB Rule 403. • Energy Conservation Strategy: The Applicant shall install additional solar and alternative energy features (e.g., solar panels on commercial buildings; solar canopies over commercial parking areas). PH 1 - 11 AQ-2b. Consistent with standard mitigation measures set forth by the APCD, Projects generating more than 50 lbs/day of combined ROG + NOx or PM10 shall implement all feasible measures within Table 3-5 of the Air Quality Handbook. Biological Resources Mitigation BIO-1a. The Applicant shall prepare and implement a Biological Mitigation Plan that identifies construction-related staging and maintenance areas and includes Project-specific construction best management practices (BMPs) to avoid or minimize impacts to biological resources, including all measures needed to protect riparian woodland along Tank Farm Creek, minimize erosion, and retain sediment on the Project site. Such BMPs shall include (but not be limited to) the following: 1. Construction equipment and vehicles shall be stored at least 100 feet away from Tank Farm Creek and adjacent riparian habitat, and all construction vehicle maintenance shall be performed in a designated offsite vehicle storage and maintenance area. 2. Prior to construction activities adjacent to Tank Farm Creek, the creek shall be fenced with orange construction fencing and signed to prohibit entry of construction equipment and personnel unless authorized by the City. Fencing should be located a minimum of 20 feet from the edge of the riparian canopy or top of bank, whichever is further from the creek, and shall be maintained throughout the construction period for each phase of development. 3. In the event that construction must occur within the creek or 20-foot creek setback, a biological monitor shall be present during all such activities with the authority to stop or redirect work as needed to protect biological resources. 4. Construction shall occur during daylight hours (7:00 AM to 7:00 PM or sunset, whichever is sooner) to avoid impacts to nocturnal and crepuscular (dawn and dusk activity period) species. No construction night lighting shall be permitted within 100 yards of the top of the creek banks. 5. Construction equipment shall be inspected at the beginning of each work day to ensure that no wildlife species is residing within any construction equipment (e.g., species have not climb ed into wheel wells, engine compartments, or under tracks since the equipment was last parked). Any sensitive wildlife species found during inspections shall be gently encouraged to leave the Project site by a qualified biologist or otherwise trained and City-approved personnel. 6. Pallets or secondary containment areas for chemicals, drums, or bagged materials shall be provided. Should material spills occur, materials and/or contaminants shall be cleaned from the Project site and recycled or disposed of to the satisfaction of the Regional Water Quality Control Board (RWQCB). 7. All trash and construction debris shall be picked up and properly disposed at the end of each day and waste dumpsters shall be covered with plastic sheeting at the end of each workday and during storm events. All sheeting shall be carefully secured to withstand weather conditions. 8. The Applicant shall implement erosion control measures designed to minimize erosion and retain sediment on the Project site. Such measures shall include installation of silt fencing, straw waddles, or other acceptable erosion control devices along the perimeter of Tank Farm Creek and at the perimeter of all cut or fill slopes. All drainage shall be directed to sediment basins designed to retain all sediment onsite. 9. Concrete truck and tool washout should occur in a designated location such that no runoff will reach the creek. PH 1 - 12 10. All open trenches shall be constructed with appropriate exit ramps to allow species that incidentally fall into a trench to escape. All open trenches shall be inspected at the beginning of each work day to ensure that no wildlife species is present. Any sensitive wildlife species found during inspections shall be gently encouraged to leave the Project site by a qualified biologist or otherwise trained and City-approved personnel. Trenches will remain open for the shortest period necessary to complete required work. Existing facilities and disturbed areas shall be used to the maximum extent possible to minimize the amount of disturbance of undeveloped areas and all construction access roads and staging areas shall be located to avoid high quality habitat and minimize habitat fragmentation. BIO-1b. The Applicant shall retain a qualified Environmental Monitor, subject to review and approval by the City and in consultation with CDFW, RWQCB, and USFWS to oversee compliance of the construction activities with the Biological Monitoring Plan and applicable laws, regulations, and policies. The Environmental Monitor shall monitor all construction activities, conduct a biological resources education program for all construction workers prior to the initiation of any clearing or construction activities, and provide quarterly reports to the City regarding construction activities, enforcement issues and remedial measures. The Environmental Monitor shall be responsible for conducting inspections of the work area each work day to ensure that excavation areas, restored habitats, and open water habitats in the area do not have oil sheen, liquid oil, or any other potential exposure risk to wildlife. If any exposure risk is identified, the Environmental Monitor shall implement measures that could include, but are not limited to, hazing, fencing, and wildlife removals to eliminate the exposure risk. In addition, a CDFW-approved biologist shall be present during all construction occurring within 50 feet of Tank Farm Creek, riparian habitat, drainages, and seasonal or permanent wetlands. The biologist shall also conduct sensitive species surveys immediately prior to construction activities (within the appropriate season) and shall monitor construction activities in the vicinity of habitats to be avoided (see also, MM BIO-3 and all subparts below). The work area boundaries and other off-limit areas shall be identified by the biologist and/or Environmental Monitor on a daily basis. The biologist and/or Environmental Monitor shall inspect construction and sediment control fencing each work day during construction activities to ensure that sensitive species are not exposed to hazards. Any vegetation clearing activities shall be monitored by the biologist and/or Environmental Monitor. BIO-2b. The Biological Mitigation Plan shall provide details on timing and implementation of required habitat restoration and shall be prepared in consultation with the City’s Natural Resource Manager and CDFW. A copy of the final plan shall be submitted to the City for review and approval. The plan shall be implemented by the Project Applicant, under supervision by the City and Environmental Monitor, and: 1. Characterize the type, species composition, spatial extent, and ecological functions and values of the wetland and riparian habitat that will be removed, lost, or damaged. 2. Describe the approach that will be used to replace the wetland and riparian habitat removed, lost, or adversely impacted by the Project, including a list of the soil, plants, and other materials PH 1 - 13 that will be necessary for successful habitat replacement, and a description of planting methods, location, spacing, erosion protection, and irrigation measures that will be needed. Restoration and habitat enhancement shall include use of appropriate native species and correction of bank stabilization issues. Wetland restoration or enhancement areas shall be designed to facilitate establishment of wetland plants such as willows, cottonwoods, rushes, and creeping wild rye. 3. Describe the habitat restoration ratio to be used in calculating the acreage of habitat to be planted, consistent with MM BIO-2c through 2e below and the findings in the Biological Report (Appendix I). 4. Describe the program that will be used for monitoring the effectiveness and success of the habitat replacement approach. 5. Describe how the habitat replacement approach will be supplemented or modified if the monitoring program indicates that the current approach is not effective or successful. 6. Describe the criteria that will be used to evaluate the effectiveness and success of the habitat replacement approach. 7. Indicate the timing and schedule for the planting of replacement habitat. 8. Habitat restoration or enhancement areas shall be established within the Project boundaries, adjacent to and contiguous with existing wetlands to the maximum extent possible. Habitats suitable for Congdon’s tarplant and other native wetland species shall be created onsite. If Congdon’s tarplant is found in areas proposed for disturbance, the affected individuals shall be replaced at a 1:1 ratio through seeding in a suitable conserved natural open space area. A management plan for the species shall be developed consistent with applicable scientific literature pertinent to this species. 9. Habitat restoration or enhancement sites shall be placed within deed-restricted area(s), and shall be maintained and monitored for a minimum of five years. If sufficient onsite mitigation area is not practicable, an offsite mitigation plan shall be prepared as part of the Biological Mitigation Plan and approved by permitting agencies. 10. The Biological Mitigation Plan shall identify appropriate restoration and enhanc ement activities to compensate for impacts to seasonal creek, wetland, and riparian habitat, including a detailed planting plan and maintenance plans using locally obtained native species and include habitat enhancement to support native wildlife and plant species. 11. A weed management plan and weed identification list shall be included in the Biological Mitigation Plan. 12. Habitat restoration or enhancement areas shall be maintained weekly for the first three years after Phase completion and quarterly thereafter. Maintenance shall include eradication of noxious weeds found on California Department of Food and Agriculture Lists (CDFA) A and B. Noxious weeds on CDFA list C may be eradicated or otherwise managed. 13. Mitigation implementation and success shall be monitored quarterly for the first two years after completion of each Phase, semi-annually during the third year, and annually the fourth and fifth years. Annual reports documenting site inspections and site recovery status shall be prepared and sent to the County and appropriate agencies. BIO-2c. Within the required Biological Mitigation Plan, all temporary and permanent impacts to riparian trees, wetlands, and riparian habitat shall be mitigated, as follows: PH 1 - 14 1. Temporary impacts to wetland and riparian habitat shall be mitigated at a minimum 1:1 mitigation ratio for restoration (area of restored habitat to impacted habitat). 2. Permanent impacts to state jurisdictional areas, including isolated wetlands within agricultural lands and riparian habitat will be mitigated at a 1.5:1 ratio (area of restored and enhanced habitat to impacted habitat). 3. Permanent impacts to federal wetlands shall be mitigated at a minimum 3:1 ratio (1:1 area of created to impacted habitat plus 2:1 area of created/enhanced habitat to impacted habitat). 4. Riparian trees four inches or greater measured at diameter-at-breast-height (DBH) shall be replaced in-kind at a minimum ratio of 3:1 (replaced: removed). Trees measured at 24 inches or greater DBH shall be replaced in-kind at a minimum ratio of 10:1. Willows and cottonwoods may be planted from live stakes following guidelines provided in the California Salmonid Stream Habitat Restoration Manual for planting dormant cuttings and container stock (CDFW 2010). Permanent impacts to riparian vegetation shall be mitigated at a 3:1 ratio to ensure no net loss of acreage and individual plants. 5. Replacement trees shall be planted in the fall or winter of the year in which trees were removed. All replacement trees will be planted no more than one year following the date upon which the native trees were removed. Replacement plants shall be monitored for 5 years with a goal of at least 70 percent survival at the end of the 5-year period. Supplemental irrigation may be provided during years 1 to 3; however, supplemental watering shall not be provided during the final two years of monitoring. BIO-2d. Project design shall be modified to preserve at a minimum the southern 275 feet of the North-South Creek Segment to protect all existing mature riparian woodland, and the proposed drainage plan shall be altered to convey remaining surface water flows from areas to the north to this channel. BIO-2e. To minimize impacts to riparian habitat, the Project shall stockpile sufficient emergent vegetation (e.g., cattails) for later planting in the realigned reach of Tank Farm Creek. Stockpiled vegetation shall be placed in earthen basins with the roots covered with moist soil and maintained in a moist condition during construction operations. [BIO-2f does not apply to the Mitigated Project.] BIO-2g. A post-construction landscape and restoration report for each phase shall be prepared by the Environmental Monitor based on as-built drawings and site inspections to document the final grading, plantings, and habitat restoration activities. The report shall include as-built plans prepared after restoration, grading, and mitigation habitat plantings are complete. The as-built plans shall be prepared by landscape and grading contractors. BIO-2h. Project activities within Tank Farm Creek and drainage channels, including any tree pruning or removals, any necessary erosion repairs, or culvert removals, shall be performed when the channel is dry, planned to the satisfaction of the City Engineer and Natural Resource Manager per City Drainage Manual Standards, and be subject to monitoring by the Environmental Monitor. PH 1 - 15 BIO-2i. To reduce erosion and runoff from all exposed soils, all bare disturbed soils shall be hydroseeded at the completion of grading for each construction phase. The seed mix shall contain a minimum of three locally native grass species and may contain one or two sterile non-native grasses not to exceed 25 percent of the total seed mix by count. Seeding shall be completed no later than November 15 of the year in which Project activities occurred. All exposed areas where seeding is considered unsuccessful after 90 days shall receive a second application or seeding, straw, or mulch as soon as is practical to reduce erosion. BIO-2j. The Tank Farm Creek Class I bicycle path bridge footings for creek crossings shall be placed outside mapped riparian areas and outside the top of the bank of the channel invert. The Class I bridges shall be located within areas that have little to no riparian ve getation. No construction activities or equipment shall occur in the stream channel. The placement of the bridge and footings shall be indicated on the Development Plan, VTM, and Biological Mitigation Plan, and shall show the bridges’ placement in relation to existing vegetation and the creek channel and banks. BIO-3a. The City-approved qualified biologist shall conduct training to all construction personnel to familiarize construction crews with sensitive species that have the potential to occur within th e Project site. This may include but is not limited to: California red-legged frog, western pond turtle, Steelhead trout, bats, migratory birds, and Congdon’s tarplant. The educational program shall include a description what constitutes take, penalties for take, and the guidelines that would be followed by all construction personnel to avoid take of species during construction activities. Descriptions of the California red-legged frog and its habits, Congdon’s tarplant, nesting and migratory birds that may be encountered, and all other sensitive species that have a potential to occur within the vicinity of Project construction shall be provided. The construction crew foreman shall be responsible for ensuring that crew members comply with the guidelines and that all new personnel receive the training before partaking in construction activities. BIO-3b. The Biological Mitigation Plan shall address wildlife and special status species movement as follows: • Migratory and Nesting Bird Management. Grading and construction activities shall avoid the breeding season (typically assumed to be from February 15 to August 15) to the extent practicable, particularly within 50 feet of Tank Farm Creek and riparian or wetland habitat. If Project activities must be conducted during this period, pre-construction nesting bird surveys shall take place within one week of habitat disturbance associated with each phase, and if active nests are located, the following shall be implemented: o Construction activities within 50 feet of active nests shall be restricted until chicks have fledged, unless the nest belongs to a raptor, in which case a 200-foot activity restriction buffer shall be observed. o A pre-construction survey report shall be submitted to the City immediately upon completion of the survey. The report shall detail appropriate fencing or flagging of the buffer zone and make recommendations on additional monitoring requirements. A map of the Project site and nest locations shall be included with the report. o The Project biologist conducting the nesting survey shall have the authority to reduce or increase the recommended buffer depending upon site conditions and the species involved. A report of findings and recommendations for bird protection shall be submitted to the City prior to vegetation removal. PH 1 - 16 • Bat Colony Management. Prior to removal of any trees over 20 inches diameter-at-breast- height (DBH), a survey shall be conducted by a CDFW -approved qualified biologist to determine if any tree proposed for removal or trimming harbors sensitive bat species or maternal bat colonies. Maternal bat colonies shall not be disturbed. If a non-maternal roost is found, the qualified biologist shall install one-way valves or other appropriate passive relocation method. For each occupied roost removed, one bat box shall be installed in similar habitat and shall have similar cavities or crevices to those which are removed, including access, ventilation, dimensions, height above ground, and thermal conditions. If a bat colony is excluded from the Project site, appropriate alternate bat habitat shall be installed in the Project site. To the extent practicable, alternate bat house installation shall be installed near the onsite drainage. • Congdon’s Tarplant Management. Prior to initiation of construction, the Applicant shall fund a site survey for Congdon’s tarplant, and: o If Congdon’s tarplant is found in areas proposed for building, the affected individuals shall be replaced at a 1:1 ratio through seeding in a suitable conserved natural open space area. o A mitigation and monitoring plan for the species shall be developed consistent with applicable scientific literature pertinent to this species. The plan shall provide for the annual success over an area of at least 1,330 square feet with approximately 500-750 individuals (the current aerial extent) and be implemented to reduce impacts to Congdon’s tarplant to a less than significant level. o The mitigation plan shall be incorporated into the Biological Mitigation Plan, wherein wetland sites shall be created and Congdon’s tarplant seeds from the site shall be reintroduced. • Sensitive Species Management. Injury or mortality to the California red-legged frog, western pond turtle, and steelhead shall be avoided. The plan shall include the following measures: pre- Project surveys; worker awareness; cessation of work in occupied areas; relocation (if necessary) of frogs, turtles, and steelhead from the work area by a professional biologist authorized by the USFWS and/or CDFW; and monitoring by a qualified biologist during construction. Necessary permits shall be obtained from the state (CDFW) and federal (USACE and USFWS) regulatory agencies with jurisdiction. Any other sensitive species observed during the pre -construction surveys shall be relocated out of harm’s way by the qualified biologist into the nearest suitable habitat as determined in consultation with the jurisdictional resource agency outside the disturbance area. BIO-3c. Within 48 hours prior to construction activities within 50 feet of Tank Farm Creek, drainages, and seasonal wetlands, the Project site shall be surveyed for California red-legged frogs by a qualified biologist. If any California red-legged frogs are found, work within 25 linear feet in any direction of the frog shall not start until the frog has been moved from the area. The USFWS shall be consulted for appropriate action; the Applicant shall obtain a Biological Opinion from the USFWS and any additional authorization required by other regulatory agencies prior to the commencement of work. The USFWS-qualified biologist, Environmental Monitor, or USFWS personnel may determine that frog-exclusion fencing is necessary to prevent overland movement of frogs if concerns arise that frogs could enter construction areas. Frog-exclusion fencing should contain no gaps and must extend at least 18 inches above ground; fences may be opened during periods of no construction (e.g., weekends) to prevent entrapment. PH 1 - 17 BIO-3d. Within 48 hours prior to construction activities within 50 feet of Tank Farm Creek, drainages, seasonal wetlands, and riparian habitat, the Project site shall be surveyed for western pond turtles by a qualified biologist. If any western pond turtles are found, work shall cease until the turtle is relocated to the nearest suitable habitat. The qualified biologist shall monitor all ground breaking work conducted within 50 feet of western pond turtle habitat. The City-approved biologist Environmental Monitor may determine that silt fencing shall be installed adjacent to western pond turtle habitat if concerns arise that the western pond turtle overland movement could allow them to access construction areas. [BIO-3e does not apply to the Mitigated Project.] BIO-4. The required Biological Mitigation Plan shall address bat colonies for the Buckley Road Extension site. Bat surveys shall be conducted in buildings proposed for demolition. If surveys determine bats are present, bat exclusion devices shall be installed between August and November, and building demolition would occur between November and March. If demolition of structures must occur during the bat breeding season, buildings must be inspected and deemed clear of bat colonies/roosts within seven days of demolition and an appropriately trained and approved biologist must conduct a daily site-clearance during demolition. If bats are roosting in a structure in the Project site during the daytime but are not part of an active maternity colony, then exclusion measures must include one-way valves that allow bats to get out but are designed so that the bats may not re -enter the structure. BIO-5a. All exterior building lights facing Tank Farm Creek shall be hooded to prevent light spillover into the creek; all residential street lights over 10 feet in height shall be setback a minimum of 100 feet from the top of the creek bank and hooded and/or directed away from the creek. Any night lighting adjacent to the creek (e.g., walkway lights) shall be of low voltage and hooded downward. Artificial light levels within 20 feet of the top of the creek bank shall not exceed 1 -foot candle or the lowest level of illumination found to be feasible by the City. BIO-5b. Tank Farm Creek restoration/enhancement plantings shall include native vegetation, such as oaks, cottonwoods, willows, and sycamores along the entire length of the Project’s creek frontage in order to minimize light spillover into the creek. BIO-6. All work within 100 feet of Tank Farm Creek, including work within the creek setback, shall occur outside the rainy season (April 15 to October 15, unless approved otherwise by the RWQCB), during periods when the creek channel is dry and water flows are absent. Cultural Resources Mitigation CR-2a. Data recovery through controlled grading of CA-SLO-2798/H shall occur prior to the start of construction to seek buried features and additional diagnostic artifacts. The Applicant shall retain a Registered Professional Archaeologist familiar with the types of historic and prehistoric resources that could be encountered within the Project site and a Native American monitor to supervise the controlled grading, which shall occur in 10-centimeter lifts to culturally sterile sediments or maximum construction depth (whichever is reached first). PH 1 - 18 • Any formed tools exposed during grading shall be collected. If archaeological features are exposed (including but not limited to hearths, storage pits, midden deposits, or structural remains), the archaeologist shall temporarily redirect grading to another area so the features can be exposed, recorded, and sampled according to standard archaeological procedures. Organic remains shall be dated using the radiocarbon method and the geochemical source and hydration rim thickness of any obsidian shall be determined. Technical analyses of plant remains, bone and shell dietary debris, and other important materials shall also be performed. • Artifacts, features, and other materials recovered through this process shall be described, illustrated, and analyzed fully in a technical report of findings; the analysis shall include comparative research with other sites of similar age. In addition to the technical report, the findings from this research shall be published in an appropriate scientific journal. The Applicant shall fund all technical reporting and subsequent publication. CR-2b. Following completion of controlled grading of CA-SLO-2798/H, the Applicant shall retain a Registered Professional Archaeologist and a Native American consultant to monitor all further earth disturbances within Phase 5 to ensure that previously unidentified buried archaeological deposits are not inadvertently exposed and damaged. In the event archaeological remains are encountered during grading or other earth disturbance, work in the vicinity shall be stopped immediately and redirected to another location until the Project archaeologist evaluates the significance of the find pursuant to City Archaeological Resource Preservation Program Guidelines. If remains are found to be significant, they shall be subject to a Phase 3 mitigation program consistent with City Guidelines and funded by the Applicant. CR-3a. Prior to the issuance of building and grading permits for Phase 1, the Applicant shall retain a City-approved Registered Professional Archaeologist and a Native American monitor to be present during all ground disturbing activities within the Project site and Buckley Road Extension site. In the event of any inadvertent discovery of prehistoric or historic-period archaeological resources during construction, all work within 50 feet of the discovery shall immediately cease (or greater or lesser distance as needed to protect the discovery and determined in the field by the Project archaeologist). The Applicant shall immediately notify the City of San Luis Obispo Community Development Department. The Project archaeologist shall evaluate the significance of the discovery pursuant to City Archaeological Resource Preservation Program Guidelines prior to resuming any activities that could impact the site/discovery. If the Project archaeologist determines that the find may qualify for listing in the CRHR, the site shall be avoided or shall be subject to a Phase 3 mitigation program consistent with City Guidelines and funded by the Applicant. Work shall not resume until authorization is received from the City. CR-3b. Prior to construction, workers shall receive education regarding the recognition of possible buried cultural remains and protection of all cultural resources, including prehistoric and historic resources, during construction. Such training shall provide construction personnel with direction regarding the procedures to be followed in the unlikely event that previously unidentified archaeological materials, including Native American burials, are discovered during construction. Training would also inform construction personnel that exclusion zones must be avoided and that unauthorized collection or disturbance of artifacts or other cultural materials is not allowed. The training shall be prepared by the Project archaeologist and shall provide a description of the cultural resources that may be encountered in the Project site, outline steps to follow in the event that a PH 1 - 19 discovery is made, and provide contact information for the Project archaeologist, Native American monitor, and appropriate City personnel. The training shall be conducted concurrent with other environmental or safety awareness and education programs for the Project, provided that the program elements pertaining to archaeological resources is provided by a qualified instructor meeting applicable professional qualifications standards. Geological Resources (from the Initial Study) GEO-1. Design and construction of the buildings, roadway infrastructure and all subgrades shall be engineered to withstand the expected ground acceleration that may occur at this site. The design shall take into consideration the soil type, potential for liquefaction, and the most current and applicable seismic attenuation methods that are available. All on-site structures shall comply with applicable provisions of the 2010 California Building Code, local codes, and the most recent California Department of Transportation seismic design standards. GEO-2. For commercial retail stores included in the project, goods for sale may be stacked no higher than 8 feet from the floor in any area where customers are present, unless provisions are made to prevent the goods from falling during an earthquake of up to 7.5 magnitude. The stacking or restraint methods shall be reviewed and approved by the City before approval of occupancy permits, and shall be a standing condition of occupancy. GEO-3. A geotechnical study shall be prepared for the project site prior to site development. This report shall include an analysis of the liquefaction potential of the underlying materials according to the most current liquefaction analysis procedures. If the site is confirmed to be in an area prone to seismically-induced liquefaction, appropriate techniques to minimize liquefaction potential shall be prescribed and implemented. All on-site structures, transportation infrastructure and subgrades shall comply with applicable methods of State and Local Building Codes and all transportation infrastructure shall comply with the most current California Department of Transportation design standards. Suitable measures to reduce liquefaction impacts could include one or more of the following techniques, as determined by a registered geotechnical engineer: • specialized design of foundations by a structural engineer; • removal or treatment of liquefiable soils to reduce the potential for liquefaction; • drainage to lower the groundwater table to below the level of liquefiable soil; • in-situ densification of soils or other alterations to the ground characteristics; or • other alterations to the ground characteristics. GEO-4. The Site Geotechnical Investigation shall include an evaluation of the potential for soil settlement beneath the project site. If the project site is identified to be in a high potential for settlement zone based on the Site Geotechnical Investigation, the building foundations, transportation infrastructure and subgrades shall be designed by a structural engineer to withstand the existing conditions, or the site shall be graded in such a manner as to address the condition. Suitable measures to reduce settlement impacts could include one or more of the following techniques, as determined by a qualified geotechnical engineer: PH 1 - 20 • excavation and recompaction of on-site or imported soils; • treatment of existing soils by mixing a chemical grout into the soils prior to recompaction; or • foundation design that can accommodate certain amounts of differential settlement such as post tensional slab and/or ribbed foundations designed in accordance with the California Building Code (CBC). GEO-5. The Site Geotechnical Investigation shall include an evaluation of the potential for soil expansion beneath the project site. If the project site is identified to be in a high expansive soil zone based on the Site Geotechnical Investigation, the foundations and transportation infrastructure shall be designed by a structural engineer to withstand the existing conditions, or the site shall be graded in such a manner as to address the condition. Suitable measures to reduce impacts from expansive soils could include one or more of the following techniques, as determined by a qualified geotechnical engineer: • excavation of existing soils and importation of non-expansive soils; and • foundation design to accommodate certain amounts of differential expansion such as post tensional slab and/or ribbed foundations designed in accordance with the CBC. GEO-6. The Site Geotechnical Investigation shall include soil parameter analyses to determine the potential for subsidence at the project site. If the potential for subsidence is found to be significant, then structural and grading engineering measures shall be implemented to incorporate the results of the geotechnical study. These measures would be similar to those recommended to mitigate impacts to soil settlement. GEO-7. During drought periods, groundwater pumping limitations for the unconsolidated aquifer underlying the project site shall be assessed and implemented to prevent soil subsidence. Hazardous and Hazardous Materials Mitigation HAZ-1. Prior to earthwork and demolition activities, a site-specific Health and Safety Plan shall be developed per California Occupational Safety and Health Administration (Cal/OSHA) requirements. The Health and Safety Plan shall include appropriate best management practices (BMPs) related to the treatment, handling, and disposal of NOA and ACMs. A NOA Construction and Grading Project Form shall be submitted to the APCD prior to grading activities. All construction employees that have the potential to come into contact with contaminated building materials and soil/bedrock shall be briefed on the safety plan, including required proper training and use of personal protective equipment. During earthwork and demolition activities, procedures shall be followed to eliminate or minimize construction worker or general public exposure to heavy hydrocarbons and other potential contaminants in soil and groundwater, and potential ACMs within potential demolished materials. Procedures shall include efforts to control fugitive dust, contain and cover excavation debris piles, appropriate laborator y analysis of soil for waste characterization, segregation of contaminated soil from uncontaminated soil, and demolished materials. The applicable regulations associated with excavation, removal, transportation, and disposal of contaminated soil shall be followed (e.g., tarping of trucks and waste manifesting). Hydrology and Water Quality Mitigation PH 1 - 21 HYD-1a. Prior to the issuance of any construction/grading permit and/or the commencement of any clearing, grading, or excavation, the Applicant shall submit a Notice of Intent (NOI) for discharge from the Project site to the California SWRCB Storm Water Permit Unit. HYD-1b. The Applicant shall require the building contractor to prepare and submit a Storm Water Pollution Prevention Plan (SWPPP) to the City 45 days prior to the start of work for approval. The contractor is responsible for understanding the State General Permit and instituting the SWPPP during construction. A SWPPP for site construction shall be developed prior to the initiation of grading and implemented for all construction activity on the Project site in excess of one (1) acre, or where the area of disturbance is less than one acre but is part of the Project’s plan of development that in total disturbs one or more acres. The SWPPP shall identify potential pollutant sources that may affect the quality of discharges to storm water, and shall include specific BMPs to control the discharge of material from the site. The following BMP methods shall include, but would not be limited to: • Temporary detention basins, straw bales, sand bagging, mulching, erosion control blankets, silt fencing, and soil stabilizers shall be used. • Soil stockpiles and graded slopes shall be covered after 14 days of inactivity and 24 hours prior to and during inclement weather conditions. • Fiber rolls shall be placed along the top of exposed slopes and at the toes of graded areas to reduce surface soil movement, as necessary. • A routine monitoring plan shall be implemented to ensure success of all onsite erosion and sedimentation control measures. • Dust control measures shall be implemented to ensure success of all onsite activities to control fugitive dust. • Streets surrounding the Project site shall be cleaned daily or as necessary. • BMPs shall be strictly followed to prevent spills and discharges of pollutants onsite (material and container storage, proper trash disposal, construction entrances, etc.). • Sandbags, or other equivalent techniques, shall be utilized along graded areas to prevent siltation transport to the surrounding areas. Additional BMPs shall be implemented for any fuel storage or fuel handling that could occur onsite during construction. The SWPPP must be prepared in accordance with the guidelines adopted by the SWRCB. The SWPPP shall be submitted to the City along with grading/development plans for review and approval. The Applicant shall file a Notice of Completion for construction of the development, identifying that pollution sources were controlled during the construction of the Project and implementing a closure SWPPP for the site. HYD-1c. Installation of the eight drainage outlets within Tank Farm Creek shall occur within the dry season (May through October). HYD-2a. The Applicant shall prepare and submit a Master Drainage Plan. The Master Drainage Plan shall address cumulative regional drainage and flooding impacts on the Project site, including construction and stream stability, and set forth measures to coordinate Project drainage with Chevron Tank Farm remediation and drainage improvements. The Master Drainage Plan shall be implemented pursuant to the City’s SWMP submitted by the City to the RWQCB under the NPDES Phase II program and pursuant to the programs developed under the City of San Luis Obispo General Plan and the City of San Luis Obispo Waterways Management Plan. The Master Drainage Plan shall meet the following requirements: PH 1 - 22 • Development of a Construction Drainage Plan that details the control and retention of runoff for each phase of construction, and clearly displays the location of bioretention facilities, their retention capacity and relationship to subsurface drainage culv erts, alignment of creek and drainage channels for each phase. • Ensure that onsite detention facilities, particularly the pocket park/bioswale, are designed to safely retain flood flows using either gently sloping exterior slopes (e.g., 4:1) or provide safety fencing around perimeters, consistent with applicable City standards. • Characterization of drainage from the East-West Channel and conveyance of flows after removal of this channel. • Demonstrate peak flows and runoff for each phase of construction. • Be coordinated with habitat restoration efforts, including measures to minimize removal of riparian and wetland habitats, contouring of creek invert to create pools and removal of trash or debris as appropriate. • Location and extent of vegetated Swales designed to reduce sediment and particulate forms of metals and other pollutants along corridors of planted grasses or native vegetation. • Location and extent of vegetated Filter Strips, 15-foot wide vegetated buffer strips that also reduce sediment and particulate forms of metals and nutrients. The use, location and capacity of Hydrodynamic Separation Products to reduce suspended solids greater than 240 microns, trash and hydrocarbons. These hydrodynamic separators must be sized to handle peak flows from the Project site consistent with applicable regulatory standards. [HYD-2b and HYD-2c do not apply to the Mitigated Project.] HYD-3a. The Applicant shall prepare a Master Drainage Plan which shall consider cumulative regional drainage and flooding impacts of the Project, and shall be submitted to the City Public Works Director for approval and shall meet the following requirements: • There shall be no significant net increase in upstream or downstream floodwater surface elevations for the 100-year floodplain as a result of changes in floodplain configuration and building construction. A significant threshold of a 2.5 -inch increase in floodwater surface elevations or 0.3 feet per second increase in stream velocities shall be used. This shall be demonstrated to the satisfaction of the City Engineer or County Public Works Director based on an Applicant furnished hydraulic analysis. • There shall be no significant net decrease in floodplain storage volume as a result of a new development or redevelopment projects. This can be achieved by a zero-net fill grading plan, which balances all fill placed on the 100-year floodplain with cut taken from other portions of the floodplain within the Project site of the application, or with cut exported offsite. Specifically, all fill placed in a floodplain shall be balanced with an equal amount of soil material removal (cut) and shall not decrease floodplain storage capacity at any stage of a flood (2, 10, 50, or 100-year event). A net increase in fill in any floodplain is allowed only when all the conditions listed in the Managed Fill Criteria of the DDM are also met. HYD-3b. All bridges, culverts, outfalls, and modifications to the existing creek channels must be designed and constructed in compliance with the City’s Drainage Design Manual and approved by PH 1 - 23 the City Engineer, USACE, CDFW, and Central Coast RWQCB, and must meet city standards and policies. HYD-4a. A site-specific, geotechnical investigation shall be completed in areas proposed for HDD. Preliminary geotechnical borings shall be drilled to verify that the proposed depth of HDD is appropriate to avoid frac-outs (i.e., the depth of finest grained sediments and least fractures) and to determine appropriate HDD methods (i.e., appropriate drilling mud mixtures for specific types of sediments). The investigation shall include results from at least three borings, a geologic cross section, a discussion of drilling conditions, and a history and recommendations to prevent frac-outs. HYD-4b. A Frac-out Contingency Plan shall be completed and shall include measures for training, monitoring, worst case scenario evaluation, equipment and materials, agency notification and prevention, containment, clean up, and disposal of released drilling muds. Preventative measures would include incorporation of the recommendations of the geotechnical investigation to determine the most appropriate HDD depth and drilling mud mixture. In accordance with the RWQCB, HDD operations shall occur for non-perennial streams such as Tank Farm Creek only when the stream is dry, and only during daylight hours. In addition, drilling pressures shall be closely monitored so that they do not exceed those needed to penetrate the formation. Monitoring by a minimum of two City- approved monitors (located both upstream and downstream, who will move enough to monitor the entire area of operations) shall occur throughout drilling operations to ensure swift response in the event of a frac-out, while containment shall be accomplished through construction of temporary berms/dikes and use of silt fences, straw bales, absorbent pads, straw wattles, and plastic sheeting. Clean up shall be accomplished with plastic pails, shovels, portable pumps, and vacuum trucks. The Frac-out Contingency Plan shall be submitted to the City, and the RWQCB shall review the plan. HYD-5. A Development Maintenance Manual for the Project shall include detailed procedures for maintenance and operations of any storm water facilities to ensure long-term operation and maintenance of post-construction storm water controls. The maintenance manual shall require that storm water BMP devices be inspected, cleaned and maintained in accordance with the manufacturer’s maintenance specifications. The manual shall require that devices be cleaned prior to the onset of the rainy season (i.e., October 15th) and immediately after the end of the rainy season (i.e., May 15th). The manual shall also require that all devices be checked after major storm events. The Development Maintenance Manual shall include the following: • All loading docks and trash storage areas shall be setback a minimum of 150 feet from the top of the creek bank. No outdoor storage or larger trash receptacles shall be permitted within this setback area. All trash and outdoor storage areas shall be operated to reduce potential impacts to riparian areas; • Runoff shall be directed away from trash and loading dock areas; • Trash and loading dock areas shall be screened or walled to minimize offsite transport of trash; • Bins shall be lined or otherwise constructed to reduce leaking of liquid wastes; • Trash and loading dock areas shall be paved; • Impermeable berms, drop inlets, trench catch basin, or overflow containment structures around docks and trash areas shall be installed to minimize the potential for leaks, spills or wash down water to enter the drainage system and Tank Farm Creek; and, The developer or acceptable maintenance organization shall complete inspections of the site to ensure compliance with BMPs and water quality requirements on a semi-annual basis (May 15 and October PH 1 - 24 15 of each year). A detailed summary report prepared by a licensed Civil Engineer shall be submitted to the City of San Luis Obispo Public Works Department. The requirements for inspection and report submittal shall be recorded against the property. Noise Mitigation NO-1a. Except for emergency repair of public service utilities, or where an exception is issued by the Community Development Department, no operation of tools or equipment used in construction, drilling, repair, alteration, or demolition work shall occur daily between the hours of 7:00 PM and 7:00 AM, or any time on Sundays, holidays, or after sunset, such that the sound creates a noise disturbance that exceeds 75 dBA for single-family residential, 80 dBA for multi-family residential, and 85 dBA for mixed residential/commercial land uses, as shown in Table 3.9-8 and Table 3.9-9 of the FEIR, across a residential or commercial property line. NO-1b. For all construction activity at the Project site, noise attenuation techniques shall be employed to ensure that noise levels are maintained within levels allowed by the City of San Luis Obispo Municipal Code, Title 9, Chapter 9.12 (Noise Control). Such techniques shall include: • Sound blankets on noise-generating equipment. • Stationary construction equipment that generates noise levels above 65 dBA at the Project boundaries shall be shielded with a barrier that meets a sound transmission class (a rating of how well noise barriers attenuate sound) of 25. • All diesel equipment shall be operated with closed engine doors and shall be equipped with factory-recommended mufflers. • The movement of construction-related vehicles, with the exception of passenger vehicles, along roadways adjacent to sensitive receptors shall be limited to the hours between 7:00 AM and 7:00 PM, Monday through Saturday. No movement of heavy equipment shall occur on Sundays or official holidays (e.g., Thanksgiving, Labor Day). • Temporary sound barriers shall be constructed between construction sites and affected uses. NO-1c. The contractor shall inform residents and business operators at properties within 300 feet of the Project site of proposed construction timelines and noise complaint procedures to minimize potential annoyance related to construction noise. Noise-related complaints shall be directed to the City’s Community Development Department. NO-3a. R-1 and R-2 residential units planned in the area of the Project site within 300 feet of Buckley Road and R-4 units in the northwest corner of the Project site shall include noise mitigation for any potential indoor space and outdoor activity areas that are confirmed to be above 60 dBA as indicated in the Project’s Sound Level Assessment. The following shall be implemented for residential units with noise levels exceeding 60 dBA: • Outdoor Activity Area Noise Mitigation. Where exterior sound levels exceed CNEL = 60 dBA, noise reduction measures shall be implemented, including but not limited to: • Exterior living spaces of residential units such as yards and patios shall be oriented away from Project boundaries that are adjacent to noise-producing uses that exceed exterior noise levels of CNEL = 60 dBA, such as roadways and industrial/commercial activities. PH 1 - 25 • Construction of additional sound barriers/berms with noise-reducing features for affected residences. • Exterior Glazing. Exterior window glazing for residential units exposed to potential noise above Ldn=60 dBA shall achieve a minimum Outdoor-Indoor Transmission Class (OITC) 24 / Sound Transmission Class (STC) 30. Glazing systems with dissimilar thickness panes shall be used. • Exterior Doors Facing Noise Source. According to Section 1207.7 of the California Building Code, residential unit entry doors from interior spaces shall have a combined STC 28 rating for any door and frame assemblies. Any balcony and ground floor entry doors located at bedrooms shall have an STC 30 rating. Balconies shall be oriented away from the northwest property line. • Exterior Walls. Construction of exterior walls shall consist of a stucco or engineered building skin system over sheathing, with 4-inch to 6-inch deep metal or wood studs, fiberglass batt insulation in the stud cavity, and one or two layers of 5/8-inch gypsum board on the interior face of the wall. If possible, electrical outlets shall not be installed in exterior walls exposed to noise. If not possible, outlet box pads shall be applied to all electrical boxes and sealed with non-hardening acoustical sealant. • Supplemental Ventilation. According to the California Building Code, supplemental ventilation adhering to OITC/STC recommendations shall be provided for residential units with habitable spaces facing noise levels exceeding Ldn=60 dBA, so that the opening of windows is not necessary to meet ventilation requirements. Supplemental ventilation can also be provided by passive or by fan-powered, ducted air inlets that extend from the building’s rooftop into the units. If installed, ducted air inlets shall be acoustically lined through the top- most 6 feet in length and incorporate one or more 90-degree bends between openings, so as not to compromise the noise insulating performance of the residential unit’s exterior envelope. • Sound Walls. Sound walls shall be built on the north and east property lines of the Project in Phase 3 that adjoin Suburban Road. The barrier shall consist of mortared masonry. Further, proposed carports with solar canopies shall be installed around the western and northern perimeter of the R-4 units, and these units shall be setback a minimum of 100 feet from the property line. • Landscaping. Landscaping along the north and east Project site boundaries that adjoin Suburban Road shall include a line of closely space trees and shrubs with sufficient vegetative density to help reduce sound transmission. NO-3b. Buckley Road widening improvements shall include the use of rubberized asphalts or alternative paving technology to reduce noise levels for sensitive receptors near the roadway Public Services Mitigation PS-1. The Applicant shall prepare and implement a brief Security Plan for the Project site. The Security Plan shall be prepared in consultation with the SLOPD and address public safety concerns in common or public spaces, parks, bike paths and open space areas, the commercial center, and parking lots. The Security Plan shall set forth lighting requirements, security recommendations for parks, open space and trails (e.g., visibility, lighting, etc.), and establish rules for use of the public areas. PH 1 - 26 PS-2. Fair Share Contribution. The Applicant shall agree to pay a fair share contribution to a future citywide or area-wide fire protection service protection development impact fee program. Additionally, the AASP should be amended to include a fee program to fund the City’s fifth fire station and/or integrate such fair share fee programs into the proposed Community Facilities District (CFD). Transportation and Traffic Mitigation TRANS-1. The Applicant shall prepare a Construction Transportation Management Plan for all phases of the proposed Project for review and approval by the City prior to issuance of grading or building permits to address and manage traffic during construction. The Plan shall be designed to: • Prevent traffic impacts on the surrounding roadway network; • Restrict construction staging to within the Project site; • Minimize parking impacts both to public parking and access to private parking to the greatest extent practicable; • Ensure safety for both those construction vehicles and works and the surrounding community; and • Prevent substantial truck traffic through residential neighborhoods. The Construction Transportation Management Plan shall be subject to review and approval by the Public Works Director to ensure that the Plan has been designed in accordance with this mitigation measure. This review shall occur prior to issuance of grading or building permits. It shall, at a minimum, include the following ongoing Requirements throughout the Duration of Construction: • A detailed Construction Transportation Management Plan for work zones shall be maintained. At a minimum, this shall include parking and travel lane configurations; warning, regulatory, guide, and directional signage; and area sidewalks, bicycle lanes, and parking lanes. The Plan shall include specific information regarding the Project’s construction activities that may disrupt normal pedestrian and traffic flow and the measures to address these disruptions. Such Plan shall be reviewed and approved by the Community Development Department and implemented in accordance with this approval. • Work within the public right-of-way shall be reviewed and approved by the City on a case by case basis based on the magnitude and type of construction activity. Generally work shall be performed between 8:30 AM and 4:00 PM. This work includes dirt hauling and construction material delivery. Work within the public right-of-way outside of these hours shall only be allowed after the issuance of an after-hours construction permit administered by the Building and Safety Division. Additionally restrictions may be put in place by Public Works Department depending on particular construction activities and conditions. • Streets and equipment shall be cleaned in accordance with established Public Works requirements. • Trucks shall only travel on a City-approved construction route. Limited queuing may occur on the construction site itself. • Materials and equipment shall be minimally visible to the public; the preferred location for materials is to be onsite, with a minimum amount of materials within a work area in the public right-of-way, subject to a current Use of Public Property Permit. PH 1 - 27 • Provision of off-street parking for construction workers, which may include the use of a remote location with shuttle transport to the site, if determined necessary by the City. • Project Coordination Elements That Shall Be Implemented Prior to Commencement of Construction: • The traveling public shall be advised of impending construction activities that may substantially affect key roadways or other facilities (e.g., information signs, portable message signs, media listing/notification, and implementation of an approved Construction Impact Mitigation Plan). • A Use of Public Property Permit, Excavation Permit, Sewer Permit, or Oversize Load Permi t, as well as any Caltrans permits required for any construction work requiring encroachment into public rights-of-way, detours, or any other work within the public right-of-way shall be obtained. • Timely notification of construction schedules shall be provided to all affected agencies (e.g., Police Department, Fire Department, Public Works Department, and Community Development Department) and to all owners and residential and commercial tenants of property within a radius of ¼ mile. • Construction work shall be coordinated with affected agencies in advance of start of work. Approvals may take up to two weeks per each submittal. Public Works Department approval of any haul routes for construction materials and equipment deliveries shall be obtained. TRANS-2a. The Applicant shall create and submit a Transportation Improvement Phasing Plan to the City for review and approval, and shall ensure that construction of the Project follows the sequential phasing order utilized in the TIS for such improvements. The Plan shall address the timing and general design of all on and offsite transportation improvements. [TRANS-2b through TRANS-2f do not apply to the Mitigated Project.] TRANS-3a. Project roadway and driveway design shall be reviewed and approved by the City to ensure compliance with City engineering standards and not conflict with intersection functional areas (e.g., aligning driveways on opposite sides of the roadway, position driveways as far upstream from intersections as possible). TRANS-3b. The Applicant shall install traffic calming measures (e.g., speed bumps, pedestrian bulb- outs, etc.) to control speed levels along internal roadways of the Project site, including the extensions of Venture Drive, Horizon Lane, and Jespersen Road as required by Policy 8.1.3. TRANS-4. The Applicant shall prepare an improvement plan for Horizon Lane, Earthwood Lane, and Suburban Road, including roadway, bicycle, and pedestrian improvements. Improvements shall be constructed by the Applicant in coordination with the phasing plan required by MM TRANS-2a, to ensure the Applicant constructs all offsite roadway improvements in a timely manner consistent with Project phasing. The Project Applicant shall: • Prepare a detailed improvement plan for Horizon Lane to bring this road into conformance with City standards for a commercial collector of width between 44 to 60 feet from Suburban Road to the Project boundary. This plan shall be developed in coordin ation with adjacent property owners and the City Public Works Department. Horizon Lane shall not be connected to the Project site until such a plan has been completed and improvements are completed in PH 1 - 28 accordance with the phasing plan, as part of Phase 4. The section of Horizon Lane/Jespersen Road from the Project boundary to Buckley Road shall be designated as a residential collector with a width of roadway between 40 and 60 feet. Construction of the Horizon Road from Suburban Road to Phase 4 of the Project shall be completed and open to travel prior to the issuance of any occupancy permit for the 100th residential unit of Phase 4 development. • Design and improve the intersection of Horizon Lane/Suburban Road to be consistent with City Uniform Design Criteria and Municipal Code Standards. • Coordinate with the property owners along Earthwood Lane and City staff to complete the Earthwood Lane Extension to the Project site as part Phase 1. Earthwood Lane shall be developed to full City standards for a residential collector. Residential collectors shall be 44 to 60 feet wide as required by the City’s Uniform Design Criteria. • Coordinate with the property owners along Suburban Road and City staff to prepare a detailed improvement plan for Suburban Road to bring this road into conformance with City standards. This plan shall address widening of substandard sections near the east end of this roadway, completion of missing sidewalk segments, installation of street trees, pedestrian crossings (e.g., Suburban Road at Earthwood Lane). In accordance to the City’s Engineering Standards and Specifications – Uniform Design Criteria, a commercial collector road shall be 44 to 68 feet wide to effectively serve commercial and industrial uses. Improvements from Earthwood Lane to Higuera Street shall be done as part of Phase 1. Improvements from Earthwood Lane to Horizon Lane shall be done as part of Phase 4 development, prior to the connection of Horizon Lane with the Project site. • Prepare a detailed phasing plan that identifies reasonable timing of such improvements for Suburban Road, Horizon Lane, and Earthwood Lane. The phasing plan shall be developed in close coordination with City staff. Construction of the Suburban Road improvements from Horizon Road from Earthwood shall be completed and open to travel prior to issuance of an occupancy permit for the 100th residential unit of Phase 4 development. The Suburban Road improvement from Earthwood to Higuera and the Earthwood improvements on the Project site and between the Project and Suburban shall be completed prior to issuance of the occupancy permit for the 1st dwelling unit. TRANS-5. The Applicant shall pay a pro-rata fair share fee to fund the installation of a roundabout at the Buckley Road/SR 227 intersection as identified in the SLOCOG SR 227 Operations Study. The City shall collect the fair share fee and coordinate payment of Project fair share fees to help fund improvements with the County. Alternatively, the City should consider an amendment of the AASP impact fee program to establish a new areawide fee to help fund improvements to the intersection to offset cumulative development impacts. If an amended AASP fee is created by the City it will suffice as appropriate mitigation for the Project’s participation in these improvements. TRANS-6. The Applicant shall design and construct the extension of the northbound right turn-lane at the South Street/Higuera Street intersection, to provide more storage capacity. TRANS-7a. The Applicant shall design and construct a second northbound left-turn lane at the intersection of South Higuera Street/Prado Road. The Applicant shall also pay a fair share fee for the widening of Prado Road Creek Bridge west of South Higuera Street by participating in the citywide transportation impact fee program. PH 1 - 29 TRANS-7b. The Applicant shall design and construct a second southbound left-turn lane at the Tank Farm Road/South Higuera Street intersection. [TRANS-7c and TRANS-7d do not apply to the Mitigated Project.] TRANS-8a. The Project is located within the Los Osos Valley Road interchange Sub Area fee program, and, as such, the Applicant shall pay the Los Osos Valley Road subarea fee, for the cost of reconstructing the Los Osos Valley Road/U.S. Highway 101 interchange project and improvements along Los Osos Valley Road. The fee shall be associated with the number of dwelling units and the square footage of commercial development in the Project site and shall be paid the time of building permit issuance. TRANS-8b. In coordination with the Applicant, the City shall retime the traffic signal at Los Osos Valley Road/South Higuera Street intersection and installation of signage at the South Higuera Street/Buckley Road intersection (terminus of the Buckley Road Extension) to inform drivers of additional access to U.S. Highway 101 at Ontario Road. The City Public Works Department shall ensure the improvements and signage meet safety criteria. TRANS-10a. The Applicant shall design and construct ADA-compliant sidewalks and ADA ramps on the east side of South Higuera Street to provide continuous paths of travel from the City limit line to Los Osos Valley Road. TRANS-10b. The Applicant shall design and construct continuous sidewalks along the east side of South Higuera Street from Vachell Lane to Los Osos Valley Road including ADA ramps at the Vachell Lane and South Higuera Street intersection, as illustrated in Figure 3.12-6 in the FEIR. TRANS-10c. The Applicant shall design and construct continuous ADA-compliant sidewalks and ADA ramps along the south side of Suburban Road from South Higuera Street to Earthwood Lane. A receiving ramp shall be installed on the north side of Suburban Road at Earthwood Lane. TRANS-11. The Applicant shall construct two (2) separated bicycle bridges on each side of Buckley Road at Tank Farm Creek and provide connections to Buckley Road so as to provide continuous and safe bicycle routing along Buckley Road. These sections of roadway and creek crossings are under the jurisdiction of the County and would need to meet both City and County design standards to the greatest extent feasible and are subject to approval of the City’s Public Works Director. TRANS-12. The Applicant shall coordinate with SLO Transit to ensure that adequate service would be provide to the two proposed bus stops and Project area. The bus stops shall be constructed by the Applicant within the respective phase’s development area. To assure adequate service is provided to the two new bus stops onsite, the Applicant shall pay for and install any physic al improvements to Earthwood Lane and Suburban Road needed to accommodate future service to the site. In addition, the proposed transit service onsite shall meet standards stated in Policy 3.1.6, Service Standards. PH 1 - 30 TRANS-13. The City shall amend the Citywide TIF to include a fee program for the installation of a second southbound right-turn lane at the Los Osos Valley Road/South Higuera Street intersection, or create a separate mitigation fee for this purpose. The Applicant shall pay its fair share of the improvement costs through the payment of the Citywide TIF of the ad hoc mitigation fees, as appropriate, to the City prior to issuance of building permits. TRANS-14. If approved by City Council, the City shall amend the TIF, or some other fee program, to include a fee program for the installation of a Class I bicycle path from Buckley Road/South Higuera Street intersection to Los Osos Valley Road/U.S. Highway 101 southbound ramps intersection, connecting to the Bob Jones Trail. The Applicant shall pay its fair share fee to fund the improvement through the adopted fee program. Alternatively, the City may establish a special or ad hoc mitigation fee program to fund the Project’s share of these improvements. TRANS-15a. The Applicant shall pay its fair share fee to the City to fund the widening of the Prado Road/South Higuera Street intersection to accommodate a dual left -turn lane, dual thru-lanes, and a right-turn lane on all approaches. Part of this share may be contained within existing fee programs or ultimately incorporated into the Citywide TIF program. If amended into the Citywide TIF an impact fee program, payment of those fees will address project impacts. TRANS-15b. The Applicant shall pay its fair share mitigation fees to fund improvements to the intersection of Higuera/Tank Farm Road to provide: 1) extension of the northbound right -turn lane, 2) the installation of a “pork chop” island to assist pedestrian crossings, and 3) widening on the south side of Tank Farm to provide a slip lane for right turning traffic. The City should consider incorporating this improvement into the AASP Fee program. TRANS-15c. The City shall review the cross sections for improvements to Tank Farm Road/Horizon Lane intersection as proposed within AASP to ensure long-term geometrics meet the objectives of the General Plan. The Applicant shall pay fair share mitigation fees to fund the installation of an additional northbound right-turn lane or a roundabout at the Tank Farm Road/Horizon Lane intersection. The City should consider incorporating this improvement into the AASP fee program. TRANS-15d. The Applicant shall pay its fair share fees to fund the installation of a traffic signal or a single-lane roundabout at the Buckley Road/Vachell Lane intersection. While not required, this work may be implemented as part of the Buckley Road extension being installed as part of Phase 2 of the Project. The City should consider incorporating this improvement into the AASP fee program. Utilities Mitigation UT-2. The size, location, and alignment of all on- and offsite water, wastewater, and energy infrastructure offsite shall be subject to review and approval by the City’s Public Works and Utilities Departments. The Applicant shall be responsible for constructing all required onsite and offsite utility improvements and well as for repaving of damaged roadways. PH 1 - 31 Section 2. Specific Plan Amendment, General Plan Amendment, Rezone, Development Plan, and Vesting Tentative Tract Map Approval with Findings & Conditions. The Planning Commission does hereby recommend approval to City Council of application GENP 1319-2015; SPEC/ER-1318-2015; SBDV 2042-2015, a Specific Plan Amendment, General Plan Amendment, Rezone, Development Plan, and Vesting Tentative Tract Map, to allow up to 720 dwelling units, based on the following findings, and subject to the following conditions being incorporated into the Vesting Tentative Tract Map: Findings: 1. The project area was identified as one of four Specific Plan areas designated for development when the General Plan Land Use and Circulation Elements update were adopted by the City Council in December 2014. The Avila Ranch Development Plan, which encompasses a portion of the Airport Area Specific Plan, was prepared to implement this aspect of the General Plan. 2. The Avila Ranch Development Plan and Airport Area Specific Plan as amended are consistent with policy direction for the area included in the General Plan, specifically Land Use Element Policy 8.1.6, which identifies the Avila Ranch area as a Special Focus Area (SP-4), subject to policies for the development of a specific plan and certain broad development parameters and principles. The Development Plan and Airport Area Specific Plan as amended are also consistent with all other applicable General Plan policies, as described and analyzed in Section 7.0 of the June 28 & 29, 2017, staff report to the Planning Commission for this project, and as discussed further within the Final EIR. 3. The Airport Area Specific Plan Amendment, General Plan Amendment and Rezone allow the implementation of the Avila Ranch Development Plan by: • Updating the City’s General Plan and Specific Plan land use maps to reflect the development pattern included in the Avila Ranch Development Plan; • Updating the City’s General Plan and Specific Plan circulation maps to reflect the circulation system included in the Specific Plan; and • Rezoning the site to be consistent with the General Plan, Specific Plan, and Development Plan. 4. As conditioned, the design of the Vesting Tentative Tract Map is consistent with the General Plan and Specific Plan because it is consistent with the Avila Ranch Development Plan, it respects existing environmental site constraints, will add to the City’s residential housing inventory, allow for appropriate non -residential development, and provides needed infrastructure and roadway improvements identified in the City’s General Plan and Airport Area Specific Plan . 5. The Avila Ranch project was reviewed by various City advisory bodies, including the Architectural Review Commission, Bicycle Advisory Committee, and Parks and Recreation Commission, and incorporates input consistent with their direction. 6. The Airport Land Use Commission found the Avila Ranch Development Plan project as proposed to be consistent with the Airport Land Use Plan. PH 1 - 32 7. Development will occur consistent with the Vesting Tentative Tract Map and the required architectural review process, which will allow for detailed review of development plans to assure compliance with City plans, policies, and standards. 8. As conditioned, the design of the subdivision will not conflict with easements for access through (or use of property within) the proposed subdivision, and the project is consistent with the pattern of development prescribed in the Avila Ranch Development Plan. 9. The proposed project will provide affordable housing consistent with the intent of California Government Code §65915, and in compliance with City policies and the Housing Element. 10. The Tentative Map, as conditioned, will comply with all environmental mitigation measures prescribed herein, and therefore is consistent with the California Environmental Quality Act, as implemented through the Avila Ranch Final EIR. Planning Commission Recommended Modifications to the Development Plan or Specific Plan 1. Infrastructure Timing and Connectivity. Include an estimated housing absorption schedule, and relate it to projected citywide capital improvements, including roadways and bike facilities, showing this information on a map, in order to better understand long-range connectivity and potential gaps. 2. Affordable Housing. Applicant to work with City staff to implement additional opportunities to maximize the number of affordable housing units include in the development. 3. Modal Split and Impact Fees. Impact fees should be connected to modal split objectives. 4. Sustainable Farming. Include provisions to encourage sustainable farming practices within designated open space areas wherever appropriate. 5. Parks. Applicant to work with City staff to explore the potential for an additional pocket park in the vicinity of Lots 130, 131 and 132 in the proposed Vesting Tentative Tract Map. 6. Greywater Use. Consistent with the adopted Climate Action Plan, include provisions in the Development Plan to encourage the use of greywater wherever appropriate. 7. Buckley Road Safety. Include provisions in the design of Buckley Road improvements that enhance public safety. These could include, but potentially not be limited to rumble strips. Vesting Tentative Tract Map Conditions: Planning 1. At the time of submittal of a request for approval of a final map, the subdivider shall provide a written report detailing the methods and techniques employed for complying with these conditions of approval and the mitigation measures imposed upon certification of the EIR for the Project. 2. All owners, potential purchasers, occupants (whether as owners or renters), and potential occupants (whether as owners or renters) shall receive full and accurate disclosure PH 1 - 33 concerning the noise, safety, or overflight impacts associated with airport operations prior to entering any contractual obligation to purchase, lease, rent, or otherwise occupy any property or properties within the airport area consistent with the applicable provisions of the of the Airport Area Specific Plan and Avila Ranch Development Plan. 3. Prior to final map, County of San Luis Obispo Avigation easements shall be recorded for each parcel within the development. 4. Prior to the recording of any phase of the final map, the applicant shall enter into and record an Affordable Housing Agreement with the City, detailing the timing of construction of affordable units on-site, and with guarantees to ensure timely delivery of all of the required affordable housing units. The Affordable Housing Agreement must be included as an exhibit to the Development Agreement, and include appropriate guarantees to ensure the timely delivery of affordable housing units, dedication of real property, or payment of in- lieu fees, consistent with the applicable sections of the Airport Area Specific Plan and Avila Ranch Development Plan. 5. Pursuant to Government Code §66474.9(b), the subdivider shall defend, indemnify and hold harmless the City and/or its agents, officers and employees from any claim, action or proceeding against the City and/or its agents, officers or employees to attack, set aside, void or annul, the approval by the City of this map and its related approvals, and all actions relating thereto, including but not limited to environmental review. The City shall promptly notify the subdivider of any claim, action, or proceeding and shall cooperate fully in the defense. If the city fails to promptly notify the subdivider of any claim, action , or proceeding, or to cooperate fully in the defense, the subdivider shall not thereafter be responsible to defend, indemnify, or hold the City harmless. Engineering Development Review Dedications and Easements 6. Any easements including but not limited to provisions for all public and private utilities, water wells, access, grading, drainage, agriculture / open space, slope banks, construction, public and private streets/alleys, pedestrian and bicycle facilities, common driveways, and maintenance of the same shall be shown on the final map and/or shall be recorded separately prior to or concurrent with the recordation of the map, unless a deferral is requested by the subdivider and granted by the City. Said easements may be provided for in part or in total as blanket easements. 7. The final map and improvement plans shall show the extent of all on-site and known off- site offers of dedication. Subdivision improvement plans and / or preliminary designs may be required for any deferred improvements so that dedication limits can be established. These improvements may include but are not limited to road construction and widening, grading and drainage improvements, stormwater facilities, utility easements, bridges, bike bridges, transit stops, bikeways, pedestrian paths, signalized intersections, traffic circles, PH 1 - 34 and roundabouts. 8. The final map and improvement plans shall clearly delineate the City-County limit line along Vachell Lane and Buckley Road. The subdivision boundary shall consider said limits. The map or an additional map sheet may be required to clearly delineate the limits and extent of some or all of the off-site dedications to further clarify how and where the several mitigation measures and conditions will be satisfied. Future, concurrent and/or prior recordations may need to be included on the map, additional map sheet, or improvement plans for reference. 9. The subdivider shall dedicate a 10’ wide street tree easement and public utility easement (P.U.E.) across the frontage of each residential lot. A 10’ wide street tree easement and 15’ P.U.E. shall be provided across the frontage of each commercial or multi-family lot unless reduced with the approval of the City and of PGE. Said easements shall be adjacent to and contiguous with all public right-of-way lines bordering each lot. 10. The subdivider shall include a separate offer of dedication for any offsite easements located outside the tract boundary and/or map phase if needed for orderly development, circulation, access, and/or utility extensions. The developer may, at the discretion of the City, be requested to provide a separate offer of dedication for any easements related to a future map/development phase where said easement(s) may be required for orderly development and might otherwise sunset with a map offer only. 11. Prior to and at the time of approval of the first final map for the project, a Community Facilities District (CFD) or other similar financing mechanism acceptable to the City, shall be fully operational, and all assessments shall be fully authorized and imposed on the project site which are necessary to fully fund, in perpetuity, the maintenance of the phased public improvements to the satisfaction of the City. If necessary, the subdivider shall provide start- up funding for the CFD in an amount to be determined by the City Engineer in the event there is insufficient funding for City to maintain the public improvements until full build-out of the project. Avila Ranch shall include within the Covenants, Conditions and Restrictions (CC&Rs) required for each subdivision of the Property a requirement that the Master Homeowners’ Association, and or each Homeowners’ Association for a subdivision within the Property (each, an “HOA”), shall assume responsibilities to maintain, repair and insure the following items in the event that such financing mechanism is dissolved or in the event that the fees, assessments, or taxes generated thereby are repealed or reduced other than by discretionary action by the City Council. In such event the HOA shall assume responsibility to maintain, repair and insure for the publicly-owned facilities within the Property (as to a Master HOA) or subdivision (as to another HOA), including but not limited to, Parks A through F, H and I, and “Stevenson Park”; landscaped parkways and trees; low-impact- development treatment facilities; riparian open space, but expressly shall not assume responsibility to maintain, repair and insure streets, curbs, gutters, sidewalks, regional parks (Park G), farmed agricultural open space, landscape paseos connecting the public parks, retaining walls adjacent to the open space corridors, bike paths, bike path bridges and bike path facilities (including bike paths and bike path facilities in the County). Avila Ranch shall include the City as a third-party beneficiary of these CC&Rs in language acceptable to the City Attorney, which shall grant the City the right to perform the maintenance, repair and PH 1 - 35 insurance obligations and to impose assessments against the affected parcels in the event an HOA fails to perform its obligations under this subparagraph (4). 12. All private improvements shall be owned and maintained by the individual property owners, a property owner association, or the Homeowner’s Association (HOA) as applicable, or by a Community Facilities District if specifically identified upon the formation of the CFD. Private improvements may include but are not limited to streets/alleys, parking lots, walks and paths, sewer mains/laterals, drainage systems, detention basin(s), lighting, landscape, landscape irrigation, common areas, pocket parks, and linear park improvements. 13. All stormwater treatment facilities shall be owned and maintained by the Homeowners Association, Property Owner Association, property owner association, and/or by individual property owners or by a Community Facilities District if specifically identified u pon the formation of the CFD. All stormdrain facilities shall be private property unless the final map and subdivision improvement plans specifically designates them as offered to the City and the City, in fact, accepts maintenance responsibility for them. A separate encroachment agreement, in a form approved by the City Attorney, shall be recorded for any private stormwater systems, piping, BMP’s, and other components of such systems that are approved for location within the public right-of-way. 14. A notice of requirements or other agreement acceptable to the City of San Luis Obispo shall be recorded upon the City’s written request in conjunction with recordation of each phase of the Final Map to clarify development restrictions, fee payments, conditions of development, and references to any pertinent conditions of approval related to this map, off-site requirements, and/or the interaction of each map phase with a future map and/or development phase. 15. Off-site dedication/acquisition of property for public right-of-way purposes will be necessary to facilitate orderly development, anticipated build-out improvements, and/or to satisfy mitigation measures, conditions of approval, or compliance with City Standards and policies. The subdivider shall work with the City, County of San Luis Obispo, and the land owner(s) to acquire the necessary rights-of-way. In the event the subdivider is unable to acquire said rights-of-way, the City Council may consider lending the subdivider its powers of condemnation to acquire the off-site right-of-way dedication, including any necessary slope and drainage easements. If condemnation is required, the subdivider shall agree to pay all costs associated with the off-site right-of-way acquisition (including attorney fees and court costs). The developer shall confer with the County of San Luis Obispo on any condemnation processes necessary for rights-of-way within the County. 16. With respect to all off-site improvements, prior to filing of the Final Map, the subdivider shall either: a. Clearly demonstrate their right to construct the improvements by showing title or interest in the property in a form acceptable to the City Engineer; or, PH 1 - 36 b. Demonstrate, in writing, that the subdivider has exhausted all reasonable efforts to acquire interest to the subject property and request that the City assist in acquiring the propert y required for the construction of such improvements and exercise its power of eminent domain in accordance with Government Code Section 66462.5 to do so, if necessary. Subdivider shall also enter into an agreement with the City to pay all costs of such acquisition including, but not limited to, all costs associated with condemnation. Said agreement shall be in a form acceptable to the City Engineer and the City Attorney. If condemnation proceedings are required, the subdivider shall submit, in a form acceptable to the City Engineer, the following documents regarding the property to be acquired: i. Property legal description and sketch stamped and signed by a Licensed Land Surveyor or Civil Engineer authorized to practice land surveying in the State of California; ii. Preliminary title report including chain of title and litigation guarantee; iii. Appraisal of the property by a City approved appraiser. In the course of obtaining such appraisal, the property owner(s) must be given an opportunity to accompany the appraiser during any inspection of the property or acknowledge in writing that they knowingly waived the right to do so; iv. Copies of all written correspondence with off-site property owners including purchase summary of formal offers and counter offers to purchase at the appraised price. v. Prior to submittal of the aforementioned documents for City Engineer approval, the Subdivider shall deposit with the City all or a portion of the anticipated costs, as determined by the City Attorney, of the condemnation proceedings. The City does not and cannot guarantee that the necessary property rights can be acquired or will, in fact, be acquired. All necessary procedures of law would apply. Transportation and Subdivision Improvements 17. Secondary access is required from all portions and/or phases of the subdivision where more than 30 dwelling units are proposed. The location and development of the proposed secondary access shall be presented to the City for review and approval prior to the preparation of the related improvement plans or final map approval for each subsequent map or construction phase. Any temporary or permanent emergency access location, construction, and controls shall be in accordance with the Fire Code, City Engineering Standards, and shall be approved to the satisfaction of the Fire Department and Public Works Department. PH 1 - 37 18. Fire Department access shall be provided for each building construction phase to the satisfaction of the Fire Chief. Phased street construction shall consider and provide suitable Fire Department hydrant access, circulation routes, passing lanes, and turn-around areas in accordance with current City codes and standards. 19. All public streets shall conform to City Engineering Standards and the specific plan including curb, gutter, and sidewalk, driveway approaches, and curb ramps as approved by the City Engineer. Where conflicts occur between the City Engineering Standards and concepts identified in the specific plan and/or represented on the tentative map, the City Engineer shall make the final determination of design approval and/or exceptions. 20. All subdivision improvements shall be consistent with the City Engineering Standards except where the applicant has requested and been granted a formal design exception by the City Engineer. Design exceptions shall be requested in a format approved by the City and shall be accompanied by the required application and review fee. The applicant shall summarize the need for the request, alternatives, and may be asked to propose final construction details, specifications, and minimum construction tolerances/testing for review and approval by the City Engineer in support of the request. The re quest shall be approved by the City Engineer prior to submittal of complete public improvement plans. 21. Final street sections shall be approved in conjunction with the review and approval of the final project drainage report. The final design shall consider drainage, transitions, and accessibility. 22. Final traffic circle and roundabout geometry shall be consistent with applicable engineering standards and design guidelines. 23. The developer shall record a Notice of Requirements with each map phase regarding the designed and installed traffic calming devices and that the subdivision is not eligible for a future Residential Parking District or Neighborhood Traffic Management program processing. 24. The improvement plans shall include a line-of-sight analysis at applicable intersections to the satisfaction of the Public Works Department. Fence heights and plantings in the areas of control shall be reviewed in conjunction with the analysis. A separate recorded agreement or Notice of Requirements for private property owner, HOA, or CFD maintenance of sight lines may be required as a condition of the City Engineer’s approval of the development plans. 25. The subdivision improvement plans shall include full on-site and any off-site public and private improvements as required to satisfy all mitigation measures, specific plan requirements, and conditions of approval. The plans shall comply with the City Engineering Standards, Bike Plan, Community Design Guidelines, Cal Trans Highway Design Manual, Specific Plan, City policies, and applicable County of San Luis Obispo Public Improvement Standards. PH 1 - 38 26. Separate plans and permits are required from the County of San Luis Obispo for work or construction staging within County public rights-of-way. Said plans shall be provided to the City of San Luis Obispo for review and approval of consistency with the project mitigation measures, conditions of approval, Development Plan, Specific Plan, and conformance with the subdivision improvements. 27. Unless otherwise specifically approved and accepted for over-sight by the City, all stormwater BMP’s related to the widening and/or extension of Buckley Road shall be subject to the review and approval of the County of San Luis Obispo. The encroachment permit issued for this work will establish additional conditions and restrictions that may require maintenance responsibilities be provided by the CFD or HOA, in perpetuity. 28. Detailed plans shall be provided for any off -site or out-of-phase improvements in conjunction with the proposed phasing plans unless preliminary or final designs are needed for orderly development and/or to substantiate the design of an adjoining phase. 29. Any jurisdictional permits from authorities other than the City, including but not limited to, those from the Army Corps of Engineers, California Fish and Wildlife Service, and the Regional Water Quality Control Board shall be obtained prior to the City’s approval of improvement plans and the Developer’s commencing with work for any construction phase subject to the jurisdiction of such regulatory agencies. 30. Access rights shall be offered for dedication to the City and/or County of San Luis Obispo along Buckley, South Higuera, Vachell, Earthwood, Venture, and Jespersen except at approved driveway locations. 31. The subdivider shall install public street lighting and all associated facilities including but not limited to conduits, sidewalk vaults, fusing, wiring, and luminaires along all existing and proposed City streets per City Engineering Standards, and each proposed and existing intersection with Buckley Road per the County of San Luis Obispo Public Improvement Standards. 32. Private street lighting may be provided along the private streets/alleys/parking areas, pocket parks, and linear parks per City Engineering Standards and/or as approved in conjunction with the final ARC approvals. 33. Street trees are required as a condition of development. Street trees shall generally be planted at the rate of one 15-gallon street tree for each 35 lineal feet of property frontage. Landscape plans may include grouping of trees to vary this standard to honor site/public improvements, achieve visual variety, or to honor line-of-sight corridors within the subdivision. Trees and other landscaping proposed in the County right-of-way must be approved by County Public Works, and the encroachment permit will establish maintenance and liability conditions, in perpetuity. 34. The public improvement plans shall provide a final analysis of the trees to be removed and trees to be retained. The existing trees located along or across the tract boundary, within areas of utility work, and/or within vacant lots proposed for future development shall be PH 1 - 39 specifically identified in those plans as removed or retained. The plan/map submittals shall include a tree preservation plan and/or notice of requirements attached to the final map. Trees not previously noted and approved for removal shall be retained unless otherwise specifically approved for removal by the City. A tree preservation plan shall be provided by a Certified Arborist and approved by the City for any trees to remain or to be relocated. 35. Improvement plans for the entire subdivision, including any off-site improvements shall be approved to the satisfaction of the Public Works Department, Utilities Department, and Fire Department prior to map recordation. Off-site improvements may include but are not limited to roadways, sewer mains, water mains, recycled water mains, and storm drain improvements. Off-site improvements may include off-site access roadways, transportation improvements, and utility system improvements. 36. A separate demolition permit will be required from the Building Division for the removal of any existing structures and related infrastructure. Building removals are subject to the Building Demolition Regulations including the additional notification and timing requirements for any structure over 50-years old. 37. The improvement plans shall clearly show all existing structures, site improvements, utilities, water wells, septic tanks, leach fields, gas and wire services, etc. The plan shall include any pertinent off-site water well and private waste disposal systems that are located within regulated distances to the proposed drainage and utility improvements. The plan shall include the proposed disposition of the improvements and any proposed phasing of their demolition and removal. 38. The map and improvement plans shall show and clarify the extent of all existing public and private easements. The developer shall provide any additional clarification regarding the use and disposition of any water wells. Any private water well service piping that crosses or is proposed to cross an existing or future public right -of-way shall be approved by the City and shall be covered by an Encroachment Agreement to be recorded in a format approved by the City. The developer shall provide any additional clarifications, amendments, and/or quit-claims on any outstanding private easement agreements, as necessary. 39. Street paving shall be phased in accordance with City Engineering Standard 7110 unless un-phased construction is otherwise specifically approved by the City Engineer. Phased construction of the new street pavement shall provide for the ultimate structural street section and pavement life per the City's Pavement Management Plan and City Engineering Standards. The engineer of record shall detail the phased paving requirement in the public improvement plans to the satisfaction of the City Engineer. 40. The improvement plan submittal shall include a complete construction phasing plan in accordance with the mitigation measures, conditions of approval, City codes, and standards. A truck circulation plan and construction management and staging plan shall be included with any demolition, stockpile, grading, or improvement plan submittal. General truck routes shall be submitted for review and acceptance by the City. The engineer of record shall provide a summary of the extent of cut and fill with estimates on the yards of PH 1 - 40 import and export material. The summary shall include rough grading, utility trench construction, road construction, AC paving, concrete delivery, and vertical construction loading estimates on the existing City of San Luis Obispo roadways. The developer shall either: 1) complete roadway deflection testing before and after construction to the satisfaction of the City Engineer and shall complete repairs to the pre-construction condition, or 2) shall pay a roadway maintenance fee in accordance with City Engineering Standards and guidelines, or 3) shall propose a pavement repair/replacement program satisfactory to the City Engineer. The roadway impacts analysis and mitigation strategy shall be approved prior to commencing with grading or construction. 41. The developer shall acquire and provide a copy of the County as-built or record improvement plans for Venture Lane and the adjoining improved sections of Vachell Lane. The as-built condition of improvements and pavement design life analysis shall be approved to the satisfaction of the City Engineer. The subdivision improvement plans shall show and note any upgrades to Venture and Vachell Lane, the City Engineer determines are required to meet current ADA and City Engineering Standards prior to acceptance of the improvements. 42. Street lighting, signage, striping, and street signage upgrades may be required per City Engineering Standards for the intersection of Venture and Vachell. Any required improvements shall be included in the subdivision improvement plans. 43. Retaining wall and/or retaining wall/fence combinations along property lines shall be approved to the satisfaction of the Planning Division and shall conform with the zoning regulations for allowed combined heights or shall be approved through the ARC, Specific Plan, or separate Fence Height exception process. 44. The ARC plans and public improvement plans shall show the location of the proposed mail receptacles or mail box units (MBU’s) to the satisfaction of the Post Master and the City Engineer. The subdivider shall provide a mailbox unit or multiple units to serve all dwelling units within this development as required by the Post Master. MBU’s shall not be located within the public right-of-way or public sidewalk area unless specifically approved by the City Engineer. Contact the Post Master at 543-2605 to establish any recommendations regarding the number, size, location, and placement for any MBU’s to serve the several neighborhoods and occupancies. 45. Porous concrete, pavers, or other surface treatments as approved by the City Engineer shall be used for private parking areas, V-gutters, private curb and gutter, etc. to the extent feasible within the over-all drainage design for water quality treatment/retention in accordance with the specific plan and General Plan. 46. The subdivision improvement plans shall show that accessibility to all common areas, linear parkways, and connecting neighborhood paths/trails is achieved per the ADA and the California Building Code to the satisfaction of the City Engineer and Building Official. Utilities PH 1 - 41 47. Potable city water shall not be used for major construction activities, such as grading and dust control, as required under Prohibited Water Uses; Chapter 13.07.070.C of the City’s Municipal Code. An annual Construction Water Permit is available from the City’s Utilities Department. Recycled water is readily available near the intersection of South Higuera and Suburban Road, and shall be stubbed within the project site with a temporary filling station / recycled water hydrant assembly before grading operations begin. 48. Prior to issuance of a building permit in phase 1, the development’s recycled water system shall have: an 8-inch recycled water system along Suburban Road from South Higuera to Earthwood Lane, and along Earthwood Lane from Suburban Road to Venture Drive. Subsequent phases of the development will need to add an 8 -inch recycled water system along Venture Drive from Earthwood Lane to Jespersen Road, along Jespersen Road from the south end of Horizon Lane to Buckley Road, and along Buckley Road from Jespersen Road to the east boundary of the subdivision. 49. Water flow rates and velocities shall comply with the requirements of the 2016 Potable Water Distribution System Operations Master Plan. The City of San Luis Obispo shall be the sole water purveyor for water services within the proposed development, which shall comply with all municipal code requirements. Prior to issuance of a building permit in Phase 1, the development’s water system shall have: a 12-inch water main extending southerly along Vachell Lane from South Higuera to Earthwood Lane, along Earthwood Lane from Vachell Lane to Suburban Road. Phase 1 shall also include a pressure reducing valve (PRV) station at the intersection of Vachell Lane and Venture, and a second PRV at the intersection of Earthwood Lane and Suburban Road. Each PRV station shall include a primary and a secondary pressure reducing valve, a radio survey, telemetry radio, control panel, logic, and all auxiliary infrastructure for creation of a new pressure zone. Subsequent phases of the development shall add a 12-inch water main extending along Jespersen Road from Hughes Lane to Buckley Road, and along Buckley Road from Jespersen Road to the east boundary of the subdivision. 50. Sewer flow rates and velocities shall comply with the requirements of the 2016 Wastewater Collection System Infrastructure Renewal Strategy. Prior to issuance of a building permit in Phase 1, the development’s sewer system shall have: an 8-inch corrosion resistant gravity sewer main extending along Tank Farm Road from the Tank Farm Lift Station to Long Street; a 6-inch sanitary sewer force-main extending from Tank Farm Road along Long Street continuing through public roads to the Buckley Lift Station. The Buckley Lift Station shall be designed to collect and transmit the flow rates of each development phase, meet scour velocities in the force-main, include a duplex station with pre-rotation basins, a natural gas stand-by generator, surge control valves, and a block wall around the perimeter of the station. All associated permits, easements, fees, and appurtenances shall be provided for construction of a functional lift station. Subsequent phases of the development shall add a sewer collection system that flows by gravity into the Buckley Lift Station without the use of siphons, and shall provide additional pump capacity needed at Tank Farm Lift Station for build out conditions. 51. Separate utilities, including water, sewer, gas, electricity, telephone, and cable TV shall be served to each lot to the satisfaction of the Public Works Department and serving PH 1 - 42 utility companies. Fiber-optic communication shall be provided from the existing lift station to the new lift station and proposed park. All public and private sewer mains/laterals shall be shown on the public improvement plans and shall be constructed per City Engineering Standards unless a waiver or alternate standard is approved by the City. The plans shall clearly delineate and distinguish public and private improvements. 52. All proposed utility infrastructure shall comply with the latest engineering design standards effective at the time of improvement plan approval, and shall have alignments for maintenance of public infrastructure acceptable to the Public Works Department. All public utilities shall be within the public right of way, and final alignments of all water and sewer mains shall be approved by the Utilities Engineer. 53. All existing sewer and water infrastructure impacted by the proposed road improvements located outside of the tract boundary shall be relocated by the development per the Engineering Design Standards and to the satisfaction of the Utilities Director. 54. City utilities proposed for location/encroachment within the County portions of Buckley Road, Buckley Road extension, and Vachell Lane shall be approved by the City and County via an encroachment permit issued by the County to the developer or City, and prior to approval of the improvement plans. If an encroachment permit is not issued by the County, the plans shall be revised to omit said encroachment(s). 55. The subdivision grading and improvements plans shall clearly show the horizontal and vertical alignment of the existing high pressure gas main for reference. The plans shall honor the existing easement provisions, line location and protections to the sati sfaction of the Gas Company. 56. Final grades and alignments of all public and/or private water, recycled water, sewer and storm drains shall be approved to the satisfaction of the Public Works Director and Utilities Department. The final location, configuration, and sizing of on-site service laterals and meters shall be approved in conjunction with the review of the building plans, fire sprinkler plans, and/or public improvement plans. 57. The limit, extent, and method of termination for all public utilities shall be approved for each map/construction phase to the satisfaction of the City Utilities Engineer. Redundant mains or mainlines located with limited access for maintenance may need to be redesigned prior to issuance of a building permit and as directed by the Utilities Engineer. The extension of mainlines along the subdivision boundary/frontage may be required for orderly development prior to issuance of a building permit and as a directed by the Utilities Engineer. 58. Unless otherwise approved by the City Engineer, the gas main shall be located in a joint trench in accordance with PUC and utility company standards to provide additional clearances within the pavement section of all streets to accommodate the several City public utility mains. PH 1 - 43 59. The improvement plans shall show the location of all domestic and landscape water meters. The plan shall include service lateral sizes and meter sizes. Sizing calculations shall justify service and meter sizing prior to issuance of a building permit and to the satisfaction of the Utilities Director. Water impact fees related to the irrigation water meter(s) shall be paid prior to approval of the subdivision improvement plans for each map and/or construction phase depicting that meter or those meters. 60. A final sewer report and supporting documentation for the design of the public sewer mains shall be approved by the Utilities Department prior to approval of the public improvement plans. The depth of the off-site and on-site sewer mains shall be approved to the satisfaction of the Utilities Director. Alternatives to extend the sewer collection system along the Buckley Road extension from Vachell Lane to South Higuera shall be included in the sewer report, and sewer easements shall be identified by the developer from the county to intercept existing se wer mains east of Highway 101. 61. The public improvement plan submittal shall show all existing and proposed overhead wire utilities. Any existing overhead primary and secondary wiring within the tract boundary shall be undergrounded in conjunction with the subdivision improvements. Unless otherwise specifically approved, pole relocation in lieu of undergrounding is not permitted. Off-site service drops shall be eliminated. The new service feeds for the subdivision shall be completed by underground wiring without a net increase in utility poles. Terminal end utility poles shall be located off-site unless otherwise approved by the City. 62. Any widening of streets with existing overhead wire utilities shall include the undergrounding of the existing wiring. The City Engineer may require replacement streetlights per City Standards where streetlights exist on wood poles. 63. The developer shall exhaust all reasonable efforts to eliminate or underground the existing overhead wiring located along the tract boundary. The elimination and/or undergrounding shall consider existing services and/or utilization equipment to remain. The plan to eliminate, reduce, or underground the existing services shall be approved to the satisfaction of the City, Cal Trans, PGE, and billboard easement grantee. Undergrounding service to any existing or proposed water well shall consider standard farming operations and the depth of deep ripping. Any proposal for partial undergrounding, waiver, or deferral shall be subject to the approval of the Community Development Director. 64. Preliminary undergrounding plans for the entire subdivision shall be processed through PGE and any respective wire utility companies in conjunction with public improvement plan submittal. The preliminary PGE plans/memo shall be provided to the engineer of record and the City for review and approval prior to commencing with the PGE final handout package. The final PGE handout package shall be approved by the engineer of record and City prior to commencing with construction. 65. Irrigation systems using recycled water shall be designed and operated as described in the City’s Procedures for Recycled Water Use, including the requirement that sites utilizing recycled water require backflow protection on all potable service connections. Three sets of PH 1 - 44 irrigation plans shall be submitted for review during the City’s improvement plan and/or building permit review process. The public neighborhood park within the 11.55-acre parcel located in the eastern part of the development can have the option of using a groundwater well for irrigation, in accordance with the municipal code, in addition to the recycled water service being provided by the vesting tentative map. 66. The project’s Landscape Plan shall be consistent with provisions of the City’s water conservation efforts in effect at the time of development, requiring an Estimated Total Water Use (ETWU) below the Maximum Applied Water Allowance (MAWA). Grading, Drainage, & Stormwater 67. Any permit approvals required from the Army Corps of Engineers, California Fish and Wildlife Service, or the Regional Water Control Board shall be secured and presented to the City prior to the approval of any subdivision grading and/or improvements related to the jurisdictional area for each construction phase. The engineer of record shall review the permit approvals and any specific permit conditions for compliance with the plans, subdivision improvement designs, drainage system design/report, and soils report. The engineer of record shall forward the permits to the City with a notation that he or she has reviewed the and determined that the design of the improvements are in general conformance with the permits. 68. The public improvement plans submittal shall clarify how any wetlands, creek corridors, and riparian habitat areas will be preserved to the satisfaction of the Natural Resources Manager. Include any specific details for the proposed creek crossings in accordance with any preservation strategies, mitigation measures, and other requirements and needed permits from agencies with jurisdiction or permitting authority. Sensitive areas shall be staked, fenced, or otherwise delineated and protected prior to commencing with construction, grading, or grubbing. 69. The developer shall exhaust reasonable efforts to eradicate and control the expansion of any known non-native invasive plant species to the satisfaction of the Natural Resources Manager. These plants may require treatment in advance and prior to commencing with ground disturbing activities and grading. 70. Expansion index testing or other soils analysis may be required on a lot-by-lot basis for all graded pads and for in-situ soils on natural lots in accordance with the current Building Codes or as otherwise deemed necessary by the City Engineer or Building Official. 71. Final pad certifications shall include the certification of pad construction and elevations. The soils engineer shall certify all grading prior to acceptance of the public improvements and/or prior to building permit issuance. The certification shall indicate that the graded pads are suitable for their intended use. PH 1 - 45 72. Cut and fill slopes shall be protected as recommended by the soils engineer. Brow ditches, drainage collection devices, and drainage piping may be required. The public improvement plans and final map shall reflect any additional improvements and private easements necessary for slope protection and maintenance. Unless otherwise approved for public maintenance by the City Engineer, brow ditches and drainage collection devices shall be maintained by private property owners, a property owner association, CFD, Homeowners Association, or funded by another Funding Mechanism. 73. A separate easement agreement for the existing unnamed channels, drainages, and creek corridors shall be approved to the satisfaction of the City. The easement agreement shall be in a format provided by the City. The agreement shall include the CFD, Home owners Association, or private property owner maintenance responsibilities, limitations in use within the easement area, and City access rights for maintenance in an emergency or if the responsible party fails to maintain. 74. The subdivision improvement plans shall include a complete grading plan to show site accessibility in accordance with State and Federal regulations for all public and/or private roads, transit stops, trails, paths, walks, bikeways, parks, and bridges where applicable. The submittal shall provide additional analysis if site accessibility will not be provided and for any feature or element where accessibility is purportedly not required. The accessibility regulations or guidelines in effect at the time of subdivision improvement construction will be applied. 75. The subdivision improvement plans, grading plans, drainage plans, and drainage reports shall show and note compliance with City Codes, Standards and Ordinances, Floodplain Management Regulations, specific plan stormwater provisions, Waterways Management Plan Drainage Design Manual, and the Post Construction Stormwater Regulations as promulgated by the Regional Water Quality Control Board, whichever pertinent sections are more restrictive. 76. The final grading/retaining wall designs proposed along the creek corridors shall by approved to the satisfaction of the City Engineer, Community Development Director, and Natural Resources Manager. The developer shall exhaust all reasonable efforts to provide natural slopes, planted rock slopes, gravity walls, stacked rock walls, or other approved materials. Wall designs shall comply with City Engineering Standards, the Waterway Management Plan, and City policy/design guidelines. The preferred wall design(s) may require additional encroachment into the channel and/or adjoining developed lands. 77. The improvement plan submittal shall include a complete grading, drainage, and erosion control plan. The proposed grading, drainage plan, and reports shall consider the proposed construction phasing. Historic off-site and upslope watersheds tributary to the area of phased construction shall be considered. Run-on from all adjoining developed or undeveloped parcels shall be considered. 78. The final drainage report and improvement plans shall consider the drainage impacts from both the existing phase 1 construction and build-out run-on from Tract 2943 (Earthwood). PH 1 - 46 79. The final drainage report and improvement plans shall consider run-on from the developed parcel at 125 Venture. The plans shall clarify the purpose and intent of the existing partially failed concrete channel located near the toe of slope along the easterly and southerly property lines of 125 Venture. The developer shall work with the upslope property owner to resolve any maintenance issues, shall accept the drainage, or shall notify the City of any alternate strategy to address any current drainage system failures, concentrate drainage, and erosive outlet(s). 80. The final drainage report and improvement plans shall consider run -on from the undeveloped parcel located at the northeast corner of Vachell and Venture. The plans shall clarify how the historic drainage will be collected and conveyed in an approved manner to a non-erosive outlet. Off-site improvements necessary to re-direct, collect, and/or convey the drainage shall be included in the subdivision improvement plans. 81. The project plan and reports shall show compliance with the City’s Floodplain Management Regulations and FEMA requirements. Portions of the project are located within an unstudied A zone. The required Conditional Letter of Map Revisions Based on Fill (CLOMR-F) shall be processed and approved by FEMA prior to commencement of construction or placement of fill within the Special Flood Hazard Area (SFHA). The final LOMR-F shall be submitted to FEMA, along with the required Community Acknowledgement form, within 6 months of the completion of the grading for each pertinent phase of construction. The Community Acknowledgement form may require the signatures of both the City of San Luis Obispo and County of San Luis Obispo. The LOMR-F shall be approved by FEMA prior to acceptance of the final building pad and development grades by the City of San Luis Obispo and prior to building permit issuance. 82. The revised 100-year flood limits shall be shown and noted on the improvement plans and an additional final map sheet for reference. The drainage report and final plans shall clarify the 100-year flood elevations, clearances, and freeboard at all new vehicle bridge, pedestrian/bike bridge, and any pipe bridge crossings of the creek corridors. 83. The improvement plans shall clarify the extent of improvements at each respective water well site related to the proposed grading, grade lowering, etc. The plan shall include any alterations to well head and appurtenant electrical service, pumps, and panel boards. The plans shall show and note compliance with the City’s Floodplain Management Regulations, adopted Building Code/Electrical Code, and Department of Water Resources requirements for protection of the service equipment and the well/groundwater. 84. The engineer of record shall provide a digital copy of the final Hydrologic Engineering Center’s River Analysis System (HEC-RAS) modeling to the City in accordance with Section 4.0 of the Waterways Management Plan Drainage Design Manual. 85. The final drainage report, Post Construction Stormwater Regulation compliance strategy, and improvement plans shall include all required design details. The final reports and O & M Manual shall consider any need for on-going maintenance. The plan shall include reasonable provisions for the capture of silt, trash, and debris through pre-basins or other methods to minimize the impacts to the detention basin(s). PH 1 - 47 86. The final stormwater reports, plan, and program shall include consideration of solid waste/trash and floating trash removal from the stormdrain system and BMP’s prior to discharge to the adjoining creeks and/or waterways. The strategy shall consider any City or State regulations or guidelines regarding trash removal available at the time of public improvement plan development and shall be approved to the satisfaction of the City Engineer. 87. The developer shall prepare an Operations and Maintenance Manual for review and approval by the City in conjunction with the development of any stormwater BMP’s that will be maintained by the Homeowners Association, Property Owner Association, CFD, or by private property owners. A Private Stormwater Conveyance Agreement shall be recorded in a format provided by the City prior to final inspection approvals and acceptance of subdivision improvements. 88. The subdivider/developer shall provide notification to private property owners regarding any individual maintenance responsibility of any parkway or backyard stormwater BMP’s in accordance with Section E.2 of the RQWCB Resolution R3-2013-0032. The notification may be by Notice of Requirements or other method acceptable to the City. 89. The stormwater improvements other than City Standard public storm drain infrastructure shall be maintained by CFD, private property owners, property owner association, and/or an HOA. A separate encroachment/hold harmless agreement may be required in conjunction with certain improvements proposed for location within the public rights-of- way. 90. The final details for any proposed bio-retention facilities or other stormwater BMP’s located within the public right-of-way shall be approved to the satisfaction of the City Engineer. The project soils engineer shall review and provide recommendations on any proposed site-constructed and/or proprietary retention systems. Analysis of impacts to the public improvements, protection of utilities, and methods to minimize piping and protection of private properties shall be addressed in the final analysis. 91. The proposed detention basins and any pre-basin shall be designed in accordance with the Waterways Management Plan Drainage Design Manual. The proposed surface runoff and drainage from the detention basin(s) shall include a non-erosive outlet to an approved point of discharge. The outlet(s) design and location should replicate the historic drainage where feasible. Any off-site detention basin, temporary basin, or other drainage improvements shall be subject to approval by the City. Any required or proposed off-site grading or drainage improvements shall be completed within recorded easements or under an appropriate license or other private agreement. 92. If applicable, the CC&R’s shall entitle the owners of the commercial lots, and any parcels resulting from the further subdivision of those parcels to annex to the HOA to allow a common stormwater management strategy for the subdivision, at the option of those owners unless they will otherwise be self-contained in regards to stormwater requirements. The subsequent development/re-subdivisions may, at the sole discretion of those PH 1 - 48 developers or subdividers, annex to the HOA, or demonstrate to the satisfaction of the City how they will provide storm drainage mitigation through their own development strategies and/or subdivision designs and their own Homeowners Association/property owner associations. The association or private property owner shall provide for maintenance of all private common area drainage channels, on-site and/or sub-regional drainage basins, water quality treatment and conveyance improvements. The CC&R's shall be approved by the City and shall be recorded prior to or concurrently with recordation of the Final Map. A Notice of Annexation or other appropriate mechanism to annex future phases of the subdivisions into the HOA, including but not limited to any shared regional detention basin, shall be recorded concurrently with the map. 93. Any existing areas of swale, creek and/or channel erosion shall be stabilized to the satisfaction of the City Engineer, Natural Resources Manager, and other permitting agencies. The existing channel shall be cleared of any illegal dumping, construction debris, grade level crossings, or other deleterious material to the satisfaction of the City Natural Resources Manager. 94. The project soils engineer shall review the final grading and drainage plans and Low Impact Development (LID) improvements. The soils report shall include specific recommendations related to public improvements, site development, utility, and building pad/foundation construction related to the proposed LID improvements. The project soils engineering report shall be referenced on the final map in accordance with the Subdivision Regulations and City Engineering Standards. 95. A Storm Water Pollution Prevention Plan (SWPPP) is required in accordance with State and local regulations. A hard copy of the SWPPP shall be provided to the City in conjunction with the Public Improvement Plan submittal and subsequent building plan submittals. The Water Discharge Identification (WDID) number shall be included by reference on all construction plans sets. An erosion control plan shall be included with the improvement plans and all building plan submittals for demolitions, grading, and new construction. 96. The project development and grading shall comply with all air quality standards and mitigation measures. The developer shall provide written notification from the County Air Pollution Control District (APCD) to the City regarding compliance with all local, state, and federal regulations including but not limited to the National Emission Standards for Hazardous Air Pollutants (NESHAP) regulations related to Naturally Occurring Asbestos (NOA) prior to plan approval, permits, and commencing with development grading. Transportation Division - Public Works Department 97. Unless a design exception is approved by the Public Works Director, the final map shall conform to City adopted Engineering Standards, Engineering Specifications, Policies and Plans. 98. Project construction and infrastructure shall be completed in the sequential phase order as PH 1 - 49 evaluated in the Avila Ranch Final EIR and Transportation Impact Study, or as agreed to between the City and Developer. If phasing is modified, amendments to the Development Plan and EIR may be required. 99. The applicant shall submit a final Transportation Improvement Phasing Plan for each final map development phase of the Project for City review and approval prior to recordation of the first final map. 100. Buckley Road Extension The Buckley Road Extension from Vachell to South Higuera Street, which includes a Class I bicycle path to the north side of the road, Class II bicycle lanes on both sides of the road; improvements to the intersection of Buckley Road at Higuera Street including widening of Higuera Street for dedicated northbound right turn lane and southbound left turn lane; installation of a traffic signal with pedestrian crossing devices (including striping and signage) and streetlights; and improvements to the intersection of Buckley Road at Vachel Lane including widening of Vachel Lane for dedicated southbound right and left turn lanes, widening of Buckely Road for a dedicated eastbound left turn lane, and installation of street lights, shall be constructed by the subdivider prior to issuance of the occupancy permit for the first unit of Phase 2 development. Design and construction of these improvements shall be initiated by the applicant prior to issuance of building permits for Phase 2. In conjunction with these improvements, the applicant shall be responsible for submitting improvement plans for retiming of the traffic signal at South Higuera & Los Osos Valley Road, and for installation of signage at the South Higuera & Buckley intersection to inform drivers of additional access to Highway 101 at Ontario Road. Prior to recordation of the Phase 1 final map, the applicant shall complete the design of these improvements and exhaust all feasible efforts to acquire the necessary off-site dedications, easements and agreements for construction, all to the satisfaction of the Public Works Director. Please refer to Engineering Development Review condition on dedications and easements. 101. Earthwood Lane Extension The extension of Earthwood Lane from the project site north to its existing terminus south of Suburban shall be constructed by the subdivider prior to issuance of building permits for Phase 1 development. This extension shall be constructed to full City Standards for a residential collector with a width of 44 to 60 feet. The cross section for the off-site extension of Earthwood shall be modified in the final map to include eight-foot Class II bike lanes in place of on-street parking. The applicant shall be responsible for addition of curb markings, striping and signage to prohibit on-street parking on one side of the street in order to add Class II bike lanes along the existing segment of Earthwood Lane south of Suburban. Prior to recordation of the final map, the applicant shall complete the design of these improvements and exhaust all feasible efforts to acquire the necessary off-site dedications, easements and agreements for construction, all to the satisfaction of the Public Works Director. Please refer to Engineering Development Review condition on dedications and easements. The existing section of Earthwood lane shall be restriped to add Class II bike lanes by removing parking on one side of the street. The striping design shall be determined as part PH 1 - 50 of preparation of the Public Improvement Plans in consultation with surrounding property owners. 102. Suburban Road Improvements The subdivider shall prepare a detailed improvement plan for Suburban Road to bring this road into conformance with City Standards for a commercial collector road with a width of 44 to 68 feet. Improvements include widening of substandard sections near the east end of the roadway, completion of sidewalk segments, installation of street trees, pedestrian crossings, addition of Class II bike lanes, and striping improvements at the South Higuera & Suburban intersection to extend the length of the westbound left- and right-turn lanes. Improvements from South Higuera to Earthwood shall be designed and construction shall be initiated prior to issuance of building permits for Phase 1 development. Improvements shall be completed prior to issuance of an occupancy permit for the 1st residential unit of Phase 1 development. Improvements from Earthwood to Horizon/Jespersen shall be designed and construction shall be initiated prior to issuance of building permits for Phase 4 development. Improvements shall be completed prior to issuance of an occupancy permit for the 100th residential unit of Phase 4 development. Prior to recordation of the final map for each phase, the applicant shall complete the design of these improvements and exhaust all feasible efforts to acquire the necessary off-site dedications, easements, and agreements for construction all to the satisfaction of the Public Works Department. Please refer to Engineering Development Review condition on dedications and easements. 103. Vachell & Venture, Vachell & Earthwood Ingress and egress to the development in Phase 1 at the intersections of Vachell & Venture and Vachell & Earthwood shall be restricted to emergency vehicles, transit, bicycles and pedestrians only. Construction of access restrictions shall be completed by the subdivider and operational prior to occupancy of Phase 1 development, but may also need to be completed during construction periods to mitigate vehicle intrusion to the satisfaction of the Public Works Director. These access restrictions shall be removed upon completion of the Buckley Road Extension in Phase 2. 104. South Higuera & Vachell Measures to restrict left turns into and out of the intersection of South Higuera & Vachell shall be constructed by the subdivider after the Buckley Road Extension is completed under Phase 2 of the Development Plan. Improvements shall be designed and construction shall be initiated prior to issuance of building permits for Phase 2 development. Improvements shall be completed prior to issuance of the occupancy permit for the first residential unit of Phase 2 development. 105. Vachell Lane Bike Lanes Unless otherwise approved by the Public Works Director, prior to issuance of building permits for Phase 1, the subdivider shall install Class II bicycle lanes along Vachell Lane between Buckley and South Higuera. Work within the County right-of-way shall require an encroachment permit by the County Department of Public Works which may establish additional conditions. PH 1 - 51 106. Jespersen Road/Horizon Lane Connection to Suburban The subdivider shall prepare a detailed improvement plan for the Jespersen Road/Horizon Lane connection between Suburban Road and the project boundary to bring this road into conformance with City standards for a commercial collector of width between 44 and 60 feet. This shall include improvements to the intersection of Suburban and Horizon/Jespersen to be consistent with City Engineering Standards. Construction of these improvements shall be initiated prior to issuance of building permits for Phase 4 development and improvements shall be completed by the subdivider and open to travel prior to issuance of an occupancy permit for the 100th residential unit of Phase 4 development. Prior to recordation of the final map the applicant shall complete the design of this improvement and exhaust all feasible efforts to acquire the necessary off-site dedications, easements, and agreements for construction all to the satisfaction of the Public Works Department. Please refer to Engineering Development Review condition on dedications and easements. 107. Buckley Road Frontage Improvements Design and construction of all Buckley Road improvements along the project frontage from the Tank Farm Creek Bridge to the eastern site boundary, including but not limited to, a Class I path to the north side of the road and Class II bike lanes, shall be initiated prior to issuance of building permits for Phase 4 development. Improvements shall be completed no later than the issuance of an occupancy permit for the 50th residential unit of Phase 4 development. 108. Buckley Road Intersection Connections All new intersection connections to Buckley Road shall include, but not be limited to, widening of Buckley Road at each proposed intersection to the subdivision for a dedicated left turn lane, widening in accordance with HDM 405.7 for high speed intersections, and installation of street lights. All work shall require an encroachment permit issued by the County. 109. Buckley Road Bicycle Bridges at Tank Farm Creek. A separate bicycle bridge shall be constructed on each side of the existing The Buckley Road–Tank Farm Creek bridge (two total bicycle bridges). Improvements shall be constructed concurrently with the extension of Buckley Road to South Higuera prior to Phase 2. 110. Earthwood & Venture, Jespersen & Venture, Jespersen & Wright Brothers. Single lane roundabouts shall be constructed by the subdivider at the intersections of Earthwood & Venture (Phase 1), Jespersen & Venture (Phase 4) and Jespersen & Wright Brothers Way. (Phase 4) prior to the issuance of building permits for the phase in which each is to be constructed. Prior to recordation of the final map, the applicant shall complete the design of the roundabouts to the satisfaction of the Public Works Director. The final map shall reflect any lot adjustments resulting from final roundabout design. 111. South Higuera Pedestrian Improvements. The subdivider shall design and construct ADA-compliant sidewalks and pedestrian ramps on the east side of South Higuera to provide a continuous path of travel from Vachell Lane to the City Limit. Design and construction of improvements between Vachell Lane and Los Osos Valley Road shall be initiated prior to issuance of building permits for Phase 1 development. Improvements shall PH 1 - 52 be completed prior to issuance of an occupancy permit for the first residential unit of Phase 1 development. Design and construction of improvements between Los Osos Valley Road and the City Limit shall be initiated prior to issuance building permits for Phase 2 development. Improvements shall be completed prior to issuance of an occupancy permit for Phase 2 development. 112. South & Higuera. The subdivider shall design and construct the extension of the northbound right-turn lane from Higuera to South as illustrated in Figure 3.12-4 of the project EIR. Design and construction of improvements shall be initiated prior to issuance of building permits for Phase 1 development. Improvements shall be completed and operational prior to the issuance of occupancy permits for the first residential unit for Phase 1 development. These improvements may be eligible for credits for project payments of the Citywide TIF program, as determined by the Public Works Director. 113. South Higuera & Prado Near-Term Improvements. The City will undertake widening of the Prado Road Bridge and installation of a second northbound left-turn lane at the intersection of South Higuera & Prado as a capital improvement project. The applicant shall also contribute a fair share fee for widening of the Prado Road Bridge just west of South Higuera through payment of applicable Citywide transportation impact fees. If the City amends the Citywide TIF or AASP impact fee program to include installation of a second northbound left-turn lane at the South Higuera & Prado intersection, payment of these impact fees shall suffice as appropriate mitigation for the project’s participation in these improvements. If the Citywide TIF or AASP impact fee programs are not amended to include this improvement, the City may establish an ad hoc fee program for that purpose. The applicant shall pay its fair share of the improvement by payment of the amended Citywide TIF or the ad hoc fee. 114. Tank Farm & South Higuera Near-Term Improvements. The subdivider shall design and construct the extension of the second southbound left-turn lane from Higuera to Tank Farm. Design and construction of improvements shall be initiated prior to issuance of building permits for Phase 1 development. Improvements shall be completed and operational prior to the issuance of occupancy permits for the first residential unit for Phase 1 development. These improvements are part of the AASP financing plan and may be eligible for credits or reimbursements, as determined by the Public Works Director. 115. Prior to issuance of building permits, the subdivider shall pay applicable Citywide, Los Osos Valley Road Subarea and AASP Subarea transportation impact fees. 116. Prior to recordation of the final map for each development phase, the subdivider shall pay its fair share mitigation costs proportional to each phase for the intersection improvements prescribed in the project EIR (see Table 29 of Appendix P – Transportation Impact Study). Additional fair share mitigation contributions for cumulative project impacts are required as follows: a. Buckley & State Route 227. The applicant shall pay fair share mitigation fees to fund the installation of a roundabout at the intersection of Buckley & State Route 227. If the City amends the AASP impact fee program to include this improvement, PH 1 - 53 this fee will suffice as appropriate mitigation for the project’s participation in the improvements at this intersection. The applicant shall pay the applicable impact fees prior to issuance of a building permit for each unit. If the AASP impact fee program is not amended to include the improvement, the applicant shall pay its fair share mitigation cost as prescribed in the project EIR prior to recordation of the final map for Phase 1. b. South Higuera & Los Osos Valley Road. The applicant shall pay fair share mitigation fees to fund the installation of a second southbound right-turn lane at the intersection South Higuera and Los Osos Valley. If the City amends the Citywide TIF program to include this improvement, this fee will suffice as appropriate mitigation for the project’s participation in these improvements and shall be paid prior to issuance of building permits for each phase. If the Citywide TIF is not amended to include this improvement, the City may establish an ad hoc fee program for that purpose and the applicant shall pay its fair share mitigation cost prior to final map recordation for each phase. The applicant shall pay its fair share of the improvement by payment of the amended Citywide TIF or the ad hoc fee. c. South Higuera Class I Path. The applicant shall pay fair share mitigation fees to fund the construction of a Class I bicycle path from the Buckley Road & South Higuera intersection to the Los Osos Valley & Highway 101 southbound ramps intersection connecting to the Bob Jones Trail. If the City amends the Citywide TIF to include this improvement, this fee will suffice as appropriate mitigation for the project’s participation in these improvements and shall be paid prior to issuance of building permits for each phase. If the Citywide TIF is not amended to include this improvement, the City may establish an ad hoc fee program for that purpose and the applicant shall pay its fair share mitigation cost prior to final map recordation for each phase. The applicant shall pay its fair share of the improvement by payment of the amended Citywide TIF or the ad hoc fee. d. South Higuera & Prado Cumulative Improvements. Prior to issuance of building permits, the applicant shall pay fair share mitigation fee to the City to fund the widening of the Prado & South Higuera intersection to accommodate a dual left-turn lane, dual through lanes, and a right-turn lane on all approaches. Part of this share may be contained within existing fee programs and may ultimately be incorporated in full into an amended Citywide TIF program. If amended into the Citywide TIF fee program, payment of those fees will suffice as appropriate mitigation for the project’s participation in the improvements at this intersection and shall be paid prior to issuance of building permits for each phase. If not amended into the Citywide TIF program, the fair share mitigation fee shall be determined by the City prior to recordation of final maps and will be adjusted annually based on Engineering News- Record’s Construction Cost Index (CCI) until final building permits are complete. Alternatively, the applicant could pay the full fee as part of final map recordation for each phase of development. e. South Higuera & Tank Farm Cumulative Improvements. The applicant shall pay fair share mitigation fees to fund improvements to the intersection of South PH 1 - 54 Higuera & Tank Farm to provide: 1) the extension of the northbound right-turn lane, 2) the installation of a “pork chop” island to assist pedestrian crossings, and 3) widening on the south side of Tank Farm to provide a slip lane for right-turning traffic. If the City amends the AASP program to include this improvement, this fee will suffice as appropriate mitigation for the project’s participation in these improvements. If the AASP program is not amended to include this improvement, the fair share mitigation fee shall be determined by the City prior to recordation of final maps and will be adjusted annually based on Engineering News -Record’s Construction Cost Index (CCI) until final building permits are complete. Alternatively, the applicant could pay the full fee as part of final map recordation for each phase of development. f. Tank Farm/Horizon. The applicant shall pay fair share mitigation fees to fund the installation of an additional northbound right-turn lane or roundabout at the intersection of Tank Farm & Horizon. If the City amends the AASP program to include this improvement, this fee will suffice as appropriate mitigation for the project’s participation in these improvements. If the AASP program is not amended to include this improvement, the fair share mitigation fee shall be determined by the City prior to recordation of final maps and will be adjusted annually based on Engineering News-Record’s Construction Cost Index (CCI) until final building permits are complete. Alternatively, the applicant could pay the full fee as part of final map recordation for each phase of development. g. Buckley/Vachell. The applicant shall pay fair share mitigation fees to fund the installation of a traffic signal or single-lane roundabout at the intersection of Buckley & Vachell. While not required, this work may be implemented as part of the Buckley Road extension being installed prior to Phase 2 development. If the City amends the AASP program to include this improvement, this fee will suffice as appropriate mitigation for the project’s participation in these improvements. If the AASP program is not amended to include this improvement, the fair share mitigation fee shall be determined by the City prior to recordation of final maps and will be adjusted annually based on Engineering News-Record’s Construction Cost Index (CCI) until final building permits are complete. Alternatively, the applicant could pay the full fee as part of final map recordation for each phase of development. 117. Transit Service. The applicant shall coordinate with SLO Transit to ensure that adequate service would be provided to the two proposed bus stops and project area. The bus stops shall be constructed by the applicant within the respective phase’s development area and shall include on-street turnouts per City Standards. The applicant shall design and pay for installation any physical improvements to Earthwood and Suburban needed to accommodate future service to the site. Prior to recordation of the final map, the applicant shall complete the design of the bus turnouts to the satisfaction of the Public Works Director. The final map shall reflect any lot adjustments resulting from final bus stop/turnout design. Proposed on-site transit service shall meet standards stated in General Plan Circulation Element Policy 3.1.6 (Service Standards). Prior to issuance of an occupancy permit for the 50th residence of Phase 1 development, the applicant shall ensure that adequate transit facilities would be available for the project site. PH 1 - 55 118. Prior to recordation of the final map for each phase, design shall be completed for in -tract traffic calming to the approval of the Public Works Director, per Final EIR Mitigation Measures MM TRANS-3b. The final map shall reflect lot adjustments resulting from completed traffic calming design, where applicable. 119. As part of final map, the subdivider shall dedicate access easements for potential pedestrian/bicycle connections at the following locations: a. Between the Tank Farm Creek Class I path and Earthwood Lane (via access easement between Lots 7-10). b. Between Earthwood Lane and the Tank Farm Creek Class I path near the Phase 1 bridge crossing Tank Farm Creek (via access easement between Lots 19-22). c. Between Earthwood Lane and Tango Way (via access easement through Lot 87 and lots north of park) d. Between Bravo Court (via easement through Lot 183). e. Between Foxtrot Court, Earthwood Lane and Tank Farm Creek (via easement through Lot 230 park). f. Between Earthwood Lane and Kitty Hawk Court (via easement through Lot 312 or 318) g. Between Venture Drive and Kitty Hawk Court (via easement through Lot 341/342) 120. With the exception of local streets, on-street parking shall be prohibited on all new streets within the plan area. 121. The improvement plans shall include striped bike lane buffers along applicable streets with Class II bike lanes to the satisfaction of the Public Works Department. 122. To minimize traffic impacts, a trip reduction plan and implementation program is required. The plan shall include at a minimum, a) designation of a coordinator to administer the program, and b) dissemination of carpool, carshare, bicycling and transit information. The trip reduction plan information shall be provided to all new occupants as part of home sales, commercial leases/sales or rental agreements. A draft of the plan shall be submitted for review as part of the building permit application for Phase 1 development. Occupancy shall not be granted until the plan has been approved by the Public Works Director. 123. Add a roadway classification sheet to the final map that is consistent with the General Plan classification system and Avila Ranch project EIR recommendations. 124. The developer shall install continuous sidewalk improvements along Vachell Lane from Venture northerly to conform to the existing sidewalk improvements. The City Council may consider exercising its powers of eminent domain to acquire any off-site right-of-way dedication necessary to complete these improvements as provided in Government Code section 66462.5. 125. The developer shall design and install a southbound left turn lane on Vachell Lane at PH 1 - 56 Venture per City Engineering Standards if the improvement is determined to be feasible to the satisfaction of the Public Works director. If determined to be infeasible this condition is waived. The City Council may consider exercising its powers of eminent domain to acquire any off-site right-of-way dedication necessary to complete these improvements as provided in Government Code section 66462.5. 126. Prior to issuance of building permits for Phase 1 the developer shall design a ramp meter for the SB 101 On-Ramp at Los Osos Valley Road as identified in the US 101 Corridor Mobility Master Plan and submit the plans to CalTrans for approval and encroachment permit to construct. The applicant shall construct the ramp meter within 6 months of CalTrans issuance of the encroachment permit. The ramp meter shall be constructed prior to occupancy of the 75th unit. The applicants share of this cost is established at 3%, costs above and beyond this fair share proportion are eligible for crediting against Los Osos Valley Road Interchange Sub Area Impact fees. Prior to issuance of building permits for Phase 1 the developer shall also design a ramp meter for the SB 101 On-Ramp at S. Higuera at identified in the US 101 Corridor Mobility Master Plan, submit the plans to CalTrans, adequately respond to comments, and receive State concurrence on the design. If Caltrans does not respond to submittals within 60 working days this requirement specific to 101 at S. Higuera is considered satisfied. Natural Resources 127. The developer shall provide the potential for water well irrigation to all areas of the Open Space/Agricultural zoned and mapped lot(s) to help promote a viable agricultural operation. The potential for irrigated agriculture shall be pursued unless dryland farming is otherwise approved by the City. Well irrigation shall be available to the designated Agricultural land to remain prior to the physical and/or practical displacement of the existing water well supply. The three distinct agricultural areas shall be served by existing proven wells or shall be provided with a new water well or wells. The existing or proposed well development and basic irrigation services shall be approved by the City. The irrigation well development plan shall be reviewed by a geologist and agriculturist and shall be submitted with their respective recommendations to the City for review and approval. The final development shall be certified as being in general conformance with the plan and recommendations. The well water quality shall be acceptable for the intended use or shall be treated to achieve the intent. The well development shall include but is not limited to well construction, development, testing, electrical supply, panel board, controller equipment, and pumping equipment. Any private irrigation system crossing of a public street shall be approved by the City Engineer and shall be accompanied by an encroachment agreement in a format provided by the City. 128. The Agricultural and Open Space areas shall be delineated and protected prior to commencing with any demolition, stockpile, subdivision grading, and develo pment. The delineated areas shall be shown and noted in the SWPPP and subdivision improvement plans and shall not be used for construction staging, stockpile, or borrow areas unless specifically approved by the City. PH 1 - 57 129. The subdivision grading and improvement plans shall include details of the interface between the agricultural fields/access roads and the adjoining open space, creek corridors, public roadways, and Class 1 bikeways to the satisfaction of the City. The plan shall include temporary and appropriate permanent delineation fencing. The plan shall include a detailed grading and drainage strategy to promote the viability of the agricultural operations and to protect adjoining public improvements. The submittal shall include a detailed operational plan and strategy for stabilized ag field access, erosion control, worker parking, and access controls. 130. Pre-construction surveys for the Vernal Pool Fairy Shrimp (VPFS) shall be conducted where appropriate (in wetland habitat that could be disturbed through development) consistent with the requirements of the United States Fish and Wildlife Service (USFWS). As a result of such surveys, ensure that direct or indirect effects to individuals and their habitat are avoided, consistent with the requirements of the Endangered Species Act through appropriate means. The USFWS shall be consulted for appropriate action. The Applicant shall obtain a Biological Opinion from the USFWS and any additional authorization required by other regulatory agencies prior to the commencement of work within or immediately adjacent to potential suitable habitat. On motion by , seconded by , and on the following roll call vote: AYES: NOES: REFRAIN: ABSENT: The foregoing resolution was passed and adopted this 9th day of August, 2017. _____________________________ Doug Davidson, Secretary Planning Commission PH 1 - 58 SECTION 1. ENVIRONMENTAL DETERMINATION The City Council of the City of San Luis Obispo considers and relies on the Final Environmental Impact Report (EIR; State Clearinghouse Number 2015081034) for the Avila Ranch Development Plan in determining to carry out the Project. The Avila Ranch Development Plan includes a General Plan Amendment, amendments to the Airport Area Specific Plan (AASP), and a Vesting Tract Map (VTM), as described in the Final EIR Project description for the development of the 150-acre Project site. (“Project”). The Final EIR consists of the Draft EIR, responses to comments on the Draft EIR, a list of persons and agencies commenting on the Draft EIR, a Mitigation Monitoring and Reporting Program, and technical appendices. The City Council has received, reviewed, considered, and relied on the information contained in the Final EIR, as well as information provided at hearings and submissions of testimony from official participating agencies, the public, and other agencies and organizations. Section 15091 of the State CEQA Guidelines (14 California Code of Regulations [CCR]) and Section 21081 of the Public Resources Code require a lead agency to adopt findings for each significant environmental impact disclosed in an EIR. Specifically, for each significant impact, the lead agency must find that: • Changes or alterations have been required in, or incorporated into, the project to avoid or substantially lessen the significant environmental effects identified in the Final EIR; • Such changes or alterations are within the responsibility and jurisdiction of another public agency and not the agency making the finding. Such changes have been adopted by such other agency or can and should be adopted by that agency; or • Specific economic, social, legal, technological, or other considerations, including provision of employment opportunities for highly trained workers, make the mitigation measures or project alternatives identified in the Final EIR infeasible. The California Code of Regulations, Title 14, Section 15091(b) requires that the City’s findings be supported by substantial evidence in the record. Accordingly, the Lead Agency’s record consists of the following, which are located at the City Community Development Department office, San Luis Obispo, California: • Documentary and oral evidence, testimony and staff comments and responses received and reviewed by the Lead Agency during public review and the public hearings on the Avila Ranch Development Project. • The City of San Luis Obispo Avila Ranch Development Project Final Environmental Impact Report (June 2017). In addition to making a finding for each significant impact, if the lead agency approves a project without mitigating all of the significant impacts, it must prepare a statement of overriding considerations, in which it balances the benefits of the project against the unavoidable environmental risks. The statement of overriding considerations must explain the social, economic, or other reasons for approving the project despite its environmental impacts (14 CCR 15093, Pub. Res. Code 21081). This document contains the findings and statement of overriding considerations for the approval of the Avila Ranch Development Plan and reflects the City’s independent judgment. This document incorporates by reference the Final EIR. The EIR, specific plan, and other portions of the administrative record are available for review at: PH 1 - 59 City of San Luis Obispo Community Development Department 919 Palm Street San Luis Obispo, CA 93401 Contact: Doug Davidson (805) 781-7177 Having received, reviewed and considered the foregoing information, as well as any and all information in the record, the City Council of the City of San Luis Obispo hereby makes these Findings pursuant to, and in accordance with, Section 21081 of the Public Resources Code. SECTION 2. PROJECT DESCRIPTION A. PROJECT OBJECTIVES As required by the City General Plan, the Avila Ranch Development Plan is intended to contain policies and standards that will facilitate appropriate development of land, protection of open space, and provision of adequate public facilities. The overall objective of the Avila Ranch Development Plan is to adopt a specific plan for the Avila Ranch project site, pursuant to the City General Plan. The City’s objectives for the Avila Ranch Development Plan include: 1. Development of an economically feasible specific plan that is consistent with, and implements policies within the City’s LUCE and AASP; 2. Establishment of a complete “linked” community with the inclusion of amenities such as neighborhood parks and commercial goods and services that can serve the neighborhood; 3. Provision of a variety of housing opportunities for a wide range of socioeconomic groups and affordability levels; 4. Provision of a well-connected open space network that includes the addition of community gardens, neighborhood parks, bicycle paths, pedestrian sidewalks, open space buffers, and spaces for recreational activities; 5. Establishment of an internal transportation and circulation network of collector and residential roads, Class I and II bicycle paths, and pedestrian sidewalks that is integrated with, and enhances the regional transportation system; 6. Restoration of Tank Farm Creek with improvements to the riparian creek corridor and establishment of open space buffers; and, 7. Model sustainable development practices and design features and achieve compliance with Leadership in Energy and Environmental Design Neighborhood Development (LEED-ND) Silver standards and the County of San Luis Obispo’s Emerald certification rating. B. PROPOSED PROJECT (MITIGATED PROJECT ALTERNATIVE) The Applicant intends to seek approval of the version of the Avila Ranch Development Plan studied in the Mitigated Project Alternative (MPA) (described and analyzed in Section 5.4.2.2 of the EIR) rather than the original proposed Project. Similar to the proposed Project, the MPA consists of a General Plan Amendment, and AASP Amendment, and a Vesting Tract Map (VTM) for a 150-acre Project site. A comparison of the MPA to the original proposed Project is located in Table 5 -1 of the FEIR. The MPA PH 1 - 60 would also address a Development Agreement/Memorandum of Understanding, which provides a mechanism for Project implementation. The Avila Ranch Development Plan is intended to be consistent with the development parameters described in the City’s Land Use an d Circulation Element (adopted in December 2014). The MPA includes construction of up to 720 residential units and 15,000 square feet of commercial development, with a portion of the site preserved for agriculture and open space uses. In addition, the MPA would include the following features, which were either previously required as mitigation for significant impacts under the Project or have been included as design features to enhance consistency with applicable plans and policies; more specifically, the following features have been included as aspects of the MPA to reduce or avoid impacts attributed to realignment of Tank Farm Creek or phasing of transportation and circulation improvements: 1. The North-South Tank Farm Creek Segment alignment would be retained and widened to accommodate flood flows to reduce impacts to riparian habitat, rather than realignment and extension of Tank Farm Creek through the site under the proposed Project (removes the need for MM BIO-2f and MM BIO-3e). 2. The East-West Channel alignment would be retained to reduce hydrological impacts and preserve in-channel wetland habitat, rather than removing the channel under the proposed Project (removes the need for MM HYD-2c). 3. Creek/riparian buffer setbacks would be established at 35 feet, with a minimum 20-foot buffer along no more than 700 linear feet to improve habitat and the wildlife corridor, rather than a general varying 5 – 25-foot setback under the proposed Project. 4. The Tank Farm Creek Class I Bicycle Path would be set back a minimum of 35 feet from the top of the creek bank/riparian canopy with a 20-foot minimum setback along no more than 700 linear to improve habitat and the wildlife corridor, rather than allowing the Tank Farm Creek Class I Bicycle Path within the creek/riparian buffer under the proposed Project. 5. Retaining/flood walls would be setback along the east side of the creek at the toe of the slope along the creek corridor to improve erosion protection and bio-filtration for runoff, rather than not including any retaining/flood walls along Tank Farm Creek under the proposed Project. 6. Implement turn restrictions on Vachell Lane/South Higuera Street under Phase 2 after the Buckley Road Extension is completed (removes the need for MM TRANS-2b). 7. Restricted ingress and egress during Phase 1 at the Project site border on Venture Drive and the Vachell Lane/Earthwood Lane intersection, which would be removed under Phase 2, concurrent with the Buckley Road Extension (removes the need for MM TRANS-2c). 8. Construction of an interim bus turn-around location within the Project site or other measures as deemed appropriate by the City to accommodate this interim transit access due to required site access limitations during Phase 1 construction; the roundabout at Venture Drive/Earthwood Lane has been designed to serve this purpose and no interim improvements should be needed (removes the need for MM TRANS-2c). 9. Construction of Class II bicycle lanes that connect to the regional bicycle network along the entire stretch of Vachell Lane, between Buckley Road and South Higuera Street, as part of Phase 1 development (removes the need for MM TRANS-2d). 10. Construction of Buckley Road frontage improvements from Tank Farm Creek to Phase 1 development from Vachell Lane to the Class II bicycle lane to bicycle path diversion, Phase 5 from the diversion up to and including the Jesperson/Buckley intersection, and the remaining portion with Phase 6 (removes the need for MM TRANS-2f). 11. Extension of the Jespersen Road/Horizon Lane connection as well as improvements to bring this road segment to City standards for a residential collector as part of Phase 4 (removes the need for MM TRANS-2e). The Avila Ranch Development Plan under the MPA is proposed to be constructed in six phases. Phases 1, 2, and 3 would consist of development of 422 R-2 and R-4 residential units, along with Project site PH 1 - 61 preparation/grading, and utility and infrastructure improvements, with construction planned to begin in 2020 and anticipated to be completed by 2025. In addition, Phase 3 would include development of the Interim Fire Station to provide service to the Project site and vicinity pending completion of City Fire Station 5. Phases 4 and 5 would include development of the remaining 298 R-3 and R-1 residential units, while Phase 6 would consist primarily of build out of commercial development, with construction planned to begin in 2026 and anticipated to be completed by 2030. The proposed phasing plan is shown in Figure 2-14 (Project Phasing Plan) of the Final EIR. These MPA elements are further described in the EIR, specifically Section 5.4.2.2, Mitigated Project Alternative. The Avila Ranch Development Plan for the MPA is included in the EIR as Appendix Q, and is available at the following link: http://www.slocity.org/government/department-directory/community- development/planning-zoning/specific-area-plans/avila-ranch. Because the Applicant seeks approval of the MPA, rather than the Project as originally proposed, the findings below relate to the MPA. SECTION 3. ENVIRONMENTAL IMPACT REPORT A. BACKGROUND The Final EIR was prepared in compliance with CEQA and State CEQA Guidelines. In accordance with Section 15121 of the State CEQA Guidelines, the purpose of this Final EIR is to serve as an informational document for the public and City of San Luis Obispo decision makers. Pursuant to CEQA Guidelines Section 15182, “where a public agency has prepared an EIR on a specific plan after January 1, 1980, no EIR or negative declaration need be prepared for a residential project undertaken pursuant to and in conformity to that specific plan if the project,” as long as the residential project is within the scope of the EIR, no new environmental effects are anticipated to occur, and no new mitigation measures are required for the residential project. In accordance with Section 15088 of the State CEQA Guidelines, Draft EIR was circulated for a 55-day public review period that began November 23, 2016 and concluded on January 18, 2017. The original 45- day comment period was scheduled to end on January 8, 2017, but was extended 10 days. The City held a public Planning Commission hearing on December 14, 2016, which was continued on January 11, 2017, to allow for additional time for the public to review the project and to receive public testimony in the form of verbal comments on the Draft EIR. In addition, Section 5.0, Other CEQA-Related Discussions, of the Draft EIR was recirculated for a 45-day public review period that began February 21, 2017 and concluded on April 7, 2017. This section of the Draft EIR was revised to include an updated discussion of energy use and conservation related to the project. This recirculation also included the relevant portions of Appendix H as originally contained in the Draft EIR. It should be noted that as a result of this new discussion, no new significant impacts or mitigation measures were identified. Pursuant to Section 15088.5(c) of the State CEQA Guidelines, if the revisions subject to recirculation are limited to a few portions of the Draft EIR, the lead agency need only recirculate the portions that have been modified. Responses to each written and verbal comment that the City received are included in Section 8.0, Response to Comments of Final EIR. The Draft EIR and Responses to Comments collectively comprise the Final EIR for the project. PH 1 - 62 B. IMPACT ANALYSIS Five categories of impacts are identified in the Environmental Impact Report: Significant and Unavoidable (Class I) – a significant impact to the environment that remains significant even after mitigation measures are applied. To approve a project resulting in significant and unavoidable impacts, the CEQA Guidelines require decision makers to make findings of overriding consideration that “specific legal, technological, economic, social, or other considerations make infeasible the mitigation measures or alternatives identified in the EIR.” Significant but Mitigable (Class II) – a significant impact that can be avoided or reduced to a less than significant level with mitigation. When approving a project with significant but mitigable impact, the decision makers must make findings that changes, mitigation measures, or alternatives to the project have been incorporated that reduce the impacts to a less than significant level. Less than Significant (Class III) – a potential impact that would not meet or exceed the identified thresholds of significance for the resource area. No Impact (Class IV) – no impact would occur for the resource area. Beneficial Impact (Class IV) – a positive effect on the natural or human environment would occur. SECTION 4. FINDINGS FOR NON-ADVERSE OR BENEFICIAL IMPACTS OF THE MITIGATED PROJECT ALTERNATIVE The findings below are for impacts that would not result in adverse environmental effects or have a beneficial effect on the natural and human environment (Class IV). The City Council has concluded that the following impacts would not result in adverse effects on the natural or human environment. A. POPULATION AND HOUSING 1. Impact PH-2: The construction of 720 units under the MPA would provide additional housing for the City of San Luis Obispo, having beneficial impacts related to the jobs/housing imbalance. (Refer to pages 3.10-24 and 5-66 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have a beneficial effect. PH 1 - 63 SECTION 5. FINDINGS FOR LESS THAN SIGNIFICANT ENVIRONMENTAL EFFECTS OF THE MITIGATED PROJECT ALTERNATIVE The findings below are for impacts that are adverse, but would not result in significant effects on the natural and human environment. The City Council concluded that the following impacts would result in adverse, but less than significant effects on the natural or human environment. A. AESTHETICS 1. Impact VIS-1: Implementation of the MPA would result in impacts to the existing scenic resources present at the site, particularly due to conversion of agricultural land to urban development, loss of mature native trees along Tank Farm Creek, and impairment of distant views of Santa Lucia Mountains, Islay Hill, and Irish Hills from adjacent public roads. (Refer to pages 3.1-21 and 5-44 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. 2. Impact VIS-2: The MPA would result in a change in the existing visual character of the site with the change of the rural character to a commercial and residential neighborhood. (Refer to pages 3.1-25 and 5-44 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. 3. Impact VIS-3: Construction of the MPA would create short-term disruption of the visual appearance of the site for travelers along Buckley Road, Vachell Lane, and Venture Drive. (Refer to pages 3.1-27 and 5-44 of the Final EIR.) a. Mitigation: The following measure was included as mitigation for the Project and is considered an MPA project design feature to reduce visual disruption of the site and proposed development for travelers along local roadways. City planning staff will confirm incorporation of this feature on plan sets and submittals. — Mitigation Measure VIS-3 (Project). The Applicant shall include the development of the entire landscape and open space buffer outside of the URL within Phase 1 of the construction period. Vegetation within the buffer would provide partial screening of ongoing construction. b. Finding: The City finds that the impact would have an adverse, but less than significant effect . The MPA includes an open space buffer and landscaped berm along Buckley Road that would be constructed during Phase 1. This would reduce visual impacts from construction within the MPA site from viewpoints along Buckley Road. PH 1 - 64 4. Impact VIS-4: The MPA would introduce a major new source of nighttime light, impacting the quality of the nighttime sky and increasing ambient light. (Refer to pages 3.1-28 and 5-45 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. 5. Cumulative Aesthetic and Visual Resources Impacts: As determined in the LUCE Update EIR, all development that adheres to applicable General Plan policies would result in less than significant aesthetic impacts. Therefore, the overall aesthetic impact of cumulative development in the Project vicinity would be less than significant. Cumulative effects under the MPA would be similar to those of the Project as described on page 3.1-28 of the Final EIR. a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. B. AIR QUALITY 1. Impact AQ-3: Release of toxic diesel emissions during initial construction and long-term operation of the Project could expose nearby sensitive receptors to such emissions. (Refer to pages 3.3-42 and 5-49 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. 2. Cumulative Greenhouse Gas Emissions Impact: Due to the cumulative nature of greenhouse gas emissions and the less than significant effects of the project, cumulative greenhouse gas e missions are considered adverse, but less than significant. (Refer to pages 3.3-51 and 5-55 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. C. CULTURAL RESOURCES 1. Impact CR-1: The MPA would result in adverse impacts to the octagonal silo foundation, historic feature P-40-038310. (Refer to pages 3.5-15 and 5-56 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. PH 1 - 65 D. HAZARDS AND HAZARDOUS MATERIALS 1. Impact HAZ-2: The MPA would not create a hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials. (Refer to pages 3.6-26 and 5-58 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. 2. Impact HAZ-3: The MPA site is located within the LUCE defined AOZs and ALUP Safety Areas and would potentially result in an airport-related safety hazard for people residing or working in the Project site. (Refer to pages 3.6-26 and 5-58 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. c. Impact HAZ-4: Implementation of the MPA could expose people or structures to a significant risk of loss, injury, or death involving wildfire. (Refer to pages 3.6-28 and 5-58 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. d. Cumulative Hazards and Hazardous Materials Impacts: As described in the LUCE Update EIR, adherence to applicable General Plan policies and applicable State and federal regulatory requirements would reduce any cumulative hazards and hazardous materials impacts resulting from buildout of the City under the General Plan, including buildout of the Avila Ranch Development Plan, to a less than significant level. Cumulative effects under the MPA would be similar to those of the Project as described on page 3.6-28 of the Final EIR. a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. E. HYDROLOGY AND WATER QUALITY 1. Impact HYD-6: The MPA would potentially deplete groundwater supplies or interfere with groundwater recharge. (Refer to pages 3.7-52 and 5-61 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. 2. Cumulative Hydrology and Water Quality Impacts: The MPA, in combination with approved, pending, and proposed development within the City, would not contribute a substantial increase in development and associated water quality impacts, or alteration of the existing hydrologic environment, such that the abundance and natural flow of water resources of the area would be PH 1 - 66 diminished. When properly implemented, water quality requirements of the Central Coast RWQCB and the City and County of San Luis Obispo would be expected to mitigate any adverse impacts resulting from new cumulative development. (Refer to pages 3.7-58 and 5-61 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. E. LAND USE AND PLANNING 1. Impact LU-1: MPA development would include residential uses located within the LUCE-defined Airport Overlay Zones (AOZs) that would be consistent with AOZ density and use restrictions and that would not interfere with airport operations or create safety impacts under recognized state and federal guidance for airport operations and safety. (Refer to pages 3.8-53 and 5-62 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. 2. Impact LU-2: The proposed MPA would include development within ALUP Safety Areas S-1B, S- 1C, and S-2; however, the Project would be potentially consistent with the ALUP. (Refer to pages 3.8-55 and 5-63 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. 3. Cumulative Land Use and Planning Impacts: The proposed MPA, in combination with pending/future developments, is aligned with the City’s plans for build-out around the year 2057, as foreseen in the LUCE. All pending/future projects would be required to adhere to City developments regulations and General Plan policies in order to retain character of the City and mitigate environmental impacts where feasible. In addition, all pending and future projects would be reviewed for consistency with the City General Plan and all other applicable regulatory land use actions prior to approval. As such, cumulative impacts are considered less than significant (Refer to page s 3.8-55 and 5-65 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. F. NOISE 1. Impact NO-2: Short-term noise construction activities could result in exposure of persons to or generation of excessive groundborne vibration. (Refer to pages 3.9-27 and 5-66 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. PH 1 - 67 2. Impact NO-4: Development within the ALUP noise contours could cause persons within the MPA site to be exposed to unacceptable noise levels. (Refer to pages 3.9-33 and 5-66 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. 3. Cumulative Noise Impacts: Cumulative projects in the area would increase traffic levels and subsequent noise levels mainly on arterials and major roadways, and the noise-related impacts to residential and local streets would be nominal. Implementation of the LUCE Update could cumulatively increase stationary source noise levels from new development, but because the City’s Noise Element contains policies and programs that would address and mitigate potential site -specific impacts for individual projects in the future, and because the MPA would contribute a marginal increase in stationary source noise, this cumulative impact would be considered less than significant. Cumulative effects under the MPA would be similar to those of the Project as described on page 3.9- 34 of the Final EIR. a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. G. POPULATION AND HOUSING 1. Impact PH-1: Residential development and associated population growth resulting from the MPA would not exceed the adopted annual growth rate threshold. (Refer to pages 3.10-22 and 5-67 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. 2. Impact PH-3: The construction of affordable housing units under the MPA would provide additional affordable housing for the City of San Luis Obispo. (Refer to pages 3.10-26 and 5-67 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. 3. Cumulative Population and Housing Impacts: Cumulative buildout permitted under the LUCE Update would include development of areas within existing City boundaries, as well as identified expansion areas. The Land Use Element can accommodate over 98 percent of projected demand for nonresidential square footage under the MPA, proposed cumulative development projects, and cumulative buildout under the LUCE Update. Therefore, cumulative impacts are considered less than significant. Cumulative effects under the MPA would be similar to those of the Project as described on page 3.10-26 of the Final EIR. c. Mitigation: None d. Finding: The City finds that the impact would have an adverse, but less than significant effect. PH 1 - 68 H. PUBLIC SERVICES 1. Impact PS-3: Development of 720 new homes as part of the MPA would generate increases in enrollment at public schools (Los Ranchos Elementary, Laguna Middle, and San Luis High). (Refer to pages 3.11-19 and 5-68 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. 2. Impact PS-4: Implementation of the MPA would potentially increase the demand for public parks beyond current capacity. (Refer to pages 3.11-21 and 5-69 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. 3. Cumulative Public Services Impacts: The proposed project and other cumulative development would increase demand for public services. However, new demand for these services could be met through existing service availability, planned service improvements, and development project fee requirements. Cumulative effects under the MPA would be similar to those of the Project as described on page 3.11-21 of the Final EIR. c. Mitigation: None d. Finding: The City finds that the impact would have an adverse, but less than significant effect. I. TRANSPORTATION AND TRAFFIC 1. Impact TRANS-9: The proposed MPA would generate and attract trips to and from U.S. Highway 101, incrementally increasing congestion of the region’s main highway. (Refer to pages 3.12-67 and 5-73 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. J. UTILITIES 1. Impact UT-1: MPA generated wastewater would contribute to demand for wastewater collection facilities and remaining capacity of the City’s Water Resource Recovery Facility (WRRF). (Refer to pages 3.13-24 and 5-75 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. PH 1 - 69 2. Impact UT-3: MPA-related increases in water use would incrementally increase demand for the City’s potable water supply. (Refer to pages 3.13-29 and 5-76 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. 3. Impact UT-4: The MPA would generate additional solid waste for disposal at the Cold Canyon Landfill. (Refer to pages 3.13-32 and 5-78 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. 3. Cumulative Utility Impacts: As indicated by the LUCE Update EIR, the MPA and other planned development would not result in any significant or adverse effects on the supply of water, solid waste, or energy utilities. Therefore, the cumulative impact of this project and pending cumulative projects within the vicinity on water supply, solid waste management, and the energy utilities would be less than significant. Further, the pending WRRF upgrades would also increase capacity to handle both wet-weather and dry-weather flow, which would reduce the impact of cumulative development on the WRRF’s capacity to sufficiently treat the City’s wastewater to meet RWQCB standard and avoid periodic spills into San Luis Obispo Creek. Cumulative effects under the MPA would be similar to those of the Project as described on page 3.13-32 of the Final EIR.) a. Mitigation: None b. Finding: The City finds that the impact would have an adverse, but less than significant effect. SECTION 6. FINDINGS FOR SIGNIFICANT ENVIRONMENTAL EFFECTS OF THE MITIGATED PROJECT ALTERNATIVE THAT HAVE BEEN MITIGATED TO A LESS THAN SIGNIFICANT LEVEL The findings below are for impacts that would result in potentially significant effects on the natural and human environment, but could be reduced to a less than significant level through feasible changes or alternations to the project or implementation of mitigation measures. When approving a project with significant but mitigable impacts, the decision-makers must make findings that changes or alterations to the project have been incorporated that reduce the impacts to a less than significant level. This section presents the MPA’s significant environmental impacts and feasible mitigation measures. Section 15091 of the State CEQA Guidelines (14 California Code of Regulations [CCR]) and Section 21081 of the Public Resources Code require a lead agency to make findings for each significant environmental impact disclosed in an EIR. Specifically, for each significant impact, the lead agency must find that: • Changes or alterations have been required in, or incorporated into, the project to avoid or substantially lessen the significant environmental effects identified in the Final EIR; PH 1 - 70 • Such changes or alterations are within the responsibility and jurisdiction of another public agency and not the agency making the finding. Such changes have been adopted by such other agency or can and should be adopted by that agency; or • Specific economic, social, legal, technological, or other considerations, including provision of employment opportunities for highly trained workers, make the mitigation measures or project alternatives identified in the Final EIR infeasible. Each of these findings must be supported by substantial evidence in the administrative record. This section identifies impacts that can be fully avoided or reduced to a less-than-significant level through the incorporation of feasible mitigation measures into the project, as identified in the Final EIR. The impacts identified in this section are considered in the same sequence in which they appear in the EIR. A. AGRICULTURAL RESOURCES 1. Impact AG-2: Development of the proposed MPA would create potential land use conflicts with continued agricultural operations to the south and east of the Project site. (Refer to pages 3.2-24 and 4-45 of the Final EIR.) a. Mitigation: The following mitigation measures are required to reduce land use conflicts between existing agricultural uses and the residential and commercial development proposed for the site. — Mitigation Measure AG-2a. To address potential agricultural land use conflicts, the Applicant shall coordinate with the City and county to fund installation of fencing and signs along Buckley Road to minimize potential for increases in trespass and vandalism of adjacent agricultural areas. Along the south side of Buckley Road, the use of three strand barbwire fencing would be acceptable. Along the north side of the Buckley Road extension bordering the Class I bike path, spit rail fencing shall be installed or other fencing acceptable to the County. — Mitigation Measure AG-2b. To reduce the potential for noise, dust, and pesticide drift to affect future Project residents, the Applicant shall ensure that Project landscape plans include planting of a windrow of trees and shrubs along the proposed southern landscape berm and eastern Project site boundary at a sufficient density to buffer the site from surrounding agricultural operations. — Mitigation Measure AG-2c. To augment the existing 100-foot agricultural buffer to the Caltrans property to the west of the Project site, the Applicant shall add a 20-foot hedgerow/windrow of trees and vegetation along the east side of Vachell Lane. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. The mitigation measures will reduce land use conflicts by buffering the site from surrounding land uses. PH 1 - 71 B. AIR QUALITY AND GREENHOUSE GAS EMISSIONS 1. Impact AQ-4: Construction and operation of the MPA would result in impacts to global climate change from the emissions of GHGs and would be potentially inconsistent with the City’s Climate Action Plan. (Refer to page 5-49 of the Final EIR.) a. Mitigation: To reduce MPA short-term construction and long-term operational greenhouse gas emissions to level below adopted Climate Action Plan policies and greenhouse gas emission reduction targets, the following measures are required: — Mitigation Measure AQ-2a. The Applicant shall include the following: • Water Conservation Strategy: The Applicant shall install fixtures with the EPA WaterSense Label, achieving 20 percent reduction indoor. The Project shall install drip, micro, or fixed spray irrigation on all plants other than turf, also including the EPA WaterSense Label, achieving 15 percent reduction in outdoor landscaping. • Solid Waste: The Applicant shall institute recycling and composting services to achieve a 15 percent reduction in waste disposal, and use waste efficient landscaping. • Fugitive Dust: The Applicant shall replace ground cover of at least 70 percent of area disturbed in accordance with CARB Rule 403. • Energy Conservation Strategy: The Applicant shall install additional solar and alternative energy features (e.g., solar panels on commercial buildings; solar canopies over commercial parking areas). — Mitigation Measure AQ-2b. Consistent with standard mitigation measures set forth by the APCD, Projects generating more than 50 lbs/day of combined ROG + NOx or PM10 shall implement all feasible measures within Table 3-5 of the Air Quality Handbook. — Mitigation Measure TRANS-10a. The Applicant shall design and construct ADA-compliant sidewalks and ADA ramps on the east side of South Higuera Street to provide continuous paths of travel from the City limit line to Los Osos Valley Road. — Mitigation Measure TRANS-10b. The Applicant shall design and construct continuous sidewalks along the east side of South Higuera Street from Vachell Lane to Los Osos Valley Road including ADA ramps at the Vachell Lane and South Higuera Street intersection, as indicated in Figure 3.12-6. — Mitigation Measure TRANS-10c. The Applicant shall design and construct continuous ADA- compliant sidewalks and ADA ramps along the south side segment of Suburban Road from South Higuera Street to Earthwood Lane. A receiving ramp shall be installed on the north side Suburban Road at Earthwood Lane. — Mitigation Measure TRANS-11. The Applicant shall construct two (2) separated bicycle bridges on each side of Buckley Road at Tank Farm Creek and provide connections to Buckley Road so as to provide continuous and safe bicycle routing along Buckley Road. These sections of roadway and creek crossings are under the jurisdiction of the County and would need to meet both City and County design standards to the greatest extent feasible and are subject to approval of the City’s Public Works Director. PH 1 - 72 — Mitigation Measure TRANS-12. The Applicant shall coordinate with SLO Transit to ensure that adequate service would be provide to the two proposed bus stops and Project area. The bus stops shall be constructed by the Applicant within the respective phase’s development area. To assure adequate service is provided to the two new bus stops onsite, the Applicant shall pay for and install a fair share to fund any physical improvements needed to accommodate future service to the site. In addition, the proposed transit service onsite shall meet standards stated in Policy 3.1.6, Service Standards. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. The mitigation measure will reduce the MPA’s greenhouse gas impacts by reducing water usage; ensuring consistency with the Climate Action Plan’s water usage, solid waste and transportation goals; reducing the Project’s operational energy usage; and improving bicycle and pedestrian connections to reduce reliance on automobiles. C. BIOLOGICAL RESOURCES 1. Impact BIO-1: Construction activities within the MPA site and Buckley Road Extension site, including extensive grading, excavation, and fill, would result in permanent and temporary impacts to sensitive habitats and species, particularly in areas within or near Tank Farm Creek. (Refer to pages 3.4-32 and 5-52 of the Final EIR.) a. Mitigation: The following mitigation measures would be required. — Mitigation Measure HYD-1a. Prior to the issuance of any construction/grading permit and/or the commencement of any clearing, grading, or excavation, the Applicant shall submit a Notice of Intent (NOI) for discharge from the Project site to the California SWRCB Storm Water Permit Unit. — Plan Requirements and Timing. Prior to issuance of grading permits for Phase 1 the Applicant shall submit a copy of the NOI to the City. — Mitigation Measure HYD-1b. The Applicant shall require the building contractor to prepare and submit a Storm Water Pollution Prevention Plan (SWPPP) to the City 45 days prior to the start of work for approval. The contractor is responsible for understanding the State General Permit and instituting the SWPPP during construction. A SWPPP for site construction shall be d eveloped prior to the initiation of grading and implemented for all construction activity on the Project site in excess of one (1) acre, or where the area of disturbance is less than one acre but is part of the Project’s plan of development that in total disturbs one or more acres. The SWPPP shall identify potential pollutant sources that may affect the quality of discharges to storm water, and shall include specific BMPs to control the discharge of material from the site. The following BMP methods shall include, but would not be limited to: • Temporary detention basins, straw bales, sand bagging, mulching, erosion control blankets, silt fencing, and soil stabilizers shall be used. • Soil stockpiles and graded slopes shall be covered after 14 days of inactivity and 24 hours prior to and during inclement weather conditions. • Fiber rolls shall be placed along the top of exposed slopes and at the toes of graded areas to reduce surface soil movement, as necessary. PH 1 - 73 • A routine monitoring plan shall be implemented to ensure success of all onsite erosion and sedimentation control measures. • Dust control measures shall be implemented to ensure success of all onsite activities to control fugitive dust. • Streets surrounding the Project site shall be cleaned daily or as necessary. • BMPs shall be strictly followed to prevent spills and discharges of pollutants onsite (material and container storage, proper trash disposal, construction entrances, etc.). • Sandbags, or other equivalent techniques, shall be utilized along graded areas to prevent siltation transport to the surrounding areas. • Additional BMPs shall be implemented for any fuel storage or fuel handling that could occur onsite during construction. The SWPPP must be prepared in accordance with the guidelines adopted by the SWRCB. The SWPPP shall be submitted to the City along with grading/development plans for review and approval. The Applicant shall file a Notice of Completion for construction of the development, identifying that pollution sources were controlled during the construction of the Project and implementing a closure SWPPP for the site. • Plan Requirements and Timing. The Applicant shall prepare a SWPPP that includes the above and any additional required BMPs. The SWPPP and notices shall be submitted for review and approval by the City prior to the issuance of grading permits for Phase 1 construction. The SWPPP shall be designed to address erosion and sediment control during all phases of development of the site until all disturbed areas are permanently stabilized. — Mitigation Measure HYD-1c. Installation of the eight drainage outlets within Tank Farm Creek shall occur within the dry season (May through October). — Mitigation Measure BIO-1a. The Applicant shall prepare and implement a Biological Mitigation Plan that identifies construction-related staging and maintenance areas and includes Project- specific construction best management practices (BMPs) to avoid or minimize impacts to biological resources, including all measures needed to protect riparian woodland along Tank Farm Creek, minimize erosion, and retain sediment on the Project site. Such BMPs shall include (but not be limited to) the following: 1. Construction equipment and vehicles shall be stored at least 100 feet away from Tank Farm Creek and adjacent riparian habitat, and all construction vehicle maintenance shall be performed in a designated offsite vehicle storage and maintenance area. 2. Prior to construction activities adjacent to Tank Farm Creek, the creek shall be fenced with orange construction fencing and signed to prohibit entry of construction equipment and personnel unless authorized by the City. Fencing should be located a minimum of 20 feet from the edge of the riparian canopy or top of bank, whichever is further from the creek, and shall be maintained throughout the construction period for each phase of development. 3. In the event that construction must occur within the creek or 20 -foot creek setback, a biological monitor shall be present during all such activities with the authority to stop or redirect work as needed to protect biological resources. 4. Construction shall occur during daylight hours (7:00 AM to 7:00 PM or sunset, whichever is sooner) to avoid impacts to nocturnal and crepuscular (dawn and dusk activity period) species. No construction night lighting shall be permitted within 100 yards of the top of the creek banks. PH 1 - 74 5. Construction equipment shall be inspected at the beginning of each work day to ensure that no wildlife species is residing within any construction equipment (e.g., species hav e not climbed into wheel wells, engine compartments, or under tracks since the equipment was last parked). Any sensitive wildlife species found during inspections shall be gently encouraged to leave the Project site by a qualified biologist or otherwise trained and City- approved personnel. 6. Pallets or secondary containment areas for chemicals, drums, or bagged materials shall be provided. Should material spills occur, materials and/or contaminants shall be cleaned from the Project site and recycled or disposed of to the satisfaction of the Regional Water Quality Control Board (RWQCB). 7. All trash and construction debris shall be picked up and properly disposed at the end of each day and waste dumpsters shall be covered with plastic sheeting at the end of each workday and during storm events. All sheeting shall be carefully secured to withstand weather conditions. 8. The Applicant shall implement erosion control measures designed to minimize erosion and retain sediment on the Project site. Such measures shall include installation of silt fencing, straw waddles, or other acceptable erosion control devices along the perimeter of Tank Farm Creek and at the perimeter of all cut or fill slopes. All drainage shall be directed to sediment basins designed to retain all sediment onsite. 9. Concrete truck and tool washout should occur in a designated location such that no runoff will reach the creek. 10. All open trenches shall be constructed with appropriate exit ramps to allow species that incidentally fall into a trench to escape. All open trenches shall be inspected at the beginning of each work day to ensure that no wildlife species is present. Any sensitive wildlife species found during inspections shall be gently encouraged to leave the Project site by a qualified biologist or otherwise trained and City-approved personnel. Trenches will remain open for the shortest period necessary to complete required work. 11. Existing facilities and disturbed areas shall be used to the maximum extent possible to minimize the amount of disturbance of undeveloped areas and all construction access roads and staging areas shall be located to avoid high quality habitat and minimize habitat fragmentation. — Mitigation Measure BIO-1b. The Applicant shall retain a qualified Environmental Monitor, subject to review and approval by the City and in consultation with CDFW, RWQCB, and USFWS to oversee compliance of the construction activities with the Biological Monitoring Plan and applicable laws, regulations, and policies. The Environmental Monitor shall monitor all construction activities, conduct a biological resources education program for all construction workers prior to the initiation of any clearing or construction activities, and provide quarterly reports to the City regarding construction activities, enforcement issues and remedial measures. The Environmental Monitor shall be responsible for conducting inspections of the work area each work day to ensure that excavation areas, restored habitats, and open water habitats in the area do not have oil sheen, liquid oil, or any other potential exposure risk to wildlife. If any exposure risk is identified, the Environmental Monitor shall implement measures that could include, but are not limited to, hazing, fencing, and wildlife removals to eliminate the exposure risk. In addition, a CDFW-approved biologist shall be present during all construction occurring within 50 feet of Tank Farm Creek, riparian habitat, drainages, and seasonal or permanent wetlands. The biologist shall also conduct sensitive species surveys immediately prior to construction activities (within the appropriate season) and shall monitor construction activities in the vicinity of habitats to be avoided (see also, MM BIO-3 and all subparts below). PH 1 - 75 The work area boundaries and other off-limit areas shall be identified by the biologist and/or Environmental Monitor on a daily basis. The biologist and/or Environmental Monitor shall inspect construction and sediment control fencing each work day during construction activities to ensure that sensitive species are not exposed to hazards. Any vegetation clearing activities shall be monitored by the biologist and/or Environmental Monitor. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. Implementation of MM HYD-1a through 1c would help reduce significant impacts to sensitive biological resources within the creek corridor with implementation of a Storm Water Pollution Prevention Plan (SWPPP) and noticing to reduce construction impacts to water quality. In addition, MM BIO-1a would reduce or avoid construction-related impacts to sensitive habitats and species, and MM BIO -1b would require a qualified Environmental Monitor and/ or a California Department of Fish and Wildlife (CDFW)- approved biologist to oversee compliance of the construction activities with the Biological Monitoring Plan and applicable laws, regulations, and policies. With implementation of the aforementioned mitigation measures, impacts to biological resources during construction would remain potentially significant but mitigable. (See FEIR pp. 5-54 through 5-55.) 2. Impact BIO-2. Onsite MPA development would result in permanent loss of habitats within the Project site, including protected wetlands and riparian areas associated with Tank Farm Creek. (Refer to pages 3.4-39 and 5-52 of the Final EIR.) a. Mitigation: The following mitigation measures would be required. — Mitigation Measure BIO-1a. The Applicant shall prepare and implement a Biological Mitigation Plan that identifies construction-related staging and maintenance areas and includes Project- specific construction best management practices (BMPs) to avoid or minimize impacts to biological resources, including all measures needed to protect riparian woodland along Tank Farm Creek, minimize erosion, and retain sediment on the Project site. Such BMPs shall include (but not be limited to) the following: 12. Construction equipment and vehicles shall be stored at least 100 feet away from Tank Farm Creek and adjacent riparian habitat, and all construction vehicle maintenance shall be performed in a designated offsite vehicle storage and maintenance area. 13. Prior to construction activities adjacent to Tank Farm Creek, the creek shall be fenced with orange construction fencing and signed to prohibit entry of construction equipment and personnel unless authorized by the City. Fencing should be located a minimum of 20 feet from the edge of the riparian canopy or top of bank, whichever is further from the creek, and shall be maintained throughout the construction period for each phase of development. 14. In the event that construction must occur within the creek or 20 -foot creek setback, a biological monitor shall be present during all such activities with the authority to stop or redirect work as needed to protect biological resources. 15. Construction shall occur during daylight hours (7:00 AM to 7:00 PM or sunset, whichever is sooner) to avoid impacts to nocturnal and crepuscular (dawn and dusk activity period) species. No construction night lighting shall be permitted within 100 yards of the top of the creek banks. PH 1 - 76 16. Construction equipment shall be inspected at the beginning of each work day to ensure that no wildlife species is residing within any construction equipment (e.g., species have not climbed into wheel wells, engine compartments, or under tracks since the equipment was last parked). Any sensitive wildlife species found during inspections shall be gently encouraged to leave the Project site by a qualified biologist or otherwise trained and City- approved personnel. 17. Pallets or secondary containment areas for chemicals, drums, or bagged materials shall be provided. Should material spills occur, materials and/or contaminants shall be cleaned from the Project site and recycled or disposed of to the satisfaction of the Regional Water Quality Control Board (RWQCB). 18. All trash and construction debris shall be picked up and properly disposed at the end of each day and waste dumpsters shall be covered with plastic sheeting at the end of each workday and during storm events. All sheeting shall be carefully secured to withstand weather conditions. 19. The Applicant shall implement erosion control measures designed to minimize erosion and retain sediment on the Project site. Such measures shall include installation of silt fencing, straw waddles, or other acceptable erosion control devices along the perimeter of Tank Farm Creek and at the perimeter of all cut or fill slopes. All drainage shall be directed to sediment basins designed to retain all sediment onsite. 20. Concrete truck and tool washout should occur in a designated location such that no runoff will reach the creek. 21. All open trenches shall be constructed with appropriate exit ramps to allow species that incidentally fall into a trench to escape. All open trenches shall be inspected at the beginning of each work day to ensure that no wildlife species is present. Any sensitive wildlife species found during inspections shall be gently encouraged to leave the Project site by a qualified biologist or otherwise trained and City-approved personnel. Trenches will remain open for the shortest period necessary to complete required work. 22. Existing facilities and disturbed areas shall be used to the maximum extent possible to minimize the amount of disturbance of undeveloped areas and all construction access roads and staging areas shall be located to avoid high quality habitat and minimize habitat fragmentation. — Mitigation Measure BIO-1b. The Applicant shall retain a qualified Environmental Monitor, subject to review and approval by the City and in consultation with CDFW, RWQCB, and USFWS to oversee compliance of the construction activities with the Biological Monitoring Plan and applicable laws, regulations, and policies. The Environmental Monitor shall monitor all construction activities, conduct a biological resources education program for all construction workers prior to the initiation of any clearing or construction activities, and provide quarterly reports to the City regarding construction activities, enforcement issues and remedial measures. The Environmental Monitor shall be responsible for conducting inspections of the work area each work day to ensure that excavation areas, restored habitats, and open water habitats in the area do not have oil sheen, liquid oil, or any other potential exposure risk to wildlife. If any exposure risk is identified, the Environmental Monitor shall implement measures that could include, but are not limited to, hazing, fencing, and wildlife removals to eliminate the exposure risk. In addition, a CDFW-approved biologist shall be present during all construction occurring within 50 feet of Tank Farm Creek, riparian habitat, drainages, and seasonal or permanent wetlands. The biologist shall also conduct sensitive species surveys immediately prior to construction activities (within the appropriate season) and shall monitor construction activities in the vicinity of habita ts to be avoided (see also, MM BIO-3 and all subparts below). PH 1 - 77 The work area boundaries and other off-limit areas shall be identified by the biologist and/or Environmental Monitor on a daily basis. The biologist and/or Environmental Monitor shall inspect construction and sediment control fencing each work day during construction activities to ensure that sensitive species are not exposed to hazards. Any vegetation clearing activities shall be monitored by the biologist and/or Environmental Monitor. — Mitigation Measure BIO-2a. Project designs shall be modified to realign the Tank Farm Class I bicycle path and relocate manufactured slopes for housing pads in order to create a minimum of a 35-foot creek setback from either the top of the bank of Tank Far m Creek or edge of riparian habitat, whichever is further, for at least 90 percent of corridor length. No more than 10 percent of the length of the corridor (700 linear feet) shall have a setback of less than 35 feet, but at least 20 feet from the top of the bank or edge of riparian canopy, whichever is further. However, in any instance the creek setback shall be no less than 20 feet from the edge of riparian canopy or top of bank, whichever is further, consistent with Section 17.16.025 of the City of San Luis Obispo Zoning Regulations. — Mitigation Measure BIO-2b. The Biological Mitigation Plan shall provide details on timing and implementation of required habitat restoration and shall be prepared in consultation with the City’s Natural Resource Manager and CDFW. A copy of the final plan shall be submitted to the City for review and approval. The plan shall be implemented by the Project Applicant, under supervision by the City and Environmental Monitor, and: 1. Characterize the type, species composition, spatial extent, and ecological functions and values of the wetland and riparian habitat that will be removed, lost, or damaged. 2. Describe the approach that will be used to replace the wetland and riparian habitat removed, lost, or adversely impacted by the Project, including a list of the soil, plants, and other materials that will be necessary for successful habitat replacement, and a description of planting methods, location, spacing, erosion protection, and irrigation measures that will be needed. Restoration and habitat enhancement shall include use of appropriate native species and correction of bank stabilization issues. Wetland restoration or enhancement areas shall be designed to facilitate establishment of wetland plants such as willows, cottonwoods, rushes, and creeping wild rye. 3. Describe the habitat restoration ratio to be used in calculating the acreage of habitat to be planted, consistent with MM BIO-2c through BIO-2e below and the findings in the Biological Report (Appendix I). 4. Describe the program that will be used for monitoring the effectiveness and success of the habitat replacement approach. 5. Describe how the habitat replacement approach will be supplemented or modified if the monitoring program indicates that the current approach is not effective or successful. 6. Describe the criteria that will be used to evaluate the effectiveness and success of the habitat replacement approach. 7. Indicate the timing and schedule for the planting of replacement habitat. 8. Habitat restoration or enhancement areas shall be established within the Project boundaries, adjacent to and contiguous with existing wetlands to the maximum extent possible. Habitats suitable for Congdon’s tarplant and other native wetland species shall be created onsite. If Congdon’s tarplant is found in areas proposed for disturbance, the affected individuals shall be replaced at a 1:1 ratio through seeding in a suitable conserved natural open space area. A management plan for the species shall be developed consistent with applicable scientific literature pertinent to this species. PH 1 - 78 9. Habitat restoration or enhancement sites shall be placed within deed-restricted area(s), and shall be maintained and monitored for a minimum of five years. If sufficient onsite mitigation area is not practicable, an offsite mitigation plan shall be prepared as part of the Biological Mitigation Plan and approved by permitting agencies. 10. The Biological Mitigation Plan shall identify appropriate restoration and enhancement activities to compensate for impacts to seasonal creek, wetland, and riparian habitat, including a detailed planting plan and maintenance plans using locally obtained native species and include habitat enhancement to support native wildlife and plant species. 11. A weed management plan and weed identification list shall be included in the Biological Mitigation Plan. 12. Habitat restoration or enhancement areas shall be maintained weekly for the first three years after Phase completion and quarterly thereafter. Maintenance shall include eradication of noxious weeds found on California Department of Food and Agriculture Lists (CDFA) A and B. Noxious weeds on CDFA list C may be eradicated or otherwise managed. 13. Mitigation implementation and success shall be monitored quarterly for the first two years after completion of each Phase, semi-annually during the third year, and annually the fourth and fifth years. Annual reports documenting site inspections and site recovery status shall be prepared and sent to the County and appropriate agencies. — Mitigation Measure BIO-2c. Within the required Biological Mitigation Plan, all temporary and permanent impacts to riparian trees, wetlands, and riparian habitat shall be mitigated, as follows: 1. Temporary impacts to wetland and riparian habitat shall be mitigated at a minimum 1:1 mitigation ratio for restoration (area of restored habitat to impacted habitat). 2. Permanent impacts to state jurisdictional areas, including isolated wetlands within agricultural lands and riparian habitat will be mitigated at a 1.5:1 ratio (area of restored and enhanced habitat to impacted habitat). 3. Permanent impacts to federal wetlands shall be mitigated at a minimum 3:1 ratio (1:1 area of created to impacted habitat plus 2:1 area of created/enhanced habitat to impacted habitat). 4. Riparian trees four inches or greater measured at diameter-at-breast-height (DBH) shall be replaced in-kind at a minimum ratio of 3:1 (replaced: removed). Trees measured at 24 inches or greater DBH shall be replaced in-kind at a minimum ratio of 10:1. Willows and cottonwoods may be planted from live stakes following guidelines provided in the California Salmonid Stream Habitat Restoration Manual for planting dormant cuttings and container stock (CDFW 2010). Permanent impacts to riparian vegetation shall be mitigated at a 3:1 ratio to ensure no net loss of acreage and individual plants. 5. Replacement trees shall be planted in the fall or winter of the year in which trees were removed. All replacement trees will be planted no more than one year following the date upon which the native trees were removed. Replacement plants shall be monitored for 5 years with a goal of at least 70 percent survival at the end of the 5 -year period. Supplemental irrigation may be provided during years 1 to 3; however, supplemental watering shall not be provided during the final two years of monitoring. — Mitigation Measures BIO-2d. Project design shall be modified to preserve at a minimum the southern 275 feet of the North-South Creek Segment to protect all existing mature riparian woodland, and the proposed drainage plan shall be altered to convey remaining surface water flows from areas to the north to this channel. PH 1 - 79 — Mitigation Measure BIO-2e. To minimize impacts to riparian habitat, the Project shall stockpile sufficient emergent vegetation (e.g., cattails) for later planting in the realigned reach of Tank Farm Creek. Stockpiled vegetation shall be placed in earthen basins with the roots covered with moist soil and maintained in a moist condition during construction operations. — Mitigation Measure BIO-2g. A post-construction landscape and restoration report for each phase shall be prepared by the Environmental Monitor based on as-built drawings and site inspections to document the final grading, plantings, and habitat restoration activities. The report shall include as-built plans prepared after restoration, grading, and mitigation habitat plantings are complete. The as-built plans shall be prepared by landscape and grading contractors responsible for realignment and restoration within Tank Farm Creek. — Mitigation Measure BIO-2h. Project activities within Tank Farm Creek and drainage channels, including any tree pruning or removals, any necessary erosion repairs, or culvert removals, shall be performed when the channel is dry, planned to the satisfaction of the City Engineer and Natural Resource Manager per City Drainage Manual Standards, and be subject to monitoring by the Environmental Monitor. Upon removal of the existing steel culvert currently used for farm access across Tank Farm Creek, the channel shall be restored to match conditions immediately upstream and downstream including channel width, gradient, and vegetation. — Mitigation Measure BIO-2i. To reduce erosion and runoff from all exposed soils, all bare disturbed soils shall be hydroseeded at the completion of grading for each construction phase. The seed mix shall contain a minimum of three locally native grass species and may contain one or two sterile non-native grasses not to exceed 25 percent of the total seed mix by count. Seeding shall be completed no later than November 15 of the year in which Project activities occurred. All exposed areas where seeding is considered unsuccessful after 90 days shall receive a second application or seeding, straw, or mulch as soon as is practical to reduce erosion. — Mitigation Measure BIO-2j. The Tank Farm Creek Class I bicycle path bridge footings for creek crossings shall be placed outside mapped riparian areas and outside the top of the bank of the channel invert. The Class I bridges shall be located within areas that have little to no riparian vegetation. No construction activities or equipment shall occur in the stream channel. The placement of the bridge and footings shall be indicated on the Development Plan, VTM, and Biological Mitigation Plan, and shall show the bridges’ placement in relation to existing vegetation and the creek channel and banks. — Mitigation Measure AG-1. The Applicant shall establish an offsite agricultural conservation easement or pay in-lieu fees to a City designated fund dedicated to acquiring and preserving agricultural land. While the City’s priority is that such agricultural land be acquired in the closest feasible proximity to the City, mitigation may be implemented using one of the following options: a. The Applicant shall ensure permanent protection of farmland of equal area and quality, which does not already have permanent protection, within the City of San Luis Obispo, consistent with City Policy 8.6.3(C) and AASP Policy 3.2.18. The Applicant shall identify and purchase or place in a conservation easement a parcel of land of at least 71 acres of equal quality farmland, or provide in-lieu fees to allow the City to complete such an acquisition. b. If no suitable parcel exists within the City limits, the Applicant shall identify and purchase or place in a conservation easement a parcel of farmland, of equal quantity and PH 1 - 80 quality, within the City’s Sphere of Influence that is threatened by development of nonagricultural uses. The parcel shall be placed in an a gricultural conservation easement (refer to Figure 2 in the Land Use Element for City Sphere of Influence). The Applicant may also provide in-lieu fees to allow the City to complete such an acquisition. c. In the event that no suitable land is available within the City limits or City’s Sphere of Influence, the Applicant shall identify and purchase or place in a conservation easement a parcel of farmland, of equal quantity and quality, within the City’s urban reserve or greenbelt that is threatened by development of nonagricultural uses. This parcel shall be placed in an agricultural conservation easement (refer to Figure 1 in the Land Use Element for City Planning Area). The Applicant may also provide in-lieu fees to allow the City to complete such an acquisition. d. In the event that no suitable land for an agricultural conservation easement is available for purchase within the City limits, the City’s Sphere of Influence, or urban reserve or greenbelt Planning Area, the Applicant shall identify and purchase or place in a conservation easement a parcel of farmland, of equal quantity and quality, within County lands (e.g., agricultural lands north and south of Buckley Road) that is considered to be threatened by the conversion to nonagricultural use. This parcel shall be placed in an agricultural conservation easement. The Applicant may also provide in-lieu fees to allow the City to complete such an acquisition. The Applicant shall demonstrate that such land is as close in proximity to the City as feasible. — Mitigation Measure HYD-4a. A site-specific, geotechnical investigation shall be completed in areas proposed for HDD. Preliminary geotechnical borings shall be drilled to verify that the proposed depth of HDD is appropriate to avoid frac-outs (i.e., the depth of finest grained sediments and least fractures) and to determine appropriate HDD methods (i.e., appropriate drilling mud mixtures for specific types of sediments). The investigation shall include results from at least three borings, a geologic cross section, a discussion of drilling conditions, and a history and recommendations to prevent frac-outs. — Mitigation Measure HYD-4b. A Frac-out Contingency Plan shall be completed and shall include measures for training, monitoring, worst case scenario evaluation, equipment and materials, agency notification and prevention, containment, clean up, and disposal of released drilling muds. Preventative measures would include incorporation of the recommendations of the geotechnical investigation to determine the most appropriate HDD depth and drilling mud mixture. In accordance with the RWQCB, HDD operations shall occur for non-perennial streams such as Tank Farm Creek only when the stream is dry, and only during daylight hours. In addition, drilling pressures shall be closely monitored so that they do not exceed those needed to penetrate the formation. Monitoring by a minimum of two City-approved monitors (located both upstream and downstream, who will move enough to monitor the entire area of operations) shall occur throughout drilling operations to ensure swift response in the event of a frac-out, while containment shall be accomplished through construction of temporary berms/dikes and use of silt fences, straw bales, absorbent pads, straw wattles, and plastic sheeting. Cle an up shall be accomplished with plastic pails, shovels, portable pumps, and vacuum trucks. The Frac -out Contingency Plan shall be submitted to the City, and the RWQCB shall review the plan. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. MM BIO-1a will avoid or minimize impacts to biological resources, minimize erosion and retain sediment by implementing best management practices. MM BIO-2a would avoid the potential impacts of manufactured slopes and the Class I bicycle path intruding PH 1 - 81 into the bank of Tank Farm Creek or its riparian habitat by establishing setbacks for a wider wildlife corridor. This would also protect the creek and riparian habitat from potential impacts associated with temporary or permanent loss of habitat, construction impacts, siltation and erosion, and operational impacts associated with increased human activity. Implementation of MM BIO-2b through 2c would offset the loss of sensitive habitat and trees and compensates at appropriate replacement ratios onsite consistent with appropriate agencies, to the maximum extent feasible. Impacts to riparian vegetation would be reduced within implementation of MM BIO-2d and 2e. MM BIO-2g would ensure appropriate restoration of riparian habitat. MM BIO - 2h would reduce potential erosion and siltation impacts within the creek. Implementation of MM BIO-2i in combination with MM BIO-1a and 1b and all subparts, would reduce temporary impacts to jurisdictional aquatic features from construction activities by requiring work to be completed when water flow in the creek is dry, and appropriate measures are taken to prevent sedimentation. MM BIO-2j would address potential impacts to Tank Farm Creek from the proposed Class I bicycle path footings placement. MM HYD-4a and b would address potential impacts of frac-outs. Implementation of MM BIO-2a through MM BIO-2e, MM BIO-2g through BIO-2j, in combination with MM BIO-1a and b and MM HYD-4a and b, would reduce impacts to sensitive habitats to less than significant after mitigation. 3. Impact BIO-3. Onsite MPA development would interfere with the movement of common wildlife and special status species through establishment of confined wildlife corridors within the Project site. (Refer to pages 3.4-53 and 5-55 of the Final EIR.) a. Mitigation: The following mitigation measures would be required. — Mitigation Measure BIO-1a. The Applicant shall prepare and implement a Biological Mitigation Plan that identifies construction-related staging and maintenance areas and includes Project- specific construction best management practices (BMPs) to avoid or minimize impacts to biological resources, including all measures needed to protect riparian woodland along Tank Farm Creek, minimize erosion, and retain sediment on the Project site. Such BMPs shall include (but not be limited to) the following: 23. Construction equipment and vehicles shall be stored at least 100 feet away from Tank Farm Creek and adjacent riparian habitat, and all construction vehicle maintenance shall be performed in a designated offsite vehicle storage and maintenance area. 24. Prior to construction activities adjacent to Tank Farm Creek, the creek shall be fenced with orange construction fencing and signed to prohibit entry of construction equipment and personnel unless authorized by the City. Fencing should be located a minimum of 20 feet from the edge of the riparian canopy or top of bank, whichever is further from the creek, and shall be maintained throughout the construction period for each phase of development. 25. In the event that construction must occur within the creek or 20-foot creek setback, a biological monitor shall be present during all such activities with the authority to stop or redirect work as needed to protect biological resources. 26. Construction shall occur during daylight hours (7:00 AM to 7:00 PM or sunset, whichever is sooner) to avoid impacts to nocturnal and crepuscular (dawn and dusk activity period) species. No construction night lighting shall be permitted within 100 yards of the top of the creek banks. 27. Construction equipment shall be inspected at the beginning of each work day to ensure that no wildlife species is residing within any construction equipment (e.g., species have not climbed into wheel wells, engine compartments, or under tracks since the equipment PH 1 - 82 was last parked). Any sensitive wildlife species found during inspections shall be gently encouraged to leave the Project site by a qualified biologist or otherwise trained and City- approved personnel. 28. Pallets or secondary containment areas for chemicals, drums, or bagged materials shall be provided. Should material spills occur, materials and/or contaminants shall be cleaned from the Project site and recycled or disposed of to the satisfaction of the Regional Water Quality Control Board (RWQCB). 29. All trash and construction debris shall be picked up and properly disposed at the end of each day and waste dumpsters shall be covered with plastic sheeting at the end of each workday and during storm events. All sheeting shall be carefully secured to withstand weather conditions. 30. The Applicant shall implement erosion control measures designed to minimize erosion and retain sediment on the Project site. Such measures shall include installation of silt fencing, straw waddles, or other acceptable erosion control devices along the perimeter of Tank Farm Creek and at the perimeter of all cut or fill slopes. All drainage shall be directed to sediment basins designed to retain all sediment onsite. 31. Concrete truck and tool washout should occur in a designated location such that no runoff will reach the creek. 32. All open trenches shall be constructed with appropriate exit ramps to allow species that incidentally fall into a trench to escape. All open trenches shall be inspected at the beginning of each work day to ensure that no wildlife species is present. Any sensitive wildlife species found during inspections shall be gently encouraged to leave the Project site by a qualified biologist or otherwise trained and City-approved personnel. Trenches will remain open for the shortest period necessary to complete required work. 33. Existing facilities and disturbed areas shall be used to the maximum extent possible to minimize the amount of disturbance of undeveloped areas and all construction access roads and staging areas shall be located to avoid high quality habitat and minimize habitat fragmentation. — Mitigation Measure BIO-1b. The Applicant shall retain a qualified Environmental Monitor, subject to review and approval by the City and in consultation with CDFW, RWQCB, and USFWS to oversee compliance of the construction activities with the Biological Monitoring Plan and applicable laws, regulations, and policies. The Environmental Monitor shall monitor all construction activities, conduct a biological resources education program for all construction workers prior to the initiation of any clearing or construction activities, and provide quarterly reports to the City regarding construction activities, enforcement issues and remedial measures. The Environmental Monitor shall be responsible for conducting inspections of the work area each work day to ensure that excavation areas, restored habitats, and open water habitats in the area do not have oil sheen, liquid oil, or any other potential exposure risk to wildlife. If any exposure risk is identified, the Environmental Monitor shall implement measures that could include, but are not limited to, hazing, fencing, and wildlife removals to eliminate the exposure risk. In addition, a CDFW-approved biologist shall be present during all construction occurring within 50 feet of Tank Farm Creek, riparian habitat, drainages, and seasonal or permanent wetlands. The biologist shall also conduct sensitive species surveys immediately prior to construction activities (within the appropriate season) and shall monitor construction activities in the vicinity of habitats to be avoided (see also, MM BIO-3 and all subparts below). The work area boundaries and other off-limit areas shall be identified by the biologist and/or Environmental Monitor on a daily basis. The biologist and/or Environmental Monitor shall PH 1 - 83 inspect construction and sediment control fencing each work day during construction activities to ensure that sensitive species are not exposed to hazards. Any vegetation clearing activities shall be monitored by the biologist and/or Environmental Monitor. — Mitigation Measure BIO-2a. Project designs shall be modified to realign the Tank Farm Class I bicycle path and relocate manufactured slopes for housing pads in order to create a minimum of a 35-foot creek setback from either the top of the bank of Tank Farm Creek or edge of riparian habitat, whichever is further, for at least 90 percent of corridor length. No more than 10 percent of the length of the corridor (700 linear feet) shall have a setback of less tha n 35 feet, but at least 20 feet from the top of the bank or edge of riparian canopy, whichever is further. However, in any instance the creek setback shall be no less than 20 feet from the edge of riparian canopy or top of bank, whichever is further, consistent with Section 17.16.025 of the City of San Luis Obispo Zoning Regulations. — Mitigation Measure BIO-2b. The Biological Mitigation Plan shall provide details on timing and implementation of required habitat restoration and shall be prepared in consultation with the City’s Natural Resource Manager and CDFW. A copy of the final plan shall be submitted to the City for review and approval. The plan shall be implemented by the Project Applicant, under supervision by the City and Environmental Monitor, and: 1. Characterize the type, species composition, spatial extent, and ecological functions and values of the wetland and riparian habitat that will be removed, lost, or damaged. 2. Describe the approach that will be used to replace the wetland and riparia n habitat removed, lost, or adversely impacted by the Project, including a list of the soil, plants, and other materials that will be necessary for successful habitat replacement, and a description of planting methods, location, spacing, erosion protection, and irrigation measures that will be needed. Restoration and habitat enhancement shall include use of appropriate native species and correction of bank stabilization issues. Wetland restoration or enhancement areas shall be designed to facilitate establi shment of wetland plants such as willows, cottonwoods, rushes, and creeping wild rye. 3. Describe the habitat restoration ratio to be used in calculating the acreage of habitat to be planted, consistent with MM BIO-2c through BIO-2e below and the findings in the Biological Report (Appendix I). 4. Describe the program that will be used for monitoring the effectiveness and success of the habitat replacement approach. 5. Describe how the habitat replacement approach will be supplemented or modified if the monitoring program indicates that the current approach is not effective or successful. 6. Describe the criteria that will be used to evaluate the effectiveness and success of the habitat replacement approach. 7. Indicate the timing and schedule for the planting of replacement habitat. 8. Habitat restoration or enhancement areas shall be established within the Project boundaries, adjacent to and contiguous with existing wetlands to the maximum extent possible. Habitats suitable for Congdon’s tarplant and other native wetland species shall be created onsite. If Congdon’s tarplant is found in areas proposed for disturbance, the affected individuals shall be replaced at a 1:1 ratio through seeding in a suitable conserved natural open space area. A management plan for the species shall be developed consistent with applicable scientific literature pertinent to this species. 9. Habitat restoration or enhancement sites shall be placed within deed-restricted area(s), and shall be maintained and monitored for a minimum of five years. If sufficient onsite PH 1 - 84 mitigation area is not practicable, an offsite mitigation plan shall be prepared as part of the Biological Mitigation Plan and approved by permitting agencies. 10. The Biological Mitigation Plan shall identify appropriate restoration and enhan cement activities to compensate for impacts to seasonal creek, wetland, and riparian habitat, including a detailed planting plan and maintenance plans using locally obtained native species and include habitat enhancement to support native wildlife and plant species. 11. A weed management plan and weed identification list shall be included in the Biological Mitigation Plan. 12. Habitat restoration or enhancement areas shall be maintained weekly for the first three years after Phase completion and quarterly thereafter. Maintenance shall include eradication of noxious weeds found on California Department of Food and Agriculture Lists (CDFA) A and B. Noxious weeds on CDFA list C may be eradicated or otherwise managed. 13. Mitigation implementation and success shall be monitored quarterly for the first two years after completion of each Phase, semi-annually during the third year, and annually the fourth and fifth years. Annual reports documenting site inspections and site recovery status shall be prepared and sent to the County and appropriate agencies. — Mitigation Measure BIO-2c. Within the required Biological Mitigation Plan, all temporary and permanent impacts to riparian trees, wetlands, and riparian habitat shall be mitigated, as follows: 1. Temporary impacts to wetland and riparian habitat shall be mitigated at a minimum 1:1 mitigation ratio for restoration (area of restored habitat to impacted habitat). 2. Permanent impacts to state jurisdictional areas, including isolated wetlands within agricultural lands and riparian habitat will be mitigated at a 1.5:1 ratio (area of restored and enhanced habitat to impacted habitat). 3. Permanent impacts to federal wetlands shall be mitigated at a minimum 3:1 ratio (1:1 area of created to impacted habitat plus 2:1 area of created/enhanced habitat to impacted habitat). 4. Riparian trees four inches or greater measured at diameter-at-breast-height (DBH) shall be replaced in-kind at a minimum ratio of 3:1 (replaced: removed). Trees measured at 24 inches or greater DBH shall be replaced in-kind at a minimum ratio of 10:1. Willows and cottonwoods may be planted from live stakes following guidelines provided in the California Salmonid Stream Habitat Restoration Manual for planting dormant cuttings and container stock (CDFW 2010). Permanent impacts to riparian vegetation shall be mitigated at a 3:1 ratio to ensure no net loss of acreage and individual plants. 5. Replacement trees shall be planted in the fall or winter of the year in which trees were removed. All replacement trees will be planted no more than one year following the date upon which the native trees were removed. Replacement plants shall be monitored for 5 years with a goal of at least 70 percent survival at the end of the 5 -year period. Supplemental irrigation may be provided during years 1 to 3; however, supplemental watering shall not be provided during the final two years of monitoring. — Mitigation Measures BIO-2d. Project design shall be modified to preserve at a minimum the southern 275 feet of the North-South Creek Segment to protect all existing mature riparian woodland, and the proposed drainage plan shall be altered to convey remaining surface water flows from areas to the north to this channel. — Mitigation Measure BIO-2e. To minimize impacts to riparian habitat, the Project shall stockpile sufficient emergent vegetation (e.g., cattails) for later planting in the realigned reach of Tank PH 1 - 85 Farm Creek. Stockpiled vegetation shall be placed in earthen basins with the roots covered with moist soil and maintained in a moist condition during construction operations. — Mitigation Measure BIO-2g. A post-construction landscape and restoration report for each phase shall be prepared by the Environmental Monitor based on as-built drawings and site inspections to document the final grading, plantings, and habitat restoration activities. The report shall include as-built plans prepared after restoration, grading, and mitigation habitat plantings are complete. The as-built plans shall be prepared by landscape and grading contractors responsible for realignment and restoration within Tank Farm Creek. — Mitigation Measure BIO-2h. Project activities within Tank Farm Creek and drainage channels, including any tree pruning or removals, any necessary erosion repairs, or culvert removals, shall be performed when the channel is dry, planned to the satisfaction of the City Engineer and Natural Resource Manager per City Drainage Manual Standards, and be subject to monitoring by the Environmental Monitor. Upon removal of the existing steel culvert currently used for farm access across Tank Farm Creek, the channel shall be restored to match conditions immediately upstream and downstream including channel width, gradient, and vegetation. — Mitigation Measure BIO-2i. To reduce erosion and runoff from all exposed soils, all bare disturbed soils shall be hydroseeded at the completion of grading for each construction phase. The seed mix shall contain a minimum of three locally native grass species and may contain one or two sterile non-native grasses not to exceed 25 percent of the total seed mix by count. Seeding shall be completed no later than November 15 of the year in which Project activities occurred. All exposed areas where seeding is considered unsuccessful after 90 days shall receive a second application or seeding, straw, or mulch as soon as is practical to reduce erosion. — Mitigation Measure BIO-2j. The Tank Farm Creek Class I bicycle path bridge footings for creek crossings shall be placed outside mapped riparian areas and outside the top of the bank of the channel invert. The Class I bridges shall be located within areas that have little to no riparian vegetation. No construction activities or equipment shall occur in the stream channel. The placement of the bridge and footings shall be indicated on the Development Plan, VTM, and Biological Mitigation Plan, and shall show the bridges’ placement in relation to existing vegetation and the creek channel and banks. — Mitigation Measure BIO-3a. The City-approved qualified biologist shall conduct training to all construction personnel to familiarize construction crews with sensitive species that have the potential to occur within the Project site. This may include but is not limited to: Californi a red- legged frog, western pond turtle, Steelhead trout, bats, migratory birds, and Congdon’s tarplant. The educational program shall include a description what constitutes take, penalties for take, and the guidelines that would be followed by all construction personnel to avoid take of species during construction activities. Descriptions of the California red-legged frog and its habits, Congdon’s tarplant, nesting and migratory birds that may be encountered, and all other sensitive species that have a potential to occur within the vicinity of Project construction shall be provided. The construction crew foreman shall be responsible for ensuring that crew members comply with the guidelines and that all new personnel receive the training before partaking in construction activities. — Mitigation Measure BIO-3b. The Biological Mitigation Plan shall address wildlife and special status species movement as follows: PH 1 - 86 • Migratory and Nesting Bird Management. Grading and construction activities shall avoid the breeding season (typically assumed to be from February 15 to August 15) to the extent practicable, particularly within 50 feet of Tank Farm Creek and riparian or wetland habitat. If Project activities must be conducted during this period, pre-construction nesting bird surveys shall take place within one week of habitat disturbance associated with each phase, and if active nests are located, the following shall be implemented: • Construction activities within 50 feet of active nests shall be restricted until chicks have fledged, unless the nest belongs to a raptor, in which case a 200-foot activity restriction buffer shall be observed. • A pre-construction survey report shall be submitted to the City immediately upon completion of the survey. The report shall detail appropriate fencing or flagging of the buffer zone and make recommendations on additional monitoring requirements. A map of the Project site and nest locations shall be included with the report. • The Project biologist conducting the nesting survey shall have the authority to reduce or increase the recommended buffer depending upon site conditions and the species involved. A report of findings and recommendations for bird protection shall be submitted to the City prior to vegetation removal. • Bat Colony Management. Prior to removal of any trees over 20 inches diameter-at- breast-height (DBH), a survey shall be conducted by a CDFW-approved qualified biologist to determine if any tree proposed for removal or trimming harbors sensitive bat species or maternal bat colonies. Maternal bat colonies shall not be disturbed. If a non- maternal roost is found, the qualified biologist shall install one-way valves or other appropriate passive relocation method. For each occupied roost removed, one bat box shall be installed in similar habitat and shall have similar cavities or crevices to those which are removed, including access, ventilation, dimensions, height above ground, and thermal conditions. If a bat colony is excluded from the Project site, appropriate alternate bat habitat shall be installed in the Project site. To the extent practicable, alternate bat house installation shall be installed near the onsite drainage. • Congdon’s Tarplant Management. Prior to initiation of construction, the Applicant shall fund a site survey for Congdon’s tarplant, and: • If Congdon’s tarplant is found in areas proposed for building, the affected individuals shall be replaced at a 1:1 ratio through seeding in a suitable conserved natural open space area. • A mitigation and monitoring plan for the species shall be developed consistent with applicable scientific literature pertinent to this species. The plan shall provide for the annual success over an area of at least 1,330 square feet with approximately 500-750 individuals (the current aerial extent) and be implemented to reduce impacts to Congdon’s tarplant to a less than significant level. • The mitigation plan shall be incorporated into the Biological Mitigation Plan, wherein wetland sites shall be created and Congdon’s tarplant seeds from the site shall be reintroduced. • Sensitive Species Management. Injury or mortality to the California red-legged frog, western pond turtle, and steelhead shall be avoided. The plan shall include the foll owing measures: pre-Project surveys; worker awareness; cessation of work in occupied areas; relocation (if necessary) of frogs, turtles, and steelhead from the work area by a professional biologist authorized by the USFWS and/or CDFW; and monitoring by a qualified biologist during construction. Necessary permits shall be obtained from the state (CDFW) and federal (USACE and USFWS) regulatory agencies with jurisdiction. Any other sensitive species observed during the pre-construction surveys shall be relocated out of harm’s way by the qualified biologist into the nearest suitable habitat as PH 1 - 87 determined in consultation with the jurisdictional resource agency outside the disturbance area. — Mitigation Measure BIO-3c. Within 48 hours prior to construction activities within 50 feet of Tank Farm Creek, drainages, and seasonal wetlands, the Project site shall be surveyed for California red-legged frogs by a qualified biologist. If any California red -legged frogs are found, work within 25 linear feet in any direction of the frog shall not start until the frog has been moved from the area. The USFWS shall be consulted for appropriate action; the Applicant shall obtain a Biological Opinion from the USFWS and any additional authorization required by other regulatory agencies prior to the commencement of work. The USFWS-qualified biologist, Environmental Monitor, or USFWS personnel may determine that frog-exclusion fencing is necessary to prevent overland movement of frogs if concerns arise that frogs could enter construction areas. Frog-exclusion fencing should contain no gaps and must extend at least 18 inches above ground; fences may be opened during periods of no construction (e.g., weekends) to prevent entrapment. — Mitigation Measure BIO-3d. Within 48 hours prior to construction activities within 50 feet of Tank Farm Creek, drainages, seasonal wetlands, and riparian habitat, the Project site shall be surveyed for western pond turtles by a qualified biologist. If any western pond turtles are found, work shall cease until the turtle is relocated to the nearest suitable habitat. The qualified biologist shall monitor all ground breaking work conducted within 50 feet of western pond turtle habitat. The City-approved biologist Environmental Monitor may determine that silt fencing shall be installed adjacent to western pond turtle habitat if concerns arise that the western pond turtle overland movement could allow them to access construction areas. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. (See FEIR pages 3.4-61 through 3.4-62 and 5-55.) MM BIO-3a through 3d would reduce potential direct permanent impacts to wildlife species from loss of habitat and loss of species. MM BIO-3a would provide educational training all construction personnel in order for them to identify sensitive species, take appropriate actions, and avoid “take”. MM BIO-3b through 3d would reduce potential impacts to special status birds and bats to less than significant by avoiding disturbance during the breeding season and roosting times when these species are most vulnerable to disturbance and ensuring compliance with appropriate avoidance buffers if construction during the season cannot be avoided. Mitigation would limit construction in the creek during nesting season and peak activity periods, thus reducing impacts to migrating species. Implementation of MM BIO-3b through 3d would also reduce potential impacts to special status amphibians, reptiles, and fish by requiring plan preparation with requirements for pre-construction surveys for the species, including development of necessary additional avoidance and minimization measures, and onsite monitoring during construction to prevent construction runoff from contaminating aquatic habitats. MM BIO -3b would minimize or avoid impacts to Congdon’s tarplant. MM BIO-1a will avoid or minimize impacts to biological resources and sensitive species by implementing best management practices. MM BIO-2a would avoid the potential impacts of manufactured slopes and the Class I bicycle path intruding into the bank of Tank Farm Creek or its riparian habitat by establishing setbacks for a wider wildlife corridor. This would also protect sensitive species from potential impacts associated with temporary or permanent loss of habitat, construction impacts, siltation and erosion, and operational impacts associated with increased human activity. Implementation of MM BIO-2b through 2c would offset the loss of sensitive habitat and trees and compensates at appropriate replacement ratios onsite consistent with appropriate agencies, to the maximum extent feasible. PH 1 - 88 Impacts to sensitive species would be reduced with implementation of MM BIO-2d and 2e. MM BIO-2g would ensure appropriate restoration of riparian habitat. MM BIO-2h would reduce potential erosion and siltation impacts within the creek. Implementation of MM BIO -2i in combination with MM BIO-1a and 1b and all subparts, would reduce temporary impacts to sensitive species from construction activities, and appropriate measures are taken to prevent sedimentation. MM BIO-2j would address potential impacts to Tank Farm Creek from the proposed Class I bicycle path footings placement. Impacts would be less than significant after mitigation. . 4. Impact BIO-4. Offsite improvements to and extension of Buckley Road and associated bicycle and pedestrian paths have the potential to create permanent impacts to special status species through removal of suitable habitat. (Refer to page 3.4-62 and 5-55 of the Final EIR.) a. Mitigation: The following mitigation measures would be required. — Mitigation Measure BIO-1a. The Applicant shall prepare and implement a Biological Mitigation Plan that identifies construction-related staging and maintenance areas and includes Project- specific construction best management practices (BMPs) to avoid or minimize impacts to biological resources, including all measures needed to protect riparian woodland along Tank Farm Creek, minimize erosion, and retain sediment on the Project site. Such BMPs shall include (but not be limited to) the following: 34. Construction equipment and vehicles shall be stored at least 100 feet away from Tank Farm Creek and adjacent riparian habitat, and all construction vehicle maintenance shall be performed in a designated offsite vehicle storage and maintenance area. 35. Prior to construction activities adjacent to Tank Farm Creek, the creek shall be fenced with orange construction fencing and signed to prohibit entry of construction equipment and personnel unless authorized by the City. Fencing should be located a minimum of 20 feet from the edge of the riparian canopy or top of bank, whichever is further from the creek, and shall be maintained throughout the construction period for each phase of development. 36. In the event that construction must occur within the creek or 20 -foot creek setback, a biological monitor shall be present during all such activities with the authority to stop or redirect work as needed to protect biological resources. 37. Construction shall occur during daylight hours (7:00 AM to 7:00 PM or sunset, whichever is sooner) to avoid impacts to nocturnal and crepuscular (dawn and dusk activity period) species. No construction night lighting shall be permitted within 100 yards of the top of the creek banks. 38. Construction equipment shall be inspected at the beginning of each work day to ensure that no wildlife species is residing within any construction equipme nt (e.g., species have not climbed into wheel wells, engine compartments, or under tracks since the equipment was last parked). Any sensitive wildlife species found during inspections shall be gently encouraged to leave the Project site by a qualified biologist or otherwise trained and City- approved personnel. 39. Pallets or secondary containment areas for chemicals, drums, or bagged materials shall be provided. Should material spills occur, materials and/or contaminants shall be cleaned from the Project site and recycled or disposed of to the satisfaction of the Regional Water Quality Control Board (RWQCB). 40. All trash and construction debris shall be picked up and properly disposed at the end of each day and waste dumpsters shall be covered with plastic sheeting at the end of each PH 1 - 89 workday and during storm events. All sheeting shall be carefully secured to withstand weather conditions. 41. The Applicant shall implement erosion control measures designed to minimize erosion and retain sediment on the Project site. Such measures shall include installation of silt fencing, straw waddles, or other acceptable erosion control devices along the perimeter of Tank Farm Creek and at the perimeter of all cut or fill slopes. All drainage shall be directed to sediment basins designed to retain all sediment onsite. 42. Concrete truck and tool washout should occur in a designated location such that no runoff will reach the creek. 43. All open trenches shall be constructed with appropriate exit ramps to allow species that incidentally fall into a trench to escape. All open trenches shall be inspected at the beginning of each work day to ensure that no wildlife species is present. Any sensitive wildlife species found during inspections shall be gently encouraged to leave the Project site by a qualified biologist or otherwise trained and City-approved personnel. Trenches will remain open for the shortest period necessary to complete required work. 44. Existing facilities and disturbed areas shall be used to the maximum extent possible to minimize the amount of disturbance of undeveloped areas and all construction access roads and staging areas shall be located to avoid high quality habitat and minimize habitat fragmentation. — Mitigation Measure BIO-1b. The Applicant shall retain a qualified Environmental Monitor, subject to review and approval by the City and in consultation with CDFW, RWQCB, and USFWS to oversee compliance of the construction activities with the Biological Monitoring Plan and applicable laws, regulations, and policies. The Environmental Monitor shall monitor all construction activities, conduct a biological resources education program for all construction workers prior to the initiation of any clearing or construction activities, and provide quarterly reports to the City regarding construction activities, enforcement issues and remedial measures. The Environmental Monitor shall be responsible for conducting inspections of the work area each work day to ensure that excavation areas, restored habitats, and open water habitats in the area d o not have oil sheen, liquid oil, or any other potential exposure risk to wildlife. If any exposure risk is identified, the Environmental Monitor shall implement measures that could include, but are not limited to, hazing, fencing, and wildlife removals to eliminate the exposure risk. In addition, a CDFW-approved biologist shall be present during all construction occurring within 50 feet of Tank Farm Creek, riparian habitat, drainages, and seasonal or permanent wetlands. The biologist shall also conduct sensitive species surveys immediately prior to construction activities (within the appropriate season) and shall monitor construction activities in the vicinity of habitats to be avoided (see also, MM BIO-3 and all subparts below). The work area boundaries and other off-limit areas shall be identified by the biologist and/or Environmental Monitor on a daily basis. The biologist and/or Environmental Monitor shall inspect construction and sediment control fencing each work day during construction activities to ensure that sensitive species are not exposed to hazards. Any vegetation clearing activities shall be monitored by the biologist and/or Environmental Monitor. — Mitigation Measure BIO-3a. The City-approved qualified biologist shall conduct training to all construction personnel to familiarize construction crews with sensitive species that have the potential to occur within the Project site. This may include but is not limited to: Californi a red- legged frog, western pond turtle, Steelhead trout, bats, migratory birds, and Congdon’s tarplant. The educational program shall include a description what constitutes take, penalties for take, and PH 1 - 90 the guidelines that would be followed by all construction personnel to avoid take of species during construction activities. Descriptions of the California red-legged frog and its habits, Congdon’s tarplant, nesting and migratory birds that may be encountered, and all other sensitive species that have a potential to occur within the vicinity of Project construction shall be provided. The construction crew foreman shall be responsible for ensuring that crew members comply with the guidelines and that all new personnel receive the training before partaking in construction activities. — Mitigation Measure BIO-3b. The Biological Mitigation Plan shall address wildlife and special status species movement as follows: o Migratory and Nesting Bird Management. Grading and construction activities shall avoid the breeding season (typically assumed to be from February 15 to August 15) to the extent practicable, particularly within 50 feet of Tank Farm Creek and riparian or wetland habitat. If Project activities must be conducted during this period, pre -construction nesting bird surveys shall take place within one week of habitat disturbance associated with each phase, and if active nests are located, the following shall be implemented: o Construction activities within 50 feet of active nests shall be restricted until chicks have fledged, unless the nest belongs to a raptor, in which case a 200-foot activity restriction buffer shall be observed. o A pre-construction survey report shall be submitted to the City immediately upon completion of the survey. The report shall detail appropriate fencing or flagging of the buffer zone and make recommendations on additional monitoring requirements. A map of the Project site and nest locations shall be included with the report. o The Project biologist conducting the nesting survey shall have th e authority to reduce or increase the recommended buffer depending upon site conditions and the species involved. A report of findings and recommendations for bird protection shall be submitted to the City prior to vegetation removal. o Bat Colony Management. Prior to removal of any trees over 20 inches diameter-at- breast-height (DBH), a survey shall be conducted by a CDFW-approved qualified biologist to determine if any tree proposed for removal or trimming harbors sensitive bat species or maternal bat colonies. Maternal bat colonies shall not be disturbed. If a non- maternal roost is found, the qualified biologist shall install one-way valves or other appropriate passive relocation method. For each occupied roost removed, one bat box shall be installed in similar habitat and shall have similar cavities or crevices to those which are removed, including access, ventilation, dimensions, height above ground, and thermal conditions. If a bat colony is excluded from the Project site, appropriate alternate bat habitat shall be installed in the Project site. To the extent practicable, alternate bat house installation shall be installed near the onsite drainage. o Congdon’s Tarplant Management. Prior to initiation of construction, the Applicant shall fund a site survey for Congdon’s tarplant, and: o If Congdon’s tarplant is found in areas proposed for building, the affected individuals shall be replaced at a 1:1 ratio through seeding in a suitable conserved natural open space area. o A mitigation and monitoring plan for the species shall be developed consistent with applicable scientific literature pertinent to this species. The plan shall provide for the annual success over an area of at least 1,330 square feet with approximately 500-750 individuals (the current aerial extent) and be implemented to reduce impacts to Congdon’s tarplant to a less than significant level. PH 1 - 91 o The mitigation plan shall be incorporated into the Biological Mitigation Plan, wherein wetland sites shall be created and Congdon’s tarplant seeds from the site shall be reintroduced. o Sensitive Species Management. Injury or mortality to the California red-legged frog, western pond turtle, and steelhead shall be avoided. The plan shall include the following measures: pre-Project surveys; worker awareness; cessation of work in occupied areas; relocation (if necessary) of frogs, turtles, and steelhead from the work area by a professional biologist authorized by the USFWS and/or CDFW; and monitoring by a qualified biologist during construction. Necessary permits shall be obtained from the state (CDFW) and federal (USACE and USFWS) regulatory agencies with jurisdiction. Any other sensitive species observed during the pre-construction surveys shall be relocated out of harm’s way by the qualified biologist into the nearest suitable habitat as determined in consultation with the jurisdictional resource agency outside the disturbance area. — Mitigation Measure BIO-4. The required Biological Mitigation Plan shall address bat colonies for the Buckley Road Extension site. Bat surveys shall be conducted in buildings proposed for demolition. If surveys determine bats are present, bat exclusion devices shall be installed between August and November, and building demolition would occur between November and March. If demolition of structures must occur during the bat breeding season, buildings must be inspected and deemed clear of bat colonies/roosts within seven days of demolition and an appropriately trained and approved biologist must conduct a daily site-clearance during demolition. If bats are roosting in a structure in the Project site during the daytime but are not part of an active maternity colony, then exclusion measures must include one-way valves that allow bats to get out but are designed so that the bats may not re-enter the structure. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. (See pages 3.4-63 and 5-55 of the Final EIR.) With the implementation of mitigation measures MM BIO-3a through 3b, as well as MM BIO-4, which require pre-construction surveys and exclusion measures for sensitive bats and protection or replacement of the Congdon’s tarplant, impacts to bat colonies and sensitive plant species due to the Buckley Road Extension would be less than significant after mitigation. Additionally, with MM BIO-1a and 1b, which provide best management practices during construction, impacts to sensitive species in the offsite Buckley Road Extension site would be less than significant after mitigation. 5. Impact BIO-5. Long-term operation of the MPA has the potential to create significant impacts to biological resources as a result of increased light, noise, and increased human presence and other urban edge effects. (Refer to pages 3.4-64 and 5-55- of the Final EIR.) a. Mitigation: The following mitigation measures would be required. — Mitigation Measure BIO-5a. All exterior building lights facing Tank Farm Creek shall be hooded to prevent light spillover into the creek; all residential street lights over 10 feet in height shall be setback a minimum of 100 feet from the top of the creek bank and hooded and/or directed away from the creek. Any night lighting adjacent to the creek (e.g., walkway lights) shall be of low voltage and hooded downward. Artificial light levels within 20 feet of the top of the creek bank shall not exceed 1-foot candle or the lowest level of illumination found to be feasible by the City. PH 1 - 92 — Mitigation Measure BIO-5b. Tank Farm Creek restoration/enhancement plantings shall include native vegetation, such as oaks, cottonwoods, willows, and sycamores along the entire length of the Project’s creek frontage in order to minimize light spillover into the creek. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. Implementation of MM BIO-5a will restrict lighting near Tank Farm Creek and MM BIO-5b will ensure native vegetation is installed along the creek frontage to minimize light spillover, reducing the impact to less than significant. (See F EIR pages 3.4-65 and 5-55 to 5-56.) 6. Impact BIO-6. MPA development could impact offsite biological resources from sedimentation into Tank Farm Creek. (Refer to pages 3.4-66 and 5-56 of the Final EIR.) a. Mitigation: The following mitigation measures would be required. — Mitigation Measure BIO-1a. The Applicant shall prepare and implement a Biological Mitigation Plan that identifies construction-related staging and maintenance areas and includes Project- specific construction best management practices (BMPs) to avoid or minimize impacts to biological resources, including all measures needed to protect riparian woodland along Tank Farm Creek, minimize erosion, and retain sediment on the Project site. Such BMPs shall include (but not be limited to) the following: 1. Construction equipment and vehicles shall be stored at least 100 feet away from Tank Farm Creek and adjacent riparian habitat, and all construction vehicle maintenance shall be performed in a designated offsite vehicle storage and maintenance area. 2. Prior to construction activities adjacent to Tank Farm Creek, the creek shall be fenced with orange construction fencing and signed to prohibit entry of construction equipment and personnel unless authorized by the City. Fencing should be located a minimum of 20 feet from the edge of the riparian canopy or top of bank, whichever is further from the creek, and shall be maintained throughout the construction period for each phase of development. 3. In the event that construction must occur within the creek or 20 -foot creek setback, a biological monitor shall be present during all such activities with the authority to stop or redirect work as needed to protect biological resources. 4. Construction shall occur during daylight hours (7:00 AM to 7:00 PM or sunset, whichever is sooner) to avoid impacts to nocturnal and crepuscular (dawn and dusk activity period) species. No construction night lighting shall be permitted within 100 yards of the top of the creek banks. 5. Construction equipment shall be inspected at the beginning of each work day to ensure that no wildlife species is residing within any construction equipment (e.g., species have not climbed into wheel wells, engine compartments, or under tracks since the equipment was last parked). Any sensitive wildlife species found during inspections shall be gently encouraged to leave the Project site by a qualified biologist or otherwise trained and City- approved personnel. 6. Pallets or secondary containment areas for chemicals, drums, or bagged materials shall be provided. Should material spills occur, materials and/or contaminants shall be cleaned from the Project site and recycled or disposed of to the satisfaction of the Regional Water Quality Control Board (RWQCB). PH 1 - 93 7. All trash and construction debris shall be picked up and properly disposed at the end of each day and waste dumpsters shall be covered with plastic sheeting at the end of each workday and during storm events. All sheeting shall be carefully secured to withstand weather conditions. 8. The Applicant shall implement erosion control measures designed to minimize erosion and retain sediment on the Project site. Such measures shall include installation of silt fencing, straw waddles, or other acceptable erosion control devices along the perimeter of Tank Farm Creek and at the perimeter of all cut or fill slopes. All drainage shall be directed to sediment basins designed to retain all sediment onsite. 9. Concrete truck and tool washout should occur in a designated location such that no runoff will reach the creek. 10. All open trenches shall be constructed with appropriate exit ramps to allow species that incidentally fall into a trench to escape. All open trenches shall be inspected at the beginning of each work day to ensure that no wildlife species is present. Any sensitive wildlife species found during inspections shall be gently encouraged to leave the Project site by a qualified biologist or otherwise trained and City-approved personnel. Trenches will remain open for the shortest period necessary to complete required work. 11. Existing facilities and disturbed areas shall be used to the maximum extent possible to minimize the amount of disturbance of undeveloped areas and all construction access roads and staging areas shall be located to avoid high quality habitat and minimize habitat fragmentation. — Mitigation Measure BIO-1b. The Applicant shall retain a qualified Environmental Monitor, subject to review and approval by the City and in consultation with CDFW, RWQCB, and USFWS to oversee compliance of the construction activities with the Biological Monitoring Plan and applicable laws, regulations, and policies. The Environmental Monitor shall monitor all construction activities, conduct a biological resources education program for all construction workers prior to the initiation of any clearing or construction activities, and provide quarterly reports to the City regarding construction activities, enforcement issues and remedial measures. The Environmental Monitor shall be responsible for conducting inspections of the work area each work day to ensure that excavation areas, restored habitats, and open water habitats in the area do not have oil sheen, liquid oil, or any other potential exposure risk to wildlife. If any exposure risk is identified, the Environmental Monitor shall implement measures that could include, but are not limited to, hazing, fencing, and wildlife removals to eliminate the exposure risk. In addition, a CDFW-approved biologist shall be present during all construction occurring within 50 feet of Tank Farm Creek, riparian habitat, drainages, and seasonal or permanent wetlands. The biologist shall also conduct sensitive species surveys immediately prior to construction activities (within the appropriate season) and shall monitor construction activities in the vicinit y of habitats to be avoided (see also, MM BIO-3 and all subparts below). The work area boundaries and other off-limit areas shall be identified by the biologist and/or Environmental Monitor on a daily basis. The biologist and/or Environmental Monitor shall inspect construction and sediment control fencing each work day during construction activities to ensure that sensitive species are not exposed to hazards. Any vegetation clearing activities shall be monitored by the biologist and/or Environmental Monitor. — Mitigation Measure BIO-2a. Project designs shall be modified to realign the Tank Farm Class I bicycle path and relocate manufactured slopes for housing pads in order to create a minimum of a 35-foot creek setback from either the top of the bank of Tan k Farm Creek or edge of riparian PH 1 - 94 habitat, whichever is further, for at least 90 percent of corridor length. No more than 10 percent of the length of the corridor (700 linear feet) shall have a setback of less than 35 feet, but at least 20 feet from the top of the bank or edge of riparian canopy, whichever is further. However, in any instance the creek setback shall be no less than 20 feet from the edge of riparian canopy or top of bank, whichever is further, consistent with Section 17.16.025 of the City of San Luis Obispo Zoning Regulations.  Mitigation Measure BIO-2h. Project activities within Tank Farm Creek and drainage channels, including any tree pruning or removals, any necessary erosion repairs, or culvert removals, shall be performed when the channel is dry, planned to the satisfaction of the City Engineer and Natural Resource Manager per City Drainage Manual Standards, and be subject to monitoring by the Environmental Monitor. Upon removal of the existing steel culvert currently used for farm access across Tank Farm Creek, the channel shall be restored to match conditions immediately upstream and downstream including channel width, gradient, and vegetation.  Mitigation Measure BIO-2j. The Tank Farm Creek Class I bicycle path bridge footings for creek crossings shall be placed outside mapped riparian areas and outside the top of the bank of the channel invert. The Class I bridges shall be located within areas that have little to no riparian vegetation. No construction activities or equipment shall occur in the stream channel. The placement of the bridge and footings shall be indicated on the Development Plan, VTM, and Biological Mitigation Plan, and shall show the bridges’ placement in relation to existing vegetation and the creek channel and banks.  Mitigation Measure BIO-6. All work in and within 100 feet of Tank Farm Creek, including work within the creek setback, shall occur outside the rainy season (April 15 to October 15, unless approved otherwise by RWQCB), during periods when the creek channel is dry and water flows are absent. — Mitigation Measure HYD-1a. Prior to the issuance of any construction/grading permit and/or the commencement of any clearing, grading, or excavation, the Applicant shall submit a Notice of Intent (NOI) for discharge from the Project site to the California SWRCB Storm Water Permit Unit. — Plan Requirements and Timing. Prior to issuance of grading permits for Phase 1 the Applicant shall submit a copy of the NOI to the City. — Mitigation Measure HYD-1b. The Applicant shall require the building contractor to prepare and submit a Storm Water Pollution Prevention Plan (SWPPP) to the City 45 days prior to the start of work for approval. The contractor is responsible for understanding the State General Permit and instituting the SWPPP during construction. A SWPPP for site construction shall be developed prior to the initiation of grading and implemented for all construction activity on the Project site in excess of one (1) acre, or where the area of disturbance is less than one acre but is part of the Project’s plan of development that in total disturbs one or more acres. The SWPPP shall identify potential pollutant sources that may affect the quality of discharges to storm water, and shall include specific BMPs to control the discharge of material from the site. The following BMP methods shall include, but would not be limited to: • Temporary detention basins, straw bales, sand bagging, mulching, erosion control blankets, silt fencing, and soil stabilizers shall be used. • Soil stockpiles and graded slopes shall be covered after 14 days of inactivity and 24 hours prior to and during inclement weather conditions. PH 1 - 95 • Fiber rolls shall be placed along the top of exposed slopes and at the toes of graded areas to reduce surface soil movement, as necessary. • A routine monitoring plan shall be implemented to ensure success of all onsite erosion and sedimentation control measures. • Dust control measures shall be implemented to ensure success of all onsite activities to control fugitive dust. • Streets surrounding the Project site shall be cleaned daily or as necessary. • BMPs shall be strictly followed to prevent spills and discharges of pollutants onsite (material and container storage, proper trash disposal, construction entrances, etc.). • Sandbags, or other equivalent techniques, shall be utilized along graded areas to prevent siltation transport to the surrounding areas. • Additional BMPs shall be implemented for any fuel storage or fuel handling that could occur onsite during construction. The SWPPP must be prepared in accordance with the guidelines adopted by the SWRCB. The SWPPP shall be submitted to the City along with grading/development plans for review and approval. The Applicant shall file a Notice of Completion for construction of the development, identifying that pollution sources were controlled during the construction of the Project and implementing a closure SWPPP for the site. • Plan Requirements and Timing. The Applicant shall prepare a SWPPP that includes the above and any additional required BMPs. The SWPPP and notices shall be submitted for review and approval by the City prior to the issuance of grading permits for Phase 1 construction. The SWPPP shall be designed to address erosion and sediment control during all phases of development of the site until all disturbed areas are permanently stabilized. — Mitigation Measure HYD-1c. Installation of the eight drainage outlets within Tank Farm Creek shall occur within the dry season (May through October). b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. Significant impacts to downstream biological resources from construction related sedimentation would be reduced to less than significant with the implementation of MM BIO-1a and 1b, MM BIO-6, MM HYD-1a through -1c. (See FEIR pages 3.4-67 and 5-56.) 7. Cumulative Biological Resources Impacts. With retention of open space along the creek corridor and incorporation of project specific mitigation measures, the project would be consistent with the LUCE’s determination for a less than significant cumulative effect, and the MPA’s contribution to regional cumulative impacts to biological resources would be significant but mitigable. (Refer to pages 3.4-67 and 5-56 of the Final EIR.) a. Mitigation: The following mitigation measures would be required to reduce the Project’s cumulatively considerable impacts to biological resources to a less than significant level. — Mitigation Measure AG-1. The Applicant shall establish an offsite agricultural conservation easement or pay in-lieu fees to a City designated fund dedicated to acquiring and preserving agricultural land. While the City’s priority is that such agricultural land be acquired in the c losest feasible proximity to the City, mitigation may be implemented using one of the following options: PH 1 - 96 e. The Applicant shall ensure permanent protection of farmland of equal area and quality, which does not already have permanent protection, within the City of San Luis Obispo, consistent with City Policy 8.6.3(C) and AASP Policy 3.2.18. The Applicant shall identify and purchase or place in a conservation easement a parcel of land of at least 71 acres of equal quality farmland, or provide in-lieu fees to allow the City to complete such an acquisition. f. If no suitable parcel exists within the City limits, the Applicant shall identify and purchase or place in a conservation easement a parcel of farmland, of equal quantity and quality, within the City’s Sphere of Influence that is threatened by development of nonagricultural uses. The parcel shall be placed in an agricultural conservation easement (refer to Figure 2 in the Land Use Element for City Sphere of Influence). The Applicant may also provide in-lieu fees to allow the City to complete such an acquisition. g. In the event that no suitable land is available within the City limits or City’s Sphere of Influence, the Applicant shall identify and purchase or place in a conservation easement a parcel of farmland, of equal quantity and quality, within the City’s urban reserve or greenbelt that is threatened by development of nonagricultural uses. This parcel shall be placed in an agricultural conservation easement (refer to Figure 1 in the Land Use Element for City Planning Area). The Applicant may also provide in-lieu fees to allow the City to complete such an acquisition. h. In the event that no suitable land for an agricultural conservation easement is available for purchase within the City limits, the City’s Sphere of Influence, or urban reserve or greenbelt Planning Area, the Applicant shall identify and purchase or place in a conservation easement a parcel of farmland, of equal quantity and quality, within County lands (e.g., agricultural lands north and south of Buckley Road) that is considered to be threatened by the conversion to nonagricultural use. This parcel shall be placed in an agricultural conservation easement. The Applicant may also provide in-lieu fees to allow the City to complete such an acquisition. The Applicant shall demonstrate that such land is as close in proximity to the City as feasible. — Mitigation Measure BIO-1a. The Applicant shall prepare and implement a Biological Mitigation Plan that identifies construction-related staging and maintenance areas and includes Project- specific construction best management practices (BMPs) to avoid or minimize impacts to biological resources, including all measures needed to protect riparian woodland along Tank Farm Creek, minimize erosion, and retain sediment on the Project site. Such BMPs shall include (but not be limited to) the following: 1. Construction equipment and vehicles shall be stored at least 100 feet away from Tank Farm Creek and adjacent riparian habitat, and all construction vehicle maintenance shall be performed in a designated offsite vehicle storage and maintenance area. 2. Prior to construction activities adjacent to Tank Farm Creek, the creek shall be fenced with orange construction fencing and signed to prohibit entry of construction equipment and personnel unless authorized by the City. Fencing should be located a minimum of 20 feet from the edge of the riparian canopy or top of bank, whichever is further from the creek, and shall be maintained throughout the construction period for each phase of development. 3. In the event that construction must occur within the creek or 20 -foot creek setback, a biological monitor shall be present during all such activities with the authority to stop or redirect work as needed to protect biological resources. 4. Construction shall occur during daylight hours (7:00 AM to 7:00 PM or sunset, whichever is sooner) to avoid impacts to nocturnal and crepuscular (dawn and dusk PH 1 - 97 activity period) species. No construction night lighting shall be permitted within 100 yards of the top of the creek banks. 5. Construction equipment shall be inspected at the beginning of each work day to ensure that no wildlife species is residing within any construction equipment (e.g., species have not climbed into wheel wells, engine compartments, or under tracks since the equipment was last parked). Any sensitive wildlife species found during inspections shall be gently encouraged to leave the Project site by a qualified biologist or otherwise trained and City- approved personnel. 6. Pallets or secondary containment areas for chemicals, drums, or bagged materials shall be provided. Should material spills occur, materials and/or contaminants shall be cleaned from the Project site and recycled or disposed of to the satisfaction of the Regional Water Quality Control Board (RWQCB). 7. All trash and construction debris shall be picked up and properly disposed at the end of each day and waste dumpsters shall be covered with plastic sheeting at the end of each workday and during storm events. All sheeting shall be carefully secured to withstand weather conditions. 8. The Applicant shall implement erosion control measures designed to minimize erosion and retain sediment on the Project site. Such measures shall include installation of silt fencing, straw waddles, or other acceptable erosion control devices along the perimeter of Tank Farm Creek and at the perimeter of all cut or fill slopes. All drainage shall be directed to sediment basins designed to retain all sediment onsite. 9. Concrete truck and tool washout should occur in a designated location such that no runoff will reach the creek. 10. All open trenches shall be constructed with appropriate exit ramps to allow species that incidentally fall into a trench to escape. All open trenches shall be inspected at the beginning of each work day to ensure that no wildlife species is present. Any sensitive wildlife species found during inspections shall be gently encouraged to leave the Project site by a qualified biologist or otherwise trained and City-approved personnel. Trenches will remain open for the shortest period necessary to complete required work. 11. Existing facilities and disturbed areas shall be used to the maximum extent possible to minimize the amount of disturbance of undeveloped areas and all construction access roads and staging areas shall be located to avoid high quality habitat and minimize habitat fragmentation. — Mitigation Measure BIO-1b. The Applicant shall retain a qualified Environmental Monitor, subject to review and approval by the City and in consultation with CDFW, RWQCB, and USFWS to oversee compliance of the construction activities with the Biological Monitoring Plan and applicable laws, regulations, and policies. The Environmental Monitor shall monitor all construction activities, conduct a biological resources education program for all construction workers prior to the initiation of any clearing or construction activities, and provide quarterly reports to the City regarding construction activities, enforcement issues and remedial measures. The Environmental Monitor shall be responsible for conducting inspections of the work area each work day to ensure that excavation areas, restored habitats, and open water habitats in the area do not have oil sheen, liquid oil, or any other potential exposure risk to wildlife. If any exposure risk is identified, the Environmental Monitor shall implement measures that could include, but are not limited to, hazing, fencing, and wildlife removals to eliminate the exposure risk. In addition, a CDFW-approved biologist shall be present during all construction occurring within 50 feet of Tank Farm Creek, riparian habitat, drainages, and seasonal or permanent wetlands. The biologist shall also conduct sensitive species surveys immediately prior to construction activities PH 1 - 98 (within the appropriate season) and shall monitor construction activities in the vicinity of habitats to be avoided (see also, MM BIO-3 and all subparts below). The work area boundaries and other off-limit areas shall be identified by the biologist and/or Environmental Monitor on a daily basis. The biologist and/or Environmental Monitor shall inspect construction and sediment control fencing each work day during construction activities to ensure that sensitive species are not exposed to hazards. Any vegetation clearing activities shall be monitored by the biologist and/or Environmental Monitor. — Mitigation Measure BIO-2a. Project designs shall be modified to realign the Tank Farm Class I bicycle path and relocate manufactured slopes for housing pads in order to create a minimum of a 35-foot creek setback from either the top of the bank of Tank Farm Creek or edge of riparian habitat, whichever is further, for at least 90 percent of corridor length. No more than 10 percent of the length of the corridor (700 linear feet) shall have a setback of less than 35 feet, but at least 20 feet from the top of the bank or edge of riparian canopy, whichever is further. However, in any instance the creek setback shall be no less than 20 feet from the edge of riparian canopy or top of bank, whichever is further, consistent with Section 17.16.025 of the City of San Luis Obispo Zoning Regulations. — Mitigation Measure BIO-2b. The Biological Mitigation Plan shall provide details on timing and implementation of required habitat restoration and shall be prepared in consultation with the City’s Natural Resource Manager and CDFW. A copy of the final plan shall be submitted to the City for review and approval. The plan shall be implemented by the Project Applicant, under supervision by the City and Environmental Monitor, and: 1. Characterize the type, species composition, spatial extent, and ecological functions and values of the wetland and riparian habitat that will be removed, lost, or damaged. 2. Describe the approach that will be used to replace the wetland and riparian habitat removed, lost, or adversely impacted by the Project, including a list of th e soil, plants, and other materials that will be necessary for successful habitat replacement, and a description of planting methods, location, spacing, erosion protection, and irrigation measures that will be needed. Restoration and habitat enhancement shall include use of appropriate native species and correction of bank stabilization issues. Wetland restoration or enhancement areas shall be designed to facilitate establishment of wetland plants such as willows, cottonwoods, rushes, and creeping wild rye. 3. Describe the habitat restoration ratio to be used in calculating the acreage of habitat to be planted, consistent with MM BIO-2c through BIO-2e below and the findings in the Biological Report (Appendix I). 4. Describe the program that will be used for monitoring the effectiveness and success of the habitat replacement approach. 5. Describe how the habitat replacement approach will be supplemented or modified if the monitoring program indicates that the current approach is not effective or successful. 6. Describe the criteria that will be used to evaluate the effectiveness and success of the habitat replacement approach. 7. Indicate the timing and schedule for the planting of replacement habitat. 8. Habitat restoration or enhancement areas shall be established within the Project boundaries, adjacent to and contiguous with existing wetlands to the maximum extent possible. Habitats suitable for Congdon’s tarplant and other native wetland species shall be created onsite. If Congdon’s tarplant is found in areas proposed for disturbance, the affected individuals shall be replaced at a 1:1 ratio through seeding in a suitable PH 1 - 99 conserved natural open space area. A management plan for the species shall be developed consistent with applicable scientific literature pertinent to this species. 9. Habitat restoration or enhancement sites shall be placed within deed-restricted area(s), and shall be maintained and monitored for a minimum of five years. If sufficient onsite mitigation area is not practicable, an offsite mitigation plan shall be prepared as part of the Biological Mitigation Plan and approved by permitting agencies. 10. The Biological Mitigation Plan shall identify appropriate restoration and enhancement activities to compensate for impacts to seasonal creek, wetland, and riparian habitat, including a detailed planting plan and maintenance plans using locally obtained native species and include habitat enhancement to support native wildlife and plant species. 11. A weed management plan and weed identification list shall be included in the Biological Mitigation Plan. 12. Habitat restoration or enhancement areas shall be maintained weekly for the first three years after Phase completion and quarterly thereafter. Maintenance shall include eradication of noxious weeds found on California Department of Food and Agriculture Lists (CDFA) A and B. Noxious weeds on CDFA list C may be eradicated or otherwise managed. 13. Mitigation implementation and success shall be monitored quarterly for the first two years after completion of each Phase, semi-annually during the third year, and annually the fourth and fifth years. Annual reports documenting site inspections and site recovery status shall be prepared and sent to the County and appropriate agencies. — Mitigation Measure BIO-2c. Within the required Biological Mitigation Plan, all temporary and permanent impacts to riparian trees, wetlands, and riparian habitat shall be mitigated, as follows: 6. Temporary impacts to wetland and riparian habitat shall be mitigated at a minimum 1:1 mitigation ratio for restoration (area of restored habitat to impacted habitat). 7. Permanent impacts to state jurisdictional areas, including isolated wetlands within agricultural lands and riparian habitat will be mitigated at a 1.5:1 ratio (area of restored and enhanced habitat to impacted habitat). 8. Permanent impacts to federal wetlands shall be mitigated at a minimum 3:1 ratio (1:1 area of created to impacted habitat plus 2:1 area of created/enhanced habitat to impacted habitat). 9. Riparian trees four inches or greater measured at diameter-at-breast-height (DBH) shall be replaced in-kind at a minimum ratio of 3:1 (replaced: removed). Trees measured at 24 inches or greater DBH shall be replaced in-kind at a minimum ratio of 10:1. Willows and cottonwoods may be planted from live stakes following guidelines provided in the California Salmonid Stream Habitat Restoration Manual for planting dormant cuttings and container stock (CDFW 2010). Permanent impacts to riparian vegetation shall be mitigated at a 3:1 ratio to ensure no net loss of acreage and individual plants. 10. Replacement trees shall be planted in the fall or winter of the year in which trees were removed. All replacement trees will be planted no more than one year following the date upon which the native trees were removed. Replacement plants shall be monitored for 5 years with a goal of at least 70 percent survival at the end of the 5 -year period. Supplemental irrigation may be provided during years 1 to 3; however, supplemental watering shall not be provided during the final two years of monitoring. — Mitigation Measures BIO-2d. Project design shall be modified to preserve at a minimum the southern 275 feet of the North-South Creek Segment to protect all existing mature riparian PH 1 - 100 woodland, and the proposed drainage plan shall be altered to convey remaining surface water flows from areas to the north to this channel. — Mitigation Measure BIO-2e. To minimize impacts to riparian habitat, the Project shall stockpile sufficient emergent vegetation (e.g., cattails) for later planting in the realigned reach of Tank Farm Creek. Stockpiled vegetation shall be placed in earthen basins with the roots covered with moist soil and maintained in a moist condition during construction operations. — Mitigation Measure BIO-2g. A post-construction landscape and restoration report for each phase shall be prepared by the Environmental Monitor based on as-built drawings and site inspections to document the final grading, plantings, and habitat restoration activities. The report shall include as-built plans prepared after restoration, grading, and mitigation habitat plantings are complete. The as-built plans shall be prepared by landscape and grading contractors responsible for realignment and restoration within Tank Farm Creek. — Mitigation Measure BIO-2h. Project activities within Tank Farm Creek and drainage channels, including any tree pruning or removals, any necessary erosion repairs, or culvert removals, shall be performed when the channel is dry, planned to the satisfaction of the City Engineer and Natural Resource Manager per City Drainage Manual Standards, and be subject to monitoring by the Environmental Monitor. Upon removal of the existing steel culvert currently used for farm access across Tank Farm Creek, the channel shall be restored to match conditions immediately upstream and downstream including channel width, gradient, and vegetation. — Mitigation Measure BIO-2i. To reduce erosion and runoff from all exposed soils, all bare disturbed soils shall be hydroseeded at the completion of grading for each construction phase. The seed mix shall contain a minimum of three locally native grass species and may contain one or two sterile non-native grasses not to exceed 25 percent of the total seed mix by count. Seeding shall be completed no later than November 15 of the year in which Project activities occurred. All exposed areas where seeding is considered unsuccessful after 90 days shall receive a second application or seeding, straw, or mulch as soon as is practical to reduce erosion. — Mitigation Measure BIO-2j. The Tank Farm Creek Class I bicycle path bridge footings for creek crossings shall be placed outside mapped riparian areas and outside the top of the bank of the channel invert. The Class I bridges shall be located within areas that have little to no riparian vegetation. No construction activities or equipment shall occur in the stream channel. The placement of the bridge and footings shall be indicated on the Development Plan, VTM, and Biological Mitigation Plan, and shall show the bridges’ placement in relation to existing vegetation and the creek channel and banks. — Mitigation Measure BIO-3a. The City-approved qualified biologist shall conduct training to all construction personnel to familiarize construction crews with sensitive species that have the potential to occur within the Project site. This may include but is not limited to: California red - legged frog, western pond turtle, Steelhead trout, bats, migratory birds, and Congdon’s tarplant. The educational program shall include a description what constitutes take, penalties for take, and the guidelines that would be followed by all construction personnel to avoid take of species during construction activities. Descriptions of the California red-legged frog and its habits, Congdon’s tarplant, nesting and migratory birds that may be encountered, and all other sensitive species that have a potential to occur within the vicinity of Project construction shall be provided. The construction crew foreman shall be responsible for ensuring that crew members comply with PH 1 - 101 the guidelines and that all new personnel receive the training before partaking in construction activities. — Mitigation Measure BIO-3b. The Biological Mitigation Plan shall address wildlife and special status species movement as follows: • Migratory and Nesting Bird Management. Grading and construction activities shall avoid the breeding season (typically assumed to be from February 15 to August 15) to the extent practicable, particularly within 50 feet of Tank Farm Creek and riparian or wetland habitat. If Project activities must be conducted during this period, pre-construction nesting bird surveys shall take place within one week of habitat disturbance associated with each phase, and if active nests are located, the following shall be implemented: • Construction activities within 50 feet of active nests shall be restricted until chicks have fledged, unless the nest belongs to a raptor, in which case a 200-foot activity restriction buffer shall be observed. • A pre-construction survey report shall be submitted to the City immediately upon completion of the survey. The report shall detail appropriate fencing or flagging of the buffer zone and make recommendations on additional monitoring requirements. A map of the Project site and nest locations shall be included with the report. • The Project biologist conducting the nesting survey shall have the authority to reduce or increase the recommended buffer depending upon site conditions and the species involved. A report of findings and recommendations for bird protection shall be submitted to the City prior to vegetation removal. • Bat Colony Management. Prior to removal of any trees over 20 inches diameter-at- breast-height (DBH), a survey shall be conducted by a CDFW-approved qualified biologist to determine if any tree proposed for removal or trimming harbors sensitive bat species or maternal bat colonies. Maternal bat colonies shall not be disturbed. If a non- maternal roost is found, the qualified biologist shall install one-way valves or other appropriate passive relocation method. For each occupied roost removed, one bat box shall be installed in similar habitat and shall have similar cavities or crevices to those which are removed, including access, ventilation, dimensions, height above ground, and thermal conditions. If a bat colony is excluded from the Project site, appropriate alternate bat habitat shall be installed in the Project site. To the extent practicable, alternate bat house installation shall be installed near the onsite drainage. • Congdon’s Tarplant Management. Prior to initiation of construction, the Applicant shall fund a site survey for Congdon’s tarplant, and: • If Congdon’s tarplant is found in areas proposed for building, the affected individuals shall be replaced at a 1:1 ratio through seeding in a suitable conserved natural open space area. • A mitigation and monitoring plan for the species shall be developed consistent with applicable scientific literature pertinent to this species. The plan shall provide for the annual success over an area of at least 1,330 square feet with approximately 500-750 individuals (the current aerial extent) and be implemented to reduce impacts to Congdon’s tarplant to a less than significant level. • The mitigation plan shall be incorporated into the Biological Mitigation Plan, wherein wetland sites shall be created and Congdon’s tarplant seeds from the site shall be reintroduced. • Sensitive Species Management. Injury or mortality to the California red-legged frog, western pond turtle, and steelhead shall be avoided. The plan shall include the following measures: pre-Project surveys; worker awareness; cessation of work in occupied areas; PH 1 - 102 relocation (if necessary) of frogs, turtles, and steelhead from the work area by a professional biologist authorized by the USFWS and/or CDFW; and monitoring by a qualified biologist during construction. Necessary permits shall be obtained from the state (CDFW) and federal (USACE and USFWS) regulatory agencies with jurisdiction. Any other sensitive species observed during the pre-construction surveys shall be relocated out of harm’s way by the qualified biologist into the nearest suitable habitat as determined in consultation with the jurisdictional resource agency outside the disturbance area. — Mitigation Measure BIO-3c. Within 48 hours prior to construction activities within 50 feet of Tank Farm Creek, drainages, and seasonal wetlands, the Project site shall be surveyed for California red-legged frogs by a qualified biologist. If any California red-legged frogs are found, work within 25 linear feet in any direction of the frog shall not start until the frog has been moved from the area. The USFWS shall be consulted for appropriate action; the Applicant shall obtain a Biological Opinion from the USFWS and any additional authorization required by other regulatory agencies prior to the commencement of work. The USFWS-qualified biologist, Environmental Monitor, or USFWS personnel may determine that frog-exclusion fencing is necessary to prevent overland movement of frogs if concerns arise that frogs could enter construction areas. Frog-exclusion fencing should contain no gaps and must extend at least 18 inches above ground; fences may be opened during periods of no construction (e.g., weekends) to prevent entrapment. — Mitigation Measure BIO-3d. Within 48 hours prior to construction activities within 50 feet of Tank Farm Creek, drainages, seasonal wetlands, and riparian habitat, the Project site shall be surveyed for western pond turtles by a qualified biologist. If any western pond turtles are found, work shall cease until the turtle is relocated to the nearest suitable habitat. The qualified biologist shall monitor all ground breaking work conducted within 50 feet of western pond turtle habitat. The City-approved biologist Environmental Monitor may determine that silt fencing shall be installed adjacent to western pond turtle habitat if concerns arise that the western pond turtle overland movement could allow them to access construction areas. — Mitigation Measure BIO-4. The required Biological Mitigation Plan shall address bat colonies for the Buckley Road Extension site. Bat surveys shall be conducted in buildings proposed for demolition. If surveys determine bats are present, bat exclusion devices shall be installed between August and November, and building demolition would occur between November and March. If demolition of structures must occur during the bat breeding season, buildings must be inspected and deemed clear of bat colonies/roosts within seven days of demolition and an appropriately trained and approved biologist must conduct a daily site-clearance during demolition. If bats are roosting in a structure in the Project site during the daytime but are not part of an active maternity colony, then exclusion measures must include one-way valves that allow bats to get out but are designed so that the bats may not re-enter the structure. — Mitigation Measure BIO-5a. All exterior building lights facing Tank Farm Creek shall be hooded to prevent light spillover into the creek; all residential street lights over 10 feet in height shall be setback a minimum of 100 feet from the top of the creek bank and hooded and/or directed away from the creek. Any night lighting adjacent to the creek (e.g., walkway lights) shall be of low voltage and hooded downward. Artificial light levels within 20 feet of the top of the creek bank shall not exceed 1-foot candle or the lowest level of illumination found to be feasible by the City. PH 1 - 103 — Mitigation Measure BIO-5b. Tank Farm Creek restoration/enhancement plantings shall include native vegetation, such as oaks, cottonwoods, willows, and sycamores along the entire length of the Project’s creek frontage in order to minimize light spillover into the creek. — — Mitigation Measure BIO-6. All work in and within 100 feet of Tank Farm Creek, including work within the creek setback, shall occur outside the rainy season (April 15 to October 15, unless approved otherwise by RWQCB), during periods when the creek channel is dry and water flows are absent. — Mitigation Measure HYD-1a. Prior to the issuance of any construction/grading permit and/or the commencement of any clearing, grading, or excavation, the Applicant shall submit a Notice of Intent (NOI) for discharge from the Project site to the California SWRCB Storm Water Permit Unit. — Mitigation Measure HYD-1b. The Applicant shall require the building contractor to prepare and submit a Storm Water Pollution Prevention Plan (SWPPP) to the City 45 days prior to the start o f work for approval. The contractor is responsible for understanding the State General Permit and instituting the SWPPP during construction. A SWPPP for site construction shall be developed prior to the initiation of grading and implemented for all construction activity on the Project site in excess of one (1) acre, or where the area of disturbance is less than one acre but is part of the Project’s plan of development that in total disturbs one or more acres. The SWPPP shall identify potential pollutant sources that may affect the quality of discharges to storm water, and shall include specific BMPs to control the discharge of material from the site. The following BMP methods shall include, but would not be limited to: • Temporary detention basins, straw bales, sand bagging, mulching, erosion control blankets, silt fencing, and soil stabilizers shall be used. • Soil stockpiles and graded slopes shall be covered after 14 days of inactivity and 24 hours prior to and during inclement weather conditions. • Fiber rolls shall be placed along the top of exposed slopes and at the toes of graded areas to reduce surface soil movement, as necessary. • A routine monitoring plan shall be implemented to ensure success of all onsite erosion and sedimentation control measures. • Dust control measures shall be implemented to ensure success of all onsite activities to control fugitive dust. • Streets surrounding the Project site shall be cleaned daily or as necessary. • BMPs shall be strictly followed to prevent spills and discharges of poll utants onsite (material and container storage, proper trash disposal, construction entrances, etc.). • Sandbags, or other equivalent techniques, shall be utilized along graded areas to prevent siltation transport to the surrounding areas. • Additional BMPs shall be implemented for any fuel storage or fuel handling that could occur onsite during construction. The SWPPP must be prepared in accordance with the guidelines adopted by the SWRCB. The SWPPP shall be submitted to the City along with grading/development plans for review and approval. The Applicant shall file a Notice of Completion for construction of the development, identifying that pollution sources were controlled during the construction of the Project and implementing a closure SWPPP for the site. • Plan Requirements and Timing. The Applicant shall prepare a SWPPP that includes the above and any additional required BMPs. The SWPPP and notices shall be submitted for review and approval by the City prior to the issuance of grading permits for Phase 1 PH 1 - 104 construction. The SWPPP shall be designed to address erosion and sediment control during all phases of development of the site until all disturbed areas are permanently stabilized. — Mitigation Measure HYD-1c. Installation of the eight drainage outlets within Tank Farm Creek shall occur within the dry season (May through October). b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. Implementation of MM BIO-2a would avoid the potential impacts of manufactured slopes and the Class I bicycle path intruding into the bank of Tank Farm Creek or its riparian habitat by establishing setbacks for a wider wildlife corridor. This would also protect the creek and riparian habitat from potential impacts associated with temporary or permanent loss of habitat, construction impacts, siltation and erosion, and operational impacts associated with increased human activity. Implementation of MM BIO-2b and 2c would offset the loss of sensitive habitat and trees and compensates at appropriate replacement ratios onsite consistent with appropriate agencies, to the maximum extent feasible. Impacts to riparian vegetation would be reduced within implementation of MM BIO-2d and 2e. MM BIO-2g would ensure appropriate restoration of riparian habitat. MM BIO-2h would reduce potential erosion and siltation impacts within the creek. Implementation of MM BIO-2i in combination with MM BIO-1a and 1b and all subparts, would reduce temporary impacts to jurisdictional aquatic features from construction activities by requiring work to be completed when water flow in the creek is dry, and appropriate measures are taken to prevent sedimentation. MM BIO-2j would address potential impacts to Tank Farm Creek from the proposed Class I bicycle path footings placement. MM HYD -4a and b would address potential impacts of frac-outs. MM BIO-3a would provide educational training all construction personnel in order for them to identify sensitive species, take appropriate actions, and avoid “take”. MM BIO-3b through 3d would reduce potential impacts to special status birds and bats to less than significant by avoiding disturbance during the breed ing season and roosting times when these species are most vulnerable to disturbance and ensuring compliance with appropriate avoidance buffers if construction during the season cannot be avoided. Mitigation would limit construction in the creek during nesting season and peak activity periods, thus reducing impacts to migrating species. MM BIO -4, which requires pre-construction surveys and exclusion measures for sensitive bats and protection or replacement of the Congdon’s tarplant, would minimize cumulative impacts to bat colonies and sensitive plant species. Implementation of MM BIO-5a and 5b would reduce long-term impacts to the habitat value and wildlife corridor functions associated with increased disturbance from light and glare in the Project vicinity. MM BIO-6 and MM BIO-2h and 2j, address measures to avoid degradation of water quality in the creek from sedimentation and construction. Implementation of these mitigations, would mitigate the Project’s contribution towards cumulative impacts to biological resources. PH 1 - 105 D. CULTURAL RESOURCES 1. Impact CR-2. Development and grading would result in direct significant impacts to known prehistoric resources within the Project site. (Refer to pages 3.5-15 and 5-56 of the Final EIR.) a. Mitigation: The following mitigation measures would be required. — Mitigation Measure CR-2a. Data recovery through controlled grading of CA-SLO-2798/H shall occur prior to the start of construction to seek buried features and additional diagnostic artifacts. The Applicant shall retain a Registered Professional Archaeologist familiar with the types of historic and prehistoric resources that could be encountered within the Project site and a Native American monitor to supervise the controlled grading, which shall occur in 10 -centimeter lifts to culturally sterile sediments or maximum construction depth (whichever is reached first). • Any formed tools exposed during grading shall be collected. If archaeological features are exposed (including but not limited to hearths, storage pits, midden deposits, or structural remains), the archaeologist shall temporarily redirect grading to another area so the features can be exposed, recorded, and sampled according to standard archaeological procedures. Organic remains shall be dated using the radiocarbon method and the geochemical source and hydration rim thickness of any obsidian shall be determined. Technical analyses of plant remains, bone and shell dietary debris, and other important materials shall also be performed. • Artifacts, features, and other materials recovered through this process shall be described, illustrated, and analyzed fully in a technical report of findings; the analysis shall include comparative research with other sites of similar age. In addition to the technical report, the findings from this research shall be published in an appropriate scientific journal. The Applicant shall fund all technical reporting and subsequent publication. — Mitigation Measure CR-2b. Following completion of controlled grading of CA-SLO-2798/H, the Applicant shall retain a Registered Professional Archaeologist and a Native American consultant to monitor all further earth disturbances within Phase 5 to ensure that previously unidentified buried archaeological deposits are not inadvertently exposed and damaged. In the event archaeological remains are encountered during grading or other earth disturbance, work in the vicinity shall be stopped immediately and redirected to another location until the Project archaeologist evaluates the significance of the find pursuant to City Archaeological Resource Preservation Program Guidelines. If remains are found to be significant, they shall be subject to a Phase 3 mitigation program consistent with City Guidelines and funded by the Applicant. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. (See FEIR pages 3.5-19 and 5-56 to 5-57.) As avoidance of prehistoric resource site CA-SLO-2798/H would result in conflicts with LUCE goals and Project Objectives, controlled grading and artifact recovery would take place within the prehistoric site area allowing for documentation for the site and preservation of recovered artifacts. While prehistoric sites such as CA-SLO-2798/H are uncommon in the area, monitoring, adherence to the City-approved archaeological testing and mitigation program, and artifact recovery and documentation would reduce impacts to a less than significant level after mitigation. PH 1 - 106 3. Impact CR-3. Earthwork and ground disturbing construction activities for the MPA could potentially uncover significant unknown prehistoric or historic archaeological resources. If improperly handled, such resources could be adversely impacted. (Refer to pages 3.5-19 and 5-57 of the Final EIR.) — Mitigation Measure CR-3a. Prior to the issuance of building and grading permits for Phase 1, the Applicant shall retain a City-approved Registered Professional Archaeologist and a Native American monitor to be present during all ground disturbing activities within the Project site and Buckley Road Extension site. In the event of any inadvertent discovery of prehistoric or historic- period archaeological resources during construction, all work within 50 feet of the discovery shall immediately cease (or greater or lesser distance as needed to protect the discovery and determined in the field by the Project archaeologist). The Applicant shall immediately notify the City of San Luis Obispo Community Development Department. The Project archaeologist shall evaluate the significance of the discovery pursuant to City Archaeological Resource Preservation Program Guidelines prior to resuming any activities that could impact the site/discovery. If the Project archaeologist determines that the find may qualify for listing in the CRHR, the site shall be avoided or shall be subject to a Phase 3 mitigation program consistent with City Guidelines and funded by the Applicant. Work shall not resume until authorization is received from the City. — Mitigation Measure CR-3b. Prior to construction, workers shall receive education regarding the recognition of possible buried cultural remains and protection of all cultural resources, including prehistoric and historic resources, during construction. Such training shall provide construction personnel with direction regarding the procedures to be followed in the unlikely event that previously unidentified archaeological materials, including Native American burials, are discovered during construction. Training would also inform construction personnel that unauthorized collection or disturbance of artifacts or other cultural materials is not allowed. The training shall be prepared by the Project archaeologist and shall provide a description of the cultural resources that may be encountered in the Project site, outline steps to follo w in the event that a discovery is made, and provide contact information for the Project archaeologist, Native American monitor, and appropriate City personnel. The training shall be conducted concurrent with other environmental or safety awareness and education programs for the Project, provided that the program elements pertaining to archaeological resources is provided by a qualified instructor meeting applicable professional qualifications standards. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. (See FEIR pages 3.5-21 and 5-57.) Implementation of the above mitigation would ensure that appropriate precautions and protection measures are taken to avoid potentially significant impacts to unknown or undiscovered archaeological resources during construction activities on- and offsite. After mitigation, impacts would result less than significant residual impacts. 4. Cumulative Cultural Resources Impacts. The MPA would mitigate impacts to cultural resources with implementation of Mitigation Measures CR-2a and 2b, and CR-3a and b, and therefore would not contribute to cumulatively considerable impacts to cultural resources. Cumulative projects would be required to comply with General Plan Policies relating to historic and archaeological resources, and would be subject to review by the City Cultural Heritage Commission for conformanc e with guidelines for cultural resources protection. Further, cumulative projects would be subject to environmental review under CEQA, which requires avoidance of significant historical resources whenever feasible; if avoidance is not feasible, then appropriate mitigation measures would be PH 1 - 107 applied. As such, cumulative impacts are considered significant but mitigable . Cumulative effects under the MPA would be similar to those of the Project as described on page 3.5-22 of the Final EIR.) Mitigation: Mitigation Measures CR-2a and 2b, and CR-3a and 3b would be required to reduce the project’s contribution to cumulatively considerable impacts to cultural resources to a less than significant level. — Mitigation Measure CR-2a. Data recovery through controlled grading of CA-SLO-2798/H shall occur prior to the start of construction to seek buried features and additional diagnostic artifacts. The Applicant shall retain a Registered Professional Archaeologist familiar with the type s of historic and prehistoric resources that could be encountered within the Project site and a Native American monitor to supervise the controlled grading, which shall occur in 10 -centimeter lifts to culturally sterile sediments or maximum construction depth (whichever is reached first). • Any formed tools exposed during grading shall be collected. If archaeological features are exposed (including but not limited to hearths, storage pits, midden deposits, or structural remains), the archaeologist shall temporarily redirect grading to another area so the features can be exposed, recorded, and sampled according to standard archaeological procedures. Organic remains shall be dated using the radiocarbon method and the geochemical source and hydration rim thickness of any obsidian shall be determined. Technical analyses of plant remains, bone and shell dietary debris, and other important materials shall also be performed. • Artifacts, features, and other materials recovered through this process shall be described, illustrated, and analyzed fully in a technical report of findings; the analysis shall include comparative research with other sites of similar age. In addition to the technical report, the findings from this research shall be published in an appropriate scientific journal. The Applicant shall fund all technical reporting and subsequent publication. — Mitigation Measure CR-2b. Following completion of controlled grading of CA-SLO-2798/H, the Applicant shall retain a Registered Professional Archaeologist and a Native American consultant to monitor all further earth disturbances within Phase 5 to ensure that previously unidentified buried archaeological deposits are not inadvertently exposed and damaged. In the event archaeological remains are encountered during grading or other earth disturbance, work in the vicinity shall be stopped immediately and redirected to another location until the Project archaeologist evaluates the significance of the find pursuant to City Archaeological Resource Preservation Program Guidelines. If remains are found to be significant, they shall be subject to a Phase 3 mitigation program consistent with City Guidelines and funded by the Applicant. — Mitigation Measure CR-3a. Prior to the issuance of building and grading permits for Phase 1, the Applicant shall retain a City-approved Registered Professional Archaeologist and a Native American monitor to be present during all ground disturbing activities within the Project site and Buckley Road Extension site. In the event of any inadvertent discovery of prehistoric or historic- period archaeological resources during construction, all work within 50 feet of the discovery shall immediately cease (or greater or lesser distance as needed to protect the discovery and determined in the field by the Project archaeologist). The Applicant shall immediately notify the City of San Luis Obispo Community Development Department. The Project archaeologist shall evaluate the significance of the discovery pursuant to City Archaeological Resource Preservation Program Guidelines prior to resuming any activities that could impact the site/discovery. If the Project PH 1 - 108 archaeologist determines that the find may qualify for listing in the CRHR, the site shall be avoided or shall be subject to a Phase 3 mitigation program consistent with City Guidelines and funded by the Applicant. Work shall not resume until authorization is received from the City. — Mitigation Measure CR-3b. Prior to construction, workers shall receive education regarding the recognition of possible buried cultural remains and protection of all cultural resources, including prehistoric and historic resources, during construction. Such training shall provide construction personnel with direction regarding the procedures to be followed in the unlikely event that previously unidentified archaeological materials, including Native American burials, are discovered during construction. Training would also inform construction personnel that unauthorized collection or disturbance of artifacts or other cultural mate rials is not allowed. The training shall be prepared by the Project archaeologist and shall provide a description of the cultural resources that may be encountered in the Project site, outline steps to follow in the event that a discovery is made, and provide contact information for the Project archaeologist, Native American monitor, and appropriate City personnel. The training shall be conducted concurrent with other environmental or safety awareness and education programs for the Project, provided that the program elements pertaining to archaeological resources is provided by a qualified instructor meeting applicable professional qualifications standards. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. Implementation of the above mitigation would ensure that appropriate precautions and protection measures are taken to mitigate the MPA’s contribution to cumulative impacts to unknown or undiscovered archaeological resources. ( E. HAZARDS AND HAZARDOUS MATERIALS 1. Impact HAZ-1: During grading/construction activities and Project operations, the MPA would potentially expose persons to potentially toxic, hazardous, or otherwise harmful chemicals through reasonably foreseeable upset and accidental conditions involving the release of hazardous materials into the environment. (Refer to pages 3.6-22 and 5-57 of the Final EIR.) a. Mitigation: The following mitigation measure would be required. — Mitigation Measure HAZ-1. Prior to earthwork and demolition activities, a site-specific Health and Safety Plan shall be developed per California Occupational Safety and Health Administration (Cal/OSHA) requirements. The Health and Safety Plan shall include appropriate best management practices (BMPs) related to the treatment, handling, and disposal of NOA and ACMs. A NOA Construction and Grading Project Form shall be submitted to the APCD prior to grading activities. All construction employees that have the potential to come into contact with contaminated building materials and soil/bedrock shall be briefed on the safety plan, including required proper training and use of personal protective equipment. During earthwork and demolition activities, procedures shall be followed to eliminate or minimize construction worker or general public exposure to heavy hydrocarbons and other potential contaminants in soil and groundwater, and potential ACMs within potential demolished materials. Procedures shall include efforts to control fugitive dust, contain and cover excavation debris piles, appropriate laboratory analysis of soil for waste characterization, segregation of contaminated soil from uncontaminated soil, and demolished materials. The applicable regulations associated with excavation, removal, PH 1 - 109 transportation, and disposal of contaminated soil shall be followed (e.g., tarping of trucks and waste manifesting). b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. (See FEIR pages 3.6-25 and 5-57 to 5-58.) MM HAZ-1 would facilitate the safe removal of potentially hazardous building materials and the cleanup of contaminated soils, thus reducing the level of risk within the MPA site. F. HYDROLOGY AND WATER QUALITY 1. Impact HYD-1: The MPA would result in potentially significant impacts to water quality due to polluted runoff during construction activities. (Refer to pages 3.7-32 and 5-59 of the Final EIR.) a. Mitigation: The following mitigation measures would be required. — Mitigation Measure HYD-1a. Prior to the issuance of any construction/grading permit and/or the commencement of any clearing, grading, or excavation, the Applicant shall submit a Notice of Intent (NOI) for discharge from the Project site to the California SWRCB Storm Water Permit Unit. — Mitigation Measure HYD-1b. The Applicant shall require the building contractor to prepare and submit a Storm Water Pollution Prevention Plan (SWPPP) to the City 45 days prior to the start of work for approval. The contractor is responsible for understanding the State General Permit and instituting the SWPPP during construction. A SWPPP for site construction shall be developed prior to the initiation of grading and implemented for all construction activity on the Project site in excess of one (1) acre, or where the area of disturbance is less than one acre but is part of the Project’s plan of development that in total disturbs one or more acres. The SWPPP shall identify potential pollutant sources that may affect the quality of discharges to storm water, and shall include specific BMPs to control the discharge of material from the site. The following BMP methods shall include, but would not be limited to: • Temporary detention basins, straw bales, sand bagging, mulching, erosion control blankets, silt fencing, and soil stabilizers shall be used. • Soil stockpiles and graded slopes shall be covered after 14 days of inactivity and 24 hours prior to and during inclement weather conditions. • Fiber rolls shall be placed along the top of exposed slopes and at the toes of graded areas to reduce surface soil movement, as necessary. • A routine monitoring plan shall be implemented to ensure success of all onsite erosion and sedimentation control measures. • Dust control measures shall be implemented to ensure success of all onsite activities to control fugitive dust. • Streets surrounding the Project site shall be cleaned daily or as necessary. • BMPs shall be strictly followed to prevent spills and discharges of pollutants onsite (material and container storage, proper trash disposal, construction entrances, etc.). • Sandbags, or other equivalent techniques, shall be utilized along graded areas to prevent siltation transport to the surrounding areas. PH 1 - 110 • Additional BMPs shall be implemented for any fuel storage or fuel handling that could occur onsite during construction. The SWPPP must be prepared in accordance with the guidelines adopted by the SWRCB. The SWPPP shall be submitted to the City along with grading/development plans for review and approval. The Applicant shall file a Notice of Completion for construction of the development, identifying that pollution sources were controlled during the construction of the Project and implementing a closure SWPPP for the site. — Mitigation Measure HYD-1c. Installation of the eight drainage outlets within Tank Farm Creek shall occur within the dry season (May through October). b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. Implementation of the proposed mitigation measures would reduce the potentially significant construction runoff and erosion, reducing the impact to less than significant. (See FEIR pages 3.7-36 and 5-59.) 2. Impact HYD-2: MPA development would substantially alter existing drainage patterns on the Project site and Buckley Road Extension property, which could potentially result in substantial flooding, erosion, or siltation onsite and offsite. (Refer to pages 3.7-36 and 5-59 of the Final EIR.) a. Mitigation: The following mitigation measures shall be required. — Mitigation Measure HYD-2a. The Applicant shall prepare and submit a Master Drainage Plan. The Master Drainage Plan shall address cumulative regional drainage and flooding impacts on the Project site, including construction and stream stability, and set forth measures to coordinate Project drainage with Chevron Tank Farm remediation and drainage improvements. The Master Drainage Plan shall be implemented pursuant to the City’s SWMP submitted by the City to the RWQCB under the NPDES Phase II program and pursuant to the programs developed under the City of San Luis Obispo General Plan and the City of San Luis Obispo Waterways Management Plan. The Master Drainage Plan shall meet the following requirements: • Development of a Construction Drainage Plan that details the control and retention of runoff for each phase of construction, and clearly displays the location of bioretention facilities, their retention capacity and relationship to subsurface drainage culverts, alignment of creek and drainage channels for each phase. • Ensure that onsite detention facilities, particularly the pocket park/bioswale, are designed to safely retain flood flows using either gently sloping exterior slopes (e.g., 4:1) or provide safety fencing around perimeters, consistent with applicable City standards. • Characterization of drainage from the East-West Channel and conveyance of flows after removal of this channel. • Demonstrate peak flows and runoff for each phase of construction. • Be coordinated with habitat restoration efforts, including measures to minimize removal of riparian and wetland habitats, contouring of creek invert to create pools and removal of trash or debris as appropriate. • Location and extent of vegetated Swales designed to reduce sediment and particulate forms of metals and other pollutants along corridors of planted grasses or native vegetation. • Location and extent of vegetated Filter Strips, 15-foot wide vegetated buffer strips that also reduce sediment and particulate forms of metals and nutrients. PH 1 - 111 • The use, location and capacity of Hydrodynamic Separation Products to reduce suspended solids greater than 240 microns, trash and hydrocarbons. These hydrodynamic separators must be sized to handle peak flows from the Proj ect site consistent with applicable regulatory standards. — Mitigation Measure BIO-2a. Project designs shall be modified to realign the Tank Farm Class I bicycle path and relocate manufactured slopes for housing pads in order to create a minimum of a 35-foot creek setback from either the top of the bank of Tank Farm Creek or edge of riparian habitat, whichever is further, for at least 90 percent of corridor length. No more than 10 percent of the length of the corridor (700 linear feet) shall have a setback of less than 35 feet, but at least 20 feet from the top of the bank or edge of riparian canopy, whichever is further. However, in any instance the creek setback shall be no less than 20 feet from the edge of riparian canopy or top of bank, whichever is further, consistent with Section 17.16.025 of the City of San Luis Obispo Zoning Regulations. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. (See FEIR pages 3.7-44 through 3.7-45 and 5-59.) Preparation of the Master Drainage Plan and would ensure coordination of drainage improvements with the Chevron Tank Farm property to the north, and establish the schedule and timing of onsite improvements. MM BIO-2a, relocation of the Class I path outside of the 35-foot creek buffe, would reduce erosion and siltation. 3. Impact HYD-3: The MPA could potentially result in flooding, including increased flood water surface elevations across the Project site, adjacent properties, and within Tank Farm Creek. (Refer to pages 3.7-45 and 5-60 of the Final EIR.) a. Mitigation: The following measures would be required. — Mitigation Measure HYD-3a. The Applicant shall prepare a Master Drainage Plan which shall consider cumulative regional drainage and flooding impacts of the Project, and shall be submitted to the City Public Works Director for approval and shall meet the following requirements: • There shall be no significant net increase in upstream or downstream floodwater surface elevations for the 100-year floodplain as a result of changes in floodplain configuration and building construction. A significant threshold of a 2.5-inch increase in floodwater surface elevations or 0.3 feet per second increase in stream velocities shall be used. This shall be demonstrated to the satisfaction of the City Engineer or County Public Works Director based on an Applicant furnished hydraulic analysis. • There shall be no significant net decrease in floodplain storage volume as a result of a new development or redevelopment projects. This can be achieved by a zero-net fill grading plan, which balances all fill placed on the 100-year floodplain with cut taken from other portions of the floodplain within the Project site of the application, or with cut exported offsite. Specifically, all fill placed in a floodplain shall be balanced with an equal amount of soil material removal (cut) and shall not decrease floodplain storage capacity at any stage of a flood (2, 10, 50, or 100-year event). • A net increase in fill in any floodplain is allowed only when all the conditions listed in the Managed Fill Criteria of the Drainage Design Manual (DDM) are also met. PH 1 - 112 — Mitigation Measure HYD-3b. All bridges, culverts, outfalls, and modifications to the existing creek channels must be designed and constructed in compliance with the City’s Drainage Design Manual and approved by the City Engineer, USACE, CDFW, and Central Coast RWQCB, and must meet city standards and policies. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. Implementation of the proposed mitigation measures above would reduce the potentially significant flooding impact to less than significant by ensuring floodplain storage within the MPA site is not substantially decreased. (See FEIR p. 3.7-48 and 5-60.) 4. Impact HYD-4: Installation of at least two utility lines using horizontal directional drilling would bisect Tank Farm Creek and has the potential to impact water quality. (Refer to pages 3.7-48 and 5-60 of the Final EIR.) a. Mitigation: The following measures would be required. — Mitigation Measure HYD-4a. A site-specific, geotechnical investigation shall be completed in areas proposed for HDD. Preliminary geotechnical borings shall be drilled to verify that the proposed depth of HDD is appropriate to avoid frac-outs (i.e., the depth of finest grained sediments and least fractures) and to determine appropriate HDD methods (i.e., appropriate drilling mud mixtures for specific types of sediments). The investigation shall include results from at least three borings, a geologic cross section, a discussion of drilling conditions, and a history and recommendations to prevent frac-outs. — Mitigation Measure HYD-4b. A Frac-out Contingency Plan shall be completed and shall include measures for training, monitoring, worst case scenario evaluation, equipment and materials, agency notification and prevention, containment, clean up, and disposal of released drilling muds. Preventative measures would include incorporation of the recommendations of the geotechnical investigation to determine the most appropriate HDD depth and drilling mud mixture. In accordance with the RWQCB, HDD operations shall occur for non-perennial streams such as Tank Farm Creek only when the stream is dry, and only during daylight hours. In addition, drilling pressures shall be closely monitored so that they do not exceed those needed to penetrate the formation. Monitoring by a minimum of two City-approved monitors (located both upstream and downstream, who will move enough to monitor the entire area of operations) shall occur throughout drilling operations to ensure swift response in the event of a frac-out, while containment shall be accomplished through construction of temporary berms/dikes and use of silt fences, straw bales, absorbent pads, straw wattles, and plastic sheeting. Clean up shall be accomplished with plastic pails, shovels, portable pumps, and vacuum trucks. The Frac -out Contingency Plan shall be submitted to the City, and the RWQCB shall review the plan. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. Implementation of mitigation measures MM HYD-4a and b would ensure that water quality within Tank Farm Creek is not adversely impacted by HDD drilling activities. (See FEIR pages 3.7-50 and 5-60 to 5-61.) 5. Impact HYD-5: Operation of the Project would result in potentially significant impacts to water quality of Tank Farm and San Luis Obispo Creeks due to polluted urban runoff and sedimentation. (Refer to page 3.7-50 and 5-61 of the Final EIR.) PH 1 - 113 a. Mitigation: The following measures would be required. — Mitigation Measure HYD-2a. The Applicant shall prepare and submit a Master Drainage Plan. The Master Drainage Plan shall address cumulative regional drainage and flooding impacts on the Project site, including construction and stream stability, and set forth measures to coordinate Project drainage with Chevron Tank Farm remediation and drainage improvements. The Master Drainage Plan shall be implemented pursuant to the City’s SWMP submitted by the City to the RWQCB under the NPDES Phase II program and pursuant to the programs developed under the City of San Luis Obispo General Plan and the City of San Luis Obispo Waterways Management Plan. The Master Drainage Plan shall meet the following requirements: • Development of a Construction Drainage Plan that details the control and retention of runoff for each phase of construction, and clearly displays the location of bioretention facilities, their retention capacity and relationship to subsurface drainage culverts, alignment of creek and drainage channels for each phase. • Ensure that onsite detention facilities, particularly the pocket park/bioswale, are designed to safely retain flood flows using either gently sloping exterior slopes (e.g., 4:1) or provide safety fencing around perimeters, consistent with applicable City standards. • Characterization of drainage from the East-West Channel and conveyance of flows after removal of this channel. • Demonstrate peak flows and runoff for each phase of construction. • Be coordinated with habitat restoration efforts, including measures to minimize removal of riparian and wetland habitats, contouring of creek invert to create pools and removal of trash or debris as appropriate. • Location and extent of vegetated Swales designed to reduce sediment and particulate forms of metals and other pollutants along corridors of planted grasses or native vegetation. • Location and extent of vegetated Filter Strips, 15-foot wide vegetated buffer strips that also reduce sediment and particulate forms of metals and nutrients. • The use, location and capacity of Hydrodynamic Separation Products to reduce suspended solids greater than 240 microns, trash and hydrocarbons. These hydrodynamic separators must be sized to handle peak flows from the Project site consistent with applicable regulatory standards. — Mitigation Measure HYD-5. A Development Maintenance Manual for the Project shall include detailed procedures for maintenance and operations of any storm water facilities to ensure long- term operation and maintenance of post-construction storm water controls. The maintenance manual shall require that storm water BMP devices be inspected, cleaned and maintained in accordance with the manufacturer’s maintenance specifications. The manual shall require that devices be cleaned prior to the onset of the rainy season (i.e., October 15th) and immediately after the end of the rainy season (i.e., May 15th). The manual shall also require that all devices be checked after major storm events. The Development Maintenance Manual shall include the following: • All loading docks and trash storage areas shall be setback a minimum of 150 feet from the top of the creek bank. No outdoor storage or larger trash receptacles shall be permitted within this setback area. All trash and outdoor storage areas shall be operated to reduce potential impacts to riparian areas; • Runoff shall be directed away from trash and loading dock areas; PH 1 - 114 • Trash and loading dock areas shall be screened or walled to minimize offsite transport of trash; • Bins shall be lined or otherwise constructed to reduce leaking of liquid wastes; • Trash and loading dock areas shall be paved; • Impermeable berms, drop inlets, trench catch basin, or overflow containment structures around docks and trash areas shall be installed to minimize the potential for leaks, spills or wash down water to enter the drainage system and Tank Farm Creek; and, • The developer or acceptable maintenance organization shall complete inspections of the site to ensure compliance with BMPs and water quality requirements on a semi -annual basis (May 15 and October 15 of each year). A detailed summary report prepared by a licensed Civil Engineer shall be submitted to the City of San Luis Obispo Public Works Department. The requirements for inspection and report submittal shall be recorded against the property. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. Implementation of the proposed mitigation measures listed above would reduce runoff entering Tank Farm Creek and reduce the impacts to less than significant. (See FIER page 3.7-52 and 5-61.) G. LAND USE AND PLANNING 1. Impact LU-3: The proposed Project would be potentially inconsistent with adopted City policies in the General Plan designed to protect biological resources and agricultural resources and ensure provision of adequate utilities and public services. (Refer to pages 3.8-57 and 5-63of the Final EIR.) a. Mitigation: The following mitigation measures would be required to ensure Project consistency with applicable City General Plan policies. — Mitigation Measure AG-1. The Applicant shall establish an offsite agricultural conservation easement or pay in-lieu fees to a City designated fund dedicated to acquiring and preserving agricultural land. While the City’s priority is that such agricultural land be acquired in the closest feasible proximity to the City, mitigation may be implemented using one of the following options: i. The Applicant shall ensure permanent protection of farmland of equal area and quality, which does not already have permanent protection, within the City of San Luis Obispo, consistent with City Policy 8.6.3(C) and AASP Policy 3.2.18. The Applicant shall identify and purchase or place in a conservation easement a parcel of land of at least 71 acres of equal quality farmland, or provide in-lieu fees to allow the City to complete such an acquisition. j. If no suitable parcel exists within the City limits, the Applicant shall identify and purchase or place in a conservation easement a parcel of farmland, of equal quantity and quality, within the City’s Sphere of Influence that is threatened by development of nonagricultural uses. The parcel shall be placed in an a gricultural conservation easement (refer to Figure 2 in the Land Use Element for City Sphere of Influence). The Applicant may also provide in-lieu fees to allow the City to complete such an acquisition. k. In the event that no suitable land is available within the City limits or City’s Sphere of Influence, the Applicant shall identify and purchase or place in a conservation easement a PH 1 - 115 parcel of farmland, of equal quantity and quality, within the City’s urban reserve or greenbelt that is threatened by development of nonagricultural uses. This parcel shall be placed in an agricultural conservation easement (refer to Figure 1 in the Land Use Element for City Planning Area). The Applicant may also provide in-lieu fees to allow the City to complete such an acquisition. l. In the event that no suitable land for an agricultural conservation easement is available for purchase within the City limits, the City’s Sphere of Influence, or urban reserve or greenbelt Planning Area, the Applicant shall identify and purchase or place in a conservation easement a parcel of farmland, of equal quantity and quality, within County lands (e.g., agricultural lands north and south of Buckley Road) that is considered to be threatened by the conversion to nonagricultural use. This parcel shall be placed in an agricultural conservation easement. The Applicant may also provide in-lieu fees to allow the City to complete such an acquisition. The Applicant shall demonstrate that such land is as close in proximity to the City as feasible. — Mitigation Measure BIO-2a. Project designs shall be modified to realign the Tank Farm Class I bicycle path and relocate manufactured slopes for housing pads in order to create a minimum of a 35-foot creek setback from either the top of the bank of Tank Farm Creek or edge of riparian habitat, whichever is further, for at least 90 percent of corridor length. No more than 10 percent of the length of the corridor (700 linear feet) shall have a setback of less than 35 feet, but at least 20 feet from the top of the bank or edge of riparian canopy, whichever is further. However, in any instance the creek setback shall be no less than 20 feet from the edge of riparian canopy or top of bank, whichever is further, consistent with Section 17.16.025 of the City of San Luis Obi spo Zoning Regulations. — Mitigation Measure BIO-2b. The Biological Mitigation Plan shall provide details on timing and implementation of required habitat restoration and shall be prepared in consultation with the City’s Natural Resource Manager and CDFW. A copy of the final plan shall be submitted to the City for review and approval. The plan shall be implemented by the Project Applicant, under supervision by the City and Environmental Monitor, and: 14. Characterize the type, species composition, spatial extent, and ecological functions and values of the wetland and riparian habitat that will be removed, lost, or damaged. 15. Describe the approach that will be used to replace the wetland and riparian habitat removed, lost, or adversely impacted by the Project, including a list of the soil, plants, and other materials that will be necessary for successful habitat replacement, and a description of planting methods, location, spacing, erosion protection, and irrigation measures that will be needed. Restoration and habitat enhancement shall include use of appropriate native species and correction of bank stabilization issues. Wetland restoration or enhancement areas shall be designed to facilitate establishment of wetland plants such as willows, cottonwoods, rushes, and creeping wild rye. 16. Describe the habitat restoration ratio to be used in calculating the acreage of habitat to be planted, consistent with MM BIO-2c through BIO-2e below and the findings in the Biological Report (Appendix I). 17. Describe the program that will be used for monitoring the effectiveness and success of the habitat replacement approach. 18. Describe how the habitat replacement approach will be supplemented or modified if the monitoring program indicates that the current approach is not effective or successful. 19. Describe the criteria that will be used to evaluate the effectiveness and success of the habitat replacement approach. PH 1 - 116 20. Indicate the timing and schedule for the planting of replacement habitat. 21. Habitat restoration or enhancement areas shall be established within the Project boundaries, adjacent to and contiguous with existing wetlands to the maximum extent possible. Habitats suitable for Congdon’s tarplant and other native wetland species shall be created onsite. If Congdon’s tarplant is found in areas proposed for disturbance, the affected individuals shall be replaced at a 1:1 ratio through seeding in a suitable conserved natural open space area. A management plan for the species shall be developed consistent with applicable scientific literature pertinent to this species. 22. Habitat restoration or enhancement sites shall be placed within deed-restricted area(s), and shall be maintained and monitored for a minimum of five years. If sufficient onsite mitigation area is not practicable, an offsite mitigation plan shall be prepared as part of the Biological Mitigation Plan and approved by permitting agencies. 23. The Biological Mitigation Plan shall identify appropriate restoration and enhancement activities to compensate for impacts to seasonal creek, wetland, and riparian habitat, including a detailed planting plan and maintenance plans using locally obtained native species and include habitat enhancement to support native wildlife and plant species. 24. A weed management plan and weed identification list shall be included in the Biological Mitigation Plan. 25. Habitat restoration or enhancement areas shall be maintained weekly for the first three years after Phase completion and quarterly thereafter. Maintenance shall include eradication of noxious weeds found on California Department of Food and Agriculture Lists (CDFA) A and B. Noxious weeds on CDFA list C may be eradicated or otherwise managed. 26. Mitigation implementation and success shall be monitored quarterly for the first two years after completion of each Phase, semi-annually during the third year, and annually the fourth and fifth years. Annual reports documenting site inspections and site recovery status shall be prepared and sent to the County and appropriate agencies. — Mitigation Measure BIO-2c. Within the required Biological Mitigation Plan, all temporary and permanent impacts to riparian trees, wetlands, and riparian habitat shall be mitigated, as follows: 11. Temporary impacts to wetland and riparian habitat shall be mitigated at a minimum 1:1 mitigation ratio for restoration (area of restored habitat to impacted habitat). 12. Permanent impacts to state jurisdictional areas, including isolated wetlands within agricultural lands and riparian habitat will be mitigated at a 1.5:1 ratio (area of restored and enhanced habitat to impacted habitat). 13. Permanent impacts to federal wetlands shall be mitigated at a minimum 3:1 ratio (1:1 area of created to impacted habitat plus 2:1 area of created/enhanced habitat to impacted habitat). 14. Riparian trees four inches or greater measured at diameter-at-breast-height (DBH) shall be replaced in-kind at a minimum ratio of 3:1 (replaced: removed). Trees measured at 24 inches or greater DBH shall be replaced in-kind at a minimum ratio of 10:1. Willows and cottonwoods may be planted from live stakes following guidelines provided in the California Salmonid Stream Habitat Restoration Manual for planting dormant cuttings and container stock (CDFW 2010). Permanent impacts to riparian vegetation shall be mitigated at a 3:1 ratio to ensure no net loss of acreage and individual plants. 15. Replacement trees shall be planted in the fall or winter of the year in which trees were removed. All replacement trees will be planted no more than one year following the date upon which the native trees were removed. Replacement plants shall be monitored for 5 years with a goal of at least 70 percent survival at the end of the 5 -year period. PH 1 - 117 Supplemental irrigation may be provided during years 1 to 3; however, supplemental watering shall not be provided during the final two years of monitoring. — Mitigation Measures BIO-2d. Project design shall be modified to preserve at a minimum the southern 275 feet of the North-South Creek Segment to protect all existing mature riparian woodland, and the proposed drainage plan shall be altered to convey remaining surface water flows from areas to the north to this channel. — Mitigation Measure BIO-2e. To minimize impacts to riparian habitat, the Project shall stockpile sufficient emergent vegetation (e.g., cattails) for later planting in the realigned reach of Tank Farm Creek. Stockpiled vegetation shall be placed in earthen basins with the roots covered with moist soil and maintained in a moist condition during construction operations. — Mitigation Measure BIO-2g. A post-construction landscape and restoration report for each phase shall be prepared by the Environmental Monitor based on as-built drawings and site inspections to document the final grading, plantings, and habitat restoration activities. The report shall include as-built plans prepared after restoration, grading, and mitigation habitat plantings are complete. The as-built plans shall be prepared by landscape and grading contractors responsible for realignment and restoration within Tank Farm Creek. — Mitigation Measure BIO-2h. Project activities within Tank Farm Creek and drainage channels, including any tree pruning or removals, any necessary erosion repairs, or culvert removals, shall be performed when the channel is dry, planned to the satisfaction of the City Engineer and Natural Resource Manager per City Drainage Manual Standards, and be subject to monitoring by the Environmental Monitor. Upon removal of the existing steel culvert currently used for farm access across Tank Farm Creek, the channel shall be restored to match conditions immediately upstream and downstream including channel width, gradient, and vegetation. — Mitigation Measure BIO-2i. To reduce erosion and runoff from all exposed soils, all bare disturbed soils shall be hydroseeded at the completion of grading for each construction phase. The seed mix shall contain a minimum of three locally native grass species and may contain one or two sterile non-native grasses not to exceed 25 percent of the total seed mix by count. Seeding shall be completed no later than November 15 of the year in which Project activities occurred. All exposed areas where seeding is considered unsuccessful after 90 days shall receive a second application or seeding, straw, or mulch as soon as is practical to reduce erosion. — Mitigation Measure BIO-2j. The Tank Farm Creek Class I bicycle path bridge footings for creek crossings shall be placed outside mapped riparian areas and outside the top of the bank of the channel invert. The Class I bridges shall be located within areas that have little to no riparian vegetation. No construction activities or equipment shall occur in the stream channel. The placement of the bridge and footings shall be indicated on the Development Plan, VTM, and Biological Mitigation Plan, and shall show the bridges’ placement in relation to existing vegetation and the creek channel and banks. — Mitigation Measure PS-2. Fair Share Contribution. The Applicant shall agree to pay a fair share contribution to a future citywide or area-wide fire protection service protection development impact fee program. Additionally, the AASP should be amended to include a fee program to fund the City’s fifth fire station and/or integrate such fair share fee programs into the proposed Community Facilities District (CFD). PH 1 - 118 — Mitigation Measure TRANS-4. The Applicant shall prepare an improvement plan for Horizon Lane, Earthwood Lane, and Suburban Road, including roadway, bicycle, and pedestrian improvements. Improvements shall be constructed by the Applicant in coordination with the phasing plan required by MM TRANS-2a, to ensure the Applicant constructs all offsite roadway improvements in a timely manner consistent with Project phasing. The Project Applicant shall: • Prepare a detailed improvement plan for Horizon Lane to bring this road into conformance with City standards for a commercial collector of width between 44 to 60 feet from Suburban Road to the Project boundary. This plan shall be developed in coordination with adjacent property owners and the City Public Works Department. Horizon Lane shall not be connected to the Project site until such a plan has been completed and improvements are completed in accordance with the phasing plan, as part of Phase 4. The section of Horizon Lane/Jespersen Road from the Project boundary to Buckley Road shall be designated as a residential collector with a width of roadway between 40 and 60 feet. Per MM TRANS-2e, construction of the Horizon Road from Suburban Road to Phase 4 of the Project shall be completed and open to travel prior to the issuance of any occupancy permit for the 100th residential unit of Phase 4 development. • Design and improve the intersection of Horizon Lane/Suburban Road to be consistent with City Engineering Standards and Specifications – Uniform Design Criteria and Municipal Code Standards. • Coordinate with the property owners along Earthwood Lane and City staff to complete the Earthwood Lane Extension to the Project site as part Phase 1. Earthwood Lane shall be developed to full City standards for a residential collector. Residential collectors shall be 44 to 60 feet wide as required by the City’s Uniform Design Criteria. • Coordinate with the property owners along Suburban Road and City staff to prepare a detailed improvement plan for Suburban Road to bring this road into confor mance with City standards. This plan shall address widening of substandard sections near the east end of this roadway, completion of missing sidewalk segments, installation of street trees, pedestrian crossings (e.g., Suburban Road at Earthwood Lane). In accordance to the City’s Engineering Standards and Specifications – Uniform Design Criteria, a commercial collector road shall be 44 to 68 feet wide to effectively serve commercial and industrial uses. Improvements from Earthwood Lane to Higuera Street shal l be done as part of Phase 1. Improvements from Earthwood Lane to Horizon Lane shall be done as part of Phase 4 development, prior to the connection of Horizon Lane with the Project site. • Prepare a detailed phasing plan that identifies reasonable timing of such improvements for Suburban Road, Horizon Lane, and Earthwood Lane. The phasing plan shall be developed in close coordination with City staff. Per MM TRANS 2e, construction of the Suburban Road improvements from Horizon Road from Earthwood shall be completed and open to travel prior to issuance of an occupancy permit for the 100th residential unit of Phase 4 development. The Suburban Road improvement from Earthwood to Higuera and the Earthwood improvements on the Project site and between the Project and Suburban shall be completed prior to issuance of the occupancy permit for the 1st dwelling unit. — Mitigation Measure TRANS-10a. The Applicant shall design and construct ADA-compliant sidewalks and ADA ramps on the east side of South Higuera Street to provide continuous paths of travel from the City limit line to Los Osos Valley Road. PH 1 - 119 — Mitigation Measure TRANS-10b. The Applicant shall design and construct continuous sidewalks along the east side of South Higuera Street from Vachell Lane to Los Osos Valley Road including ADA ramps at the Vachell Lane and South Higuera Street intersection, as illustrated in Figure 3.12-6. — Mitigation Measure TRANS-10c. The Applicant shall design and construct continuous ADA- compliant sidewalks and ADA ramps along the south side of Suburban Road from South Higuera Street to Earthwood Lane. A receiving ramp shall be installed on the north side of Suburban Road at Earthwood Lane. — Mitigation Measure TRANS-11. The Applicant shall construct two (2) separated bicycle bridges on each side of Buckley Road at Tank Farm Creek and provide connections to Buckley Road so as to provide continuous and safe bicycle routing along Buckley Road. These sections of roadway and creek crossings are under the jurisdiction of the County and would need to meet both City and County design standards to the greatest extent feasible and are subject to approval of the City’s Public Works Director. — Mitigation Measure TRANS-12. The Applicant shall coordinate with SLO Transit to ensure that adequate service would be provided to the two proposed bus stops and Project area. The bus stops shall be constructed by the Applicant within the respective phase’s development area. To assure adequate service is provided to the two new bus stops onsite, the Applicant shall pay for and install any physical improvements to Earthwood Lane and Suburban Road needed to accommodate future service to the site. In addition, the proposed transit service onsite shall meet standards stated in Policy 3.1.6, Service Standards. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. Implementation of mitigation measure MM AG-1 would protect agricultural lands consistent with LU Policies 1.8.1 and 1.9.2. Implementation of Mitigation Measures BIO-2a through 2e, and BIO-2g through 2j, would achieve consistency with policies that protect wildlife corridors and Tank Farm Creek. Implementation of Mitigation Measure PS -2 would offset the MPA’s contribution to increased demand on fire protection services. Implementation of mitigation measures within Section 3.12, Transportation and Traffic would result in Project consistency with General Plan Circulation policies and standards, and would result in less than significant impacts. (See FEIR pages 3.8 -61 through 3.8-60 and FEIR page 5- 63.) H. NOISE 1. Impact NO-3: Long-term operational noise impacts would include higher roadway noise levels from increased vehicle traffic generated by the MPA, MPA operational noise, and exposure of future residents to high noise levels that could result in the exceedance of thresholds in the City’s General Plan Noise Element and Noise Guidebook. (Refer to pages 3.9-28 and 5-66 of the Final EIR.) a. Mitigation: The following mitigation measures would be required. — Mitigation Measure NO-3a. R-1 and R-2 residential units planned in the area of the Project site within 300 feet of Buckley Road and R-4 units in the northwest corner of the Project site shall include noise mitigation for any potential indoor space and outdoor activity areas that are PH 1 - 120 confirmed to be above 60 dBA as indicated in the Project’s Sound Level Assessment. The following shall be implemented for residential units with noise levels exceeding 60 dBA: • Outdoor Activity Area Noise Mitigation. Where exterior sound levels exceed CNEL = 60 dBA, noise reduction measures shall be implemented, including but not limited to: • Exterior living spaces of residential units such as yards and patios shall be oriented away from Project boundaries that are adjacent to noise-producing uses that exceed exterior noise levels of CNEL = 60 dBA, such as roadways and industrial/commercial activities. • Construction of additional sound barriers/berms with noise-reducing features for affected residences. • Exterior Glazing. Exterior window glazing for residential units exposed to potential noise above Ldn=60 dBA shall achieve a minimum Outdoor-Indoor Transmission Class (OITC) 24 / Sound Transmission Class (STC) 30. Glazing systems with dissimilar thickness panes shall be used. • Exterior Doors Facing Noise Source. According to Section 1207.7 of the California Building Code, residential unit entry doors from interior spaces shall have a combined STC 28 rating for any door and frame assemblies. Any balcony and ground floor entry doors located at bedrooms shall have an STC 30 rating. Balconies shall be oriented away from the northwest property line. • Exterior Walls. Construction of exterior walls shall consist of a stucco or engineered building skin system over sheathing, with 4-inch to 6-inch deep metal or wood studs, fiberglass batt insulation in the stud cavity, and one or two layers of 5/8-inch gypsum board on the interior face of the wall. If possible, electrical outlets shall not be installed in exterior walls exposed to noise. If not possible, outlet box pads shall be applied to all electrical boxes and sealed with non-hardening acoustical sealant. • Supplemental Ventilation. According to the California Building Code, supplemental ventilation adhering to OITC/STC recommendations shall be provided for residential units with habitable spaces facing noise levels exceeding Ldn=60 dBA, so that the opening of windows is not necessary to meet ventilation requirements. Supplemental ventilation can also be provided by passive or by fan-powered, ducted air inlets that extend from the building’s rooftop into the units. If installed, ducted air inlets shall be acoustically lined through the top-most 6 feet in length and incorporate one or more 90- degree bends between openings, so as not to compromise the noise insulating performance of the residential unit’s exterior envelope. • Sound Walls. Sound walls shall be built on the north and east property lines of the Project in Phase 3 that adjoin Suburban Road. The barrier shall consist of mortared masonry. Further, proposed carports with solar canopies shall be installed around the western and northern perimeter of the R-4 units, and these units shall be setback a minimum of 100 feet from the property line. • Landscaping. Landscaping along the north and east Project site boundaries that adjoin Suburban Road shall include a line of closely space trees and shrubs with sufficient vegetative density to help reduce sound transmission. — Mitigation Measure NO-3b. Buckley Road widening improvements shall include the use of rubberized asphalts or alternative paving technology to reduce noise levels for sensitive receptors near the roadway. PH 1 - 121 b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. (See FEIR pages 3.9-33 and 5-66.) The mitigation above would ensure that lower indoor space noise levels would not exceed the threshold of 45 dBA. I. PUBLIC SERVICES 1. Impact PS-1: Implementation of the MPA would potentially increase demand on the SLOPD for police protection services. (Refer to pages 3.11-14 and 5-67 of the Final EIR.) a. Mitigation: The following mitigation measures would be required. — Mitigation Measure PS-1. The Applicant shall prepare and implement a brief Security Plan for the Project site. The Security Plan shall be prepared in consultation with the SLOPD and address public safety concerns in common or public spaces, parks, bike paths and open space areas, the commercial center, and parking lots. The Security Plan shall set forth lighting requirements, security recommendations for parks, open space and trails (e.g., visibility, lighting, etc.), and establish rules for use of the public areas. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. (See FEIR pages 3.11-16 and 5-68.) Implementation of the above mitigation measure, in combination with the ability to consider increases in future police staffing, would reduce demand on SLOPD police protection services. 2. Impact PS-2: MPA implementation would increase the demand for SLOFD fire protection services, create potential declines in firefighter to resident ratios, be located outside of accepted res ponse time performance area and necessitate construction of an additional fire protection facility, with potential for secondary environmental impacts. (Refer to pages 3.11-16 and 5-68 of the Final EIR.) a. Mitigation: The following mitigation measures would be required. — Mitigation Measure PS-2. Fair Share Contribution. The Applicant shall agree to pay a fair share contribution to a future citywide or area-wide fire protection service protection development impact fee program. Additionally, the AASP should be amended to include a fee program to fund the City’s fifth fire station and/or integrate such fair share fee programs into the proposed Community Facilities District (CFD). b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. (See FEIR pages 3.11-19 and 5-67.) J. TRANSPORTATION AND TRAFFIC 1. Impact TRANS-1: Project construction activities would potentially create traffic impacts due to congestion from construction vehicles (e.g., construction trucks, construction worker vehicles, PH 1 - 122 equipment, etc.) as well as temporary traffic lane and sidewalk closures. (Refer to pages 3.12-38 and 5-71 of the Final EIR.) a. Mitigation: The following mitigation measure would be required. — Mitigation Measure TRANS-1. The Applicant shall prepare a Construction Transportation Management Plan for all phases of the proposed Project for review and approval by the City prior to issuance of grading or building permits to address and manage traffic during construction. The Plan shall be designed to: • Prevent traffic impacts on the surrounding roadway network; • Restrict construction staging to within the Project site; • Minimize parking impacts both to public parking and access to private parking to the greatest extent practicable; • Ensure safety for both those construction vehicles and works and the surrounding community; and • Prevent substantial truck traffic through residential neighborhoods. • The Construction Transportation Management Plan shall be subject to review and approval by the Public Works Director to ensure that the Plan has been designed in accordance with this mitigation measure. This review shall occur prior to issuance of grading or building permits. It shall, at a minimum, include the following: Ongoing Requirements throughout the Duration of Construction: • A detailed Construction Transportation Management Plan for work zones shall be maintained. At a minimum, this shall include parking and travel lane configurations; warning, regulatory, guide, and directional signage; and area sidewalks, bicycle lanes, and parking lanes. The Plan shall include specific information regarding the Project’s construction activities that may disrupt normal pedestrian and traffic flow and the measures to address these disruptions. Such Plan shall be reviewed and approved by the Community Development Department and implemented in accordance with this approval. • Work within the public right-of-way shall be reviewed and approved by the City on a case by case basis based on the magnitude and type of construction activity. Generally work shall be performed between 8:30 AM and 4:00 PM. This work includes dirt hauling and construction material delivery. Work within the public right-of-way outside of these hours shall only be allowed after the issuance of an after-hours construction permit administered by the Building and Safety Division. Additionally restrictions may be put in place by Public Works Department depending on particular construction activities and conditions. • Streets and equipment shall be cleaned in accordance with established Public Works requirements. • Trucks shall only travel on a City-approved construction route. Limited queuing may occur on the construction site itself. • Materials and equipment shall be minimally visible to the public; the preferred location for materials is to be onsite, with a minimum amount of materials within a work area in the public right-of-way, subject to a current Use of Public Property Permit. PH 1 - 123 • Provision of off-street parking for construction workers, which may include the use of a remote location with shuttle transport to the site, if determined necessary by the City. Project Coordination Elements That Shall Be Implemented Prior to Commencement of Construction: • The traveling public shall be advised of impending construction activities that may substantially affect key roadways or other facilities (e.g., information signs, portable message signs, media listing/notification, and implementation of an approved Construction Impact Mitigation Plan). • A Use of Public Property Permit, Excavation Permit, Sewer Permit, or Oversize Load Permit, as well as any Caltrans permits required for any construction work requiring encroachment into public rights-of-way, detours, or any other work within the public right-of-way shall be obtained. • Timely notification of construction schedules shall be provided to all affected agencies (e.g., Police Department, Fire Department, Public Works Department, and Community Development Department) and to all owners and residential and commercial tenants of property within a radius of ¼ mile. • Construction work shall be coordinated with affected agencies in advance of start of work. Approvals may take up to two weeks per each submittal. • Public Works Department approval of any haul routes for construction materials and equipment deliveries shall be obtained b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. Preparation of a Construction Transportation Management Plan as part of MM TRANS-1 would reduce construction- related traffic impacts to the maximum extent feasible by establishing truck routes and parking locations for construction workers. (See FEIR page 3.12-41 and 5-71.) 2. Impact TRANS-2: Phased MPA development combined with limited site access and related increases in congestion on surrounding roadways would have the potential to cause transportation deficiencies throughout the Project vicinity. (Refer to pages 3.12-41 and 5-71 of the Final EIR.) a. Mitigation: The following mitigation measures would be required. — Mitigation Measure TRANS-2a. The Applicant shall create and submit a Transportation Improvement Phasing Plan to the City for review and approval, and shall ensure that construction of the Project follows the sequential phasing order utilized in the TIS for such improvements. The Plan shall address the timing and general design of all on and offsite transportation improvements. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. Implementation of MM TRANS-2a would require the Applicant to follow the sequencing of the approved phasing construction plan, which would ensure that any potential impacts during Phase 1, 2, and 4 are mitigated. PH 1 - 124 3. Impact TRANS-3: MPA-generated traffic would potentially create turning movement conflicts at driveways and intersections on the Project site. (Refer to pages 3.12-49 and 5-71 of the Final EIR.) a. Mitigation: The following mitigation measures would be required. — Mitigation Measure TRANS-3a. Project roadway and driveway design shall be reviewed and approved by the City to ensure compliance with City engineering standards and not conflict with intersection functional areas (e.g., aligning driveways on opposite sides of the roadway, position driveways as far upstream from intersections as possible). — Mitigation Measure TRANS-3b. The Applicant shall install traffic calming measures (e.g., speed bumps, pedestrian bulb-outs, etc.) to control speed levels along internal roadways of the Project site, including the extensions of Venture Drive, Horizon Lane, and Jespersen Road as required by Policy 8.1.3. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. Implementation of MM TRANS-3a and -3b, would ensure that the design and operation of these roads are consistent with safety regulations on residential roads and this impact would be less than significant. 4. Impact TRANS-4: MPA-generated traffic would exceed Circulation Element maximum volume thresholds at Vachell Lane, Earthwood Lane, Horizon Lane, and Suburban Road. (Refer to pages 3.12-51 and 5-72 of the Final EIR.) a. Mitigation: The following mitigation measures would be required. — Mitigation Measure TRANS-2a. The Applicant shall create and submit a Transportation Improvement Phasing Plan to the City for review and approval, and shall ensure that construction of the Project follows the sequential phasing order utilized in the TIS for such improvements. The Plan shall address the timing and general design of all on and offsite transportation improvements. — Mitigation Measure TRANS-3b. The Applicant shall install traffic calming measures (e.g., speed bumps, pedestrian bulb-outs, etc.) to control speed levels along internal roadways of the Project site, including the extensions of Venture Drive, Horizon Lane, and Jespersen Road as required by Policy 8.1.3. — Mitigation Measure TRANS-4. The Applicant shall prepare an improvement plan for Horizon Lane, Earthwood Lane, and Suburban Road, including roadway, bicycle, and pedestrian improvements. Improvements shall be constructed by the Applicant in coordination with the phasing plan required by MM TRANS-2a, to ensure the Applicant constructs all offsite roadway improvements in a timely manner consistent with Project phasing. The Project Applicant shall: • Prepare a detailed improvement plan for Horizon Lane to bring this road into conformance with City standards for a commercial collector of width between 44 to 60 feet from Suburban Road to the Project boundary. This plan shall be developed in coordination with adjacent property owners and the City Public Works Department. Horizon Lane shall not be connected to the Project site until such a plan has been PH 1 - 125 completed and improvements are completed in accordance with the phasing plan, as part of Phase 4. The section of Horizon Lane/Jespersen Road from the Project boundary to Buckley Road shall be designated as a residential collector with a width of roadway between 40 and 60 feet. Per MM TRANS-2e, construction of the Horizon Road from Suburban Road to Phase 4 of the Project shall be completed and open to travel prior to the issuance of any occupancy permit for the 100th residential unit of Phase 4 development. • Design and improve the intersection of Horizon Lane/Suburban Road to be consistent with City Engineering Standards and Specifications – Uniform Design Criteria and Municipal Code Standards. • Coordinate with the property owners along Earthwood Lane and City staff to complete the Earthwood Lane Extension to the Project site as part Phase 1. Earthwood Lane shall be developed to full City standards for a residential collector. Residential collectors shall be 44 to 60 feet wide as required by the City’s Uniform Design Criteria. • Coordinate with the property owners along Suburban Road and City staff to prepare a detailed improvement plan for Suburban Road to bring this road into conformance with City standards. This plan shall address widening of substandard sections near the east end of this roadway, completion of missing sidewalk segments, installation of street trees, pedestrian crossings (e.g., Suburban Road at Earthwood Lane). In accordance to the City’s Engineering Standards and Specifications – Uniform Design Criteria, a commercial collector road shall be 44 to 68 feet wide to effectively serve commercial and industrial uses. Improvements from Earthwood Lane to Higuera Street shall be done as part of Phase 1. Improvements from Earthwood Lane to Horizon Lane shall be done as part of Phase 4 development, prior to the connection of Horizon Lane with the Project site. • Prepare a detailed phasing plan that identifies reasonable timing of such improvements for Suburban Road, Horizon Lane, and Earthwood Lane. The phasing plan shall be developed in close coordination with City staff. Per MM TRANS 2e, construction of the Suburban Road improvements from Horizon Road from Earthwood shall be completed and open to travel prior to issuance of an occupancy permit for the 100th residential unit of Phase 4 development. The Suburban Road improvement from Earthwood to Higuera and the Earthwood improvements on the Project site and between the Project and Suburban shall be completed prior to issuance of the occupancy permit for the 1st dwelling unit. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. MM TRANS-3b would require speed calming measures on internal roadways to ensure speed limits do not exceed thresholds. The construction of these roadways is described in Impact TRANS-2 and associated mitigation measures address phasing impacts on these roadways. To assure Suburban Road operates at acceptable levels, MM TRANS-4 would require widening of the roadway. 5. Impact TRANS-6: MPA-generated traffic would exacerbate existing queuing at the South Street/Higuera Street intersection northbound right-turn lane, resulting in significant impacts. (Refer to pages 3.12-58 and 5-72 of the Final EIR.) a. Mitigation: The following mitigation measure would be required. PH 1 - 126 — Mitigation Measure TRANS-6. The Applicant shall design and construct the extension of the northbound right turn-lane at the South Street/Higuera Street intersection, to provide more storage capacity. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. MM TRANS-6 would require the Applicant to construct the extension of the northbound turn-lane at South Street/Higuera Street, providing more storage capacity and reducing the impact to less than significant. (See FEIR pages 3.12-58 to -59 and 5-72.) 6. Impact TRANS-7: MPA-generated traffic would cause exceedance of storage capacities at several intersections along South Higuera Street. (Refer to pages 3.12-59 and 5-72 of the Final EIR.) a. Mitigation: The following mitigation measures would be required. — Mitigation Measure TRANS-7a. The Applicant shall design and construct a second northbound left-turn lane at the intersection of South Higuera Street/Prado Road. The Applicant shall also pay a fair share fee for the widening of Prado Road Creek Bridge west of South Higuera Street by participating in the citywide transportation impact fee program. — Mitigation Measure TRANS-7b. The Applicant shall design and construct a second southbound left-turn lane at the Tank Farm Road/South Higuera Street intersection. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. Implementation of MM TRANS-7a, and 7b, would require the Applicant to install roadway improvements at multiple intersections along South Higuera Street to avoid traffic impacts at these intersections. 7. Impact TRANS-8: MPA-generated traffic would cause delays and exceedance of intersection capacities at several intersections along Los Osos Valley Road. (Refer to pages 3.12-64 and 5-73 of the Final EIR.) a. Mitigation: The following mitigation measures would be required. — Mitigation Measure TRANS-8a. The Project is located within the Los Osos Valley Road interchange Sub Area fee program, and, as such, the Applicant shall pay the Los Osos Valley Road subarea fee, for the cost of reconstructing the Los Osos Valley Road/U.S. Highway 101 interchange project and improvements along Los Osos Valley Road. The fee shall be associated with the number of dwelling units and the square footage of commercial development in the Project site and shall be paid the time of building permit issuance. — Mitigation Measure TRANS-8b. In coordination with the Applicant, the City shall retime the traffic signal at Los Osos Valley Road/South Higuera Street intersection and installation of signage at the South Higuera Street/Buckley Road intersection (terminus of the Buckley Road Extension) to inform drivers of additional access to U.S. Highway 101 at Ontario Road. The City Public Works Department shall ensure the improvements and signage meet safety criteria. PH 1 - 127 b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. The recently completed Los Osos Valley Road/U.S. Highway 101 interchange project has improved interchange operations to an acceptable LOS that the Project is substantially benefitting from and residual impacts associated with Project traffic would be less than significant. Retiming of the traffic signal at the intersection of South Higuera Street/Buckley Road and installing directional signage to inform drivers of additional U.S. Highway 101 access at Ontario Road, as part of the Buckley Road Extension, would alleviate existing queues by diverting traffic away from this intersection. All improvements would mitigate impacts to acceptable levels, resulting in a less than significant impact. 8. Impact TRANS-10: The proposed MPA would potentially degrade level of service for various pedestrian facilities serving the Project vicinity. (Refer to page 5-73 of the Final EIR.) a. Mitigation: The following mitigation measures would be required. — Mitigation Measure TRANS-3b. The Applicant shall install traffic calming measures (e.g., speed bumps, pedestrian bulb-outs, etc.) to control speed levels along internal roadways of the Project site, including the extensions of Venture Drive, Horizon Lane, and Jespersen Road as required by Policy 8.1.3. — Mitigation Measure TRANS-4. The Applicant shall prepare an improvement plan for Horizon Lane, Earthwood Lane, and Suburban Road, including roadway, bicycle, and pedestrian improvements. Improvements shall be constructed by the Applicant in coordination with the phasing plan required by MM TRANS-2a, to ensure the Applicant constructs all offsite roadway improvements in a timely manner consistent with Project phasing. The Project Applicant shall: • Prepare a detailed improvement plan for Horizon Lane to bring this road into conformance with City standards for a commercial collector of width between 44 to 60 feet from Suburban Road to the Project boundary. This plan shall be developed in coordination with adjacent property owners and the City Public Works Department. Horizon Lane shall not be connected to the Project site until such a plan has been completed and improvements are completed in accordance with the phasing plan, as part of Phase 4. The section of Horizon Lane/Jespersen Road from the Project boundary to Buckley Road shall be designated as a residential collector with a width of roadway between 40 and 60 feet. Per MM TRANS-2e, construction of the Horizon Road from Suburban Road to Phase 4 of the Project shall be completed and open to travel prior to the issuance of any occupancy permit for the 100th residential unit of Phase 4 development. • Design and improve the intersection of Horizon Lane/Suburban Road to be consistent with City Engineering Standards and Specifications – Uniform Design Criteria and Municipal Code Standards. • Coordinate with the property owners along Earthwood Lane and City staff to complete the Earthwood Lane Extension to the Project site as part Phase 1. Earthwood Lane shall be developed to full City standards for a residential collector. Residential collectors shall be 44 to 60 feet wide as required by the City’s Uniform Design Criteria. • Coordinate with the property owners along Suburban Road and City staff to prepare a detailed improvement plan for Suburban Road to bring this road into conformance with City standards. This plan shall address widening of substandard sections near the east end of this roadway, completion of missing sidewalk segments, installation of street trees, PH 1 - 128 pedestrian crossings (e.g., Suburban Road at Earthwood Lane). In accordance to the City’s Engineering Standards and Specifications – Uniform Design Criteria, a commercial collector road shall be 44 to 68 feet wide to effectively serve commercial and industrial uses. Improvements from Earthwood Lane to Higuera Street shall be done as part of Phase 1. Improvements from Earthwood Lane to Horizon Lane shall be done as part of Phase 4 development, prior to the connection of Horizon Lane with the Project site. • Prepare a detailed phasing plan that identifies reasonable timing of such improvements for Suburban Road, Horizon Lane, and Earthwood Lane. The phasing plan shall be developed in close coordination with City staff. Per MM TRANS 2e, construction of the Suburban Road improvements from Horizon Road from Earthwood shall be completed and open to travel prior to issuance of an occupancy permit for the 100th residential unit of Phase 4 development. The Suburban Road improvement from Earthwood to Higuera and the Earthwood improvements on the Project site and between the Project and Suburban shall be completed prior to issuance of the occupancy permit for the 1st dwelling unit. — Mitigation Measure TRANS-8a. The Project is located within the Los Osos Valley Road interchange Sub Area fee program, and, as such, the Applicant shall pay the Los Osos Valley Road subarea fee, for the cost of reconstructing the Los Osos Valley Road/U.S. Highway 101 interchange project and improvements along Los Osos Valley Road. The fee shall be as sociated with the number of dwelling units and the square footage of commercial development in the Project site and shall be paid the time of building permit issuance. — Mitigation Measure TRANS-10a. The Applicant shall design and construct ADA-compliant sidewalks and ADA ramps on the east side of South Higuera Street to provide continuous paths of travel from the City limit line to Los Osos Valley Road. — Mitigation Measure TRANS-10b. The Applicant shall design and construct continuous sidewalks along the east side of South Higuera Street from Vachell Lane to Los Osos Valley Road including ADA ramps at the Vachell Lane and South Higuera Street intersection, as illustrated in Figure 3.12-6. — Mitigation Measure TRANS-10c. The Applicant shall design and construct continuous ADA- compliant sidewalks and ADA ramps along the south side of Suburban Road from South Higuera Street to Earthwood Lane. A receiving ramp shall be installed on the north side of Suburban Road at Earthwood Lane. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. Implementation of the proposed mitigation measures would require installation of pedestrian facilities, continuous sidewalks and ADA ramps, where needed, ensuring that pedestrian facilities in the Project vicinity operate at acceptable levels and reducing the impact to less than significant. (See FEIR pages 3.12-70 and 5-73.) 9. Impact TRANS-11: MPA development would increase demand for bicycle facilities in an underserved area and would potentially conflict with the City’s Bicycle Transportation Plan regulations and General Plan thresholds. (Refer to page 5-73 of the Final EIR.) a. Mitigation: The following mitigation measures would be required. PH 1 - 129 — Mitigation Measure TRANS-8a. The Project is located within the Los Osos Valley Road interchange Sub Area fee program, and, as such, the Applicant shall pay the Los Osos Valley Road subarea fee, for the cost of reconstructing the Los Osos Valley Road/U.S. Highway 101 interchange project and improvements along Los Osos Valley Road. The fee shall be as sociated with the number of dwelling units and the square footage of commercial development in the Project site and shall be paid the time of building permit issuance. — Mitigation Measure TRANS-11. The Applicant shall construct two (2) separated bicycle bridges on each side of Buckley Road at Tank Farm Creek and provide connections to Buckley Road so as to provide continuous and safe bicycle routing along Buckley Road. These sections of roadway and creek crossings are under the jurisdiction of the County and would need to meet both City and County design standards to the greatest extent feasible and are subject to approval of the City’s Public Works Director. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the project to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. Implementation of MM TRANS-8a and -11 would require that all proposed bicycle lanes are design to meet BTP requirements and ensure consistency with General Plan thresholds and the BTP goals and guidelines. 10. Impact TRANS-12. The proposed MPA would increase demand for transit services in an underserved area, presenting a barrier to both transit dependent and non-transit dependent households for using transit. (Refer to page 3.12-74 of the Final EIR.) a. Mitigation: The following mitigation measures are required to reduce the project’s impacts from increases in demand for transit services. — Mitigation Measure TRANS-12. The Applicant shall coordinate with SLO Transit to ensure that adequate service would be provided to the two proposed bus stops and Project area. The bus stops shall be constructed by the Applicant within the respective phase’s development area. To assure adequate service is provided to the two new bus stops onsite, the Applicant shall pay for and install any physical improvements to Earthwood Lane and Suburban Road needed to accommodate future service to the site. In addition, the proposed transit service onsite shall meet standards stated in Policy 3.1.6, Service Standards. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. Implementation of the proposed mitigation measure will meet the increased demand for transit service and reduce the impact to less than significant. (See FEIR page 3.12-75 and 5-73.) 11. Cumulative Impact TRANS-14: Under near-term conditions, the proposed MPA would cumulatively contribute incrementally to increased demand for bicycle and pedestrian facilities, potentially conflicting with the City’s BTP regulations and General Plan thresholds. (Refer to page 5- 74 of the Final EIR.) a. Mitigation: The following mitigation measures would be required. PH 1 - 130 — Mitigation Measure TRANS-10b. The Applicant shall design and construct continuous sidewalks along the east side of South Higuera Street from Vachell Lane to Los Osos Valley Road including ADA ramps at the Vachell Lane and South Higuera Street intersection, as illustrated in Figure 3.12-6. — Mitigation Measure TRANS-14. If approved by City Council, the City shall amend the TIF, or some other fee program, to include a fee program for the installation of a Class I bicycle path from Buckley Road/South Higuera Street intersection to Los Osos Valley Road/U.S. Highway 101 southbound ramps intersection, connecting to the Bob Jones Trail. The Applicant shall pay its fair share fee to fund the improvement through the adopted fee program. Alternatively, the City may establish a special or ad hoc mitigation fee program to fund the Project’s share of these improvements. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the cumulatively significant environmental effects identified in the Final EIR. Implementation of MM-TRANS-10b would require the Applicant to install continuous sidewalks to improve pedestrian LOS on Higuera Street from LOVR to Vachell Lane. In addition, MM TRANS-14 would require the Applicant to pay its fair share fee to fund the design and installation of a Class I bike path connection from Buckley Road/South Higuera Street intersection to the Los Osos Valley Road/U.S. Highway 101 southbound ramps intersection if approved by Council. The Class I bicycle path would provide a parallel route to South Higuera Street and avoid intersections along that segment. Therefore, with the installation of Class I bicycle paths and continuous pedestrian facilities, cumulative impacts would be less than significant. 12. Cumulative Impact TRANS-15: Under long-term cumulative plus Project conditions, MPA- generated traffic would result in a cumulatively considerable contribution to potentially significant impacts to the operational conditions at four intersections. (Refer to page 5-74 of the Final EIR.) a. Mitigation: The following mitigation measures would be required. — Mitigation Measure TRANS-5. The Applicant shall pay a pro-rata fair share fee to fund the installation a roundabout at the Buckley Road/SR 227 intersection as identified in the SLOCOG SR 227 Operations Study. The City shall collect the fair share fee and coordinate payment of Project fair share fees to help fund improvements with the County. Alternatively, the City should consider an amendment of the AASP impact fee program to establish a new areawide fee to help fund improvements to the intersection to offset cumulative development impacts. If an amended AASP fee is created by the City it will suffice as appropriate mitigation for the Project’s participation in these improvements. — Mitigation Measure TRANS-15a. The Applicant shall pay its fair share fee to the City to fund the widening of the Prado Road/South Higuera Street intersection to accommodate a dual left- turn lane, dual thru-lanes, and a right-turn lane on all approaches. Part of this share may be contained within existing fee programs or ultimately incorporated into the Citywide TIF program. If amended into the Citywide TIF fee program, payment of those fees will address project impacts. — Mitigation Measure TRANS-15b. The Applicant shall pay its fair share mitigation fees to fund improvements to the intersection of Higuera/Tank Farm Road to provide: 1) extension of the northbound right-turn lane, 2) the installation of a “pork cop” island to assist pedestrian crossings, PH 1 - 131 and 3) widening on the south side of Tank Farm to provide a slip lane for right turning traffic. The City should consider incorporating this improvement into the AASP Fee program. — Mitigation Measure TRANS-15c. The City shall review the cross sections for improvements to Tank Farm Road/Horizon Lane intersection as proposed within AASP to ensure long-term geometrics meet the objectives of the General Plan. The Applicant shall pay its fair share mitigation fees to fund the installation of an additional northbound right-turn lane or a roundabout at the Tank Farm Road/Horizon Lane intersection. The City should consider incorporating this improvement into the AASP fee program. — Mitigation Measure TRANS-15d. The Applicant shall pay fair share mitigation fees to fund the installation of a traffic signal or a single-lane roundabout at the Buckley Road/Vachell Lane intersection. While not required, this work may be implemented as part of the Buckley Road extension being installed as part of Phase 2 of the Project. T he City should consider incorporating this improvement into the AASP fee program. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the MPA to avoid or lessen to a less than significant level the cumulatively significant environmental effects identified in the Final EIR. The above measures would ensure that study intersections continue to operate at acceptable levels. Therefore, impacts to roadways under the cumulative plus Project conditions for Tank Farm Road/South Higuera Street, Tank Farm Road/Horizon Lane, and Buckley Road/Vachell Lane would be less than significant after mitigation. K. UTILITIES 1. Impact UT-2: The MPA would require the expansion of utility infrastructure to serve new development, including water, sewer, gas and electricity into the site; the construction of which could cause environmental effects. (Refer to page 5-75 of the Final EIR.) a. Mitigation: The following mitigation measures would be required. — Mitigation Measure UT-2. The size, location, and alignment of all on- and offsite water, wastewater, and energy infrastructure offsite shall be subject to review and approval by the City’s Public Works and Utilities Departments. The Applicant shall be responsible for constructing all required onsite and offsite utility improvements and well as for repaving of damaged roadways. — Mitigation Measure AQ-1a. A Construction Activity Management Plan (CAMP) shall be included as part of Project grading and building plans and shall be submitted to the APCD and to the City for review and approval prior to the start of construction. In addition, the contractor or builder shall designate a person or persons to monitor the dust control program and to order increased watering, as necessary, to prevent transport of dust offsite. Their duties shall include holidays and weekend periods when work may not be in progress. The name and telephone of such persons shall be provided to the APCD prior to land use clearance for map recordation and grading. The plan shall include but not be limited to the following elements: 1. A Dust Control Management Plan that encompasses the following dust control measures: • Reduce the amount of disturbed area where possible; PH 1 - 132 • Water trucks or sprinkler trucks shall be used during construction to keep all areas of vehicle movement damp enough to prevent dust from leaving the site. At a minimum, this would require twice-daily applications. All dirt stock pile areas should be sprayed daily as needed. Increased watering frequency would be required when wind speeds exceed 15 miles per hour (mph). Reclaimed water or the onsite water well (non-potable) shall be used when possible. The contractor or builder shall consider the use of an APCD-approved dust suppressant where feasible to reduce the amount of water used for dust control; • All dirt stock-pile areas shall be sprayed daily as needed; • Permanent dust control measures identified in the approved Project revegetation and landscape plans should be implemented as soon as possible following completion of any soil disturbing activities; • Exposed ground areas that are planned to be reworked at dates greater than one month after initial grading shall be sown with a fast germinating native grass seed and watered until vegetation is established; • All disturbed soil areas not subject to revegetation shall be stabilized using approved chemical soil binders, jute netting, or other methods approved in advance by the APCD; • All roadways, driveways, sidewalks, etc. to be paved should be completed as soon as possible. In addition, building pads should be laid as soon as possible after grading unless seeding or soil binders are used; • Vehicle speed for all construction vehicles shall not exceed 15 mph on any unpaved surface at the construction site; • All trucks hauling dirt, sand, soil, or other loose materials are to be covered or shall maintain at least two feet of freeboard in accordance with California Vehicle Code Section 23114; • Install wheel washers where vehicles enter and exit unpaved roads onto streets, or wash off trucks and equipment leaving the site; • Sweep streets at the end of each day if visible soil material is carried onto adjacent paved roads. Water sweepers with reclaimed water should be used where feasible; • All of these fugitive dust mitigation measures shall be shown on grading and building plans; and • The contractor or builder shall designate a person or persons to monitor the fugitive dust control emissions and enhance the implementation of the measures as necessary to minimize dust complaints, reduce visible emissions below 20 percent opacity, and to prevent transport of dust offsite. Their duties shall include holiday and weekend periods when work may not be in progress. The name and telephone number of such persons shall be provided to the APCD Compliance Division prior to the start of any grading, earthwork or demolition. 2. Implementation of the following BACT for diesel-fueled construction equipment, where feasible. The BACT measures shall include: • Use of Tier 3 and Tier 4 off-road equipment and 2010 on-road compliant engines; • Repowering equipment with the cleanest engines available; and • Installing California Verified Diesel Emission Control Strategies. PH 1 - 133 3. Implementation of the following standard air quality measures to minimize diesel emissions: • Maintain all construction equipment in proper tune according to manufacturer’s specifications; • Fuel all offroad and portable diesel powered equipment with CARB-certified motor vehicle diesel fuel (non-taxed version suitable for use off-road). • Use on-road heavy-duty trucks that meet the CARB’s 2007 or cleaner certification standard for on-road heavy-duty diesel engines and comply with the State On-Road Regulation; • Construction or trucking companies with fleets that do not have engines in their fleet that meet the engine standards identified in the above two measures (e.g. captive or NOx exempt area fleets) may be eligible by proving alternative compliance; • On- and off-road diesel equipment shall not be allowed to idle for more than five minutes. Signs shall be posted in the designated queuing areas to remind drivers and operators of the five-minute idling limit; • Diesel idling within 1,000 feet of sensitive receptors in not permitted; • Staging and queuing areas shall not be located within 1,000 feet of sensitive receptors; • Electrify equipment when feasible; • Substitute gasoline-powered in place of diesel-powered equipment, where feasible; and, • Use alternatively fueled construction equipment onsite where feasible, such as compressed natural gas (CNG), liquefied natural gas (LNG), propane or biodiesel. 4. Tabulation of on- and off-road construction equipment (age, horse-power, and miles and/or hours of operation); 5. Schedule construction truck trips during non-peak hours (as determined by the Public Works Director) to reduce peak hour emissions; 6. Limit the length of the construction work-day period; and 7. Phase construction activities, if appropriate. — Mitigation Measure AQ-1b. To reduce ROG and NOx levels during the architectural coating phase, low or no VOC-emission paint shall be used with levels of 50 g/L or less, such as Benjamin Moore Natura Paint (Odorless, Zero VOC Paint). The Applicant or builder shall implement additional measures to reduce daily and quarterly ROG and NOx levels related to architectural coatings to the extent determined feasible by the City and APCD, such as extending coating applications by limiting daily coating activities. — Mitigation Measure AQ-1c. In order to further reduce Project air quality impacts, an offsite mitigation strategy shall be developed and agreed upon by the developer, City, and APCD at least three months prior to the issuance of grading permits, including added funding for circulation improvements and transit operations. Such funding may be in the form of cash payment or included as part of the obligation of the Community Facilities District. The Applicant shall provide this funding at least two months prior to the start of construction to help facilitate emission offsets that are as real-time as possible. Offsite mitigation strategies shall include one or more of the following: PH 1 - 134 • Replace/repower San Luis Obispo Regional Transit Authority (SLORTA) transit buses; • Purchase VDECs for transit buses; and • Fund expansion of existing SLORTA transit services. — Mitigation Measure BIO-1a. The Applicant shall prepare and implement a Biological Mitigation Plan that identifies construction-related staging and maintenance areas and includes Project- specific construction best management practices (BMPs) to avoid or minimize impacts to biological resources, including all measures needed to protect riparian woodland along Tank Farm Creek, minimize erosion, and retain sediment on the Project site. Such BMPs shall include (but not be limited to) the following: 12. Construction equipment and vehicles shall be stored at least 100 feet away from Tank Farm Creek and adjacent riparian habitat, and all construction vehicle maintenance shall be performed in a designated offsite vehicle storage and maintenance area. 13. Prior to construction activities adjacent to Tank Farm Creek, the creek shall be fenced with orange construction fencing and signed to prohibit entry of construction equipment and personnel unless authorized by the City. Fencing should be located a minimum of 20 feet from the edge of the riparian canopy or top of bank, whichever is further from the creek, and shall be maintained throughout the construction period for each phase of development. 14. In the event that construction must occur within the creek or 20 -foot creek setback, a biological monitor shall be present during all such activities with the authority to stop or redirect work as needed to protect biological resources. 15. Construction shall occur during daylight hours (7:00 AM to 7:00 PM or sunset, whichever is sooner) to avoid impacts to nocturnal and crepuscular (dawn and dusk activity period) species. No construction night lighting shall be permitted within 100 yards of the top of the creek banks. 16. Construction equipment shall be inspected at the beginning of each work day to ensure that no wildlife species is residing within any construction equipment (e.g., species have not climbed into wheel wells, engine compartments, or under tracks since the equipment was last parked). Any sensitive wildlife species found during inspections shall be gently encouraged to leave the Project site by a qualified biologist or otherwise trained and City- approved personnel. 17. Pallets or secondary containment areas for chemicals, drums, or bagged materials shall be provided. Should material spills occur, materials and/or contaminants shall be cleaned from the Project site and recycled or disposed of to the satisfaction of the Regional Water Quality Control Board (RWQCB). 18. All trash and construction debris shall be picked up and properly disposed at the end of each day and waste dumpsters shall be covered with plastic sheeting at the end of each workday and during storm events. All sheeting shall be carefully secured to withstand weather conditions. 19. The Applicant shall implement erosion control measures designed to minimize erosion and retain sediment on the Project site. Such measures shall include installation of silt fencing, straw waddles, or other acceptable erosion control devices along the perimeter of Tank Farm Creek and at the perimeter of all cut or fill slopes. All drainage shall be directed to sediment basins designed to retain all sediment onsite. 20. Concrete truck and tool washout should occur in a designated location such that no runoff will reach the creek. 21. All open trenches shall be constructed with appropriate exit ramps to allow species that incidentally fall into a trench to escape. All open trenches shall be inspected at the PH 1 - 135 beginning of each work day to ensure that no wildlife species is present. Any sensitive wildlife species found during inspections shall be gently encouraged to leave the Project site by a qualified biologist or otherwise trained and City-approved personnel. Trenches will remain open for the shortest period necessary to complete required work. 22. Existing facilities and disturbed areas shall be used to the maximum extent possible to minimize the amount of disturbance of undeveloped areas and all construction access roads and staging areas shall be located to avoid high quality habitat and minimize habitat fragmentation. — Mitigation Measure BIO-1b. The Applicant shall retain a qualified Environmental Monitor, subject to review and approval by the City and in consultation with CDFW, RWQCB, and USFWS to oversee compliance of the construction activities with the Biological Monitoring Plan and applicable laws, regulations, and policies. The Environmental Monitor shall monitor all construction activities, conduct a biological resources education program for all construction workers prior to the initiation of any clearing or construction activities, and provide quarterly reports to the City regarding construction activities, enforce ment issues and remedial measures. The Environmental Monitor shall be responsible for conducting inspections of the work area each work day to ensure that excavation areas, restored habitats, and open water habitats in the area do not have oil sheen, liquid oil, or any other potential exposure risk to wildlife. If any exposure risk is identified, the Environmental Monitor shall implement measures that could include, but are not limited to, hazing, fencing, and wildlife removals to eliminate the exposure risk. In addition, a CDFW-approved biologist shall be present during all construction occurring within 50 feet of Tank Farm Creek, riparian habitat, drainages, and seasonal or permanent wetlands. The biologist shall also conduct sensitive species surveys immediately prior to construction activities (within the appropriate season) and shall monitor construction activities in the vicinity of habitats to be avoided (see also, MM BIO-3 and all subparts below). The work area boundaries and other off-limit areas shall be identified by the biologist and/or Environmental Monitor on a daily basis. The biologist and/or Environmental Monitor shall inspect construction and sediment control fencing each work day during construction activities to ensure that sensitive species are not exposed to hazards. Any vegetation clearing activities shall be monitored by the biologist and/or Environmental Monitor. — Mitigation Measure BIO-2a. Project designs shall be modified to realign the Tank Farm Class I bicycle path and relocate manufactured slopes for housing pads in order to create a minimum of a 35-foot creek setback from either the top of the bank of Tank Farm Creek or edge of riparian habitat, whichever is further, for at least 90 percent of corridor length. No more than 10 percent of the length of the corridor (700 linear feet) shall have a setback of less than 35 feet, but at least 20 feet from the top of the bank or edge of riparian canopy, whichever is further. However, in any instance the creek setback shall be no less than 20 feet from the edge of riparian canopy or top of bank, whichever is further, consistent with Section 17.16.025 of the City of San Luis Obispo Zoning Regulations. — Mitigation Measure BIO-2b. The Biological Mitigation Plan shall provide details on timing and implementation of required habitat restoration and shall be prepared in consultation with the City’s Natural Resource Manager and CDFW. A copy of the final plan shall be submitted to the City for review and approval. The plan shall be implemented by the Project Applicant, under supervision by the City and Environmental Monitor, and: PH 1 - 136 27. Characterize the type, species composition, spatial extent, and ecological functions and values of the wetland and riparian habitat that will be removed, lost, or damaged. 28. Describe the approach that will be used to replace the wetland and riparian habitat removed, lost, or adversely impacted by the Project, including a list of the soil, plants, and other materials that will be necessary for successful habitat replacement, and a description of planting methods, location, spacing, erosion protection, and irrigation measures that will be needed. Restoration and habitat enhancement shall include use of appropriate native species and correction of bank stabilization issues. Wetland restoration or enhancement areas shall be designed to facilitate establishment of wetland plants such as willows, cottonwoods, rushes, and creeping wild rye. 29. Describe the habitat restoration ratio to be used in calculating the acreage of habitat to be planted, consistent with MM BIO-2c through BIO-2e below and the findings in the Biological Report (Appendix I). 30. Describe the program that will be used for monitoring the effectiveness and success of the habitat replacement approach. 31. Describe how the habitat replacement approach will be supplemented or modified if the monitoring program indicates that the current approach is not effective or successful. 32. Describe the criteria that will be used to evaluate the effectiveness and success of the habitat replacement approach. 33. Indicate the timing and schedule for the planting of replacement habitat. 34. Habitat restoration or enhancement areas shall be established within the Project boundaries, adjacent to and contiguous with existing wetlands to the maximum extent possible. Habitats suitable for Congdon’s tarplant and other native wetland species shall be created onsite. If Congdon’s tarplant is found in areas proposed for disturbance, the affected individuals shall be replaced at a 1:1 ratio through seeding in a suitable conserved natural open space area. A management plan for the species shall be developed consistent with applicable scientific literature pertinent to this species. 35. Habitat restoration or enhancement sites shall be placed within deed-restricted area(s), and shall be maintained and monitored for a minimum of five years. If sufficient onsite mitigation area is not practicable, an offsite mitigation plan shall be prepared as part of the Biological Mitigation Plan and approved by permitting agencies. 36. The Biological Mitigation Plan shall identify appropriate restoration and enhancement activities to compensate for impacts to seasonal creek, wetland, and riparian habitat, including a detailed planting plan and maintenance plans using locally obtained native species and include habitat enhancement to support native wildlife and plant species. 37. A weed management plan and weed identification list shall be included in the Biological Mitigation Plan. 38. Habitat restoration or enhancement areas shall be maintained weekly for the first three years after Phase completion and quarterly thereafter. Maintenance shall include eradication of noxious weeds found on California Department of Food and Agriculture Lists (CDFA) A and B. Noxious weeds on CDFA list C may be eradicated or otherwise managed. 39. Mitigation implementation and success shall be monitored quarterly for the first two years after completion of each Phase, semi-annually during the third year, and annually the fourth and fifth years. Annual reports documenting site inspections and site recovery status shall be prepared and sent to the County and appropriate agencies. — Mitigation Measure BIO-2c. Within the required Biological Mitigation Plan, all temporary and permanent impacts to riparian trees, wetlands, and riparian habitat shall be mitigated, as follows: PH 1 - 137 16. Temporary impacts to wetland and riparian habitat shall be mitigated at a minimum 1:1 mitigation ratio for restoration (area of restored habitat to impacted habitat). 17. Permanent impacts to state jurisdictional areas, including isolated wetlands within agricultural lands and riparian habitat will be mitigated at a 1.5:1 ratio (area of restored and enhanced habitat to impacted habitat). 18. Permanent impacts to federal wetlands shall be mitigated at a minimum 3:1 ratio (1:1 area of created to impacted habitat plus 2:1 area of created/enhanced habitat to impacted habitat). 19. Riparian trees four inches or greater measured at diameter-at-breast-height (DBH) shall be replaced in-kind at a minimum ratio of 3:1 (replaced: removed). Trees measured at 24 inches or greater DBH shall be replaced in-kind at a minimum ratio of 10:1. Willows and cottonwoods may be planted from live stakes following guidelines provided in the California Salmonid Stream Habitat Restoration Manual for planting dormant cuttings and container stock (CDFW 2010). Permanent impacts to riparian vegetation shall be mitigated at a 3:1 ratio to ensure no net loss of acreage and individual plants. 20. Replacement trees shall be planted in the fall or winter of the year in which trees were removed. All replacement trees will be planted no more than one year following the date upon which the native trees were removed. Replacement plants shall be monitored for 5 years with a goal of at least 70 percent survival at the end of the 5 -year period. Supplemental irrigation may be provided during years 1 to 3; however, supplemental watering shall not be provided during the final two years of monitoring. — Mitigation Measures BIO-2d. Project design shall be modified to preserve at a minimum the southern 275 feet of the North-South Creek Segment to protect all existing mature riparian woodland, and the proposed drainage plan shall be altered to convey remaining surface water flows from areas to the north to this channel. — Mitigation Measure BIO-2e. To minimize impacts to riparian habitat, the Project shall stockpile sufficient emergent vegetation (e.g., cattails) for later planting in the realigned reach of Tank Farm Creek. Stockpiled vegetation shall be placed in earthen basins with the roots covered with moist soil and maintained in a moist condition during construction operations. — Mitigation Measure BIO-2g. A post-construction landscape and restoration report for each phase shall be prepared by the Environmental Monitor based on as-built drawings and site inspections to document the final grading, plantings, and habitat restoration activities. The report shall include as-built plans prepared after restoration, grading, and mitigation habitat plantings are complete. The as-built plans shall be prepared by landscape and grading contractors responsible for realignment and restoration within Tank Farm Creek. — Mitigation Measure BIO-2h. Project activities within Tank Farm Creek and drainage channels, including any tree pruning or removals, any necessary erosion repairs, or culvert removals, shall be performed when the channel is dry, planned to the satisfaction of the City Engineer and Natural Resource Manager per City Drainage Manual Standards, and be subject to monitoring by the Environmental Monitor. Upon removal of the existing steel culvert currently used for farm access across Tank Farm Creek, the channel shall be restored to match conditions immediately upstream and downstream including channel width, gradient, and vegetation. — Mitigation Measure BIO-2i. To reduce erosion and runoff from all exposed soils, all bare disturbed soils shall be hydroseeded at the completion of grading for each construction phase. The seed mix shall contain a minimum of three locally native grass species and may contain one PH 1 - 138 or two sterile non-native grasses not to exceed 25 percent of the total seed mix by count. Seeding shall be completed no later than November 15 of the year in which Project activities occurred. All exposed areas where seeding is considered unsuccessful after 90 days shall receive a second application or seeding, straw, or mulch as soon as is practical to reduce erosion. — Mitigation Measure BIO-2j. The Tank Farm Creek Class I bicycle path bridge footings for creek crossings shall be placed outside mapped riparian areas and outside the top of the bank of the channel invert. The Class I bridges shall be located within area s that have little to no riparian vegetation. No construction activities or equipment shall occur in the stream channel. The placement of the bridge and footings shall be indicated on the Development Plan, VTM, and Biological Mitigation Plan, and shall show the bridges’ placement in relation to existing vegetation and the creek channel and banks. — Mitigation Measure BIO-3a. The City-approved qualified biologist shall conduct training to all construction personnel to familiarize construction crews with sensitive species that have the potential to occur within the Project site. This may include but is not limited to: California red - legged frog, western pond turtle, Steelhead trout, bats, migratory birds, and Congdon’s tarplant. The educational program shall include a description what constitutes take, penalties for take, and the guidelines that would be followed by all construction personnel to avoid take of species during construction activities. Descriptions of the California red-legged frog and its habits, Congdon’s tarplant, nesting and migratory birds that may be encountered, and all other sensitive species that have a potential to occur within the vicinity of Project construction shall be provided. The construction crew foreman shall be responsible for ensuring that crew members comply with the guidelines and that all new personnel receive the training before partaking in construction activities. — Mitigation Measure BIO-3b. The Biological Mitigation Plan shall address wildlife and special status species movement as follows: • Migratory and Nesting Bird Management. Grading and construction activities shall avoid the breeding season (typically assumed to be from February 15 to August 15) to the extent practicable, particularly within 50 feet of Tank Farm Creek and riparian or wetland habitat. If Project activities must be conducted during this period, pre -construction nesting bird surveys shall take place within one week of habitat disturbance associated with each phase, and if active nests are located, the following shall be implemented: • Construction activities within 50 feet of active nests shall be restricted until chicks have fledged, unless the nest belongs to a raptor, in which case a 200-foot activity restriction buffer shall be observed. • A pre-construction survey report shall be submitted to the City immediately upon completion of the survey. The report shall detail appropriate fencing or flagging of the buffer zone and make recommendations on additional monitoring requirements. A map of the Project site and nest locations shall be included with the report. • The Project biologist conducting the nesting survey shall have the authority to reduce or increase the recommended buffer depending upon site conditions and the species involved. A report of findings and recommendations for bird protection shall be submitted to the City prior to vegetation removal. • Bat Colony Management. Prior to removal of any trees over 20 inches diameter-at- breast-height (DBH), a survey shall be conducted by a CDFW-approved qualified biologist to determine if any tree proposed for removal or trimming harbors sensitive bat species or maternal bat colonies. Maternal bat colonies shall not be disturbed. If a non- PH 1 - 139 maternal roost is found, the qualified biologist shall install one-way valves or other appropriate passive relocation method. For each occupied roost removed, one bat box shall be installed in similar habitat and shall have similar cavities or crevices to those which are removed, including access, ventilation, dimensions, height above ground, and thermal conditions. If a bat colony is excluded from the Project site, appropriate alternate bat habitat shall be installed in the Project site. To the extent practicable, alternate bat house installation shall be installed near the onsite drainage. • Congdon’s Tarplant Management. Prior to initiation of construction, the Applicant shall fund a site survey for Congdon’s tarplant, and: • If Congdon’s tarplant is found in areas proposed for building, the affected individuals shall be replaced at a 1:1 ratio through seeding in a suitable conserved natural open space area. • A mitigation and monitoring plan for the species shall be developed c onsistent with applicable scientific literature pertinent to this species. The plan shall provide for the annual success over an area of at least 1,330 square feet with approximately 500-750 individuals (the current aerial extent) and be implemented to reduce impacts to Congdon’s tarplant to a less than significant level. • The mitigation plan shall be incorporated into the Biological Mitigation Plan, wherein wetland sites shall be created and Congdon’s tarplant seeds from the site shall be reintroduced. • Sensitive Species Management. Injury or mortality to the California red-legged frog, western pond turtle, and steelhead shall be avoided. The plan shall include the following measures: pre-Project surveys; worker awareness; cessation of work in occupied areas; relocation (if necessary) of frogs, turtles, and steelhead from the work area by a professional biologist authorized by the USFWS and/or CDFW; and monitoring by a qualified biologist during construction. Necessary permits shall be obtained from the state (CDFW) and federal (USACE and USFWS) regulatory agencies with jurisdiction. Any other sensitive species observed during the pre-construction surveys shall be relocated out of harm’s way by the qualified biologist into the nearest suitable habitat as determined in consultation with the jurisdictional resource agency outside the disturbance area. — Mitigation Measure BIO-3c. Within 48 hours prior to construction activities within 50 feet of Tank Farm Creek, drainages, and seasonal wetlands, the Project site shall be surveyed for California red-legged frogs by a qualified biologist. If any California red -legged frogs are found, work within 25 linear feet in any direction of the frog shall not start until the frog has been moved from the area. The USFWS shall be consulted for appropriate action; the Applicant shall obtain a Biological Opinion from the USFWS and any additional authorization required by other regulatory agencies prior to the commencement of work. The USFWS-qualified biologist, Environmental Monitor, or USFWS personnel may determine that frog-exclusion fencing is necessary to prevent overland movement of frogs if concerns arise that frogs could enter construction areas. Frog-exclusion fencing should contain no gaps and must extend at least 18 inches above ground; fences may be opened during periods of no construction (e.g., weekends) to prevent entrapment. — Mitigation Measure BIO-3d. Within 48 hours prior to construction activities within 50 feet of Tank Farm Creek, drainages, seasonal wetlands, and riparian habitat, the Project site shall be surveyed for western pond turtles by a qualified biologist. If any western pond turtles are found, work shall cease until the turtle is relocated to the nearest suitable habitat. The qualified biologist shall monitor all ground breaking work conducted within 50 feet of western pond turtle habitat. PH 1 - 140 The City-approved biologist Environmental Monitor may determine that silt fencing shall be installed adjacent to western pond turtle habitat if concerns arise that the western pond turtle overland movement could allow them to access construction areas. — Mitigation Measure BIO-6. All work in and within 100 feet of Tank Farm Creek, including work within the creek setback, shall occur outside the rainy season (April 15 to October 15, unless approved otherwise by RWQCB), during periods when the creek channel is dry and water flows are absent. — Mitigation Measure CR-2a. Data recovery through controlled grading of CA-SLO-2798/H shall occur prior to the start of construction to seek buried features and additional diagnostic artifacts. The Applicant shall retain a Registered Professional Archaeologist familiar with the types of historic and prehistoric resources that could be encountered within the Project site and a Native American monitor to supervise the controlled grading, which shall occur in 10 -centimeter lifts to culturally sterile sediments or maximum construction depth (whichever is reached first). • Any formed tools exposed during grading shall be collected. If archaeological features are exposed (including but not limited to hearths, storage pits, midden deposits, or structural remains), the archaeologist shall temporarily redirect grading to another area so the features can be exposed, recorded, and sampled according to standard archaeological procedures. Organic remains shall be dated using the radiocarbon method and the geochemical source and hydration rim thickness of any obsidian shall be determined. Technical analyses of plant remains, bone and shell dietary debris, and other important materials shall also be performed. • Artifacts, features, and other materials recovered through this process shall be described, illustrated, and analyzed fully in a technical report of findings; the analysis shall include comparative research with other sites of similar age. In addition to the technical report, the findings from this research shall be published in an appropriate scientific journal. The Applicant shall fund all technical reporting and subsequent publication. — Mitigation Measure CR-2b. Following completion of controlled grading of CA-SLO-2798/H, the Applicant shall retain a Registered Professional Archaeologist and a Native American consultant to monitor all further earth disturbances within Phase 5 to ensure that previously unidentified buried archaeological deposits are not inadvertently exposed and damaged. In the event archaeological remains are encountered during grading or other earth disturbance, work in the vicinity shall be stopped immediately and redirected to another location until the Project archaeologist evaluates the significance of the find pursuant to City Archaeological Resource Preservation Program Guidelines. If remains are found to be significant, they shall be subject to a Phase 3 mitigation program consistent with City Guidelines and funded by the Applicant. — Mitigation Measure CR-3a. Prior to the issuance of building and grading permits for Phase 1, the Applicant shall retain a City-approved Registered Professional Archaeologist and a Native American monitor to be present during all ground disturbing activities within the Project site and Buckley Road Extension site. In the event of any inadvertent discovery of prehistoric or historic- period archaeological resources during construction, all work within 50 feet of the discovery shall immediately cease (or greater or lesser distance as needed to protect the discovery and determined in the field by the Project archaeologist). The Applicant shall immediately notify the City of San Luis Obispo Community Development Department. The Project archaeologist shall evaluate the PH 1 - 141 significance of the discovery pursuant to City Archaeological Resource Preservation Program Guidelines prior to resuming any activities that could impact the site/discovery. If the Project archaeologist determines that the find may qualify for listing in the CRHR, the site shall be avoided or shall be subject to a Phase 3 mitigation program consistent with City Guidelines and funded by the Applicant. Work shall not resume until authorization is received from the City. — Mitigation Measure CR-3b. Prior to construction, workers shall receive education regarding the recognition of possible buried cultural remains and protection of all cultural resources, including prehistoric and historic resources, during construction. Such training shall provide construction personnel with direction regarding the procedures to be followed in the unlikely event that previously unidentified archaeological materials, including Native American burials, are discovered during construction. Training would also inform construction personnel that unauthorized collection or disturbance of artifacts or other cultural materials is not allowed. The training shall be prepared by the Project archaeologist and shall provide a description of the cultural resources that may be encountered in the Project site, outline steps to follow in the event that a discovery is made, and provide contact information for the Project archaeologist, Native American monitor, and appropriate City personnel. The training shall be conducted concurrent with other environmental or safety awareness and education programs for the Project, provided that the program elements pertaining to archaeological resources is provided by a qualified instructor meeting applicable professional qualifications standards. — Mitigation Measure HAZ-1. Prior to earthwork and demolition activities, a site-specific Health and Safety Plan shall be developed per California Occupational Safety and Health Administration (Cal/OSHA) requirements. The Health and Safety Plan shall include appropriate best management practices (BMPs) related to the treatment, handling, and disposal of NOA and ACMs. A NOA Construction and Grading Project Form shall be submitted to the APCD prior to grading activities. All construction employees that have the potential to come into contact with contaminated building materials and soil/bedrock shall be briefed on the safety plan, including required proper training and use of personal protective equipment. During earthwork and demolition activities, procedures shall be followed to eliminate or minimize construction worker or general public exposure to heavy hydrocarbons and other potential contaminants in soil and groundwater, and potential ACMs within potential demolished materials. Procedures shall include efforts to control fugitive dust, contain and cover excavation debris piles, appropriate laboratory analysis of soil for waste characterization, segregation of contaminated soil from uncontaminated soil, and demolished materials. The applicable regulations associated with excavation, removal, transportation, and disposal of contaminated soil shall be followed (e.g., tarping of trucks and waste manifesting). — Mitigation Measure HYD-1a. Prior to the issuance of any construction/grading permit and/or the commencement of any clearing, grading, or excavation, the Applicant shall submit a Notice of Intent (NOI) for discharge from the Project site to the California SWRCB Storm Water Permit Unit. — Mitigation Measure HYD-1b. The Applicant shall require the building contractor to prepare and submit a Storm Water Pollution Prevention Plan (SWPPP) to the City 45 days prior to the start of work for approval. The contractor is responsible for understanding the State General Permit and instituting the SWPPP during construction. A SWPPP for site construction shall be developed prior to the initiation of grading and implemented for all construction activity on the Project site in excess of one (1) acre, or where the area of disturbance is less than one acre but is part of the Project’s plan of development that in total disturbs one or more acres. The SWPPP shall identify PH 1 - 142 potential pollutant sources that may affect the quality of discharges to storm water, and shall include specific BMPs to control the discharge of material from the site. The following BMP methods shall include, but would not be limited to: • Temporary detention basins, straw bales, sand bagging, mulching, erosion control blankets, silt fencing, and soil stabilizers shall be used. • Soil stockpiles and graded slopes shall be covered after 14 days of inactivity and 24 hours prior to and during inclement weather conditions. • Fiber rolls shall be placed along the top of exposed slopes and at the toes of graded areas to reduce surface soil movement, as necessary. • A routine monitoring plan shall be implemented to ensure success of all onsite erosion and sedimentation control measures. • Dust control measures shall be implemented to ensure success of all onsite activities to control fugitive dust. • Streets surrounding the Project site shall be cleaned daily or as necessary. • BMPs shall be strictly followed to prevent spills and discharges of pollutants onsite (material and container storage, proper trash disposal, construction entrances, etc.). • Sandbags, or other equivalent techniques, shall be utilized along graded areas to prevent siltation transport to the surrounding areas. • Additional BMPs shall be implemented for any fuel storage or fuel handling that could occur onsite during construction. The SWPPP must be prepared in accordance with the guidelines adopted by the SWRCB. The SWPPP shall be submitted to the City along with grading/development plans for review and approval. The Applicant shall file a Notice of Completion for construction of the development, identifying that pollution sources were controlled during the construction of the Project and implementing a closure SWPPP for the site. — Mitigation Measure HYD-1c. Installation of the eight drainage outlets within Tank Farm Creek shall occur within the dry season (May through October). — Mitigation Measure HYD-4a. A site-specific, geotechnical investigation shall be completed in areas proposed for HDD. Preliminary geotechnical borings shall be drilled to verify that the proposed depth of HDD is appropriate to avoid frac-outs (i.e., the depth of finest grained sediments and least fractures) and to determine appropriate HDD methods (i.e., appropriate drilling mud mixtures for specific types of sediments). The investigation shall include results from at least three borings, a geologic cross section, a discussion of drilling conditions, and a history and recommendations to prevent frac-outs. — Mitigation Measure HYD-4b. A Frac-out Contingency Plan shall be completed and shall include measures for training, monitoring, worst case scenario evaluation, equipment and mate rials, agency notification and prevention, containment, clean up, and disposal of released drilling muds. Preventative measures would include incorporation of the recommendations of the geotechnical investigation to determine the most appropriate HDD depth and drilling mud mixture. In accordance with the RWQCB, HDD operations shall occur for non-perennial streams such as Tank Farm Creek only when the stream is dry, and only during daylight hours. In addition, drilling pressures shall be closely monitored so that they do not exceed those needed to penetrate the formation. Monitoring by a minimum of two City-approved monitors (located both upstream and downstream, who will move enough to monitor the entire area of operations) shall occur throughout drilling operations to ensure swift response in the event of a frac-out, while containment shall be accomplished through construction of temporary berms/dikes and use of silt PH 1 - 143 fences, straw bales, absorbent pads, straw wattles, and plastic sheeting. Clean up shall be accomplished with plastic pails, shovels, portable pumps, and vacuum trucks. The Frac -out Contingency Plan shall be submitted to the City, and the RWQCB shall review the plan. — Mitigation Measure NO-1a. Except for emergency repair of public service utilities, or where an exception is issued by the Community Development Department, no operation of tools or equipment used in construction, drilling, repair, alteration, or demolition work shall occur daily between the hours of 7:00 PM and 7:00 AM, or any time on Sundays, holidays, or after sunset, such that the sound creates a noise disturbance that exceeds 75 dBA for single-family residential, 80 dBA for multi-family residential, and 85 dBA for mixed residential/commercial land uses, as shown in Table 3.9-8 and Table 3.9-9, across a residential or commercial property line. — Mitigation Measure NO-1b. For all construction activity at the Project site, noise attenuation techniques shall be employed to ensure that noise levels are maintained within levels allowed by the City of San Luis Obispo Municipal Code, Title 9, Chapter 9.12 (Noise Control). Such techniques shall include: • Sound blankets on noise-generating equipment. • Stationary construction equipment that generates noise levels above 65 dBA at the Project boundaries shall be shielded with a barrier that meets a sound transmission class (a rating of how well noise barriers attenuate sound) of 25. • All diesel equipment shall be operated with closed engine doors and shall be equipped with factory-recommended mufflers. • The movement of construction-related vehicles, with the exception of passenger vehicles, along roadways adjacent to sensitive receptors shall be limited to the hours between 7:00 AM and 7:00 PM, Monday through Saturday. No movement of heavy equipment shall occur on Sundays or official holidays (e.g., Thanksgiving, Labor Day). • Temporary sound barriers shall be constructed between construction sites and affected uses. — Mitigation Measure NO-1c. The contractor shall inform residents and business operators at properties within 300 feet of the Project site of proposed construction timelines and noise complaint procedures to minimize potential annoyance related to construction noise. Noise - related complaints shall be directed to the City’s Community Development Department. — Mitigation Measure TRANS-1. The Applicant shall prepare a Construction Transportation Management Plan for all phases of the proposed Project for review and approval by the City prior to issuance of grading or building permits to address and manage traffic during construction. The Plan shall be designed to: • Prevent traffic impacts on the surrounding roadway network; • Restrict construction staging to within the Project site; • Minimize parking impacts both to public parking and access to private parking to the greatest extent practicable; • Ensure safety for both those construction vehicles and works and the surrounding community; and • Prevent substantial truck traffic through residential neighborhoods. PH 1 - 144 • The Construction Transportation Management Plan shall be subject to review and approval by the Public Works Director to ensure that the Plan has been designed in accordance with this mitigation measure. This review shall occur prior to issuance of grading or building permits. It shall, at a minimum, include the following: Ongoing Requirements throughout the Duration of Construction: • A detailed Construction Transportation Management Plan for work zones shall be maintained. At a minimum, this shall include parking and travel lane configurations; warning, regulatory, guide, and directional signage; and area sidewalks, bicycle lanes, and parking lanes. The Plan shall include specific information regarding the Project’s construction activities that may disrupt normal pedestrian and traffic flow and the measures to address these disruptions. Such Plan shall be reviewed and approved by the Community Development Department and implemented in accordance with this approval. • Work within the public right-of-way shall be reviewed and approved by the City on a case by case basis based on the magnitude and type of construction activity. Generally, work shall be performed between 8:30 AM and 4:00 PM. This work includes dirt hauling and construction material delivery. Work within the public right-of-way outside of these hours shall only be allowed after the issuance of an after-hours construction permit administered by the Building and Safety Division. Additionally, restrictions may be put in place by Public Works Department depending on particular construction activities and conditions. • Streets and equipment shall be cleaned in accordance with established Public Works requirements. • Trucks shall only travel on a City-approved construction route. Limited queuing may occur on the construction site itself. • Materials and equipment shall be minimally visible to the public; the preferred location for materials is to be onsite, with a minimum amount of materials within a work area in the public right-of-way, subject to a current Use of Public Property Permit. • Provision of off-street parking for construction workers, which may include the use of a remote location with shuttle transport to the site, if determined necessary by the City. Project Coordination Elements That Shall Be Implemented Prior to Commencement of Construction: • The traveling public shall be advised of impending construction activities that may substantially affect key roadways or other facilities (e.g., information signs, portable message signs, media listing/notification, and implementation of an approved Construction Impact Mitigation Plan). • A Use of Public Property Permit, Excavation Permit, Sewer Permit, or Oversize Load Permit, as well as any Caltrans permits required for any construction work requiring encroachment into public rights-of-way, detours, or any other work within the public right-of-way shall be obtained. • Timely notification of construction schedules shall be provided to all affected agencies (e.g., Police Department, Fire Department, Public Works Department, and Community Development Department) and to all owners and residential and commercial tenants of property within a radius of ¼ mile. PH 1 - 145 • Construction work shall be coordinated with affected agencies in advance of start of work. Approvals may take up to two weeks per each submittal. • Public Works Department approval of any haul routes for construction materials and equipment deliveries shall be obtained. b. Finding: The City finds that changes or alterations have been required in, or incorporated into, the project to avoid or lessen to a less than significant level the significant environmental effects identified in the Final EIR. Implementation of mitigation measure MM UT-2, as well as construction-related mitigation measures for air quality, biological resources, cultural resources, hazards and hazardous materials, hydrology and water quality, noise, and transportation and traffic, would ensure that installation of utility lines does not result in the exceedance of environmental thresholds. SECTION 7. SIGNIFICANT UNAVOIDABLE ENVIRONMENTAL EFFECTS OF THE PROPOSED MITIGATED PROJECT ALTERNATIVE FOR WHICH SUFFICIENT MITIGATION IS NOT AVAILABLE The findings below are for impacts that would result in potentially significant effects on the natural or human environment that could not be lessened to a less than significant level through changes or alternations in the project or implementation of mitigation measures. To approve a project resulting in significant and unavoidable impacts, the CEQA Guidelines require decision makers to make findings of overriding consideration that "... specific legal, technological, economic, social, or other considerations make infeasible the mitigation measures or alternatives identified in the EIR...". This section presents the project’s significant environmental impacts and feasible mitigation measures. Section 15091 of the State CEQA Guidelines (14 California Code of Regulations [CCR]) and Section 21081 of the Public Resources Code require a lead agency to make findings for each significant environmental impact disclosed in an EIR. Specifically, for each significant impact, the lead agency must find that: • Changes or alterations have been required in, or incorporated into, the project to avoid or substantially lessen the significant environmental effects identified in the Final EIR; • Such changes or alterations are within the responsibility and jurisdiction of another public agency and not the agency making the finding. Such changes have been adopted by such other agency or can and should be adopted by that agency; or • Specific economic, social, legal, technological, or other considerations, including provision of employment opportunities for highly trained workers, make the mitigation measures or project alternatives identified in the Final EIR infeasible. Each of these findings must be supported by substantial evidence in the administrative record. This section identifies impacts that can be reduced, but not to a less -than-significant level, through the incorporation of feasible mitigation measures into the project, and which therefore, remain significant and unavoidable, as identified in the Final EIR. The impacts identified in this section are considered in the same sequence in which they appear in the EIR. Where adoption of feasible mitigation measures is not effective in avoiding an impact or reducing it to a less-than-significant level, the feasibility of adopting alternatives to the proposed project is considered in Section 7 of this document. PH 1 - 146 A. AGRICULTURAL RESOURCES 1. Impact AG-1: The proposed Project would impact agricultural land within the Project site and offsite Buckley Road Extension with the direct conversion of historically cultivated farmland to urban development. (Refer to page 5-45 of the Final EIR.) a. Mitigation: The incorporation of the following mitigation measure is required to ensure the Project’s consistency with policies of the City General Plan Land Use Element and Conservation and Open Space Element, which require the acquisition and conservation of an equivalent area of prime farmland soils offsite that would be converted from non-agricultural use with development of the Project site: — Mitigation Measure AG-1. The Applicant shall establish an offsite agricultural conservation easement or pay in-lieu fees to a City designated fund dedicated to acquiring and preserving agricultural land. While the City’s priority is that such agricultural land be acquired in the closest feasible proximity to the City, mitigation may be implemented using one of the following options: m. The Applicant shall ensure permanent protection of farmland of equal area and quality, which does not already have permanent protection, within the City of San Luis Obispo, consistent with City Policy 8.6.3(C) and AASP Policy 3.2.18. The Applicant shall identify and purchase or place in a conservation easement a parcel of land of at least 71 acres of equal quality farmland, or provide in-lieu fees to allow the City to complete such an acquisition. n. If no suitable parcel exists within the City limits, the Applicant shall identify and purchase or place in a conservation easement a parcel of farmland, of equal quantity and quality, within the City’s Sphere of Influence that is threatened by development of nonagricultural uses. The parcel shall be placed in an a gricultural conservation easement (refer to Figure 2 in the Land Use Element for City Sphere of Influence). The Applicant may also provide in-lieu fees to allow the City to complete such an acquisition. o. In the event that no suitable land is available within the City limits or City’s Sphere of Influence, the Applicant shall identify and purchase or place in a conservation easement a parcel of farmland, of equal quantity and quality, within the City’s urban reserve or greenbelt that is threatened by development of nonagricultural uses. This parcel shall be placed in an agricultural conservation easement (refer to Figure 1 in the Land Use Element for City Planning Area). The Applicant may also provide in-lieu fees to allow the City to complete such an acquisition. p. In the event that no suitable land for an agricultural conservation easement is available for purchase within the City limits, the City’s Sphere of Influence, or urban reserve or greenbelt Planning Area, the Applicant shall identify and purchase or place in a conservation easement a parcel of farmland, of equal quantity and quality, within County lands (e.g., agricultural lands north and south of Buckley Road) that is considered to be threatened by the conversion to nonagricultural use. This parcel shall be placed in an agricultural conservation easement. The Applicant may also provide in-lieu fees to allow the City to complete such an acquisition. The Applicant shall demonstrate that such land is as close in proximity to the City as feasible. b. Finding: The City finds that while implementation of Mitigation Measure AG-1 would ensure the MPA is consistent with adopted policies of the City General Plan, the irreversible conversion or loss of prime farmland soils for non-agricultural use through development of the Project would PH 1 - 147 result in significant effects to agricultural resources, as these lost soils could not be replaced or recreated. Therefore, impacts would remain significant and unavoidable. A statement of overriding considerations for this impact is made in Section 9. 2. Cumulative Agricultural Resources Impacts: The MPA, and other cumulative development, is subject to adopted policies of the City General Plan and AASP relating to the protection and conservation of agricultural resources. However, cumulative development would continue to result in the irreversible loss of agricultural land and important agricultural soils. Cumulative effects under the MPA would be similar to those of the Project as described on page 3.2-28 of the Final EIR. a. Mitigation: No other feasible mitigation is available that would result in the replacement or recreation of prime farmland soils and other important agricultural resources. b. Finding: The City finds that cumulative development would continue to result in the irreversible loss or conversion of agricultural resources. However, no feasible mitigation is available for cumulative impacts to agricultural resources, and impacts would remain significant and unavoidable. A statement of overriding considerations for this impact is made in Section 9. B. AIR QUALITY AND GREENHOUSE GAS EMISSIONS 1. Impact AQ-1: The MPA would result in potentially significant construction-related air quality impacts from dust and air pollutant emissions generated by grading and construction equipment operation. (Refer to page 3.3-22 of the Final EIR.) a. Mitigation: The following mitigation measures are required by the San Luis Obispo APCD to reduce project construction ROG and NOX and DPM and recommended to improve consistency with the Clean Air Plan (CAP). — Mitigation Measure AQ-1a. A Construction Activity Management Plan (CAMP) shall be included as part of Project grading and building plans and shall be submitted to the APCD and to the City for review and approval prior to the start of construction. In addition, the contractor or builder shall designate a person or persons to monitor the dust control program and to order increased watering, as necessary, to prevent transport of dust offsite. Their duties shall include holidays and weekend periods when work may not be in progress. The name and telephone of such persons shall be provided to the APCD prior to land use clearance for map recordation and grading. The plan shall include but not be limited to the following elements: 8. A Dust Control Management Plan that encompasses the following dust control measures: • Reduce the amount of disturbed area where possible; • Water trucks or sprinkler trucks shall be used during construction to keep all areas of vehicle movement damp enough to prevent dust from leaving the site. At a minimum, this would require twice-daily applications. All dirt stock pile areas should be sprayed daily as needed. Increased watering frequency would be required when wind speeds exceed 15 miles per hour (mph). Reclaimed water or the onsite water well (non-potable) shall be used when possible. The contractor or builder shall consider the use of an APCD-approved dust suppressant where feasible to reduce the amount of water used for dust control; • All dirt stock-pile areas shall be sprayed daily as needed; PH 1 - 148 • Permanent dust control measures identified in the approved Project revegetation and landscape plans should be implemented as soon as possible following completion of any soil disturbing activities; • Exposed ground areas that are planned to be reworked at dates greater than one month after initial grading shall be sown with a fast germinating native grass seed and watered until vegetation is established; • All disturbed soil areas not subject to revegetation shall be stabilized using approved chemical soil binders, jute netting, or other methods approved in advance by the APCD; • All roadways, driveways, sidewalks, etc. to be paved should be completed as soon as possible. In addition, building pads should be laid as soon as possible after grading unless seeding or soil binders are used; • Vehicle speed for all construction vehicles shall not exceed 15 mph on any unpaved surface at the construction site; • All trucks hauling dirt, sand, soil, or other loose materials are to be covered or shall maintain at least two feet of freeboard in accordance with California Vehicle Code Section 23114; • Install wheel washers where vehicles enter and exit unpaved roads onto streets, or wash off trucks and equipment leaving the site; • Sweep streets at the end of each day if visible soil material is carried onto adjacent paved roads. Water sweepers with reclaimed water should be used where feasible; • All of these fugitive dust mitigation measures shall be shown on grading and building plans; and • The contractor or builder shall designate a person or persons to monitor the fugitive dust control emissions and enhance the implementation of the measures as necessary to minimize dust complaints, reduce visible emissions below 20 percent opacity, and to prevent transport of dust offsite. Their duties shall include holiday and weekend periods when work may not be in progress. The name and telephone number of such persons shall be provided to the APCD Compliance Division prior to the start of any grading, earthwork or demolition. 9. Implementation of the following BACT for diesel-fueled construction equipment, where feasible. The BACT measures shall include: • Use of Tier 3 and Tier 4 off-road equipment and 2010 on-road compliant engines; • Repowering equipment with the cleanest engines available; and • Installing California Verified Diesel Emission Control Strategies. 10. Implementation of the following standard air quality measures to minimize diesel emissions: • Maintain all construction equipment in proper tune according to manufacturer’s specifications; • Fuel all offroad and portable diesel powered equipment with CARB-certified motor vehicle diesel fuel (non-taxed version suitable for use off-road). • Use on-road heavy-duty trucks that meet the CARB’s 2007 or cleaner certification standard for on-road heavy-duty diesel engines and comply with the State On-Road Regulation; PH 1 - 149 • Construction or trucking companies with fleets that do not have engines in their fleet that meet the engine standards identified in the above two measures (e.g. captive or NOx exempt area fleets) may be eligible by proving alternative compliance; • On- and off-road diesel equipment shall not be allowed to idle for more than five minutes. Signs shall be posted in the designated queuing areas to remind drivers and operators of the five-minute idling limit; • Diesel idling within 1,000 feet of sensitive receptors in not permitted; • Staging and queuing areas shall not be located within 1,000 feet of sensitive receptors; • Electrify equipment when feasible; • Substitute gasoline-powered in place of diesel-powered equipment, where feasible; and, • Use alternatively fueled construction equipment onsite where feasible, such as compressed natural gas (CNG), liquefied natural gas (LNG), propane or biodiesel. 11. Tabulation of on- and off-road construction equipment (age, horse-power, and miles and/or hours of operation); 12. Schedule construction truck trips during non-peak hours (as determined by the Public Works Director) to reduce peak hour emissions; 13. Limit the length of the construction work-day period; and 14. Phase construction activities, if appropriate. — Mitigation Measure AQ-1b. To reduce ROG and NOx levels during the architectural coating phase, low or no VOC-emission paint shall be used with levels of 50 g/L or less, such as Benjamin Moore Natura Paint (Odorless, Zero VOC Paint). The Applicant or builder shall implement additional measures to reduce daily and quarterly ROG and NOx levels related to architectural coatings to the extent determined feasible by the City and APCD, such as extending coating applications by limiting daily coating activities. — Mitigation Measure AQ-1c. In order to further reduce Project air quality impacts, an offsite mitigation strategy shall be developed and agreed upon by the developer, City, and APCD at least three months prior to the issuance of grading permits, including added funding for circulation improvements and transit operations. Such funding may be in the form of cash payment or included as part of the obligation of the Community Facilities District. The Applicant shall provide this funding at least two months prior to the start of construction to help facilitate emission offsets that are as real-time as possible. Offsite mitigation strategies shall include one or more of the following: • Replace/repower San Luis Obispo Regional Transit Authority (SLORTA) transit buses; • Purchase VDECs for transit buses; and • Fund expansion of existing SLORTA transit services. b. Finding: The City finds that specific economic, social, legal, technological, or other considerations make the mitigation measures or project alternatives identified in the Final EIR infeasible. Mitigation Measures AQ-1a through 1c are feasible and have been adopted. However, no additional mitigation is available that would reduce the project’s anticipated construction emissions below established APCD Tier 1 Quarterly Thresholds. Therefore, impacts related to PH 1 - 150 project construction emissions are significant and unavoidable. A statement of overriding considerations for this impact is made in Section 9. 2. Impact AQ-2. The MPA would result in significant long-term operation-related air quality impacts generated by area, energy, and mobile emissions. (Refer to page 5-48 of the Final EIR.) a. Mitigation: The following mitigation measures are required by the San Luis Obispo APCD to reduce project operational emissions. — Mitigation Measure AQ-2a. The Applicant shall include the following: • Water Conservation Strategy: The Applicant shall install fixtures with the EPA WaterSense Label, achieving 20 percent reduction indoor. The Project shall install drip, micro, or fixed spray irrigation on all plants other than turf, also including the EPA WaterSense Label, achieving 15 percent reduction in outdoor landscaping. • Solid Waste: The Applicant shall institute recycling and composting services to achieve a 15 percent reduction in waste disposal, and use waste efficient landscaping. • Fugitive Dust: The Applicant shall replace ground cover of at least 70 percent of a rea disturbed in accordance with CARB Rule 403. • Energy Conservation Strategy: The Applicant shall install additional solar and alternative energy features (e.g., solar panels on commercial buildings; solar canopies over commercial parking areas). — Mitigation Measure AQ-2b. Consistent with standard mitigation measures set forth by the APCD, Projects generating more than 50 lbs/day of combined ROG + NOx or PM10 shall implement all feasible measures within Table 3-5 of the Air Quality Handbook. b. Finding: The City finds that specific economic, social, legal, technological, or other considerations make the mitigation measures or project alternatives identified in the Final EIR infeasible. Mitigation Measures AQ-2a and 2b are feasible and have been adopted. However, no additional mitigation is available that would reduce the project’s anticipated operational long- term emissions below established APCD maximum daily emissions thresholds. Therefore, impacts related to project construction emissions are significa nt and unavoidable. A statement of overriding considerations for this impact is made in Section 9. 3. Impact AQ-5. The MPA is potentially inconsistent with the County of San Luis Obispo APCD’s 2001 Clean Air Plan. (Refer to page 5-52 of the Final EIR.) a. Mitigation: The following mitigation measures are required to improve consistency with the CAP. — Mitigation Measure AQ-2b. Consistent with standard mitigation measures set forth by the APCD, Projects generating more than 50 lbs/day of combined ROG + NOx or PM10 shall implement all feasible measures within Table 3-5 of the Air Quality Handbook. — Mitigation Measure TRANS-12. The Applicant shall coordinate with SLO Transit to ensure that adequate service would be provide to the two proposed bus stops and Project area. The bus stops shall be constructed by the Applicant within the respective phase’s development area. To assure adequate service is provided to the two new bus stops onsite, the Applicant shall pay for and install a fair share to fund any physical improvements needed to accommodate future service to PH 1 - 151 the site. In addition, the proposed transit service onsite shall meet standards stated in Policy 3.1.6, Service Standards. b. Finding: The City finds that specific economic, social, legal, technological, or other considerations make the mitigation measures or project alternatives identified in the Final EIR infeasible. Mitigation Measure AQ-2b and TRANS-12 are feasible and has been adopted. However, mitigation is not available that would reduce projected population growth such that the project’s increase in vehicle trips rate would be consistent with overall land use planning principles contained in the 2001 CAP. Therefore, impacts related to consistency with the 2001 CAP would remain significant and unavoidable. A statement of overriding considerations for this impact is made in Section 9. 4. Cumulative Air Quality Impacts: As analyzed in the LUCE Update EIR, full buildout under the LUCE would not be consistent with the 2001 Clean Air Plan. Mitigation Measure AQ-2b and Mitigation Measure TRANS-12 would reduce the project’s contribution to this cumulative impact to the maximum extent feasible. However, no additional mitigation is available to address cumulative air quality impacts. As such, cumulative impacts on air quality would remain significant and unavoidable. (Refer to page 3.3-50 of the Final EIR.) a. Mitigation: The following mitigation measures would be required to reduce the project’s cumulative impact to the maximum extent feasible. — Mitigation Measure AQ-2b. Consistent with standard mitigation measures set forth by the APCD, Projects generating more than 50 lbs/day of combined ROG + NOx or PM10 shall implement all feasible measures within Table 3-5 of the Air Quality Handbook. — Mitigation Measure TRANS-12. The Applicant shall coordinate with SLO Transit to ensure that adequate service would be provide to the two proposed bus stops and Project area. The bus stops shall be constructed by the Applicant within the respective phase’s development area. To assure adequate service is provided to the two new bus stops onsite, the Applicant shall pay for and install a fair share to fund any physical improvements needed to accommodate future service to the site. In addition, the proposed transit service onsite shall meet standards stated in Policy 3.1.6, Service Standards. b. Finding: The City finds that specific economic, social, legal, technological, or other considerations make the mitigation measures or project alternatives identified in the Final EIR infeasible. Mitigation Measure AQ-2b and Mitigation Measure TRANS-12 are feasible and has been adopted. However, no additional feasible mitigation is available for cumulative air quality impacts, which would remain significant and unavoidable. A statement of overriding considerations for this impact is made in Section 9. C. NOISE 1. Impact NO-1: Short-term construction activities would generate noise levels that would exceed thresholds established in the City’s General Plan Noise Element and Noise Guidebook, with potential impacts to sensitive receptors. (Refer to page 5-65 of the Final EIR.) a. Mitigation: The following mitigation measures are required to reduce project construction -related noise to the maximum extent feasible: PH 1 - 152 — Mitigation Measure NO-1a. Except for emergency repair of public service utilities, or where an exception is issued by the Community Development Department, no operation of tools or equipment used in construction, drilling, repair, alteration, or demolition work shall occur daily between the hours of 7:00 PM and 7:00 AM, or any time on Sundays, holidays, or after sunset, such that the sound creates a noise disturbance that exceeds 75 dBA for single-family residential, 80 dBA for multi-family residential, and 85 dBA for mixed residential/commercial land uses, as shown in Table 3.9-8 and Table 3.9-9, across a residential or commercial property line. — Mitigation Measure NO-1b. For all construction activity at the Project site, noise attenuation techniques shall be employed to ensure that noise levels are maintained within levels allowed by the City of San Luis Obispo Municipal Code, Title 9, Chapter 9.12 (Noise Control). Such techniques shall include: • Sound blankets on noise-generating equipment. • Stationary construction equipment that generates noise levels above 65 dBA at the Project boundaries shall be shielded with a barrier that meets a sound transmission class (a rating of how well noise barriers attenuate sound) of 25. • All diesel equipment shall be operated with closed engine doors and shall be equipped with factory-recommended mufflers. • The movement of construction-related vehicles, with the exception of passenger vehicles, along roadways adjacent to sensitive receptors shall be limited to the hours between 7:00 AM and 7:00 PM, Monday through Saturday. No movement of heavy equipment shall occur on Sundays or official holidays (e.g., Thanksgiving, Labor Day). • Temporary sound barriers shall be constructed between construction sites and affected uses. — Mitigation Measure NO-1c. The contractor shall inform residents and business operators at properties within 300 feet of the Project site of proposed construction timelines and noise complaint procedures to minimize potential annoyance related to construction noise. Noise - related complaints shall be directed to the City’s Community Development Department. b. Finding: The City finds that specific economic, social, legal, technological, or other considerations make the mitigation measures or project alternatives identified in the Final EIR infeasible. Mitigation Measures NO-1a through NO-1c are feasible and have been adopted. Available mitigation would not reduce periodic construction-noise below the applicable City standards over the 10-year MPA construction period. Therefore, temporary noise impacts associated with on-site construction activity would be significant and unavoidable. A statement of overriding considerations for this impact is made in Section 9. D. TRANSPORTATION AND TRAFFIC 1. Impact TRANS-5: MPA-generated traffic would cause increase delays and cause exceedance of intersection capacity at the Buckley Road/SR 227 intersection in both the AM and PM peak hours. (Refer to page 5-72 of the Final EIR.) a. Mitigation: The following mitigation measure is required to reduce project impacts to traffic operations at the Buckley Road/SR 227 intersection to the maximum extent feasible. PH 1 - 153 — Mitigation Measure TRANS-5. The Applicant shall pay a pro-rata fair share fee to fund the installation a roundabout at the Buckley Road/SR 227 intersection as identified in the SLOCOG SR 227 Operations Study. The City shall collect the fair share fee and coordinate payment of Project fair share fees to help fund improvements with the County. Alternatively, the City should consider an amendment of the AASP impact fee program to establish a new areawide fee to help fund improvements to the intersection to offset cumulative development impacts. If an amended AASP fee is created by the City it will suffice as appropriate mitigation for the Project’s participation in these improvements. b. Finding: The City finds that specific economic, social, legal, technological, or other considerations make the mitigation measures or project alternatives identified in the Final EIR infeasible. Mitigation Measure TRANS-5 is feasible and has been adopted. However, because improvements to this intersection have not yet been funded or planned, the MPA would continue to contribute to exceedance of thresholds at this intersection until such improvements are completed. A statement of overriding considerations for this impact is made in Section 9. 2. Cumulative Impact TRANS-13. Under near-term plus Project conditions, MPA-generated traffic would cause contribute to delays and exceedance of storage capacities at Buckley/SR 227. The Project would also contribute to exceedance of storage capacities along Los Osos Valley Road/South Higuera Street and contribute to road segment congestion; however, impacts to Los Osos Valley Road would be mitigated to a less than significant level. (Refer to page 5-74 of the Final EIR.) a. Mitigation: The following mitigation measure is required to reduce project impacts to the maximum extent feasible. — Mitigation Measure TRANS-5. The Applicant shall pay a pro-rata fair share fee to fund the installation a roundabout at the Buckley Road/SR 227 intersection as identified in the SLOCOG SR 227 Operations Study. The City shall collect the fair share fee and coordinate payment of Project fair share fees to help fund improvements with the County. Alternatively, the City should consider an amendment of the AASP impact fee program to establish a new areawide fee to help fund improvements to the intersection to offset cumulative development impacts. If an amended AASP fee is created by the City it will suffice as appropriate mitigation for the Project’s participation in these improvements. — Mitigation Measure TRANS-13. The City shall amend the Citywide TIF to include a fee program for the installation of a second southbound right-turn lane at the Los Osos Valley Road/South Higuera Street intersection, or create a separate mitigation fee for this purpose. The Applicant shall pay its fair share of the improvement costs through the payment of the Citywide TIF of the ad hoc mitigation fees, as appropriate, to the City prior to issuance of building permits. b. Findings: The City finds that specific economic, social, legal, technological, or other considerations make the mitigation measures or project alternatives identified in the Final EIR infeasible. Mitigation Measure TRANS-5 and TRANS-13 are feasible and have been adopted. However, because improvements to Buckley Road/SR 227 Intersection have not yet been funded or planned, the project would continue to contribute to exceedance of thresholds at this intersection until such improvements are completed. A statement of overriding considerations for this impact is made in Section 9. PH 1 - 154 SECTION 8. FINDINGS FOR ALTERNATIVES TO THE PROPOSED MITIGATED PROJECT ALTERNATIVE A. INTRODUCTION As identified in Section 7 of this document, the proposed project will cause the following significant and unavoidable environmental impacts to occur: • Impact AG-1: Irreversible conversion of prime farmland soils • Cumulative Agricultural Resources Impacts • Impact AQ-1: Exceedance of APCD construction-emissions thresholds • Impact AQ-2: Exceedance of APCD operational-emissions thresholds • Impact AQ-5: Inconsistency with the 2001 CAP • Cumulative Air Quality Impacts: Cumulative inconsistencies in the 2001 CAP from buildout of the LUCE • Impact NO-1: Unacceptable short-term construction noise • Impact TRANS-5: Exceedance of capacity at Buckley Road/SR 227 intersection • Cumulative Impact TRANS-13: Exceedance of capacity at Buckley Road/SR 227 intersection under Cumulative conditions Because the proposed project will cause significant and unavoidable environmental impacts to occur as identified above, the City must consider the feasibility of any environmentally superior alternatives to the project, as proposed. The City must evaluate whether one or more of these alternatives could substantially lessen or avoid the unavoidable significant environmental effects. As such, the environmental superiority and feasibility of each alternative to the project is considered in this section. Specifically, this section evaluates the effectiveness of these alternatives in reducing the significant and unavoidable impacts of the proposed project. B. DESCRIPTION OF THE ALTERNATIVES The Final EIR for the project evaluates the following three alternatives to the MPA: (1) the original Proposed Project (2); a No Project Alternative, which could result in one of two scenarios; and (3) a Residential Plus Business Park Land Use Alternative. 1. Originally Proposed Project: Under the originally proposed project, which is the basis of the Project Description in the Final EIR, the Avila Ranch Development Plan dated December 18, 2015 would be adopted, including an amendment to the AASP, a rezone, and related actions to permit a mix of residential uses (68.23 acres), neighborhood commercial (3.34 acres), and open space/park uses (71.30 acres) with construction of 720 units and 15,000 sf commercial space. In addition the Project would include realignment of the North-South Segment of Tank Farm Creek, burial of 600 feet of the northern creek segment, restoration of disturbed areas, and enhancement of existing retained habitats. Key drainage improvements would include installation of a culvert through the existing 15- to 20-foot high berm along the Project site/Chevron Tank Farm property boundary to convey runoff water via Tank Farm Creek to San Luis Obispo Creek. 2. Alternative 1: No Project Alternative. As required by CEQA, this EIR evaluates the environmental consequences of not proceeding with the project. This alternative assumes that the Avila Ranch PH 1 - 155 Development Plan is not adopted and that none of the proposed entitlements are implemented. This alternative could result in one of two scenarios: a No Development scenario (Alternative 1A); and, a General Plan Development Alternative (Alternative 1B). Under the No Project Alternative A, ongoing agricultural production would continue, with associated water use, application of pesticides and herbicides and other ongoing impacts (e.g., dust generation). Tank Farm Creek would not be restored and no substantial new source of new automobile trips would be generated with associated impacts to congestion, air pollutant and GHG emissions. Development of the site would not contribute to the City’s housing supply, the potential for displacement of City residents would increase, and a greater jobs/housing imbalance would result. Under the No Project Alternative B, the project site would be developed in-line with the 2014 LUCE identification of the site as a Special Focus Area – SP-4, which contains guidelines for development of the site with between 500 and 700 residential units, along with requirements for the provision of 15,000 to 25,000 square feet of commercial space and retention of large areas of open space for agricultural buffers, provision of parks and creek restoration. The Buckley Road Extension, as envisioned in the updated LUCE, would occur under this alternative. Lastly, it is assumed the realignment of the North-South Creek Segment of Tank Farm Creek would not occur. 3. Alternative 3: Residential Plus Business Park Land Use Alternative. This alternative would combine development of the site as a residential area with development of the site as a business park with supporting commercial development. This alternative would provide for development of a business area, following the site’s current zoning for “BP-SP”, or Business Park – Specific Plan, encouraging employment growth in the eastern region of the Project site. The residential component of the alternative would allow up to 700 units, located in the western and northeastern regions of the Project site, contained within the Airport Land Use Plan Safety Areas S-1C and S-2. C. EFFECTIVENESS OF ALTERNATIVES IN AVOIDING SIGNIFICANT PROJECT IMPACTS This section evaluates the effectiveness of the alternatives in reducing the significant and unavoidable impacts of the proposed project. 1. Significant and Unavoidable Agricultural Resources Impacts. The MPA would result in significant and unavoidable project-level impacts related to the permanent conversion and loss of agricultural land and prime farmland soils. Under Alternative 1A, no development would occur and the site would continue to support agricultural uses; therefore, agricultural resource impacts would be substantially reduced. Under Alternative 1B, the Proposed Project, and Alternative 3, the site would be developed and would no longer be available to support agricultural uses, resulting in the conversion or loss of agricultural resources at a similar level; therefore resulting in similar significant and unavoidable impacts. 2. Significant and Unavoidable Air Quality Impacts. The MPA would result in significant and unavoidable project-level impacts related to construction emissions, operational emissions, and project-level and cumulative impacts related to Clean Air Plan (CAP) inconsistency. Under Alternative 1A, no development would occur, and no additional vehicle trips would be generated; therefore, air quality impacts would be substantially reduced. Under Alternative 1B, the site would be developed with residential and commercial uses at a slightly smaller scale than the proposed project, resulting in negligible decreases in construction and operational emission; therefore, air quality PH 1 - 156 impacts would remain significant and unavoidable. Under the Proposed Project, construction and operation would result in a similar level of air quality emissions; therefore, air quality impacts would remain significant and unavoidable. Alternative 3 would result in a similar amount of residential development and a greater amount of Neighborhood Commercial development in addition to development of a 120,000 square-foot Business Park, increasing vehicle trips to and from the site and associated vehicle miles traveled, resulting in greater amounts of air pollutant emissions; therefore resulting in greater significant and unavoidable impacts. 3. Significant and Unavoidable Noise Impacts. The MPA would result in significant and unavoidable impacts to the noise environment from the generation of construction-related noise which could exceed established noise standards periodically over the 10-year construction period. Under Alternative 1A, no development would occur and the site would continue to support agricultural uses and associated activities which generate a minor amount of noise which would be consistent with the rural agricultural nature of the surrounding vicinity; therefore, impacts from noise would be substantially reduced. Alternative 1B, the Proposed Project, and Alternative 3 would result in a similar degree of construction activity on the project site. Development of the site under these alternatives would result in similar construction schedules and associated noise-generated activities, and would therefore result in similar significant and unavoidable impacts associated with temporary construction activity. 4. Significant and Unavoidable Transportation Impacts. The MPA would result in project-level and cumulative transportation impacts associated with exceedances of capacity at the Buckley Road/SR 227 intersection. Under Alternative 1A, no development would occur; therefore, the significant and unavoidable transportation impacts would be avoided. Alternative 1B would result in a similar number of vehicle trips to and from the project site; therefore, this alternative would result in similar transportation impacts that would remain significant and unavoidable. The Proposed Project would include all mitigation measures identified in the EIR; however, this alternative would result in similar significant and unavoidable impacts to Buckley Road/SR 227 intersection. Therefore, impacts are less, but are considered similar and remain significant and unavoidable. Alternative 3 would result in a greater amount of development and a substantial number of estimated net new ADT which would greatly increase the potential significant and unavoidable impacts of the project; therefore, impacts to transportation under these alternatives would greater and would remain significant and unavoidable. D. ENVIRONMENTALLY SUPERIOR ALTERNATIVE AND FEASIBILITY OF PROJECT ALTERNATIVES 1. Finding: The original Proposed Project would result in similar physical environmental impacts when compared to the MPA. With a similar level of residential and commercial development, the original Proposed Project results in the same amount of disturbed area, resulting in similar physical impacts to the environment. However, the original Proposed Project includes realignment of Tank Farm Creek which would result in several significant impacts. The original Proposed Project would not reduce or avoid any of the significant and unavoidable impacts of the MPA; however, the original Proposed Project would meet all of the Project objectives. As a result, the City finds that the original Proposed Project is feasible, and would satisfy all of the Project objectives, but would result in g reater environmental impacts. PH 1 - 157 2. Finding: Alternative 1A (No Development) is environmentally superior overall, since no development would occur under the City jurisdiction. However, Alternative 1A fails to meet the City’s objectives for the Project area as well as any of the Project objectives. As a result, the City finds that Alternative 1 would be infeasible to implement. 3. Finding: Alternative 1B (General Plan Development) would result in similar physical environmental impacts when compared to the MPA. With a similar degree of residential and commercial development, this alternative could have environmental effects but would likely result in similar significant and unavoidable impacts associated with construction and operational air quality emissions, construction-related noise levels, and transportation and traffic. However, this alternative would not fully meet the objectives and goals of the Project. As a result, the City finds that Alternative 1B would not satisfy the Project objectives. 4. Finding: Alternative 2 (Mitigated Project Alternative) would result in similar physical environmental impacts when compared to the originally proposed Project. With a similar level of residential and commercial development, this alternative results in the same amount of disturbed area, resulting in similar physical impacts to the environment. However, this alternative would include several development features which would reduce or eliminate several significant impacts of the Project, including impacts resulting from realignment of Tank Farm Creek under the proposed Project, as the current alignment of Tank Farm Creek would remain in place under this alternative. Alternative 2 would not reduce or avoid any of the significant and unavoidable impacts of the proposed Project; however, Alternative 2 would meet all of the objectives of the Project and would reduce the degree of impacts associated with biological resources, hydrology and water quality, transportation and traffic, and utilities, but would. As a result, the City finds that Alternative 2 is feasible, environmentally superior to the proposed Project, and would satisfy all of the project objectives. 5. Finding: Alternative 3 (Residential Plus Business Park Land Use) would result in greater physical environmental impacts when compared to the MPA. With a greater amount of Neighborhood Commercial and Business Park development, this alternative results in a greater amount of disturbed area, resulting in greater physical impacts to the environment. However, this alternative would avoid or reduce potentially significant impacts to hydrologic and biological resources by retaining much of the existing alignment of Tank Farm Creek. Alternative 3 would not reduce or avoid any of the significant and unavoidable impacts of the project and would result in greater impacts to aesthetics and visual resources, air quality, cultural resources, hazards and hazardous materials, land use and planning, noise, transportation and traffic, and utilities. Alternative 3 would meet all of the objectives of the project and would reduce the degree of impacts associated with biological resources and hydrology and water quality. As a result, the City finds that Alternative 3 is environmentally superior to the Project, but is not feasible. PH 1 - 158 SECTION 9. STATEMENT OF OVERRIDING CONSIDERATIONS A. INTRODUCTION The Final EIR for the MPA identifies the following significant and unavoidable impacts of the MPA: 1. The MPA would result in the irreversible conversion and loss of prime farmland soils which could not be replaced or recreated. 2. The MPA, in addition to other cumulative projects within the City, would result in the irreversible loss of agricultural land and important agricultural soils. 3. Construction of the MPA would exceed established SLO APCD Tier 1 Quarterly thresholds for ROG, NOX, and DPM construction vehicle exhaust. 4. Operation of the MPA would exceed established SLO APCD thresholds for operational ROG, NOX, PM10, and DPM air pollutants. 5. The MPA would be inconsistent with the SLO APCD 2001 Clean Air Plan because it would result in an increase in projected population growth, resulting in an increase in vehicle trips and vehicle miles traveled, which would conflict with overall land use planning principles contained in the 2001 Clean Air Plan. 6. The MPA is inconsistent with the 2001 Clean Air Plan, which SLO APCD guidance states is a cumulative air quality impact. 7. Temporary construction activity would create noise that could exceed City of San Luis Obispo Municipal Code regulations, and mitigation may not be feasible to reduce the impact to less than the applicable threshold. 8. The MPA would result in the generation of new vehicle trips which would contribute to exceedance of storage capacity at the Buckley Road/SR 227 intersection during both the AM and PM peak hour. Mitigation is required to reduce the project contribution to exceedances at this intersection. However, Project traffic could be generated and result in exceedance of capacity at this intersection prior to the planning or installation of necessary intersection improvements. 9. Under Near-Term Cumulative conditions, the volume of traffic at the Buckley Road/SR 227 intersection would exceed storage capacities. Mitigation would reduce impacts the MPA contribution to exceedances at this intersection. However, exceedances could occur prior to the planning or installation of necessary intersection improvements and impacts would be significant and unavoidable. For projects which would result in significant environmental impacts that cannot be avoided, CEQA requires that the lead agency balance the benefits of these projects against the unavoidable environmental risks in determining whether to approve the projects. If the benefits of these projects outweigh the unavoidable impacts, those impacts may be considered acceptable (CEQA Guidelines Section 15093[a]). CEQA requires that, before adopting such projects, the public agency adopt a Statement of Overriding Considerations setting forth the reasons why the agency finds that the benefits of the project outweigh the significant environmental effects caused by the project. This statement is provided below. B. REQUIRED FINDINGS The City has incorporated all feasible mitigation measures into the Project. Although these measures will lessen the unavoidable impacts listed above, the measures will not fully avoid these impacts. PH 1 - 159 The City has also examined a reasonable range of alternatives to the project and has determined that Alternative 2 (Mitigated Project Alternative) is feasible, environmentally superior, and would satisfy the all of the Project objectives to the same or greater extent as the original Proposed Project. The MPA would reduce the effects of several of the significant impacts of the project and would achieve all of the City’s objectives for the project and considered feasible. The MPA is therefore considered to be environmentally superior to the proposed Project. Alternative 3 would allow a greater amount of development and physical environmental effects, resulting in greater impacts to aesthetics and visual resources, air quality, cultural resources, hazards and hazardous materials, land use and planning, noise, transportation and traffic, and utilities. However, Alternative 3 would achieve the City’s objectives for the Project, including establishment of a “linked” community with a variety of housing opportunities and a well-connected vehicle, bicyclist, and pedestrian network, as well as a number of amenities such as neighborhood parks and commercial goods and services that can serve the neighborhood. In preparing this Statement of Overriding Considerations, the City has balanced the benefits of the proposed project against its unavoidable environmental risks. For the reasons specified below, the City finds that the considerations below outweigh the proposed MPA’s unavoidable environmental risks. The City further finds that each of these findings is individually sufficient to support the approval of the MPA. A determination that one of more of these findings is not supported by substantial evidence shall not affect the validity of the remaining findings. 1. Provision of new Residential and Commercial Uses. The Avila Ranch Development Plan will develop a new residential neighborhood that fulfills a portion of the City’s unmet housing needs and that designates sufficient land for neighborhood serving commercial uses and recreational opportunities to provide for the convenience and enjoyment of area residents, consistent with City General Plan Land Use Element Policies 3.3.1, and 8.1.6 and Airport Area Specific Plan policy 7.10.1. 2. Provision of a Variety of Housing Types for all Income Levels. The Avila Ranch Development Plan provides a variety of housing types and costs to meet the needs of renters and buyers with a variety of income-levels, including inclusionary affordable housing for residents with moderate, low , and very-low income levels, consistent with General Plan Land Use Element Goal 2, Affordability. 3. Open Space and Agricultural Protection: Implementation of the Avila Ranch Development Plan would preserve approximately 27 acres of the site for irrigated agriculture under the MPA, and a total of 55.3 acres of land as open-space. 4. Protection and Restoration of Tank Farm Creek. The Avila Ranch Development Plan will protect and restore sensitive biological resources within Tank Farm Creek, improving the overall quality of this habitat over the long term. 5. Provision of Park and Recreational Facilities. The Avila Ranch Development Plan will provide a variety of park and recreational facilities for residents of the City, such as parks, trails, pathways and other recreational facilities, and passive recreational opportunities within open space, both by constructing facilities on site and providing needed funding for enhancement of existing offsite City park and recreational facilities. 6. Well-Planned Neighborhood Would Reduce Per-Capita Vehicle Trips: The Avila Ranch Development Plan would develop a new residential neighborhood to meet the City’s housing needs and that designates sufficient land for neighborhood serving commercial uses to reduce vehicle trips and provide for the convenience of area residents. In addition, the Avila Ranch Development Plan PH 1 - 160 encourages the use of bicycles and walking within the project site by including specific policies and development standards that will result in subdivision and building designs that facilitate bike use and pedestrian access and incorporating multiple classes of bike lanes which provide critical connections in the existing bicycle network and including bike and pedestrian paths through the parks and open space areas. 7. Provision of New Jobs: The MPA would create new construction-related and permanent jobs in the project area. Planned Neighborhood Commercial development would provide jobs in close proximity to housing, consistent with Community Goal 34 in the General Plan Land Use Element and Land Use Element Policy 1.5, which states that the gap between housing demand and supply should not increase. 8. Sales Tax: Development of Neighborhood Commercial development would contribute sales tax revenues that help fund needed City services. 9. Implementation of the General Plan: As required by the City General Plan, the Avila Ranch Development Plan contains policies and standards that will facilitate appropriate development of land, protection of open space, and provision of adequate public facilities consistent with the City’s recent LUCE update and the housing and transportation objectives. 10. Local Preference for Housing: Through its affordable housing plan, the project would include a preference for those who are employed in businesses that are located in geographic areas that are customarily included in the City’s annual jobs-housing balance analysis in its General Plan Status Report, which will not only have local economic and housing benefits, but by improving the local balance of housing and jobs will reduce commute distances, and thus reduce air emissions and address potential traffic impacts. 11. Owner Occupancy: Through its affordable housing plan, the project will require owner occupancy for many of the housing units, which will discourage outside speculative investment that tends to drive housing prices higher than the market would otherwise indicate. In this way, the project will help the local economy by keeping housing as affordable as possible for local employees, and encouraging them to remain within the community, which will help support and retain skilled employees for local businesses. Accordingly, the City finds that the MPA’s adverse, unavoidable environmental impacts are outweighed by these considerable benefits. Dated: ___________, 2017 Heidi Harmon Mayor, City of San Luis Obispo PH 1 - 161 Exhibit G Affordable & Workforce Housing Plan Affordable Housing Plan The Avila Ranch project will encourage long term housing affordability by including design and develop- ment strategies that serve to provide lower cost housing, by including a range of housing sizes and types that are not typically provided in the community, and by providing a greater number of lower income inclusionary units than required by the City Inclusionary Housing Ordinance. Since the price of houses over time is most closely related to the size of the dwelling unit, the size of the lot, and costs of mainte- nance, the project has concentrated on lowering the overall size of market rate dwelling units, and reduc- ing lot size for market rate units. Within each of the residential zones there will be dwelling unit sizes ranging from 550 square foot studios to 1,150 square foot family apartments in the R-4 area, to 2,500 square foot single family detached units in the R-1 development area. A predominant individual share of the project is in small lot single family R- 2 units (297 out of 720) and attached single family ownership and rental R-3 units (197 units out of 720). Consequently, the average size of the units across the development is approximately 1,525 square feet. Maintenance expenses, to the extent feasible, will be included in a Community Facilities District to reduce the necessity for Homeowner’s Associations, and the higher costs associated with that maintenance and governance structure. Landscape maintenance and cost of water and utilities will also be reduced because of the drought tolerant landscaping, smaller lots and other sustainable and cost reducing features. The City’s Housing Element provides incentives to develop housing in a denser pattern (R3/R4), and with smaller unit sizes to encourage affordability across the low, mod and workforce income ranges. These incentives include reduced inclusionary housing requirements for denser projects and for projects with lower dwelling unit square footages. Conversely, more inclusionary housing is required for projects with dwelling units that exceed unit sizes of 2,000 square feet. Table 2A of the Housing Element contains these adjustment factors. According to the City’s Inclusionary Housing Ordinance and Table 2A, the inclusionary housing require- ment for the residential component of the project is a total of 67 units, with 22 low and 45 moderate income units. The project proposes to meet and exceed the residential component requirement by providing 32 lower income units and 35 moderate income units as show in Table 1 below, which will pro- vide for deeper affordability and more lower income units than required. In addition, the commercial component of the project requires a total of 4 units, with 1 low and 3 moderate income units. The project proposes to meet commercial component requirement by either constructing the units in the project or by paying an affordable housing in-lieu fee. PH 1 - 162 Table 1 Inclusionary Housing Requirements Units Required and Units Provided Units Avg Size Total Floor Area Net Acres Net Den- sity Density Units Density Units/Acre R-1 Alley 33 2,250 74.250 4.7 7.02 33 7.02 R-1 Front 68 2,250 153,000 8.07 8.43 68 8.43 R-2 Pocket Cottage 76 1,200 91,200 5.67 13.40 76 13.40 R-2 Standard 221 1,750 386,750 21.62 10.22 221 10.22 R-3 Duplex 38 1,750 66,500 4.13 9.20 57 13.80 R-3 Townhome 159 1,375 218,625 6.49 24.50 173 26.66 R-4 Apartments 125 850 106,250 4.39 28.47 115 26.20 Neighborhood Commercial 15,000 1.85 Total 720 1,525 1,096,575 55.07 13.07 743 13.49 Nominal Requirement 108 HE Table 2A Adjustment -41 Constructed Fee Total Commercial 4 Requirement: 71 Provided: 67 71 Low 23 32 1 33 Moderate 48 35 3 38 The Avila Ranch project will address housing affordability in several ways, most notably through the design itself, which includes cluster development and many medium and high-density housing units (197 R-3 units and 125 R-4 units), as well as R-2 units that have floor areas that are well below the typical average for single-family detached units in the community. The City’s Inclusionary Housing Requirement will be addressed through deed restrictions on some low income and moderate-income units to be constructed by Avila Ranch, while others will be provided by dedicating and donating improved land to a non-profit affordable housing provider. However, should an affordable housing provider fail to construct the units, the obligation to provide for the 24 deed-restricted low-income affordable housing units remains with Avila Ranch to complete. The following highlights are summarized from the Development Plan: • Mix of Residential Densities and Small Lots. There is an intentional mix of residential densities in the Avila Ranch project that includes a range of R-1 lot sizes, R-2 “four-packs”, “six-packs”, and “eight- pack” cluster units, and R-3 and R-4 multifamily dwellings, with an emphasis on smaller lot, higher density units. R-2 small lot single family detached units comprise over forty percent of the residential units (with building living areas ranging from 1,050 SF for a 2B/1B unit to 2,200 SF 3B/2B unit), and medium density and above units will comprise over 85 percent of the units in the project. The average unit size across the entire project is less than 1,550 square feet. PH 1 - 163 • Pocket Cottage Units. The Plan includes 76 “Pocket Cottage” units, which are intended to meet the needs of young professionals, empty nesters and young families. These units have floor plans ranging from 1,050 to 1,300 square feet in 2BR/1B, 2BR/2B and 3BR/2B configurations. These units, like the other cluster units, are arranged around a common landscaped courtyard, and will have access from a common driveway. These smaller units also have a one-car garage and an adjacent uncovered guest parking space. This parking reduction is justified by the lower expected occupancy for these smaller units and the multimodal features of the overall development. A portion of these units will be re- served for income-qualified workforce households through the Workforce Housing Incentive Program (WHIP) described below. Nine of the Pocket Cottage units (5 2-bedroom and 4 3-bedroom units) would be dedicated for Moderate Income, and 13 of these units (6 2-bedroom/1-bath units and 7 3- bedroom/2-bath units) will be dedicated for the project’s Workforce Housing Incentive Program (WHIP) program described below. The nine inclusionary moderate-income units will be provided on in Phases 1 and 3 of the project on Lots 37, 51, 65, 76, 91, 121, 364, 378 and 392. The Workforce units in the Pocket Cottage series will be provided on Lots 32, 46, 60, 74, 79, 89, 90, 117, 365, 379, 393, 315 or 316. • R-3 Units and Inclusionary Housing Requirements. The project includes 197 R-3 multifamily units on 11 acres that range in size from 700 square foot for-sale and for-rent studios to 1,750 square foot duplexes. The R-3 portion will include eighteen (18) for-sale moderate-income units (10 2-bedroom/1- bath units and 8 3-bedroom, 2-bath units) and twelve (12) WHIP units (6 2-bedroom/1-bath units and 6 3-bedroom/2-bath units). The inclusionary units will be provided on Lot 405 as part of the first 80 R-3 townhomes (and the first 116 R-3 units overall), and the 12 Workforce units will be provided on Lot 407. • R-4 Housing and Affordable Housing Development. Finally, the project will include a substantial number of apartment units that are near employment and shopping at Suburban and Higuera. The R- 4 apartment portion of the project will be directly served by an on-street transit stop and will be within walking distance of nearby shopping. A one-acre portion of R-4 project (adequate for 24 density units- -and 25-30 actual dwelling units) will be dedicated to an affordable housing provider (either Lot 300 or Lot 301 of the VTM) at the time that the final map for Phase 1 is recorded to address the local need for lower income housing and to satisfy, in part, the project’s inclusionary housing requirements. However, should an affordable housing provider fail to construct the units, the obligation to provide for the 24 deed-restricted low-income affordable housing units remains with Avila Ranch to complete. Unit sizes in the R-4 apartment portion will range from 550 square foot studios to 1,150 square foot units for larger families. The number of units required by the inclusionary housing requirement is twenty-four (24)) lower income units, and the City’s Inclusionary Housing Ordinance requires that a site be dedicated that is adequate in size for the required units plus 35 percent for anticipated density bonus. The site to be dedicated is zoned for 24 density units (and 32-35 “doors”), and is adequate to meet this requirement. This site will be improved as part of Phase 1 of the project since it is served by Earthwood, and can be conveyed to the affordable housing provider during Phase 1. Its develop- ment is not dependent on the completion of improvements in Phase 3 of the project (where it is located), and construction can start on it after the Buckley Road Extension improvements are com- pleted. This will allow completion of these low income inclusionary units early in the project, rather than leaving them to the end. In addition, eight (8) Low Income 2-bedroom/1-bath and eight (8) PH 1 - 164 Moderate Income 2-bedroom/1-bath units will be provided on Lot 360, a market rate apartment de- velopment. • Neighborhood Commercial. The 1.8-acre Neighborhood Commercial portion of the project will gen- erate a requirement for four additional inclusionary units (1 lower income and 3 moderate income). Development of this site is anticipated 10+ years, and will be based on market demand. Most of the NC site is currently located in ALUP Safety Zone S-1-B that precludes residential development; how- ever, there is a 0.25-acre portion of Lot 603 that is outside and that can accommodate residential development. The project will include the four inclusionary units in its design, if possible, and subject to the restrictions of the Specific Plan. If that is infeasible, the project will pay an affordable housing in-lieu fee per the Inclusionary Housing Ordinance and Table 2 of the Housing Element. Overall, the project will provide a total of thirty-two (32) low and thirty-five (35) Moderate Income inclu- sionary units compared to the city’s requirement for twenty-two (22) Low Income units and forty-five (45) Moderate Income units. The inclusionary housing product mix has been intentionally skewed toward the low-income units to ensure that this income group is adequately represented in the project, and to rec- ognize that the moderate-income groups have adequate market rate opportunities in the R-3, R-2 Pocket Cottage and R-4 rental portions of the project. Table 2 shows the phasing of the affordable units, and Exhibit 1 shows the location of these units. Table 2 Assisted Affordable Housing Phasing Plan Phase Program 1 2 3 4 5 6* Total Low Income Rentals 24 8 1 33 Mod Income Rentals 8 3 11 Moderate Income For-Sale 6 3 18 27 Workforce For-Sale-WHIP 13 12 25 Other Market Rate Work- force For Sale 36 18 70 124 Rental 83 86 169 Total 79 - 120 186 - 385 Units in Phase 179 29 214 197 101 4 724 Total-Inclusionary Low 33 Total-Inclusionary Mod 38 Total-Workforce WHIP 25 Total--Market Rate Work- force 293 Total 389 *Phase 6 represents the Commercial Development and associated Inclusionary Housing Requirement. This will be met either by development of units within the commercial project or by payment of affordable housing in -lieu fee. PH 1 - 165 Workforce Housing Plan A special four-point program will be provided to create workforce housing and increase the supply of housing available to local employees. This program will include providing local preferences for individuals who work within the City of San Luis Obispo and immediately surrounding area the priority to purchase or rent a residence within the Project, owner-occupancy restrictions in the single-family detached units, and a special Workforce Housing Incentive Program which will provide deed-restricted units for workforce housing eligible households (households earning 121-160% of the Area Median income). This workforce housing program seeks to target the Project to local employees, reduce the influence of investors in the limitation of housing choice and availability, provide a down payment assistance program for Workforce Income families, and provide a certain number of units that will be deed-restricted. The elements of the program are as follows: • Local Preference (“SLO Workers First”). Program 10.4 of the City’s Housing Element encourages res- idential developers to “…sell or rent their projects to those residing or employed in the City first before outside markets.” Further, the City and project applicants recognize that one of the principal reasons for the designation of additional residential land in the community in the 2014 Land Use and Circula- tion Element update was to address the current jobs-housing imbalance. One direct and effective way of achieving this is to provide priority for existing employees to rent or purchase residences within the Project. To that end, an interest list has been developed for the Project. Currently, seventy per- cent (70%) of those on the interest list work in the San Luis Obispo area. Avila Ranch agrees to give first preference to rent or purchase a residence within the Project to local employees identified on the interest list. For purposes of this program, the term “local employees” shall include individuals who are employed in business that are located in geographic areas that are customarily included in the City’s annual jobs-housing balance analysis in its General Plan Status Report. These areas include the City’s corporate limits and areas outside the City limits such as Cal Poly, California Men’s Colony, Cuesta College, agricultural lands within the Edna Valley area and business parks on South Broad Street. New employees to businesses in these geographic areas with bonafide employment offers will be considered “local employees” as well. Avila Ranch agrees to maintain and update the interest list through full build-out of the Project. City and Avila Ranch agree that, operationally, this program will be administered as follows: a. Avila Ranch shall maintain the interest list and shall separate and prioritize names of local employees based on interest in product type. b. When product becomes available, usually 270-360 days prior to certificate of occupancy (assuming a 180-day construction period), Avila Ranch shall notify those individuals of the opportunity to purchase a residence starting with the “top of the list.” Those individuals shall have approximately 60 days to get pre-qualified to purchase the residence and to provide Avila Ranch with proof that the individual is a local employee and the time notice (i.e. paycheck or bonafide offer of employment from a local employer.) c. If an individual fails to get pre-qualified or fails to provide Avila Ranch with proof of local employment within the time periods above, then Avila Ranch may remove or put that name at the end of the interest list. PH 1 - 166 d. Except for the multi-family apartments, Avila Ranch agrees not to sell any units within the Project to any individual without first offering the unit to a local employee who is on the interest list for that product type. Upon exhausting all local employees on the interest list for a product type, Avila Ranch agrees to give priority in the sale of such units to individ- uals residing in the County (but within Fair Housing constraints and state and local regu- lations), and finally to individuals from outside the county. Nothing herein shall preclude Avila Ranch from notifying multiple individuals with the opportunity to purchase a residence and prioritizing the purchase and sale based on “first in line” principles. Nothing herein shall preclude Avila Ranch from taking all reasonable actions necessary in order to facilitate the sale of units within the Project provided such actions are consistent with the “SLO Workers First” program described herein. Avila Ranch shall, upon request, update the City on its implementation of this program and provide City with the interest list and proof of employment for all sales made under this program. City and Avila Ranch acknowledge that this program described above will accomplish three important objectives: 1) use new housing to address the current imbalance between existing jobs and housing; 2) ensure that, to the maximum extent practicable, that the increased housing in San Luis Obispo results in a decline in the current commute traffic; and, 3) reduce competition from outside buyers in the initial offering and sales. • Owner-Occupancy Restrictions. Avila Ranch agrees to include restrictions in the purchase agreement and Covenants Conditions and Restrictions (CC&Rs) for the single family detached units (R-1 and R-2) substantially in the form as set forth in Attachment “A” requiring these units to be restricted to owner- occupants only for the first five years after sale. In the case of units with Accessory Dwelling Units (ADUs), the Principal Dwelling or the ADU will need to be occupied by the property owner. The final form of these agreements will be determined at the time of development of the first final map, and will provide for appropriate monitoring and enforcement. This component of the CC&Rs may not be modified without the City’s written consent. The City of San Luis Obispo shall be a designated third party beneficiary to these contractual rights and shall have the right to enforce the owner occupancy requirement. Enforcement and monitoring of the owner occupancy requirement on all single-family dwellings however, Avila Ranch and/ or in coordination with a qualified housing non-profit. Upon re- quest, Avila Ranch shall provide City with any information related to Avila Ranch’s implementation and enforcement of this program. Workforce Housing Incentive Program (WHIP). Avila Ranch agrees to provide 25 deed restricted units, including thirteen (13) Pocket Cottage units and twelve (12) R-3 Townhomes, to families in the Workforce Housing category, defined by the City of San Luis Obispo as household incomes of 121% to 160% of Area Median Income (AMI). This program would require that eligible households have in- comes no greater than 160% of the then-current Area Median Income (AMI) (Currently estimated at $133,000 per year) and are income-certified by the Housing Authority of San Luis Obispo or other qualified housing non-profit. For these units, prices would be limited to no more than that required to achieve an Index of Affordability (“Index”) of 31 percent (cost of housing including mortgage prin- cipal, mortgage interest, taxes and insurance divided by 140% of AMI). The Housing Element does not specify an Index of Affordability for Above Moderate household; however, the proposed index is consistent with the requirements of Policy 2.2 of the Housing Element which specifies a 30% Index for PH 1 - 167 Moderate Income units, with FHA guidelines, and recognizes the energy and occupancy costs savings proposed as part of the “Net Zero” features of the project. The maximum purchase price would be equal to 5.65 times (140% of 4.05 multiplier) the median income for each household size. For exam- ple, the current 4-person (3 bedroom) median household is $83,200 and the associated maximum price of a 3-bedroom unit would be $470,200, and the maximum purchase price for a two-bedroom unit would be $423,200. These units would have to be occupied by an income qualifying Workforce Housing household for a minimum of ten (10) years; if resold within this ten-year period, the units would need to be sold to another income-qualifying Workforce Housing buyer, and the ten-year af- fordability period would reset. Thirteen (13) of these Workforce units (6 2-bedroom/1-bath units and 7 3-bedroom/2-bath units) will be provided in the R-2 Pocket Cottage portion of the development and twelve (12) units will be provided in the R-3 Townhome portion of the project (6 2-bedroom/1-bath units and 6 3-bedroom/2-bath units). The Workforce units in the Pocket Cottage series will be pro- vided on Lots 32, 46, 60, 74, 79, 89, 90, 117, 365, 379, 393, 315 or 316, and the 12 Workforce units will be provided as on Lot 407 (see Exhibit 1). The deed restrictions and enforcement would be administered in the same manner that the City does the inclusionary housing requirements. More specifically, prior to recordation of any final map for the Project, Avila Ranch shall enter into and record an Affordable Housing Agreement and Declaration of Restrictive Covenants on title for the Property per City form incorporating the affordability provisions set forth herein. Avila Ranch and City acknowledge that as each workforce housing unit is constructed, a note and deed of trust would be recorded against title to the unit per City form. Avila Ranch acknowl- edges that the note will be in the amount of the difference between the fair market value of the unit and the restricted sale price and will be in favor of City. The City of San Luis Obispo Community Devel- opment Department shall monitor all deed-restricted WHIP units. Down Payment Assistance Program. Avila Ranch agrees to provide a matching down payment assistance (DPA) of five percent of the purchase price up to $20,000 as a “silent second” on the initial sale of the 25 Workforce homes. These units would have to be occupied by an income qualifying Workforce Housing household for a minimum of ten (10) years; if resold within this ten-year period, the units would need to be sold to another income qualifying Workforce Housing buyer and the 10-year deed restriction would reset to 10 more years with the new buyer of the home. The DPA loan would be repaid upon sale of the unit or refinancing, and the proceeds would be placed in a revolving loan fund to assist future workforce, moderate, or lower income home buyers in Avila Ranch. Unlike a reduction in price that would be cap- tured by a future seller at the end of the affordability term, this assistance would continue throughout the life of the funds to assist buyers in the development. The intent is that these funds will be used in conjunction with the initial 25 Workforce units, but these funds could be used for any income qualifying household who purchases a home in Avila Ranch after the initial ten-year workforce affordability period. This will establish a revolving loan fund of approximately $500,000 to be administered by the City of San Luis Obispo. PH 1 - 168 Attachment A Sample Owner Occupancy Limitation in Conditions, Covenants and Restrictions (CCRs) Leases: No agreement for the leasing or rental (a "Lease") of a Principal Dwelling Unit or an Ac- cessory Dwelling Unit shall be permitted except as provided herein. Within five years of the date of first occupancy of the Principal Dwelling Unit, there shall be no Lease of the Principal Dwelling Unit without the prior and express approval of the Board based on the determination of the Board that the Lease is reasonably necessary to avoid substantial hardship to the Owner (e.g., ownership and leasing of a Princi- pal Dwelling - Unit for normal investment income purposes would not be permitted). Such hardship may include temporary reassignment of employment to another location, extended requirements for out of state personal commitments, and other factors. A Lease of a Principal Dwelling Unit or an Accessory Dwelling Unit shall be permitted so long as the owner also occupies either the Principal Dwelling Unit or the Accessory Dwelling Unit and the Accessory Dwelling units meets all of the City’s requirements. Any Owner who leases a Principal Dwelling Unit or an Accessory Dwelling Unit (after receiving approval to do so) shall promptly notify the Association and shall advise the Association of the term of the Lease and the name of each tenant. Any Lease shall be subject in all respects to the provisions of this Declaration, the Articles, the Bylaws, the Association Rules, the Architectural Rules and applicable agreements be- tween the Association and any state, local municipal agency; and any Lease shall expressly provide that the Lease is subject to all such instruments and matters. Said Lease shall further provide that any failure by the tenant thereunder to comply with the terms of the foregoing documents shall be a default under the Lease. All Leases shall be in writing. Any Owner who shall lease or rent his Dwelling Unit shall be responsible for assuring compliance by such Owner's tenant with this Declaration, the Articles, the Bylaws, the Association Rules and the Architectural Rules, and shall be jointly and severally responsible for any violation thereof by his tenant. No Dwelling Unit shall be leased for transient or hotel purposes, for short term vacation rentals, which shall be defined as rental for any period less than thirty (30) days, or any rental whatsoever. No Dwelling Unit shall be leased or rented to more than a single family at any time. Tenants under Leases shall not have voting rights in the Association, but may utilize Common Areas in the same manner as Owners. PH 1 - 169 Attachment B Sample Purchase Agreement Occupancy Addendum ADDENDUM “__” to CONTRACT FOR PURCHASE AND SALE OF REAL PROPERTY (_______________) OCCUPANCY PERIOD AND USE AS PRINCIPAL RESIDENCE addendum PROPERTY: Lot ___ of Tract No. Address: _____________________________________________________ ________ This is an addendum (the “Addendum”) to the Contract for Purchase and Sale of Real Property (the “Con- tract”) dated , 20______, between __________________, as “Seller,” and the undersigned, as “Buyer,” concerning the property described above (the “Property”). This Addendum modifies the Contract as set forth below. All terms used as defined terms below shall have the same meaning as when used in the Contract unless expressly stated otherwise in this Addendum. Seller desires to sell the Property only to a Buyer only if Buyer will occupy the Property as Buyer’s principal residence for at least five (5) years. Buyer acknowledges that imposition of the minimum occupancy pe- riod contained in this Addendum, and Seller’s limitation of selling only to owner-occupants is a material consideration, and that Seller is forfeiting potential additional profits by selling to Buyer and other owner- occupants. Therefore, to induce Seller to agree to sell the Property to Buyer, Buyer represents and agrees as follows: 1. Use as Principal Residence for five years. Buyer represents and warrants to Seller : (a) that Buyer is purchasing the Property for use as Buyer’s principal residence; and, (b) that Buyer will occupy the Property as Buyer’s principal residence upon the Close of Escrow; and, (c) that Buyer shall not attempt to transfer Buyer’s rights under the Contract nor enter into any agreement for the lease, sale or other transfer of the Property which would result in Buyer’s failure to occupy the Property as Buyer’s principal residence and hold title thereto in fee simple for a period of five (5) years from the Close of Escrow of Buyer’s purchase of the Property (the “Occupancy Period”). The provisions this Paragraph and the accuracy of the above representations and warranties consti- tute a covenant of Buyer and a condition precedent to Seller’s performance under the Contract. In the case of Property with a Principal Residence and an Accessory Dwelling Unit, the Buyer shall occupy either the Principal Residence or the Accessory Dwelling Unit. Failure of Buyer to occupy the Principal Residence shall not constitute a breach of this Addendum. 2. Transfer Prior to Close of Escrow. Any attempt by Buyer to assign Buyer’s rights under the Con- tract and/or to lease, sell or otherwise transfer the Property prior to the Close of Escrow for the sale of the Property without Seller’s prior written consent shall constitute both of the following: (1) Buyer’s default under the Contract, entitling Seller, at its sole election, to terminate the Con- PH 1 - 170 tract and retain Buyer’s deposit pursuant to Paragraph the Contract; and, (ii) the failure of a con- dition precedent to Seller’s obligation to sell the Property to Buyer. Seller’s remedies may occur prior to or after the Close of Escrow for the sale of the Property to Buyer. If the Buyer breaches the provisions of this Addendum and the Escrow for the sale of the Property to Buyer has closed, Seller shall be entitled to damages as set forth in Paragraph 4 of this Addendum. 3. Seller’s Right to Terminate CONTRACT. Buyer understands and agrees that Seller has the unilat- eral right, in its sole discretion, to terminate the Contract and cancel the Escrow in accordance with Paragraph 2 above, if Buyer takes or has taken any of the following actions: (a) assigns the Contract to another person prior to the Close of Escrow; or, (b) advertises, lists or otherwise offers the Property for sale or rent to others at a time or manner which would result in the failure or inability of the Buyer to reside in the Property for the full Occupancy Period; or,, (c) enters an agreement to sell or rent the Property which would cause Buyer to move from the Property prior to the expiration of the Occupancy Period; or, (d) takes any other action which indicates to Seller that Buyer does not have a bona fide intention of residing in the Property as Buyer’s princ ipal residence for the full Occupancy Period. 4. Transfer Subsequent to Close of Escrow. Except for “hardship” situations as described in Exhibit “A” to this Addendum, attached hereto, any sale, lease or other transfer by Buyer under which Buyer either fails to occupy the Property for the Occupancy Period or transfers fee simple title to the Property prior to the expiration of the Occupancy Period shall constitute Buyer’s default under the Contract. Any such default shall entitle Seller to any of the following remedies: (a) in the case of a sale or other transfer of fee title to the Property, Seller shall be entitled to the amount of the appreciation of the Property which has occurred after the Close of Escrow; or, (b) in the case of a lease or other occupancy agreement, the greater of (i) the actual rent and/or other economic consideration or (ii) the fair market rental value of the Property (collectively, “Rent”) payable to or for the benefit of Buyer during the Occupancy Period in connection with such lease or other occupancy agreement. For purposes of this Addendum, “appreciation” shall be mean the differ- ence between (i) the fair market value of the Property at the time of Buyer’s sale thereof, less Buyer’s customary costs of resale such as broker’s commission, escrow fees and title costs, and (ii) the Total Purchase Price of the Property plus Buyer’s actual cost paid for any improvements made by Buyer to the Property, as evidenced by paid unrelated third-party invoices. Buyer shall pay appreciation to Seller concurrently with the sale or other transfer of fee title to the Property by Buyer. Buyer shall pay Rent to Seller within the first five (5) days of each calendar month during the Occupancy Period. 5. No Unreasonable Restraint. Buyer acknowledges that the purpose of this Addendum is to comply with Seller’s intention to sell homes only to persons who will occupy them as a principal residence, to obtain a stabilized community of owner-occupied homes, to prevent a shortage of available homes to the local workforce, and to prevent a shortage of homes to permanent residents of San Luis Obispo. Buyer agrees that the provisions and restrictions set forth in this Addendum do not constitute an unreasonable restraint upon alienation of the Property. 6. Survival: severability grant. All of the covenants contained herein shall survive the delivery and recordation of the deed conveying the Property from Seller to Buyer and the Close of Escrow. The PH 1 - 171 provisions of this Addendum shall be independent and severable, and a determination of invalid- ity or partial invalidity or enforceability of any one provision or portion hereof shall not affect the validity or enforceability of any other provision of this Addendum or the Contract. 7. Subordination. Buyer hereby acknowledges and agrees that a violation of this Addendum by Buyer shall not defeat or render invalid the lien of any first mortgage or deed of trust made in good faith and for value by Buyer, and that the covenants and provisions of this Addendum shall be inferior and subordinate to the lien of any such first mortgage or deed of trust recorded con- currently with the deed conveying the Property to Buyer. 8. Entire Agreement. This Addendum and Exhibit “A” hereto contain the entire agreement between Buyer and Seller concerning the matters set forth herein. All prior discussions, negotiations and agreements, if any, whether oral or written, are hereby superseded by these documents. No addition or modification of this Addendum or the Contract shall be effective unless set forth in writing and signed by Buyer and an authorized officer of Seller. 9. Attorney’s Fees. In the event of controversy, claim or dispute relating to breach of the terms of this Addendum, the prevailing party shall be entitled to recover from the losing party reasonable expenses, including attorneys’ fees and costs. 10. No Third-Party Beneficiaries. There are no third-party beneficiaries to this Addendum. 11. Capitalized Terms. Various capitalized terms used in this Addendum are defined in the Agree- ments and shall have the same meaning as set forth herein, unless otherwise indicated herein. Buyer acknowledges that Buyer has read the provisions of this Addendum and that Buyer understands the provisions and finds them to be reasonable. IN WITNESS WHEREOF, the parties have executed this Addendum and make if effective as of the date of Seller’s acceptance indicated below. “SELLER” By: ______________________ Its: ______________________ Seller’s Acceptance Date: , 20_ “BUYER” _____________________ (Signature) ____________________ (Signature) ____________________ (Signature) Buyer’s Acceptance PH 1 - 172 Date: , 20_ EXHIBIT “A” TO ADDENDUM “__” The following events shall be deemed to constitute “hardship” situations under which Buyer may transfer, sell, assign, convey or lease (each of which is “a Transfer”) its right, title and interest in the Property prior to either (a) Close of Escrow, or (b) occupying and holding title to the property for a period of five y (5) years from Close of Escrow: A Transfer resulting from the death of Buyer; Transfer by Buyer where the spouse of Buyer becomes the only co-owner of the Property with Buyer; A Transfer resulting from a decree of dissolution of marriage or legal separation or from a property set- tlement agreement incident to such decree; A Transfer by Buyer into a revocable inter vivos trust in which Buyer is a beneficiary; A Transfer, conveyance, pledge, assignment or other hypothecation of the Property to secure the perfor- mance of an obligation, which transfer, conveyance, pledge, assignment or hypothecation will be released or re-conveyed upon the completion of such performance; A Transfer by Buyer where necessary to accommodate a mandatory job transfer required by Buyer’s em- ployer (not including Buyer, if Buyer is self-employed); A Transfer necessitated by a medical or financial emergency, proof of which emergency has been deliv- ered to Seller, and has been approved by Seller in its reasonable discretion; A Transfer which, in the reasonable judgment of Seller, constitutes a “hardship” situation consistent with the intentions of this Addendum and this Exhibit “A” thereto. PH 1 - 173 Exhibit 1 PH 1 - 174 PLANNING COMMISSION AGENDA REPORT SUBJECT: Review of the Development Agreement for the Avila Ranch project, which implements the Avila Ranch Development Plan and related entitlements as evaluated in the Final Environmental Impact Report (EIR) prepared for the project. PROJECT ADDRESS: 175 Venture Drive BY: Lee Johnson, Economic Development Manager FILE NUMBERS: OTHR 0455-2017 FROM: Derek Johnson, Assistant City Manager RECOMMENDATION: Adopt a Resolution (Attachment 1) recommending that the City Council introduce and adopt an Ordinance approving the Development Agreement between the City and Avila Ranch LLC. SITE DATA Applicant Representative Proposed General Plan and Zoning Site Area Environmental Status Avila Ranch, LLC Stephen Peck, AICP Low, Medium, Medium-High, & High Density Residential (R-1, R-2, R-3, & R-4); Neighborhood Commercial (C-N); Public Facility (PF); & Conservation/Open Space (C/OS) 150 acres A Final EIR is available for review. SUMMARY Avila Ranch, LLC has proposed a new, primarily residential development with up to 720 units on a 150-acre site north of Buckley Road within the boundaries of the Airport Area Specific Plan (“AASP”). The project would also include a “Town Center” with 15,000 square feet of neighborhood-serving retail and office uses next to a neighborhood park, as well as the preservation of some of the existing onsite agricultural uses and open space. The project as proposed is envisioned to implement the policies and development parameters as articulated in the recent Land Use and Circulation Elements (LUCE) update, other elements of the General Plan, AASP, and the City’s Community Design Guidelines. Meeting Date: August 9, 2017 Public Hearing Item Number: 2 PH 2 - 1 Avila Ranch Project (OTHR- 175 Venture Drive) Planning Commission Report – August 9th, 2017 Page 2 A Final EIR has been prepared for the project, and is available on the City’s website at: https://tinyurl.com/yae2byxp 1.0 SITE INFORMATION Please refer to the staff report for the Planning Commission hearing of June 28 and 29, which is available for review online at the following location: http://opengov.slocity.org/WebLink/1/doc/65871/Page1.aspx The site is composed of approximately 150 contiguous acres at the northeast corner of Buckley Road and Vachell Lane, and is comprised of three separate parcels: APN 053-259-006, APN 053- 259-004 and APN 053-259-005. 2.0 PLANNING COMMISSION’S PURVIEW The City adopted Municipal Code Chapter 17.94 in 1989, and began the process to update this Chapter in July 2017, to establish procedures and requirements for the City’s processing and administration of Development Agreements. This chapter in the City’s Municipal Code supplements the framework set forth in the State Government Code which authorizes the use of Development Agreements as a planning entitlement tool. The approval process for Development Agreements requires the Planning Commission to make a recommendation to the City Council, in consideration of the following findings (17.94.100): A. The proposed development agreement is consistent with the general plan and any applicable specific plan; B. The proposed development agreement complies with zoning, subdivision and other applicable ordinances and regulations; C. The proposed development agreement promotes the general welfare, allows more comprehensive land use planning, and provides substantial public benefits or necessary public improvements, making it in the city’s interest to enter into the development agreement with the applicant; and D. The proposed project and development agreement: 1. Will not adversely affect the health, safety or welfare of persons living or working in the surrounding area; 2. Will be appropriate at the proposed location and will be compatible with adjacent land uses. The Planning Commission should be aware that the findings required by the Planning Commission are in the process of being modified. The Municipal Code currently includes language that requires an additional finding, D.3, that states that the project will not have a significant impact on the environment. At a study session in March, 2017, the Council directed staff to come back w ith revisions to Chapter 17.94 to facilitate the use of Development Agreements for complex housing projects that may have remaining adverse impacts; even after all reasonable and feasible mitigation measures have been imposed. On July 18, 2017, Council approved the deletion of 17.94.100.D.3. The second reading will be on August 15th and the revision will go into effect on September 15th, 2017. PH 2 - 2 Avila Ranch Project (OTHR- 175 Venture Drive) Planning Commission Report – August 9th, 2017 Page 3 4.0 PROJECT SUMMARY AND DISCUSSION A Development Agreement is a mechanism to provide certainty in the development process and a means by which developers can protect their investment, a municipality can provide certainty about public improvements and financing and address other issues that are outside the regulatory authority of a City. A Development Agreement is also a contract between a municipality and a property owner/developer, which provides the developer with vested rights by freezing the existing zoning regulations and other issues applicable to a property in exchange for public benefits. In general, the evolution of the Development Agreement as a land use tool is a consequence of a larger tension between increasingly complicated land use regulations, high degree of public engagement, and developers’ and a community’s desire for certainty. The Development Agreement between Avila Ranch and the City covers the general terms of the agreement as well as the specific commitments of both the developer and the City. Requirements that are part of the Conditions of Approval or the FEIR are generally not repeated in the Development Agreement. The exhibits included with the Development Agreement are intended to ensure that the entire package can be viewed on a standalone basis as the agreement between the Developer and the City. During the period of time between when the Planning Commission makes the required findings and the City Council’s review of the Development Agreement there may be administrative changes required to either the Development Agreement, the exhibits or the attachments to provide more clarity or additional information. Any material changes will be highlighted to the Council to inform their deliberations and any fundamental modification will be reviewed by the Planning Commission. Based on the Planning Commissions actions during the previous Avila Ranch item on the August 9, 2017 agenda to recommend that the City Council; 1) certify the Final EIR, adopting appropriate CEQA Findings and Statement of Overriding Considerations, and adopt a Mitigation Monitoring and Reporting Plan; 2) approve the Airport Area Specific Plan Amendment, General Plan Amendment and Rezone; 3) approve the Avila Ranch Development Plan based on findings that the project is consistent with the General Plan and Airport Area Specific Plan as amended; and 4) approve Vesting Tentative Tract Map No. 3089 as well as the results of the Public Hearing on the Development Agreement itself, the Planning Commission is asked to make the findings as required under Municipal Code Chapter 17.94.100 outlined in Section 2 above. Other major items or “deal points” that are covered in the Development Agreement that are not directly related to the findings required by the Planning Commission are summarized below (the relevant section, exhibit or attachment is included for reference): 1) Term: The length or term of the agreement is 20 years with a possible 10-year extension. (1.03, page 4) 2) Financing: The Developer has a large investment to make in services and infrastructure. The plan is to establish a CFD to help finance these costs. The Development Agreement requires the City to consider in good faith the funding, establishing and forming a mechanism or mechanisms to facilitate funding costs related to the project. If the final funding mechanism is one that can be repealed or voided in some way that is out of the control of the City the Developer will establish a “backstop” funding mechanism to protect the City. (5.02.2, page 10 and 5.03, page 11) PH 2 - 3 Avila Ranch Project (OTHR- 175 Venture Drive) Planning Commission Report – August 9th, 2017 Page 4 3) Fees: Normally the AB1600 or Impact Fees are “locked in” at the time of the agreement. Since the City is currently in the process of updating the AB1600 fee program, the Developer has agreed to pay the new AB1600 fees once the update is completed. (5.04.2 b and c, page 13) 4) Reimbursement: The Development Agreement and the financing plan layout the options for reimbursement and the possible sources of reimbursement. Two key points are that the City’s general fund is not at risk for any reimbursement and that the “fair share” allocations of the infrastructure are based on the percentages identified. Actual reimbursement will be based on the actual costs not on the estimated costs included in the financing plan. (5.05.3, page 15) 5) Sustainability: The agreement documents requirements that exceed both existing and anticipated regulatory requirements related to sustainability. (7.07 and 7.08, page 23) 6) Phasing: The expected phasing of the project is included in the financing plan. In order to ensure that the City is not obligated under the development agreement should the project not move forward, there is a clause in the agreement that the Developer will complete phases 1 & 2 of the project within seven years of the effective date or the development agreement is void. (7.02.1.b, page 21) 7) Water: The water rights stipulated in the development agreement allows the use of well water for irrigation within the agricultural parcel, and is consistent with the municipal code. During construction, the agreement project proposes a twenty-year timeframe for the developer to be allowed to construct its project with an option for a 10-year extension. Any mandatory water conservation measures and water allotment requirements from the Water Shortage Contingency Plan applied citywide would still apply to the end user or new resident. (7.08, page 24) The project was analyzed with the cumulative buildout of the City, and is consistent with the water supply accounting policy A5.2.2 listed in the 2015 General Plan (EIR). 8) Infrastructure: The agreement lists the sources of reimbursement as well as the “fair share” of the required $66,672,134 (based on current estimates) in infrastructure. The Developer will build $9,057,540 (based on current estimates) of infrastructure beyond their fair share. (Exhibit C, Development agreement, Attachment 3, Draft Fiscal and Public Benefit Analysis from EPS) 9) Affordable and Workforce housing: The project includes design and development strategies that serve to provide lower cost housing by providing for a range of housing sizes and types, greater number of lower income Inclusionary Housing units than required by Ordinance, local preference, owner occupancy restrictions, workforce housing incentive program and down payment assistance. These are contractual requirements that exceed the City’s regulatory authority for affordable housing. (Exhibit G, Development Agreement) 10) Public Benefit: The City’s outside consultant, Economic Planning Systems (EPS), has reviewed the financials of the project and the commitments of the Developer and the City that are included in the Development Agreement and concluded that the City is receiving approximately $30,000,000 more in extraordinary public benefits than the Developer is receiving in benefits related to the proposed development agreement. (Attachment 3, Draft Fiscal and Public Benefit Analysis from EPS) PH 2 - 4 Avila Ranch Project (OTHR- 175 Venture Drive) Planning Commission Report – August 9th, 2017 Page 5 5.0 NEXT STEPS If the Planning Commission recommends that the City Council introduce and adopt an Ordinance approving the Development Agreement between the City and Avila Ranch LLC, as contained in the attached Resolution (Attachment 1), these are the next steps: • City Council Considers Project. The City Council will review the Planning Commission and Architectural Review Commission recommendations, and consider the project. • AB 1600 Fee Program Update and Community Facilities District Formation. Based in part on input received at a future joint Planning Commission/City Council workshop, the City’s AB 1600 fee program will be updated. A CFD will also be formed for the project, which will require City Council action. • Project Development. Once the Development Agreement is approved, and necessary fee structures are in place, the City’s approved project entitlements will become effective. 6.0 ATTACHMENTS 1) Resolution 2) Development Agreement with Exhibits 3) Draft Fiscal and Public Benefit Analysis from EPS 4) Draft Ordinance for City Council approval of the Development Agreement PH 2 - 5 RESOLUTION NO. ______ (2017 Series) A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SAN LUIS OBISPO RECOMMENDING THE CITY COUNCIL ADOPT AN ORDINANCE APPROVING A DEVELOPMENT AGREEMENT BASED ONTHE FINDINGS IN SUPPORT OF THE DEVELOPMENT AGREEMENT AS REQUIRED UNDER MUNICIPAL CODE CHAPTER 17.94.100 FOR PROPERTY LOCATED AT 175 VENTURE DRIVE (OTHR 0455-2017 - a.k.a. “AVILA RANCH PROJECT”) WHEREAS, this Resolution is adopted under the authority of Government Code §§ 65864 et seq. and San Luis Obispo Municipal Code Chapter 17.94; and WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing on the Avila Ranch Project Development Agreement (the “Development Agreement”) on August 9, 2017; and WHEREAS, the Planning Commission hearing was for the purpose of formulating and forwarding recommendations to the City Council of the City of San Luis Obispo regarding the Development Agreement in conformance with Government Code §§ 65864 et seq. and San Luis Obispo Municipal Code Chapter 17.94; and WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and WHEREAS, on June 28, 29 and July 12, 2017 and on August 9, 2017, the Planning Commission held hearings on the underlying entitlements for the Avila Ranch project including environmental analysis and other related studies. On August 9, 2017, the Planning Commission recommended that the City Council: 1) certify the Environmental Impact Report, adopt appropriate CEQA findings and Statement of Overriding Considerations, and adopt a Mitigation and Monitoring and Reporting Plan; 2) approve the Airport Area Specific Plan Amendment, General Plan Amendment and Rezone; 3) approve the Avila Ranch Development Plan based on findings that the project is consistent with the General Plan and Airport Area Specific Plan, as amended; and 4) approve the Vesting Tentative Tract Map No. 3089; WHEREAS, The proposed Development Agreement provides for the orderly development of the Avila Ranch project and outlines the financing mechanisms to fund construction of the infrastructure, and identifies funds for potential reimbursement for certain infrastructure costs, requires sustainable building features and technology that have the potential to reduce greenhouse gas emissions, establishes an offsite agricultural mitigation strategy, requires funds for transit improvements to offset air quality emissions, and incorporates affordable housing standards that exceed those required under the City’s applicable housing policies, ordinances and programs; and WHEREAS, the Development Agreement for the project implements the Avila Ranch Development Plan and related entitlements as evaluated in the Final Environmental Impact Report and does not introduce any new potential environmental impacts; and ATTACHMENT 1 PH 2 - 6 Resolution No. ______ (2017 Series) Avila Ranch Project Page 2 OTHR-0455-2017 WHEREAS, the Development Agreement does authorize the project to accelerate buildout of the project above the phasing schedule so long as there is outstanding indebtedness owed to Avila Ranch for offsite improvements as determined by findings by the Community Development Director and that the build-out above the cumulative maximum shown for each year in the phasing schedule will not exceed the City’s Growth Management Ordinance; and WHEREAS, an acceleration in the buildout of the project schedule will not introduce any environmental impacts because: 1) the acreage and boundaries of each phase of development will remain the same as that analyzed in the EIR; 2) the sequence of development will remain the same as that analyzed in the EIR; 3) project components such as road improvements that serve to mitigate impacts as well as mitigation measures identified in the EIR will continue to apply to each phase of development; 4) the cumulative buildout of the project was analyzed in combination with other projects under development and analyzed with the full buildout of the City as forecasted in the 2014 LUCE General Plan Update and related Final Environmental Impact Report for the project; and 5) all applicable mitigation measures for each phase of development would also be accelerated to coincide with any phased portion of development under construction; and WHEREAS, the Planning Commission has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff, presented at said hearing. BE IT RESOLVED, by the Planning Commission of the City of San Luis Obispo as follows: SECTION 1: Findings. Based on the recitals above and the evidence contained in the record, the Planning Commission hereby finds that: a. The proposed Development Agreement attached hereto as Exhibit “A” is consistent with the general plan and the Airport Area Specific Plan; b. The proposed Development Agreement complies with zoning, subdivision and other applicable ordinances and regulations; c. As described in the recitals above and the provisions below, the proposed Development Agreement promotes the general welfare, allows more comprehensive land use planning within the airport area, and provides substantial public benefits and necessary public improvements for the region, making it in the city’s interest to enter into the Development Agreement with the applicant; and d. The proposed Avila Ranch project and Development Agreement: i. Will not adversely affect the health, safety or welfare of persons living or working in the surrounding area; and ii. Will be appropriate at the proposed location and will be compatible with adjacent land uses. SECTION 2: Action. The Planning Commission does hereby recommend that the City Council adopt an ordinance approving the Development Agreement for the Avila Ranch project. SECTION 3: CEQA Determination. The Planning Commission acknowledges that on August 9, 2017, per Resolution No. ___________, the Planning Commission recommended that the ATTACHMENT 1 PH 2 - 7 Resolution No. ______ (2017 Series) Avila Ranch Project Page 3 OTHR-0455-2017 City Council certify an Environmental Impact Report (“EIR”) for the Avila Ranch project. The Planning Commission finds that accelerated buildout of the project as authorized by the Development Agreement will not cause any new significant environmental effects or a substantial increase in the severity of previously identified effects because, among other things: 1) the acreage and boundaries of each phase of development will remain the same as that analyzed in the EIR; 2) the sequence of development will remain the same as that analyzed in the EIR; 3) project components such as road improvements that serve to mitigate impacts as well as mitigation measures identified in the EIR will continue to apply to each phase of development; 4) the cumulative buildout of the project was analyzed in combination with other projects under development and analyzed with the full buildout of the City as forecasted in the 2014 LUCE General Plan Update and related Final Environmental Impact Report for the project; and 5) all applicable mitigation measures for each phase of development would also be accelerated to coincide with any phased portion of development under construction. On motion by , seconded by , and on the following roll call vote: AYES: NOES: REFRAIN: ABSENT: The foregoing resolution was passed and adopted this 9th day of August, 2017. _____________________________ Doug Davidson, Secretary Planning Commission ATTACHMENT 1 PH 2 - 8 Dr a f t 182614.1 Recording Fees Exempt Pursuant to Government Code § 27383. Recording Requested By And When Recorded Mail to: City of San Luis Obispo c/o City Clerk 990 Palm Street San Luis Obispo, California 93401 DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF SAN LUIS OBISPO AND AVILA RANCH, LLC RELATING TO THE AVILA RANCH SPECIFIC PLAN (The “AVILA RANCH DEVELOPMENT AGREEMENT”) As Adopted by the San Luis Obispo City Council on __________ by Ordinance No. -________ ATTACHMENT 2 PH 2 - 9 Dr a f t i 182614.1 TABLE OF CONTENTS RECITALS AND DEFINITIONS .................................................................................................. 1 AGREEMENT ................................................................................................................................ 4 ARTICLE 1. GENERALLY .......................................................................................................... 4 Section 1.01. Definition of “Avila Ranch.” ........................................................... 4 Section 1.02. Effective Date .................................................................................. 4 Section 1.03. Term ................................................................................................. 4 Section 1.04. Execution and Recordation of Agreement ....................................... 5 ARTICLE 2. DESCRIPTION OF THE PROJECT ........................................................... 6 Section 2.01. In General......................................................................................... 6 Section 2.02. Project Approvals ............................................................................. 6 Section 2.03. Subsequent Approvals ..................................................................... 6 Section 2.04. Subsequent Approval Documents .................................................... 6 Section 2.05. Approvals ......................................................................................... 6 ARTICLE 3. DEVELOPMENT OF PROJECT IN GENERAL ....................................... 6 Section 3.01. Consideration to Avila Ranch .......................................................... 6 Section 3.02. Consideration to City ....................................................................... 7 Section 3.03. Rights of Avila Ranch Generally ..................................................... 7 Section 3.04. Rights of City Generally .................................................................. 7 Section 3.05. Project Parameters ........................................................................... 7 ARTICLE 4. APPLICABLE LAW ................................................................................... 8 Section 4.01. In General......................................................................................... 8 Section 4.02. Application of Other City Laws ....................................................... 8 Section 4.04. State and Federal Law ...................................................................... 9 ARTICLE 5. FINANCIAL COMMITMENTS OF CITY AND AVILA RANCH........... 9 ATTACHMENT 2 PH 2 - 10 Dr a f t ii 182614.1 Section 5.01. In General.......................................................................................... 9 Section 5.02.Basic Principles .................................................................................. 9 Section 5.02.2. Financing of Infrastructure; Operation and Maintenance ........... 10 Section 5.03. Establishment of Financing Mechanisms ...................................... 11 Section 5.04. Imposition of and Increases in Fees, Taxes, Assessments and Other Charges..................................................................................... 12 Section 5.05. Other Commitments of City and Avila Ranch Related to Financing................................................................................................... 14 Section 5.05.4. Other Shortfalls of City ............................................................... 17 ARTICLE 6. COMMITMENTS OF CITY AND AVILA RANCH RELATED TO PUBLIC IMPROVEMENTS ............................................................................................ 18 Section 6.01. Backbone Infrastructure Phasing Plan ............................................ 18 Section 6.02. Construction and Dedication of Project Facilities and Infrastructure ............................................................................................. 19 Section 6.03. Dedications .................................................................................... 20 Section 6.04. Cooperation with Respect to Project Facilities and Infrastructure ............................................................................................. 20 ARTICLE 7. OTHER COMMITMENTS OF CITY AND AVILA RANCH ................. 21 Section 7.01. Mutual Cooperation for Other Governmental Permits .................. 21 Section 7.02. Timing of Development ................................................................. 21 Section 7.03. Dedication of Park Lands................................................................ 22 Section 7.04. Dedication of Open Space and Agricultural Lands ........................ 23 Section 7.05. Affordable Housing and Workforce Housing ................................ 23 Section 7.07. Energy ............................................................................................. 23 Section 7.08. Water. .............................................................................................. 24 Section 7.09. Storm Drain Facilities ..................................................................... 24 Section 7.10. Interim Fire Station ......................................................................... 24 ATTACHMENT 2 PH 2 - 11 Dr a f t iii 182614.1 Section 7.11. Traffic and Circulation Improvements........................................... 25 Section 7.12. Bicycle and Multimodal Transportation Improvements ................ 25 Section 7.13. Miscellaneous ................................................................................. 25 ARTICLE 8..CONSIDERATION OF PERMITS AND APPROVALS .......................... 26 Section 8.01. In General................................................................................................... 26 Section 8.02. General Plan and AASP Amendments .......................................... 27 Section 8.03. CEQA Compliance. .................................................................................... 27 Section 8.04. Life of Approvals ........................................................................... 27 Section 8.05. Vesting Maps ................................................................................. 27 Section 8.06. Need for Flexibility ........................................................................ 27 ARTICLE 9. AMENDMENTS ....................................................................................... 28 Section 9.01. Amendments of Agreement. ...................................................................... 28 ARTICLE 10. ANNUAL REVIEW ................................................................................ 28 Section 10.01. Annual Review............................................................................. 28 ARTICLE 11. MITIGATION MONITORING AND REPORTING PROGRAM EVALUATION; DEVELOPMENT AGREEMENT REVIEW ........................... 29 Section 11.01. Mitigation Monitoring and Reporting Program Evaluation. .................... 29 Section 11.02. Development Agreement Review ................................................ 29 ARTICLE 12. DEFAULT, REMEDIES, TERMINATION OF DEVELOPMENT AGREEMENT ...................................................................................................... 30 Section 12.01. Defaults. ....................................................................................... 30 Section 12.01.1. Notice and Cure. ....................................................................... 30 Section 12.01.2. Actions during Cure Period. ..................................................... 30 Section 12.02. Remedies of Non-Defaulting Party. ............................................. 30 Section 12.03. Termination Due to Default. ........................................................ 32 Section 12.03.2. Procedures for Termination. ..................................................... 32 ATTACHMENT 2 PH 2 - 12 Dr a f t iv 182614.1 ARTICLE 7 ASSIGNMENT, TRANSFER AND NOTICE ........................................... 33 Section 13.02. Transfers In General. ................................................................... 33 Section 13.02.02. City Review of Release Provisions. ........................................ 33 ARTICLE 14. MORTGAGEE PROTECTION ............................................................... 34 ARTICLE 15. GENERAL PROVISIONS ...................................................................... 35 Section 15.01. Incorporation of Recitals and Exhibits ........................................ 35 Section 15.02. Project is a Private Undertaking .................................................. 36 Section 15.03. Cooperation in the Event of Legal Challenge. ......................................... 36 Section 15.04. Defense and Indemnity ................................................................ 36 Section 15.05. Governing Law; Attorneys’ Fees ................................................. 37 Section 15.06. Force Majeure .............................................................................. 37 Section 15.07. Waiver .......................................................................................... 37 Section 15.08. Notices ......................................................................................... 38 Section 15.09. No Joint Venture or Partnership .................................................. 39 Section 15.10. Severability .................................................................................. 39 Section 15.11. Estoppel Certificate ...................................................................... 39 Section 15.12. Further Assurances....................................................................... 39 Section 15.13. Construction. ............................................................................................ 40 Section 15.14. Other Miscellaneous Terms ......................................................... 40 Section 15.15. Counterpart Execution ................................................................. 40 Section 15.16. Time ............................................................................................. 40 Section 15.17. Good Faith/Fair Dealing .............................................................. 40 Section 15.18. Exhibits. ................................................................................................... 40 ATTACHMENT 2 PH 2 - 13 Dr a f t 1 DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF SAN LUIS OBISPO AND AVILA RANCH, LLC RELATING TO THE AVILA RANCH DEVELOPMENT PLAN THIS DEVELOPMENT AGREEMENT is entered into this ___ day of ________, 2017 (“Execution Date”), by and between the CITY OF SAN LUIS OBISPO, a municipal corporation and charter city (“City”), and AVILA RANCH, LLC, a California limited liability company (“Avila Ranch” or “Developer”), hereinafter referred to in this Development Agreement individually as a “Party” and collectively as the “Parties,” as appropriate. RECITALS AND DEFINITIONS A. The “Project,” as referenced in this Development Agreement, consists of the development of housing, neighborhood commercial buildings, parks, agricultural and open space uses, and various public infrastructure facilities located within the Avila Ranch subarea of the Airport Area Specific Plan area on the southwestern boundary of the City, as more particularly described and defined in Section 2.01 below. B. The “Property,” as referenced in this Development Agreement, consists of approximately 150 acres of land that has been designated for development as part of the Airport Area Specific Plan (the “AASP Area”). The property comprising the Property is more fully shown on Exhibit A attached hereto and incorporated herein by this reference. Exhibit B attached hereto sets forth the legal description for the Property. Avila Ranch represents and warrants to City that as of the Execution Date, Avila Ranch has a legal or equitable interest in the Property. C. Upon execution of this Development Agreement by the later to do so of Avila Ranch and City, this Development Agreement becomes Effective, as defined in Section 1.02 below, as to the Property and the City will record it against the Property. D. On December 9, 2014, City adopted an update to the Land Use and Circulation Elements of the City’s General Plan that included the AASP Area. The City’s General Plan designates the Property for a variety of land uses including residential, neighborhood commercial, open space, and agricultural, and provides for the development of these uses so as to benefit the City and its residents E. City and Avila Ranch have engaged in a cooperative and successful relationship to establish a development plan for the Property (the “Development Plan”). These efforts have culminated in the City’s adoption and approval of the following entitlements: (1) The Final Environmental Impact Report and associated Mitigation Monitoring and Reporting Plan (including all mitigation measures therein) for the project certified and adopted, respectively, by Resolution No. ___, on DATE. (2) The Amendment to Airport Area Specific Plan as amended by Resolution No. ____, adopted DATE. ATTACHMENT 2 PH 2 - 14 Dr a f t 2 (3) The City’s zoning map as amended by Ordinance No. ___, adopted DATE. (4) The Development Plan approved by Resolution No. ___, on DATE. (5) Vesting Tentative Tract Map #3089 (Avila Ranch _____) approved [DATE]. (6) Ordinance No. ____ dated _____, 2017 adopting this Development Agreement (“the Adopting Ordinance”). (7) The amendment to the City General Plan, as amended by Resolution No. ___, adopted [DATE]. (8) The conditions of approval of each of the foregoing. These approvals described in this Recital E, together with the Environmental Impact Report and related Findings, Statement of Overriding Considerations and Mitigation Monitoring and Reporting Plan described in Recital F below, are referred to herein, collectively, as the “Entitlements” or “Project Entitlements.” F. Before approving the Entitlements described in Recital E above, the City Council of the City of San Luis Obispo: (i) reviewed and considered the significant environmental impacts of the Project and several alternatives to the Project, as described in that certain Final Environmental Impact Report (the “Project EIR”) and (ii) adopted Resolution No. __-____ on _____, 2017 to certify the Project EIR, making Findings Concerning Mitigation Measures and Alternatives (the “Findings”), adopting a Statement of Overriding Considerations, and adopting a Mitigation Monitoring and Reporting Plan (the “MMRP”), all in accordance with the provisions of the California Environmental Quality Act, California Public Resources Code section 21000 et seq. (“CEQA”). G. One of the principal purposes of this Development Agreement is to further the cooperative relationship between City and Avila Ranch for the benefit of all residents of San Luis Obispo during the implementation of the Project. The City and Avila Ranch join as Parties to this Development Agreement to ensure the requirements of the Development Agreement Statute (California Government Code section 65864 et. seq.) are satisfied. As more fully set forth below, this Development Agreement contains both covenants of a personal nature and covenants and/or servitudes that run with title to the Property. H. This Development Agreement is based upon and was written to achieve these purposes: (1) that the City shall be kept and/or made “whole” by Avila Ranch as to the Property and by other property owners with respect to their respective properties with respect to all aspects (e.g., fiscal impacts, etc.) of the planning, development, maintenance and operation of the AASP Area including, among other things, the costs to the City of providing the Project with public services and facilities, the ATTACHMENT 2 PH 2 - 15 Dr a f t 3 payment of City’s costs associated with the implementation of the Development Agreement, the Entitlements, all other planning and environmental efforts described and envisioned by the Development Agreement, the Subsequent Approvals (as defined in Section 2.04 below) and the Project, and the mitigation of the Project’s environmental impacts. (2) that once this Development Agreement has taken legal effect, Avila Ranch shall have a full and vested right, throughout the term of this Development Agreement, to the Rights and Obligations as to the Property; (3) that this Development Agreement is intended to reduce the uncertainty in planning and implementation for and, and to secure the orderly development of, the Project, ensure a desirable and functional community environment, provide effective and efficient development of public facilities, infrastructure and services appropriate for the development of the Project, ensure maximum effective utilization of resources within the City, and provide other significant benefits to the City and its residents; (4) to secure Project features and Development conditions above and beyond those that may be levied by the City under existing zoning and development regulations and the FEIR; (5) to provide Developer with a reliable and definitive form of reimbursement for offsite and onsite infrastructure beyond its fair share. (6) that this Development Agreement is intended to be consistent with and to implement the City’s General Plan, and more particularly the achievement of the community’s development objectives for the Property as set forth in Policy 8.1.6 of the Land Use Element; (7) that the development of the Project will enable the City to capture sales taxes that are being leaked to other communities because of the jobs-housing imbalance; (8) that the development of the Project would result in the capture of an estimated 540 households that commute to jobs in San Luis Obispo, resulting in the reduction of Countywide vehicle miles traveled for those trips by approximately 4.0 million miles per year; and (9) that the value of the obligations of the Developer pursuant to this Development Agreement are anticipated to be above and beyond those necessary to serve the Project. The Rights and Obligations of the Parties to this Development Agreement shall be construed and interpreted so as shall give full effect to each and all of these purposes. ATTACHMENT 2 PH 2 - 16 Dr a f t 4 I. As used in this Development Agreement, “Rights” shall mean all of the vested and other rights and benefits of the Development Agreement, and the term “Obligations” shall mean all of the duties, obligations, responsibilities and other burdens of the Development Agreement. References to lot numbers in this Development Agreement refer to lots as numbered in Vesting Tentative Tract Map. No. 3089 dated April 26, 2017. J. As used in this Development Agreement, the terms, phrases and words shall have the meanings and be interpreted as set forth in this Development Agreement (the meaning given the term in the singular shall include the term in the plural and vice versa) unless the context clearly indicates the Parties intended another meaning. To the extent that any capitalized terms contained in this Development Agreement are not defined within it, then such terms shall have the meaning ascribed to them in the City Laws, other applicable law or, if no meaning is given a term in any of those sources, the common understanding of the term shall control. AGREEMENT NOW, THEREFORE, in consideration of the promises, covenants and provisions set forth in this Development Agreement, the Parties hereby agree as follows: ARTICLE 1. GENERALLY Section 1.01. Definition of “Avila Ranch.” As used herein, “Avila Ranch” means Avila Ranch, LLC, as that business entity existed on the Effective Date and any permitted successor, assign, or transferee of Avila Ranch, LLC. Section 1.02. Effective Date. This Development Agreement is entered into by and between the City and Avila Ranch and takes legal effect on ______, 2017, the date that Ordinance No.__-___ approving the Development Agreement takes legal effect (“Effective Date”). The terms and conditions of this Development Agreement shall be for the benefit of or a burden upon the Property, shall run with title to the Property, and shall be binding upon Avila Ranch and its permitted successors, assigns and transferees during their respective ownerships of any portion of the Property. Section 1.03. Term. Section 1.03.1. In General. (a) The term of this Development Agreement shall commence upon the Effective Date and shall continue until, and terminate upon, the earliest of the following dates (“Termination Date”): (1) 12:01 a.m. on the anniversary of the Effective Date, 2037, unless Avila Ranch requests, and the City approves, an extension of the Term for an additional 10- year period, in which case the Termination Date shall be 12:01 on the anniversary of the Effective Date, 2047. Such request for extension shall be submitted, in writing, to the City Manager at least 180 days, but no earlier than 365 days, before ATTACHMENT 2 PH 2 - 17 Dr a f t 5 the 2037 Termination Date. The City may deny the request if Avila Ranch is not in compliance with all of its Obligations under this Development Agreement; (2) 12:01 a.m. on the anniversary of the Effective Date, 2024, should Avila Ranch fail to substantially complete the Backbone Infrastructure for Phases 1 and 2 of the Project in accordance with the Project’s Phasing Plan as set forth in Section 6.01 below. As used herin, “substanitially complete” means that all of the Backbone Infrastructure listed in the phasing schedule is actively under construction and is being diligently prosecuted to completion, with all bonds in place. (3) This Development Agreement may be terminated with respect to the property included in a recorded final subdivision map creating residential lots on any portion of the Property, provided that no further on-site or off-site infrastructure is required and no conditions remain to be satisfied before building permits can be issued for the development of lots depicted on that map. Concurrently with or following recordation of such a subdivision map as to any portion of the Property, Avila Ranch may request in writing and the Community Development Director shall not unreasonably withhold a certificate of termination of this Development Agreement, in recordable form, solely as to the property included in such a final recorded map which meets the foregoing requirements; provided that no such certificate need issue if obligations to the City under this Development Agreement remain unfulfilled which are not made conditions of the approval of the subdivision map. Upon the Community Development Director’s recordation of such a certificate, this Development Agreement shall terminate as to the land covered by such final map. If Avila Ranch does not request or the Community Development Director does not issue such a certificate, this Development Agreement shall continue to apply to any lot depicted on such a subdivision map until this Development Agreement otherwise expires or terminates according to its terms. (b) This Development Agreement shall be of no further force, effect or operation upon the Termination Date. Subject to the provisions of Section 8.05 below, in no event shall the expiration or termination of this Development Agreement result in expiration or termination of any Approval without further action of City. Section 1.04. Execution and Recordation of Agreement. Section 1.04.1. Execution and Recordation. Avila Ranch shall execute this Development Agreement in conformance with Section 15.15 of this Development Agreement, within five business days of date of adoption of the Adopting Ordinance referenced in Recital E above. Provided Avila Ranch has so executed this Development Agreement, City shall execute this Agreement, in conformance with Section 15.15 of this Agreement, within five business days of execution of this Development Agreement by Avila Ranch. Section 1.04.2. Recordation. City shall deliver this Development Agreement to the County Recorder for recordation within 10 days following its execution. ATTACHMENT 2 PH 2 - 18 Dr a f t 6 ARTICLE 2. DESCRIPTION OF THE PROJECT Section 2.01. In General. As used herein, “Project” means the development of the Property as described in the “Project Approvals” (defined in Section 2.02 below), including all on-site and off-site “Project Facilities and Infrastructure” (defined in Section 5.02.1 below). Section 2.02. Project Approvals. As used herein, “Project Approvals” include, but are not limited to: (i) those provisions of City’s General Plan that relate to or affect the Property, as the General Plan existed on the Effective Date and as it may be amended from time to time consistently with this Development Agreement (the “General Plan”); (ii) those provisions of the Development Plan (including the Design Guidelines) that relate to or affect the Property, as incorporated into the Specific Plan, as the Development Plan existed on the Effective Date and as it may be amended from time to time consistently with this Development Agreement (the “Development Plan”); (iii) the zoning of the Property, as it existed on the Effective Date and as it may be amended from time to time consistently with this Development Agreement thereafter (the “Zoning”); and (iv) the other entitlements listed in Recital E above; provided that “Project Approvals” shall not mean or include amendments to the General Plan, AASP or Zoning of the Property that conflict with the Project Approvals as they existed on the Effective Date unless Avila Ranch consents in writing to such conflicting amendments. Section 2.03. Subsequent Approvals. As used herein, “Subsequent Approvals” mean those permits and approvals (other than the Project Approvals and amendments thereto) necessary or desirable for the development of the Project including, without limitation, those identified in Section 2.04 below. Section 2.04. Subsequent Approval Documents. The “Subsequent Approvals” defined in Section 2.03 above include, but are not limited to: (i) subdivision maps and related or similar approvals issued under the California Subdivision Map Act; (ii) development permits (including Site Plan Reviews and Conditional Use Permits as described in the Specific Plan); (iii) architectural review and design review approvals (as described in the Specific Plan); (iv) any other discretionary or ministerial permits or approvals of City necessary or appropriate for build-out of the Project and Property; and (vi) any amendments to any of the foregoing necessary or appropriate for the development of the Project. Section 2.05. Approvals. Project Approvals, amendments to Project Approvals, and Subsequent Approvals are sometimes referred to in this Development Agreement collectively as the “Approvals” and each individually as an “Approval.” ARTICLE 3. DEVELOPMENT OF PROJECT IN GENERAL Section 3.01. Consideration to Avila Ranch. The Parties acknowledge and agree that City’s agreement to perform and abide by the covenants and Obligations of City set forth herein is material consideration for Avila Ranch’s agreement to perform and abide by the covenants and Obligations of Avila Ranch set forth herein. ATTACHMENT 2 PH 2 - 19 Dr a f t 7 Section 3.02. Consideration to City. The Parties acknowledge and agree that Avila Ranch’s agreement to perform and abide by the covenants and Obligations of Avila Ranch set forth herein is material consideration for City’s agreement to perform and abide by the covenants and Obligations of City set forth herein. Section 3.03. Rights of Avila Ranch Generally. Avila Ranch shall have a fully vested right to develop the Project and to use the Property consistently with this Development Agreement and Applicable Law. (a) During the Term of this Development Agreement, the Developer shall have a vested right to develop the Property to the full extent permitted by the Entitlements and this Development Agreement. Except as provided within this Development Agreement, the Entitlements shall exclusively control the development of the Property, including the uses of the Property, the density or intensity of use, the maximum height and size of proposed buildings, the provisions for reservation or dedication of land for public purposes and the design, improvement and construction standards and specifications applicable to the Project. The maximum number of residential units authorized to be constructed hereunder and the approximate acreage of commercial development, is 720 residential units and approximately 15,000 square feet of commercial development. In furtherance of the foregoing, the Developer retains the right to apportion the uses, intensities and densities, between itself and any other owners of the Property, upon the sale, transfer or assignment of any portion of the Property, so long as such apportionment is consistent with the Entitlements and this Development Agreement. (b) Subject to the City’s exercise of its police power authority the Developer shall have a vested right to: (i) receive from the City all future development approvals for the Property that are consistent with and implement the Entitlements and this Development Agreement; (ii) not have such approvals be conditioned or delayed for reasons which are inconsistent with the Entitlements or this Development Agreement; and (iii) develop the Property in a manner consistent with such approvals in accordance with the Entitlements and this Development Agreement. All future development approvals for the Property, including without limitation general plan amendments, zoning changes, or parcel maps or tract maps, shall upon approval of the City be vested in the same manner as provided in this Development Agreement as for the Entitlements. Section 3.04. Rights of City Generally. City shall have a right to regulate development of the Project and use of the Property consistently with this Development Agreement and Applicable Law. Section 3.05. Project Parameters. The permitted uses of the Property, the density and intensity of use of the Property, the maximum height and size of buildings included in the Project, and provisions for the reservation and dedication of land shall be as set forth herein and in the Project Approvals. ATTACHMENT 2 PH 2 - 20 Dr a f t 8 ARTICLE 4. APPLICABLE LAW Section 4.01. In General. Section 4.01.1. Applicable Law Defined. Except as the Parties may otherwise agree, the rules, regulations and official policies applicable to the Project and the Property during the Term of this Development Agreement shall be those set forth in this Development Agreement and, except as otherwise set forth herein, the rules, regulations and official policies of City (including the plans, municipal codes, ordinances, resolutions and other local laws, regulations, capital facilities fees and policies of City) in force and effect on the Effective Date (collectively, “Applicable Law”). Section 4.01.2. Approvals as Applicable Law. Applicable Law shall include, without limitation, Approvals as they may be issued from time to time consistently with this Agreement. Section 4.02. Application of Other City Laws. Section 4.02.1. No Conflicting City Laws. (a) City may apply to the Project and the Property any rule, regulation or o fficial policy of City (including any plan, municipal code, ordinance, resolution or other local law, regulation, capital facility fee or policy of City) (each a “City Law”) that does not conflict with Applicable Law or this Agreement. City shall not, however, without the written consent of Avila Ranch, apply to the Project or the Property (whether by initiative, referendum, imposition of mitigation measures under CEQA or otherwise) any City Law that is in conflict with Applicable Law or this Agreement. (b) If City attempts to apply to the Project a City Law which Avila Ranch believes to conflict with Applicable Law or this Agreement, Avila Ranch shall give City written notice describing the legal and factual basis for Avila Ranch’s position. The Parties shall meet and confer within 30 days of City’s receipt of such written notice to seek to resolve any disagreement. If no mutually acceptable solution can be reached, either Party may take such action as may be permitted under Article 12 below. Section 4.03. Uniform Codes and Standard Specifications. (a) Nothing herein shall prevent City from applying to the Project standards contained in uniform building, construction, fire or other uniform codes, as the same may be adopted or amended from time to time by City, provided that the provisions of any such uniform code shall: (1) Apply to the Project only to the extent that such code is in effect on a City-wide basis; and ATTACHMENT 2 PH 2 - 21 Dr a f t 9 (2) With respect to those portions of any such uniform code that have been adopted by City without amendment, be interpreted and applied consistently with the generally prevailing interpretation and application of such code in California. (b) Nothing herein shall prevent City from applying to the Project standards and specifications for public improvements (e.g., streets, storm drainage, parking lots, and driveway widths) adopted or amended from time to time by City, provided that such standards and specifications shall apply to the Project and the Property only to the extent that they are in effect on a City-wide basis. Section 4.04. State and Federal Law. (1) Nothing herein shall prevent City from applying to the Project or the Property any change in City Law required by: (i) state or federal law; or (ii) any governmental agency that, due to the operation of state law (and not the act of City through a memorandum of understanding, joint exercise of powers or other agreement entered into after the Effective Date), has binding legal authority on City. (2) If the application of such changes prevents or precludes performance of one or more provisions of this Development Agreement, City and Avila Ranch shall take any and all such actions as may be necessary or appropriate to ensure the provisions of this Development Agreement shall be implemented to the maximum extent practicable. ARTICLE 5. FINANCIAL COMMITMENTS OF CITY AND AVILA RANCH Section 5.01. In General. This Article 5 establishes a framework for the imposition and allocation to the extent permitted by law of fees, taxes, assessments and other revenues to be generated and/or paid by the Project and/or the Property. The provisions of this Article 5 are intended to prevent the Project from resulting in negative fiscal impacts on City as determined by the fiscal impact analysis prepared for the Project; to facilitate the construction, operation and maintenance of infrastructure and facilities to avoid or limit the physical impacts of development; and to assist in the development of the Project so as to provide long-term fiscal and other benefits to City, including increased employment opportunities, an increased tax base and revenues to City, and an enhanced quality of life for the City’s residents. Section 5.02. Basic Principles. Section 5.02.1. General. (a) This Article 5 is intended to serve two basic purposes: first, that there shall be no cost to City for the construction of the fair share allocation of public facilities and infrastructure needed to serve the Project or the Property or for the provision of municipal services to the Project or the Property, including the operation and maintenance of facilities and infrastructure to serve the Project (collectively, the ATTACHMENT 2 PH 2 - 22 Dr a f t 10 “Project Facilities and Infrastructure”); and second, that all costs associated with the construction of Project Facilities and Infrastructure, and the provision of municipal services to the Project and the Property (including the operation and maintenance of Project Facilities and Infrastructure) shall be borne by the Project alone. (b) The cost of providing Project Facilities and Infrastructure to the Project or the Property shall be consistent with the following principles: Except as otherwise specifically permitted by this Development Agreement and not in limitation of any other provisions hereof, (i) there shall be a reasonable relationship between any municipal cost required to be borne by the Project and the type of development within the Project to which such cost is attributable; (ii) there shall be a reasonable relationship between the need to incur any such municipal cost and the type of development within the Project to which such cost is attributable; (iii) no municipal cost required to be borne by the Project shall exceed the estimated reasonable cost of providing the service or facility to which such municipal cost relates; and (iv) with respect to any fee required to finance Project Facilities and Infrastructure, there shall be a reasonable relationship between the amount of the fee and the cost of the Project Facilities and Infrastructure funded by such fee. Wherever this Development Agreement requires a “reasonable relationship” between the Project and any requirement imposed thereon, there shall be required an essential nexus between the Project and such requirement and rough proportionality in the allocation of a municipal cost or fee both internally to various portions of the Property and as between the Project and other projects within the City. (c) As used herein, the term “Project Facilities and Infrastructure” shall include public facilities and infrastructure only to the extent they serve the Project, and shall not include public facilities or infrastructure to the extent such facilities or infrastructure serve projects or areas other than the Project or the Property, unless the public facilities and infrastructure serving the Project or Property are required to be oversized to serve other projects or areas in accordance with the provisions of Section 6.02.2 below. Section 5.02.2. Financing of Infrastructure; Operation and Maintenance. Prior to or concurrent with the adoption of this Development Agreement City shall in good faith consider establishing and forming a mechanism or mechanisms to finance Project Facilities and Infrastructure and Project-related municipal services or the operation and maintenance portion of the Project Facilities and Infrastructure, such as a Mello-Roos District, Landscaping and Lighting Districts, or other Maintenance Assessment Districts, in accordance with the following principles: (1) The level of municipal services provided to the Project, including the level of operation and maintenance of Project Facilities and Infrastructure, shall be at least equal or superior to the level of service provided elsewhere in the City. ATTACHMENT 2 PH 2 - 23 Dr a f t 11 (2) Any costs associated with such mechanism shall be borne by the Project, which may be reimbursed by the financing mechanism. (3) The City may require as a condition of approval of a tentative subdivision or parcel map a financing mechanism or mechanisms to finance the operation and maintenance of Project Facilities and Infrastructure. (4) In accordance with and subject to Section 7.13.1 below, Avila Ranch shall include within the Covenants, Conditions and Restrictions (CC&Rs) required for each subdivision of the Property a requirement that the Master Homeowners’ Association, and or each Homeowners’ Association for a subdivision within the Property (each, an “HOA”), shall assume responsibilities to maintain, repair and insure the following items in the event that such financing mechanism is dissolved or in the event that the fees, assessments, or taxes generated thereby are repealed or reduced other than by discretionary action by the City Council. In such event the HOA shall assume responsibility to maintain, repair and insure for the publicly-owned facilities within the Property (as to a Master HOA) or subdivision (as to another HOA), including but not limited to, Parks A through F, H and I, and “Stevenson Park”; landscaped parkways and trees; low-impact-development treatment facilities; riparian open space, but expressly shall not assume responsibility to maintain, repair and insure streets, curbs, gutters, sidewalks, regional parks (Park G), farmed agricultural open space, landscape paseos connecting the public parks, retaining walls adjacent to the open space corridors, bike paths, bike path bridges and bike path facilities (including bike paths and bike path facilities in the County). Avila Ranch shall include the City as a third- party beneficiary of these CC&Rs in language acceptable to the City Attorney, which shall grant the City the right to perform the maintenance, repair and insurance obligations and to impose assessments against the affected parcels in the event an HOA fails to perform its obligations under this subparagraph (4). Section 5.03. Establishment of Financing Mechanisms. Section 5.03.1. Procedures for Establishment. The establishment of any mechanism to finance the operation or maintenance of Project Facilities and Infrastructure (each a “Financing Mechanism”) shall be initiated upon Avila Ranch’s written request to the City’s Finance Director. Such request shall outline the purposes for which the Financing Mechanism is to be established and the general terms and conditions upon which the establishment of the Financing Mechanism will be based. City’s consideration of Avila Ranch’s request shall be consistent with the criteria set forth in Section 5.02 above. If Avila Ranch requests the City form a Mello-Roos Community Facilities District to finance the operation or maintenance of Project Facilities and Infrastructure, City shall use its best efforts to cause such district to be formed and special taxes to be levied to the extent permitted by Applicable Law. Section 5.03.2. Nature of City Participation. City’s participation in the formation of any Financing Mechanism approved by City (and its operation thereafter) and in the issuance of any ATTACHMENT 2 PH 2 - 24 Dr a f t 12 Project Debt approved by the City shall include all of the usual and customary municipal functions associated with such tasks including, without limitation, the formation and administration of special districts; the issuance of Project Debt; the monitoring and collection of fees, taxes, assessments, and charges such as utility charges; the creation and administration of enterprise funds; the enforcement of debt obligations and other functions or duties authorized or mandated by Applicable Law. Section 5.04. Imposition of and Increases in Fees, Taxes, Assessments and Other Charges. Section 5.04.1. Taxes and Assessments. (a) During the Term of this Development Agreement, Avila Ranch shall be bound to and shall not protest, challenge, or cause to be protested or challenged, any City tax in effect on the Effective Date. (b) City may apply to the Project or the Property any tax not in effect on the Effective Date only if such tax is: (1) A tax, assessment or fee levied on developed property only (and not on properties for which no final map has been recorded) in connection with the establishment or implementation of a Financing Mechanism in accordance with the provisions of Sections 5.02 or 5.03 above; (2) A tax, assessment or fee to which Avila Ranch agrees; or (3) A tax, assessment or fee levied on a City-wide basis that does not have a disproportionate impact on the Project (e.g., taxes levied to support general obligation bonds, business license taxes). (c) City may increase any tax applicable to the Project or the Property (whether in force and effect as of the Effective Date or not in force and effect as of the Effective Date but imposed against the Project in accordance with this subsection (b)); provided, however, that any taxes or assessments levied or imposed by or through any Financing Mechanism shall be imposed only to the extent necessary to ensure the adequate operation, maintenance, depreciation and replacement of Project Facilities and Infrastructure. (d) No assessment shall be imposed on the Project or the Property other than through a Financing Mechanism as set forth above. (e) No new debt shall be issued that affects the Project or the Property without Avila Ranch’s approval, unless such debt otherwise conform with the requirements of Articles XIII C and D of the California Constitution and any requisite voter approval is achieved, in which case the City may issue debt even if Avila Ranch votes against the matter. ATTACHMENT 2 PH 2 - 25 Dr a f t 13 Section 5.04.2. Other Fees and Charges; Credits and Reimbursements. (a) City shall impose against or apply to the Project or the Property only those financial obligations (other than taxes and assessments) described in this Section 5.04.2. Except as otherwise specifically stated below, any financial obligation imposed against or applied to the Project under this Section 5.04.2 shall be consistent with the provisions of controlling California law, including California Government Code section 66000, et seq., California Constitution, article XIII A and its implementing statutes, Government Code sections 66000 to 66025. (b) The Developer shall be required to pay all City-wide, Airport Area Specific Plan, Los Osos Valley Road Interchange Impact Fees, and Project-specific development impact fees, excluding sewer and water impact fees addressed in section 5.04.2(c) immediately below, for the Project’s fair share of the cost to mitigate Project impacts as identified in the Final Environmental Impact Report (FEIR), Specific Plan, conditions of approval or otherwise specified in the Development Agreement in effect when each final map is recorded in accordance with AB1600 analysis. City may adjust development impact fees not more than once a year with changes no greater than the inflation index identified upon imposition of the fee. (c) The Developer shall be required to pay sewer and water impact fees in accordance with the AB1600 analysis in effect when each Final Map is recorded plus any adjustments based on CPI until issuance of each building permit. Subsequent payments shall be adjusted annually by the inflation index identified upon imposition of the fee as determined by the City. (d) Fees imposed by City, including but not limited to planning, engineering, building permit, fire plan check and development impact fees, but excluding sewer and water impact fees governed by section 5.04.2(c) immediately above, shall be in accordance with the fees in effect as of the date of when the Final Map is recorded plus any adjustments based on the inflation index identified upon imposition of the fee until issuance of each building permit. (e) If the City amends any existing Development Impact Fee (DIF) program to include additional projects or costs for the benefit of the Project (either new projects or increased costs for projects included in the analysis supporting existing fees) for improvements necessary to satisfy Project requirements, Developer will be required to pay the amended fees. Credits applied towards infrastructure costs advanced by Developer shall apply when building permits are issued or fees are otherwise due and shall arise only from Developer-funded construction of infrastructure or community facilities included in the project list on which a particular fee was based. Credits applied when building permits are issued or fees are otherwise due pursuant to this section shall be adjusted for inflation consistently with such adjustments of the fees against which credits are allowed. ATTACHMENT 2 PH 2 - 26 Dr a f t 14 (f) The Developer shall pay all then-current processing fees for any subsequent planning applications and permits as adopted by the City Council. (g) City acknowledges that Developer may dedicate property and install infrastructure improvements beyond its “fair share” cost. The City agrees to grant fee credits and reimbursements, funded by Development Impact Fees paid by Developer and other developers, and traffic impact fees, where eligible, but excluding sewer and water impact fees. If and to the extent that the Developer constructs or installs any infrastructure and/or facilities that have a capacity or size in excess of that required to serve the Project or mitigate its impacts, and one or more undeveloped properties will be benefitted by such infrastructure and facilities, the City shall enter into a reimbursement agreement with the Developer, in a form mutually acceptable to City and Developer, which provides for the reimbursement of all excess costs and expenses incurred by the Developer in constructing such improvements in accordance with Government Code Section 66485 et seq. and in accordance with Section 5.05.3 below. (h) The City’s rates for monthly retail utility service (e.g., water and sewer) may be applied to the Project and increased from time to time during the term of this Development Agreement; provided, however, that any such increase shall be imposed only to the extent permitted by law. (i) Avila Ranch shall pay City reasonable staff and consultant time and other reasonable costs (including reasonable consultant costs) associated with: (i) the MMRP Evaluation and the Development Agreement Review, (ii) the establishment of any Financing Mechanism (to the extent such costs are not included in the Financing Mechanism), including any necessary election costs, and (iii) all other administrative tasks associated with City’s adoption and implementation of this Development Agreement and the Project. (j) Avila Ranch shall pay all required fees of the California Department of Fish and Wildlife (“CDFW”). CDFW fees shall be submitted to the City’s Planning Division before filing of any required Notice of Determination under CEQA, along with any fee required by the County Clerk/Recorder. The City may require proof of payment of such fees before issuing building permits or filing of a Final Subdivision Map. (k) During the term of this Development Agreement, fees and charges other than those specifically described in subsections (a) through (j) above may be imposed against or apply to the Project or the Property only as City and Avila Ranch agree. Section 5.05. Other Commitments of City and Avila Ranch Related to Financing. Section 5.05.1. Arrangements with Other Governmental Agencies. City and Avila Ranch acknowledge and agree that City may from time to time enter into joint exercise of power ATTACHMENT 2 PH 2 - 27 Dr a f t 15 agreements, memoranda of understanding or other agreements with other governmental agencies consistent with and to further the purposes of this Development Agreement. Section 5.05.2. Other Funding Sources. (a) City and Avila Ranch agree to pursue outside sources of funding for the construction, operation and maintenance of Project Facilities and Infrastructure including, in particular, facilities and infrastructure which serve the region. City shall not be obligated, however, to apply for county, state or federal funds if the use of such funds for the Project would reduce the availability of that resource for other City projects. (b) Any obligation of Avila Ranch under this Development Agreement to fund or otherwise bear the costs of the construction of improvements, the provision of services or any other item, whether or not the sole obligation of Avila Ranch, may be satisfied through the use of funds provided by, from or through any third party (including other non-City, governmental) sources. Section 5.05.3. Reimbursement. (a) City shall reimburse, or provide for the reimbursement by other landowners or developers, the actual hard and soft costs associated with Avila Ranch’s funding or construction of that portion of any oversized or accelerated improvements or facilities that is attributable to a project or area other than the Project or Property as required by this section. Hard and soft costs eligible for reimbursement shall include, without limitation: hard costs, such as reasonable direct costs of construction and materials; and soft costs, such as bonds, architecture and engineering fees, and professional fees. Such reimbursement shall be based on a fair share allocation of costs determined by calculating the pro rata share of the capacity in such improvements that is attributable to other projects or properties as reflected in the allocation percentages in Exhibit C, which reimbursement shall be timely provided in accordance with applicable law, following City’s collection of funds from the sources identified in subsection 5.05.3(a)(1)–(4) below. Avila Ranch and City acknowledge that the amounts specified in Exhibit C for each improvement are estimates only and that total reimbursable costs shall be based on Avila Ranch’s actual costs as set forth in this Section 5.05.3. (1) Development Impact Fees paid by the Project for the improvements specified from the AASP impact fees, Los Osos Valley Road Interchange impact fees, or the Citywide transportation impact fees, as applicable; (2) Development Impact Fees paid to the City on behalf of other development in the AASP area that are not committed to repayment obligations under prior Reimbursement Agreements; (3) Development Impact Fees paid to City from developers who contribute to the impact associated with the improvements installed by Avila Ranch; and ATTACHMENT 2 PH 2 - 28 Dr a f t 16 (4) Taxes or assessments in a Community Facilities District. (5) Separate reimbursement agreement. For purposes of such agreement, backbone infrastructure that is larger than the minimum size or standard as identified in the Standard Specifications and Engineering Design Standards may be considered to be oversized and shall be subject to prior review and approval by the City prior to being included in a separate reimbursement agreement. (b) Under no circumstances shall the City be obligated to fund reimbursement from its own resources, from funds it does not yet possess, or from funds which may not be lawfully used for that purpose. (c) Failure or error by the City to collect funds from the sources identified in subsection 5.05.3(a) above shall not subject the City to any liability, obligation, or debt to Avila Ranch. Notwithstanding the foregoing, the City shall reimburse Avila Ranch pursuant to the terms of this Agreement with respect to all such funds actually collected by the City. Failure by the City to reimburse Avila Ranch after the City collects such funds shall entitle Avila Ranch to exercise its remedies in accordance with Article 12. (d) For any improvement subject to reimbursement under this section, Avila Ranch shall provide City with evidence of the actual hard and soft costs of each of the improvements in the form of receipted bills, canceled checks, and contracts. Approval of reimbursement may occur in phases as projects are accepted by City. Regardless of Avila Ranch's claimed costs incurred in constructing the reimbursable improvements, City has the authority, through its Director or designee, in the exercise of his or her reasonable discretion, to determine the amount subject to possible reimbursement for each improvement. (e) In the event any owner or developer pays all or a portion of the fees or assessments identified in subsection 5.05.3(a)(1)–(4) above under protest, the City shall not be required to make reimbursements under this Development Agreement until the limitation period for instituting court action to seek a refund of such funds paid under protest has passed, and no court action (“Action”) has been instituted. If an Action is instituted seeking refund of funds paid under protest, or to prevent the City from collecting such funds, or challenging any provision of this Development Agreement, the City shall not pay over such funds to Avila Ranch until the Action has been finalized and the authority of the City to collect such funds and reimburse the Developer has been sustained. The City shall promptly notify Avila Ranch in writing of the Action. The City shall reasonably support Developer’s efforts to participate as a party to the Action, to defend the Action or settle the Action. Furthermore, the City shall have the right to tender defense of the Action to Avila Ranch. If, within 15 days of the City’s mailing a notice in compliance with Section 15.08 below requesting that Avila Ranch defend the Action, should Avila Ranch thereafter fail to undertake the defense of ATTACHMENT 2 PH 2 - 29 Dr a f t 17 the Action at Avila Ranch’s sole cost and expense, the City may stipulate to return of the funds collected under protest, to cease collecting such funds, or enter into any other settlement of the Action acceptable to the City, and Avila Ranch shall lose any right to reimbursement under this Development Agreement of the amount contested in the Action. Avila Ranch shall further reimburse the City for its costs and attorneys’ fees incurred in defense of the Action, including reasonable payment for legal services performed by the City’s City Attorney, and for any liability the City incurred in the Action. In addition, if the City fails to impose a requirement upon development projects to pay their respective prorated share of the improvements specified in Exhibit C or fails to collect such funds, Avila Ranch may exercise all of its legal rights to attempt to collect such funds from the owners or developers of the benefitted properties, which legal rights shall not be interpreted to include an action against the City. In the event Avila Ranch attempts to collect such funds from such owners or developers, the City shall assign to Avila Ranch all of its rights to collect such funds under this Development Agreement. (f) The City reserves the right to offset any funds it collects from the sources identified in this Section 5.03.3 against any unpaid fees, debts or obligations of Avila Ranch owed to the City. The City shall provide Avila Ranch with notice, in accordance with Section 15.08 and Article 12, of its intent to offset any collected funds against unpaid fees, debts or obligations described in the notice, and provide Avila Ranch with a reasonable opportunity to cure such unpaid fees, debts, or obligations. (g) Avila Ranch’s rights to reimbursement under this Section 5.05.3 shall survive termination of this Development Agreement for a period of 15 years from the date of termination or until Developer has been fully reimbursed, whichever occurs first. Section 5.05.4. Other Shortfalls of City. (a) Avila Ranch understands and acknowledges that the costs to City of serving the Project and the Property and otherwise carrying out its Obligations under this Development Agreement may exceed the fees, charges and revenues generated by or as a result of the Project. Accordingly, prior to or concurrently with this Development Agreement, the City shall establish a Financing Mechanism to mitigate potential annual shortfalls to the City’s General Fund resulting from the provision of municipal services to the Project, the costs of which exceed the General Fund revenues generated by development within the Property (the “General Fund Shortfalls”). The Funding Mechanism shall be designed to remain in place until annual General Fund revenues generated by development within the Property are at least equal to the annual General Fund costs incurred by City in providing municipal services to the Project. ATTACHMENT 2 PH 2 - 30 Dr a f t 18 (b) A Financing Mechanism shall be established to generate revenues sufficient to offset such potential shortfall, if requested by the City, and shall only be effective if a fiscal impact analysis shows a General Fund Shortfall. The shortfall Financing Mechanism may consist of a Mello-Roos Community Facilities District (“CFD”). (c) City may annually monitor the fiscal impacts of development within the Property to determine the extent to which development generates sufficient General Fund Revenues to eliminate the General Fund Shortfall. When and if the City determines as a result of annual monitoring that sufficient development has occurred within the Property to generate General Fund revenues to cover the annual costs to the City’s General Fund of providing municipal services to the Project (the “Break-Even Point”), the shortfall Financing Mechanism shall be discontinued and all revenues that have been collected to fund the projected General Fund Shortfall but have not been used for such purpose shall be refunded to Avila Ranch, if permissible pursuant to Applicable Law, or otherwise used to defray Project Costs in the City’s reasonable discretion and pursuant to law. (d) Avila Ranch’s obligation to fund projected General Fund Shortfalls under Section 5.05.4 above shall be limited by the provisions of Section 5.02.1 above and, in any event, shall not survive the expiration or termination of this Development Agreement. If Developer requests, and City grants, an extension of this Development Agreement as set forth in Section 1.03.1(a)(1) above, Avila Ranch’s obligation to fund projected General Fund Shortfalls shall be extended accordingly. ARTICLE 6. COMMITMENTS OF CITY AND AVILA RANCH RELATED TO PUBLIC IMPROVEMENTS Section 6.01. Backbone Infrastructure Phasing Plan. The Project Backbone Infrastructure is planned to be designed and constructed in six (6) phases. Section 6.01.1. Development Plan Phasing Plan. The improvements described in the Avila Ranch Development Plan and Exhibits E-1 through E-4 to this Development Agreement constitute the Project “Backbone Infrastructure”. The Parties acknowledge that further analysis may result in a more cost-effective approach to the provision of such infrastructure to adequately serve development within the Project Area, and that Exhibits E-1 through E-4 may be revised accordingly by agreement of the Parties and that such revisions shall not require amendment to this Development Agreement. Section 6.01.2. Phasing Plan. The phasing plan for the project is attached to this Agreement as Exhibit D. Section 6.01.3. Phasing Plan Amendments. The Phasing Plan may be amended by agreement of the Parties to take advantage of new technologies, to respond to changes in the underlying land use assumptions upon which the plan is based, or for such other reasons as the Parties may agree. ATTACHMENT 2 PH 2 - 31 Dr a f t 19 Section 6.02. Construction and Dedication of Project Facilities and Infrastructure. Section 6.02.1. Construction and Funding of Project Facilities and Infrastructure by Avila Ranch. The City may, in any manner consistent with the terms and provisions of this Development Agreement, require Avila Ranch to construct or fund the construction of any Project Facilities and Infrastructure when needed to satisfy the Backbone Infrastructure Phasing Plan. Section 6.02.2. Oversizing of Project Facilities and Infrastructure. (a) In addition to requiring Avila Ranch to construct or fund the construction of Project Facilities and Infrastructure, City may require any Project Facilities and Infrastructure constructed or funded by Avila Ranch under Section 6.01 above to be oversized to serve projects or areas other than the Project or the Property; provided that: (i) City shall consider in good faith the establishment of a Financing Mechanism to provide such additional funding; (ii) City shall reimburse the costs associated with Avila Ranch’s funding or construction of that portion of any such oversized improvements that is attributable to projects or areas other than the Project or the Property, pursuant to section 5.05.3 of this Agreement above. (b) If the phasing or incremental construction of facilities would involve significant inefficiencies that are unacceptable to City for a sub-phase implemented by Avila Ranch, Avila Ranch may be required to construct or provide advance funding for the construction of oversized improvements. For example, if the Project generates a need for an 18-inch sanitary sewer line, but other projects reasonably may be expected to use that sewer line and thereby increase the required capacity of such line to 24 inches, City may require Avila Ranch to construct or fund the construction of a 24-inch sewer line (but shall provide reimbursement as described in section 5.05.3 above). Notwithstanding the foregoing, City shall exercise its best good faith efforts to reasonably limit Avila Ranch’s obligation to construct or provide advance funding of oversized improvements and may in certain instances, in the interest of fairness to Avila Ranch, tolerate certain inefficiencies. Section 6.03. Dedications. (a) To the extent rights-of-way or other interests in real property owned by Avila Ranch within the Property are needed for the construction, operation or maintenance of Project Facilities and Infrastructure, Avila Ranch shall dedicate or otherwise convey such rights-of-way or other interest in real property to City, or as necessary to the County of San Luis Obispo. Such rights-of-way shall be ATTACHMENT 2 PH 2 - 32 Dr a f t 20 dedicated or otherwise conveyed in the widths set forth in the AASP or in the Avila Ranch Development Plan. (b) Any public improvements constructed by Avila Ranch and conveyed to City, and any right-of-way or other real property conveyed to City, shall be dedicated or otherwise conveyed (i) free and clear of an y liens unacceptable to the City and (ii) except as otherwise agreed to by City, in a condition free of any toxic materials. Nothing herein shall prevent City’s right to pursue third parties under applicable law. Section 6.04. Cooperation with Respect to Project Facilities and Infrastructure. Section 6.04.1 Off-Site Improvements. Avila Ranch acknowledges that certain off-site improvements are required as part of the project’s conditions of approval and mitigation measures which include, but may not be limited to:(i) a right-of-way along Buckley Road and/or the Buckley Extension; (ii) a right-of-way necessary to implement the Horizon Extension from the project to Suburban Road: (iii) the Earthwood Extension to Suburban; (iv) improvements to Suburban Road between Earthwood and Horizon; (v) improvement of the intersection of Vachell and Venture; (vi) pedestrian improvements along Higuera and Vachell; (vii) intersection improvements at Higuera/Buckley, Los Osos Valley Road/Higuera, Suburban/Higuera, Tank Farm/Higuera, Prado/ Higuera and South/Higuera; and (viii) bicycle improvements required by the City and consistent with the City Bicycle Master Plan, all of which are more particularly described in the Project’s approved plans (the “Off-Site Improvements”). A schedule of all Off- Site Improvements for which Avila Ranch is responsible is attached as Exhibit C to this Agreement. Avila Ranch shall exhaust all reasonable efforts and diligently pursue acquisition of all necessary easements and/or rights of way not currently owned or controlled by City or Avila Ranch which are required to construct the Off-Site Improvements. For purposes of this Section 6.04.1, the term “reasonable efforts” shall include proof that the Avila Ranch has made a commercially reasonable written offer to purchase the property interest at fair market value, in accordance with an appraisal conducted by an MAI appraiser. If after exercising reasonable efforts Avila Ranch is unable to acquire the necessary easements and/or rights of way, City, upon written request of Avila Ranch, may either: (1) require Avila Ranch to construct functionally equivalent alternative improvements to those previously approved, provided that such alternative improvements are equally or more effective in addressing the impact; or (2) pursue acquisition of the real property interests by means of eminent domain.. City and Avila Ranch acknowledge that eminent domain is a discretionary process and that City cannot commit to its use unless and until all appropriate notifications, hearings and proceedings have been undertaken. If City chooses to pursue acquisition of the real property interests by means of eminent domain, City shall take all reasonable steps necessary towards that endeavor, including undertaking appraisals, noticing property owners, noticing and holding required public hearings and meetings, and following any other procedures required for pre-judgment possession and Avila Ranch shall pay all costs reasonably incurred by City related to, arising from, or associated with such acquisition or condemnation proceedings, including but ATTACHMENT 2 PH 2 - 33 Dr a f t 21 not limited to, attorneys' fees, expert witness fees, and jury awards of any kind. In addition, Avila Ranch shall indemnify, defend and hold City harmless from and against any and all claims, liabilities or causes of action of any kind associated with City’s acquisition of such real property interests, excluding therefrom any claims, liabilities or causes of action arising from City’s gross negligence or willful misconduct. If and to the extent this Section 6.04.1 demands more of Avila Ranch than does Section 66462.5 of the Subdivision Map Act, this section shall apply in addition to the Developer’s obligations under that statute. Upon acquisition of the necessary interest in land, or upon obtaining right of entry, either by agreement or court order, Avila Ranch shall commence and complete the public improvements. This requirement shall be included, and, if necessary, detailed, in any subdivision improvement agreement entered between the Developer and the City pursuant to Government Code section 66462. ARTICLE 7. OTHER COMMITMENTS OF CITY AND AVILA RANCH Section 7.01. Mutual Cooperation for Other Governmental Permits. City and Avila Ranch, as appropriate, shall each be responsible to apply to other governmental or quasi-governmental agencies for necessary permits and approvals for development and use of the Property (e.g., agencies having jurisdiction over water supply; wastewater treatment, reuse and disposal; access to the Property; wetlands-related and other biological issues). City and Avila Ranch each shall take any and all actions as may be necessary or appropriate to process successfully such permits and approvals, provided such permits and approvals are consistent with the AASP and agreed by the City and Avila Ranch to be reasonably necessary or desirable for the construction, maintenance or operation of the Project. Section 7.02. Timing of Development. Section 7.02.1. Timing Requirements. (a) Avila Ranch shall be obligated to comply with the terms and conditions of the Project Approvals, the AASP, and this Development Agreement when specified in each. The Parties acknowledge that the rate at which phases of the Project develop depends upon numerous factors and market conditions that are not entirely within Avila Ranch’s or the City’s control such as market demand, interest rates, absorption rates, completion schedules, availability of labor, and other factors. The Parties wish to avoid the result of Pardee Construction Co. v. City of Camarillo, 37 Cal. 3d 465 (1984), where the failure of the parties therein to consider and expressly provide for the timing of development resulted in the court’s determination that a later-adopted initiative restricting the timing of development prevailed over the parties’ agreement. Accordingly, the Parties acknowledge that Avila Ranch shall have the right to develop the Project at such time Avila Ranch deems appropriate in the exercise of its subjective business ATTACHMENT 2 PH 2 - 34 Dr a f t 22 judgment except as provided in this section below and the City shall not attempt to limit or restrict the timing of development of the Project except in accordance with the terms of this Development Agreement. (b) Avila Ranch shall complete the first two phases of development depicted in Exhibit D to this Agreement, including the installation of those certain improvements required under either the Development Plan or FEIR, by seven years after the Effective Date. Otherwise, Avila Ranch may proceed with the development of any portion of the Project, or make any financial commitment associated with any such development when, in Avila Ranch’s sole and absolute discretion, Avila Ranch determines that it is in Avila Ranch’s best financial or other interest to do so. The foregoing sentence shall not, however, limit any obligation of Avila Ranch under this Development Agreement with respect to any development activities that Avila Ranch chooses to undertake hereunder. (c) Avila Ranch shall pursue buildout of the project in conformance with the phasing schedule below. The Parties acknowledge that, except as expressly required by Section 1.03.1(a)(2), the actual timing of buildout will vary from year to year due to a variety of factors such as market demand, economic conditions, etc. Avila Ranch may accelerate buildout of the Project ahead of the schedule so long as there is outstanding indebtedness owed to Avila Ranch for offsite improvements under section 5.05.3 of this Agreement. The Project shall be permitted to develop at a rate up to the cumulative total of 150% of the annual number of dwelling units shown in the phasing schedule immediately below. The Project shall not exceed the cumulative maximum shown for each year in the phasing schedule below, unless authorized by the Community Development Director upon a finding that there is outstanding debt owed to Avila Ranch and that such development and/or rate of development will not exceed the City’s Growth Management Ordinance. Phase 1 Phase 3 Phase 2 Phase 4 Phase 5 Year >>> 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 R-1 101 50 51 R-2 Standard 221 44 44 45 44 44 R-2 Pocket Cottage 76 16 16 15 16 13 R-3-Duplex 38 38 R-3 Town Home 159 52 52 55 R-4 Apartments 125 65 60 Total Subject to Limit 720 60 60 60 125 117 90 52 55 50 51 Maximum Cumulative Limit 90 180 270 458 633 720 Section 7.03. Dedication of Park Lands. Avila Ranch shall dedicate land in excess of that ordinarily required by the City to construct public parks in South San Luis Obispo, an area that presently has a deficiency of park area. In particular, Avila Ranch shall provide 18.25 acres of ATTACHMENT 2 PH 2 - 35 Dr a f t 23 public park land, 1.76 acres in excess of City requirements, to bring the total park acreage for South San Luis Obispo to five and a-half acres per 1,000 persons. Said parks shall be reviewed and approved by the City’s Parks and Recreation Commission before dedication. Ongoing maintenance and operation of these park facilities shall be funded by the Project residents pursuant to a Financing Mechanism established pursuant to Sections 5.03 or 5.04 above and shall not be payable from the General Fund or other community-wide resources. Section 7.04. Dedication of Open Space and Agricultural Lands. To compensate for the loss of onsite agricultural lands and to meet the open space objectives of the General Plan, Avila Ranch shall dedicate at least 50 acres of on-site open space and/or agricultural land and shall preserve at least 50 acres of off-site open space and/or agricultural land. Said lands shall be dedicated within the City’s “Greenbelt” area depicted in Figure 5 of the Conservation and Open Space Element, a copy of which figure is attached here as Exhibit F. The land to be dedicated or reserved may be comprised of multiple properties, and may be located in the City or unincorporated County territory. Avila Ranch may satisfy a portion of this requirement through the payment of an in lieu fee to the City or, with the City’s approval, to a land conservation organization. If land is dedicated in the form of a Conservation Easement, the terms and conditions shall be approved by the City, together with a correspondent and contemporaneous baseline conditions report. If land is to be dedicated in fee simple title, the City shall have the opportunity to conduct due diligence inspections, including but not limited to, Phase I Environmental Site Assessment (and subsequent assessment as may be necessary), title review, and physical site inspections; the City may reject any such dedications based on its due diligence inspections, which shall not be construed as a waiver of the dedication requirements herein. Section 7.05. Affordable Housing and Workforce Housing and related programs. Avila Ranch shall provide affordable housing for the Project as described in Exhibit G. Avila Ranch shall also provide workforce housing and shall implement the local preference “SLO Workers First” program, owner occupancy restrictions and down payment assistance program as described in Exhibit G. Section 7.07. Energy. (a) Avila Ranch shall provide for accelerated compliance with the City’s Energy Conservation Goals and its Climate Action Plan by implementing energy conservation measures significantly above City standards and norms by providing for solar PV energy generation for 100 percent of onsite electrical demand as described in Section 13 of the Development Plan. The Project shall also include energy efficiency standards in excess of the current Building Code. (b) Developer shall provide sustainability features including: (i) housing that meets the 2020 net zero building and energy codes, (ii) implementing any future city- wide policy regarding zero carbon emissions, (iii) solar electric panels, (iv) integrated power outlets for electric vehicles and electric bicycles, (v) building design that maximizes grey water usage, and (vi) work-at-home options with high-speed internet connectivity as described in Section 13 of the Development Plan. ATTACHMENT 2 PH 2 - 36 Dr a f t 24 Section 7.08. Water. (a) Avila Ranch shall provide for accelerated compliance with the Climate Action Plan through by implementing special water conservation measures to reduce the usage of potable water by Avila Ranch households to 35 percent below the current City-wide average as described in Section 13 of the Development Plan. (b) Avila Ranch shall comply with the California Water Code and the regulations imposed by the City before or after the Effective Date in its capacity as the Groundwater Sustainability Agency pursuant to the Sustainable Groundwater Management Act (“SGMA”). (c) Avila Ranch shall install water improvements necessary to serve the Project and future annexation areas of the AASP and County fringe areas in and around Buckley and Broad Streets as shown in Exhibit H. (d) Avila Ranch shall offer to dedicate to the City a well site for future municipal use on Lot 594, 406 or 398, with area buffers acceptable to the City and consistent with drinking water standards. If the water well is located in a public park, the design shall be consistent with the project’s Parks Plan, and may be subject to review and approval by the City Parks and Recreation Commission. The well site shall have a footprint with an area measuring 20’ x 40’, plus a buffer as required by the water code, shown more particularly in Exhibit I. (e) Except as provided in paragraph (b) of this section above, Avila Ranch reserves all groundwater or other water rights with respect to the Property and shall be entitled to irrigate agricultural or open space land with ground or well water, to the extent that such reservation and action does not violate Applicable Law and so long as such water meets or exceeds all applicable water quality standards. Avila Ranch shall have the option, but shall not be required, to connect to the City’s water system to irrigate agricultural/open space land with reclaimed water. Section 7.09. Storm Drain Facilities. Before approval of a Final Subdivision Map or building permit for a use that does not require a map, Avila Ranch shall cause to be provided storm drain facilities adequate to accommodate the storm water runoff from the area subject to the Final Subdivision Map or building permit. Section 7.10. Interim Fire Station. Avila Ranch shall construct, and dedicate to the City, an interim fire station on Lot 302 to serve all property in South San Luis Obispo. Per the requirements of the Fire Station Master Plan, the interim fire station shall be provided at the buildout of the 361st dwelling unit. After the interim fire station has been constructed, the site shall be dedicated to the City for use as a City park or affordable housing site, as deemed appropriate by the City. Avila Ranch shall be entitled to credits against fire development impact fees in an amount reasonably determined by the City’s fiscal impact consultant to reflect (i) the ATTACHMENT 2 PH 2 - 37 Dr a f t 25 value of the land donated to the City under this section and (ii) the lesser of (a) Avila Ranch’s actual cost to improve the interim fire station and (b) the reasonable cost of that construction. Section 7.11. Traffic and Circulation Improvements. Avila Ranch shall construct or fund the traffic and circulation improvements as established in the FEIR and Development Plan as further described in Exhibit C. City and Avila Ranch acknowledge that these improvements are necessary to mitigate project impacts, improve access to and from the project, relieve existing or future traffic deficiencies, and bring such intersections into compliance with the General Plan in advance of impacts associated with the Project. Section 7.12. Bicycle and Multimodal Transportation Improvements. Avila Ranch shall construct or fund the bicycle and multimodal transportation improvements as established in the FEIR and Development Plan as further described in Exhibit J. City and Avila Ranch acknowledge that these improvements are necessary to mitigate Project impacts, improve access to and from the Project, encourage multimodal transportation, relieve existing or future traffic deficiencies, and bring such intersections into compliance with the General Plan in advance of impacts associated with the Project. In addition, if prior to the termination of this Development Agreement, City acquires all or a portion of right of way through the Chevron site immediately adjacent to the Property as contemplated in the City’s Circulation element, Avila Ranch agrees to improve, at its sole cost and expense, subject to reimbursement, such right of way as a Class 1 bicycle facility and pedestrian walkway. Avila Ranch shall be obligated to construct such improvements upon written notice by City that it has acquired all or a portion of the right of way through the Chevron property and such obligation shall survive termination of this Development Agreement. Actual construction of the bicycle and pedestrian improvements shall be coordinated with build-out of the Project, but in no event shall it be later than one year after completion of phase 4 of the Project or City’s written notice to Avila Ranch of its acquisition of such right-of- way, whichever is later. Section 7.13. Miscellaneous. Section 7.13.1. Covenants, Conditions, and Restrictions (CC&Rs). CC&Rs for each subdivision within the Property shall state substantially the following: “This project is within the boundaries of the San Luis Obispo Airport Area Specific Plan, and as such, is subject to design guidelines and development standards which have been incorporated into the Airport Area Specific Plan and the Avila Ranch Development Plan Design Guidelines, both on file with the Community Development Department of the City of San Luis Obispo.” Before the City approves a Final Subdivision Map or issues a building permit for a land use that does not require a Map, the CC&R disclosure statement referenced above shall be provided to the City Attorney for review and approval. Section 7.13.2. Ownership and Maintenance of Public Improvements. Unless otherwise mutually agreed, the City shall own and maintain, or cause to be maintained, the following public improvements: (a) Potable water system and water tank within public properties or public easements; (b) Sanitary sewer system within public properties or public easements; ATTACHMENT 2 PH 2 - 38 Dr a f t 26 (c) Recycled water system within public properties or public easements; (d) Storm drain system, including continuous deflective separation (CDS) vaults or other BMP facilities, within public properties or public easements; (e) Public roadways; (f) Public parks; and, (g) Public access, landscape, and utility easements. Section 7.13.3. Public Utilities Easements. All land subject to public utilities easements (PUEs); public water, sewer, or storm drain easements; and public access easements shall be open and accessible to the City at all times. Section 7.13.4. Design Review of Major Surface Facilities. Design Review shall be completed for all major surface public facilities for which it is required before construction. Section 7.13.5. Design and Construction Standards for Sewer and Water Facilities. All sewer, water and recycled water facilities shall conform to the Design and Construction Standards in effect for the Project when improvement plans are submitted. The submittal shall include all pertinent engineering analysis and design calculations. The plans shall be subject to the Director of Public Works’ review and approval. Section 7.13.6. Communications Requirements. Developer shall provide cable or suitable conduit to each City facility, public park, or other lot designated for City or public use for high speed internet connectivity. The cable or suitable conduit shall be shown on the joint trench improvement plans and constructed before the final lift of asphalt is placed on the adjacent street. ARTICLE 8. CONSIDERATION OF PERMITS AND APPROVALS Section 8.01. In General. Section 8.01.1 Review and Action Generally. Upon Avila Ranch’s submission of any complete application for an Approval together with any fees permitted under Article 5 and required by City in accordance with Applicable Law, City shall use its best efforts to commence and complete promptly and diligently all steps necessary to act on the application. Avila Ranch promptly shall provide to City all information reasonably requested by City for its consideration of any such application. Section 8.01.2. Applicable Law. Except as otherwise specifically provided in this Article 8, all applications for Approvals submitted by Avila Ranch shall be considered by City in accordance with Applicable Law. To the extent an approval would amend Applicable Law as set forth in Section 4.01.1, the aspect of Applicable Law to be amended by the approval shall not apply to the City’s consideration of the application. ATTACHMENT 2 PH 2 - 39 Dr a f t 27 Section 8.02. General Plan and AASP Amendments. The parties anticipate that Avila Ranch may request amendments to the General Plan or the AASP to respond to changing circumstances and conditions. City is not obligated to approve any such application and may, in the exercise of its legislative discretion, approve, deny or propose conditions or modifications thereto, including conditions or modifications that might otherwise be prohibited by the vested rights provided by this Development Agreement. Avila Ranch shall be afforded a reasonable opportunity to review any such proposed conditions and modifications and to withdraw its application for a General Plan amendment or AASP amendment (in which case neither Avila Ranch’s proposed amendments nor the City’s proposed modifications shall become effective). Section 8.03. CEQA Compliance. Section 8.03.01. MMRP Application. When conducting an environmental review of any application for an Approval, City shall review the Mitigation Monitoring and Reporting Program adopted in connection with the Development Plan and Avila Ranch EIR (the “MMRP”) to determine if any mitigation measure contained in the MMRP as to the portion of the Property subject to this Development Agreement should be incorporated into the design of, or added as a condition of approval to, such Approval. Section 8.04. Life of Approvals. Any Approval issued by City, including vesting maps as defined in Section 8.05 below, shall continue in effect without expiration until the later of: (i) the expiration or earlier termination of this Development Agreement or (ii) the date upon which such Approval would otherwise expire under the laws of the State of California. Section 8.05. Vesting Maps. The ordinances, standards and policies applicable to any vesting tentative map, vesting parcel map, vesting subdivision map or any other type of vesting map (“Vesting Map”) under California Government Code section 66474.2, and the ordinances, policies and standards vested under any Vesting Map pursuant to California Government Code section 66498.1(b) shall be those established as Applicable Law under this Agreement. If this Development Agreement terminates before the expiration of any Vesting Map or the vested rights provided thereby, such termination of this Development Agreement shall not affect Avila Ranch’s right to proceed with development under such Vesting Map in accordance with the ordinances, policies and standards so vested under the Vesting Map. Notwithstanding the foregoing, no Vesting Map shall extend Applicable Law beyond the stated term of this Development Agreement (and the rules, regulations and official policies of City applicable to that portion of the Property covered by such Vesting Map shall become those in effect as of the expiration of such term) except as otherwise agreed by City and Avila Ranch; provided, however, that City and Avila Ranch may agree to an extension of the term of this Development Agreement with respect to the area covered by any such Vesting Map. Section 8.06. Need for Flexibility. The provisions of this Development Agreement require a close degree of cooperation between the City and Developer. Implementation of the Project may require minor modifications of the details of the development plan and affect the performance of the Parties to this Development Agreement. The anticipated refinements of the Project and the development of the Property may require that appropriate clarifications and refinements are made to this Development Agreement and the Entitlements with respect to the details of the performance of the City and the Developer. The Parties desire to retain a certain degree of ATTACHMENT 2 PH 2 - 40 Dr a f t 28 flexibility with respect to those items covered in general terms under this Development Agreement. ARTICLE 9. AMENDMENTS Section 9.01. Amendments of Agreement. Section 9.01.1. General. This Development Agreement may be amended from time to time only upon the mutual written consent of City and Avila Ranch and in compliance with section 17.94.190 of the City’s zoning ordinance; provided, however, that in connection with the transfer of any portion of Avila Ranch’s Rights and/or Obligations under this Development Agreement to another person, entity, or organization pursuant to the provisions of Article 13 below, Avila Ranch, such transferee and City may agree that the signature of such transferee may be required to amend this Development Agreement insofar as such amendment would materially alter the Rights and/or Obligations of such transferee hereunder. In no event shall the signature or consent of any “Non-Assuming Transferee” (as defined in Section 13.03 below) be required to amend this Agreement. Section 9.01.2. Future Approvals Do Not Require Amendments to Agreement. Except as the Parties may otherwise agree, no amendment of this Development Agreement shall be required in connection with the issuance of any Approval, or an amendment to the MMRP. Any Approval issued after the Effective Date as to a portion of the Property shall be incorporated automatically into this Development Agreement and vested hereby. City shall not, however, amend or issue any Approval unless Avila Ranch requests such an amendment or issuance from City unless otherwise permitted by this Agreement. ARTICLE 10. ANNUAL REVIEW Section 10.01. Annual Review (a) The Community Development Director shall annually and concurrently conduct (i) the MMRP Evaluation as set forth in Section 11.01; and (ii) the Development Agreement Review as set forth in Section 11.02 (collectively, the “Annual Review”). With respect to the MMRP Evaluation, if the Community Development Director determines that mitigation measures adopted by City in connection with its approval of the AASP and the Zoning are not being implemented as set forth in the MMRP, the Community Development Director shall take any appropriate remedial action as described in Section 11.01 below. Further, the Community Development Director shall incorporate the results of the MMRP Evaluation into the review of any applications for Approvals that are submitted following completion of an Annual Review. (b) Other Investigations and Evaluations. City may from time to time, whether or not as a part of an Annual Review, investigate or evaluate any matter that is properly the subject of an Annual Review. ATTACHMENT 2 PH 2 - 41 Dr a f t 29 ARTICLE 11. MITIGATION MONITORING AND REPORTING PROGRAM EVALUATION; DEVELOPMENT AGREEMENT REVIEW Section 11.01. Mitigation Monitoring and Reporting Program Evaluation. Section 11.01.1 In General. During its Annual Review, City shall evaluate (the “MMRP Evaluation”) whether the mitigation measures adopted by City in connection with its approval of the AASP and the Zoning are being implemented as set forth in the MMRP as to the Property. Section 11.01.2. MMRP Implementation. As set forth in the MMRP, City shall consider in connection with any application for an Approval the extent to which mitigation measures described in the MMRP should be incorporated into the design of the project under consideration or set forth in conditions to the City’s approval of the application. During an MMRP Evaluation, the City shall evaluate its overall success over the prior year in implementing such mitigation measures, as set forth above, and consider any additional steps that may be appropriate to ensure, as Approvals are considered over the following year, successful implementation of such mitigation measures (including, in particular, mitigation measures that are the responsibility of City or other agencies with regulatory authority over the Project). Section 11.01.03. Enforcement. Avila Ranch shall be responsible only for those mitigation measures the City requires to be incorporated into the design of the Project, including those that are attached as conditions to any Approval. Failure to comply with any such design requirement or any condition of approval shall be enforced in any manner authorized by Applicable Law. Section 11.02. Development Agreement Review Section 11.02.01. In General. The Community Development Director shall review this Development Agreement annually as required by section 17.94200 of the City’s zoning ordinance (the “Development Agreement Review”). The Development Agreement Review shall be conducted concurrently with MMRP Evaluation, pursuant to Article 10 above and this Section 11.02. In connection with the Development Agreement Review, Avila Ranch shall provide information as reasonably requested by City. Section 11.02.02. Director’s Findings of Compliance. If the Community Development Director finds good faith compliance by Avila Ranch with this Agreement, the Community Development Director shall issue a “Finding of Development Agreement Compliance,” which shall be in recordable form and may be recorded by Avila Ranch or any “Mortgagee” (as defined in Section 14.01 below). Issuance of a Finding of Development Agreement Compliance and expiration of the appeal period specified below without appeal, or confirmation by the City Council of the issuance of the Finding of Development Agreement Compliance upon such appeal, shall finally determine the Development Agreement Review for the applicable period. Section 11.02.03. Finding of Development Agreement Noncompliance. If the Community Development Director finds that Avila Ranch and/or a Transferee has not complied ATTACHMENT 2 PH 2 - 42 Dr a f t 30 in good faith with this Agreement, the Community Development Director shall proceed as specified in sections 17.94.200–17.94.220 of the City’s zoning ordinance. ARTICLE 12. DEFAULT, REMEDIES, TERMINATION OF DEVELOPMENT AGREEMENT Section 12.01. Defaults. Section 12.01.1. Notice and Cure. (a) Any failure by a Party to perform any term or provision of this Development Agreement, which failure continues uncured for 60 days following written notice of such failure from the other Party (unless such period is extended by written mutual consent), shall constitute a default under this Development Agreement. Any such notice shall specify the nature of the alleged failure and, where appropriate, how such alleged failure may be cured. If the nature of the alleged failure is such that it cannot reasonably be cured within 60 days, then commencement of the cure within that time, and diligent prosecution to completion of the cure thereafter, shall be timely. If the alleged failure is cured, then no default shall exist and the noticing Party shall take no further action and acknowledge the cure in writing to the other Party. If the alleged failure is not cured, then a default shall exist under this Development Agreement and the noticing Party may exercise any of the remedies available under Sections 12.02 through 12.04 below. (b) No failure or delay in giving notice of default shall constitute a waiver of default; provided, however, that the provision of notice and opportunity to cure is a prerequisite to the enforcement or correction of any default. Section 12.01.2. Actions during Cure Period. (a) During any cure period specified under Section 12.01.1 and before delivery of a notice of failure or default, the Party charged shall not be considered in default of this Development Agreement. If there is a dispute as to the existence of a default, the Parties shall otherwise continue to perform their obligations hereunder, to the maximum extent practicable in light of the disputed matter, pending its resolution or formal termination of the Development Agreement. (b) City shall continue to process in good faith applications for Approvals during any cure period, but need not approve any such application if it relates to a development project as to which there is an alleged default hereunder. Section 12.02. Remedies of Non-Defaulting Party. Section 12.02.01. In General. If any Party is in default under the terms of this Development Agreement, the non-defaulting Party may elect, in its sole and absolute discretion, ATTACHMENT 2 PH 2 - 43 Dr a f t 31 to pursue any of the following courses of action: (i) waive such default; (ii) in City’s case, pursue administrative remedies as provided in Section 12.02.3 below, (iii) pursue judicial remedies as provided for in Section 12.02.4 below; and / or (iii) terminate this Development Agreement as and to the extent permitted by Section 12.04 below and consistently with section 17.94.210 and 17.94.220 of the City’s zoning ordinance. In no event shall City modify this Development Agreement as a result of a default by a defaulting Party except in accordance with the provisions of Section 9.01 above. Section 12.02.2. Severability of Default. City acknowledges that the development of the Project may be carried out by more than one person, entity or organization under this Development Agreement (e.g., portions of Avila Ranch’s interest in the Property and this Development Agreement may be transferred to another person, entity or organization, a “Transferee” under Article 13 below). Accordingly, (i) if City determines to terminate or exercise any other remedy under this Development Agreement due to a default by Avila Ranch or any Transferee (hereinafter “Defaulting Developer”), such termination or other remedy shall apply only with respect to the Rights and Obligations of such Defaulting Developer, (ii) City shall, to the extent possible, refrain from seeking any termination of this Development Agreement or other remedy if such remedy would affect materially the ability of a non- defaulting Developer and / or a Transferee (hereinafter “Non-Defaulting Developer”) to realize the Rights provided hereunder, and (iii) any termination of this Development Agreement as to any Defaulting Developer shall be deemed to terminate only those Rights and Obligations arising hereunder between City and such Defaulting Developer. The Parties acknowledge and agree that, in accordance with Article 13 below, more than one Transferee may be responsible for certain actions required or forbidden by this Development Agreement, and that more than one Transferee therefore may be in default with respect thereto. The Parties further acknowledge and agree that, notwithstanding the provisions of (ii) in this Section above, in certain instances it may not be possible for City to exercise remedies against the Defaulting Developer of one portion of the Project without affecting in some way a Non-Defaulting Developer of the same or of some other portion of the Project. Section 12.02.3. Administrative Remedies. Except as otherwise specifically stated in this Development Agreement, City may exercise any and all administrative remedies to the extent necessary or appropriate to secure compliance with this Development Agreement. Such administrative remedies may include, among others, withholding building permits, certificates of occupancy or other Approvals relating to that portion of the Project in default of this Develop Agreement. Section 12.02.04. Judicial Remedies. Except as otherwise specifically stated in this Development Agreement, either Party may, in addition to any other rights or remedies, institute legal action to cure, correct, or remedy any default, enforce any covenant or agreement herein, enjoin any threatened or attempted violation hereof, enforce by specific performance the Obligations and Rights of the Parties hereto or obtain any other remedy consistent with this Development Agreement; provided, however, that in no event shall any person be entitled hereunder to monetary damages for any cause, including breach of contract by a Party to this Development Agreement provided, however, that City may enforce payment obligations under Applicable Law, including this Development Agreement. Nothing in this section shall be deemed ATTACHMENT 2 PH 2 - 44 Dr a f t 32 to limit either Party’s rights under the Government Claims Act, California Government Code sections 810 et seq. For purposes of instituting a legal action under this Agreement, any City Council determination under this Development Agreement shall be deemed final agency action unless expressly stated otherwise. Section 12.03. Termination Due to Default. Section 12.03.1. In General. Either Party may terminate this Development Agreement pursuant to Section 12.04.2 below and sections 17.94.190–17.94.220 of the City’s zoning ordinance in the event of a default by the other Party, provided: (i) such default is prejudicial to the interests of the non-defaulting Party and is neither minor nor technical and (ii) in the case of any termination by City, City first shall have exercised any and all administrative or other remedies short of filing suit available to secure Avila Ranch’s compliance with this Development Agreement. Notwithstanding clause (ii) of this Section 12.03.1 above, City shall not be required, as a prerequisite to initiating the termination of this Development Agreement, to exercise its administrative and other non-judicial remedies for more than 180 days or, if the Parties are making reasonable progress towards resolution of the matter claimed to be a default hereunder, such longer period to which the Parties may agree. Termination of this Development Agreement by Avila Ranch or a Transferee as to any portion or portions of the Property shall not affect the Rights or Obligations of Avila Ranch or any other Transferee as to any other portion or portions of the Property. Section 12.03.2. Procedures for Termination. (a) Before any proposed termination of this Development Agreement pursuant to this Section 12.04, and following the 180-day period specified in Section 12.04.1 above to the extent applicable, a non-defaulting Party intending to seek termination of this Development Agreement shall deliver to the defaulting Party (or Parties) a written “Preliminary Notice of Intent to Terminate” this Development Agreement, and all Parties shall meet and confer in good faith effort to agree upon an alternative to termination that will afford the non-defaulting Party the benefit of its bargain in this Development Agreement. If those discussions are not successful in resolving the dispute, the non-defaulting Party desiring to terminate this Development Agreement shall deliver to the defaulting Party a written “Final Notice of Intent to Terminate” this Development Agreement. (b) Within 60 days after the City delivers a Final Notice of Intent to Terminate to a defaulting Party, the City Council shall review the matter as set forth in California Government Code sections 65865, 65867, and 65868 and sections 17.94.190– 17.94.220 of the City’s zoning ordinance. Termination shall be effective 30 days after such City Council review, unless the default is sooner resolved to the mutual satisfaction of the Parties. ATTACHMENT 2 PH 2 - 45 Dr a f t 33 (c) Within 60 days after Avila Ranch delivers a Final Notice of Intent to Terminate to City, the City Council shall consider whether City should take any further curative action. Termination shall be effective 30 days following such City Council consideration (or 90 days following delivery by Avila Ranch of a Final Notice of Intent to Terminate if the City Council fails to complete its consideration by that date), unless the default is sooner resolved to the mutual satisfaction of the Parties. ARTICLE 13. ASSIGNMENT, TRANSFER AND NOTICE Section 13.01. Assignment of Interests, Rights and Obligations. Avila Ranch may transfer or assign (“Transfer”) all or any portion of its Rights and Obligations under this Development Agreement as to any portion of the Property (the “Transferred Property”) to any person acquiring an interest in such Transferred Property, including, without limitation, purchasers or ground lessees of lots, parcels or facilities on such portion of the Property (a “Transferee”). Any such Transfer shall relieve the transferring party (a “Transferor”) of any and all Rights and Obligations under this Development Agreement insofar as they pertain to the Transferred Property, as provided in this Article 13. Section 13.02. Transfers In General. Section 13.02.1. In General. In connection with any Transfer of all or any portion of the Project or the Property, other than a transfer or assignment to a “Non-Assuming Transferee” as described in Section 13.03 below, or a “Mortgagee” as defined in Section 14.01 below, the Transferor and the Transferee may enter into a written agreement regarding their respective Rights and Obligations in and under this Development Agreement (a “Transfer Agreement”). Any such Transfer Agreement may contain provisions: (i) releasing the Transferor from any Rights and Obligations under this Development Agreement that relate to the Transferred Property, provided the Transferee expressly assumes all such Rights and Obligations, (ii) transferring to the Transferee rights to improve the portion of the Property transferred and any other Rights and Obligations of the Transferor arising under this Agreement, and (iii) addressing any other matter deemed necessary or appropriate in connection with the Transfer. Section 13.02.02. City Review of Release Provisions. (a) A Transferor shall have the right, but not the obligation, to seek City’s consent to those provisions of any Transfer Agreement purporting to release such Transferor from any Rights and Obligations arising under this Development Agreement (the “Release Provisions”). If a Transferor fails to seek City’s consent or City does not consent to any such Release Provisions, then such Transferor may nevertheless transfer to the Transferee any and all Rights and Obligations of such Transferor arising under this Development Agreement (as described in Sections 13.02.1(i) and (ii) above) but, with respect to City, shall not be released from those Rights and Obligations described in the Release Provisions to which City has not consented. If City consents to any Release Provisions, then: (i) the Transferor ATTACHMENT 2 PH 2 - 46 Dr a f t 34 shall be free from any and all Rights and Obligations accruing on or after the date of any Transfer with respect to those Rights and Obligations described in such Release Provisions and (ii) no default hereunder by Transferee with respect to any Rights and Obligations from which the Transferor has been released shall be attributed to the Transferor, nor may such Transferor’s rights hereunder be canceled or diminished in any way by any such default. City may consent, or conditionally consent, to all, none, or some of the Release Provisions. (b) City shall review and consider promptly, reasonably and in good faith any request by a Transferor for City’s consent to any Release Provisions. City’s consent to any such Release Provisions may be withheld only if: (i) reliable evidence supports a conclusion that the Transferee will be unable to perform the Rights and Obligations proposed to be assumed by the Transferee pursuant to the Transfer Agreement, (ii) the Rights and Obligations are not reasonably allocable among particular portions of the Project and Property, such as the Transferred Property, (iii) the Transferor or Transferee fails to provide acceptable security, as and if reasonably requested by City, to ensure the performance of the Rights and Obligations proposed to be assumed by the Transferee pursuant to the Transfer Agreement, or (iv) the Transferor or Transferee fail to provide information reasonably requested by the City to assist it in making the determinations described in this paragraph. In no event shall City unreasonably withhold consent to any Release Provisions. City shall respond within 30 days to any request by a Transferor for consent to any Release Provisions. (c) Subject to the provisions of subsection (b) above, because and to the extent certain obligations arising under this Development Agreement may not reasonably be allocable among portions of the Project, City may refuse to release the Transferor of one portion of the Project from such Rights and Obligations under this Development Agreement even though the Rights and Obligations are being or have been assumed by the Transferee of some other portion of the Project. Section 13.03. Non-Assuming Transferees. Except as otherwise required by a Transferor, the Obligations of a Transferor shall not apply to any purchaser of any property that has been established as a single legal parcel for nonresidential use that does not require any further on-site or off-site infrastructure. The Transferee in such a transaction and the successors and assigns of such a Transferee (“Non-Assuming Transferees”) shall be deemed to have no Obligations under this Agreement, but shall continue to benefit from the Rights provided by this Development Agreement for the duration of its term. Nothing in this section shall exempt any Transferred Property transferred to a Non-Assuming Transferee from payment of applicable fees, taxes and assessments or compliance with applicable conditions of an Approval or with Applicable Law. ARTICLE 14. MORTGAGEE PROTECTION Section 14.01. In General. The provisions of this Development Agreement shall not limit Avila Ranch’s right to encumber the Property or any portion thereof, or any improvement thereon by ATTACHMENT 2 PH 2 - 47 Dr a f t 35 any mortgage, deed of trust or other device securing financing with respect to such portion. City acknowledges that lenders providing such financing and other “Mortgagees” (defined below) may require certain interpretations and modifications of this Development Agreement and agrees upon request, from time to time, to meet with Avila Ranch and representatives of such lenders to negotiate in good faith any such request for an interpretation or modification. City shall not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement. Any person holding a mortgage, deed of trust or other security instrument on all or any portion of the Property made in good faith and for value (each, a “Mortgagee”), shall be entitled to the rights and privileges of this Article 14. Section 14.02. Impairment of Mortgage or Deed of Trust. Except as otherwise specifically stated in the terms of any security instrument held by a Mortgagee, no default under this Development Agreement shall defeat, render invalid, diminish, or impair the lien of any mortgage or deed of trust on the Property made, or other interest in the Property acquired, by any Mortgagee in good faith and for value. Section 14.03. Notice of Default to Mortgagee. If a Mortgagee has submitted a written request to City as specified herein for notice, City shall use its best efforts to provide to such Mortgagee written notification of any failure or default by Avila Ranch in the performance of Avila Ranch’s obligations under this Agreement, which notification shall be provided to such Mortgagee when such notification is delivered to Avila Ranch. Section 14.04. Right of Mortgagee to Cure. Any Mortgagee shall have the right, but not the obligation, to cure any failure or default by Avila Ranch during the cure period allowed Avila Ranch under this Agreement, plus an additional 90 days if, to cure such failure or default, the Mortgagee must obtain possession of the property as by seeking appointment of a receiver or other legal process. Any Mortgagee that undertakes to cure any such failure or default shall provide written notice to City of that fact; provided that no initiation of any such efforts by a Mortgagee shall obligate such Mortgagee to complete or succeed in any such curative efforts. Section 14.05. Liability for Past Defaults or Obligations. Subject to the foregoing, any Mortgagee, including the successful bidder at a foreclosure sale, who comes into possession of the Project or the Property or any part thereof, shall take such property subject to the Rights and Obligations of this Development Agreement and in no event shall any such property be released from any Obligations. Nothing in this Article 14 shall prevent City from exercising any remedy it may have for a default under this Agreement; provided, however, that in no event shall such Mortgagee be liable personally for any defaults or monetary obligations of Avila Ranch arising before such Mortgagee acquires or possesses such property. ARTICLE 15. GENERAL PROVISIONS Section 15.01. Incorporation of Recitals and Exhibits. The Recitals set forth above and the Exhibits A–K attached hereto are incorporated herein as though set forth in full. ATTACHMENT 2 PH 2 - 48 Dr a f t 36 Section 15.02. Project is a Private Undertaking. The development Avila Ranch proposes to undertake is a private development, and Avila Ranch shall exercise full dominion and control over the Project subject only to Avila Ranch’s limitations and Obligations contained in this Agreement. Section 15.03. Cooperation in the Event of Legal Challenge. Section 15.03.1. In General. If any person not party to this Development Agreement institutes any administrative, legal or equitable action or other proceeding challenging the validity of any provision of this Agreement, any Approval or the sufficiency of any review of this Development Agreement or any Approval under CEQA (each a “Third Party Challenge”), the Parties promptly shall meet and confer as to the most appropriate response to such Third Party Challenge; provided, however, that any such response shall be consistent with Sections 15.03.2 and 15.03.3 below. Section 15.03.2. Tender to and Conduct of Defense by Avila Ranch. City shall tender the complete defense of any Third Party Challenge to Avila Ranch, and upon acceptance of such tender by Avila Ranch: (i) Avila Ranch shall indemnify City against any and all fees and costs arising out of the defense of such Third Party Challenge; and (ii) Avila Ranch shall control the defense and/or settlement of such Third Party Challenge and may take any and all actions it deems necessary and appropriate in its sole discretion in connection therewith; provided, however, that Avila Ranch shall seek and secure City’s consent to any settlement of such Third Party Challenge, which consent shall not unreasonably be withheld or delayed. Section 15.03.03. Defense by City. If Avila Ranch should fail to accept City’s tender of defense as set forth in Section 15.03.2 above, City shall defend such Third Party Challenge and control the defense and/or settlement of such Third Party Challenge as City decides (in its sole discretion), and City may take any and all actions it deems necessary and appropriate (in its sole discretion) in connection therewith; provided, however, that City shall seek and secure Avila Ranch’s consent to any settlement of such Third Party Challenge, which consent shall not unreasonably be withheld or delayed. Avila Ranch shall indemnify City against any and all fees and costs arising out of the City’s defense of such Third Party Challenge. Notwithstanding the foregoing, if Avila Ranch determines for any reason that it no longer intends to develop the Project, then it may deliver notice of such determination to City and shall not be liable for any defense costs incurred by City more than 90 days following the delivery of such notice. Section 15.04. Defense and Indemnity. Avila Ranch shall defend and indemnify City from and against any and all damages, claims, costs and liabilities arising out of the personal injury or death of any person, or damage to the property of any person, to the extent such damages, claims, costs or liabilities result from the construction of the Project by Avila Ranch or by Avila Ranch’s contractors, subcontractors, agents or employees, except as caused by the negligence or willful misconduct of City, its officers, employees, contractors, consultants or agents. Nothing in this Section 15.04 shall be construed to mean that Avila Ranch shall defend or indemnify City from or against any damages, claims, costs or liabilities arising from, or alleged to arise from, activities associated with the maintenance or repair by City or any other public agency of improvements that have been offered for dedication and accepted by City or such other public ATTACHMENT 2 PH 2 - 49 Dr a f t 37 agency. City and Avila Ranch may from time to time enter into subdivision improvement agreements, as authorized by the Subdivision Map Act, which agreements may include defense and indemnity provisions different from those contained in this Section 15.04. If any conflict appears between such provisions in any such subdivision improvement agreement and the provisions set forth above, the provisions of such subdivision improvement agreement shall prevail. Section 15.05. Governing Law; Attorneys’ Fees. This Development Agreement shall be construed and enforced in accordance with the laws of the State of California. Venue for any dispute arising under this Agreement lies in the county of San Luis Obispo and Avila Ranch hereby consents to personal jurisdiction there for that purpose. The Parties will cooperate to facilitate venue for any Third Party Challenge set forth in Section 15.03 above in San Luis Obispo County. Should any legal action be brought by either Party because of any default under this Development Agreement or to enforce any provision of this Agreement, or to obtain a declaration of rights hereunder, the prevailing Party shall be entitled to such reasonable and actual attorneys’ fees, and costs as may be fixed by the Court. The standard of review for determining whether a default has occurred under this Development Agreement shall be the standard generally applicable to contractual obligations in California. The terms and provisions of this Section 15.05 shall survive any termination of this Agreement. Section 15.06. Force Majeure. Performance by any Party of its Obligations hereunder shall be excused during any period of “Permitted Delay” as hereinafter defined. For purposes hereof, Permitted Delay shall include delay beyond the reasonable control of the Party claiming the delay (and despite the good faith efforts of such Party) including, but not limited to: (i) acts of God, (ii) civil commotion and acts of terrorism, (iii) riots, (iv) strikes, picketing or other labor disputes, (v) shortages of materials or supplies, (vi) damage to work in progress by reason of fire, floods, earthquake or other casualties, (vii) failure, delay or inability of the other Party to act, (viii) as to Avila Ranch only, the failure, delay or inability of City to provide adequate levels of public services, facilities or infrastructure to the Property, (ix) as to City only, with respect to completion of the Annual Review or processing applications for Approvals, the failure, delay or inability of Avila Ranch to provide adequate information or substantiation as reasonably required to complete the Annual Review or process applications for Approvals; (x) delay caused by restrictions imposed or mandated by governmental entities other than the City; (xi) enactment of conflicting state or federal laws or regulations, (xii) judicial decisions or similar legal incapacity to perform, and (xiii) litigation brought by a third party attacking the validity of this Agreement. Any Party claiming a Permitted Delay shall notify the other Party (or Parties) in writing of such delay within 30 days after the commencement of the delay, which notice (“Permitted Delay Notice”) shall include the estimated length of the Permitted Delay. A Permitted Delay shall be deemed to occur for the time set forth in the Permitted Delay Notice unless a Party receiving the Permitted Delay Notice objects in writing within 10 days after receiving the Permitted Delay Notice. Upon such an objection, the Parties shall meet and confer within 30 days after the date of the objection in a good faith effort to resolve their disagreement as to the existence and length of the Permitted Delay. If no mutually acceptable solution can be reached, either Party may take action as may be permitted under Article 12 above. Section 15.07. Waiver ATTACHMENT 2 PH 2 - 50 Dr a f t 38 Section 15.07.1. Legal Rights. Avila Ranch acknowledges and agrees that the terms and provisions of this Development Agreement specifically permit City in some instances to impose requirements upon the Project that City would not otherwise be able to impose due to a lack of nexus, rough proportionality or reasonable relationship between the Project and such requirement or other reasons. To the extent any such requirement is imposed by City upon the Project consistently with the terms and provisions of this Agreement, Avila Ranch waives any right to challenge judicially the imposition of such requirement by City. Except as otherwise provided in this Section 15.07.1, City shall comply with Applicable Law. Section 15.07.2. Other Rights. While Section 15.07.1 prohibits Avila Ranch from challenging judicially certain City requirements imposed consistently with this Agreement, nothing in this Development Agreement shall be deemed to abrogate or limit, nor be deemed to be a waiver by Avila Ranch of, any right of Avila Ranch (whether arising under the United States Constitution, the California Constitution or otherwise) to request City to refrain from imposing upon Avila Ranch, the Project or the Property any requirement that this Development Agreement permits City so to impose or otherwise petition City with respect to any matter related to the Project or the Property. Section 15.08. Notices. Any notice or communication required hereunder between the Parties must be in writing, and may be given either personally, by facsimile (with original forwarded promptly by regular U.S. Mail) or by Federal Express or other similar courier promising overnight delivery. If personally delivered, a notice or communication shall be deemed to be given and received when delivered to the Party to whom addressed. If given by facsimile transmission, a notice or communication shall be deemed to be given and received upon receipt of the entire document by the receiving Party’s facsimile machine. Notices transmitted by facsimile after 5:00 p.m. on a business day or on a Saturday, Sunday or holiday shall be deemed to have been given and received on the next business day. If given by Federal Express or similar courier, a notice or communication shall be deemed to be given and received when delivered as shown on a receipt issued by the courier. Such notices or communications shall be given to the Parties at their addresses set forth below: If to City to: City Manager City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 (___) ___-____ With a courtesy copy to: City Attorney City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 95330 ATTACHMENT 2 PH 2 - 51 Dr a f t 39 If to Avila Ranch to: Avila Ranch, LLC C/O Andy Mangano, Managing Member 3596 South Broad Street, Suite 140 Telecopy/Facsimile: (___) ___-____ With a courtesy copy to: Meyers Nave Attn: Jon Goetz 707 Wilshire Blvd., 24th Floor Los Angeles, CA 90017 Telecopy/Facsimile: (213) 626-2906 Any Party may at any time, change its address or facsimile number for notice by giving 10 days’ written notice to the other. Section 15.09. No Joint Venture or Partnership. Nothing in this Development Agreement or in any document executed in connection with it shall be construed as creating a joint venture, partnership or any agency relationship between City and Avila Ranch. City shall have no responsibility for public improvements unless and until they are accepted by City in the manner required by law. Section 15.10. Severability. If any provision of this Development Agreement is held invalid, void or unenforceable but the remainder of this Development Agreement can be enforced without failure of material consideration to any Party, then this Development Agreement shall not be affected and shall remain in full force and effect, unless amended by mutual consent of the Parties. Section 15.11. Estoppel Certificate. Any Party and any Mortgagee may, at any time, and from time to time, deliver written notice to the other Party or Parties requesting such Party or Parties to certify in writing that, to the knowledge of the certifying Party: (i) this Development Agreement is in full force and effect and a binding obligation of the Parties, (ii) this Development Agreement has not been amended or modified either orally or in writing, and if so amended, identifying the amendments, and (iii) as of the date of the last Annual Review, the requesting Party (or any Party specified by a Mortgagee) is not in default in the performance of its obligations under this Agreement, or if in default, to describe therein the nature and amount of any such defaults. A Party receiving a request hereunder shall execute and return such certificate or give a written, detailed response explaining why it will not do so within 30 days of receipt of a request. Each Party acknowledges that such a certificate may be relied upon by third parties acting in good faith. A certificate provided by City establishing the status of this Development Agreement shall be in recordable form and may be recorded at the expense of the recording Party. Section 15.12. Further Assurances. Each Party shall execute and deliver to the other Party or Parties all such other further instruments and documents and take all such further actions as may be reasonably necessary to carry out this Development Agreement and the Approvals and to provide and secure to the other Party or Parties the full and complete enjoyment of its Rights hereunder. ATTACHMENT 2 PH 2 - 52 Dr a f t 40 Section 15.13. Construction. (a) All Parties have been represented by counsel in the preparation of this Development Agreement and no presumption or rule that ambiguity shall be construed against a drafting party shall apply to its interpretation or enforcement. Captions on sections and subsections are provided for convenience only and shall not be deemed to limit, amend or affect the meaning of the provision to which they pertain. If any conflict appears between this Development Agreement and the rules, regulations or official policies of City, the provisions of this Development Agreement shall prevail and be deemed to have amended any such conflicting rules, regulation or official policy as of the Effective Date. (b) The Parties intend this Agreement to be consistent with the requirements of Chapter 17.94 of the City’s zoning ordinance and it shall be construed consistently with that intent. Should any conflict arise between this Agreement and that Chapter 17.94 as it exists on the Effective Date, that Chapter 17.94 shall control. Section 15.14. Other Miscellaneous Terms. In construing this Agreement, the singular includes the plural; the masculine gender includes the feminine and the neuter; “shall” is mandatory; “may” is permissive. Section 15.15. Counterpart Execution. This Development Agreement may be executed in any number of counterparts and shall be deemed duly executed when each of the Parties has executed such a counterpart. Section 15.16. Time. Time is of the essence of each and every provision of this Agreement. Section 15.17. Good Faith/Fair Dealing. The Parties agree that a covenant of good faith and fair dealing shall apply to all actions of the Parties. As used herein, this covenant shall mean that the Parties shall act reasonably, and no Party shall do anything which shall have the effect of destroying or injuring the rights of any other Party to receive the benefit of its bargain in this Agreement. Nothing in this Section 15.17 shall detract from the principle of Section 12.02.4 that neither Party shall be entitled to damages for breach of this Agreement. Section 15.18. Exhibits. List of Exhibits: A – Avila Ranch Site Plan B – Legal Description C – Financing Plan D – Phasing Plan E-1 – Backbone Water Infrastructure E-2 – Backbone Wastewater Infrastructure E-3 – Backbone Recycled Water Infrastructure E-4 – Backbone Drainage Infrastructure ATTACHMENT 2 PH 2 - 53 Dr a f t 41 F – Figure 5 of Conservation & Open Space Element G – Affordable/Workforce Housing Plan H – Water Improvements I – Water Well Site Plan J – Bicycle and Multimodal Improvements IN WITNESS WHEREOF, the Parties have executed this Development Agreement as of the Execution Date above. CITY: CITY OF SAN LUIS OBISPO , a municipal corporation By: ______________________________________ Heidi Harmon, Mayor APPROVED AS TO FORM : By: ______________________________________ J. Christine Dietrick, City Attorney AVILA RANCH: [Avila Ranch signature block] ATTACHMENT 2 PH 2 - 54 Dr a f t ATTACHMENT 2 PH 2 - 55 Dr a f t Exhibit A Avila Ranch Site Plan ATTACHMENT 2 PH 2 - 56 Draft AV I L A R A N C H D E V E L O P M E N T P L A N Ma y 2 , 2 0 1 7 #1 0 1 1 0 2 3 A3 Co m p o s i t e S i t e P l a n 0 7 5 1 5 0 30 0 SC A L E : 1 ” = 1 5 0 ’ ( 2 4 ” x 3 6 ” s h e e t ) RE F E R T O A 6 F O R AD D I T I O N A L D E T A I L REFER TO A9 FOR ADDITIONAL DETAIL REFER TO A8 FOR ADDITIONAL DETAIL REFER TO A7 FOR ADDITIONAL DETAIL RE F E R T O A 5 F O R AD D I T I O N A L D E T A I L RE F E R T O A 4 F O R AD D I T I O N A L D E T A I L ATTACHMENT 2 PH 2 - 57 Dr a f t Exhibit B Legal Description ATTACHMENT 2 PH 2 - 58 Dr a f t ATTACHMENT 2 PH 2 - 59 Dr a f t Order Number: 4001-4978499 (LI) Page Number: 7 First American Title LEGAL DESCRIPTION Real property in the City of San Luis Obispo, County of San Luis Obispo, State of California, described as follows: PARCEL A: (A.P.N.: 053-259-004) PARCEL 2 OF THAT CERTAIN CERTIFICATE OF COMPLIANCE NO. COAL 01-0097, RECORDED APRIL 9, 2003 AS INSTRUMENT NO. 2003-035673 OF OFFICIAL RECORDS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: ALL THE REAL PROPERTY LOCATED IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, BEING A PORTION OF THE PARCEL DESCRIBED IN DOCUMENT NO. 2000-070932 AND A PORTION OF THE PARCEL DESCRIBED IN DOCUMENT NO. 2000-070933 SHOWN ON THE MAP RECORDED IN BOOK 81 OF RECORD OF SURVEYS, PAGE 32 IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWESTERN CORNER OF THE PARCEL DESCRIBED IN DOCUMENT NO. 2000-070931 OF OFFICIAL RECORDS AS SHOWN ON SAID MAP, SAID CORNER ALSO BEING A POINT ON THE CENTERLINE OF VACHELL LANE AS SHOWN ON SAID MAP; THENCE IN A SOUTHERN DIRECTION ALONG THE WESTERN LINE OF SAID PARCEL AND SAID CENTERLINE, SOUTH 00° 00' 11" WEST, 666.37 FEET TO THE MOST WESTERN CORNER COMMON TO SAID PARCEL AND THE PARCEL DESCRIBED IN DOCUMENT NO. 2000-070930 OF OFFICIAL RECORDS AS SHOWN ON SAID MAP, SAID COMMON CORNER ALSO BEING ON SAID CENTERLINE OF VACHELL LANE; THENCE LEAVING SAID COMMON CORNER AND SAID POINT ON SAID CENTERLINE IN AN EASTERN DIRECTION ALONG THE LINE COMMON TO SAID PARCELS AS SHOWN ON SAID MAP, NORTH 89° 56' 56" EAST, 662.06 FEET TO THE MOST EASTERN CORNER COMMON TO SAID PARCELS, SAID COMMON CORNER ALSO BEING ON A LINE OF THE PARCEL OF LAND DESCRIBED IN DOCUMENT NO. 2000-070932 OF OFFICIAL RECORDS AND WITNESSED BY A 5/8" REBAR AND CAP RCE 12545 AS SHOWN ON SAID MAP, SAID COMMON CORNER ON SAID LINE ALSO BEING THE TRUE POINT OF BEGINNING; THENCE CONTINUING IN AN EASTERN DIRECTION NORTH 89° 58' 55" EAST, 660.52 FEET TO A POINT ON A LINE COMMON TO SAID PARCEL DESCRIBED IN DOCUMENT NO. 2000-070932 OF OFFICIAL RECORDS AND THE PARCEL DESCRIBED IN DOCUMENT NO. 2002-070933 OF OFFICIAL RECORDS AS SHOWN ON SAID MAP, SAID POINT BEING SOUTH 0° 08' 06" WEST, 666.27 FEET FROM THE MOST NORTHERN CORNER COMMON TO SAID PARCELS AND BEING WITNESSED BY 5/8" REBAR AND CAP RCE 12545 AS SHOWN ON SAID MAP; THENCE CONTINUING IN AN EASTERN DIRECTION NORTH 89° 56' 56" EAST, 183.40 FEET; THENCE IN A SOUTHERN DIRECTION THE FOLLOWING COURSES AND DISTANCES: SOUTH 00° 00' 00" EAST, 470.92 FEET; SOUTH 41° 55' 49" WEST, 63.87 FEET; THENCE IN A WESTERN DIRECTION NORTH 90° 00' 00" WEST, 801.27 FEET TO POINT ON A LINE COMMON TO SAID PARCEL DESCRIBED IN DOCUMENT NO. 2000-070930 OF OFFICIAL RECORDS AND SAID PARCEL DESCRIBED IN DOCUMENT NO. 2000-070932 OF OFFICIAL RECORDS AS SHOWN ON SAID MAP; THENCE IN A NORTHERN DIRECTION ALONG SAID COMMON LINE, NORTH 00° 00' 11" EAST, 518.07 FEET TO THE TRUE POINT OF BEGINNING. PARCEL A-1: ATTACHMENT 2 PH 2 - 60 Dr a f t Order Number: 4001-4978499 (LI) Page Number: 8 First American Title AN EASEMENT FOR ACCESS OVER THE NORTHERLY 30 FEET OF PARCEL 1, AS SAID PARCELS ARE SHOWN DESCRIBED IN CERTIFICATES OF COMPLIANCE'S RECORDED NOVEMBER 29, 2000 AS INSTRUMENT NOS. 2000-070930 AND 070931 OF OFFICIAL RECORDS. PARCEL B:(APN: 053-259-005) PARCEL 1 OF THAT CERTAIN CERTIFICATE OF COMPLIANCE NO. COAL 01-0097, RECORDED APRIL 9, 2003 AS INSTRUMENT NO. 2003-035672 OF OFFICIAL RECORDS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: ALL THE REAL PROPERTY LOCATED IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, BEING A PORTION OF THE PARCEL DESCRIBED IN DOCUMENT NO. 2000-070932 AND A PORTION OF THE PARCEL DESCRIBED IN DOCUMENT NO. 2000-070933 OF OFFICIAL RECORDS SHOWN ON THE MAP RECORDED IN BOOK 81 OF RECORD OF SURVEYS, PAGE 32, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWESTERN CORNER OF THE PARCEL DESCRIBED IN DOCUMENT NO. 2000-070931 OF OFFICIAL RECORDS AS SHOWN ON SAID MAP, SAID CORNER ALSO BEING A POINT ON THE CENTERLINE OF VACHELL LANE AS SHOWN ON SAID MAP; THENCE IN A SOUTHERN DIRECTION ALONG THE WESTERN LINE OF SAID PARCEL AND SAID CENTERLINE, SOUTH 00° 00' 11" WEST, 666.37 FEET TO THE MOST WESTERN CORNER COMMON TO SAID PARCEL AND THE PARCEL DESCRIBED IN DOCUMENT NO. 2000-070930 OF OFFICIAL RECORDS AS SHOWN ON SAID MAP, SAID COMMON CORNER ALSO BEING ON SAID CENTERLINE OF VACHELL LANE; THENCE LEAVING SAID COMMON CORNER AND SAID POINT ON SAID CENTERLINE IN AN EASTERN DIRECTION ALONG THE LINE COMMON TO SAID PARCELS AS SHOWN ON SAID MAP, NORTH 89° 56' 56" EAST, 662.06 FEET TO THE MOST EASTERN CORNER COMMON TO SAID PARCELS, SAID COMMON CORNER ALSO BEING ON A LINE OF THE PARCEL OF LAND DESCRIBED IN DOCUMENT NO. 2000-070932 OF OFFICIAL RECORDS AND WITNESSED BY A 5/8" REBAR AND CAP RCE 12545 AS SHOWN ON SAID MAP; THENCE CONTINUING IN AN EASTERN DIRECTION NORTH 89° 58' 55" EAST, 660.52 FEET TO A POINT ON THE LINE COMMON TO SAID PARCEL OF LAND AND THE PARCEL DESCRIBED IN DOCUMENT NO. 2000-070933 OF OFFICIAL RECORDS AS SHOWN ON SAID MAP, SAID POINT BEING SOUTH 0° 08' 06" WEST, 666.27 FEET FROM THE MOST NORTHERN CORNER COMMON TO SAID PARCELS AND BEING WITNESSED BY 5/8" REBAR AND CAP RCE 12545 AS SHOWN ON SAID MAP; THENCE CONTINUING IN AN EASTERN DIRECTION NORTH 89° 56' 56" EAST, 183.40 FEET; THENCE IN A SOUTHERN DIRECTION THE FOLLOWING COURSES AND DISTANCES: SOUTH 00° 00' 00" EAST, 470.92 FEET; SOUTH 41° 55' 49" WEST, 63.87 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING IN A SOUTHERN DIRECTION THE FOLLOWING COURSES AND DISTANCES: SOUTH 10° 13' 54" WEST, 296.48 FEET; SOUTH 51° 47' 47" WEST, 246.34 FEET; SOUTH 37° 32' 27" WEST, 206.28 FEET; SOUTH 55° 33' 57" WEST, 321.08 FEET; SOUTH 75° 54' 21" WEST, 103.88 FEET TO A POINT ON THE SOUTHERN LINE OF PARCEL DESCRIBED IN DOCUMENT NO. 2000-070932 AS SHOWN ON SAID MAP, SAID POINT ALSO BEING ON THE CENTERLINE OF BUCKLEY ROAD; THENCE IN A WESTERN DIRECTION ALONG SAID SOUTHERN LINE AND SAID CENTERLINE, SOUTH 89° 56' 32" WEST, 725.86 FEET TO THE SOUTHWESTERN CORNER OF SAID PARCEL, SAID CORNER ALSO BEING THE CENTERLINE INTERSECTION POINT OF SAID VACHELL LANE ATTACHMENT 2 PH 2 - 61 Dr a f t Order Number: 4001-4978499 (LI) Page Number: 9 First American Title AND BUCKLEY ROAD AND WITNESSED BY A 5/8" REBAR AND CAP RCE 12545 AS SHOWN ON SAID MAP; THENCE LEAVING SAID SOUTHERN LINE AND SAID CENTERLINE INTERSECTION POINT IN A NORTHERN DIRECTION ALONG THE WESTERN LINE OF SAID PARCEL AND SAID CENTERLINE OF VACHELL LANE, NORTH 00° 00' 10" EAST, 666.37 FEET TO THE MOST WESTERN CORNER COMMON WITH SAID PARCEL DESCRIBED IN DOCUMENT NO. 2000-070930 AS SHOWN ON SAID MAP, SAID COMMON CORNER ALSO BEING ON SAID CENTERLINE OF VACHELL LANE; THENCE LEAVING SAID COMMON CORNER ON SAID CENTERLINE IN AN EASTERN DIRECTION ALONG A LINE COMMON TO SAID PARCELS, NORTH 89° 55' 51" EAST, 662.06 FEET TO THE SOUTHEASTERN CORNER OF SAID PARCEL DESCRIBED IN DOCUMENT NO. 2000-070930 AS SHOWN ON SAID MAP, SAID CORNER BEING COMMON WITH A CORNER OF THE PARCEL OF LAND DESCRIBED IN DOCUMENT NO. 2000-070932 AND WITNESSED BY A 5/8" REBAR AND CAP RCE 12545 AS SHOWN ON SAID MAP; THENCE LEAVING SAID COMMON CORNER IN A NORTHERN DIRECTION ALONG A LINE COMMON TO SAID PARCELS, NORTH 00° 00' 11" EAST, 148.09 FEET TO A POINT, SAID POINT BEING SOUTH 00° 00' 11" WEST, 518.07 FEET FROM THE MOST EASTERN CORNER COMMON TO SAID PARCELS DESCRIBED IN DOCUMENT NO. 2000-070930 AND DOCUMENT NO. 2000- 070931 AS SHOWN ON SAID MAP, SAID COMMON CORNER ALSO BEING ON A LINE OF THE PARCEL OF LAND DESCRIBED IN DOCUMENT NO. 2000-070932 AND WITNESSED BY A 5/8" REBAR AND CAP RCE 12545 AS SHOWN ON SAID MAP; THENCE LEAVING SAID COMMON LINE OF SAID PARCELS, NORTH 90° 00' 00" EAST, 801.27 FEET TO THE TRUE POINT OF BEGINNING. PARCEL C:(APN: 053-259-006) PARCEL 4 OF THAT CERTAIN CERTIFICATE OF COMPLIANCE NO. COAL 01-0097, RECORDED APRIL 9, 2003 AS INSTRUMENT NO. 2003-035675 OF OFFICIAL RECORDS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: ALL THE REAL PROPERTY LOCATED IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA BEING A PORTION OF THE PARCEL DESCRIBED IN INSTRUMENT NO. 2000-70932 AND A PORTION OF THE PARCEL DESCRIBED IN DOCUMENT NO. 2000-70933 AS SHOWN ON A MAP RECORDED IN BOOK 81 OF RECORDS OF SURVEY AT PAGE 32 IN THE OFFICE OF THE COUNTY CLERK/RECORDER OF SAID COUNTY, AND LOT 27 AND LOT 28 OF THE HARFORD'S AND CHAPMAN'S SUBDIVISION AS SHOWN ON A MAP RECORDED IN BOOK 76 OF RECORDS OF SURVEY PAGE 06 IN THE OFFICE OF THE COUNTY CLERK/RECORDER OF SAID COUNTY; BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWESTERN CORNER OF THE PARCEL DESCRIBED IN DOCUMENT NO. 2000-70931 AS SHOWN ON THE MAP RECORDED IN BOOK 81 OF RECORDS OF SURVEY AT PAGE 32 IN THE OFFICE OF COUNTY CLERK/RECORDER OF SAID COUNTY, SAID CORNER ALSO BEING A POINT ON THE CENTERLINE OF VACHELL LANE AS SHOWN ON SAID MAP; THENCE IN AN EASTERN DIRECTION ALONG THE NORTHERN LINE OF SAID PARCEL THE FOLLOWING COURSES AND DISTANCES: N89°58'01"E, 562.91 FEET; N89°58'01"E, 99.15 FEET TO THE MOST NORTHERN CORNER COMMON TO SAID PARCEL AND THE PARCEL OF LAND DESCRIBED IN DOCUMENT NO. 2000-70932 AND WITNESSED BY A 5/8" REBAR AND CAP RCE 12545 AS SHOWN ON SAID MAP; THENCE CONTINUING IN AN EASTERN DIRECTION ALONG THE NORTHERN LINE OF SAID PARCEL DESCRIBED IN DOCUMENT NO. 2000-70932 AS SHOWN ON SAID MAP THE FOLLOWING COURSES AND DISTANCES: N89°58'01"E, 422.12 FEET; N89°59'00"E, 239.94 FEET TO THE MOST NORTHERN CORNER COMMON TO SAID PARCEL AND THE PARCEL OF LAND DESCRIBED IN DOCUMENT NO. 2000-70933 AND WITNESSED BY A 5/8" REBAR AND CAP RCE 12545 AS SHOWN ON SAID MAP, SAID COMMON POINT ALSO BEING THE TRUE POINT OF BEGINNING; THENCE LEAVING SAID NORTHERN LINE IN A SOUTHERN ATTACHMENT 2 PH 2 - 62 Dr a f t Order Number: 4001-4978499 (LI) Page Number: 10 First American Title DIRECTION ALONG A LINE COMMON TO SAID PARCELS, S00°08'06"W, 666.27 FEET TO A POINT, THENCE LEAVING SAID COMMON LINE IN AN EASTERN DIRECTION N89°56'56"E 183.40 FEET; THENCE IN A SOUTHERN DIRECTION THE FOLLOWING COURSES AND DISTANCES: S00°00'00"E, 470.92 FEET; S41°55'49"W, 63.87 FEET; S10°13'54"W, 296.48 FEET; S51°47'47"W, 246.34 FEET; S37°32'27"W, 206.28 FEET; S55°33'57"W, 321.08 FEET; S75°54'21"W, 103.88 FEET TO A POINT ON THE SOUTHERN LINE OF THE PARCEL DESCRIBED IN DOCUMENT NO. 2000-70932 AS SHOWN ON SAID MAP, SAID POINT ALSO BEING ON THE CENTERLINE OF BUCKLEY ROAD; THENCE IN A EASTERN DIRECTION ALONG SAID SOUTHERN LINE AND SAID CENTERLINE N89°56'32"E, 1913.13 FEET TO THE SOUTHEASTERN CORNER OF SAID PARCEL DESCRIBED IN DOCUMENT NO. 2000-70933 AND WITNESSED BY A 5/8" REBAR AND CAP RCE 12545 AS SHOWN ON SAID MAP, SAID CORNER ALSO BEING COMMON WITH THE SOUTHWESTERN CORNER OF LOT 28 OF THE HARFORD'S AND CHAPMAN'S SUBDIVISION AND ON THE CENTERLINE OF BUCKLEY ROAD AS SHOWN ON THE MAP RECORDED IN BOOK 76 OF RECORDS OF SURVEY AT PAGE 06 IN THE OFFICE OF COUNTY CLERK/RECORDER; THENCE CONTINUING IN AN EASTERN DIRECTION ALONG THE SOUTHERN LINE OF SAID LOT 28 AND SAID CENTERLINE OF BUCKLEY ROAD, N89°56'15"E, 1338.18 FEET TO THE SOUTHEASTERN CORNER OF SAID LOT 28 ON SAID CENTERLINE OF BUCKLEY ROAD AS SHOWN ON SAID MAP; THENCE LEAVING SAID SOUTHERN LINE OF LOT 28 AND SAID CENTERLINE OF BUCKLEY ROAD IN A NORTHERN DIRECTION ALONG THE EASTERN LINE OF LOT 28 AS SHOWN ON SAID MAP THE FOLLOWING COURSES AND DISTANCES: N00°07'52"W, 679.75 FEET; N00°07'50"W, 659.36 FEET TO THE MOST EASTERN CORNER COMMON TO SAID LOT 28 AND LOT 27 OF HARFORD'S AND CHAPMAN'S SUBDIVISION AS SHOWN ON SAID MAP; THENCE CONTINUING IN A NORTHERN DIRECTION ALONG THE EASTERN LINE OF LOT 27 AS SHOWN ON SAID MAP N00°08'28"W, 659.15 FEET TO THE NORTHEASTERN CORNER OF LOT 27 AND WITNESSED BY 1-1/4" IRON PIPE LS 3877 AS SHOWN ON SAID MAP; THENCE LEAVING SAID EASTERN LINE OF LOT 27 IN WESTERN DIRECTION ALONG THE NORTHERN LINE OF LOT 27 AND THE NORTHERN LINE OF SAID PARCEL OF LAND DESCRIBED IN DOCUMENT NO. 2000-70933 AS SHOWN ON THE MAP RECORDED IN BOOK 81 OF RECORDS OF SURVEY AT PAGE 32 IN THE OFFICE OF COUNTY CLERK/RECORDED OF SAID COUNTY THE FOLLOWING COURSES AND DISTANCES: S89°57'07"W, 908.62 FEET; S89°56'55"W, 54.74 FEET; S89°56'55"W, 268.94 FEET; S89°55'27"W, 323.68 FEET; S89°54'15"W, 323.27 FEET; S89°59'01"W, 324.32 FEET; S89°55'42"W, 323.55 FEET; S89°59'00"W, 84.04 FEET TO THE TRUE POINT OF BEGINNING. APN: 053-259-004 and 053-259-005 and 053-259-006 ATTACHMENT 2 PH 2 - 63 Dr a f t Exhibit C Financing Plan ATTACHMENT 2 PH 2 - 64 Dr a f t Draft Report Avila Ranch Financing Plan Prepared for: City of San Luis Obispo Prepared by: Economic & Planning Systems, Inc. August 2, 2017 EPS #161181 ATTACHMENT 2 PH 2 - 65 Dr a f t Table of Contents 1. EXECUTIVE SUMMARY .............................................................................................. 1 2. AVILA RANCH PROJECT OVERVIEW ............................................................................... 4 Avila Ranch Development Plan ............................................................................... 4 Project Planning and Regulation .............................................................................. 6 3. SERVICES AND IMPROVEMENTS TO BE FUNDED ................................................................. 7 Municipal Services ................................................................................................ 7 Infrastructure Improvements ................................................................................. 9 4. FUNDING AND FINANCING SOURCES ........................................................................... 11 Avila Ranch Funding Sources ................................................................................ 11 Economic Considerations ..................................................................................... 13 5. IMPLEMENTATION MEASURES AND RELATED ACTIONS ....................................................... 14 Appendices APPENDIX A Avila Ranch Services CFD Preliminary Rate Allocation, Local Area Maintenance and Fiscal Mitigation Combined APPENDIX B Avila Ranch Infrastructure Cost and Allocation Analysis List of Tables Table 1 Sources and Uses of Avila Ranch Infrastructure Financing ..................................... 2 Table 2 Summary of Avila Ranch Services CFD, Preliminary Rate Allocation at Development Stabilization............................................................................. 7 Table 3 Infrastructure Costs by Type of Infrastructure ..................................................... 9 ATTACHMENT 2 PH 2 - 66 Dr a f t Economic & Planning Systems, Inc. 1 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_08-02-17.docx 1. EXECUTIVE SUMMARY The Avila Ranch Financing Plan (Financing Plan) identifies the municipal services and infrastructure required to serve the Avila Ranch Project and describes how these will be funded and/or financed over time. In addition to providing a general description of how required municipal services and infrastructure will be funded, the Financing Plan provides a basis for financial terms included in the Development Agreement and also for the Community Facilities District Rate and Method of Apportionment. The Avila Ranch Project will create a new City neighborhood located at the northeast corner of Buckley Road and Vachell Lane. The Avila Ranch Development Plan allows up to 720 dwelling units; a “Town Center” with 15,000 square feet of local-serving retail and office uses; 18 acres of pocket parks, mini-parks and neighborhood parks; and 53 acres of open space, including riparian corridors and farmed agricultural land. The Financing Plan addresses how the Avila Ranch Project will pay for both municipal services and the infrastructure needed as the new neighborhood is constructed and occupied by new residents and businesses.  Municipal services include both “Citywide” services and also local area maintenance services provide by the City within the Project area. Services covered by the Financial Plan include maintenance responsibilities for bike paths in the County, and fulfillment of airport noise complaint mitigation agreed to between the Airport Land Use Commission, the project, and the San Luis Obispo County Airport. The need for special funding for these services is created, in part, by the Property Tax Sharing Agreement (adopted by the City and the County in 2008) as a part of the area’s annexation to the City that provides no property tax to the City.  Infrastructure needed for the Avila Ranch includes contributions to Citywide, Specific Plan and other subarea development impact fee programs, mitigating impacts upon regional (off- site) infrastructure, and funding “backbone” and subdivision-related improvements within the Project area. Funding for recurring municipal services will be derived from municipal taxes, service charges and fees typically levied by the City augmented by a newly created special tax levied by a Mello- Roos Community Facilities District (CFD) created for the Project Area.  Funding for infrastructure improvements will be derived from a variety of sources including direct developer equity investment to build or contribute to building needed infrastructure improvements. Table 1 presents the “sources and uses” of funding for the range of infrastructure required.  The key source of infrastructure funding will be “developer equity;” it is estimated that the developer will invest an estimated $56.5 million directly in project-related infrastructure, including paying the City’s development impact fees, which will be updated as part of the City’s development impact fee update.  Some of the developer’s investment in City or region-serving infrastructure will be subject to private reimbursement from other benefitting properties or potential impact fee crediting from the City because the developer is either “oversizing” the improvement relative to their nexus-based “fair share” costs, correcting existing deficiencies, or advancing the improvement before its actual need. Because Avila Ranch is located on the periphery of the ATTACHMENT 2 PH 2 - 67 Dr a f t Draft Avila Ranch Financing Plan August 2, 2017 Economic & Planning Systems, Inc. 2 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_08-02-17.docx City, and timing of development is in advance of other development projects in the area, existing infrastructure in both the City and County needs significant upgrading to serve the needs of the Avila Ranch development.  Additionally, Avila Ranch is required to participate in the cost of future cumulative, regional facilities that the development impacts. Participation in these projects will be through mitigation fee payments or participation in City impact fee programs. Table 1 Sources and Uses of Avila Ranch Infrastructure Financing  The City’s (or other development’s) share of City or region-serving infrastructure will be funded by the City’s development impact fees, exactions on other developers, and other City or regional funding sources.  The Avila Ranch CFD may provide an additional source for developer reimbursement and will provide for capital replacement over time, while also providing funding for City services. The preparation of the Financing Plan occurred through a cooperative effort between the Developer team and City staff and their respective consultants, concurrently with preparation of the Avila Ranch Development Plan and related entitlement documents including the Project Environmental Impact Report, the Fiscal Impact Report, the Vesting Tentative Subdivision Map, Development Plan and the Development Agreement. As part of the preparation of the Financing Plan, care has been taken to assure that the financial burdens upon the developer are consistent with the developer’s need for a reasonable return on its equity investment, that CFD special taxes fall within the City’s related property tax burden policy, and that the City has identified sources for its (or other development’s share of infrastructure costs). Type Description Developer or Builder Equity Developer Equity subject to Credits or Reimbursement Community Facilities District Special Taxes City or Regional Sources In-tract Infrastructure Developer builds neighborhood streets and facilities shown in Subdivision Map  Backbone Infrastructure Developer builds major infrastructure serving Specific Plan Area shown in Subdivision Map  Regional Infrastructure Nexus-based share of major infrastructure (EIR Mitigation, etc.) Regional Infrastructure Oversizing of major infrastructure     Citywide or Areawide Infrastructure included in Development Impact Fee Programs Fees paid when building permits issued   Infrastructure Item Table 1 -- Sources and Uses of Avila Ranch Infrastructure Financing Funding Source ATTACHMENT 2 PH 2 - 68 Dr a f t Draft Avila Ranch Financing Plan August 2, 2017 Economic & Planning Systems, Inc. 3 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_08-02-17.docx Finally, the specific actions required to implement and administer the financing mechanisms are identified in Chapter 5, providing guidance as to how the City will proceed with implementation following action on the Entitlement Documents. ATTACHMENT 2 PH 2 - 69 Dr a f t Economic & Planning Systems, Inc. 4 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_08-02-17.docx 2. AVILA RANCH PROJECT OVERVIEW The Avila Ranch Project will create a new City neighborhood within the boundaries of the Airport Area Specific Plan (AASP), and will be regulated by the Development Plan and Specific Plan adopted by the City. The Project site is approximately 150 contiguous acres located at the northeast corner of Buckley Road and Vachell Lane, and includes three separate parcels: APN 053-259-006, APN 053-259-004, and APN 053-259-005. Avila Ranch Development Plan The Avila Ranch Development Plan (Development Plan) allows up to 720 dwelling units; a “Town Center” with 15,000 square feet of local-serving retail and office uses; 18 acres of pocket parks, mini-parks and neighborhood parks; and 53 acres of open space, including riparian corridors and farmed agricultural land. These features are described in the Development Plan text and appendices, and on pages 25-89 of the Development Plan. The Development Plan also calls for community gardens, a bicycle and pedestrian pathway along the Tank Farm Creek riparian corridor, and bike connections to the Chevron Project to the north and the Octagon Barn bike facilities to the southwest. Another key improvement specified in the Development Plan is the extension of Buckley Road to South Higuera Street, consistent with the City’s Circulation Element. Residential Uses The Development Plan includes up to 720 residential units of varied density and type. The R-1 units are proposed to be typical single-family homes with front-loaded and alley-loaded garages. The R-2 portions of the development obtain access from alleys and common driveways limiting direct vehicular access points to residential streets. This circulation design allows many of these R-2 units to front on open space areas or the internal residential collector streets, resulting in attractive landscaped setbacks rather than a series of driveways. These project circulation features along with attention to enhancing streetscapes and corridors with landscaping, utilizing interesting architectural features such as front porches, and maintaining tree-covered sidewalks, and unobstructed views of surrounding open spaces provide the underlying framework for creating a walkable and interconnected neighborhood. The R-3 and R-4 units are included at locations that take advantage of adjacent open spaces, and/or proximity to local jobs, transit, and shopping. Table 2 Avila Ranch Development Plan Residential Use Summary Residential Category Quantity Single Family R-1 101 Single Family R-2 297 Single Family R-3 197 Single Family R-4 125 Total Residential Units 720 ATTACHMENT 2 PH 2 - 70 Dr a f t Draft Avila Ranch Financing Plan August 2, 2017 Economic & Planning Systems, Inc. 5 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_08-02-17.docx Neighborhood Commercial Uses The Neighborhood Commercial area will allow for 15,000 square feet of building area. It will serve as a focal point and activity center for the project, and will provide shared parking for nearby open space and parks uses, bicycle parking and storage facilities, public plazas for gatherings and special events, and transit connections. Because of the nearby retail shopping center on South Higuera Street, this neighborhood center will focus on small-scale convenience items, and possibly provide some professional service office space. Parks and Recreation Uses The Development Plan designates 18 acres of parkland, which exceeds the General Plan parkland requirement of 16.5 acres (10 acres per 1,000 population per the Parks and Recreation element) by 1.5 acres. Proposed facilities include a centrally located 9.5-acre neighborhood park as well as mini-parks, pocket parks, and community gardens. The “Designated Park” area does not include passive open space and recreational trails, which are counted as part of the “designated Open Space.” The neighborhood park will be linked to surrounding neighborhoods, the Tank Farm Creek riparian corridor and to the regional bikeway system by separated Class I bike paths and Class II bike lanes, and special pedestrian/bike bridges over Tank Farm Creek. According to the concept plan approved by the Parks and Recreation Commission, the neighborhood park will include group BBQs, basketball courts, tot lots, baseball diamonds, soccer fields, pickle ball courts, tennis courts, a dog park, a skate park, and a community meeting pavilion area. Eight mini-parks and a pocket park will also serve the neighborhoods. Each will be one-half to 2.5 acres in size and provide facilities such as community gardens, tot lots, passive play areas, BBQ and picnic areas, basketball courts, community gardens, dog park, and PC1 - 15 landscaping. These mini- and pocket parks will serve residents within a two-block radius and fill the few “gaps” in the coverage for the neighborhood park facilities. The mini-parks will be phased with adjacent residential development to provide park facilities for future residents near their homes. Open Space Uses The Open Space designation is intended to preserve undeveloped or minimally developed land for preservation of natural resources, production agriculture and public safety. The Land Use and Circulation Element (“LUCE”) requires 50 percent of the site area to be dedicated as open space, with up to one-third of that amount allowed to be provided offsite. For this 150-acre project site, there would be a minimum requirement of 50 acres of onsite open space, with the remainder to be provided offsite. As proposed, there are 53 acres of open space proposed onsite, which does not include parks and recreational facilities. The balance of the required open space, 22 acres, will be provided offsite through open space or agricultural conservation easements, or through the development impact fee established by the AASP. The Avila Ranch Development Plan designates the following specific areas for open space:  Planning area creeks, to protect and enhance habitat and recreational values;  Agricultural buffer areas outside of the URL along the Buckley Road frontage and the easterly project boundary; ATTACHMENT 2 PH 2 - 71 Dr a f t Draft Avila Ranch Financing Plan August 2, 2017 Economic & Planning Systems, Inc. 6 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_08-02-17.docx  The ACOS Reservation Space in conformance with the ALUP; and  Tank Farm Creek corridor as a linear park, bikeway and passive recreation areas. Project Planning and Regulation The Avila Ranch Project has been designed to be consistent with the City’s General Plan policy framework. The Project will, however, require amendment to the Airport Area Specific Plan, to convert the area from its present commercial designation to a primarily residential area. The foundational and parallel entitlement documents include the following:  General Plan  Zoning Ordinance  Airport Area Specific Plan  Avila Ranch Development Plan  Avila Ranch Environmental Impact Report  Avila Ranch Fiscal Impact Report  Avila Ranch Development Agreement  Tentative Vesting Subdivision Map and Conditions ATTACHMENT 2 PH 2 - 72 Dr a f t Economic & Planning Systems, Inc. 7 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_08-02-17.docx 3. SERVICES AND IMPROVEMENTS TO BE FUNDED The Financing Plan addresses how the Avila Ranch Project will pay for both municipal services and the infrastructure needed as the new neighborhood is constructed and occupied by new residents and businesses. Municipal Services Municipal services include both “Citywide” services and also local area maintenance services provide by the City within the Project area. The need for special funding for these services is created, in part, by the Property Tax Sharing Agreement (adopted by the City and the County in February 2008 as a part of a larger annexation of Airport Area Specific Plan properties) that provides no property tax to the City. The anticipated future municipal services costs have been calculated based on a fiscal impact analysis of the Avila Ranch Project and also a detailed assessment of local area maintenance requirements prepared by City staff in collaboration with the Developer team. Table 2 provides a summary of these municipal services costs which are further documented in Appendix A – Municipal Services Cost Worksheet. Table 2 Summary of Avila Ranch Services CFD, Preliminary Rate Allocation at Development Stabilization Citywide Services The Avila Ranch Project is unique from a fiscal perspective given the fact that the Property Tax Sharing Agreement (with San Luis Obispo County pursuant to Revenue and Tax Code Section 99) adopted when the area was annexed to the City provides no transfer of property taxes to the City. This Agreement was adopted by the City because the area at that time was designated in the City’s General Plan for commercial and industrial uses and these uses were assumed to generate other taxes (sales and use taxes, etc.) that would offset the cost of providing municipal services. The Tax Sharing Agreement follows the framework established in the 1998 Master Agreement and provides that within the AASP annexation area, no annual property tax increment shall be transferred from the County to the City, and all existing and future sales tax accruing from annexed area within the Airport Area are to accrue to the City. Item Local Area Maintenance [1] Fiscal Mitigation City CFD Admin [2] Contract CFD Admin [2]Total Annual Costs in CFD at Buildout $1,168,813 $414,156 $97,500 $33,609 $1,714,079 Annual Cost per Unit at Buildout [3]$1,623 $575 $135 $47 $2,381 Avg. Cost per Unit per Month at Buildout $135 $48 $11 $4 $198 Average Annual Tax Burden 0.28% 0.10% 0.02% 0.01% 0.41% [1] Includes City and County direct costs, and Transportation and Leisure, Cultural & Social Services operating costs. [3] Reflects development of 720 units. Does not currently include commercial. [2] City CFD Admin reflects an FTE to oversee CFD. Contract CFD Admin reflects a 2% charge; to be confirmed. ATTACHMENT 2 PH 2 - 73 Dr a f t Draft Avila Ranch Financing Plan August 2, 2017 Economic & Planning Systems, Inc. 8 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_08-02-17.docx Also, there was a presumption that, in the aggregate and after factoring in existing and projected sales tax revenues, the 2008 620-acre annexation would be fiscally positive. For example, the City and County analysis showed that annexation of the Airport Area would be fiscally beneficial to the City and result in an immediate fiscal "net" revenue (operating revenues less operating costs) of approximately $450,000 upon annexation of the area (largely due to the existing sales base in the area), increasing to $750,000 upon build-out. At the time of annexation in 2008, there were existing sales tax revenues of $300,000 annually in the annexed area, according to the February 2008 Staff Report. Nevertheless, the City and EPS deemed it prudent to evaluate the Avila Ranch project on its own to guard against any future volatility in the sales tax revenues and in light of the fact that a significant shift in land use was being considered related to the rezoning of the Avila Ranch property from business park to residential uses. The Fiscal Impact Analysis prepared for the Avila Ranch Project documented municipal service costs and also the municipal revenues that the Project area is expected to generate as it is constructed and occupied.1 Key citywide services include the following:  General Government  Police protection  Fire protection  Transportation  Leisure, Cultural and Social Services (includes Park and Landscape Maintenance)  Community Development Citywide services provided to the Avila Ranch area are estimated to cost some $1.5 million annually when the Project area is fully developed, before accounting for offsetting municipal revenue. The net expenditures, after accounting for revenues and off-setting local area maintenance services, are estimated to cost the City approximately $414,000 per year.2 Local Area Maintenance The Avila Ranch Specific Plan includes a high standard of infrastructure and public facilities that will require maintenance. City staff and the Developer team have collaborated to develop a detailed assessment of the maintenance requirements of the infrastructure facilities, as documented in Appendix A. Local area maintenance services provided to the Avila Ranch area are estimated to cost approximately $1.1 million annually when the Project area is fully developed. Key services include the following:  Maintenance of parks and greenbelts  Maintenance of residential collectors and arterials, including lighting  Maintenance of the Venture Drive bridge over Tank Farm Creek 1 Avila Ranch Fiscal Impact Analysis, ADE, April 2017 2 Fiscal expenditures reflect the revised fire costs and Avila Ranch’s share. The fire costs were revised subsequent to the ADE analysis referenced above. ATTACHMENT 2 PH 2 - 74 Dr a f t Draft Avila Ranch Financing Plan August 2, 2017 Economic & Planning Systems, Inc. 9 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_08-02-17.docx  Maintenance of storm drains  The Buckley Road bike path (County) and County Airport Sound Abatement services Infrastructure Improvements Infrastructure and municipal facilities required to serve the Project include “Backbone” and “In- tract” Infrastructure as well as “City-serving or regional infrastructure” which is generally located beyond the Project boundary but require improvement (at least in part) due to development of the Project area. These future municipal services costs were estimated by conducting a fiscal impact analysis of the Avila Ranch Project and also a detailed assessment of local area maintenance requirements prepared by City staff in collaboration with the Developer team. Table 3 provides a summary of these infrastructure costs which are further documented in Appendix B – Project Infrastructure Cost Worksheet. Table 3 Infrastructure Costs by Type of Infrastructure Backbone and In-tract Infrastructure The Avila Ranch Project, proposed for a largely undeveloped area, will require the full complement of local infrastructure to serve the Project area including streets and in-street utilities, drainage, parks and trails, and bikeways. These improvements are typically divided into “in-tract” improvements, such as neighborhood streets and utilities, and “backbone” improvements, including collector streets and public facilities (such as parks) that serve the whole project area. Key Backbone Improvements include the following:  Buckley Road Extension from Vachell Lane to South Higuera Street  Venture Road Residential Collector  Tank Farm Creek and Buckley Frontage Bike Path Type of Infrastructure Total Project Costs [1] Transportation $36,804,884 Parks $6,645,500 Water and Sewer $427,500 Public Safety $1,346,250 Intract Improvements $20,896,000 Offsite Improvements $552,000 Total Infrastructure Expenses $66,672,134 Sources: Avila Ranch LLC; City of San Luis Obispo. [1] Total Project Infrastructure costs whether Avila Ranch is building or paying fees. ATTACHMENT 2 PH 2 - 75 Dr a f t Draft Avila Ranch Financing Plan August 2, 2017 Economic & Planning Systems, Inc. 10 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_08-02-17.docx  Horizon Lane Collector south of Suburban  Earthwood Collector  Various Transit Stops Improvements to City-serving and Regional Infrastructure The Avila Ranch project, as it develops, will contribute to the demand for City-serving and region-serving infrastructure improvements, including the following:  Improvements related to Buckley Road along the Project’s frontage  Vachell Lane improvements  Various sidewalk improvements  Intersection improvements at Tank Farm Road/South Higuera and South Street/South Higuera  Horizon Lane south of Tank Farm  Bob Jones Trail Bike Path  Vachell Lane Widening ATTACHMENT 2 PH 2 - 76 Dr a f t Economic & Planning Systems, Inc. 11 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_08-02-17.docx 4. FUNDING AND FINANCING SOURCES Avila Ranch Funding Sources Developer Equity Developer equity will be the primary source of funding for infrastructure improvements needed to serve the Avila Ranch area. Developer (or builder) equity will pay impact and mitigation fees, fund construction of all “in-tract” and “backbone” improvements located within the Avila Ranch area, fund the Project’s “fair share” allocation of off-site “regional” improvements, of which some will be subject to fee credits, and advance funding over and above the “fair share” costs, a portion of which will be subject to reimbursement by the City. It is estimated that total developer equity necessary to fund the backbone and in-tract infrastructure and region-serving infrastructure (including the amount beyond the nexus-based “fair share” amount) is $56.5 million. Participation in Area and Citywide Development Impact Fee Programs The Avila Ranch Project will be subject to the City’s various development impact fee programs, including the existing Airport Area Specific Plan fees, the Citywide Traffic Impact fee, LOVR interchange reimbursement fee, special ad hoc fees for environmental mitigation, and water and sewer connection fees as levied at the time building permits are issued. This obligation typically involves paying the impact fees at the time individual building permits are issued. Additional fees are charged by regional agencies including the local school districts. It is important to note that the current AASP does not include fee categories for residential or retail land uses. During 2017 the City engaged in a comprehensive effort to update and reorganize its impact fees. This update includes the recalculation of existing impact fees (excluding the water and sewer connection charges), the consideration of fees for public safety and other community facilities, and the consolidation and redistribution of cost items included in the City’s area impact fee programs. The AASP impact fee program will need to be revised or replaced to incorporate appropriate fee levels for the Avila Ranch project. Construction and dedication of “in-tract” improvements As is common practice, the developer of Avila Ranch will build in-tract and backbone infrastructure within, and on the periphery of, the Avila Ranch area to the specification of the City as documented in the Tentative Subdivision Map and subsequently dedicate these improvements and underlying lands to the City. “Fair Share” allocation of other improvement costs The development of the Avila Ranch Project will increase traffic on existing roadways and create demand for other City/County infrastructure. Many of these improvements are facilities located beyond the project boundary. This additional demand was studied in detail as part of the Environmental Impact Report (EIR) and the mitigation measures identified to maintain policy- based levels of service on these facilities. The mitigation program includes Avila Ranch completing improvements along Higuera Road, extending Buckley Road from Vachell to Higuera, as well as improving Buckley as it fronts the development, among others. The EIR requires these improvements to be installed ahead of need and improved to the 2035 General Plan buildout configuration to the extent feasible. Consequently, the project will construct improvements that ATTACHMENT 2 PH 2 - 77 Dr a f t Draft Avila Ranch Financing Plan August 2, 2017 Economic & Planning Systems, Inc. 12 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_08-02-17.docx are necessary to correct existing deficiencies and to accommodate traffic and other impacts above and beyond its own impacts. Funding regional improvements above the “Fair Share” allocation The Avila Ranch developer has offered to provide funding for regional improvements beyond the Project boundary, and beyond its fair share to build out the improvement to their ultimate configuration to maximum extent feasible. While not expressly obligated to do so, such additional contribution assures that the regional improvements will be built in a timely and efficient manner, benefiting the developer, the City, and the County. Consequently, there are no improvements that are being funded directly by the City or others. Funding for the costs above the project’s fair share will come from future development impact fees generated by the project itself in the form of AASP, citywide and LOVR impact fees, direct contribution from other projects benefiting from those improvements, and fees generated elsewhere in the City and AASP. In some cases, although a project is eligible for reimbursement, Avila Ranch will carry the full cost burden because a facility is not included in one of the funding mechanisms mentioned above. Development Impact Fee or Exaction Revenue Insofar as other developers/builders are obligated to pay their “fair share” of infrastructure improvements by paying the Citywide and area development impact fees or additional nexus- based “exactions,” a portion of this revenue will be used for reimbursement for investments above “fair share” made by the Avila Ranch developer (or other nearby developers that may advance funding for construction of fee-funded facilities and improvements). Community Facilities District The owners of the property have requested and the City has tentatively agreed to form a Community Facilities District (CFD) subject to Council action for the Avila Ranch area. Such a CFD, pursuant to the Community Facilities District Act of 1982, allows for the levy of a special tax on real property located within the designated boundary of the CFD for a range of purposes including providing funding for municipal services, local area maintenance, and infrastructure. It is common for the special taxes to be used to service municipal bonds issued for the CFD to fund new development-related infrastructure; however, the CFD for Avila Ranch will be used to fund ongoing City services and infrastructure maintenance as described below. Usage of this financing mechanism is warranted for a number of reasons, including that the project provides significantly greater amount of parks space, open space, bike trails, and other amenities than typical of other developments in the City. The Avila Ranch CFD, as currently envisioned, will provide funding for City service costs not covered by existing taxes (i.e., “fiscal mitigation”) and also for funding maintenance of municipal improvements located within the Avila Ranch area. The CFD may also be used as a source of funding to meet the City’s obligation to reimburse developer funding of regional improvements above “fair share” and also as a source for repair and replacement of local area serving facilities (e.g., local streets, drainage and flood protection facilities, and landscaping). Other Funding Sources Funding for the City’s share of regional improvement costs may be derived from a variety of sources typically used by the City to fund infrastructure, including proceeds from federal, State, ATTACHMENT 2 PH 2 - 78 Dr a f t Draft Avila Ranch Financing Plan August 2, 2017 Economic & Planning Systems, Inc. 13 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_08-02-17.docx and regional grants. However, no grants are currently identified and use of grant funding require prevailing wage. Economic Considerations Project Feasibility As a part of achieving new development as envisioned in the City’s General Plan and specified in specific plans or other zoning actions, it is in the interest of the City to cooperate with developers and builders to promote feasibility of new development, i.e., that new development generates economic returns sufficient to attract necessary private equity investment and commercial lending. While market conditions can constrain investment at low points in the business cycle, over the longer terms the type and amount of development authorized by the City and the costs imposed for needed infrastructure and facilities should balance so as not to unnecessarily impede desired development. Financial Burden Measures A variety of methods are used to determine the cost burden placed upon new development associated with providing the necessary infrastructure including in-tract and backbone infrastructure improvements and contributions to City-serving infrastructure through payment of impact fees or other mechanisms. The Avila Ranch Project, given the real estate values created and the total cost of infrastructure improvements, is shown to fall within reasonable levels of financial burden. Incidence of Burdens Depending upon the type of funding relied upon to develop a project, the “incidence” of the burden (who pays?) varies. Equity provided by the developer for project costs including contributions to public infrastructure and facilities is a burden on the equity investors in the project. Special taxes or assessments on real property are a burden on the local homeowners or businesses subject to these taxes or assessments. Excise taxes (e.g., sales taxes, utility taxes, transient occupancy taxes) are a burden on those engaging in purchases of these goods. The City has established CFD policies which place a 1.8 percent “cap” on property tax burdens. The Avila Ranch project is located in County Tax Rate Area (TRA) 003-022 which has a total current tax rate of 1.07225 percent,3 including the basic 1 percent rate plus “overrides” related to voter- approved general obligation bonds and special taxes or assessments. Future additional tax overrides may also be approved in the future. In addition to this policy “cap,” market conditions also influence the amount of tax levied. For example, an increase in the amount of taxes levied on real property will affect a home buyers’ ability to qualify for mortgage financing and in turn, the price they are willing to pay for the new home. In the City of San Luis Obispo, Home Owners Associations’ burdens range from approximately $100 per month (peak phases of Serra Meadows, Toscana, Trillium) to a high of $239 per month at Avivo, a full service condominium project that provides structural replacement, common open space, and community buildings. 3 San Luis Obispo County Auditor-Controller. ATTACHMENT 2 PH 2 - 79 Dr a f t Economic & Planning Systems, Inc. 14 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_08-02-17.docx 5. IMPLEMENTATION MEASURES AND RELATED ACTIONS The Financing Plan will be implemented concurrent with approval and subsequent development of the Avila Ranch area. Key components of implementation will include the following. Development Agreement The Entitlement Documents for the Avila Ranch Project will include a Development Agreement, a contract between the Developer and the City that vests the entitlement over a long term (15 or 20 years) as consideration for extraordinary benefits to be received by the City for granting the vesting. The Avila Ranch Development Agreement largely provides a framework and security for funding the regional infrastructure improvements and the related reimbursement to the Developer for investments that exceed the “fair share” cost allocation for these improvements. Development Impact Fees and Exactions The Avila Ranch Project development will be subject to the City’s development impact fees as they will exist at the time building permits are issued. At the present time, the Project is subject to the City’s water and wastewater connection fees, transportation impact fee, Airport Area Impact Fees, Los Osos Valley Road Interchange Fee, parks fees, and public art in lieu fees. Concurrent with consideration of the Avila Ranch Project, the City is engaged in an effort to update its development impact fees, potentially resulting in the inclusion of new facilities in the Citywide fees and also reallocation of infrastructure items among the area impact fees and the Citywide fees. The Project will also be responsible for building or funding improvements, termed “exactions,” as specified in the Final Environmental Impact Report. The Development Agreement will include further specification regarding the Project’s development impact fee and exaction obligations. Fee Obligations Subject to the terms included in the Development Agreement, new development in the Avila Ranch Project will pay the fees existing at the time building permits are issued, i.e., be subject to the fees that result from the Development Impact Fee Update. Reimbursement Agreement(s) The Avila Ranch Development Agreement will enable and specify the terms and security for reimbursement agreements that will be created for each of the individual regional improvements. Presently, reimbursement agreements are expected for the following off-site, Citywide or regional facilities:  Suburban Widening east of Earthwood  Horizon Collector south of Suburban to Avila Ranch with right-of-way Source of Reimbursement Agreement funding A number of infrastructure improvements are specified in the City’s development impact fee programs and Environmental Impact Fee mitigation measures that the Avila Ranch Developer will fund or build beyond its “fair share” allocation of cost. These contributions will be eligible for reimbursement from fees paid by other developers benefiting from these improvements or from other sources. ATTACHMENT 2 PH 2 - 80 Dr a f t Draft Avila Ranch Financing Plan August 2, 2017 Economic & Planning Systems, Inc. 15 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_08-02-17.docx Projects Eligible for Private Reimbursement Two projects have been identified that may be eligible for private reimbursement. Alternatively, these improvement may be incorporated into the updated Impact Fee Program.  Buckley Road Extension Bike Path  Vachell/Buckley Intersection Control (if installed) Projects Eligible for Impact Fee Credits Insofar as the Developer builds or directly funds infrastructure improvements that are included in one of the City’s development impact fees (e.g., Airport Area, Traffic Impact Fee, etc.), the Developer is eligible to receive a dollar-for-dollar credit against its fee obligations for these improvements. The Development Agreement will specify the precise terms of these fee credits.  South Higuera/South Street NB RT Lane (may occur as a private reimbursement)  Tank Farm/Higuera SB LT and WB LT  South Higuera Sidewalk  Tank Farm Creek Bike Path and Bridges Community Facilities District A CFD, as enabled by the Community Facilities District Act of 1982, allows a local jurisdiction to levy a special tax within a specified area to pay for public services and/or infrastructure needed within the area. Over the past three decades, CFDs have become a common mechanism for cities to fund services and finance development-related infrastructure. The levy of any special tax and any related bond issuance is subject to voter approval, if the area is inhabited approval by two-thirds of the voters in the area is required. If fewer than 12 voters are located in the area, approval by the landowners is required (Avila Ranch area currently has no residential uses). City Policy and Approach The City of San Luis Obispo has not, before this Avila Ranch Project, created any CFDs. The City has, in anticipation of Avila Ranch and other development-related financing requirements, adopted policies and procedures related to CFDs that guide formation of the Avila Ranch CFD. A key policy adopted by the City is that “aggregate” property tax burden within the City should not exceed 1.8 percent of assessed value annually. Funding Capacity The funding capacity of a CFD is based upon the type and amount of development within the bounds of the CFD and the amount of the special tax levied against each parcel. Special taxes levied as part of a CFD must clearly specify a “rate and method of apportionment” which defines the amount of the tax levied on each parcel and how the amount may be increased (indexed) over time to account for inflationary cost increases. Generally, CFD special taxes are limited to a fraction of the 1 percent property tax allowed under Article 13 A of the State Constitution. The funding capacity of the Avila Ranch Project, taking account of the market value of development being created, the existing general and special taxes, and the City’s established special tax “cap” of 1.8 percent, is estimated to be approximately $2.9 million annually. Given market conditions and maximum equivalent HOA rates in the community of $200 per month, and the significant amount of smaller multifamily units, the aggregate tax burden on residential units ATTACHMENT 2 PH 2 - 81 Dr a f t Draft Avila Ranch Financing Plan August 2, 2017 Economic & Planning Systems, Inc. 16 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_08-02-17.docx may limit this capacity to below this maximum, resulting in a funding capacity of approximately $1.7 million per year. Special Tax Components The Avila Ranch CFD is primarily being formed to provide a source for funding Citywide services and the maintenance and replacement of public facilities and infrastructure within the Project area. The “Rate and Method of Apportionment” that will be developed as part of CFD adoption will specify how the Avila Ranch special taxes shall be allocated to these uses. Based upon current cost analysis, the allocation of CFD special tax funding at full development of the Avila Ranch Project area would be as follows:  Citywide Services $414,000  Local Area Maintenance (City) $1.1 million  County Services $66,000  Capital Reimbursement (TBD)  CFD Administration (City) $97,500  CFD Administration (Contract) $33,500 CFD Administration The City will be required to administer the CFD from year to year. Given the nature of the special tax (a fixed tax rate plus an index-based inflator), this administration is quite simple, involving sending documentation to the County Tax Collector as the annual property tax bills are prepared. This service is typically provided by consultants to the City and costs approximately $10,000 to $20,000 per year depending upon the size of the CFD and complexity of the special tax. There will be some additional administration required by the Finance Department to control CFD funds consistent with the terms of the Rate and Method of Apportionment and related financial reporting (in the CAFR, etc.). Formation Process It is anticipated that the CFD formation will be initiated at the time the Avila Ranch Entitlement Documents are considered for adoption by the City Council. The following steps must be accomplished as part of the CFD formation process:  Develop CFD concept and document costs to be funded  Map CFD Boundary and conduct voter determination (occupied area or unoccupied?)  Prepare Rate and Method of Apportionment  Adopt Resolution of Intention  Adopt Resolution of Formation  Conduct election (or obtain landowner approval)  Adopt Ordinance to Levy Special Tax ATTACHMENT 2 PH 2 - 82 Dr a f t APPENDIX A: Avila Ranch Services CFD Preliminary Rate Allocation, Local Area Maintenance, and Fiscal Mitigation Combined ATTACHMENT 2 PH 2 - 83 Draft Ta b l e 1 Su m m a r y o f A v i l a R a n c h S e r v i c e s C F D P r e l i m i n a r y R a t e A l l o c a t i o n a t D e v e l o p m e n t S t a b i l i z a t i o n It e m Lo c a l A r e a Ma i n t e n a n c e [ 1 ] Fi s c a l Mi t i g a t i o n Ci t y C F D Ad m i n [ 2 ] Co n t r a c t C F D Ad m i n [ 2 ] To t a l An n u a l C o s t s i n C F D a t B u i l d o u t $1 , 1 6 8 , 8 1 3 $ 4 1 4 , 1 5 6 $ 9 7 , 5 0 0 $ 3 3 , 6 0 9 $ 1 , 7 1 4 , 0 7 9 An n u a l C o s t p e r U n i t a t B u i l d o u t [ 3 ] $1 , 6 2 3 $5 7 5 $1 3 5 $4 7 $ 2 , 3 8 1 Av g . C o s t p e r U n i t p e r M o n t h a t B u i l d o u t $1 3 5 $4 8 $1 1 $4 $1 9 8 Av e r a g e A n n u a l T a x B u r d e n 0. 2 8 % 0 . 1 0 % 0 . 0 2 % 0 . 0 1 % 0. 4 1 % [1 ] I n c l u d e s C i t y a n d C o u n t y d i r e c t c o s t s , a n d T r a n s p o r t a t i o n a n d L e i s u r e , C u l t u r a l & S o c i a l S e r v i c e s o p e r a t i n g c o s t s . [3 ] R e f l e c t s d e v e l o p m e n t o f 7 2 0 u n i t s . D o e s n o t c u r r e n t l y i n c l u d e c o m m e r c i a l . [2 ] C i t y C F D A d m i n r e f l e c t s a n F T E t o o v e r s e e C F D . C o n t r a c t C F D A d m i n r e f l e c t s a 2 % c h a r g e ; t o b e c o n f i r m e d . Ec o n o m i c & P l a n n i n g S y s t e m s , I n c . 8 / 1 / 2 0 1 7 P: \ 1 6 1 0 0 0 s \ 1 6 1 1 8 1 A v i l a R a n c h \ C F D \ A v i l a R a n c h C F D C o s t R e v i e w 8 - 0 1 - 2 0 1 7 . x l s x ATTACHMENT 2 PH 2 - 84 Draft Ta b l e 2 Av i l a R a n c h S e r v i c e s C F D P r e l i m i n a r y R a t e A l l o c a t i o n , L o c a l A r e a M a i n t e n a n c e a n d F i s c a l M i t i g a t i o n C o m b i n e d An n u a l R e v e n u e / E x p e n d i t u r e To t a l 1 2 3 4 5 6 Pe r U n i t (72 0 U n i t s ) Un i t s 17 9 29 21 4 19 7 10 1 0 Cu m u l a t i v e U n i t s 1 7 9 20 8 42 2 61 9 72 0 72 0 Du r a t i o n / Y e a r s 3 0. 5 2 2 2 Ci t y C o m p o n e n t Lo c a l A r e a M a i n t e n a n c e An n u a l L o c a l A r e a M a i n t e n a n c e C o s t s ($ 1 , 1 0 3 , 2 6 7 ) ( $ 3 1 9 , 7 6 4 ) ( $ 1 0 0 , 7 6 3 ) ( $ 7 7 , 6 6 7 ) ( $ 3 6 5 , 7 0 0 ) ( $ 2 3 9 , 3 7 3 ) $0 ($ 1 , 5 3 2 ) CF D P r o j e c t D e l i v e r y ( A d m i n . C o s t s ) ($ 9 7 , 5 0 0 ) ($ 4 5 , 0 0 0 ) ($ 6 , 7 5 2 ) ($ 5 , 2 0 4 ) ($ 2 4 , 5 0 4 ) ($ 1 6 , 0 4 0 ) $0 ($ 1 3 5 ) To t a l L A M C o m p o n e n t ($ 1 , 2 0 0 , 7 6 7 ) ( $ 3 6 4 , 7 6 4 ) ( $ 1 0 7 , 5 1 5 ) ( $ 8 2 , 8 7 1 ) ( $ 3 9 0 , 2 0 4 ) ( $ 2 5 5 , 4 1 2 ) $0 ($ 1 , 6 6 8 ) Fi s c a l M i t i g a t i o n An n u a l F i s c a l R e v e n u e s $ 8 5 0 , 6 0 5 $ 2 2 6 , 0 9 3 $ 3 7 , 0 4 3 $ 2 2 6 , 7 9 0 $ 2 1 2 , 7 6 0 $ 1 4 1 , 1 2 0 $ 6 , 7 9 7 $ 1 , 1 8 1 An n u a l F i s c a l E x p e n d i t u r e s $ 1 , 5 2 9 , 8 2 5 $ 3 7 7 , 4 7 2 $ 6 1 , 1 5 5 $ 4 5 1 , 2 8 0 $ 4 1 5 , 4 3 0 $ 2 1 2 , 9 8 7 $ 1 1 , 5 0 0 $ 2 , 1 2 5 le s s P a r k a n d L a n d s c a p e M a i n t e n a n c e $2 1 3 , 5 2 8 $ 4 2 , 7 0 6 $ 0 $ 4 0 , 0 3 7 $ 1 3 0 , 7 8 6 $ 0 $ 0 $ 2 9 7 le s s T r a n s p o r t a t i o n $5 1 , 5 3 6 $1 2 , 5 6 5 $2 , 0 5 9 $1 5 , 3 3 4 $1 3 , 9 8 5 $7 , 1 7 0 $4 2 3 $7 2 Re v i s e d S u b t o t a l , F i s c a l E x p e n d i t u r e s $1 , 2 6 4 , 7 6 1 $ 3 2 2 , 2 0 1 $ 5 9 , 0 9 6 $ 3 9 5 , 9 0 9 $ 2 7 0 , 6 5 9 $ 2 0 5 , 8 1 7 $ 1 1 , 0 7 7 $ 1 , 7 5 7 Ne t F i s c a l I m p a c t ($ 4 1 4 , 1 5 6 ) ( $ 9 6 , 1 0 8 ) ( $ 2 2 , 0 5 3 ) ( $ 1 6 9 , 1 1 9 ) ( $ 5 7 , 8 9 9 ) ( $ 6 4 , 6 9 7 ) ( $ 4 , 2 8 0 ) ( $ 5 7 5 ) CF D C a l c u l a t i o n s To t a l C i t y C o s t s i n C F D ( L A M a n d F i s c a l ) $1 , 6 1 4 , 9 2 3 $ 4 6 0 , 8 7 2 $ 1 2 9 , 5 6 8 $ 2 5 1 , 9 9 0 $ 4 4 8 , 1 0 4 $ 3 2 0 , 1 0 9 $4 , 2 8 0 $ 2 , 2 4 3 Ad m i n i s t r a t i v e C h a r g e ( a t 2 % ) $3 2 , 2 9 8 $9 , 2 1 7 $2 , 5 9 1 $5 , 0 4 0 $8 , 9 6 2 $6 , 4 0 2 $8 6 $4 5 To t a l C F D C o s t s ( A n n u a l ) $1 , 6 4 7 , 2 2 1 $ 4 7 0 , 0 9 0 $ 1 3 2 , 1 5 9 $ 2 5 7 , 0 3 0 $ 4 5 7 , 0 6 6 $ 3 2 6 , 5 1 2 $4 , 3 6 6 $ 2 , 2 8 8 Cu m u l a t i v e C F D C o s t s $4 7 0 , 0 9 0 $ 6 0 2 , 2 4 9 $ 8 5 9 , 2 7 9 $ 1 , 3 1 6 , 3 4 4 $ 1 , 6 4 2 , 8 5 6 $ 1 , 6 4 7 , 2 2 2 Cu m u l a t i v e A n n u a l C F D C o s t p e r D U $2 , 6 2 6 $2 , 8 9 5 $2 , 0 3 6 $2 , 1 2 7 $2 , 2 8 2 $2 , 2 8 8 Cu m u l a t i v e M o n t h l y C F D C o s t p e r D U $2 1 9 $2 4 1 $1 7 0 $1 7 7 $1 9 0 $1 9 1 $ 1 9 1 De v e l o p m e n t V a l u e b y P h a s e $4 1 4 , 3 6 0 , 2 0 0 $ 1 1 8 , 0 5 0 , 5 0 0 $ 1 9 , 1 2 5 , 5 0 0 $ 9 9 , 3 2 0 , 5 0 0 $ 1 0 0 , 1 7 4 , 5 0 0 $ 7 7 , 6 8 9 , 2 0 0 $ 4 , 5 0 0 , 0 0 0 Cu m u l a t i v e D e v e l o p m e n t V a l u e $1 1 8 , 0 5 0 , 5 0 0 $ 1 3 7 , 1 7 6 , 0 0 0 $ 2 3 6 , 4 9 6 , 5 0 0 $ 3 3 6 , 6 7 1 , 0 0 0 $ 4 1 4 , 3 6 0 , 2 0 0 $ 4 1 8 , 8 6 0 , 2 0 0 $ 5 8 1 , 7 5 0 Av e r a g e A n n u a l C F D T a x B u r d e n b y P h a s e 0. 4 0 % 0. 4 4 % 0. 3 6 % 0. 3 9 % 0. 4 0 % 0. 3 9 % 0 . 3 9 % Co u n t y C o m p o n e n t Lo c a l A r e a M a i n t e n a n c e ($ 6 5 , 5 4 6 ) ( $ 1 3 , 4 2 5 ) ( $ 1 3 , 7 2 1 ) ( $ 1 6 , 0 5 0 ) ( $ 1 4 , 7 7 5 ) ( $ 7 , 5 7 5 ) $0 ($ 9 1 ) Co m b i n e d C F D C a l c u l a t i o n s To t a l C o s t s ( w i t h C o u n t y ) i n C F D $1 , 6 8 0 , 4 6 9 $ 4 7 4 , 2 9 7 $ 1 4 3 , 2 8 9 $ 2 6 8 , 0 4 0 $ 4 6 2 , 8 7 9 $ 3 2 7 , 6 8 4 $4 , 2 8 0 $ 2 , 3 3 4 Ad m i n i s t r a t i v e C h a r g e ( a t 2 % ) $3 3 , 6 0 9 $9 , 4 8 6 $2 , 8 6 6 $5 , 3 6 1 $9 , 2 5 8 $6 , 5 5 4 $8 6 $4 7 To t a l C F D C o s t s ( A n n u a l ) $1 , 7 1 4 , 0 7 9 $ 4 8 3 , 7 8 3 $ 1 4 6 , 1 5 5 $ 2 7 3 , 4 0 1 $ 4 7 2 , 1 3 6 $ 3 3 4 , 2 3 8 $4 , 3 6 6 $ 2 , 3 8 1 Cu m u l a t i v e C F D C o s t s $4 8 3 , 7 8 3 $ 6 2 9 , 9 3 8 $ 9 0 3 , 3 3 9 $ 1 , 3 7 5 , 4 7 5 $ 1 , 7 0 9 , 7 1 3 $ 1 , 7 1 4 , 0 7 9 Cu m u l a t i v e A n n u a l C F D C o s t p e r D U $2 , 7 0 2 . 7 0 $ 3 , 0 2 8 . 5 5 $2 , 1 4 1 $2 , 2 2 2 $2 , 3 7 5 $2 , 3 8 1 Cu m u l a t i v e M o n t h l y C F D C o s t p e r D U $2 2 5 $2 5 2 $1 7 8 $1 8 5 $1 9 8 $1 9 8 $ 1 9 8 De v e l o p m e n t V a l u e b y P h a s e $4 1 4 , 3 6 0 , 2 0 0 $ 1 1 8 , 0 5 0 , 5 0 0 $ 1 9 , 1 2 5 , 5 0 0 $ 9 9 , 3 2 0 , 5 0 0 $ 1 0 0 , 1 7 4 , 5 0 0 $ 7 7 , 6 8 9 , 2 0 0 $ 4 , 5 0 0 , 0 0 0 Cu m u l a t i v e D e v e l o p m e n t V a l u e $1 1 8 , 0 5 0 , 5 0 0 $ 1 3 7 , 1 7 6 , 0 0 0 $ 2 3 6 , 4 9 6 , 5 0 0 $ 3 3 6 , 6 7 1 , 0 0 0 $ 4 1 4 , 3 6 0 , 2 0 0 $ 4 1 8 , 8 6 0 , 2 0 0 $ 5 8 1 , 7 5 0 Av e r a g e A n n u a l C F D T a x B u r d e n b y P h a s e 0. 4 1 % 0. 4 6 % 0. 3 8 % 0. 4 1 % 0. 4 1 % 0. 4 1 % 0 . 4 1 % Co s t A l l o c a t i o n p e r U n i t p e r M o n t h $2 2 5 . 2 3 $ 2 5 2 . 3 8 $ 1 7 8 . 3 8 $ 1 8 5 . 1 7 $ 1 9 7 . 8 8 $ 1 9 8 . 3 9 Re c o m m e n d e d R a t e p e r U n i t p e r M o n t h $2 2 5 . 0 0 $ 2 2 5 . 0 0 $ 2 0 0 . 0 0 $ 2 0 0 . 0 0 $ 2 0 0 . 0 0 $ 2 0 0 . 0 0 An n u a l C F D R e v e n u e b y P h a s e $4 8 3 , 3 0 0 $ 5 6 1 , 6 0 0 $ 1 , 0 1 2 , 8 0 0 $ 1 , 4 8 5 , 6 0 0 $ 1 , 7 2 8 , 0 0 0 $ 1 , 7 2 8 , 0 0 0 Co s t $4 8 3 , 7 8 3 $ 6 2 9 , 9 3 8 $ 9 0 3 , 3 3 9 $ 1 , 3 7 5 , 4 7 5 $ 1 , 7 0 9 , 7 1 3 $ 1 , 7 1 4 , 0 7 9 Ph a s e C a s h F l o w ($ 4 8 3 ) ( $ 6 8 , 3 3 8 ) $1 0 9 , 4 6 1 $ 1 1 0 , 1 2 5 $ 1 8 , 2 8 7 $ 1 3 , 9 2 1 Cu m u l a t i v e O p e r a t i n g R e s e r v e ($ 4 8 3 ) ( $ 6 8 , 8 2 1 ) $4 0 , 6 4 0 $ 1 5 0 , 7 6 5 $ 1 6 9 , 0 5 2 $ 1 8 2 , 9 7 3 So u r c e s : C i t y o f S a n L u i s O b i s p o ; A v i l a R a n c h L L C ; A D E ; K o s m o n t ; E c o n o m i c & P l a n n i n g S y s t e m s , I n c . Ph a s e / R e v e n u e a n d E x p e n s e s Ec o n o m i c & P l a n n i n g S y s t e m s , I n c . 8 / 1 / 2 0 1 7 P: \ 1 6 1 0 0 0 s \ 1 6 1 1 8 1 A v i l a R a n c h \ C F D \ A v i l a R a n c h C F D C o s t R e v i e w 8 - 0 1 - 2 0 1 7 . x l s x ATTACHMENT 2 PH 2 - 85 Draft Ta b l e 3 Lo c a l A r e a M a i n t e n a n c e A n n u a l C o s t A s s u m p t i o n s Av i l a R a n c h C a t e g o r y As s e t A c t i v i t y C o s t I n t e r v a l ( y e a r s ) C o s t U n i t U n i t C o s t A n n u a l C o s t / U n i t 1 2 3 4 5 6 179 29 214 197 101 0 Ci t y M a i n t a i n e d A s s e t s Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s I n f r a s t r u c t u r e & T r a n s p o r t a t i o n Br i d g e Pe d / B i k e B r i d g e s 10 0 E a c h 10 0 , 0 0 0 . 0 0 $ 1, 0 0 0 . 0 0 $ 1 1 Pa r k s a n d G r e e n b e l t s Tr a n s p o r t a t i o n Ne i g h b o r h o o d W e l l n e s s La n d s c a p e M a i n t e n a n c e M e d i a n s 0. 0 8 3 S F 0. 0 4 $ 0.48 $ 0 0 0 0 0 Pa r k s a n d G r e e n b e l t s Tr a n s p o r t a t i o n Ne i g h b o r h o o d W e l l n e s s La n d s c a p e M a i n t e n a n c e P a r k w a y 0. 0 8 3 S F 0. 0 2 $ 0.24 $ 60,540 9,100 7,000 29,820 41,900 Pa r k s a n d G r e e n b e l t s Tr a n s p o r t a t i o n Ne i g h b o r h o o d W e l l n e s s La n d s c a p e P a r k w a y W a t e r ( 1 . 2 1 A F / A c p e r W S A ) 1. 0 0 0 A c r e - F o o t 3, 5 6 0 . 0 0 $ 3, 5 6 0 . 0 0 $ 1.68 0.25 0.19 0.83 1.16 - Pa r k s a n d G r e e n b e l t s Tr a n s p o r t a t i o n Ne i g h b o r h o o d W e l l n e s s La n d s c a p e M a i n t e n a n c e R A B 0. 0 8 3 S F 0. 0 4 $ 0.48 $ 2,289 4,578 Pa r k s a n d G r e e n b e l t s Tr a n s p o r t a t i o n Co m m u n i t y S a f e t y La n d s c a p e D r a i n a g e B a s i n I n s p e c t i o n 1 E a c h 60 0 60 0 . 0 0 $ 1.00 1.00 1.00 1.00 1.00 Pa r k s a n d G r e e n b e l t s Tr a n s p o r t a t i o n Co m m u n i t y S a f e t y La n d s c a p e M a i n t a i n W a t e r Q u a l i t y B M P s M o n t h l y 0. 0 8 3 S F 0. 0 3 0.36 $ 19,368.00 4,248.00 2,520.00 15,480.00 12,564.00 Pa r k s a n d G r e e n b e l t s Tr a n s p o r t a t i o n Co m m u n i t y S a f e t y La n d s c a p e I n s p e c t W a t e r Q u a l i t y B M P s p e r r a i n 0. 3 3 3 S F 0. 0 1 0.03 $ 19,368.00 4,248.00 2,520.00 15,480.00 12,564.00 Pa r k s a n d G r e e n b e l t s Tr a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n La n d s c a p e R e t a i n i n g 50 S F 38 . 0 0 $ 0.76 $ 7,250 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s La n d s c a p e S o u n d B e r m 0. 0 8 3 S F 0. 0 2 $ 0.20 $ 29,131 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s E n v i r o n m e n t a l H e a l t h a n d O p e n S p a c e O p e n S p a c e O n g o i n g O p e n S p a c e M a i n t e n a n c e 1 A c r e 19 . 4 8 $ 19.48 $ 5.30 2.40 1.70 10.50 14.00 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s E n v i r o n m e n t a l H e a l t h a n d O p e n S p a c e O p e n S p a c e O p e r a t i n g - N a t u r a l R e s o u r c e s P r o t e c t i o n 1 A c r e 89 . 6 1 $ 89.61 $ 5.30 2.40 1.70 10.50 14.00 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s E n v i r o n m e n t a l H e a l t h a n d O p e n S p a c e O p e n S p a c e Op e r a t i o n a l - - R a n g e r S e r v i c e s 1 A c r e 73 . 0 4 $ 73.04 $ 5.30 2.40 1.70 10.50 14.00 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s E n v i r o n m e n t a l H e a l t h a n d O p e n S p a c e O p e n S p a c e Ra n g e r V e h i c l e 1 A c r e 5. 0 0 $ 5.00 $ 5.30 2.40 1.70 10.50 14.00 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s I n f r a s t r u c t u r e & T r a n s p o r t a t i o n Bi k e P a t h Cl a s s I B i k e P a t h R e h a b i l i t a t i o n 50 S F 14 . 5 0 $ 0.29 $ 24,480 12,840 5,760 10,080 19,200 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s I n f r a s t r u c t u r e & T r a n s p o r t a t i o n Bi k e P a t h Cl a s s I B i k e P a t h S e a l i n g 8 S F 0. 8 0 $ 0.10 $ 24,480 12,840 5,760 10,080 19,200 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s I n f r a s t r u c t u r e & T r a n s p o r t a t i o n Bi k e P a t h C l a s s I L i g h t E n e r g y ( 1 / 7 5 L F ) 1 E a c h 13 . 0 0 $ 13.00 $ 27 14 6 11 21 - Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s I n f r a s t r u c t u r e & T r a n s p o r t a t i o n Bi k e P a t h C l a s s I L i g h t M a i n t e n a n c e 1 E a c h 12 . 0 0 $ 12.00 $ 27 14 6 11 21 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s I n f r a s t r u c t u r e & T r a n s p o r t a t i o n Bi k e P a t h C l a s s I L i g h t P o l e R e p l a c e m e n t 75 E a c h 3, 0 0 0 . 0 0 $ 40.00 $ 27 14 6 11 21 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s I n f r a s t r u c t u r e & T r a n s p o r t a t i o n Bi k e P a t h C l a s s I L i g h t R e p l a c e m e n t 25 E a c h 2, 5 0 0 . 0 0 $ 10 0 . 0 0 $ 27 14 6 11 21 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s I n f r a s t r u c t u r e & T r a n s p o r t a t i o n Bi k e P a t h Cl a s s I V e g e t a t i o n R e m o v a l 0. 2 5 S F 0. 0 5 $ 0.20 $ 32,640 17,120 7,680 13,440 25,600 - Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Re c r e a t i o n S t r u c t u r e s ( S h e l t e r s / P e r g o l a s ) 50 S F 15 0 . 0 0 $ 3.00 $ 400 600 2,900 4,000 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Re c r e a t i o n S t r u c t u r e s ( C o a t i n g s ) 10 S F 1. 6 7 $ 0.17 $ 400 600 2,900 4,000 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Op e r a t i n g - P a r k s M a i n t e n a n c e 1 A c r e 10 , 1 6 2 . 4 7 $ 10 , 1 6 2 . 4 7 $ 3.14 1.34 0.81 10.38 2.58 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Pa r k E n e r g y C o s t s 1 A c r e 36 0 . 0 0 $ 36 0 . 0 0 $ 3.14 1.34 0.81 10.38 2.58 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Pa r k W a t e r C o s t ( A v g 1 . 4 9 A F / A c p e r P a r k s P l a n ) 1 A c r e - F o o t 3, 5 6 0 . 0 0 $ 3, 5 6 0 . 0 0 $ 4.68 2.00 1.21 3.84 - Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Pa r k W a t e r W e l l R e p l a c e m e n t 75 E a c h 60 , 0 0 0 . 0 0 $ 80 0 . 0 0 $ 0.20 0.20 0.20 0.20 0.20 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Pa r k W a t e r W e l l P u m p a n d B o o s t e r 10 E a c h 4, 0 0 0 . 0 0 $ 40 0 . 0 0 $ 0.20 0.20 0.20 0.20 0.20 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Pa r k W a t e r W e l l E n e r g y C o s t 0. 0 8 3 A c r e - F o o t 13 3 . 3 3 $ 1, 6 0 0 . 0 0 $ 0.20 0.20 0.20 0.20 0.20 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Pa r k i n g L o t R e h a b i l i t a t i o n 40 S F 14 . 5 0 $ 0.36 $ 17,200 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Pa r k i n g L o t S e a l i n g 10 S F 0. 8 0 $ 0.08 $ 17,200 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Pa r k s M a j o r M a i n t e n a n c e 1 E a c h P a r k 8, 4 4 8 . 2 8 $ 8, 4 4 8 . 2 8 $ 2 2 1 2 2 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Pl a y E q u i p m e n t M a i n t e n a n c e 15 E a c h S i t e 10 0 , 0 0 0 . 0 0 $ 6, 6 6 6 . 6 7 $ 2 2 1 2 2 Pa r k s a n d G r e e n b e l t s Tr a n s p o r t a t i o n Co m m u n i t y S a f e t y St o r m D r a i n Ca p i t a l C r e e k M a i n t e n a n c e 15 E a c h 10 0 , 0 0 0 . 0 0 $ 6, 6 6 6 . 6 7 $ 1.00 Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Tr e e Pa r k T r e e 8 E a c h 30 0 . 0 0 $ 37.50 $ 154 26 25 234 131 - Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s C o m m u n i t y S a f e t y Tr e e Ri p a r i a n T r e e R e m o v a l - S t o r m E v e n t 20 A c r e 15 0 . 0 0 $ 7.50 $ 5.74 2.37 1.65 2.16 6.16 Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n Br i d g e Br i d g e D e c k M a i n t e n a n c e 20 S F 50 . 0 0 $ 2.50 $ 3,360 Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n Br i d g e Br i d g e R e p l a c e m e n t 10 0 S F 1, 7 0 0 . 0 0 $ 17.00 $ 3,360 Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n Li g h t i n g S t r e e t L i g h t E n e r g y 1 E a c h 15 . 0 0 $ 15.00 $ 24 5 10 11 14 - Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n Li g h t i n g S t r e e t L i g h t M a i n t e n a n c e 1 E a c h 12 . 0 0 $ 12.00 $ 24 5 10 11 14 Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n Li g h t i n g S t r e e t L i g h t P o l e R e p l a c e m e n t 75 E a c h 5, 0 0 0 . 0 0 $ 66.67 $ 24 5 10 11 14 Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n Li g h t i n g S t r e e t L i g h t R e p l a c e m e n t 25 E a c h 2, 5 0 0 . 0 0 $ 10 0 . 0 0 $ 24 5 10 11 14 Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n St r e e t s O p e r a t i n g - S t r e e t M a i n t e n a n c e 1 S F 0. 0 6 $ 0.06 $ 193,680 42,480 25,200 154,800 125,640 - Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n Co m m u n i t y S a f e t y St o r m D r a i n D r a i n a g e I n l e t s 10 0 E a c h 13 , 5 0 0 . 0 0 $ 13 5 . 0 0 $ 16 4 8 8 4 Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n Co m m u n i t y S a f e t y St o r m D r a i n M a n h o l e s 10 0 E a c h 9, 5 0 0 . 0 0 $ 95.00 $ 21 4 5 11 4 Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n Co m m u n i t y S a f e t y St o r m D r a i n O p e r a t i n g - F l o o d C o n t r o l 1 L F 3. 2 5 $ 3.25 $ 6,800 550 2,075 2,380 5,500 Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n Co m m u n i t y S a f e t y St o r m D r a i n P i p e l i n e 10 0 L F 35 0 . 0 0 $ 3.50 $ 6,800 550 2,075 2,380 5,500 Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n St r e e t s Ac c e s s R o a d w a y R e h a b i l i t a t i o n ( P r i v a t e - - M a i n t a i n e d b y H o m e o w n e r s ) Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n St r e e t s Ac c e s s R o a d w a y S e a l i n g ( P r i v a t e - - M a i n t a i n e d b y H o m e o w n e r s ) Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n St r e e t s Cu r b a n d G u t t e r 75 L F 35 . 0 0 $ 0.47 $ 10,700 2,400 5,000 6,460 9,100 Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n St r e e t s R o a d w a y R e h a b i l i t a t i o n 75 S F 15 . 0 0 $ 0.20 $ 193,680 42,480 25,200 154,800 125,640 Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n St r e e t s R o a d w a y S e a l i n g 10 S F 1. 2 5 $ 0.13 $ 193,680 42,480 25,200 154,800 125,640 Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n St r e e t s Re p l a c e S i d e w a l k 10 0 S F 25 . 0 0 $ 0.25 $ 62,700 12,900 29,000 47,100 41,900 Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s L e i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Tr e e St r e e t T r e e ( 2 5 L F / E a c h S i d e ) 10 E a c h 30 0 . 0 0 $ 30.00 $ 600 104 80 365 56 319,764 $ 100,763 $ 77,667 $ 365,700 $ 239,373 $ -$ Co u n t y M a i n t a i n e d A s s e t s Pa r k s a n d G r e e n b e l t s Pa r k Cl a s s I B i k e P a t h R e h a b i l i t a t i o n 40 S F 1 4 . 5 0 $ 0 . 3 6 $ 1 8 , 0 9 6 Pa r k s a n d G r e e n b e l t s Pa r k Cl a s s I B i k e P a t h S e a l i n g 8 S F 0 . 8 0 $ 0 . 1 0 $ 1 8 , 0 9 6 Pa r k s a n d G r e e n b e l t s Pa r k C l a s s I L i g h t E n e r g y 1 E a c h 1 3 . 0 0 $ 1 3 . 0 0 $ 2 0 Pa r k s a n d G r e e n b e l t s Pa r k C l a s s I L i g h t M a i n t e n a n c e 1 E a c h 1 2 . 0 0 $ 1 2 . 0 0 $ 2 0 Pa r k s a n d G r e e n b e l t s Pa r k C l a s s I L i g h t P o l e R e p l a c e m e n t 7 5 E a c h 3 , 0 0 0 . 0 0 $ 4 0 . 0 0 $ 2 0 Pa r k s a n d G r e e n b e l t s Pa r k C l a s s I L i g h t R e p l a c e m e n t 2 0 E a c h 1 , 5 0 0 . 0 0 $ 7 5 . 0 0 $ 2 0 Pa r k s a n d G r e e n b e l t s Pa r k Cl a s s I V e g e t a t i o n R e m o v a l 0. 2 5 S F 0 . 0 5 $ 0 . 0 2 0 0 $ 1 8 , 0 9 6 Pa r k s a n d G r e e n b e l t s Br i d g e P e d / B i k e B r i d g e s 1 0 0 E a c h 1 0 0 , 0 0 0 . 0 0 $ 1 , 0 0 0 . 0 0 $ - Co u n t y N o i s e DU 7 5 . 0 0 $ 1 7 9 29 214 197 101 Su b t o t a l - - C o u n t y 13,42 5 $ 13,721 $ 16,05 0 $ 14,77 5 $ 7,57 5 $ -$ Quantity by Phase Su b t o t a l - - C i t y M a i n t a i n e d A s s e t s w / C F D A l l o c a t i o n Ec o n o m i c  & Pl a n n i n g  Sy s t e m s ,  In c .  8/ 1 / 2 0 1 7 P:\161000s\161181AvilaRanch\CFD\Avila  Ranch  CFD  Cost  Review  8 ‐01 ‐2017.xlsxATTACHMENT 2 PH 2 - 86 Draft Ta b l e 3 Lo c a l A r e a M a i n t e n a n c e A n n u a l C o s t A s s u m p t i o n s Av i l a R a n c h C a t e g o r y As s e t A c t i v i t y Ci t y M a i n t a i n e d A s s e t s Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s I n f r a s t r u c t u r e & T r a n s p o r t a t i o n Br i d g e Pe d / B i k e B r i d g e s Pa r k s a n d G r e e n b e l t s Tr a n s p o r t a t i o n Ne i g h b o r h o o d W e l l n e s s La n d s c a p e M a i n t e n a n c e M e d i a n s Pa r k s a n d G r e e n b e l t s Tr a n s p o r t a t i o n Ne i g h b o r h o o d W e l l n e s s La n d s c a p e M a i n t e n a n c e P a r k w a y Pa r k s a n d G r e e n b e l t s Tr a n s p o r t a t i o n Ne i g h b o r h o o d W e l l n e s s La n d s c a p e P a r k w a y W a t e r ( 1 . 2 1 A F / A c p e r W S A ) Pa r k s a n d G r e e n b e l t s Tr a n s p o r t a t i o n Ne i g h b o r h o o d W e l l n e s s La n d s c a p e M a i n t e n a n c e R A B Pa r k s a n d G r e e n b e l t s Tr a n s p o r t a t i o n Co m m u n i t y S a f e t y La n d s c a p e D r a i n a g e B a s i n I n s p e c t i o n Pa r k s a n d G r e e n b e l t s Tr a n s p o r t a t i o n Co m m u n i t y S a f e t y La n d s c a p e M a i n t a i n W a t e r Q u a l i t y B M P s M o n t h l y Pa r k s a n d G r e e n b e l t s Tr a n s p o r t a t i o n Co m m u n i t y S a f e t y La n d s c a p e I n s p e c t W a t e r Q u a l i t y B M P s p e r r a i n Pa r k s a n d G r e e n b e l t s Tr a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n La n d s c a p e R e t a i n i n g Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s La n d s c a p e S o u n d B e r m Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s E n v i r o n m e n t a l H e a l t h a n d O p e n S p a c e O p e n S p a c e O n g o i n g O p e n S p a c e M a i n t e n a n c e Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s E n v i r o n m e n t a l H e a l t h a n d O p e n S p a c e O p e n S p a c e O p e r a t i n g - N a t u r a l R e s o u r c e s P r o t e c t i o n Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s E n v i r o n m e n t a l H e a l t h a n d O p e n S p a c e O p e n S p a c e Op e r a t i o n a l - - R a n g e r S e r v i c e s Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s E n v i r o n m e n t a l H e a l t h a n d O p e n S p a c e O p e n S p a c e Ra n g e r V e h i c l e Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s I n f r a s t r u c t u r e & T r a n s p o r t a t i o n Bi k e P a t h Cl a s s I B i k e P a t h R e h a b i l i t a t i o n Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s I n f r a s t r u c t u r e & T r a n s p o r t a t i o n Bi k e P a t h Cl a s s I B i k e P a t h S e a l i n g Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s I n f r a s t r u c t u r e & T r a n s p o r t a t i o n Bi k e P a t h C l a s s I L i g h t E n e r g y ( 1 / 7 5 L F ) Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s I n f r a s t r u c t u r e & T r a n s p o r t a t i o n Bi k e P a t h C l a s s I L i g h t M a i n t e n a n c e Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s I n f r a s t r u c t u r e & T r a n s p o r t a t i o n Bi k e P a t h C l a s s I L i g h t P o l e R e p l a c e m e n t Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s I n f r a s t r u c t u r e & T r a n s p o r t a t i o n Bi k e P a t h C l a s s I L i g h t R e p l a c e m e n t Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s I n f r a s t r u c t u r e & T r a n s p o r t a t i o n Bi k e P a t h Cl a s s I V e g e t a t i o n R e m o v a l Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Re c r e a t i o n S t r u c t u r e s ( S h e l t e r s / P e r g o l a s ) Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Re c r e a t i o n S t r u c t u r e s ( C o a t i n g s ) Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Op e r a t i n g - P a r k s M a i n t e n a n c e Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Pa r k E n e r g y C o s t s Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Pa r k W a t e r C o s t ( A v g 1 . 4 9 A F / A c p e r P a r k s P l a n ) Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Pa r k W a t e r W e l l R e p l a c e m e n t Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Pa r k W a t e r W e l l P u m p a n d B o o s t e r Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Pa r k W a t e r W e l l E n e r g y C o s t Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Pa r k i n g L o t R e h a b i l i t a t i o n Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Pa r k i n g L o t S e a l i n g Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Pa r k s M a j o r M a i n t e n a n c e Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Pa r k Pl a y E q u i p m e n t M a i n t e n a n c e Pa r k s a n d G r e e n b e l t s Tr a n s p o r t a t i o n Co m m u n i t y S a f e t y St o r m D r a i n Ca p i t a l C r e e k M a i n t e n a n c e Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Tr e e Pa r k T r e e Pa r k s a n d G r e e n b e l t s Le i s u r e , C u l t u r a l & S o c i a l S e r v i c e s C o m m u n i t y S a f e t y Tr e e Ri p a r i a n T r e e R e m o v a l - S t o r m E v e n t Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n Br i d g e Br i d g e D e c k M a i n t e n a n c e Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n Br i d g e Br i d g e R e p l a c e m e n t Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n Li g h t i n g S t r e e t L i g h t E n e r g y Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n Li g h t i n g S t r e e t L i g h t M a i n t e n a n c e Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n Li g h t i n g S t r e e t L i g h t P o l e R e p l a c e m e n t Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n Li g h t i n g S t r e e t L i g h t R e p l a c e m e n t Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n St r e e t s O p e r a t i n g - S t r e e t M a i n t e n a n c e Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n Co m m u n i t y S a f e t y St o r m D r a i n D r a i n a g e I n l e t s Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n Co m m u n i t y S a f e t y St o r m D r a i n M a n h o l e s Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n Co m m u n i t y S a f e t y St o r m D r a i n O p e r a t i n g - F l o o d C o n t r o l Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n Co m m u n i t y S a f e t y St o r m D r a i n P i p e l i n e Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n St r e e t s A cc e s s R o a d w a y R e h a b i l i t a t i o n ( P r i v a t e - - M a i n t a i n e Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n St r e e t s A cc e s s R o a d w a y S e a l i n g ( P r i v a t e - - M a i n t a i n e d b y H Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n St r e e t s Cu r b a n d G u t t e r Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n St r e e t s R o a d w a y R e h a b i l i t a t i o n Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n St r e e t s R o a d w a y S e a l i n g Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s T r a n s p o r t a t i o n In f r a s t r u c t u r e & T r a n s p o r t a t i o n St r e e t s Re p l a c e S i d e w a l k Re s i d e n t i a l C o l l e c t o r s a n d A r t e r i a l s L e i s u r e , C u l t u r a l & S o c i a l S e r v i c e s N e i g h b o r h o o d W e l l n e s s Tr e e St r e e t T r e e ( 2 5 L F / E a c h S i d e ) Co u n t y M a i n t a i n e d A s s e t s Pa r k s a n d G r e e n b e l t s Pa r k Cl a s s I B i k e P a t h R e h a b i l i t a t i o n Pa r k s a n d G r e e n b e l t s Pa r k Cl a s s I B i k e P a t h S e a l i n g Pa r k s a n d G r e e n b e l t s Pa r k C l a s s I L i g h t E n e r g y Pa r k s a n d G r e e n b e l t s Pa r k C l a s s I L i g h t M a i n t e n a n c e Pa r k s a n d G r e e n b e l t s Pa r k C l a s s I L i g h t P o l e R e p l a c e m e n t Pa r k s a n d G r e e n b e l t s Pa r k C l a s s I L i g h t R e p l a c e m e n t Pa r k s a n d G r e e n b e l t s Pa r k Cl a s s I V e g e t a t i o n R e m o v a l Pa r k s a n d G r e e n b e l t s Br i d g e P e d / B i k e B r i d g e s Co u n t y N o i s e Su b t o t a l - - C o u n t y Su b t o t a l - - C i t y M a i n t a i n e d A s s e t s w / C F D A l l o c a t i o n To t a l U n i t s A n n u a l C o s t / I t e m C F D A l l o c a t i o n A l l o c a t i o n to C F D Allocation Comment/Rationale Comment 72 0 2. 0 0 2, 0 0 0 $ 2, 0 0 0 $ 100% Normal HOA Cost, but general community benefit - - $ - $ 100% Normal HOA Cost, and primarily local benefit 14 8 , 3 6 0 . 0 0 35 , 6 0 6 $ 35 , 6 0 6 $ 100% Normal HOA Cost, and primarily local benefit 4. 1 2 14 , 6 7 1 $ 14 , 6 7 1 $ 100% Normal HOA Cost, and primarily local benefit Acre-Ft price provide by City 6, 8 6 7 . 0 0 3, 2 9 6 $ 3, 2 9 6 $ 100% Normal HOA Cost, and primarily local benefit 5. 0 0 3, 0 0 0 $ 3, 0 0 0 $ 100% Inspect and Report on Basin 54 , 1 8 0 . 0 0 19 , 5 0 5 $ 19 , 5 0 5 $ 100% surface 54 , 1 8 0 . 0 0 1, 6 2 5 $ 1, 6 2 5 $ 100% Inspect BMPs per significant rain event 7, 2 5 0 . 0 0 5, 5 1 0 $ 5, 5 1 0 $ 100% Normal HOA Cost, and primarily local benefit 29 , 1 3 1 . 0 0 5, 8 2 6 $ 5, 8 2 6 $ 100% Normal HOA Cost, and primarily local benefit 33 . 9 0 66 0 $ 66 0 $ 100% Normal City Responsibility 33 . 9 0 3, 0 3 8 $ 3, 0 3 8 $ 100% Normal City Responsibility 33 . 9 0 2, 4 7 6 $ 2, 4 7 6 $ 100% Normal City Responsibility 33 . 9 0 17 0 $ 17 0 $ 100% Normal City Responsibility 72 , 3 6 0 . 0 0 20 , 9 8 4 $ 20 , 9 8 4 $ 100% Normal HOA Cost, but primarily general community benefit 72 , 3 6 0 . 0 0 7, 2 3 6 $ 7, 2 3 6 $ 100% Normal HOA Cost, but primarily general community benefit 80 . 4 0 1, 0 4 5 $ 1, 0 4 5 $ 100% Normal HOA Cost, but primarily general community benefit 80 . 4 0 96 5 $ 96 5 $ 100% Normal HOA Cost, but primarily general community benefit 80 . 4 0 3, 2 1 6 $ 3, 2 1 6 $ 100% Normal HOA Cost, but primarily general community benefit 80 . 4 0 8, 0 4 0 $ 8, 0 4 0 $ 100% Normal HOA Cost, but primarily general community benefit 96 , 4 8 0 . 0 0 19 , 2 9 6 $ 19 , 2 9 6 $ 100% Normal HOA Cost, but primarily general community benefit 7, 9 0 0 . 0 0 23 , 7 0 0 $ 23 , 7 0 0 $ 100% Difference between Project Parks/1,000 and City Parks/1,000 7, 9 0 0 . 0 0 1, 3 1 9 $ 1, 3 1 9 $ 100% 18 . 2 5 18 5 , 4 6 5 $ 18 5 , 4 6 5 $ 100% Difference between Project Parks/1,000 and City Parks/1,000 Not sure what this covers; direct maintenance 18 . 2 5 6, 5 7 0 $ 6, 5 7 0 $ 100% Difference between Project Parks/1,000 and City Parks/1,000 11 . 7 3 41 , 7 4 6 $ 41 , 7 4 6 $ 100% Difference between Project Parks/1,000 and City Parks/1,000 of $9.98 CCF 2017 Base Water Fee)=$3,911.83/AF 1. 0 0 80 0 $ 80 0 $ 100% 1. 0 0 40 0 $ 40 0 $ 100% 1. 0 0 1, 6 0 0 $ 1, 6 0 0 $ 100%FT 17 , 2 0 0 . 0 0 6, 2 3 5 $ 6, 2 3 5 $ 100% Difference between Project Parks/1,000 and City Parks/1,000 17 , 2 0 0 . 0 0 1, 3 7 6 $ 1, 3 7 6 $ 100% Difference between Project Parks/1,000 and City Parks/1,000 9. 0 0 76 , 0 3 4 $ 76 , 0 3 4 $ 100% Difference between Project Parks/1,000 and City Parks/1,000 Break down by Acre? 9. 0 0 60 , 0 0 0 $ 60 , 0 0 0 $ 100% Difference between Project Parks/1,000 and City Parks/1,000 equipment/improvements replaced every 15 years 1. 0 0 6, 6 6 7 $ 6, 6 6 7 $ 100% Normal City Responsibility 57 0 . 0 0 21 , 3 7 5 $ 21 , 3 7 5 $ 100% Difference between Project Parks/1,000 and City Parks/1,000 18 . 0 8 13 6 $ 13 6 $ 100% Normal City Responsibility 3, 3 6 0 . 0 0 8, 4 0 0 $ 8, 4 0 0 $ 100% Normal City Responsibility 3, 3 6 0 . 0 0 57 , 1 2 0 $ 57 , 1 2 0 $ 100% Normal City Responsibility 64 . 0 0 96 0 $ 96 0 $ 100% Normal City Responsibility 64 . 0 0 76 8 $ 76 8 $ 100% Normal City Responsibility 64 . 0 0 4, 2 6 7 $ 4, 2 6 7 $ 100% Normal City Responsibility 64 . 0 0 6, 4 0 0 $ 6, 4 0 0 $ 100% Normal City Responsibility 54 1 , 8 0 0 . 0 0 30 , 9 2 9 $ 30 , 9 2 9 $ 100% Normal City Responsibility Not sure what this covers; R&R covered elsewhere 40 . 0 0 5, 4 0 0 $ 5, 4 0 0 $ 100% Normal City Responsibility 45 . 0 0 4, 2 7 5 $ 4, 2 7 5 $ 100% Normal City Responsibility 17 , 3 0 5 . 0 0 56 , 2 4 8 $ 56 , 2 4 8 $ 100% Normal City Responsibility 17 , 3 0 5 . 0 0 60 , 5 6 8 $ 60 , 5 6 8 $ 100% Normal City Responsibility - - $ - $ 0% Maintained by homeowners - - $ - $ 0% Maintained by homeowners 33 , 6 6 0 . 0 0 15 , 7 0 8 $ 15 , 7 0 8 $ 100% Normal City Responsibility Full replacement ever 70 years 54 1 , 8 0 0 . 0 0 10 8 , 3 6 0 $ 10 8 , 3 6 0 $ 100% Normal City Responsibility total city currently spends on this item) 54 1 , 8 0 0 . 0 0 67 , 7 2 5 $ 67 , 7 2 5 $ 100% Normal City Responsibility Every 8 years. What is the current city schedule? 19 3 , 6 0 0 . 0 0 48 , 4 0 0 $ 48 , 4 0 0 $ 100% 1, 2 0 5 . 0 0 36 , 1 5 0 $ 36 , 1 5 0 $ 100% Normal City Responsibility, primarily local benefit Same as Park Tree; BRE is $35 1, 1 0 3 , 2 6 7 $ 1, 1 0 3 , 2 6 7 $ 1, 1 0 3 , 2 6 7 $ 18 , 0 9 6 6, 5 6 0 $ 6, 5 6 0 $ 100% County to Maintain Buckley; Avila to Maintain Class I 18 , 0 9 6 1, 8 1 0 $ 1, 8 1 0 $ 100% County to Maintain Buckley; Avila to Maintain Class I 20 26 1 $ 26 1 $ 100% County to Maintain Buckley; Avila to Maintain Class I Not sure County will want lights/lighting 20 24 1 $ 24 1 $ 100% County to Maintain Buckley; Avila to Maintain Class I Not sure County will want lights/lighting 20 80 4 $ 80 4 $ 100% County to Maintain Buckley; Avila to Maintain Class I Not sure County will want lights/lighting 20 1, 5 0 8 $ 1, 5 0 8 $ 100% County to Maintain Buckley; Avila to Maintain Class I Not sure County will want lights/lighting 18 , 0 9 6 36 2 $ 36 2 $ 100% County to Maintain Buckley; Avila to Maintain Class I - - $ - $ 100% County to Maintain Buckley; Avila to Maintain Class I 72 0 54 , 0 0 0 $ 54 , 0 0 0 $ 100% Per ALUC Approval Condition 65 , 5 4 6 $ 65 , 5 4 6 $ 65 , 5 4 6 $ CFD Allocation Ec o n o m i c  & Pl a n n i n g  Sy s t e m s ,  In c .  8/ 1 / 2 0 1 7 P:\161000s\161181AvilaRanch\CFD\Avila  Ranch  CFD  Cost  Review  8 ‐01 ‐2017.xlsxATTACHMENT 2 PH 2 - 87 Dr a f t Table 4 Fiscal Mitigation Assumptions Budget Category Total General Fund Revenues Taxes Property Tax $0 Property Tax in lieu of VLF $297,169 Sales Tax: General $129,987 Sales Tax: Measure G $64,994 Sales Tax: Public Safety $3,220 Utility Users Tax $122,980 Franchise Fees $34,435 Business Tax Certificates $1,463 Real Property Transfer Tax $22,963 Service Charges Recreation Fees $58,856 Other Charges for Services $38,704 Other Revenue Fines and Forfeitures $3,449 Interest Earnings and Rents $4,263 Other Revenues $2,331 Transfers In Gas Tax/TDA $35,971 Other $29,820 Total Revenues $850,605 General Fund Expenditures General Government $294,029 Police $332,799 Fire [1]$398,463 Transportation [2]$51,536 Leisure, Cultural and Social Services $130,497 Park and Landscape Maintenance [3]$213,528 Community Development $106,747 Transfers Out $2,226 Total Expenditures $1,529,825 Net Fiscal Impact ($679,220) Reduce Parks and Landscape Maintenance [4] $213,528 Reduce for Transportation [4] $51,536 REVISED Net Fiscal Impact ($414,156) [1] [2] Included in LAM; exclude for Fiscal Mitigation. [3] Included in LAM; exclude for Fiscal Mitigation. [4] Included in LAM. Increased per City allocation 7-28-2017; reflects cost of operating station and Avila Ranch's share (25% of 590 acres). Economic & Planning Systems, Inc. 8/1/2017 P:\161000s\161181AvilaRanch\CFD\Avila Ranch CFD Cost Review 8‐01‐2017.xlsx ATTACHMENT 2 PH 2 - 88 Dr a f t APPENDIX B: Avila Ranch Infrastructure Cost and Allocation Analysis ATTACHMENT 2 PH 2 - 89 Draft Ta b l e B - 1 Su m m a r y o f I n f r a s t r u c t u r e F u n d i n g Ty p e o f I n f r a s t r u c t u r e To t a l P r o j e c t C o s t s [1 ] A v i l a R a n c h P r o Ra t a S h a r e T o t a l C o s t o f Pr o j e c t s B u i l t b y Av i l a R a n c h A d d i t i o n a l M i t i g a t i o n or I m p a c t F e e s B e i n g Pa i d A m o u n t o f Po t e n t i a l P r i v a t e Re i m b u r s e m e n t Am o u n t o f Po t e n t i a l I m p a c t Fe e C r e d i t f o r B u i l t Pr o j e c t s Final Out of Pocket for Avila Ranch Tr a n s p o r t a t i o n $ 3 6 , 8 0 4 , 8 8 4 $ 1 7 , 6 2 2 , 1 5 4 $ 2 0 , 7 9 6 , 5 0 0 $ 5 , 8 8 3 , 1 9 4 ( $ 5 6 1 , 3 5 0 ) ( $ 3 , 7 5 9 , 0 0 0 ) $ 2 2 , 3 5 9 , 3 4 4 Pa r k s $ 6 , 6 4 5 , 5 0 0 $ 6 , 6 4 5 , 5 0 0 $ 6 , 6 4 5 , 5 0 0 $6,645,500 Wa t e r a n d S e w e r $ 4 2 7 , 5 0 0 $ 4 2 7 , 5 0 0 $ 4 2 7 , 5 0 0 $427,500 Pu b l i c S a f e t y $1 , 3 4 6 , 2 5 0 $ 1 , 3 4 6 , 2 5 0 $ 1 , 3 4 6 , 2 5 0 $1,346,250 In t r a c t I m p r o v e m e n t s $2 0 , 8 9 6 , 0 0 0 $ 2 0 , 8 9 6 , 0 0 0 $ 2 0 , 8 9 6 , 0 0 0 $20,896,000 Of f s i t e I m p r o v e m e n t s $5 5 2 , 0 0 0 $5 5 2 , 0 0 0 $5 5 2 , 0 0 0 $552,000 To t a l I n f r a s t r u c t u r e E x p e n s e s $6 6 , 6 7 2 , 1 3 4 $ 4 7 , 4 8 9 , 4 0 4 $ 5 0 , 6 6 3 , 7 5 0 $5 , 8 8 3 , 1 9 4 ( $ 5 6 1 , 3 5 0 ) ($ 3 , 7 5 9 , 0 0 0 ) $ 5 2 , 2 2 6 , 5 9 4 [1 ] T o t a l P r o j e c t I n f r a s t r u c t u r e c o s t s w h e t h e r A v i l a R a n c h i s b u i l d i n g o r p a y i n g f e e s . So u r c e s : A v i l a R a n c h L L C ; C i t y o f S a n L u i s O b i s p o ; E c o n o m i c & P l a n n i n g S y s t e m s , I n c . Ec o n o m i c & P l a n n i n g S y s t e m s , I n c . 8 / 1 / 2 0 1 7 P: \ 1 6 1 0 0 0 s \ 1 6 1 1 8 1 A v i l a R a n c h \ C a p i t a l C o s t s & F e e s \ A v i l a R a n c h I n f r a s t r u c t u r e C o s t A n a l y s i s _ 0 8 - 0 1 - 2 0 1 7 v 2 . x l s x ATTACHMENT 2 PH 2 - 90 Dr a f t Table B-2 Avila Ranch Infrastructure Cost and Allocation Analysis Item Total Project Cost Estimate Implementation/ Participation by Avila Ranch Nexus Allocation to Avila Ranch Allocation to Avila Ranch (Absent Credits or Reimbursements) Percent Up-Front Amount Reimbursement Agreement Requested/ Recommended? If Yes, Amount Subject to Private Reimbursement T1 Transit Stops $75,000 Build 100.0%$75,000 100% $75,000 No T2 Buckley Road Widening - Vachell to Avila PL $2,294,500 Build Ph 1 & 4 50.0%$1,147,250 100% $2,294,500 No T3 Suburban Sidewalk Sidewalks W/O Earthwood (Existing Deficiency)$125,000 Build Phase 1 100.0%$125,000 100% $125,000 No T4 Suburban Signal Modifications $125,000 Build Phase 1 100.0%$125,000 100% $125,000 No T5 Venture Residential Collector $2,612,000 Build Phase 1,2,3 100.0%$2,612,000 100% $2,612,000 No T6 Buckley Frontage Bike Path $655,000 Build Phase 1, 4 100.0%$655,000 100% $655,000 No T7 Horizon/Jesperson Collector Avila Ranch $2,163,000 Build Phase 4 75.0%$1,622,250 100% $2,163,000 No T8 US 101/S. Higuera Interchange - Prepare PS&E for SB Ramp Metering $50,000 Complete Phase 1- 2 100.0%$50,000 100% $50,000 No T9 Vachell Lane Widening, LTL @ Venture, misc sidewalks and Class II Bike Lanes $650,000 Build Phase 1 50.0%$325,000 100% $650,000 No T10 Earthwood Collector Suburban to Venture $418,000 Build Phase 1 75.0%$313,500 100% $418,000 No T11 Buckley Road Extension - Vachell to South Higuera $6,000,000 Build Phase 2 25.0%$1,500,000 100% $6,000,000 No T12 Suburban Widening E/O Earthwood $450,000 Build Phase 4 34.7%$156,150 100% $450,000 Yes $293,850 T13 Horizon Collector South of Suburban to Avila Ranch w/ROW $770,000 Build Phase 4 75.0%$577,500 100% $770,000 Yes $192,500 T14 South Higuera/Vachell Lane $150,000 Build Phase 2 50.0%$75,000 100% $150,000 Yes $75,000 T15 Tank Farm/Higuera SB Dual LT $470,000 Build Phase 1 13.4%$62,980 100% $470,000 No $0 T16 Tank Farm Creek Bike Path $860,000 Build Phase 1,2,3 75.0%$645,000 100% $860,000 No T17 Tank farm Creek Bikepath - Chevron s/o TFR $934,000 Build phase 4 if ROW 100.0%$934,000 100% $934,000 No T18 Tank Farm/Higuera WB Dual RT $670,000 Build Phase 4 13.4%$89,780 100% $670,000 No $0 T19 Buckley Extension Bike Path $500,000 Build Phase 2 25.0%$125,000 100% $500,000 No T20 US 101/LOVR Interchange - Install SB Ramp Metering $250,000 Build Phase 1 100.0%$250,000 100% $250,000 No $0 T21 South Higuera/South Street NB RT Lane $370,000 Build Phase 1 30.8%$113,960 100% $370,000 Yes 1 $0 T22 South Higuera Sidewalk - Vachell to LOVR $125,000 Build Phase 1 100.0%$125,000 100% $125,000 No T23 South Higuera Sidewalk - City Limit to LOVR $80,000 Build Phase 2 24.3%$19,440 100% $80,000 No Subtotal:$20,796,500 $11,723,810 $20,796,500 $561,350 T24 LOVR Interchange (Impact Fees remaining after crediting from above)$3,172,464 Pay Impact Fees 100.0%$3,172,464 100% $3,172,464 No T25 Citywide TIF Impact Fees (Remaining to be paid - reduced for potential TIF Credit shown above) $ 1,501,920 Pay Impact Fees $1,501,920 100% $ 1,501,920 No T26 Horizon Lane S/O Tank Farm to Suburban $594,000 Pay Impact Fees 25.0%$148,500 0%$0 No T27 Prado/Higuera NB Dual LT $750,000 Pay Impact Fees 8.5%$63,750 0%$0 No T28 Prado/Higuera Cumulative Improvements (Dual LT, RT, 2 Thru)$2,000,000 Pay Impact Fees 0.0%$0 0%$0 No T29 AASP Impact Fees (Remaining to be paid - reduced for potential AASP Credit shown above)$0 Pay Impact Fees $0 100%$0 No T30 LOVR/Higuera Intersection Improvements $2,540,000 Pay MIT Fees 25.4%$645,160 25.4% $645,160 No T31 Bob Jones Trail Bike Path $1,250,000 Pay MIT Fees 5.8%$72,500 5.8% $72,500 No T32 Buckley/Vachell Intersection $650,000 Pay MIT Fees 16.5%$107,250 16.5% $107,250 No T33 Buckley/HWY 227 Intersection $2,700,000 Pay MIT Fees 2.7%$72,900 10.0% $270,000 No T34 Tank Farm/Higuera NB RT extension $850,000 Pay MIT Fees 13.4%$113,900 13.4% $113,900 No Subtotal:$16,008,384 $5,898,344 $5,883,194 $0 Total All Transportation:$36,804,884 $17,622,154 $26,679,694 $561,350 Parks - Land and Improvements (18 acres) $6,645,500 100.0%$6,645,500 100% $6,645,500 No Water and Sewer $427,500 100.0%$427,500 100% $427,500 No Public Safety - Interim Fire Station $1,346,250 100.0%$1,346,250 100% $1,346,250 No Intract Improvements - Not Specified Above $20,896,000 100.0%$20,896,000 100% $20,896,000 No Offsite Improvements - Not Specified Above $552,000 100.0%$552,000 100% $552,000 No Subtotal:$29,867,250 $29,867,250 $29,867,250 Grand Total:$66,672,134 $47,489,404 $56,546,944 $561,350 Allocation to Avila Ranch Developer Equity Pay Mitigation Fee - Pro Rata or AASP If Amended into P Build Project (Eligible for City TIF Fee Credits/Reimburs Pay Fee - LOVR Pay Fee - Citywide TIF Pay AASP Fee (or Mitigation Fee as Identified) Pay Mitigation Fee - Pro Rata Build Project (Potential Private Reimbursement) Build Project (No Reimbursement) Build Project (Eligible for AASP Fee Credits/Reimbursem Build Project (Eligible for AASP Fee Credits/Reimbursem Build Project (Eligible for LOVR Credits) Pr o j e c t s  to  be  Bu i l t  by  Av i l a  Ra n c h Av i l a  Ra n c h  Pa y I m p a c t  Fe e s / M i t i g a t i o n  Fe e Ot h e r C o s t s Economic & Planning Systems, Inc. 8/1/2017 P:\161000s\161181AvilaRanch\Capital Costs&Fees\Avila Ranch Infrastructure Cost Analysis_08-01-2017v2.xlsx ATTACHMENT 2 PH 2 - 91 Dr a f t 7DEOH%-2 Avila Ranch Infrastructure Cost and Allocation Analysis Item Total Project Cost Estimate T1 Transit Stops $75,000 T2 Buckley Road Widening - Vachell to Avila PL $2,294,500 T3 Suburban Sidewalk Sidewalks W/O Earthwood (Existing Deficiency)$125,000 T4 Suburban Signal Modifications $125,000 T5 Venture Residential Collector $2,612,000 T6 Buckley Frontage Bike Path $655,000 T7 Horizon/Jesperson Collector Avila Ranch $2,163,000 T8 US 101/S. Higuera Interchange - Prepare PS&E for SB Ramp Metering $50,000 T9 Vachell Lane Widening, LTL @ Venture, misc sidewalks and Class II Bike Lanes $650,000 T10 Earthwood Collector Suburban to Venture $418,000 T11 Buckley Road Extension - Vachell to South Higuera $6,000,000 T12 Suburban Widening E/O Earthwood $450,000 T13 Horizon Collector South of Suburban to Avila Ranch w/ROW $770,000 T14 South Higuera/Vachell Lane $150,000 T15 Tank Farm/Higuera SB Dual LT $470,000 T16 Tank Farm Creek Bike Path $860,000 T17 Tank farm Creek Bikepath - Chevron s/o TFR $934,000 T18 Tank Farm/Higuera WB Dual RT $670,000 T19 Buckley Extension Bike Path $500,000 T20 US 101/LOVR Interchange - Install SB Ramp Metering $250,000 T21 South Higuera/South Street NB RT Lane $370,000 T22 South Higuera Sidewalk - Vachell to LOVR $125,000 T23 South Higuera Sidewalk - City Limit to LOVR $80,000 Subtotal:$20,796,500 T24 LOVR Interchange (Impact Fees remaining after crediting from above)$3,172,464 T25 Citywide TIF Impact Fees (Remaining to be paid - reduced for potential TIF Credit shown above) $ 1,501,920 T26 Horizon Lane S/O Tank Farm to Suburban $594,000 T27 Prado/Higuera NB Dual LT $750,000 T28 Prado/Higuera Cumulative Improvements (Dual LT, RT, 2 Thru)$2,000,000 T29 AASP Impact Fees (Remaining to be paid - reduced for potential AASP Credit shown above)$0 T30 LOVR/Higuera Intersection Improvements $2,540,000 T31 Bob Jones Trail Bike Path $1,250,000 T32 Buckley/Vachell Intersection $650,000 T33 Buckley/HWY 227 Intersection $2,700,000 T34 Tank Farm/Higuera NB RT extension $850,000 Subtotal:$16,008,384 Total All Transportation:$36,804,884 Parks - Land and Improvements (18 acres) $6,645,500 Water and Sewer $427,500 Public Safety - Interim Fire Station $1,346,250 Intract Improvements - Not Specified Above $20,896,000 Offsite Improvements - Not Specified Above $552,000 Subtotal:$29,867,250 Grand Total:$66,672,134 Pay Mitigation Fee - Pro Rata or AASP If Amended into P Build Project (Eligible for City TIF Fee Credits/Reimburs Pay Fee - LOVR Pay Fee - Citywide TIF Pay AASP Fee (or Mitigation Fee as Identified) Pay Mitigation Fee - Pro Rata Build Project (Potential Private Reimbursement) Build Project (No Reimbursement) Build Project (Eligible for AASP Fee Credits/Reimbursem Build Project (Eligible for AASP Fee Credits/Reimbursem Build Project (Eligible for LOVR Credits) Developer Final Equity (Not Subject to Credit or Reimbursement) If No and If Developer Equity is 100%, Value to City If No and If Developer Equity is 100%, Value to County TIF AASP AASP (Future) LOVR $75,000 $2,294,500 $1,147,250 $125,000 $125,000 $2,612,000 $655,000 $2,163,000 $540,750 $50,000 $650,000 $214,500 $110,500 $418,000 $104,500 $6,000,000 $1,125,000 $3,375,000 $156,150 $577,500 $75,000 $470,000 $0 $815,000 $45,000 $0 $934,000 $0 $670,000 $0 TBD $500,000 $93,750 $281,250 $250,000 $0 $0 $ 370,000 $0 $ 125,000 $0 $ 80,000 $0 $ 575,000 $2,889,000 $45,000 $250,000 $16,476,150 $2,078,500 $4,914,000 $3,172,464 $0 $1,501,920 $0 $0 $0 $0 $0 $0 $0 $645,160 $72,500 $72,500 TBD $107,250 $542,750 TBD $270,000 $270,000 TBD $113,900 $0 $0 $0 $0 $0 $5,883,194 $615,250 $270,000 $575,000 $2,889,000 $45,000 $250,000 $22,359,344 $2,693,750 $5,184,000 $6,645,500 $0 $427,500 $1,346,250 $0 $20,896,000 $552,000 $29,867,250 $575,000 $2,889,000 $45,000 $250,000 $52,226,594 $2,693,750 $5,184,000 Fee Credit and Reimbursement Agreement Status Amount Subject to Fee Credit Economic & Planning Systems, Inc. 8/1/2017 P:\161000s\161181AvilaRanch\Capital Costs&Fees\Avila Ranch Infrastructure Cost Analysis_08-01-2017v2.xlsx ATTACHMENT 2 PH 2 - 92 Dr a f t Exhibit D Phasing Plan ATTACHMENT 2 PH 2 - 93 Draft AV I L A R A N C H D E V E L O P M E N T P L A N Ma y 2 , 2 0 1 7 #1 0 1 1 0 2 3 A24 Ph a s i n g P l a n Ph a s e 3 Ph a s e 4 Ph a s e 1 Ph a s e 6 Ph a s e 5 Ph a s e 2 0 7 5 1 5 0 30 0 SC A L E : 1 ” = 1 5 0 ’ ( 2 4 ” x 3 6 ” s h e e t ) Ph 6 ATTACHMENT 2 PH 2 - 94 Dr a f t Exhibit E-1 Backbone Water Infrastructure ATTACHMENT 2 PH 2 - 95 Draft AV I L A R A N C H D E V E L O P M E N T P L A N Ma y 2 , 2 0 1 7 #1 0 1 1 0 2 3 A25 Re c y c l e d W a t e r : P r o p o s e d Do m e s t i c W a t e r : P r o p o s e d UT I L I T I E S L E G E N D Wa t e r S u p p l y P l a n ATTACHMENT 2 PH 2 - 96 Dr a f t Exhibit E-2 Backbone Wastewater Infrastructure ATTACHMENT 2 PH 2 - 97 Draft AV I L A R A N C H D E V E L O P M E N T P L A N Ma y 2 , 2 0 1 7 #1 0 1 1 0 2 3 A26 Wa s t e w a t e r P l a n Pu m p S t a t i o n Fo r c e M a i n Gr a v i t y S e w e r TO T A N K F A R M L I F T S T A T I O N ATTACHMENT 2 PH 2 - 98 Dr a f t Exhibit E-3 Backbone Recycled Water Infrastructure ATTACHMENT 2 PH 2 - 99 Draft AV I L A R A N C H D E V E L O P M E N T P L A N Ma y 2 , 2 0 1 7 #1 0 1 1 0 2 3 A25 Re c y c l e d W a t e r : P r o p o s e d Do m e s t i c W a t e r : P r o p o s e d UT I L I T I E S L E G E N D Wa t e r S u p p l y P l a n ATTACHMENT 2 PH 2 - 100 Dr a f t Exhibit E-4 Backbone Drainage Infrastructure ATTACHMENT 2 PH 2 - 101 Draft AV I L A R A N C H D E V E L O P M E N T P L A N Ma y 2 , 2 0 1 7 #1 0 1 1 0 2 3 A27 St o r m D r a i n s Ou t f a l l s Ba s i n Sw a l e St o r m D r a i n a g e ATTACHMENT 2 PH 2 - 102 Dr a f t Exhibit F Figure 5 of Conservation & Open Space Element ATTACHMENT 2 PH 2 - 103 Dr a f t Conservation and Open Space Element F O O T H I L L SAN T A R O S A TA N K F A R M LOS O S O S V A L L E Y M A D O N N A SO U T H BROA D CALI F O R N I A H I G U E R A Fi g u r e 5 : Gr e e n b e l t B o u n d a r i e s 01 2 3 0. 5 Mi l e s Ci t y L i m i t Gr e e n b e l t B o u n d a r y Pr e v i o u s G r e e n b e l t B o u n d a r y ATTACHMENT 2 PH 2 - 104 Dr a f t Exhibit G Affordable/Workforce Housing Plan ATTACHMENT 2 PH 2 - 105 Dr a f t Exhibit G Affordable & Workforce Housing Plan Affordable Housing Plan The Avila Ranch project will encourage long term housing affordability by including design and develop- ment strategies that serve to provide lower cost housing, by including a range of housing sizes and types that are not typically provided in the community, and by providing a greater number of lower income inclusionary units than required by the City Inclusionary Housing Ordinance. Since the price of houses over time is most closely related to the size of the dwelling unit, the size of the lot, and costs of mainte- nance, the project has concentrated on lowering the overall size of market rate dwelling units, and reduc- ing lot size for market rate units. Within each of the residential zones there will be dwelling unit sizes ranging from 550 square foot studios to 1,150 square foot family apartments in the R-4 area, to 2,500 square foot single family detached units in the R-1 development area. A predominant individual share of the project is in small lot single family R- 2 units (297 out of 720) and attached single family ownership and rental R-3 units (197 units out of 720). Consequently, the average size of the units across the development is approximately 1,525 square feet. Maintenance expenses, to the extent feasible, will be included in a Community Facilities District to reduce the necessity for Homeowner’s Associations, and the higher costs associated with that maintenance and governance structure. Landscape maintenance and cost of water and utilities will also be reduced because of the drought tolerant landscaping, smaller lots and other sustainable and cost reducing features. The City’s Housing Element provides incentives to develop housing in a denser pattern (R3/R4), and with smaller unit sizes to encourage affordability across the low, mod and workforce income ranges. These incentives include reduced inclusionary housing requirements for denser projects and for projects with lower dwelling unit square footages. Conversely, more inclusionary housing is required for projects with dwelling units that exceed unit sizes of 2,000 square feet. Table 2A of the Housing Element contains these adjustment factors. According to the City’s Inclusionary Housing Ordinance and Table 2A, the inclusionary housing require- ment for the residential component of the project is a total of 67 units, with 22 low and 45 moderate income units. The project proposes to meet and exceed the residential component requirement by providing 32 lower income units and 35 moderate income units as show in Table 1 below, which will pro- vide for deeper affordability and more lower income units than required. In addition, the commercial component of the project requires a total of 4 units, with 1 low and 3 moderate income units. The project proposes to meet commercial component requirement by either constructing the units in the project or by paying an affordable housing in-lieu fee. ATTACHMENT 2 PH 2 - 106 Dr a f t __________________________________ Avila Ranch July 26, 2017 Affordable & Workforce Housing Plan Page 2 of 13 Table 1 Inclusionary Housing Requirements Units Required and Units Provided Units Avg Size Total Floor Area Net Acres Net Den- sity Density Units Density Units/Acre R-1 Alley 33 2,250 74.250 4.7 7.02 33 7.02 R-1 Front 68 2,250 153,000 8.07 8.43 68 8.43 R-2 Pocket Cottage 76 1,200 91,200 5.67 13.40 76 13.40 R-2 Standard 221 1,750 386,750 21.62 10.22 221 10.22 R-3 Duplex 38 1,750 66,500 4.13 9.20 57 13.80 R-3 Townhome 159 1,375 218,625 6.49 24.50 173 26.66 R-4 Apartments 125 850 106,250 4.39 28.47 115 26.20 Neighborhood Commercial 15,000 1.85 Total 720 1,525 1,096,575 55.07 13.07 743 13.49 Nominal Requirement 108 HE Table 2A Adjustment -41 Constructed Fee Total Commercial 4 Requirement: 71 Provided: 67 71 Low 23 32 1 33 Moderate 48 35 3 38 The Avila Ranch project will address housing affordability in several ways, most notably through the design itself, which includes cluster development and many medium and high-density housing units (197 R-3 units and 125 R-4 units), as well as R-2 units that have floor areas that are well below the typical average for single-family detached units in the community. The City’s Inclusionary Housing Requirement will be addressed through deed restrictions on some low income and moderate-income units to be constructed by Avila Ranch, while others will be provided by dedicating and donating improved land to a non-profit affordable housing provider. However, should an affordable housing provider fail to construct the units, the obligation to provide for the 24 deed-restricted low-income affordable housing units remains with Avila Ranch to complete. The following highlights are summarized from the Development Plan: • Mix of Residential Densities and Small Lots. There is an intentional mix of residential densities in the Avila Ranch project that includes a range of R-1 lot sizes, R-2 “four-packs”, “six-packs”, and “eight- pack” cluster units, and R-3 and R-4 multifamily dwellings, with an emphasis on smaller lot, higher density units. R-2 small lot single family detached units comprise over forty percent of the residential units (with building living areas ranging from 1,050 SF for a 2B/1B unit to 2,200 SF 3B/2B unit), and medium density and above units will comprise over 85 percent of the units in the project. The average unit size across the entire project is less than 1,550 square feet. ATTACHMENT 2 PH 2 - 107 Dr a f t __________________________________ Avila Ranch July 26, 2017 Affordable & Workforce Housing Plan Page 3 of 13 • Pocket Cottage Units. The Plan includes 76 “Pocket Cottage” units, which are intended to meet the needs of young professionals, empty nesters and young families. These units have floor plans ranging from 1,050 to 1,300 square feet in 2BR/1B, 2BR/2B and 3BR/2B configurations. These units, like the other cluster units, are arranged around a common landscaped courtyard, and will have access from a common driveway. These smaller units also have a one-car garage and an adjacent uncovered guest parking space. This parking reduction is justified by the lower expected occupancy for these smaller units and the multimodal features of the overall development. A portion of these units will be re- served for income-qualified workforce households through the Workforce Housing Incentive Program (WHIP) described below. Nine of the Pocket Cottage units (5 2-bedroom and 4 3-bedroom units) would be dedicated for Moderate Income, and 13 of these units (6 2-bedroom/1-bath units and 7 3- bedroom/2-bath units) will be dedicated for the project’s Workforce Housing Incentive Program (WHIP) program described below. The nine inclusionary moderate-income units will be provided on in Phases 1 and 3 of the project on Lots 37, 51, 65, 76, 91, 121, 364, 378 and 392. The Workforce units in the Pocket Cottage series will be provided on Lots 32, 46, 60, 74, 79, 89, 90, 117, 365, 379, 393, 315 or 316. • R-3 Units and Inclusionary Housing Requirements. The project includes 197 R-3 multifamily units on 11 acres that range in size from 700 square foot for-sale and for-rent studios to 1,750 square foot duplexes. The R-3 portion will include eighteen (18) for-sale moderate-income units (10 2-bedroom/1- bath units and 8 3-bedroom, 2-bath units) and twelve (12) WHIP units (6 2-bedroom/1-bath units and 6 3-bedroom/2-bath units). The inclusionary units will be provided on Lot 405 as part of the first 80 R-3 townhomes (and the first 116 R-3 units overall), and the 12 Workforce units will be provided on Lot 407. • R-4 Housing and Affordable Housing Development. Finally, the project will include a substantial number of apartment units that are near employment and shopping at Suburban and Higuera. The R- 4 apartment portion of the project will be directly served by an on-street transit stop and will be within walking distance of nearby shopping. A one-acre portion of R-4 project (adequate for 24 density units- -and 25-30 actual dwelling units) will be dedicated to an affordable housing provider (either Lot 300 or Lot 301 of the VTM) at the time that the final map for Phase 1 is recorded to address the local need for lower income housing and to satisfy, in part, the project’s inclusionary housing requirements. However, should an affordable housing provider fail to construct the units, the obligation to provide for the 24 deed-restricted low-income affordable housing units remains with Avila Ranch to complete. Unit sizes in the R-4 apartment portion will range from 550 square foot studios to 1,150 square foot units for larger families. The number of units required by the inclusionary housing requirement is twenty-four (24)) lower income units, and the City’s Inclusionary Housing Ordinance requires that a site be dedicated that is adequate in size for the required units plus 35 percent for anticipated density bonus. The site to be dedicated is zoned for 24 density units (and 32-35 “doors”), and is adequate to meet this requirement. This site will be improved as part of Phase 1 of the project since it is served by Earthwood, and can be conveyed to the affordable housing provider during Phase 1. Its develop- ment is not dependent on the completion of improvements in Phase 3 of the project (where it is located), and construction can start on it after the Buckley Road Extension improvements are com- pleted. This will allow completion of these low income inclusionary units early in the project, rather than leaving them to the end. In addition, eight (8) Low Income 2-bedroom/1-bath and eight (8) ATTACHMENT 2 PH 2 - 108 Dr a f t __________________________________ Avila Ranch July 26, 2017 Affordable & Workforce Housing Plan Page 4 of 13 Moderate Income 2-bedroom/1-bath units will be provided on Lot 360, a market rate apartment de- velopment. • Neighborhood Commercial. The 1.8-acre Neighborhood Commercial portion of the project will gen- erate a requirement for four additional inclusionary units (1 lower income and 3 moderate income). Development of this site is anticipated 10+ years, and will be based on market demand. Most of the NC site is currently located in ALUP Safety Zone S-1-B that precludes residential development; how- ever, there is a 0.25-acre portion of Lot 603 that is outside and that can accommodate residential development. The project will include the four inclusionary units in its design, if possible, and subject to the restrictions of the Specific Plan. If that is infeasible, the project will pay an affordable housing in-lieu fee per the Inclusionary Housing Ordinance and Table 2 of the Housing Element. Overall, the project will provide a total of thirty-two (32) low and thirty-five (35) Moderate Income inclu- sionary units compared to the city’s requirement for twenty-two (22) Low Income units and forty-five (45) Moderate Income units. The inclusionary housing product mix has been intentionally skewed toward the low-income units to ensure that this income group is adequately represented in the project, and to rec- ognize that the moderate-income groups have adequate market rate opportunities in the R-3, R-2 Pocket Cottage and R-4 rental portions of the project. Table 2 shows the phasing of the affordable units, and Exhibit 1 shows the location of these units. Table 2 Assisted Affordable Housing Phasing Plan Phase Program 1 2 3 4 5 6* Total Low Income Rentals 24 8 1 33 Mod Income Rentals 8 3 11 Moderate Income For-Sale 6 3 18 27 Workforce For-Sale-WHIP 13 12 25 Other Market Rate Work- force For Sale 36 18 70 124 Rental 83 86 169 Total 79 - 120 186 - 385 Units in Phase 179 29 214 197 101 4 724 Total-Inclusionary Low 33 Total-Inclusionary Mod 38 Total-Workforce WHIP 25 Total--Market Rate Work- force 293 Total 389 *Phase 6 represents the Commercial Development and associated Inclusionary Housing Requirement. This will be met either by development of units within the commercial project or by payment of affordable housing in -lieu fee. ATTACHMENT 2 PH 2 - 109 Dr a f t __________________________________ Avila Ranch July 26, 2017 Affordable & Workforce Housing Plan Page 5 of 13 Workforce Housing Plan A special four-point program will be provided to create workforce housing and increase the supply of housing available to local employees. This program will include providing local preferences for individuals who work within the City of San Luis Obispo and immediately surrounding area the priority to purchase or rent a residence within the Project, owner-occupancy restrictions in the single-family detached units, and a special Workforce Housing Incentive Program which will provide deed-restricted units for workforce housing eligible households (households earning 121-160% of the Area Median income). This workforce housing program seeks to target the Project to local employees, reduce the influence of investors in the limitation of housing choice and availability, provide a down payment assistance program for Workforce Income families, and provide a certain number of units that will be deed-restricted. The elements of the program are as follows: • Local Preference (“SLO Workers First”). Program 10.4 of the City’s Housing Element encourages res- idential developers to “…sell or rent their projects to those residing or employed in the City first before outside markets.” Further, the City and project applicants recognize that one of the principal reasons for the designation of additional residential land in the community in the 2014 Land Use and Circula- tion Element update was to address the current jobs-housing imbalance. One direct and effective way of achieving this is to provide priority for existing employees to rent or purchase residences within the Project. To that end, an interest list has been developed for the Project. Currently, seventy per- cent (70%) of those on the interest list work in the San Luis Obispo area. Avila Ranch agrees to give first preference to rent or purchase a residence within the Project to local employees identified on the interest list. For purposes of this program, the term “local employees” shall include individuals who are employed in business that are located in geographic areas that are customarily included in the City’s annual jobs-housing balance analysis in its General Plan Status Report. These areas include the City’s corporate limits and areas outside the City limits such as Cal Poly, California Men’s Colony, Cuesta College, agricultural lands within the Edna Valley area and business parks on South Broad Street. New employees to businesses in these geographic areas with bonafide employment offers will be considered “local employees” as well. Avila Ranch agrees to maintain and update the interest list through full build-out of the Project. City and Avila Ranch agree that, operationally, this program will be administered as follows: a. Avila Ranch shall maintain the interest list and shall separate and prioritize names of local employees based on interest in product type. b. When product becomes available, usually 270-360 days prior to certificate of occupancy (assuming a 180-day construction period), Avila Ranch shall notify those individuals of the opportunity to purchase a residence starting with the “top of the list.” Those individuals shall have approximately 60 days to get pre-qualified to purchase the residence and to provide Avila Ranch with proof that the individual is a local employee and the time notice (i.e. paycheck or bonafide offer of employment from a local employer.) c. If an individual fails to get pre-qualified or fails to provide Avila Ranch with proof of local employment within the time periods above, then Avila Ranch may remove or put that name at the end of the interest list. ATTACHMENT 2 PH 2 - 110 Dr a f t __________________________________ Avila Ranch July 26, 2017 Affordable & Workforce Housing Plan Page 6 of 13 d. Except for the multi-family apartments, Avila Ranch agrees not to sell any units within the Project to any individual without first offering the unit to a local employee who is on the interest list for that product type. Upon exhausting all local employees on the interest list for a product type, Avila Ranch agrees to give priority in the sale of such units to individ- uals residing in the County (but within Fair Housing constraints and state and local regu- lations), and finally to individuals from outside the county. Nothing herein shall preclude Avila Ranch from notifying multiple individuals with the opportunity to purchase a residence and prioritizing the purchase and sale based on “first in line” principles. Nothing herein shall preclude Avila Ranch from taking all reasonable actions necessary in order to facilitate the sale of units within the Project provided such actions are consistent with the “SLO Workers First” program described herein. Avila Ranch shall, upon request, update the City on its implementation of this program and provide City with the interest list and proof of employment for all sales made under this program. City and Avila Ranch acknowledge that this program described above will accomplish three important objectives: 1) use new housing to address the current imbalance between existing jobs and housing; 2) ensure that, to the maximum extent practicable, that the increased housing in San Luis Obispo results in a decline in the current commute traffic; and, 3) reduce competition from outside buyers in the initial offering and sales. • Owner-Occupancy Restrictions. Avila Ranch agrees to include restrictions in the purchase agreement and Covenants Conditions and Restrictions (CC&Rs) for the single family detached units (R-1 and R-2) substantially in the form as set forth in Attachment “A” requiring these units to be restricted to owner- occupants only for the first five years after sale. In the case of units with Accessory Dwelling Units (ADUs), the Principal Dwelling or the ADU will need to be occupied by the property owner. The final form of these agreements will be determined at the time of development of the first final map, and will provide for appropriate monitoring and enforcement. This component of the CC&Rs may not be modified without the City’s written consent. The City of San Luis Obispo shall be a designated third party beneficiary to these contractual rights and shall have the right to enforce the owner occupancy requirement. Enforcement and monitoring of the owner occupancy requirement on all single-family dwellings however, Avila Ranch and/ or in coordination with a qualified housing non-profit. Upon re- quest, Avila Ranch shall provide City with any information related to Avila Ranch’s implementation and enforcement of this program. Workforce Housing Incentive Program (WHIP). Avila Ranch agrees to provide 25 deed restricted units, including thirteen (13) Pocket Cottage units and twelve (12) R-3 Townhomes, to families in the Workforce Housing category, defined by the City of San Luis Obispo as household incomes of 121% to 160% of Area Median Income (AMI). This program would require that eligible households have in- comes no greater than 160% of the then-current Area Median Income (AMI) (Currently estimated at $133,000 per year) and are income-certified by the Housing Authority of San Luis Obispo or other qualified housing non-profit. For these units, prices would be limited to no more than that required to achieve an Index of Affordability (“Index”) of 31 percent (cost of housing including mortgage prin- cipal, mortgage interest, taxes and insurance divided by 140% of AMI). The Housing Element does not specify an Index of Affordability for Above Moderate household; however, the proposed index is consistent with the requirements of Policy 2.2 of the Housing Element which specifies a 30% Index for ATTACHMENT 2 PH 2 - 111 Dr a f t __________________________________ Avila Ranch July 26, 2017 Affordable & Workforce Housing Plan Page 7 of 13 Moderate Income units, with FHA guidelines, and recognizes the energy and occupancy costs savings proposed as part of the “Net Zero” features of the project. The maximum purchase price would be equal to 5.65 times (140% of 4.05 multiplier) the median income for each household size. For exam- ple, the current 4-person (3 bedroom) median household is $83,200 and the associated maximum price of a 3-bedroom unit would be $470,200, and the maximum purchase price for a two-bedroom unit would be $423,200. These units would have to be occupied by an income qualifying Workforce Housing household for a minimum of ten (10) years; if resold within this ten-year period, the units would need to be sold to another income-qualifying Workforce Housing buyer, and the ten-year af- fordability period would reset. Thirteen (13) of these Workforce units (6 2-bedroom/1-bath units and 7 3-bedroom/2-bath units) will be provided in the R-2 Pocket Cottage portion of the development and twelve (12) units will be provided in the R-3 Townhome portion of the project (6 2-bedroom/1-bath units and 6 3-bedroom/2-bath units). The Workforce units in the Pocket Cottage series will be pro- vided on Lots 32, 46, 60, 74, 79, 89, 90, 117, 365, 379, 393, 315 or 316, and the 12 Workforce un its will be provided as on Lot 407 (see Exhibit 1). The deed restrictions and enforcement would be administered in the same manner that the City does the inclusionary housing requirements. More specifically, prior to recordation of any final map for the Project, Avila Ranch shall enter into and record an Affordable Housing Agreement and Declaration of Restrictive Covenants on title for the Property per City form incorporating the affordability provisions set forth herein. Avila Ranch and City acknowledge that as each workforce housing unit is constructed, a note and deed of trust would be recorded against title to the unit per City form. Avila Ranch acknowl- edges that the note will be in the amount of the difference between the fair market value of the unit and the restricted sale price and will be in favor of City. The City of San Luis Obispo Community Devel- opment Department shall monitor all deed-restricted WHIP units. Down Payment Assistance Program. Avila Ranch agrees to provide a matching down payment assistance (DPA) of five percent of the purchase price up to $20,000 as a “silent second” on the initial sale of the 25 Workforce homes. These units would have to be occupied by an income qualifying Workforce Housing household for a minimum of ten (10) years; if resold within this ten-year period, the units would need to be sold to another income qualifying Workforce Housing buyer and the 10-year deed restriction would reset to 10 more years with the new buyer of the home. The DPA loan would be repaid upon sale of the unit or refinancing, and the proceeds would be placed in a revolving loan fund to assist future workforce, moderate, or lower income home buyers in Avila Ranch. Unlike a reduction in price that would be cap- tured by a future seller at the end of the affordability term, this assistance would continue throughout the life of the funds to assist buyers in the development. The intent is that these funds will be used in conjunction with the initial 25 Workforce units, but these funds could be used for any income qualifying household who purchases a home in Avila Ranch after the initial ten-year workforce affordability period. This will establish a revolving loan fund of approximately $500,000 to be administered by the City of San Luis Obispo. ATTACHMENT 2 PH 2 - 112 Dr a f t __________________________________ Avila Ranch July 26, 2017 Affordable & Workforce Housing Plan Page 8 of 13 Attachment A Sample Owner Occupancy Limitation in Conditions, Covenants and Restrictions (CCRs) Leases: No agreement for the leasing or rental (a "Lease") of a Principal Dwelling Unit or an Ac- cessory Dwelling Unit shall be permitted except as provided herein. Within five years of the date of first occupancy of the Principal Dwelling Unit, there shall be no Lease of the Principal Dwelling Unit without the prior and express approval of the Board based on the determination of the Board that the Lease is reasonably necessary to avoid substantial hardship to the Owner (e.g., ownership and leasing of a Princi- pal Dwelling - Unit for normal investment income purposes would not be permitted). Such hardship may include temporary reassignment of employment to another location, extended requirements for out of state personal commitments, and other factors. A Lease of a Principal Dwelling Unit or an Accessory Dwelling Unit shall be permitted so long as the owner also occupies either the Principal Dwelling Unit or the Accessory Dwelling Unit and the Accessory Dwelling units meets all of the City’s requirements. Any Owner who leases a Principal Dwelling Unit or an Accessory Dwelling Unit (after receiving approval to do so) shall promptly notify the Association and shall advise the Association of the term of the Lease and the name of each tenant. Any Lease shall be subject in all respects to the provisions of this Declaration, the Articles, the Bylaws, the Association Rules, the Architectural Rules and applicable agreements be- tween the Association and any state, local municipal agency; and any Lease shall expressly provide that the Lease is subject to all such instruments and matters. Said Lease shall further provide that any failure by the tenant thereunder to comply with the terms of the foregoing documents shall be a default under the Lease. All Leases shall be in writing. Any Owner who shall lease or rent his Dwelling Unit shall be responsible for assuring compliance by such Owner's tenant with this Declaration, the Articles, the Bylaws, the Association Rules and the Architectural Rules, and shall be jointly and severally responsible for any violation thereof by his tenant. No Dwelling Unit shall be leased for transient or hotel purposes, for short term vacation rentals, which shall be defined as rental for any period less than thirty (30) days, or any rental whatsoever. No Dwelling Unit shall be leased or rented to more than a single family at any time. Tenants under Leases shall not have voting rights in the Association, but may utilize Common Areas in the same manner as Owners. ATTACHMENT 2 PH 2 - 113 Dr a f t __________________________________ Avila Ranch July 26, 2017 Affordable & Workforce Housing Plan Page 9 of 13 Attachment B Sample Purchase Agreement Occupancy Addendum ADDENDUM “__” to CONTRACT FOR PURCHASE AND SALE OF REAL PROPERTY (_______________) OCCUPANCY PERIOD AND USE AS PRINCIPAL RESIDENCE addendum PROPERTY: Lot ___ of Tract No. Address: _____________________________________________________ ________ This is an addendum (the “Addendum”) to the Contract for Purchase and Sale of Real Property (the “Con- tract”) dated , 20______, between __________________, as “Seller,” and the undersigned, as “Buyer,” concerning the property described above (the “Property”). This Addendum modifies the Contract as set forth below. All terms used as defined terms below shall have the same meaning as when used in the Contract unless expressly stated otherwise in this Addendum. Seller desires to sell the Property only to a Buyer only if Buyer will occupy the Property as Buyer’s principal residence for at least five (5) years. Buyer acknowledges that imposition of the minimum occupancy pe- riod contained in this Addendum, and Seller’s limitation of selling only to owner-occupants is a material consideration, and that Seller is forfeiting potential additional profits by selling to Buyer and other owner- occupants. Therefore, to induce Seller to agree to sell the Property to Buyer, Buyer represents and agrees as follows: 1. Use as Principal Residence for five years. Buyer represents and warrants to Seller : (a) that Buyer is purchasing the Property for use as Buyer’s principal residence; and, (b) that Buyer will occupy the Property as Buyer’s principal residence upon the Close of Escrow; and, (c) that Buyer shall not attempt to transfer Buyer’s rights under the Contract nor enter into any agreement for the lease, sale or other transfer of the Property which would result in Buyer’s failure to occupy the Property as Buyer’s principal residence and hold title thereto in fee simple for a period of five (5) years from the Close of Escrow of Buyer’s purchase of the Property (the “Occupancy Period”). The provisions this Paragraph and the accuracy of the above representations and warranties consti- tute a covenant of Buyer and a condition precedent to Seller’s performance under the Contract. In the case of Property with a Principal Residence and an Accessory Dwelling Unit, the Buyer shall occupy either the Principal Residence or the Accessory Dwelling Unit. Failure of Buyer to occupy the Principal Residence shall not constitute a breach of this Addendum. 2. Transfer Prior to Close of Escrow. Any attempt by Buyer to assign Buyer’s rights under the Con- tract and/or to lease, sell or otherwise transfer the Property prior to the Close of Escrow for the sale of the Property without Seller’s prior written consent shall constitute both of the following: (1) Buyer’s default under the Contract, entitling Seller, at its sole election, to terminate the Con- ATTACHMENT 2 PH 2 - 114 Dr a f t __________________________________ Avila Ranch July 26, 2017 Affordable & Workforce Housing Plan Page 10 of 13 tract and retain Buyer’s deposit pursuant to Paragraph the Contract; and, (ii) the failure of a con- dition precedent to Seller’s obligation to sell the Property to Buyer. Seller’s remedies may occur prior to or after the Close of Escrow for the sale of the Property to Buyer. If the Buyer breaches the provisions of this Addendum and the Escrow for the sale of the Property to Buyer has closed, Seller shall be entitled to damages as set forth in Paragraph 4 of this Addendum. 3. Seller’s Right to Terminate CONTRACT. Buyer understands and agrees that Seller has the unilat- eral right, in its sole discretion, to terminate the Contract and cancel the Escrow in accordance with Paragraph 2 above, if Buyer takes or has taken any of the following actions: (a) assigns the Contract to another person prior to the Close of Escrow; or, (b) advertises, lists or otherwise offers the Property for sale or rent to others at a time or manner which would result in the failure or inability of the Buyer to reside in the Property for the full Occupancy Period; or,, (c) enters an agreement to sell or rent the Property which would cause Buyer to move from the Property prior to the expiration of the Occupancy Period; or, (d) takes any other action which indicates to Seller that Buyer does not have a bona fide intention of residing in the Property as Buyer’s principal residence for the full Occupancy Period. 4. Transfer Subsequent to Close of Escrow. Except for “hardship” situations as described in Exhibit “A” to this Addendum, attached hereto, any sale, lease or other transfer by Buyer under which Buyer either fails to occupy the Property for the Occupancy Period or transfers fee simple title to the Property prior to the expiration of the Occupancy Period shall constitute Buyer’s default under the Contract. Any such default shall entitle Seller to any of the following remedies: (a) in the case of a sale or other transfer of fee title to the Property, Seller shall be entitled to the amount of the appreciation of the Property which has occurred after the Close of Escrow; or, (b) in the case of a lease or other occupancy agreement, the greater of (i) the actual rent and/or other economic consideration or (ii) the fair market rental value of the Property (collectively, “Rent”) payable to or for the benefit of Buyer during the Occupancy Period in connection with such lease or other occupancy agreement. For purposes of this Addendum, “appreciation” shall be mean the differ- ence between (i) the fair market value of the Property at the time of Buyer’s sale thereof, less Buyer’s customary costs of resale such as broker’s commission, escrow fees and title costs, and (ii) the Total Purchase Price of the Property plus Buyer’s actual cost paid for any improvements made by Buyer to the Property, as evidenced by paid unrelated third-party invoices. Buyer shall pay appreciation to Seller concurrently with the sale or other transfer of fee title to the Property by Buyer. Buyer shall pay Rent to Seller within the first five (5) days of each calendar month during the Occupancy Period. 5. No Unreasonable Restraint. Buyer acknowledges that the purpose of this Addendum is to comply with Seller’s intention to sell homes only to persons who will occupy them as a principal residence, to obtain a stabilized community of owner-occupied homes, to prevent a shortage of available homes to the local workforce, and to prevent a shortage of homes to permanent residents of San Luis Obispo. Buyer agrees that the provisions and restrictions set forth in this Addendum do not constitute an unreasonable restraint upon alienation of the Property. 6. Survival: severability grant. All of the covenants contained herein shall survive the delivery and recordation of the deed conveying the Property from Seller to Buyer and the Close of Escrow. The ATTACHMENT 2 PH 2 - 115 Dr a f t __________________________________ Avila Ranch July 26, 2017 Affordable & Workforce Housing Plan Page 11 of 13 provisions of this Addendum shall be independent and severable, and a determination of invalid- ity or partial invalidity or enforceability of any one provision or portion hereof shall not affect the validity or enforceability of any other provision of this Addendum or the Contract. 7. Subordination. Buyer hereby acknowledges and agrees that a violation of this Addendum by Buyer shall not defeat or render invalid the lien of any first mortgage or deed of trust made in good faith and for value by Buyer, and that the covenants and provisions of this Addendum shall be inferior and subordinate to the lien of any such first mortgage or deed of trust recorded con- currently with the deed conveying the Property to Buyer. 8. Entire Agreement. This Addendum and Exhibit “A” hereto contain the entire agreement between Buyer and Seller concerning the matters set forth herein. All prior discussions, negotiations and agreements, if any, whether oral or written, are hereby superseded by these documents. No addition or modification of this Addendum or the Contract shall be effective unless set forth in writing and signed by Buyer and an authorized officer of Seller. 9. Attorney’s Fees. In the event of controversy, claim or dispute relating to breach of the terms of this Addendum, the prevailing party shall be entitled to recover from the losing party reasonable expenses, including attorneys’ fees and costs. 10. No Third-Party Beneficiaries. There are no third-party beneficiaries to this Addendum. 11. Capitalized Terms. Various capitalized terms used in this Addendum are defined in the Agree- ments and shall have the same meaning as set forth herein, unless otherwise indicated herein. Buyer acknowledges that Buyer has read the provisions of this Addendum and that Buyer understands the provisions and finds them to be reasonable. IN WITNESS WHEREOF, the parties have executed this Addendum and make if effective as of the date of Seller’s acceptance indicated below. “SELLER” By: ______________________ Its: ______________________ Seller’s Acceptance Date: , 20_ “BUYER” _____________________ (Signature) ____________________ (Signature) ____________________ (Signature) Buyer’s Acceptance ATTACHMENT 2 PH 2 - 116 Dr a f t __________________________________ Avila Ranch July 26, 2017 Affordable & Workforce Housing Plan Page 12 of 13 Date: , 20_ EXHIBIT “A” TO ADDENDUM “__” The following events shall be deemed to constitute “hardship” situations under which Buyer may transfer, sell, assign, convey or lease (each of which is “a Transfer”) its right, title and interest in the Property prior to either (a) Close of Escrow, or (b) occupying and holding title to the property for a period of five y (5) years from Close of Escrow: A Transfer resulting from the death of Buyer; Transfer by Buyer where the spouse of Buyer becomes the only co-owner of the Property with Buyer; A Transfer resulting from a decree of dissolution of marriage or legal separation or from a property set- tlement agreement incident to such decree; A Transfer by Buyer into a revocable inter vivos trust in which Buyer is a beneficiary; A Transfer, conveyance, pledge, assignment or other hypothecation of the Property to secure the perfor- mance of an obligation, which transfer, conveyance, pledge, assignment or hypothecation will be released or re-conveyed upon the completion of such performance; A Transfer by Buyer where necessary to accommodate a mandatory job transfer required by Buyer’s em- ployer (not including Buyer, if Buyer is self-employed); A Transfer necessitated by a medical or financial emergency, proof of which emergency has been deliv- ered to Seller, and has been approved by Seller in its reasonable discretion; A Transfer which, in the reasonable judgment of Seller, constitutes a “hardship” situation consistent with the intentions of this Addendum and this Exhibit “A” thereto. ATTACHMENT 2 PH 2 - 117 Dr a f t __________________________________ Avila Ranch July 26, 2017 Affordable & Workforce Housing Plan Page 13 of 13 Exhibit 1 ATTACHMENT 2 PH 2 - 118 Dr a f t Exhibit H Water Improvements ATTACHMENT 2 PH 2 - 119 Draft AV I L A R A N C H D E V E L O P M E N T P L A N Ma y 2 , 2 0 1 7 #1 0 1 1 0 2 3 A25 Re c y c l e d W a t e r : P r o p o s e d Do m e s t i c W a t e r : P r o p o s e d UT I L I T I E S L E G E N D Wa t e r S u p p l y P l a n ATTACHMENT 2 PH 2 - 120 Dr a f t Exhibit I Water Well Site Plan ATTACHMENT 2 PH 2 - 121 Draft AV I L A R A N C H D E V E L O P M E N T P L A N Ma y 2 , 2 0 1 7 #1 0 1 1 0 2 3 A3 Co m p o s i t e S i t e P l a n 0 7 5 1 5 0 30 0 SC A L E : 1 ” = 1 5 0 ’ ( 2 4 ” x 3 6 ” s h e e t ) RE F E R T O A 6 F O R AD D I T I O N A L D E T A I L REFER TO A9 FOR ADDITIONAL DETAIL REFER TO A8 FOR ADDITIONAL DETAIL REFER TO A7 FOR ADDITIONAL DETAIL RE F E R T O A 5 F O R AD D I T I O N A L D E T A I L RE F E R T O A 4 F O R AD D I T I O N A L D E T A I L ATTACHMENT 2 PH 2 - 122 Dr a f t Exhibit J Bicycle and Multimodal Improvements ATTACHMENT 2 PH 2 - 123 Dr a f t Exhibit J Bicycle and Multimodal Improvements Development Plan Features Pedestrian and Bicycles: 1. Class I Bike Paths. Construct Class I multi-use paths in accordance with the project site plan and connect them to the off-site transportation network consistent with the City’s Bicycle Transportation Plan. The Buckley Extension Class I bike lane will be provided ahead of the street improvements, such to availability of right of way. 2. Class II Bike Lanes. Construct 8-foot Class II “buffered” bike lanes on all Residential Collectors and Commercial Collectors in the Project (Earthwood, Venture, Jesperson and Horizon), and on offsite roads including Vachell and Buckley along the project frontages. The Buckley Extension shall include a 8’ buffered bike lane in addition to the Class I. Offsite Earthwood to Suburban shall be minimum 6’ bike lane width if parking is removed subject to approval of the Director of Public Works. Buffered bike lane shall use appropriate separation devices, subject to approval of the Director of Public Works, that will assist in providing positive separation between vehicles and bicyclists. 3. Bike Bridges. Construct three bike bridges across Tank Farm Creek, one for eastbound traffic on the south side of Buckley to provide east-west connectivity on Buckley Road, and the other along the north side of Buckley on the southern side of Phase 1. An additional bike bridge across Tank Farm Creek will be constructed between Phase 2 area and Phase 5 area as part of phase 5 development or when the offsite Chevron Class I facility is constructed, whichever occurs sooner. 4. Tank Farm Creek Bike Path Connectivity. The Chevron portion of the Tank Farm Creek Class I bike path will be constructed by the project to improve connectivity subject to the following: 1) city provides the right of way; 2) connection is made in conjunction with Phase 4 (onsite Tank Farm Creek bike path will be completed in Phase 3; 3) any right of way expense should be paid for by the City and any bike and ped improvement should be included within the reimbursement agreement; and, 4) City will ensure that the cost of the improvements will be completely reimbursed by the end of the buildout. 5. Octagon Barn/Buckley Road Connectivity. The Land Conservancy and SLO Bike Club have noted that the portion of the Bob Jones Trail between the Octagon Barn and the Buckley Extension is a missing link. The County currently has a ROW reservation (but not an irrevocable offer) for this area. The project will construct this subject to ROW being provided. ROW should/could be acquired at the time Buckley Extension ROW is secured from the same property owner.) 6. Bikes and E-Bikes. E-bikes have been identified as a potential asset to increasing the range and frequency of bike usage, including work trips and weekly shopping trips. The project will provide a $750 voucher to each R-1, R-2 and R-3 Duplex household. Each separate R-3 Townhome and R- ATTACHMENT 2 PH 2 - 124 Dr a f t 4 development shall provide a pool of bikes and e-bikes, at an initial rate of one bike per seven units (28 e-bikes for the R-3, and 18 e-bikes for the R-4), with at least half of the pool being e- bikes. The R-4 and R-3 owners/HOAs would be responsible for operation of this pool and it shall be maintained in perpetuity. 7. Pedestrian Improvements. Pedestrian improvements will be provided along Suburban, Vachell and Higuera to eliminate the missing links of sidewalks and/or elimination of non-ADA compliant crossings. Appendix F shows the scope of these improvements. 8. Enhanced Pedestrian and Bicycle Connectivity. These changes include narrower vehicle lanes and wider bike lanes on internal streets. Vehicle lanes have been narrowed to 10 feet while bicycle lanes have been widened to a full 8-foot buffered bike lane standard. These buffered bike lanes occur on all internal major streets, including Earthwood, Venture, Jesperson and Horizon. Special at-grade “speed table” pedestrian street crossings per Sheets A15 and A16 have also been included to provide for the traffic calming and a continuous walking experience. Finally, pedestrian through connections have been specified along and between residential blocks. This results in a pedestrian intersection density of over 500 intersections per square mile, well in excess of the standard established by LEED and the Smart Growth Coalition. Car Sharing: 1. Shared Mobility strategies will be included to reduce the necessity for additional vehicles for each family. Car sharing would be provided in the development at an initial rate of one car per 50 residences, with at least 50 percent of that fleet in the form of electric vehicles. Vehicles would be stored onsite in guest parking spaces, near public parks and on where approved by the City on public streets. Transit: 1. Provision of transit stops on the project site. Phase 1 will include a transit stop on Earthwood north of Venture, and Phase 4 will include a transit stop at the Town Center. 2. The project site will also be served by bus service from the San Luis Coastal Unified School District. Transit stops will be provided throughout the project in accordance with their requirements. 3. The project shall ensure adequate transit services are provided to the project by the 50th unit of Phase I development. Mitigation Measures & Conditions of Approval: 1. All Mitigation Measures and Conditions of approval as identified in final Council resolution for the project shall be implemented. ATTACHMENT 2 PH 2 - 125 Dr a f t ATTACHMENT 2 PH 2 - 126 Dr a f t ATTACHMENT 2 PH 2 - 127 P:\161000s\161181AvilaRanch\Feasibility Analysis\Draft Avila Ranch Feasibility Memorandum_08-02-17.docx D R A F T M E M O R A N D U M To: Katie Lichtig, City Manager Derek Johnson, Assistant City Manager From: Walter Kieser and Ashleigh Kanat Subject: Avila Ranch Financial Feasibility and Community Benefits Program; EPS #161181 Date: August 2, 2017 As a part of our broader scope of financial services related to the Avila Ranch Project, Economic & Planning Systems, Inc. (EPS) has been asked to evaluate the financial feasibility of the Project from a private sector “developer” perspective, document how infrastructure will be funded, and also explore the community benefits deriving from the development of the Project, including the general benefits expected to occur and also the “extraordinary” benefits offered by the Developer in connection with the City’s willingness to enter into a development agreement. It is important to document feasibility to assure that the Project, as planned, can meet its infrastructure financing obligations while remaining competitive and feasible in the marketplace. Regarding the extraordinary community benefits offered, it is necessary to find that these benefits to the community equal or exceed the value of the Development Agreement to the Developer. Findings 1. Avila Ranch Project has the potential to achieve the financial returns necessary to attract the needed equity and commercial credit. Based upon our review of the Developer’s pro forma financial analysis it is our opinion that the Avila Ranch Project can be financially feasible as indicated by the measures of financial return applied. This finding is sensitive to the market pricing ultimately achieved and absorption rates, the actual project costs, and the Project’s “fair share” allocation of region-serving infrastructure and how these costs are financed. It is noted that the Developer is not providing a “guarantee” on the pricing of the homes (other than deed restrictions on the affordable (inclusionary) units and the Workforce units being offered). ATTACHMENT 3 PH 2 - 128 Draft Memorandum August 2, 2017 Avila Ranch Financial Feasibility and Community Benefits Program Page 2 2. In addition to Developer funding provided, the City has a range of options for funding region-serving infrastructure. As a part of the broader environmental impact and traffic analysis for the Avila Ranch Project the City has identified some $66.7 million of improvements that are needed to serve the Project along with alleviating existing traffic congestion and serving other future development in the southern area of the City and the County as it develops over the coming decade. Table 1 provides a summary of how this infrastructure will be funded, including costs that are attributable to the Avila Ranch Project based upon the City’s “fair share” cost allocation and the amount over this “fair share” the Developer has agreed to fund as per the Development Agreement. The City has a range of funding options for reimbursing the Developer for a portion of the costs above the “fair share” allocation of the remaining cost above the “fair share” allocation, including proceeds of its development impact fees, working with the County to ensure the County pays its “fair share” allocation of infrastructure costs, and possibly a portion of the proposed CFD special tax revenue. Table 1 Summary of Avila Ranch Infrastructure Funding 3. The Avila Ranch Project will create a range of community benefits and offers extraordinary community benefits exceeding the value of the Development Agreement to the Developer. The Avila Ranch Project has been designed to a high development standard and as such will confer a range of community benefits to the City including implementation of General Plan policies, creation of construction and permanent employment, providing park area in an area of town that is deficient of public parks, and funding needed improvements to region-serving infrastructure. Additionally, extraordinary community benefits (beyond those items that occur naturally or are required) are being offered including funding infrastructure beyond the Developer’s “fair share” cost allocation, providing home sales preferences for local workers and owner occupants, exceeding State and City’s energy efficiency standards, accelerating compliance with the City’s Climate Action Plan, and exceeding the City’s multimodal goals and objectives. Based upon our analysis, the extraordinary community benefits are estimated to be $34.5 million and the value of the Development Agreement to the Developer is estimated to be $4 million, thus the benefits to the community far outweigh the Developer’s benefits. Item Amount Notes a. Total Infrastructure Cost Estimate $66,672,134 City and Developer estimates b.    Avila Ranch “Fair Share”$47,489,404 City TDM, EIR, and Conditions of Approval c. Development Agreement Funding Commitment $56,546,944 As referenced in Development Agreement d.    Developer Funding above “Fair Share”$9,057,540 (c – b) Adds to Project's community benefits e. Balance of Costs to be Funded $10,125,190 (a – c) Funding sources include City development  impact fees, grants, County funding and CFD Sources: Avila Ranch LLC; City of San Luis Obispo; Economic & Planning Systems, Inc. ATTACHMENT 3 PH 2 - 129 Draft Memorandum August 2, 2017 Avila Ranch Financial Feasibility and Community Benefits Program Page 3 Project Revenues The Avila Ranch Project revenue will be derived primarily from building and selling homes. Additional revenue will be derived from sale of the sale of the two small commercial parcels to other builders. The residential pricing assumptions used in the pro forma financial analysis reflect a market range of average prices from $450,500 for a small market rate R-2 “Pocket Cottage” unit, to $739,000 for the largest single-family home prototype. These prices will be discounted by several of the programs being offered by the Developer including the owner-occupant restriction and the local worker priority program. The pro forma financial analysis shows closing sales (of housing and the commercial parcels occurring (following a construction period that begins in 2020) from 2020 through 2029. Pricing (as cited above) and absorption assumptions (i.e., an average of seven rentals per month and 5 sales per month) are consistent with current and expected future market conditions, and considered conservative for purposes of the pro forma analysis. The Project’s affordable (inclusionary) housing program and Workforce Housing program are reflected (as a discount) on Project revenues and beyond these price-restricted units, as noted above, no other price restrictions will occur. Project Costs Project costs shown in the pro forma financial analysis include the full range of costs required to develop the Avila Ranch:  Land Acquisition  Pre-Development Costs  Site Improvements  City Development Impact Fees and Permitting Fees  Offsite Improvements  Vertical Construction Costs and Contingency These costs as reflected in the pro forma financial analysis all fall in a range typical for such development projects. Financing (construction loan interest) is also included. Rate of Return to Equity Investment The Avila Ranch Project, as is the case for all major development projects, requires substantial equity investment as well as commercial credit for both site development and vertical construction costs. Real estate finance became considerably more difficult as the result of the Great Recession due to increased standards and costs for commercial credit including higher equity requirements to obtain credit. These higher equity requirements increase the need for equity investment and also contribute to overall costs due to the greater risks involved in equity investment. The “threshold” “cash on cash” returns identified in the Avila Ranch pro forma financial analysis meet typical real estate industry standards for development projects at this predevelopment stage of development. Avila Ranch Infrastructure Financing Strategy In cooperation with City staff and the Project Developer Team, EPS has been documenting infrastructure needs and costs and options for funding this infrastructure. In the case of Avila Ranch there are two components of this Strategy: 1) assuring that the Avila Ranch Project ATTACHMENT 3 PH 2 - 130 Draft Memorandum August 2, 2017 Avila Ranch Financial Feasibility and Community Benefits Program Page 4 commits developer equity to funding infrastructure costs within the Project and also their “fair share” of offsite regional improvements; and 2) funding the portion of offsite regional improvements not allocated to Avila Ranch through a reimbursement agreement with the Developer. Our review of infrastructure costs and funding options has determined that the project related costs and the “fair share” allocation of regional costs and the City share can be secured. Community Benefits The Avila Ranch Project, by virtue of its development and conforming to City planning policies, regulatory standards, and mitigating potential environmental impacts will confer a range of community benefits in the City of San Luis Obispo including:  Creating a new residential neighborhood consistent with General Plan policies  Providing a range of housing prototypes that include small, higher density units that will be “affordable by design”  Providing new housing targeted at the City’s working families and including 67 contractually price-restricted affordable (inclusionary) housing units, and 25 price-restricted Workforce Housing Units.  Achieving “net-zero” energy consumption and other energy efficiency standards  Generating employment for the City’s construction-related companies and workers  Financing infrastructure that in addition to meeting travel demands created by the Project relieves existing congestion and provides additional capacity for other future development  Providing 53 acres of open space including land set aside for continued agricultural use preserving a bit of the area agricultural heritage. Extraordinary Community Benefits Extraordinary community benefits of a development project are specific public improvements that could not be required by the City following normal City code requirements that must meet Constitutional standards and statutory standards to achieve the “rational nexus” test. Additionally, positive effects of the project including community development objectives or social, economic and/or fiscal benefits, while a precondition for a development agreement, should not be considered as extraordinary community benefits. There are two categories of extraordinary community benefit being offered by Avila Ranch: Community Benefits: Public Improvements or Contributions Exceeding Code or EIR Mitigation Requirements The developer has committed to constructing or funding improvements or mitigating impacts that exceed the mitigation measures specified in the project environmental impact report or other City-determined requirements. The developer has also agreed to build a public improvement in advance of when it might otherwise be required. For example, an intersection improvement that may not be required to mitigate project-induced congestion until five years in the future could be built in advance, assuring that the improvement is constructed and conferring congestion reduction immediately. These improvements are summarized below in Table 2. ATTACHMENT 3 PH 2 - 131 Draft Memorandum August 2, 2017 Avila Ranch Financial Feasibility and Community Benefits Program Page 5 Table 2 Summary of Community Benefits in Development Agreement Taken as a whole these cited community benefits total $34.5 million. The estimates were prepared by the Developer’s financial consultant, Kosmont Companies and have been reviewed for assumption and computational accuracy by EPS. Comparing the Cost of Community Benefits with Value Created The community benefits offered by the developer or sought by the City will ultimately bear some relationship to the value of the project; the developer will need to rationalize the additional cost of these community benefits into its overall project economics. However, as a general measure the community benefits offered should meet or exceed the estimated value of the vested entitlement to the developer combined with the additional benefit to the developer from other special terms granted by the City (e.g., infrastructure financing contributions, formation of financing districts, etc.). Value of Vesting the Entitlement The value of vesting the entitlement (and related assurances provided by the Development Agreement) involves the guarantee that no discretionary changes (rezoning, etc.) can occur for the duration of the Development Agreement and that the rate of development will be unimpeded. This entitlement guarantee is typically measured in terms of reduced risk to the Developer. This reduction in risk and related costs can be calculated in any given case by determining the reduction of the threshold internal rate of return (IRR) applied to the duration of the agreement associated with reduced entitlement risk. Value of Terms Offered Conferring Additional Benefit to the Developer As noted, the developer has requested other considerations intended to lower costs or improve project revenues. In this instance, the allocation of housing units under the City’s Growth Management Program and also the commitment by the City to complete reimbursement of the Development Agreement Contributions Total Net Contribution by Avila Ranch above Fair Share Creating parkland in excess of the City’s General Plan standard $1,177,000 Funding traffic and circulation improvements above the “fair-share” allocation $11,369,000 Providing car and bike sharing programs $730,000 Providing 10 additional “low income” units replacing “moderate income units”$1,694,000 Sponsoring a Workforce Housing Incentive Program $810,000 Sponsoring an “Owner Occupancy Restriction” on R-1 and R-2 units $5,006,000 Sponsoring a local worker (San Luis Obispo) priority program $5,006,000 Applying water conservation measures in excess of code requirements $1,019,000 Applying energy conservation measures, including solar PV and “net-zero” building efficiency $5,836,000 Building interim fire station $1,815,000 Developing water and sewer improvements in excess of code requirements $55,000 Total Extraordinary Community Benefits (Rounded)$34,517,000 Sources: Avila Ranch LLC; Kosmont Companies; Economic & Planning Systems, Inc. ATTACHMENT 3 PH 2 - 132 Draft Memorandum August 2, 2017 Avila Ranch Financial Feasibility and Community Benefits Program Page 6 Developer’s investment in capital facilities above the “fair share” amount in a fixed time period confer additional benefits to the Developer. Assuming these considerations are acceptable to the City, they should also be offset by the value of community benefits offered. As a part of this effort a review of the Developer’s pro forma financial analysis was conducted by EPS, subject to the terms of a non-disclosure agreement. Applying the standard method of measuring a reduction in the “threshold IRR” associated with lower risks and costs to the Avila Ranch Project associated with three entitlement assurances (elimination of future regulatory discretion, compression of the buildout schedule associated with the fixed allocation of housing units and establishing a fixed period for reimbursement of the Developer’s oversizing investments), a value of the Development Agreement to the Developer of approximately $4 million is estimated. Given this analysis, it is concluded that the Development Agreement extraordinary community benefits conveyed to the City and the Community from the Avila Ranch Project, estimated to be in the range of $34.5 million, substantially outweigh the estimated $4 million benefit of the Development Agreement to the Avila Ranch Developer. ATTACHMENT 3 PH 2 - 133 O ______ ORDINANCE NO. _____ (2017 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO, A CHARTER CITY, AND AVILA RANCH LLC WHEREAS, on May 4, 2015, Avila Ranch, LLC (“Applicant”) submitted a development plan proposal for a new, primarily residential development with up to 720 dwelling units ("the Project") on a 150-acre site north of Buckley Road, located within the Airport Area Specific Plan (“AASP”) boundaries. The Project also includes 15,000 square feet of neighborhood-serving retail and office uses next to a neighborhood park, as well as the preservation of agricultural uses and open space. The development plan contains the specific development proposal for the site, including a land use framework, design guidelines and concepts, circulation plan, and infrastructure plan. The Project as proposed is envisioned to implement the policies and development parameters as articulated in the recent Land Use and Circulation Elements (LUCE) update, other elements of the General Plan, the AASP, and the City’s Community Design Guidelines; and WHEREAS, on May 16, 2017, the City Council authorized the City Manager to initiate discussions with the Applicant for a Development Agreement and to execute a third-party reimbursement Agreement for the Applicant to reimburse the City for the costs of any outside legal or technical consultants the City may require to assist with the negotiation or review of the Avila Ranch application for a Development Agreement; and WHEREAS, the City retained both outside legal and financial consultants to assist with negotiations and analysis of the proposed development agreement at the Applicant’s expense; and WHEREAS, the financial analysis prepared for this project concludes that extraordinary public benefits that the City will receive from the Development Agreement exceed the value to the Applicant by approximately $30 million; and WHEREAS, a Draft Environmental Impact Report dated November 2016 and a Final Environmental Impact Report dated June 2017 have been prepared analyzing the environmental effects of the proposed development Project; and WHEREAS, the proposed Development Agreement provides for the orderly development of the Project and outlines financing mechanisms to construct infrastructure, identifies funds for potential reimbursement for certain infrastructure costs, requires sustainable building features and technology that have the potential to reduce greenhouse gas emissions, establishes an offsite agricultural mitigation strategy, requires funds for transit improvements to offset air quality emissions, and incorporates affordable housing requirements that exceed those standards as set forth in the City’s applicable housing policies, ordinances and programs; and WHEREAS, the Development Agreement for the Project implements the Avila Ranch Development Plan and related entitlements as evaluated in the Final Environmental Impact Report and does not introduce any new potential environmental impacts; and ATTACHMENT 4 PH 2 - 134 Ordinance No. _____ (2017 Series) Page 2 WHEREAS, the Development Agreement does authorize the project to accelerate buildout of the project above the phasing schedule so long as there is outstanding indebtedness owed to Avila Ranch for offsite improvements as determined by findings by the Community Development Director and that the phasing will not exceed the City’s Growth Management Ordinance; and WHEREAS, an acceleration in the buildout of the project schedule will not introduce any environmental impacts because: 1) the acreage and boundaries of each phase of development will remain the same as that analyzed in the EIR; 2) the sequence of development will remain the same as that analyzed in the EIR; 3) project components such as road improvements that serve to mitigate impacts as well as mitigation measures identified in the EIR will continue to apply to each phase of development; 4) the cumulative buildout of the project was analyzed in combination with other projects under development and analyzed with the full buildout of the City as forecasted in the 2014 LUCE General Plan Update and related Final Environmental Impact Report for the project; and 5) all applicable mitigation measures for each phase of development would also be accelerated to coincide with any phased portion of development under construction; and WHEREAS, on June 28, June 29, July 12, and August 9, 2017, the City's Planning Commission held duly noticed public hearings on the Project and the Development Agreement. On August 9, 2017, the Planning Commission recommended that the City Council: 1) certify the Environmental Impact Report, adopt appropriate CEQA findings and Statement of Overriding Considerations, and adopt a Mitigation and Monitoring and Reporting Plan; 2) approve the Airport Area Specific Plan Amendment, General Plan Amendment and Rezone; 3) approve the Avila Ranch Development Plan based on findings that the project is consistent with the General Plan and Airport Area Specific Plan, as amended; 4) approve the Vesting Tentative Tract Map No. 3089; and 5) approve the Development Agreement. and WHEREAS, on September 19, 2017, the City Council adopted resolutions certifying the Final Environmental Report for the Project and adopting CEQA findings and a statement of overriding considerations and a mitigation monitoring plan; and WHEREAS, the City Council finds that the Development Agreement is consistent with the objectives, policies, general land uses and programs specified in the General Plan of the C ity of San Luis Obispo, as described below, and as further detailed in the accompanying City Council staff report prepared for this project and the exhibits thereto: A. The proposed Development Agreement is consistent with the objectives, policies, general land uses and programs specified in the general plan and any applicable specific plan, in that Land Use and Circulation Element (LUCE) Policy 8.1.6. SP-4, Avila Ranch Specific Plan Area. Specifically, the project: a. incorporates a variety of housing types and affordability levels; b. Modification of the Airport Area Specific Plan to either exclude this area or designate it as a special planning area within the Airport Area Specific Plan. c. Provision of buffers along Buckley Road and along eastern edge of property from adjacent agricultural uses. ATTACHMENT 4 PH 2 - 135 Ordinance No. _____ (2017 Series) Page 3 d. Provision of open space buffers along northern and western boundaries to separate this development from adjacent service and manufacturing uses. e. Provision of open space buffers and protections for creek and wildlife corridor that runs through property. f. Safety and noise parameters described in this General Plan and the purposes of the State Aeronautics Act; or other applicable regulations relative to the San Luis Obispo Regional Airport. g. Fully funding Buckley Road and the connection of Buckley Road to South Higuera Street. h. Appropriate internal and external pedestrian, bicycle, and transit connections to the City’s circulation network. i. Implementation of the City’s Bicycle Transportation Plan including connections to the Bob Jones Trail. j. Water and wastewater infrastructure needs as detailed in the City’s Water and Wastewater Master Plans. k. Provides funding for fire protection and impacts to emergency response times. l. Includes architectural design that relates to the pastoral character of the area and preserves view of agrarian landscapes. m. Provision of neighborhood parks that exceed applicable General Plan Policies. B. Furthermore, the Project is consistent with LUCE's overall land use policies by providing community benefits for the area, including but not limited to, affordable and workforce housing, and contributions that would support transportation, parks and recreation, multi modal infrastructure, and recycled water infrastructure programs in the City. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. In addition to the findings set forth in the recitals, which are incorporated herein by this reference, the City Council hereby finds based on evidence described above, as follows: a. The proposed Development Agreement attached hereto as Exhibit “A” is consistent with the general plan and the Airport Area Specific Plan; b. The proposed Development Agreement complies with zoning, subdivision and other applicable ordinances and regulations; c. As described in the recitals above, the proposed Development Agreement promotes the general welfare, allows more comprehensive land use planning within the airport area, and provides substantial public benefits and necessary public improvements for the region, making it in the city’s interest to enter into the Development Agreement with the applicant; and d. The proposed Avila Ranch project and Development Agreement: i. Will not adversely affect the health, safety or welfare of persons living or working in the surrounding area; and ATTACHMENT 4 PH 2 - 136 Ordinance No. _____ (2017 Series) Page 4 ii. Will be appropriate at the proposed location and will be compatible with adjacent land uses. SECTION 2. Action. The Development Agreement is hereby approved subject to such minor, confirming and clarifying changes consistent with the terms thereof as may be approved by the City Manager, in consultation with the City Attorney, prior to the execution thereof. SECTION 3. Upon the effective date of this Ordinance as provided in Section 7 hereof, the Mayor and City Clerk are hereby authorized and directed to execute the Development Agreement and, upon full execution, record the Development Agreement in the Official Records of San Luis Obispo County. SECTION 4. The City Manager is hereby authorized and directed to perform all acts authorized to be performed by the City Manager in the administration of the Development Agreement pursuant to the terms of the Development Agreement. SECTION 5. CEQA determination. The City Council hereby finds that the Development Agreement has been environmentally reviewed pursuant to the provisions of the California Environmental Quality Act (Public Resources Code Sections 21000, et seq. (“CEQA”), the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000, et seq.) and the City’s local standards. The City prepared an Initial Study and, based on information contained in the initial study, concluded that there was substantial evidence that the Project might have a significant environmental impact on certain resources. Pursuant to CEQA Guidelines Section 15064 and 15081, and based upon the information contained in the Initial Study, the City ordered the preparation of an Environmental Impact Report (“EIR”) for the Project to analyze potential impacts on the environment. The City Council certified the EIR on _______ pursuant to Resolution No._____ (2017 Series) made certain CEQA findings and determinations and adopted a Statement of Overriding Considerations and Mitigation and Monitoring Program. Resolution No. _____ (2017 Series) is incorporated herein by this reference, and made a part hereof as if fully set forth herein. The City Council finds that accelerated buildout of the project as authorized by the Development Agreement will not cause any new significant environmental effects or a substantial increase in the severity of previously identified effects because, among other things: 1) the acreage and boundaries of each phase of development will remain the same as that analyzed in the EIR; 2) the sequence of development will remain the same as that analyzed in the EIR; 3) project components such as road improvements that serve to mitigate impacts as well as mitigation measures identified in the EIR will continue to apply to each phase of development; 4) the cumulative buildout of the project was analyzed in combination with other projects under development and analyzed with the full buildout of the City as forecasted in the 2014 LUCE General Plan Update and related Final Environmental Impact Report for the project; and 5) all applicable mitigation measures for each phase of development would also be accelerated to coincide with any phased portion of development under construction. The documents and other material that constitute the record on which this determination is made are located in the Community Development Department located at 919 Palm Street, San Luis Obispo, California. The City Council hereby directs staff to file a Notice of Determination with the San Luis Obispo County Clerk Recorder’s Office. SECTION 6. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent ATTACHMENT 4 PH 2 - 137 Ordinance No. _____ (2017 Series) Page 5 jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 7. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED on the ______ day of September, 2017, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the _______ day of October, 2017, on the following vote: AYES: NOES: ABSENT: ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Carrie Gallagher City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. ______________________________ Carrie Gallagher City Clerk ATTACHMENT 4 PH 2 - 138 1 Summary – Zoning Regulations Workshop SUMMARY ZONING REGULATIONS UPDATE WORKSHOP CITY OF SAN LUIS OBISPO June 3, 2017 | 10:00 A.M. – 2:00 P.M. Downtown Library, 995 Palm Street WORKSHOP OVERVIEW AND FORMAT On June 3, 2017, the City of San Luis Obispo Planning Department hosted a public workshop on the comprehensive update to the Zoning Regulations. The purpose of the workshop was to encourage residents and the business community to share their ideas about ways to implement the new Land Use and Circulation Elements through zoning standards and to improve entitlement processes. The workshop was held at the Downtown Library, 995 Palm Street, in the community room. The format was an open house, whereby people could stop by any time between 10:00 A.M. and 2:00 P.M. The schedule also included a special presentation on tiny homes at 11:30 A.M. Approximately 73 community members attended and provided input. City staff members in attendance included Michael Codron, Doug Davidson, Xzandrea Fowler, Rebecca Gershow, Kyle Bell, Kyle Van Leeuwen, Januar Saptono, Shawna Scott, Aaron Peth, Cara Vereschagin, and Jennifer Hooper. Laura Stetson and Jill Eulate from MIG, the consultant for the update program, attended as well. The City hosted the workshop to achieve the following objectives:  Introduce residents, the business community, and property owners to the scope of the Zoning Regulations update  Provide opportunities for participants to comment on land use regulations and development standards they would like addressed and to make suggestions on how their ideas might be implemented  Provide information about potential regulations for recreational cannabis (cultivation, distribution, laboratory testing, manufacturing, and retail sales)  Encourage participants to meet and engage with City Planning staff Attendees were welcomed at the entrance, signed in, and received an open house brochure for guidance and comment cards for recording their ideas. Topic-oriented stations around the room presented information and invited comments on the following issues:  Single-family Neighborhoods: Accessory Dwelling Units (ADUs), tiny homes, and parking  Multifamily Development: Acceptable densities and appropriate transitions between multifamily and single-family housing  Downtown SLO: Bike parking, motor vehicle parking, and residential development BUSINESS ITEM 1 ATTACHMENT 1 BH 1 - 1 2 Summary – Zoning Regulations Workshop  Citywide land use regulations  Cannabis regulations for the future A kids’ corner featuring a large aerial photo of the City invited children to put stickers on their homes, schools, and favorite places around SLO. Lastly, a seasoned staff planner was stationed at the “Ask a Planner” booth, where participants could ask any question of interest and leave comments on a “graffiti wall” about any zoning issue. This summary describes the activity at each topic station and reports the comments received. Several residents attended to share their concerns about implementation of Ordinance No. 1130 and to offer recommendations on how it might be changed to better achieve community intent and objectives. Those comments are provided following summaries of the station-specific comments. STATION ACTIVITIES AND INPUT Single-family Neighborhoods This station covered three topics of interest in single-family neighborhoods: 1) how best to accommodate ADUs, 2) the emerging tiny homes trend, and 3) providing parking for larger units and residents with multiple cars. To provide in-depth information on the topic of tiny homes, guest speaker Teresa Baker from the LATCH Collective, a tiny homes advocacy organization, made a 30-minute presentation at 11:30 A.M. An interactive booth involved using game pieces to figure out where to place an ADU on irregular or constrained lots, reviewing parking standards and responding to prompts, and commenting on images of tiny homes. Only a few people completed the ADU exercise, but many commented on tiny homes (largely in the context of ADUs) and parking. A. Tiny Homes and ADUs  Loved tiny house presentation! Please explore this for SLO!  Loosening regulations on the percentage of lot coverage allowed could help individuals and developers create more ADUs and small/affordable housing.  Why are we so focused on trendy “tiny houses”?!! Focus should be placed on accessory dwellings. Period. Not silly trends—get at the issue of reality. Tiny homes are a fad, rather than this silly trend, desire: small, independent, affordable, increase density  ADU: please put the ability to have ADUs in single-family areas to encourage affordable housing and to provide possible income for elders.  Legalize tiny homes as ADUs, but without all the crazy fees/permits/rules. Dan Fitzpatrick (Fresno tiny house guy) is ready to help SLO make tiny homes legal and affordable.  Legalize tiny homes! It is a noble solution to the outrageous home prices in SLO. It would provide much needed affordable housing to our workforce. Please.  I’m very interested and supportive of implementing tiny houses for low-income people and others. Would like to help in any way possible. Hopefully affordable properties in North County can be purchased for the use. BUSINESS ITEM 1 ATTACHMENT 1 BH 1 - 2 3 Summary – Zoning Regulations Workshop  Oh my gosh! So excited after the tiny home presentation. It would be so great to have that happen here in SLO.  TINY HOMES NOW!  Could tiny homes not be clustered now at the existing defunct Forever 21 locations? That entire area should be reimagined within a secondary transit center and truly affordable. ADU housing allowed as infill development there.  Tiny houses comments. I have a granny unit behind my house that was built in the 1920s. We cannot afford to remodel because we would be required to add parking spaces, new foundation, and other upgrades. Flexibility is needed so older and dilapidated granny units can be replaced with tiny houses. And flexibility is needed on parking. What if occupants don’t have a car? What options can be required in lieu of parking space? By the way, my nephew lives in the granny unit because he can’t afford housing elsewhere.  Tiny homes can be a wonderful way to create affordable housing! Individuals could build their own homes rather than waiting for developers to build units they can afford. As long as the City keeps fees at a low cost, this could create housing we can afford!  Encourage ADUs, especially in downtown and Cal Poly areas. Yes, use tiny homes as ADU. Both downtown and Cal Poly areas will have fewer cars per resident in future.  ADU are fine in side and back yards; I’m comfortable within the driveway too! B. Parking  I would like to see residential parking permit options for new development downtown and the opportunity for residents to have/use; use permits for temporary stay by family and friends.  I would like parking standards to be acceptable and allowable to rent to a flexible number of people based on size of home and bedroom/bath numbers, even with limit on number of parking allowances (e.g., 6 people okay in large home but 4 parking permits).  Alternative transportation!!! With incentives: bike share, more safe routes, car share of developments, more local buses. Multifamily Development Two topics were covered at this station: addressing the interface between multifamily and single-family development and units/acre versus floor area ratio for establishing density/intensity. To help participants understand how density might translate to built conditions, the station included a “Guess the Density” board that showed how developments of similar densities can result in very different built forms. A. Multifamily/Single-family Interface  Find solutions that work – varied choices – safe shelter – and get the zoning permit.  Have walls and hedges complement the existing neighborhood style. For example, if views of rocky pecks are near, blend rock into the wall motif.  Make sure that in these multi-family units there are setbacks, air flow, and that as often as possible, views are preserved. For example, if it is a 3-story development, have the top floor set back so that public views are preserved.  Please transfer as many Community Design Guidelines (CDG) to Zoning Design Standards as possible. There would be discretionary standards open for interpretation, but they must be met to the satisfaction of decision makers. And bring in newer, better design standards that are not in the CDG.  Multi-family 3-story or less near single-family areas. Integrate single and multi-family neighborhoods. Encourage more multi-family. B. Measuring Density BUSINESS ITEM 1 ATTACHMENT 1 BH 1 - 3 4 Summary – Zoning Regulations Workshop  We must increase density in a smart fashion to allow for smaller, cheaper-homes. This is what we hear from potential buyers and employers.  Please allow taller structures, smaller minimum lot size, more zero lot line sites, and less off-street parking.  Allowing greater density allows the market/developers to respond to community need and allows flexibility. This is a good thing.  These are still areas of town that should allow for taller and more density, such as Monterey SF (which is down below the hills above and will not restrict views). Also, area on South Higuera where Caltrans is. We should be considering taller builds from downtown to Madonna Road in the South Higuera redevelopment area (i.e., SL mill/Lumber, the abandoned dam, Blidly along the creek).  Unsubsidized affordable housing units to house workers, disabled, and homeless are needed. Smaller units, lower fees, and common living, bathing, and cooking areas.  Continue to improve the amount of housing for our employees in our community. We can provide more density and go taller. It is a shame that the City will not consider going taller rather than going out.  More units per acre; where do I say emphatically yes! Increase density brings life and people to a place and can encourage smaller/affordable units.  I favor higher density, but am concerned that residents will expect to bring several vehicles and expect a place to park. More convenient and secure bicycles parking and charging stations for electric bicycles and vehicles are needed. Higher-density housing especially needs to be served by convenient and safe bike routes and bike/pedestrian paths to encourage residents to walk and bicycle. Car and bike share also should be encouraged and/or required.  More height and density and smaller units with less parking requirements in the urban community.  60 units /acre dense; build-up! Mixed use (see above re: parking issues with increased density). Downtown SLO Three topics were covered at this station: 1) parking for bicycles, 2) parking for cars, and 3) appropriate locations for new housing. In addition to providing written input, participants were asked to place sticker on a map of Downtown indicating where bicycle and car parking should be located, as well as new housing. On the following aerial photo, yellow dots indicate bicycle parking and green dots car parking. A. Bicycle Parking  Section 17.16.060 “G” Parking – Bicycle and Motorcycle spaces (parking). This regulation needs to be updated to reflect the current LUCE 20% mode share. Need to meet that goal. If there is a vehicle parking required, then bicycle parking is required. If 1 vehicle space, then 1 bike parking. If 5 vehicle spaces, then 2 bike spaces. If 20 car spaces, then 4 bike parking spaces minimum.  Pages 63-69: Table 6 Parking Requirements by Use 6 (all 5 spaces) should be updated to conform with LUCE 20% mode share for bicycles. Each use type should include bicycle parking requirements. Each use type should include employee and visitor parking for bicyclists who work and visit the site. These bicycle parking requirements should be included throughout all of Table 6.  Bicycle parking facilities have to be variable in design. One type of bicycle rack design does not work for the many various bike types. Bike racks should be designed to conform with bicycles with baskets, cargo bicycles, electric bicycles, etc. Bike parking should be secure and safe. Bike racks design in the city should provide for at least 4-5 design types.  I support more bicycle parking downtown: both temporary for customers and visitors to government buildings and long-term for residents and employees. Parking needs to be convenient, secure, and served by bike routes and paths where people of all abilities feel safe. We need parklets with bike parking to BUSINESS ITEM 1 ATTACHMENT 1 BH 1 - 4 5 Summary – Zoning Regulations Workshop encourage people to travel downtown on bikes. I support moving most vehicle parking to garages so there’s more room or bikes and people. Bicyclists want to park their bikes as close as possible to their destination for convenience and to keep an eye on the bike. A wider variety of parking spaces is needed to accommodate a variety of bikes: tandems, adult recycles, recumbents, bikes with trailers and electric bikes. The downtown plan is going in the right direction. Public space is for people, not cars and parking spaces. The exceptions are delivery vehicles and spaces for disabled individuals and chop-off spaces for the elderly and families with young children. More and denser housing downtown is fine to encourage biking, walking, and transit. Reduce requirements for car parking at residential units, but require bike/car sharing and incentives to bike/walk/take transit.  Small sets of bike racks everywhere, 2-3 per block.  Vehicle and bike parking should reflect 20% mode share.  City-owned bike share program (card swipe): try a pilot program.  Put bike parking requirements in Table 6.  Make Table 6 easier to understand!  Make bike parking requirements easier to understand.  More bike parking to replace on-street car parking.  As long as there are parking meters for autos, there should be parking meters for bikes and motorcycles.  A bike parking within a parking structure ground floor near entry kiosk. BUSINESS ITEM 1 ATTACHMENT 1 BH 1 - 5 6 Summary – Zoning Regulations Workshop B. Parking for Cars  No new off-street parking.  It is a fantasy to think that the tourists we invite will bring their own parking places. Provide adequate parking for all.  Need more parking downtown. Should be another parking structure! At Nipomo and Palm.  Downtown parking feels about right!  More electrical car parking! Doesn't have to be free, but should be accessible.  Put elevator in Palm parking structure.  Short-term parking good for disabled parking users.  Build parking subterranean or above retail outskirts of core downtown.  Standards are too lax. Living on the border of downtown, I end up providing on-street parking for businesses.  Extend in-lieu parking district south on Marsh, Higuera, and side streets to Pacific and Monterey all the way.  Parking should be regulated. Some current projects are being approved with an insufficient number of parking spaces. This will have a negative impact on existing neighborhoods. If parking spaces are limited, then those developers should be responsible for class I bike lanes.  Reduce parking requirements for mixed use downtown (and residential).  Build more parking structures with ground-floor commercial uses.  Build more underground parking structures on outskirts of downtown. Walking is then encouraged.  Figure out parking before allowing big hotels. There is no parking downtown any longer. Downtown businesses are disrupted and parking over flow goes into neighborhoods.  Monterey Hotel allowed parking overflow parking  Veterans Hall Andrews: San Luis Drive Neighborhood. Necessary adequate parking; not enough required on site. C. Residential Development in Downtown  More residential and mixed use on South Higuera, North Monterey, and South Broad Streets.  Consider allowing residential uses in underutilized parking lots such as the Madonna road shopping center opposite the world market. Two or three-story apartments building? Is it possible to convert large, empty building in the shopping centers to residential use?  More mixed use residential on South Higuera. D. General Comments about Downtown  Reduce the mid-block crosswalks on Marsh and Higuera or have stop lights there synced to the street stop lights. Most pedestrians are either coming from or to a corner. Cars stopping pollute. BUSINESS ITEM 1 ATTACHMENT 1 BH 1 - 6 7 Summary – Zoning Regulations Workshop  Secure a Class I bike path from Foothill to Los Osos Valley Road and along LOVR. Reduce the property tax of current owners by a small percentage of fund.  No more bulb outs; people like on-street parking.  Good idea, but don’t go too high just to accommodate housing.  Multi-use (commercial with residential); parking allowances and permits for residents that allow any time in streets where only 1 or 2 hour allowed for downtown users; alternative transportation expansion and incentive for downtown residences (e.g., bike pools and parking; van loop; car share with development; free bus passes, etc.).  More separated bike facilities for all bike riders to/from and Downtown.  Keep making sidewalk accessibility improvements.  Enforce bike rules on the road!  Why not experiment? Close Chorro to auto traffic 7:30-8:15 A.M. and 3:15-4:00 P.M. daily. Good for commuter people who want exercise. Land Use Regulations Participants were asked to identify how current land use regulations might be clarified, simplified, and/or better address use trends.  Integrate smaller multi-family into single residence zone.  Simplify and combine “like” uses in the zoning code (i.e., combine office uses).  Strictly limit what can be appealed. If a project meets height, density, setbacks, and parking regulations, then those should not be appealable.  Streamline the approval process: more director and staff level (over the counter) approval for projects that meet zoning requirements.  Limit appeals to architectural design, not zoning issues. Cannabis Regulations for the Future This station allowed participants to ask questions and receive information from City staff about how the City regulate cannabis businesses, with the understanding that cannabis businesses do not have to be permitted at all.  Keep cannabis dispensaries away from our K-12 public and private schools.  Make sure dispensaries have security cameras. This may prevent adults selling to teens.  The City and KSBY should develop PSA announcements on the dangers of marijuana for teens.  Cannabis outdoor growing should not be allowed within City limits unless in a greenhouse where noxious odors can be contained. It should not be the burden of neighbors to have to deal with noxious odors. After all, that’s why commercial establishments that create such odors are kept distant from residential neighborhoods or they are moved.  Personal use growing okay; City does not need to support commercial growers (it’s a big county).  Zone for it; regulate like agricultural growing and commercial retail, and for environmental and public health safety; enforce requirements funded by adequate permit fees. Ask a Planner/Share Other Ideas This station invited participants to engage with a City planner and discuss ideas not addressed in the topic-oriented stations.  Pursue a park for N. Broad Street area.  Please protect the wildlife corridor near Mission/Broad. Reinstate the “S” overlay zone.  Development of new school buildings near residences.  Planners need to enforce ordinances, protect residences. BUSINESS ITEM 1 ATTACHMENT 1 BH 1 - 7 8 Summary – Zoning Regulations Workshop  Protect San Luis Creek from pedestrian incursions and keep nature, nature. No more high-rise hotels, especially on the creek.  Do not build on San Luis Ranch. It is a Class 1 agricultural land. The developer should build his development on the Cal Poly campus as a public/private partnership, and the agricultural land should be a working farm for Cal Poly for eternity. Protect that land for the next generation.  Ideas for affordable housing and homelessness: rooming houses, boarding houses, trailer parks, mobile home parks, co-housing projects, co-op apartments, self-built, condos, cooperative living, homes designed for sharing (not single families), internal villages, on-site residences, and hosts for parks and schools. Build on hills, not agricultural land. Don’t sprawl; allow large cover.  Look at including/affirming/verifying/discussing: 1. Spot zoning shall not be allowed 2. Affordable by design should not receive any, or at least much fewer, bonuses/ waivers/ incentives as affordable units (just adding a studio apartment should not qualify). Codify no roof decks in established neighborhood; currently it’s not allowed by our regulations but is being allowed.  Step up code enforcement for home signs. We are licensed but last count there are only 48 out of 200+ at 13%. The city is losing a lot of easy income by not cracking down on laws. We are paying around $2,000/year. Say 200 @ $5,000 per tax is a million bucks.  You have a very strict home stay code; enforce it! This county has a minor fine at $25,000 to look for violators. Sounds like good deal and will pay for itself.  I live in a mixed neighborhood with apartments, single-family, homes and granny units. I don’t mind density; I mind the number of motor vehicles parking on the street. Way too much space is devoted to parking spaces. We need a transition to bicycling/walking/transit. Reduce the requirements for vehicle parking and increase convenient and secure parking for bicycles, restrict parking on streets, require change stations for electric bicycles and cars, and launch bike and car share. Changes in zoning must be accompanied by carrots and disincentives. Higher-density housing must be implemented in concert with parking restrictions so Downtown. Are employees parking in neighborhoods to avoid paying a fee to use a parking garage? And these employees need incentives to bicycle, walk, or take transit to work. Our neighborhood is also affected by people who park long term because they don’t want to pay a fee at the Amtrak station. We have called the City several times when vehicles have been left by people traveling on Amtrak just to avoid paying a fee.  I do not want through traffic through the San Luis Drive neighborhood: 1) Grand Avenue extending across SLO Creek by Monday Club and 2) road connecting Alta behind the high school into Johnson Avenue neighborhoods. Comments on Ordinance #1130  Just moved to SLO 1 year ago – this event is a wonderful concept – thank you. We have dropped off proposed changes to 1130 – we’re looking forward to future discussions with you on these items. Thank you again.  Concerned that parking needs for Monterey Street hotels and workers will come across the creek bridge and park along San Luis Drive. Concerned that balconies will intrude on our neighbor privacy. Walking paths along the creek will disturb natural flow of creek.  I look forward to a more structured, specific code #1130 rather than the present “fuzzy” one, and a chance to see the new text before a public hearing. Planning Commission should hear all exceptions, not just a single hearing officer.  1) Please read suggestions for Ordinance 1130. 2) No motel/restaurant parking in SLO neighborhood. 3) No rooftop recreation. 4) No creekside pathways.  I would like to have the revised 1130 ordinance considered because changed the initial purpose. Hotel and motel pollution caused by size (mass), sound, and environmental impact on San Luis Creek. BUSINESS ITEM 1 ATTACHMENT 1 BH 1 - 8 9 Summary – Zoning Regulations Workshop  Regarding foot path along the creek: hotel patrons already walk down to the creek, leave trash, and can see into homes (some). Prohibit foot path along the creek for creek and resident protection. Prohibit parking next to the creek. Park close to Monterey Street so horns, exhaust, lights are away from residential areas. Parking for workers prohibited in neighborhood.  Just a reminder that you have an extended comment in writing elsewhere from the San Luis Drive neighborhood concerning Ordinance 1130. It includes a proposed redline of the ordinance to bring the document closer to its original intent. Thank you for giving us this opportunity.  Do not allow the Ordinance 1130 to be altered. San Luis Drive neighborhood is a unique and special place.  Please do not allow a pedestrian pathway along or close to the conservation/open space area of San Luis Creek. Keep it a natural habitat.  Reference: Section 5 of Ordinance #1130. Revise per suggestions submitted by neighborhood homeowners.  Reference – Revise suggestions to Ordinance 1130 San Luis Creek Protection & Prevention. Please note in your considerations regardless of type of construction proposal. Ordinance should be included in zoning regulations.  Reinforce Ordinance 1130; concerned about hotel development.  I have signed and submitted a request for revision of Ordinance 1130. Pertinent to that is the emphasis on San Luis Creek protection. This is a wildlife corridor and a first entrance of the creek to our town. The importance of the health of the creek cannot be overstated. It is imperative that the language be clarified and strengthened to facilitate creek protection and acknowledge the City’s interest in the same. Included is a letter from Dr. John S. Foote, fish and wildlife biologist from the State Wildlife. Included in this is to deny pedestrian footpaths along the creek in this area. With the continuing up in motel/hotel occupancy comes increased risk of creek and creekside degradation. Thank you! BUSINESS ITEM 1 ATTACHMENT 1 BH 1 - 9 10 Summary – Zoning Regulations Workshop ACTIVITY BOARDS Single-family Neighborhoods: ADUs BUSINESS ITEM 1 ATTACHMENT 1 BH 1 - 10 11 Summary – Zoning Regulations Workshop Single-family Neighborhoods: Tiny Homes BUSINESS ITEM 1 ATTACHMENT 1 BH 1 - 11 12 Summary – Zoning Regulations Workshop Single-family Neighborhoods: Parking BUSINESS ITEM 1 ATTACHMENT 1 BH 1 - 12 13 Summary – Zoning Regulations Workshop Multifamily Development: Guess the Density For this activity, flaps covered the indicated densities, and participants raised the flaps to see how their guesses corresponded to the actual densities. BUSINESS ITEM 1 ATTACHMENT 1 BH 1 - 13 14 Summary – Zoning Regulations Workshop Multifamily Development: Appropriate Transitions BUSINESS ITEM 1 ATTACHMENT 1 BH 1 - 14 15 Summary – Zoning Regulations Workshop Multifamily Development: Appropriate Transitions BUSINESS ITEM 1 ATTACHMENT 1 BH 1 - 15 16 Summary – Zoning Regulations Workshop Downtown SLO: Bike Parking BUSINESS ITEM 1 ATTACHMENT 1 BH 1 - 16 17 Summary – Zoning Regulations Workshop Downtown SLO: Motor Vehicle Parking BUSINESS ITEM 1 ATTACHMENT 1 BH 1 - 17 18 Summary – Zoning Regulations Workshop Downtown SLO: Locations for Housing and Parking Citywide Land Use Regulations This station presented Table 9 in the Zoning Regulations and asked participants to recommend revisions to modernize and/or simplify the land use regulations. BUSINESS ITEM 1 ATTACHMENT 1 BH 1 - 18 19 Summary – Zoning Regulations Workshop Cannabis Regulations for the Future BUSINESS ITEM 1 ATTACHMENT 1 BH 1 - 19 20 Summary – Zoning Regulations Workshop Cannabis Regulations for the Future BUSINESS ITEM 1 ATTACHMENT 1 BH 1 - 20 21 Summary – Zoning Regulations Workshop Cannabis Regulations for the Future BUSINESS ITEM 1 ATTACHMENT 1 BH 1 - 21 1 | Page White Paper: Housing Trends July 18, 2017 Introduction The City of San Luis Obispo, home to just over 45,000 residents and a large university community, is experiencing a housing crunch, with housing supply unable to meet increasing demand for both traditional and non-traditional housing choices. The City is interested in investigating new types of well- designed and affordable options for housing downtown—and in the neighborhoods—that can accommodate evolving lifestyle choices and respond to increasing housing costs. This white paper explores different types of non-traditional housing found in other cities, including tiny homes, accessory dwelling units, and microunits. The paper highlights key issues that should be considered concurrently, such as parking requirements and neighborhood compatibility for new units. The paper also provides examples of policies adopted by other municipalities to encourage appropriate development of emerging types of housing. Implications of these emerging housing types as they apply to the City’s zoning regulations are presented at the end of this paper. Accessory Dwelling Units Accessory dwelling units (ADUs, and also referred to as secondary dwelling units or granny flats) offer flexibility to primary residences to build a second smaller unit on a lot zoned for single-family residential use. Most often, ADUs are constructed to house an aging family member or in-home health care provider, or to be rented for supplemental income. These structures are considered a key method of adding housing within a single-family neighborhood without compromising the neighborhood’s look and feel. The California Department of Housing and Community Development notes that ADUs are an innovative and effective option for increasing the housing supply in California. The mainstream use of ADUs offers the opportunity to greatly increase housing supply. For WHAT IS AN ADU? According to the State Department of Housing and Community Development, an ADU is a secondary dwelling unit with complete independent living facilities for one or more persons, generally in one of these forms:  Detached: The unit is separated from the primary structure.  Attached: The unit is attached to (or included within) the primary structure.  Repurposed Space: Space within the primary residence (e.g., master bedroom) is converted into an independent living unit.  Junior Accessory Dwelling Unit: Similar to repurposed space, but with streamlined review procedures and generally without additional parking. BUSINESS ITEM 1 ATTACHMENT 2 BH 1 - 22 2 | Page example, if 10 percent of San Luis Obispo’s 19,193 households1 built an ADU, the result would be over 1,900 new housing units. The City recently adopted a comprehensive Accessory Dwelling Unit ordinance (codified in Section 17.21.010 of the Municipal Code) to address recent changes in State law. (The new ordinance replaced the former Secondary Dwelling Unit ordinance.) As described in the conclusion of this paper, these recent regulatory changes could provide the basis for further changes designed to encourage the development of new housing options for residents. Figure 1: Examples of Accessory Dwelling Units in the backyard (left) and on top of a garage (right) California Regulation Two California bills (AB2299 and SB1069) that took effect in January 2017 were crafted to remove barriers to construction of ADUs. Most significantly, the laws allow jurisdictions to eliminate off-street parking requirements and prohibit agencies from mandating separate utility hookup fees for ADUs. A third new law, AB2406, authorizes local government to permit junior accessory dwelling units (JADUs). Specific local regulations vary based on the building code and zoning adopted by municipalities. Research has found, however, that cities that work to reduce the building, zoning, and financial requirements often find an uptick in ADU production. After putting in place zoning reforms, pre- approved designs, and a low-interest loan program, the City of Santa Cruz saw ADU production triple.2 Neighborhood Compatibility One frequent concern of building more accessory dwelling units is that their prevalence may compromise the character of a single-family neighborhood. Although ADUs are often placed behind primary dwellings, sometimes they may be visible from the public street. Other cities have addressed this concern by directing the architectural design and materials to be substantially the same as the primary residence (which is what San Luis Obispo requires). 1 U.S. Census Bureau, 2010 Census 2 Wegmann, Jake, and Alison Nemirow. 2011. “Secondary Units and Urban Infill: A Literature Review” BUSINESS ITEM 1 ATTACHMENT 2 BH 1 - 23 3 | Page Parking Requirements Some people worry that increasing the number of residents in a neighborhood without creating new parking will reduce the availability of on-street parking for current residents. Limited research findings are available regarding the effects of ADU construction on parking, but studies show that not all ADU residents have cars and that not all associated cars are parked on the street (particularly if local regulations require a parking space for the ADU). A study of ADUs in the east San Francisco Bay Area found that 22% of ADUs had no associated cars, and of those that did, 70% were parked on the street.3 AB2299 reduces parking requirements for ADUs and prohibits parking requirements if the ADU is4:  Within one-half mile from public transit  Within an architecturally and historically significant historic district  Part of an existing primary residence or an existing accessory structure  In an area where on-street parking permits are required, but not offered to the occupant of the ADU  Located within one block of a car share area Tiny Homes Tiny homes are a growing movement for people who want to live minimally, decrease financial costs, and decrease their energy consumption. Although becoming ubiquitous in name, the form and function of tiny houses varies. Given this wide variety of housing configurations, tiny homes may constitute more of a social movement rather than a unique housing type. Yet the cultural, economic, and social factors driving the movement suggest that cities should seriously consider whether and how to modify their zoning codes in response. Figure 2: Examples of a tiny home on a foundation (left) and a tiny home on wheels (right) (Sources: UNC School of Government; City Observatory) Tiny homes can range in size anywhere from 80 to 400 square feet, and some are built on a chasse (an axle with wheels), while others are placed on a foundation. For municipalities, tiny homes also vary in 3 Wegmann, Jake, and Karen Chapple. 2012. “Understanding the Market for Secondary Units in the East Bay” 4 California Department of Housing and Community Development. 2016. “Accessory Dwelling Unit Memorandum” BUSINESS ITEM 1 ATTACHMENT 2 BH 1 - 24 4 | Page allowed placement, as some are regulated as accessory dwelling units and sited behind primary residents, while others may be considered recreational vehicles (RVs) and placed as part of a larger grouping or tiny home village. For San Luis Obispo, providing specific regulations for tiny homes might incentivize this type of housing that has increasing appeal to students, young professionals, and retirees. Figure 3: Tiny Home Village called Boneyard Studios in Washington, D.C. (Source: Shinytinymansion.com) One way that tiny homes can be used to as a strategy to expand the housing supply is by zoning specific districts to spur tiny home developments. The city of Rockledge, Florida has achieved this by permitting tiny homes but only within two zoning districts. The first is redevelopment mixed use (RMU) zones, where it is hoped tiny homes will be a catalyst for economic development while also creating more walkable communities. Tiny home development may also occur within Planned Unit Development districts (PUD), which create pocket neighborhoods designed exclusively for tiny houses. Each PUD must have a minimum of four tiny homes and a maximum of 12 tiny homes, plus a centralized common area. The pocket neighborhood community must be part of a condominium or homeowners’ association to maintain the common areas. A full copy of the Rockledge tiny home regulations can be found at http://americantinyhouseassociation.org/model-zoning-for-tiny-houses-from-rockledge-fl/. The Rockledge zoning regulations permit both types of tiny homes: those built on foundations and tiny houses on wheels (THOW). These include conditions for the THOWs, such as requiring porches, designed to encourage occupants to establish roots in the community. Currently, the City of San Luis Obispo Zoning Regulations would not allow THOWs since under California law they are classified as recreational vehicles. These are not allowed as dwelling units on private property outside of legally operated mobile home parks, travel trailer parks, campgrounds of safe parking facility. BUSINESS ITEM 1 ATTACHMENT 2 BH 1 - 25 5 | Page The City of Portland, Oregon recently moved 16 tiny homes onto an inner-city lot to establish that city’s first homeless village for women. The housing is transitional, with the goal of helping residents move to permanent housing.5 If the City of San Luis Obispo wishes to explore allowing tiny homes as either ADUs or in tiny home developments, the preferred approach may to focus exclusively on tiny homes built on foundations, as they may be seen as more compatible with the character of the local community and more critically, tiny homes on wheels are regulated by the State as motor vehicles (see following discussion). At the June 3, 2017 community workshop kicking off the Zoning Regulations update, information provided about tiny homes generated enthusiastic response from many participants. Figure 3: Kenton Women’s Village in Portland, Oregon (photo from Los Angeles Times) California Regulation Currently, California has no statutory requirements aimed specifically at the construction or regulation of tiny homes. If the tiny home falls within the definition of an ADU, State and local regulations apply. An informational bulletin from the State Department of Housing and Community Development highlights that to be occupied, a tiny home must comply with the standards of either a manufactured home (as defined and regulations by federal Housing and Urban Development codes), a California 5 Los Angeles Times. July 11, 2017. “In tiny houses, a big experiment.” BUSINESS ITEM 1 ATTACHMENT 2 BH 1 - 26 6 | Page Residential Code or California Building Code home, factory-built housing, a recreational vehicle, a park trailer, or a camping cabin.6 Tiny homes on foundations are often classified as ADUs and must follow applicable local residential building and zoning codes, such as maximum ADU size per lot size and setback requirements. In contrast, tiny houses that are on wheels are classified as RVs, and many local jurisdictions do not allow permanent occupancy of RVs, except in areas zoned for mobile home use. Municipal-level regulation varies greatly across the State. In Sonoma County, for example, tiny houses on wheels are allowed as “caregiver dwellings” when the tiny home or primary residence is housing a friend or relative providing care for the other occupant.7 The City of Fresno recently adopted a more lenient policy that allows tiny homes on wheels (called “backyard cottages”) to be parked as a permanent secondary unit, without any restriction of the occupant. With regard to property taxes and tiny homes, if such a home is permanently placed on a property, it would be considered a property improvement and thus affect the assessed value of the property. How a tiny home on wheels might be taxed is more difficult to discern, as it may be considered a mobile home and thus subject to licensing through the Department of Motor Vehicles. Neighborhood Compatibility Like ADUs, a primary concern of tiny home development is compatibility in existing neighborhoods. The City of Fresno’s policy for ADUs and tiny homes notes that if the tiny home is visible from the street or a park, then the “architectural design, roofing material, exterior materials and colors, roof pitch and style, type of windows, and trim detail” should be nearly the same and visually compatible with the main residence. Parking Requirements Similar to other alternative housing being built in neighborhoods, existing neighbors are concerned of tiny homes’ impact on on-street parking availability. If the tiny home is considered an ADU, then similar regulations apply and parking requirements are prohibited under specified conditions, including placement of the tiny home within one-half mile of public transit. 6 American Tiny House Association. 2016. “State of California Issues Information Bulletin on Tiny Homes.” 7 Tiny House Community. 2015. “Caregiver caravans legal in Sonoma and other northern CA countie.s” BUSINESS ITEM 1 ATTACHMENT 2 BH 1 - 27 7 | Page Microunits Microunits, or “efficiency dwelling units,” are small apartments, often 200 and 300 square feet in size, that include a bedroom area, bathroom, and cooking facilities within a small space. Microunit apartment developments are being constructed in cities such as San Francisco, New York, and Seattle such developments appeal to young professionals who want to be close to urban amenities and do not require much living space. (Seattle has coined the term “a-pod-ments” for microunits.) With a comparatively smaller footprint for each apartment unit, microunits developments can house a greater number of people per square foot. Opponents argue that microunits are marketed as luxury housing and do not provide an affordable housing choice; microunits in cities often rent at comparatively high rates per square foot to other larger studios. California Regulation Statewide, there are no regulations on microunits, and minimum required living space (the main constraint on developers building microunit apartments) are adopted locally. In 2012, for example, the City of San Francisco approved an ordinance to decrease unit sizes to allow units as small as 220 square feet, including the bathroom and closet space. Other cities are looking at prefabricated micro-units to house low-income and homeless individuals. The City of Berkeley, for example, is exploring the feasibility of stacked 160-square-foot prefabricated microunits available to seniors, disabled, and low-income residents. Neighborhood Compatibility Figure 5: Some developers use modular construction for building microunits (Source: Urban Land Magazine) Figure 4: Microunit apartments in San Francisco and New York City (Sources: New York Times; International Making Cities Livable) BUSINESS ITEM 1 ATTACHMENT 2 BH 1 - 28 8 | Page The main concern of compatibility for microunit apartments is the height and size of the building in the surrounding landscape. Microunit developments are often built downtown in areas of higher heights and densities, reducing this concern. Parking Requirements Building parking in urban areas and suburban downtowns is costly, and an apprehension for developers building microunits is minimum parking requirements. Developers claim that most microunit residents will not have a car but will use other transportation options, aided by the fact they are located near transit hubs. The reduction of parking spaces, however, can lead to microunit residents parking cars on nearby neighborhood streets. Cohousing Cohousing is an intentional community of homes or apartments that includes shared spaces. In a traditional cohousing community, each family or individual has its own house or apartment that includes amenities and a kitchen. Cohousing also includes shared spaces, such as a kitchen, dining room, and recreation areas that are used for communal meals and activities. These communities can be built in urban, suburban, or rural contexts. Figure 6: An affordable cohousing community in Sebastopol; Swan Market cohousing in Oakland (Sources: www.ic.org; co-housingsolutions) In recent years, developers have started to build cohousing projects for baby boomers and seniors, creating spaces for aging adults who want to downsize and live in a supportive environment with peers. Senior cohousing can provide an alternative to assisted living, where residents can offer each other valuable services such as shared meals, companionship, and rides to the doctor offices. One of the concerns of cohousing communities is that the price of the market-rates homes is often unaffordable to many. A few non-profit developers are building affordable cohousing communities, making this type of living attainable to more people. Petaluma Avenue Homes, for example, is an affordable cohousing community that has 45 apartments and townhomes for low-income families and BUSINESS ITEM 1 ATTACHMENT 2 BH 1 - 29 9 | Page seniors. The Swan Market cohousing community, with 20 units on 0.3 acres of land, is nestled alongside affordable rental apartments and retail and restaurants (see Figure 6). Cohousing examples have sparked similar housing models that bring together individuals with unique needs and the desire to build intentional community. In the Netherlands, the Humanitas retirement home provides college students with rent-free housing in exchange for 30 hours a week helping retirement home residents. In a different example, the website CoAbode connects single mothers who want to live together and share tasks such as childcare, cooking, and grocery shopping. With rising rents and housing prices, unique housing arrangements offer the opportunity to decrease housing costs and have peoples’ needs met through community sharing. California Regulation California law has no regulations specific to cohousing. As developers build cohousing, they must abide by local land use, zoning, and entitlement process consistent with their building plans. Once cohousing is built, the community is often legally structured as a homeowner association (HOA), condominium association, or housing cooperative. Absence of Density Limits and Reduced Parking San Luis Obispo, like most jurisdictions in California, regulates housing development based on whether it is classified as “single-family” housing or “multifamily” housing, together with the densities that may be achieved in terms of the maximum number of “dwelling units” (individual residences) per acre of land. Single-family means a stand-alone, detached residence on one legal parcel. Multifamily means more than one residence in a building, such as a duplex, condominium, or apartment. The terminology is somewhat problematic when referring to townhomes, as they may be attached to each other (side to side) but each individually owned townhome occupies a separate legal parcel. The types of housing and density limits imposed by a general plan and zoning code generally are intended to preserve the character of established neighborhoods and ensure that new development integrates well into a neighborhood. For multifamily housing, typically the concerns are the size, orientation, and setbacks of new development, as well properly addressing privacy concerns adjacent to single-family neighborhoods and limiting the amount of traffic generated. The City’s Zoning Regulations have a very complex system of determining the maximum allowed density. Density is calculated based on the average slope of a property and the number of bedrooms in a dwelling unit. See Section 17.16.010 of the Zoning Regulations (included as Appendix A). If a developer is looking to develop, for example, in the R-3 zone, the density cap of 18 units per acre established in Chapter 17.28 would be further modified (likely reduced) by the provisions in Section 17.16.010, which, for example, count three-bedroom dwellings as 1.50 units and four-bedroom dwellings as 2.00 units. Demographic trends indicate that many young adults prefer smaller living spaces and do not own cars, two considerations that are not well addressed by the City’s current density standards and parking requirements. These preferences are reflected in the market responses described above to produce BUSINESS ITEM 1 ATTACHMENT 2 BH 1 - 30 10 | Page microunits—which in San Luis Obispo may not be possible to construct given the multifamily density limits in residential and mixed-use zones—and the evolving trend toward providing fewer parking spaces per unit. A common approach many cities in California use to address both compatibility concerns and trends toward smaller units is to forego density limits and instead regulate residential development based solely on building height, setbacks, step backs, lot coverage, placement of parking, etc. This “form” based approach focuses on the physical relationship of new development to its neighbors. With no density limit, a greater number of residential units may be accommodated in the same building form which the City’ Zoning Regulations currently dictate. Units can be smaller and the total amount of parking required may be less if parking is based on the number of bedrooms in a unit, as it is in San Luis Obispo. Parking trends in cities well served by transit and/or with walkable urban districts have moved to require fewer parking spaces per residential unit. Some cities have established maximum rather than minimum parking standards to encourage reduced auto dependence. Property managers of multifamily housing have also seen the opportunity to base rental/lease rates on whether a tenant needs a car parking space. These approaches, where used, often need to be balanced with other parking controls to ensure that reduced off-street parking does not impact on-street parking supply. Considerations for the Updated Zoning Regulations The City clearly recognizes local housing needs. The recently adopted ADU ordinance states its intent to “expand housing opportunities by increasing the number of smaller units available within existing neighborhoods.” The ordinance does this by establishing minimum size requirements that accommodate the construction of tiny homes, defined as a dwelling unit that is 400 square feet or smaller in floor area, excluding lofts. The ADU defines the minimum based on the size of an efficiency unit as stated by the California Health and Safety Code, which has a minimum of 150 square feet per unit, well within the range of the 400-square-foot tiny home maximum. Although the ADU ordinance effectively resolves the minimum size hurdle, its potential to expand the housing supply is limited by the provision that the owner of the property must occupy either the primary residence or the ADU. As the City investigates options for addressing housing needs in the community, these considerations may guide the discussion:  Further modifications to the ADU regulations may be warranted to make it easier to build ADUs on challenged lots. This could consist of eliminating the owner occupancy requirement, reducing setbacks, eliminating landscaping requirements, and/or allowing units in side or front yards, among other relaxed standards.  Density limits could be eliminated for Downtown to allow smaller units within the established building forms defined as appropriate for Downtown. Similar consideration may be given to the R-2, R-3, and R-4 zones. BUSINESS ITEM 1 ATTACHMENT 2 BH 1 - 31 11 | Page  Determine whether micro units are a viable and desired housing option.  Tiny homes may present a housing option not just as ADUs but within small-lot subdivisions or as temporary/transitional housing.  Density requirements could be adjusted so that units with three or more bedrooms do not effectively reduce the overall unit yield. This could result in more units within developments.  Parking requirements for Downtown residential uses can be modified to incentivize development of housing affordable to a broader range of income levels. Modifications could include reduced parking per unit, allowance for off-site parking that is leased separately from the unit (so-called unbundled parking), and broader-based sharing arrangements with commercial and office uses.  Specific zoning regulations could be crafted to encourage or better accommodate co-housing. The investigation of non-traditional housing choices offers the opportunity to concurrently respond to a housing shortage and increasing housing costs, and to accommodate evolving housing needs and desires. BUSINESS ITEM 1 ATTACHMENT 2 BH 1 - 32 12 | Page Sources American Tiny House Association. 2016. “State of California Issues Information Bulletin on Tiny Homes” http://americantinyhouseassociation.org/state-of-california-issues-information-bulletin-on-tiny- homes/ California Department of Housing and Community Development. 2016. “Accessory Dwelling Unit Memorandum” http://www.hcd.ca.gov/policy-research/docs/17Jan30-ADU-TA-Memo.pdf Keyser, Rachel. 2017. “A Government’s Guide to Tiny House Regulation” http://www.viewpointcloud.com/blog/local-government-resources/governments-guide-tiny- house-regulation/ Nonko, Emily. 2016. “Tiny House Zoning Regulations: What You Need to Know.” https://www.curbed.com/2016/9/22/13002832/tiny-house-zoning-laws-regulations Tiny House Community. 2015. “Caregiver caravans legal in Sonoma and other northern CA counties” http://www.tinyhousecommunity.com/map/caregiver-caravans-legal-in-sonoma-and-other- northern-ca-counties/ U.S. Census Bureau. “General Population and Housing Characteristics: 2010” 2010 Census https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF Vail, Katherine M., 2016. “Saving the American Dream: The Legalization of the Tiny House Movement.” http://louisvillelawreview.org/sites/louisvillelawreview.org/files/pdfs/printcontent/54/2/7- Vail%20text.pdf Wegmann, Jake, and Alison Nemirow. 2011. “Secondary Units and Urban Infill: A Literature Review”. Berkeley Institute of Urban and Regional Development Working Paper. University of California. http://iurd.berkeley.edu/publications/wp/2011-02.pdf Wegmann, Jake, and Karen Chapple. 2012. “Understanding the Market for Secondary Units in the East Bay” http://escholarship.org/uc/item/9932417c.pdf. BUSINESS ITEM 1 ATTACHMENT 2 BH 1 - 33 13 | Page Consultants to the City MIG, Inc. 537 S. Raymond Avenue, Pasadena, CA 91105 (626) 744-9872 www.migcom.com Jacobson & Wack 9530 Hageman Road, Suite B205, Bakersfield, CA 93312 (661) 213-4100 Mintier Harnish 1415 20th Street, Sacramento, CA 95811 (916) 446-0522 www.mintierharnish.com BUSINESS ITEM 1 ATTACHMENT 2 BH 1 - 34 14 | Page APPENDIX A: CALCULATING DENSITY From Municipal Code Title 17 – Zoning Regulations 17.16.010 Density. A. Determination of Allowed Development. 1. "Density" is the number of dwellings per net acre, measured in density units. In the AG, C/OS, and R-1 zones, each single-family dwelling counts as one density unit. In the other zones, different size dwellings have density unit values as follows: a. Studio apartment, 0.50 unit; b. One-bedroom dwelling, 0.66 unit; c. Two-bedroom dwelling, 1.00 unit; d. Three-bedroom dwelling, 1.50 units; e. Dwelling with four or more bedrooms, 2.00 units. 2. The following procedure shall be used to determine the maximum development allowed on a given lot or land area: a. Determine the Average Cross-slope of the Site. "Average cross-slope" is the ratio, expressed as a percentage of the difference in elevation to the horizontal distance between two points on the perimeter of the area for which slope is being determined. The line along which the slope is measured shall run essentially perpendicular to the contours. i. Where a site does not slope uniformly, average cross-slope is to be determined by proportional weighting of the cross-slopes of uniformly sloping sub-areas, as determined by the Community Development Director. ii. Cross-slope determinations shall be based on the existing topography of the net site area after subtracting the area for any future on-site grading necessary to accommodate proposed right-of-way improvements and other on-site improvements. iii. Cross-slope shall be calculated only for the net area as defined in Sub-section A2b below. iv. When the calculation of cross slope results in a fractional number, it shall be rounded to the next highest whole number if the fraction is one-half or more; otherwise it shall be rounded down to the next lowest whole number. v. No slope-rated density reduction is required in the C/OS, C-R, C-C or PF zones. vi. The maximum development allowed for each average cross-slope category is as follows: BUSINESS ITEM 1 ATTACHMENT 2 BH 1 - 35 15 | Page Table 1: Maximum Residential Density for Cross-Slope Categories *R-2 zone, see section d.1. below By approving an administrative use permit, the Director may grant exceptions to the reduction of density with slope where the parcel in question is essentially enclosed on all sides by development at least as dense and within the same cross-slope category as the proposed development. The exception shall not authorize density greater than that allowed for the category of less than 15% slope for the appropriate zone. (See also Section 17.12.020D, Nonconforming Lots - Regulations.) b. Determine the Net Area of the Site. "Net area" is all the area within the property lines of the development site, excluding the following: 1. Street right-of-way dedicated and proposed to be dedicated to the City; 2. Area between the tops of banks of creeks shown on the Open Space Element “Creeks Map”; 3. Habitat occupied by species listed as “endangered” or “threatened” by the U.S. Fish and Wildlife Service or the California Department of Fish and Game, or as “plants of highest priority” by the California Native Plant Society, unless the Community Development Director determines there is no “practical alternative” as defined by the General Plan; 4. Area within the drip line of “heritage trees” designated by the City. c. Multiply the resulting area (in whole and fractional acres) by the maximum density allowed (in density units per acre) according to Table 1 of this section. (Ord. 1365 (2000 Series)(part)) d. The resulting number (in density units, carried out to the nearest one-hundredth unit) will be the maximum residential development potential. Any combination of dwelling types and numbers may be developed, so long as their combined density unit values do not exceed the maximum potential. 1. For a single-family residence (single unit on one lot) located in the Medium-Density Residential Zone (R-2), density unit values may be rounded up to the nearest half (.5) density unit (example: 1.37=1.5). Condominiums and common interest subdivisions shall conform to standard R-2 density requirements where maximum density is calculated by rounding to the nearest one-hundredth unit. BUSINESS ITEM 1 ATTACHMENT 2 BH 1 - 36 16 | Page B. Density Transfer. 1. Development potential may be transferred within the area covered by a planned development (PD) zone, in conformance with the requirements of Chapter 17.50. 2. Where a portion of a lot is within a zone or zones that allow residential use and the rest of the lot is in a C/OS zone, and the portion within the C/OS zone is not large enough to allow one dwelling, the fractional dwelling unit potential from the C/OS zone may be transferred to the other portion of the lot, without planned development rezoning. C. Density Averaging. Where portions of a lot are within two or more different zones that allow different maximum densities, and any portion is not of the size required for a lot in that zone, density may be averaged over the whole lot, with each portion contributing to the overall maximum development potential in proportion to its area and maximum allowed density. D. Density Bonus for Low-income and Moderate-income Housing. Pursuant to California Government Code Section 65915, the City may negotiate a density bonus or other benefits in exchange for provision of housing affordable to households with low or moderate income, as defined in the Government Code, and as stipulated in Chapter 17.90 of these regulations. (Ord. 1085 - 1 Ex. A (part), 1987; Ord. 1006 - 1 (part), 1984; Ord. 941 - 1 (part), 1982: prior code - 9202.5(B)) E. Exceptions for Dwellings Rebuilt After Involuntarily Destroyed. Residences in R-1, R-2, R-3, R-4, O, C-N, C-C, C-R, C-T, C-D and C/OS zones, which have been involuntarily damaged or destroyed by fire, other catastrophic event, or the public enemy by more than 50% of their pre-damaged value, may be rebuilt at the same density and up to the same size, under the following circumstances: 1. All construction must conform to current building codes, zoning regulations, and architectural guidelines, except that the previously existing number of dwelling units and size of buildings will be allowed. 2. A building permit for the replacement structure(s) must be obtained within three years of the date of the damage or destruction. 3. Notwithstanding the above provisions, application for replacement structures of the same density and size may be denied if the Community Development Director makes one of the following findings: a. The reconstruction, restoration, or rebuilding will be detrimental or injurious to the health, safety, or general welfare of persons living or working in the neighborhood. b. The reconstruction, restoration, or rebuilding will be detrimental or injurious to property and improvements in the neighborhood. c. The existing nonconforming use of the building or structure would be more appropriately moved to a zone in which the use is permitted. d. There no longer exists a zone in which the existing nonconforming use is permitted. BUSINESS ITEM 1 ATTACHMENT 2 BH 1 - 37