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HomeMy WebLinkAbout09-19-2017 Item 15 - Public Hearing/Ordinance Introduction - Avila Ranch Development EIR/SPA/Zoning/Tract Map/Development Agreement Meeting Date: 9/19/2017 FROM: Michael Codron, Community Development Director Derek Johnson, Assistant City Manager Prepared By: John Rickenbach, Contract Planner Tyler Corey, Principal Planner Lee Johnson, Economic Development Manager SUBJECT: PUBLIC HEARING TO CONSIDER THE AVILA RANCH PROJECT, INCLUDING 1) RELATED ENTITLEMENTS; 2) THE CERTIFICATION OF THE FINAL ENVIRONMENTAL IMPACT REPORT (EIR); AND 3) RESOLUTION OF INTENTION TO FORM A COMMUNITY FACILITIES DISTRICT (CFD). PROJECT ENTITLEMENTS INCLUDE: 1) GENERAL PLAN AMENDMENT, 2) SPECIFIC PLAN AMENDMENT, 3) REZONE, 4) DEVELOPMENT PLAN, 5) VESTING TENTATIVE TRACT MAP, AND 6) DEVELOPMENT AGREEMENT. DEVELOPMENT PLAN FOR THE SITE INCLUDES UP TO 720 RESIDENTIAL UNITS; 15,000 SQUARE FEET OF NEIGHBORHOOD COMMERCIAL DEVELOPMENT; AND APPROXIMATELY 18 ACRES OF PARKS, WITH 53 ACRES OF THE SITE TO REMAIN IN OPEN SPACE. RECOMMENDATION As recommended by the Planning Commission, adopt the attached resolutions and introduce ordinances (Attachments A, B, C and D), taking the following actions to approve the Avila Ranch Project and initiate the formation of a Community Facilities District (CFD): 1. Adopt a Resolution certifying the Final EIR for, and approval of, the Avila Ranch Development Plan, Airport Area Specific Plan Amendment, General Plan Amendment, and Vesting Tentative Tract Map; and 2. Introduce an Ordinance changing the zoning of the property from Business Park/Specific Plan (BP-SP) and Conservation/Open Space/Specific Plan (C/OS-SP) to be consistent with the Avila Ranch Development Plan and with the General Plan and Airport Area Specific Plan as amended; and 3. Introduce an Ordinance to adopt a Development Agreement between the City of San Luis Obispo and Avila Ranch, LLC that implements the above entitlements; and 4. Adopt a Resolution of Intention to establish a Community Facilities District (CFD) to finance facilities and services necessary to implement the above entitlements and to levy a special tax for that purpose against parcels located in the Avila Ranch Development Plan. 
 REPORT-IN-BRIEF The Avila Ranch Project is proposed by Avila Ranch, LLC, to enable the development of 720 residential units and 15,000 square feet of neighborhood commercial uses on a 150-acre site Packet Pg 179 15 north of Buckley Road within the boundaries of the Airport Area Specific Plan (“AASP”). The project would also include 18 acres of parks and 53 acres of designated open space within the project boundaries. 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, Airport Area Specific Plan (AASP), and the City’s Community Design Guidelines. 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 AASP as amended. The project is required to provide 71 Inclusionary housing units that will be met through a combination of construction (67 units), dedicated land (1.2 acres for 24 low income units) and payment of in-lieu fees (4 units). In addition, 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 (32 provided; 23 required), larger affordable housing site (1.2 acres provided; 1 acre required), local preference (none required), owner occupancy restrictions (none required), workforce housing incentive program (25 units provided; none required) and down payment assistance ($500,000 provided; none required). There are six major project components, the key elements of which are described in the Planning Commission staff report of June 28 & 29, 2017. The Development Agreement is described in further detail later in this staff report. The independent analysis of the Development Agreement concluded that the City is receiving approximately $31,000,000 more in extraordinary public benefits related to the proposed agreement than could otherwise be conditioned upon or required of the Developer. The staff reports for the Planning Commission hearings are at the following links: 1. June 28 & 29, 2017 Staff Report: http://opengov.slocity.org/WebLink/1/doc/65871/Page1.aspx 2. August 9, 2017 Staff Report: http://opengov.slocity.org/WebLink/1/doc/67120/Page1.aspx a. General Plan Amendment b. Airport Area Specific Plan (AASP) Amendment c. Rezone d. Development Plan e. Vesting Tentative Tract Map f. Development Agreement Table 1 summarizes the development parameters of the project. Table 1. Summary of Proposed Development and Residential Product Types Land Use Acres % of Total Acres Units or SF Residential 55.30 36.9% 720 units R-1 Low Density (7 du/acre) 12.80 8.5% 101 R-2 Medium Density (12 du/acre) 27.30 18.2% 297 R-3 Medium-High Density (20 du/acre) 10.80 7.2% 197 Packet Pg 180 15 R-4 High Density (24 du/acre) 4.40 2.9% 125 Neighborhood Commercial 1.86 1.2% 15,000 SF Roadways 21.71 14.5% Open Space and Parks 71.04 47.4% Open Space 53.00 35.4% Parks 18.00 12.0% Total 149.91 100.0% 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; and hardcopies are available in the City Clerk’s office and the Community Development Department. The project has been considered before various City advisory bodies. On June 19, 2017, the Architectural Review Commission unanimously recommended approval of the project Design Guidelines to the City Council. On August 9, 2017, the Planning Commission recommended that the City Council certify the Final EIR and approve all project entitlements, including the General Plan Amendment, Specific Plan Amendment, Rezone, Avila Ranch Development Plan, Vesting Tentative Tract Map, and Development Agreement. Because the Development Agreement was considered as a separate item from the other entitlements on August 9th, its recommended approval was based on a separate Resolution and proposed Ordinance (Attachment 4 of Public Hearing Item 2 of the August 9th Planning Commission meeting). The Planning Commission’s recommendation included project modifications discussed and considered in their public hearings of June 28, June 29 and July 12. Key input gained from the Planning Commission and other advisory bodies at past hearings is included as Attachment E to this staff report. As part of its Resolution, the Planning Commission recommended additional modifications to the Development Plan and/or Tentative Map, which are included in the City Council Resolution (Attachment A). The City Council’s role is to review and consider approval of the Avila Ranch project and related entitlements, including a Development Agreement, based on project-related input received from the Planning Commission, other City advisory bodies, and the Airport Land Use Commission. As a necessary step related to possible project approval, the City Council must certify the Final EIR for the project, and adopt the CEQA Findings, including a Statement of Overriding Considerations for impacts determined to be Significant and Unavoidable (“Class 1 impacts”). The Council is also asked to adopt a Resolution of Intention to form a Community Facilities District (CFD), which initiates the formation of a CFD. The City Council will need to hold four subsequent hearings to complete the establishment of a CFD, which will provide needed funding for municipal services and local area maintenance and provide a source of funding for reimbursing the Developer for their investments in region-serving infrastructure beyond the “fair-share” cost allocation. Packet Pg 181 15 DISCUSSION Background 1. Project Description Summary The project is the development of a major new City neighborhood. The project includes a mix of residential and neighborhood commercial uses, with 18 acres of parks, while preserving approximately 53 acres as open space on a 150-acre property, as described in the Avila Ranch Development Plan. The project is designed to be consistent with the development parameters described in the City’s 2014 Land Use Element. Overall development will occur in six phases, the timing of which will be guided largely by market factors. Detailed phasing information is included on pages 34 -36 and 80-81 of the Development Plan, which is available for review online at the following location: https://tinyurl.com/ydx3d52r; and a hardcopy is available in the City Clerk’s office and Community Development Department. Figure 1 shows the location of proposed project phasing in the context of the Development Plan, while Table 2 summarizes the key proposed circulation and infrastructure improvements associated with each phase: Figure 1. Proposed Project Phasing Packet Pg 182 15 Table 2. Proposed Development and Infrastructure Phasing Phase Proposed Development Proposed Circulation and Infrastructure 1 1. 179 R-2 units 2. 2.9 acres of parks 1. Buckley Road frontage improvements in phase boundary 2. Venture Road extension on phase frontage 3. Extension of Earthwood to Suburban (with Class II bike lane) 4. Roundabout at Venture and Earthwood 5. Signal and turn improvements to Suburban and Higuera 6. Turn restrictions at the Vachell Lane/S. Higuera Street intersection, prohibiting left turns into and out of Vachell Lane 7. Westbound approach to the S. Higuera Street/Suburban Road intersection would be restriped to provide a left-turn lane and a shared left/right turn lane. 8. Class I bike path from Vachell to Octagon Barn (if possible) 9. Class I bike path from Class II diversion on Buckley to Vachell 10. Class II bike lane bridge on south side of Buckley at Tank Farm Creek 11. Ped/bike improvements to Earthwood between Venture and Suburban 12. Ped/bike improvements to Suburban between Venture and Earthwood 13. Transit stop on Venture 14. Sewer pump station and force main 15. Potable and recycled water facilities 16. Dry utilities to development phase 2 1. 29 R-2 units 2. 1.3 acres of parks 1. Buckley Road extension from Vachell Lane to South-Higuera Street 2. Left turns to and from Higuera and Vachell will be restricted 3. Class I and II bike facilities on Buckley to HIguera 4. Class I bike lane from Earthwood to Venture 5. Wet and dry utilities to development phase 3 1. 89 R-2 units 2. 125 R-4 units 3. 0.8-acre mini park 1. Completion of Horizon Lane (but not the offsite extension to Suburban) 2. R-4 to include 1-acre dedication to affordable housing provider for 30 inclusionary housing units Packet Pg 183 15 Table 2. Proposed Development and Infrastructure Phasing Phase Proposed Development Proposed Circulation and Infrastructure 3. Wet and dry utilities to development phase 4 1. 197 R-3 units 2. 9.5-acre neighborhood park 3. 0.9-acre mini park 1. Completion of Jesperson to Buckley Road 2. Horizon Lane north of Venture to Suburban 3. Vehicle/Pedestrian bridge from Venture to Jesperson 4. Ped/bike improvements on Suburban between Horizon and Earthwood 5. Class I bike path along Tank Farm Creek 6. Wet and dry utilities to development phase 5 1. 101 R-1 units 2. 2.6 acres of parks 1. Wet and dry utilities to development phase 2. Portion of the open space/buffer in this phase 6 1. Town Center Commercial 1. Wet and dry utilities to development phase 2. Remaining project frontages The Airport Area Specific Plan (AASP) as amended will be used as the basis for financing major infrastructure associated with the project. Please refer to Section 9 of this staff report for additional details. 2. Planning Commission Review and Recommendation The Planning Commission has previously considered the project on nine occasions, once to conduct a public scoping meeting for the EIR, twice to review a preliminary version of the Development Plan, twice during the Draft EIR public review period, and four times to consider the project now before the City Council. On August 9, 2017, the Planning Commission recommended that the City Council certify the Final EIR and approve all project entitlements, included the Vesting Tentative Tract Map as conditioned. As part of its Resolution, the Planning Commission recommended additional modifications to the Development Plan and/or Vesting Tentative Tract Map, which have since been addressed either as project conditions or in the Development Agreement. In addition to those items first discussed in their hearings of June 28 & 29, the Planning Commission set forth two additional recommendations as follows, which are discussed further in Section 8 of this staff report: • Affordable Housing Site. Staff to work with the applicant on the size of the proposed affordable housing site. • CFD Tax as It Relates to Affordable Housing Site. Staff to work to minimize the potential for a CFD tax to be imposed on development within the identified affordable housing site. Packet Pg 184 15 As a separate item on that night’s agenda, the Planning Commission also recommended approval of the Development Agreement through a separate Resolution and Ordinance. 3. Previous Advisory Body Review The project has been considered before various City advisory bodies that have carefully reviewed and commented on specific aspects of the project that relate to their purview. On November 19, 2015, the Bicycle Advisory Committee (BAC) reviewed the updated bicycle planning aspects of the Development Plan and conceptually concurred with the Development Plan as presented. On January 4, 2017, the Parks and Recreation Commission (PRC) reviewed the proposed parks and recreation components of the Development Plan and determined that the proposed park proposal, included related facilities, would be consistent with applicable General Plan policies. On June 19, 2017, the Architectural Review Commission unanimously recommended approval of the project Design Guidelines to the City Council. Finally, the Airport Land Use Commission (ALUC) has reviewed the project. On December 21, 2016, the ALUC determined that the project was consistent with the Airport Land Use Plan (ALUP), with conditions related to limiting the development to 720 dwelling units, non- residential density to 93 persons in the S-1b safety zone, FAA review of tall structures that may be considered, appropriate noise mitigation, restrictions on uses that may interfere with airport operations, avigation easements, and appropriate disclosures for future residents. Attachment E provides a summary of the different advisory bodies that have considered the project, when these reviews occurred, as well as the purpose and outcome of these meetings. Environmental Impact Report (EIR) Conclusions Consistent with City Council direction, a Draft EIR was prepared for the project, and distributed for public review from November 23, 2016, to January 18, 2017. The Planning Commission held two public hearings to solicit input on the Draft EIR, on December 14, 2016, and January 11, 2017. Portions of the Draft EIR related to the project’s energy impacts were recirculated for 45 days, from February 21 through April 7, 2017. Several mitigation measures in the Draft EIR were revised in response to comments, in order to clarify or improve their effectiveness. The Final EIR concludes that the project will result in significant and unavoidable impacts to: • 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 designated 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 Packet Pg 185 15 227. The EIR also finds that there will be significant impacts that can be mitigated to less than significant in the categories of aesthetics and visual resources, agricultural resources, air quality and greenhouse gas emissions, biological resources, cultural resources, hazards and hazardous materials, hydrology and water quality, noise, public services, transportation and traffic, and utilities and service systems. Impacts related to population and housing were found to be less than significant or beneficial. Some impacts related to aesthetics, air quality, cultural resources, hazards, hydrology, land use and planning, noise, public services, transportation, utilities, were also found to be less than significant. Table ES-1 at the beginning of the Final EIR summarizes the project’s impacts and mitigation measures. The Final EIR is included in its entirety as a digital attachment to this staff report, available at the following website: https://tinyurl.com/yae2byxp; and a hardcopy is available for review in the City Clerk’s office and the Community Development Department. The Final EIR must be certified before or concurrent with an action to approve the proposed project entitlements. 1. CEQA Findings and Statement of Overriding Considerations The Planning Commission determined 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. Based on this, the Planning Commission recommended that the City Council certify th e Final EIR, and adopt the attached CEQA Findings that support the proposed project, including a Statement of Overriding Considerations to address the identified significant and unavoidable impacts described in the Final EIR. These are included as an exhibit attached to the Resolution approving the bulk of the project entitlements (Attachment A). General Plan Guidance and Policy Consistency The project is based on policy direction 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. For clarity, the entire policy is included within the summary of the relevant General Plan policies as Attachment F (FEIR Policy Consistency Analysis). In its Resolution of August 9, 2017, the Planning Commission found that the Avila Ranch project was consistent with the City’s General Plan and related policies and standards. Development Plan/Vesting Tentative Tract Map The project includes a Development Plan/Vesting Tentative Tract Map, which addresses future residential development within the Development Plan area. These documents are available for Packet Pg 186 15 review online at the following location: https://tinyurl.com/ydx3d52r; and hardcopies are available for review at the City Clerk’s office and the Community Development Department. The map includes details that go well beyond those included in the Plan area, including information on lot locations, roadways, drainage, grading, and other information typically associated with Tentative Maps. The Tentative Map governs development within the areas it covers. It is consistent with the Development Plan and Specific Plan as amended, implementing its policies, zoning standards, and Design Guidelines. The Map also includes details regarding proposed roadways and circulation improvements. Conditions of Approval for the Tentative Map are included in the attached Resolution (Attachment A). These conditions cover issues ranging from fire safety; transportation infrastructure requirements; dedications and easements; utilities; grading, drainage, storm water, and other infrastructure requirements; air quality; avigation easements; affordable housing; and natural resource protection. These are separate from, and in addition to, the mitigation measures and monitoring program that are included in the Final EIR. Staff’s review of the Tentative Map concludes that, as conditioned, it is consistent with the Development Plan and Specific Plan as amended, both in terms of development potential and design. The basic development parameters allowed under the Map are described above, and previously in more detail in the June 28 & 29 Planning Commission staff report for the project. Parks The project would include 18 acres of designated parkland, which exceeds the estimated parkland requirement per the General Plan of 16.5 acres (assuming 1 acre per 1,000 population). Proposed facilities include a centrally located 9.5-acre neighborhood park, as well as mini-parks, pocket parks and community gardens. Designated Park area does not include passive open space and recreational trails, which are counted as part of the designated Open Space. This 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, pickleball 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 landscaping. These 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. Consistent with recent Planning Commission direction, the project will also include an additional pocket park in the vicinity of Lots 130, 131 and 132, and will be included in the Vesting Tentative Tract Map. Packet Pg 187 15 Affordable and Workforce Housing Affordable and workforce housing (below market-rate) is an important component of the area’s workforce and other market rate housing. Accordingly, the City’s Municipal Code (Chapter 17.91) and General Plan Housing Element (Goal 2, Appendix N: Table 2 and Table 2A) include Inclusionary housing requirements for new developments. Further, the City’s Municipal Code (Chapter 17.90) and General Plan Housing Element (Section 3.30 ) provide incentives for affordable housing construction. The Avila Ranch Development Plan proposes 700 residential units per the City’s Land Use and Circulation Element (LUCE) policies, as well as potentially 20 additional units that might be obtained through state density bonus law. There is no actual density bonus application on file with the City, but the added units were included for infrastructure planning and impact analysis purposes. A total of 720 units are thus being proposed, with the City’s Inclusionary residential housing requirements being met within the first 700 units. The provision of affordable housing to meet the Inclusionary housing requirement allows the applicant to request a density bonus through the City’s Affordable Housing Incentive Ordinance, which is consistent with State law. The actual number of density bonus units may vary, but based on the applicant’s profile of inclusionary units, this assumption seems to reasonably cover the additional units. The 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. In addition, 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 Exhibit 1-G to Attachment C of the staff report. 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 (67), dedicated land (1.2 acres) and payment of in-lieu fees (4 units) • 32 low income units provided where 23 are required by Ordinance • Majority of units provided in phases 1-3 • Dedicated 1.2 acre site for a 24 unit low income 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 Packet Pg 188 15 As part of its August 9, 2017, Resolution recommending project approval to the City Council, the Planning Commission included the following recommendations related to affordable housing: • Affordable Housing Site. Staff to work with the applicant on the size of the proposed affordable housing site. • CFD Tax as It Relates to Affordable Housing Site. Staff to work to minimize the potential for a CFD tax to be imposed on development within the identified affordable housing site. Subsequent to the Planning Commission recommendation of August 9, the affordable and workforce housing plan was modified to include a larger site (increased from 1 acre to 1.2 acres) for the affordable housing project, which is shown in an exhibit within Attachment C, Exhibit 1- G. Relative to the CFD taxation issue, staff recommends a that a reduced special tax on affordable units, 50% of the lowest tax rate on market rate residential units be levied. This is discussed in further detail in Section 12 (Community Facilities District) below. Project Financing for Major Infrastructure The Avila Ranch 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 (Attachment C, Exhibit 1-C. 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. • Municipal services include both “Citywide” services and also local area maintenance services provided 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. 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. • 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. • The key source of infrastructure funding will be “developer equity;” it is estimated that the developer will invest an estimated $57 million directly in project-related infrastructure, including paying the City’s development impact fees, which will be updated as part of the Packet Pg 189 15 City’s development impact fee update. • Some of the developer’s investment in City or region-serving infrastructure will be subject to reimbursement 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 prior to its actual need. The City will fund these reimbursement payments primarily from its development impact fees (Citywide and Airport Area fees) levied on other new development over time and also a portion of the proposed CFD special taxes levied with Avila Ranch. • The developer’s funding commitments are documented in the Tentative Subdivision Map and also the Development Agreement. Development Agreement 1. Background and Overview The City Council authorized City staff to begin a process for the City to enter into a Development Agreement with the project applicant. A Development Agreement is a legal tool that allows public agencies to bargain for public improvements beyond what would either be required through a typical planning process or the CEQA process to address identified impacts related to a project. A Development Agreement typically includes the payment of fees needed to help implement such improvements. In exchange, a project applicant is provided assurances related to future development, often with respect to timing. A Development Agreement cannot be implemented unless the necessary underlying planning entitlements are first approved, in this case, a Specific Plan Amendment, General Plan Amendment, Rezone, Development Plan, and Vesting Tentative Tract Map. 2. Project Approach and Development Agreement Concept For this project, a draft Development Agreement was prepared, which was reviewed by the Planning Commission and recommended for approval to the City Council. This Development Agreement represents the negotiated agreement between the applicant and the City on important areas related to the phased and orderly development of the property. The Development Agreement works in parallel to other entitlements, and in the case of Avila Ranch, the proposed conditions of approval require its approval with a detailed infrastructure financing plan before certain portions of the entitlement can take effect. The Development Agreement would not change the development parameters included in the Development Plan, but would fine-tune their implementation, building on the Conditions of Approval associated with the Vesting Tentative Tract Map. 3. Legal Basis for the Development Agreement A Development Agreement is a contract between a developer and a city in which the city provides the developer with vested development rights, beyond those generally applicable, for a Packet Pg 190 15 defined period of years in exchange for the developer providing “extraordinary” public or “community” benefits that exceed what would otherwise be permissible for the City to condition upon a project by law, i.e. the land use regulation “police powers” reserved to local government by the California Constitution. Development Agreements are a unique planning tool authorized by statute pursuant to Government Code section 65864 – 65869.5. A Development Agreement is an agreement between the City and a property owner in which the parties agree to “freeze” all rules, regulations, and policies that are in place as of the execution of the agreement (Gov. Code Section 65866; Santa Margarita Area Residents Together v San Luis Obispo County Bd. of Supervisors (2000) 84 CA4th 221). The Development Agreement structure, because it is a voluntary negotiation process between a developer and city, may also allow a city to negotiate developer concessions or contributions that it could not otherwise require from a developer through normal exactions or conditions of approval. In some circumstances, Development Agreements can provide both greater flexibility and greater certainty in the development of large or complex projects. However, it should be noted that Development Agreements are legislative acts and subject to referendum, so the flexibility afforded by the tool is limited by community values. The Development Agreement for this project is included as Attachment C, Exhibit 1 to this staff report. The Development Agreement between Avila Ranch and the City covers the general terms , 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. 4. Major Deal Points Major items or “deal points” that are covered in the Development Agreement are summarized below (the relevant section, exhibit or attachment is included for reference): a. Term: The length or term of the agreement is 20 years with a possible 10-year extension. (1.03, page 4) b. 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 fund 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) c. Fees: Normally, 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 Packet Pg 191 15 Developer has agreed to pay the new AB1600 fees once the update is completed. (5.04.2 b and c, page 13) d. 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) e. Sustainability: The agreement documents requirements that exceed both existing and anticipated regulatory requirements related to sustainability. (7.07, page 23 and 7.08, page 24) f. 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 effect ive date or the development agreement is void. (7.02.1.b, page 22) g. 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 proposes a twenty-year timeframe for the developer 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). h. Infrastructure: The agreement lists the sources of reimbursement for improvements beyond the project’s “fair share”, as well documenting the project’s “fair share” of the required $67,102,134 (based on current estimates) in infrastructure. The Developer will build $9,487,540 (based on current estimates) of infrastructure beyond its fair share. (Attachment G, Avila Ranch Feasibility Memorandum) i. Affordable and Workforce housing: The project is required to provide 71 Inclusionary housing units that will be met through a combination of construction (67 units), dedicated land (1.2 acres for 24 low income units) and payment of in-lieu fees (4 units). In addition, 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 (32 provided; 23 required), larger affordable housing site (1.2 acres provided; 1 acre required), local preference (none required), owner occupancy restrictions (none required), workforce housing incentive program (25 units provided; none required) and down payment assistance ($500,000 provided; none required). These are contractual requirements that exceed the City’s regulatory requirements for Inclusionary housing. (Attachment C, Exhibit 1-G) j. 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 $31,000,000 more in extraordinary public benefits than the Developer is Packet Pg 192 15 receiving in benefits related to the proposed Development Agreement. (Attachment G, Avila Ranch Feasibility Memorandum) Community Facilities District (CFD) As part of the 2017-2019 Financial Plan, the City Council included new financial policies that establish a framework for land based financing. For the Avila Ranch project, it is anticipated that a Communities Facilities District (CFD) will be needed for both services and infrastructure. A key requirement of the conditions of approval is that the applicant forego any protest rights regarding the formation of a CFD. One of the pillar policies1 of the City’s General Plan is that new development should pay its own way, unless the City chooses to pay certain costs of development to obtain community wide benefits. City Staff worked with the applicant to prepare a detailed fiscal impact analysis of the proposed project. In summary, based on current costs, the analysis shows that the project at full build out will generate about $850,600 per year in general fund revenues and $1.3 million per year in municipal service costs. The annual average cost revenue deficit is $494,887. The numbers are based on the current tax sharing agreement with the County and could be impacted based on a positive outcome of the ongoing negotiations with the County. CFDs can also be used to fund any gap in infrastructure financing and can be used as either a source of reimbursement or to fund costs in excess of any fair share requirements. General Plan and Specific Plan Policies, development standards, mitigation measures and conditions of approval in combination require a significant amount of both in tract and offsite infrastructure to facilitate the orderly development of this area. A preliminary analysis concludes that the development project has the capacity to generate approximately $1.7 million of CFD revenue for both services and infrastructure per year. The proposed action for the CFD is to approve a Resolution of Intention (Attachment D) which essentially begins the process to establish two CFDs for the property. The 1st CFD will be in perpetuity and will fund services and the 2nd CFD will be a potential source of funding to provide reimbursement for the outlay of capital for infrastructure that exceeds the fair share requirement and is eligible for reimbursement pursuant to the terms of the Development Agreement. The second CFD will be terminated upon satisfaction of the infrastructure reimbursements As a part of broader actions on the Avila Ranch entitlement documents referenced in this staff report, the Council is being asked to initiate formation of a Community Facilities District (CFD). Initiation of the CFD occurs through adoption of a Resolution of Intention, the first step in formation of the CFD pursuant to the Community Facilities District Act of 1982 (Attachment D). The City of San Luis Obispo has not, before the Avila Ranch Project proposed CFD, created any CFDs. However, 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. 1 1.13.9. Costs of Growth: The City shall require the costs of public facilities and services needed for new development be bor ne by the new development, unless the community chooses to help pay the costs for a certain development to obtain community-wide benefits. The City shall consider a range of options for financing measures so that new development pays its fair share of costs of new se rvices and facilities which are required to serve the project and which are reasonably related to the new growth attributable to the development. Packet Pg 193 15 1. Background The owners and developers of the Avila Ranch property have requested and the City has agreed to consider formation of a Community Facilities District (CFD), subject to Council action on the Avila Ranch entitlement documents. Such a CFD, 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 funding 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. The Avila Ranch CFD, as proposed, will be used to fund Citywide services necessary to support the new development, maintenance of local area public facilities, and reimbursement to the Developer for funding advances or construction of key infrastructure items over and above the Project’s demonstrated “fair share” of such infrastructure costs. 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). 2. Analysis and Recommendations Funding Capacity. The funding capacity of a CFD is based upon the type and amount of development in the boundary of the CFD upon which the special tax is levied and the amount of the tax per parcel. Special taxes levied as part of a CFD must be clearly specified by 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 any inflationary cost increases. Generally, and as reflected in the City’s adopted policy, CFD special taxes are limited to a fraction of the 1 percent property tax allowed under Article 13 A of the State Const itution. 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 at full buildout of the project. Given market conditions and maximum equivalent HOA rates in the community of $200 per month, as well as market considerations, and the significant amount of smaller and multifamily units, the aggregate tax burden on residential units may limit capacity to an amount below this maximum. This analysis results in a funding capacity at $1.7 million per year at full buildout of the project. Purpose of the Special Tax. The Rate and Method of Apportionment (RMA) specifies the special tax to be levied as part of the Avila Ranch Community Facilities District (CFD). In this case, the special tax will fund local area maintenance costs; provide for fiscal mitigation (City and County) and serve as a source of reimbursement funding if needed. Administrative costs are also included. Detailed analysis of public service costs, including the need for fiscal mitigation and local area facilities maintenance has been conducted as part of ongoing staff work and Packet Pg 194 15 negotiations with the Avila Ranch Developer. The funding components that have resulted from this analysis include: a. Citywide Services: $230,000 b. Local Area Maintenance: $1.2 million c. County Services: $88,000 d. Capital reimbursement: (TBD) e. CFD Administration: $20,000 Components of the Special Tax. Because there are different reasons for including each of the two components, there are different instructions in the RMA related to each. The first component is for local area maintenance services. It will be needed indefinitely and can be adjusted if a new property tax sharing agreement with the County is achieved that provides a greater share of property tax to the City. The second component is for reimbursement of capital outlay by the Developer in excess of fair share costs. The tax will only be levied until reimbursements are paid back, at which point, the tax will terminate. The City could consider forming two CFDs for the two components: one limited to services and fiscal mitigation and one limited to reimbursing the Developer's funding advances; however, staff recommends that a single CFD address all objectives for administrative efficiency. Special Tax Rate Structure. Special property taxes are “parcel” taxes (a given rate per parcel). Varying taxes by use or intensity requires a logical structure, often linked to service demand. Current special tax calculations determined an "average" special tax for all units in Avila Ranch of $2,400 per year. There are 4 residential prototypes: R-1 (7 DU/ac); R-2 (12 DU/ac; R-3 townhomes (20 DU/ac); and R-4, stacked flats (24 DU/ac). A "flat tax" rate could be set for all residential uses based on the special tax revenue calculations; alternatively, a rate sensitive to unit type (zoning designation or single family/multifamily) and size can be established, based on a variable that is linked to service demand. Special taxes can be charged on commercial uses to pay their proportional share of service costs. There is a small amount (15,000 square feet) of commercial space planned for the Avila Ranch neighborhood. Given its limited scale of the commercial uses, staff recommends that such uses be exempted from the special tax, unless a change of use is subsequently approved with an exemption for the commercial uses, but charge a vacant land tax until parcel is developed. Staff recommends that a tax rate that varies by single family and multifamily use and size be implemented. Special Tax on Vacant Land. Special taxes can be levied on land that is designated for development, but not yet developed. Such taxes are charged to generate cash flow to cover interim service costs or debt service before the developing area subject to the special tax is fully developed. The combined cost of services funded by the CFD may exceed the available tax revenues during the "buildout" period when there will be a growing number of tax producing parcels. A tax on vacant land (paid by the then-current owner of the vacant developable land) can be levied to cover such costs. Analysis shows that significant maintenance cost will not emerge until the related facilities are in place and service demands emerge. Thus, staff recommends that a vacant land tax be levied at the time the Final Subdivision Map is approved and respective subdivision parcels are recorded. Packet Pg 195 15 Special Tax Rate Structure, Prioritization. The RMA will need to specify funding priorities for special tax revenue. There are three components currently identified as specified below: 1) "fiscal mitigation" for the lack of property tax from the area (bot h City and some County); 2) special funding for ongoing local area maintenance and eventual local facilities replacement; and 3) funding for reimbursement of Developer funding advances (e.g., the capital component). The priority for funding recommended is as follows: 1) funding for reimbursement of Developer funding advances; 2) special funding for local area maintenance; and 3) "fiscal mitigation" for the City. Exemption for Affordable Housing Units. Property owned by non-profit entities or with price restrictions in the deed are not categorically exempted from special taxes. The key policy exemption to be considered is an exemption on affordable housing owned by non-profit entities. There are 67 affordable units proposed to be constructed, 9% of total units (32 for low income at 80% of median income, and 35 for moderate at 120% of median income). Taxing affordable housing units will increase operating costs and thus may decrease feasibility for the non -profit entities or the subsidies that they can offer lower income households. Options include: 1) an exemption for the non-profit owned or deed restricted units; or 2) establishing a discounted special tax reflecting benefits to the City of providing affordable housing units. Staff recommends that a reduced special tax on affordable units, 50% of the lowest tax rate on market rate residential units be levied. This approach is widely used throughout the state and is considered an equitable distribution of one time and ongoing costs. Other Exemptions. Certain types of property ownership are categorically exempt from special taxes), while others may be exempted for policy reasons by the RMA. Little or no cost is expected from these parcels. Exemptions include government owned property; property-owners’ association property (common areas); assessor’s parcels consisting of public or utility easements; and property having conservation-oriented deed restrictions. It is recommended that these non- developed parcels be exempted from the special tax. Indexing for Cost Increases Over Time. Special taxes are typically “indexed,” increased over time to reflect inflationary cost increases as permitted by the statute. Without a “cost inflator” special taxes will diminish in value proportional to the rate of inflation on the costs of providing municipal services. There are various “cost indices” that track price inflation including the CPI, the CCI and the ENR construction cost index. The publication American County and City also publishes a municipal cost index that tracks regional increases in municipal service costs. Staff recommends that the City apply a composite of these indices as the escalator of special taxes used for City services from year-to-year. The special tax component for infrastructure purposes is limited by the Statute to two percent per year, which may result in a limitation of cost recovery relative to actual inflation and other cost increases Property Tax Contingency. A portion of the proposed Avila Ranch special tax is for "fiscal mitigation" linked to the existing property tax agreement that yields no property tax to the City. In the event that agreement can be renegotiated to provide some portion of the property tax to the City, the "fiscal mitigation" portion of the special tax could be reduced. The RMA could, but is not required to, include a clause that provides for a reduction in the overall special tax proportional to any property tax revenue received by the City. Staff recommends a provision be Packet Pg 196 15 included to reduce the special taxes proportional to any property tax received as a result of a new Property Tax Sharing Agreement with the County. Duration of the Special Tax. The RMA must specify the duration of the special tax. Special taxes that provide a source of debt service on CFD municipal bonds (or other capital expenditure) sunset when debt is retired. Staff recommends an “indefinite” duration for the services portion of the special tax, and that the reimbursement component will be retired when reimbursement is completed. Special Tax Accounts and Allocation. The special tax requirement has been calculated based on three separate cost components: 1) "fiscal mitigation" for the lack of property tax from the area (both City and some County); 2) special funding for local area maintenance and also ev entual local facilities replacement; and 3) funding for reimbursement of Developer funding advances (e.g., the capital component). 3. Formation Process The CFD formation should be initiated by the City Council by adoption of the Resolution of Intention for the Avila Ranch CFD at the time the Avila Ranch Entitlement Documents are considered for adoption by the City Council, or soon afterward. The Resolution of Intention initiates a statutory formation process that includes the following steps: a. Adopt Resolution of Intention b. Prepare legal map of CFD Boundary and conduct voter determination (this has been completed) c. Approve Rate and Method of Apportionment d. Adopt Resolution of Formation (ROF) e. Conduct election (or obtain landowner approval) f. Adopt Ordinance to Levy Special Tax These steps have been scheduled to occur before the end of 2017, assuming adoption of the Avila Ranch Resolution of Intention. Next Steps If the City Council certifies the EIR, and approves the Development Plan and related entitlements, including the Development Agreement, these are the next steps in the process: • Adopt the Ordinance to change the zoning of the property to be consistent with the Avila Ranch Development Plan and with the General Plan and Airport Area Specific Plan, as amended. • Adopt the Ordinance approving the Development Agreement. • Community Facilities District Formation. In a subsequent hearing, the City Council will consider adopting a Resolution to establish a Community Facilities District (CFD), which will be necessary to implement development under the Development Plan and Specific Plan, as amended. Packet Pg 197 15 • AB 1600 Fee Program Update. After a joint Planning Commission/City Council study session, the City Council will consider an update of the AB 1600 fee program, which will be necessary to implement development under the Development Plan and Specific Plan, as amended. • Project Development. Once fee structures are in place, the City’s approved project entitlements will become effective, including Development Agreement provisions. Project development could then commence, pursuant to required regulatory resource agency permitting. CONCURRENCES The City’s review of the Avila Ranch Development Plan project has involved all City departments in the development review process. Conditions of approval or mitigation measures will be implemented to ensure that the project is carried out in a manner that is consistent with City standards. In addition, the Airport Land Use Commission has determined that the project is consistent with the Airport Land Use Plan. FISCAL IMPACT When the Land Use and Circulation Elements of the General Plan were updated in 2014, they were accompanied by a fiscal analysis that identified the overall fiscal impact that buildout of the General Plan would have on the city’s ability to continue to provide the high level of service expected by the community. This fiscal impact analysis of the City’s land use plan is an essential aspect of land use planning in California, where property tax growth is statutorily limited. As a result, communities have to be careful to balance land uses between commercial activities that produce net revenues to support City operations, and residential uses that cost more to support than they produce in direct revenues. Smaller scale, individual projects generally are not accompanied by project-specific fiscal analyses. In the case of Avila Ranch, a detailed fiscal analysis has been prepared for a few key reasons: 1. The size of the project warrants a project-specific look. 2. The phasing of the project could result in short term fiscal impacts that would limit the ability of the City to maintain or deliver public facilities in the earlier phases of the project. This may result in the need for a Community Facilities District to support project maintenance or infrastructure costs. 3. Negotiations with the developer regarding the Development Agreement rely on a detailed understanding of the specific fiscal effects of the project. 4. Discussions with the County regarding the tax exchange agreement are al so informed by a more detailed understanding of the tax revenue and costs that will be generated by the project. The fiscal impact analysis for the Avila Ranch project was prepared by Applied Development Economics. This is the same firm that prepared the fiscal and economic analysis for the General Plan update. In summary, the analysis shows that the project at full buildout will generate about Packet Pg 198 15 $850,600 per year in general fund revenues and $1.3 million per year in municipal service costs. The average annual cost revenue deficit is $494,887 This analysis also includes Local Revenue Measure revenues for sales tax. The numbers are based on the current cost estimates and tax sharing agreement with the County and can be positively impacted based on the outcome of the ongoing negotiations with the County. The CFD is structured to ensure that the City that at a minimum the City’s cost are offset by contributions from the CFD. ALTERNATIVES 1. Continue consideration of the project entitlements. The City Council may continue its review of the Avila Ranch project to a date certain if additional time or information is needed to make a decision. If additional information is needed, direction should be provided to staff so that it can be presented on that date. 2. Direct changes to the project proposal. The City Council may direct staff and the applicant to make specific changes to the project. Direction on changes should be specific and within the scope of the environmental document prepared for the project. For example, the Council could direct the applicant to reduce the number of units proposed for the project because a smaller project is evaluated in the Final EIR. However, direction to increase the number of residential units would require additional environmental review causing substantial delay to the entitlement process. 3. Deny the project. The City Council may deny the project, based on findings that the project is not consistent with the General Plan, or that the project benefits do not outweigh its negative effects. This action is not recommended because the project appears to be consistent with the General Plan, and the Final EIR for the project has identified mitigation measures that will reduce most project-related impacts to less than significant levels. Proposed Findings of Overriding Considerations recommended by the Planning Commission illustrate how the benefits of the project outweigh its negative effects. Attachments: a - Entitlement Resolution b - Map Ordinance c - DA Ordinance d - Resolution of Intention for CFD e - Advisory Body review and responses f - FEIR Policy Consistency g - Avila Ranch Feasibility Memorandum Packet Pg 199 15 RESOLUTION NO. ______ (2017 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, CERTIFYING THE FINAL EIR FOR, AND APPROVAL OF, THE AVILA RANCH DEVELOPMENT PLAN, AIRPORT AREA SPECIFIC PLAN AMENDMENT, GENERAL PLAN AMENDMENT, AND VESTING TENTATIVE TRACT MAP NO. 3089, FOR PROPERTY LOCATED AT 175 VENTURE DRIVE (GENP 1319-2015; SPEC/ER-1318-2015; SBDV 2042 2015; OTHR-0455-2017 A.K.A. “AVILA RANCH”) 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; and WHEREAS 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, the City Council of the City of San Luis Obispo conducted a public hearing on September 19, 2017 in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, for the purpose of considering GENP 1319-2015; SPEC/ER 1318-2015; SBDV 2042- 2015; OTHR-0455-2017, which includes entitlements consistent with the Planning Commission recommendation of August 9, 2017, including a Development Plan that would allow up to 720 residential units, 15,000 square feet of commercial development, 18 acres of parks, and 53 acres of open space on a 150-acre site, with a Vesting Tentative Tract Map that would implement said development; and WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and WHEREAS, the City Council has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff, presented at said hearing. NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis Obispo as follows: SECTION 1. CEQA Findings, Mitigation Measures and Mitigation Monitoring Program. Based upon all the evidence, the City Council hereby certifies the Final Environmental Impact Report (EIR), adopts a Mitigation Monitoring and Reporting Program, and adopts the Packet Pg 200 15 Resolution No. _____ (2017 Series) Page 2 following CEQA Findings and Mitigation Measures in support of all entitlements related to the Avila Ranch Project: 1. The Avila Ranch Development Project 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 2. The proposed project is consistent with the requirements of the Avila Ranch Development Plan Final Environmental Impact Report (FEIR) 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 greenbelt Planning Area, Packet Pg 201 15 Resolution No. _____ (2017 Series) Page 3 R ______ 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. 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; Packet Pg 202 15 Resolution No. _____ (2017 Series) Page 4 R ______ • 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. 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; Packet Pg 203 15 Resolution No. _____ (2017 Series) Page 5 R ______ • 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. 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 improvem ents 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). AQ-2b. Consistent with standard mitigation measures set forth by the APCD, Projects generat ing 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. Packet Pg 204 15 Resolution No. _____ (2017 Series) Page 6 R ______ 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 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 Packet Pg 205 15 Resolution No. _____ (2017 Series) Page 7 R ______ 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 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 Packet Pg 206 15 Resolution No. _____ (2017 Series) Page 8 R ______ 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 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 quarterl y 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: 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). Packet Pg 207 15 Resolution No. _____ (2017 Series) Page 9 R ______ 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. 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 Packet Pg 208 15 Resolution No. _____ (2017 Series) Page 10 R ______ 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. 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. 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. • 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. Packet Pg 209 15 Resolution No. _____ (2017 Series) Page 11 R ______ • 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. 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.] Packet Pg 210 15 Resolution No. _____ (2017 Series) Page 12 R ______ 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 h ooded 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). • 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. Packet Pg 211 15 Resolution No. _____ (2017 Series) Page 13 R ______ 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 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 (CBC), local codes that augment the 2010 CBC, and applicable California Department of Transportation seismic design standards. Packet Pg 212 15 Resolution No. _____ (2017 Series) Page 14 R ______ 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: • 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 Packet Pg 213 15 Resolution No. _____ (2017 Series) Page 15 R ______ 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 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). Hydrology and Water Quality Mitigation 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 developme nt 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 Packet Pg 214 15 Resolution No. _____ (2017 Series) Page 16 R ______ 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: • 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. Packet Pg 215 15 Resolution No. _____ (2017 Series) Page 17 R ______ • 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 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 Packet Pg 216 15 Resolution No. _____ (2017 Series) Page 18 R ______ 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 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, Packet Pg 217 15 Resolution No. _____ (2017 Series) Page 19 R ______ 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. • 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 Packet Pg 218 15 Resolution No. _____ (2017 Series) Page 20 R ______ 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. PS-2. Fair Share Contribution. The Applicant shall agree to pay a fair sh are contribution to a future citywide or area-wide fire protection service 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; Packet Pg 219 15 Resolution No. _____ (2017 Series) Page 21 R ______ • 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. • 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. Packet Pg 220 15 Resolution No. _____ (2017 Series) Page 22 R ______ 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 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 compl eted 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. 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 Packet Pg 221 15 Resolution No. _____ (2017 Series) Page 23 R ______ 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. 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. Packet Pg 222 15 Resolution No. _____ (2017 Series) Page 24 R ______ 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 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. 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 o r 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 Packet Pg 223 15 Resolution No. _____ (2017 Series) Page 25 R ______ 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. Section 2. Specific Plan Amendment, General Plan Amendment, Development Plan, and Vesting Tentative Tract Map Approval with Findings & Conditions. The City Council does hereby approve application GENP 1319-2015; SPEC/ER-1318-2015; SBDV 2042-2015, a Specific Plan Amendment (to reflect maps, policy language and data consistent with the Development Plan), General Plan Amendment (to update the Land Use Map, Circulation Map, and relevant statistical data consistent with the Development Plan), Development Plan, and Vesting Tentative Tract Map, to allow up to 720 dwelling units, including an 20-unit density bonus consistent with City requirements, based on the following findings and foregoing Mitigation Measures, 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 Packet Pg 224 15 Resolution No. _____ (2017 Series) Page 26 R ______ 7.0 of the June 28, 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. 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. 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 Packet Pg 225 15 Resolution No. _____ (2017 Series) Page 27 R ______ 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 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 o f 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 Packet Pg 226 15 Resolution No. _____ (2017 Series) Page 28 R ______ 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, 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 Packet Pg 227 15 Resolution No. _____ (2017 Series) Page 29 R ______ 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). 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 upon 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, Packet Pg 228 15 Resolution No. _____ (2017 Series) Page 30 R ______ 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 property 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. 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 Packet Pg 229 15 Resolution No. _____ (2017 Series) Page 31 R ______ 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 an d 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 request 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. 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 Packet Pg 230 15 Resolution No. _____ (2017 Series) Page 32 R ______ 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 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 Packet Pg 231 15 Resolution No. _____ (2017 Series) Page 33 R ______ 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 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 Packet Pg 232 15 Resolution No. _____ (2017 Series) Page 34 R ______ 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 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 Packet Pg 233 15 Resolution No. _____ (2017 Series) Page 35 R ______ / 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 ea st 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 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. Packet Pg 234 15 Resolution No. _____ (2017 Series) Page 36 R ______ 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 satisfaction 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. 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. Packet Pg 235 15 Resolution No. _____ (2017 Series) Page 37 R ______ 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 sewer 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 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 Packet Pg 236 15 Resolution No. _____ (2017 Series) Page 38 R ______ 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 plans 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. 72. Cut and fill slopes shall be protected as recommended b y 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, Homeowners Packet Pg 237 15 Resolution No. _____ (2017 Series) Page 39 R ______ 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). 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 Packet Pg 238 15 Resolution No. _____ (2017 Series) Page 40 R ______ 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). 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 Packet Pg 239 15 Resolution No. _____ (2017 Series) Page 41 R ______ 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 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 Packet Pg 240 15 Resolution No. _____ (2017 Series) Page 42 R ______ 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 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 Packet Pg 241 15 Resolution No. _____ (2017 Series) Page 43 R ______ 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 conditio n 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 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 Packet Pg 242 15 Resolution No. _____ (2017 Series) Page 44 R ______ 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. 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. Packet Pg 243 15 Resolution No. _____ (2017 Series) Page 45 R ______ 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 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 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 Packet Pg 244 15 Resolution No. _____ (2017 Series) Page 46 R ______ 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, 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 Packet Pg 245 15 Resolution No. _____ (2017 Series) Page 47 R ______ 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 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 Packet Pg 246 15 Resolution No. _____ (2017 Series) Page 48 R ______ & 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 s hall 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. 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. Packet Pg 247 15 Resolution No. _____ (2017 Series) Page 49 R ______ 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 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 Packet Pg 248 15 Resolution No. _____ (2017 Series) Page 50 R ______ 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 development. 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. 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. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was passed and adopted this _____ day of ____________ 2017. Packet Pg 249 15 Resolution No. _____ (2017 Series) Page 51 R ______ ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Carrie Gallagher City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick 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 Packet Pg 250 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 52 Exhibit 1 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: City of San Luis Obispo Packet Pg 251 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 53 Exhibit 1 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 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 and Circulation Element (adopted in December 2014). The MPA includes construction of up to 720 residential units and 15,000 square feet of commercial Packet Pg 252 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 54 Exhibit 1 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 Higue ra 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 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, Packet Pg 253 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 55 Exhibit 1 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 Guideli nes, 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. Packet Pg 254 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 56 Exhibit 1 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. Packet Pg 255 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 57 Exhibit 1 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 incorpor ation 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 wou ld be constructed during Phase 1. This would reduce visual impacts from construction within the MPA site from viewpoints along Buckley Road. 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.) Packet Pg 256 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 58 Exhibit 1 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 emissions 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. 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.) Packet Pg 257 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 59 Exhibit 1 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 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 Packet Pg 258 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 60 Exhibit 1 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 pages 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. 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 Packet Pg 259 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 61 Exhibit 1 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 t he 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. Packet Pg 260 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 62 Exhibit 1 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. Packet Pg 261 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 63 Exhibit 1 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; • 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 Packet Pg 262 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 64 Exhibit 1 • 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 t o 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. 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.) Packet Pg 263 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 65 Exhibit 1 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. — 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. Packet Pg 264 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 66 Exhibit 1 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 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 Packet Pg 265 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 67 Exhibit 1 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. 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. Packet Pg 266 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 68 Exhibit 1 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). 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 Packet Pg 267 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 69 Exhibit 1 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 maintena nce 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 peri meter of Tank Packet Pg 268 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 70 Exhibit 1 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 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. Packet Pg 269 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 71 Exhibit 1 — 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. 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 Packet Pg 270 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 72 Exhibit 1 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 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 Packet Pg 271 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 73 Exhibit 1 Environmental Monitor. Upon removal of the existing steel culvert currently used for farm ac cess 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 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. 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 Packet Pg 272 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 74 Exhibit 1 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. 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. 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 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 sedimentat ion. 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. Packet Pg 273 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 75 Exhibit 1 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 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 peri meter 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. Packet Pg 274 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 76 Exhibit 1 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 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 Packet Pg 275 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 77 Exhibit 1 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. 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. Packet Pg 276 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 78 Exhibit 1 — 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 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. Packet Pg 277 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 79 Exhibit 1 — 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: • 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 Packet Pg 278 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 80 Exhibit 1 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 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 fencin g shall be installed Packet Pg 279 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 81 Exhibit 1 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 wildlif e 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. Impacts to sensitive species would be reduced wit h 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: Packet Pg 280 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 82 Exhibit 1 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 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. 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 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 Packet Pg 281 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 83 Exhibit 1 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 t o 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: 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: 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 a ssociated 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. Packet Pg 282 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 84 Exhibit 1 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. 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 seas on, 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- Packet Pg 283 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 85 Exhibit 1 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. — 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 FEIR pa ges 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. Packet Pg 284 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 86 Exhibit 1 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). 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. Packet Pg 285 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 87 Exhibit 1 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-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. Packet Pg 286 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 88 Exhibit 1 — 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. • 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 Packet Pg 287 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 89 Exhibit 1 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: 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. Packet Pg 288 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 90 Exhibit 1 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). 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. Packet Pg 289 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 91 Exhibit 1 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 t op 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. Packet Pg 290 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 92 Exhibit 1 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 pos sible. 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 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 Packet Pg 291 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 93 Exhibit 1 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 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 Packet Pg 292 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 94 Exhibit 1 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-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. Packet Pg 293 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 95 Exhibit 1 • 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 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 fencin g 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 h eight 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. Packet Pg 294 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 96 Exhibit 1 — 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 of work for approval. The contractor is responsible for understanding the State General Permi t 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. • 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. Packet Pg 295 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 97 Exhibit 1 — 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 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. 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. Packet Pg 296 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 98 Exhibit 1 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 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. 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. Packet Pg 297 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 99 Exhibit 1 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 notif y 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 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. 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 conformance 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 feasibl e; if avoidance is not feasible, then appropriate mitigation measures would be 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.) Packet Pg 298 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 100 Exhibit 1 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 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 descr ibed, 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 Preserva tion 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. Packet Pg 299 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 101 Exhibit 1 — 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. 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, 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 Packet Pg 300 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 102 Exhibit 1 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 onsi te (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. Packet Pg 301 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 103 Exhibit 1 — 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. • 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 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 Packet Pg 302 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 104 Exhibit 1 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. — 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.) Packet Pg 303 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 105 Exhibit 1 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 ho urs. 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.) 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 Packet Pg 304 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 106 Exhibit 1 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; • 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 Packet Pg 305 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 107 Exhibit 1 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 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. 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 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 Packet Pg 306 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 108 Exhibit 1 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 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: 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. 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. Packet Pg 307 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 109 Exhibit 1 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. 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. Packet Pg 308 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 110 Exhibit 1 — 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 h abitat 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). — 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 Packet Pg 309 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 111 Exhibit 1 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. — 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. — 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 Packet Pg 310 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 112 Exhibit 1 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 threshol ds 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 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) Packet Pg 311 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 113 Exhibit 1 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. 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 Packet Pg 312 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 114 Exhibit 1 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 response 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, 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 Packet Pg 313 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 115 Exhibit 1 • 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. • 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, Packet Pg 314 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 116 Exhibit 1 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. 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 Packet Pg 315 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 117 Exhibit 1 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 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 Packet Pg 316 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 118 Exhibit 1 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. — 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. Packet Pg 317 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 119 Exhibit 1 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. 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. Packet Pg 318 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 120 Exhibit 1 — 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, 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 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. Packet Pg 319 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 121 Exhibit 1 — 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. — 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-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.) Packet Pg 320 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 122 Exhibit 1 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. — 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. Packet Pg 321 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 123 Exhibit 1 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, 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 Packet Pg 322 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 124 Exhibit 1 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; • 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; Packet Pg 323 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 125 Exhibit 1 • 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 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); Packet Pg 324 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 126 Exhibit 1 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: • 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 Packet Pg 325 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 127 Exhibit 1 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 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 Packet Pg 326 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 128 Exhibit 1 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 perce nt 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: 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 ex tent 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. Packet Pg 327 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 129 Exhibit 1 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 er adicated 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: 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 t he 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. Packet Pg 328 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 130 Exhibit 1 — 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: C alifornia 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 Packet Pg 329 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 131 Exhibit 1 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 chi cks 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 instal led 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; 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- Packet Pg 330 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 132 Exhibit 1 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-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 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 Packet Pg 331 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 133 Exhibit 1 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 histori c- 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 an d 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 Proj ect 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). Packet Pg 332 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 134 Exhibit 1 — 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. • 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. Packet Pg 333 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 135 Exhibit 1 — 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. — 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 Packet Pg 334 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 136 Exhibit 1 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. • 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: Packet Pg 335 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 137 Exhibit 1 • 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 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 Packet Pg 336 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 138 Exhibit 1 • 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. 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 cul tivated 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 equ ivalent area of prime farmland soils offsite to offset land that would be converted from 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 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. 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 Packet Pg 337 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 139 Exhibit 1 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 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 protecti on 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 Cit y 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: Packet Pg 338 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 140 Exhibit 1 • 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; • 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 sh own 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: Packet Pg 339 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 141 Exhibit 1 • 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. 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. Packet Pg 340 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 142 Exhibit 1 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 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 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. 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 significant 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. Packet Pg 341 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 143 Exhibit 1 — 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 an d 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 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 Fin al EIR infeasible, as analyzed in the FEIR. 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.) Packet Pg 342 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 144 Exhibit 1 a. Mitigation: The following mitigation measures are required to reduce project construction -related noise to the maximum extent feasible: — 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.) Packet Pg 343 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 145 Exhibit 1 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. — 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. Packet Pg 344 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 146 Exhibit 1 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 reduci ng 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. Packet Pg 345 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 147 Exhibit 1 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 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 Alternativ e. 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 Packet Pg 346 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 148 Exhibit 1 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 impacts would remain significant and unavoidable. Under the Proposed Project, constructi on 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 whic h 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 greater environmental impacts. Packet Pg 347 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 149 Exhibit 1 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. 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 o f 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 environmentally superior to the MPA. 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. Packet Pg 348 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 150 Exhibit 1 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. 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, would achieve all of the City’s objectives for the project, and is 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 than Alternative 2. 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 Packet Pg 349 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 151 Exhibit 1 amenities such as neighborhood parks and commercial goods and services that can serve the neighborhood. Nevertheless, this alternative does not satisfy project objectives or mitigate potential impacts to the same extent as Alternative 2. 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 fi nds 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 MPA 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 MPA 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 MPA 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 MPA 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 MPA 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 MPA 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 MPA 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. Packet Pg 350 15 Findings of Fact and Statement of Overriding Considerations Avila Ranch Development Plan City of San Luis Obispo July 2017 152 Exhibit 1 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 MPA 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 MPA 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 MPA 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 encourage them to remain within the community, which will help support and retain skilled employees f or local businesses and provide local economic stability. 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 Packet Pg 351 15 O ______ ORDINANCE NO. _____ (2017 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, REZONING PROPERTY AT 175 VENTURE DRIVE FROM BUSINESS PARK/SPECIFIC PLAN AREA (BP-SP) AND CONSERVATION/OPEN SPACE/SPECIFIC PLAN AREA (C/OS-SP) TO BE CONSISTENT WITH THE AVILA RANCH DEVELOPMENT PLAN AND WITH THE GENERAL PLAN AND AIRPORT AREA SPECIFIC PLAN AS AMENDED, COLLECTIVELY KNOWN AS THE “AVILA RANCH” AREA, IDENTIFIED IN THE GENERAL PLAN AS SPECIAL FOCUS AREA 4 (“SP-4”) WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on August 9, 2017, and recommended approval of the amendment to the City’s Zoning Map consistent with the Avila Ranch Development Plan (Exhibit 1, attached) as part of the entitlement process for the Avila Ranch project (GENP 1319-2015; SPEC/ER-1318-2015; SBDV 2042 2015; OTHR- 0455-2017; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on September 19, 2017, for the purpose of approving the Rezone; and WHEREAS, the City Council finds that the proposed revision is co nsistent with the General Plan and Airport Area Specific Plan as amended (related to the Avila Ranch project), the purposes of the Zoning Regulations, and other applicable City ordinances; and WHEREAS, the City Council certified an Environmental Impact Report for the project (SCH #2015081034) that addressed impacts related to the Rezone at its public hearing of September 19, 2017; and WHEREAS, notices of said public hearings were made at the time and in the manner required by law; and WHEREAS, the City Council has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff, presented at said hearing. NOW, THEREFORE, BE IT ORDAINED, by the City Council of the City of San Luis Obispo as follows: Packet Pg 352 15 Ordinance No. ______ (2017 Series) Page 2 O ______ SECTION 1. Environmental Determination. The City Council hereby finds that this action 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. SECTION 2. Findings. Based upon all evidence, the City Council makes the following findings: a) The Rezone allows the implementation of the Avila Ranch Development Plan by rezoning the site to be consistent with the General Plan and Airport Area Specific Plan as amended, and the Avila Ranch Development Plan. b) The proposed Rezone is consistent with General Plan Land Use Element policies and map as amended related to Avila Ranch, including the land uses and development pattern envisioned for the area for following reasons: 1) The proposed Rezone would facilitate the General Plan Land Use map as amended; 2) The Airport Area Specific Plan land use map was amended to reflect the General Plan development parameters and map for the area. c) A certified Final EIR for the project considered and provided appropriate mitigation measures for the project as envisioned that is consistent with the Rezone. d) The proposed Rezone will not create non-conforming uses at the site because the site is currently undeveloped. SECTION 3. Action. The City Council of San Luis Obispo hereby approves the Rezone as shown in attached “Exhibit 1”, which is consistent with the land use designations included in the Airport Area Specific Plan as amended, to facilitate future development consistent with the Avila Ranch Development Plan and related Vesting Tentative Tract Map as conditioned, with said conditions described fully in City Council Resolution No. ______. SECTION 4. Severability. 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 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 Packet Pg 353 15 Ordinance No. _____ (2017 Series) Page 3 O ______ unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 5. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The 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 ____________, 2017, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the _______ day of __________, 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 Packet Pg 354 15 Ordinance No. _____ (2017 Series) Page 4 O ______ Exhibit 1. Avila Ranch Area Zoning Map Packet Pg 355 15 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 Packet Pg 356 15 Ordinance No. _____ (2017 Series) Page 2 O ______ 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 a resolution 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: i.) incorporates a variety of housing types and affordability levels; ii.) 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. iii.) Provision of buffers along Buckley Road and along eastern edge of property from adjacent agricultural uses. Packet Pg 357 15 Ordinance No. _____ (2017 Series) Page 3 O ______ iv.) Provision of open space buffers along northern and western boundaries to separate this development from adjacent service and manufacturing uses. v.) Provision of open space buffers and protections for creek and wildlife corridor that runs through property. vi.) 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. vii.) Fully funding Buckley Road and the connection of Buckley Road to South Higuera Street. viii.) Appropriate internal and external pedestrian, bicycle, and transit connections to the City’s circulation network. ix.) Implementation of the City’s Bicycle Transportation Plan including connections to the Bob Jones Trail. x.) Water and wastewater infrastructure needs as detailed in the City’s Water and Wastewater Master Plans. xi.) Provides funding for fire protection and impacts to emergency response times. xii.) Includes architectural design that relates to the pastoral character of the area and preserves view of agrarian landscapes. xiii.) 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 “1” 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 Packet Pg 358 15 Ordinance No. _____ (2017 Series) Page 4 O ______ 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 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 th e 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 September 19, 2017, 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. Packet Pg 359 15 Ordinance No. _____ (2017 Series) Page 5 O ______ 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 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 ______________, _________. Packet Pg 360 15 Ordinance No. _____ (2017 Series) Page 6 O ______ ______________________________ Carrie Gallagher City Clerk Packet Pg 361 15 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. -________ Exhibit 1 Packet Pg 362 15 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 ........................................................................... 8 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 Exhibit 1 Packet Pg 363 15 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................................................................................................... 15 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................................................................ 23 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 ......................................................................... 25 Exhibit 1 Packet Pg 364 15 Section 7.11. Traffic and Circulation Improvements........................................... 25 Section 7.12. Bicycle and Multimodal Transportation Improvements ................ 25 Section 7.13. Miscellaneous ................................................................................. 26 ARTICLE 8. CONSIDERATION OF PERMITS AND APPROVALS .......................... 27 Section 8.01. In General................................................................................................... 27 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 ................................................................................. 28 Section 8.06. Need for Flexibility ........................................................................ 28 ARTICLE 9. AMENDMENTS ....................................................................................... 28 Section 9.01. Amendments of Agreement. ...................................................................... 28 ARTICLE 10. ANNUAL REVIEW ................................................................................ 29 Section 10.01. Annual Review............................................................................. 29 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 ................................................ 30 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. ..................................................... 31 Section 12.02. Remedies of Non-Defaulting Party. ............................................. 31 Section 12.03. Termination Due to Default. ........................................................ 32 Section 12.03.2. Procedures for Termination. ..................................................... 33 Exhibit 1 Packet Pg 365 15 ARTICLE 13. ASSIGNMENT, TRANSFER AND NOTICE ........................................ 33 Section 13.02. Transfers In General. ................................................................... 33 Section 13.02.02. City Review of Release Provisions. ........................................ 34 ARTICLE 14. MORTGAGEE PROTECTION ............................................................... 35 ARTICLE 15. GENERAL PROVISIONS ...................................................................... 36 Section 15.01. Incorporation of Recitals and Exhibits ........................................ 36 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 ................................................................ 37 Section 15.05. Governing Law; Attorneys’ Fees ................................................. 37 Section 15.06. Force Majeure .............................................................................. 37 Section 15.07. Waiver .......................................................................................... 38 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....................................................................... 40 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 .............................................................. 41 Section 15.18. Exhibits. ................................................................................................... 41 Exhibit 1 Packet Pg 366 15 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 the effective date of the City ordinance approving this Development Agreement, 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 . Exhibit 1 Packet Pg 367 15 (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 Exhibit 1 Packet Pg 368 15 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. Exhibit 1 Packet Pg 369 15 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 Exhibit 1 Packet Pg 370 15 writing, to the City Manager at least 180 days, but no earlier than 365 days, before 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 herein, “substantially complete” means that all of the Backbone Infrastructure required for Phases 1 and 2 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 8.04 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. Exhibit 1 Packet Pg 371 15 Section 1.04.2. Recordation. City shall deliver this Development Agreement to the County Recorder for recordation within 10 days following its execution. 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 Exhibit 1 Packet Pg 372 15 is material consideration for Avila Ranch’s agreement to perform and abide by the covenants and Obligations of Avila Ranch set forth herein. 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 reservations or dedications 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. Exhibit 1 Packet Pg 373 15 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. 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 official 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 Exhibit 1 Packet Pg 374 15 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 (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. (a) 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. (b) 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. Exhibit 1 Packet Pg 375 15 (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 “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 consider in good faith 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: Exhibit 1 Packet Pg 376 15 (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. (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 publiclyowned 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; and riparian open space, but expressly shall not assume responsibility to maintain, repair and insure streets, curbs, gutters, sidewalks, regional park (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 Exhibit 1 Packet Pg 377 15 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 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 subsection (b) above); 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. Exhibit 1 Packet Pg 378 15 (e) No new debt shall be issued that affects the Project or the Property without Avila Ranch’s approval, unless such debt otherwise conforms 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. 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. and California Constitution, article XIII A and its implementing statutes. (b) The Developer shall be required to pay all City-wide, Airport Area Specific Plan, Los Osos Valley Road (“L.O.V.R.”) 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 Exhibit 1 Packet Pg 379 15 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. (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 California Government Code section 66485 et seq. and section 16.20.110 of the City’s municipal code, the City’s zoning ordinance, 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. Exhibit 1 Packet Pg 380 15 (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 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: reasonable direct costs of construction and materials, soft costs including 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. Exhibit 1 Packet Pg 381 15 (1) Development Impact Fees paid by the Project for the improvements specified from the AASP impact fees, L.O.V.R. 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 (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 Exhibit 1 Packet Pg 382 15 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 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 Exhibit 1 Packet Pg 383 15 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. (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 and J 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 Exhibit 1 Packet Pg 384 15 through E-4 and J 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. 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 Exhibit 1 Packet Pg 385 15 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 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 any 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, L.O.V.R./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 Exhibit 1 Packet Pg 386 15 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 not limited to, attorneys' fees, expert witness fees, settlement costs, 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 Development Plan and 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 Development Plan, 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 Exhibit 1 Packet Pg 387 15 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 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 Off -Site 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 Exhibit 1 Packet Pg 388 15 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 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 Design Framework of the Development Plan. The Exhibit 1 Packet Pg 389 15 Project shall also include energy efficiency standards in excess of the current Building Code. (b) Developer shall provide sustainability features as described in Section 13 of the Design Framework of the Development Plan, including: (i) housing that meets the 2019 net zero building and energy codes or, if the 2019 building and energy codes are not yet adopted upon building permit application, the equivalent to the satisfaction of the Community Development Director, (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. 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 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 Exhibit 1 Packet Pg 390 15 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 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. In addition, Avila Ranch shall construct or fund the following improvements: a. Buckley/227 Intersection Improvements. Avila Ranch shall commit $200,000 above its fair share allocation of costs to facilitate design of the roundabout improvements for the Buckley Road/227 intersection called for in the 227 corridor study. b. Operational Improvements to the Davenport Creek and Buckley Road Intersection. The Project’s fair share of these improvements is 2.7 percent, based on the Project’s share of additional traffic on Buckley Road. Avila Ranch shall provide funding to the City in the amount of $230,000 for these improvements (90 percent of projected costs), including the costs for initial design, construction documents, and right-of-way acquisition. In the event actual costs are less than what has been projected, Avila Ranch may apply the remaining funds ($230,000 less 90 percent of actual costs of construction) to the Buckley/227 intersection improvements. The City shall work with the County of San Luis Obispo and enter into any necessary agreements to act as a conduit for the Avila Ranch funding contribution to the Davenport Creek and Buckley Road intersection improvements. Section 7.12. Bicycle and Multimodal Transportation Improvements. Avila Ranch shall construct or fund the construction of 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 Exhibit 1 Packet Pg 391 15 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 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; (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. Exhibit 1 Packet Pg 392 15 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. 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. Exhibit 1 Packet Pg 393 15 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 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 Exhibit 1 Packet Pg 394 15 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. 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 Exhibit 1 Packet Pg 395 15 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 17.94.200 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 in good faith with this Agreement, the Community Development Director shall proceed as specified in section 17.94.200 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 Exhibit 1 Packet Pg 396 15 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, 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, Exhibit 1 Packet Pg 397 15 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 Development 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 to limit either Party’s rights under the Government Claims Act, California Government Code section 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 12.03.2 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, 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. Exhibit 1 Packet Pg 398 15 Section 12.03.2. Procedures for Termination. (a) Before any proposed termination of this Development Agreement pursuant to this Section 12.03, and following the 180-day period specified in Section 12.03.1 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 17.94.210– 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. (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 Exhibit 1 Packet Pg 399 15 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 Section 13.02.1, clauses (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 shall be free from any and all Rights and Obligations accruing on or after the date of the 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. 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. Exhibit 1 Packet Pg 400 15 (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 Non-Assuming Transferee from the payment of applicable fees, taxes and assessments or from having to comply 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 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. Exhibit 1 Packet Pg 401 15 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 Development 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–J attached hereto are incorporated herein as though set forth in full. 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 s hall 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. Exhibit 1 Packet Pg 402 15 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 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, to enforce any provision of this Development 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 Exhibit 1 Packet Pg 403 15 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 Development 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 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 Exhibit 1 Packet Pg 404 15 given and received when delivered to the Party to whom it is 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 Telecopy/Facsimile: (805) 781-7109 With a courtesy copy to: City Attorney City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 95330 If to Avila Ranch to: Avila Ranch, LLC C/O Andy Mangano, Managing Member 3596 South Broad Street, Suite 140 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 Exhibit 1 Packet Pg 405 15 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. 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 Development 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. Exhibit 1 Packet Pg 406 15 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 SP Site Plan B – Legal Description C – Financing Plan D – Phasing Plan E-1 – Backbone Water Infrastructure E-2 – Backbone Sewer Infrastructure E-3 – Backbone Recycled Water Infrastructure E-4 –Backbone Drainage Infrastructure F – Figure 5 of Conservation & Open Space Element G – Affordable/Workforce Housing Plan H – Water Improvements I – Water Well Site Plan J – Bicycle 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 Exhibit 1 Packet Pg 407 15 AVILA RANCH: [Avila Ranch signature block] Exhibit 1 Packet Pg 408 15 Exhibit 1 Packet Pg 409 15 Exhibit A Avila Ranch Site Plan Exhibit 1 Packet Pg 410 15 AVILA RANCH DEVELOPMENT PLANMay 2, 2017#1011023A3Composite Site Plan0 75 150300SCALE: 1”=150’ (24”x36” sheet)REFER TO A6 FORADDITIONAL DETAILREFER TO A9 FORADDITIONAL DETAILREFER TO A8 FORADDITIONAL DETAILREFER TO A7 FORADDITIONAL DETAILREFER TO A5 FORADDITIONAL DETAILREFER TO A4 FORADDITIONAL DETAILExhibit 1Packet Pg 41115 AVILA RANCH DEVELOPMENT PLANMay 2, 2017#1011023A3Composite Site Plan0 75 150300SCALE: 1”=150’ (24”x36” sheet)REFER TO A6 FORADDITIONAL DETAILREFER TO A9 FORADDITIONAL DETAILREFER TO A8 FORADDITIONAL DETAILREFER TO A7 FORADDITIONAL DETAILREFER TO A5 FORADDITIONAL DETAILREFER TO A4 FORADDITIONAL DETAILExhibit 1Packet Pg 41215 Exhibit B Legal Description Exhibit 1 Packet Pg 413 15 Exhibit 1 Packet Pg 41415 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: Exhibit 1 Packet Pg 415 15 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 Exhibit 1 Packet Pg 416 15 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 Exhibit 1 Packet Pg 417 15 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 Exhibit 1 Packet Pg 418 15 Exhibit C Financing Plan Exhibit 1 Packet Pg 419 15 Draft Report Avila Ranch Financing Plan Prepared for: City of San Luis Obispo Prepared by: Economic & Planning Systems, Inc. September 1, 2017 EPS #161181 Exhibit 1 Packet Pg 420 15 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  Exhibit 1 Packet Pg 421 15 Economic & Planning Systems, Inc. 1 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_09-01-17.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 $57.0 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 Exhibit 1 Packet Pg 422 15 Draft Avila Ranch Financing Plan September 1, 2017 Economic & Planning Systems, Inc. 2 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_09-01-17.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 Funding Source Exhibit 1 Packet Pg 423 15 Draft Avila Ranch Financing Plan September 1, 2017 Economic & Planning Systems, Inc. 3 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_09-01-17.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. Exhibit 1 Packet Pg 424 15 Economic & Planning Systems, Inc. 4 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_09-01-17.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 Exhibit 1 Packet Pg 425 15 Draft Avila Ranch Financing Plan September 1, 2017 Economic & Planning Systems, Inc. 5 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_09-01-17.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; Exhibit 1 Packet Pg 426 15 Draft Avila Ranch Financing Plan September 1, 2017 Economic & Planning Systems, Inc. 6 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_09-01-17.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, however, will 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 Exhibit 1 Packet Pg 427 15 Economic & Planning Systems, Inc. 7 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_09-01-17.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. Exhibit 1 Packet Pg 428 15 Draft Avila Ranch Financing Plan September 1, 2017 Economic & Planning Systems, Inc. 8 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_09-01-17.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. Exhibit 1 Packet Pg 429 15 Draft Avila Ranch Financing Plan September 1, 2017 Economic & Planning Systems, Inc. 9 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_09-01-17.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 $37,234,884 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 $67,102,134 Sources: Avila Ranch LLC; City of San Luis Obispo. [1] Total Project Infrastructure costs whether Avila Ranch is building or paying fees. Exhibit 1 Packet Pg 430 15 Draft Avila Ranch Financing Plan September 1, 2017 Economic & Planning Systems, Inc. 10 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_09-01-17.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 Exhibit 1 Packet Pg 431 15 Economic & Planning Systems, Inc. 11 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_09-01-17.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 $57.0 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 Exhibit 1 Packet Pg 432 15 Draft Avila Ranch Financing Plan September 1, 2017 Economic & Planning Systems, Inc. 12 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_09-01-17.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, Exhibit 1 Packet Pg 433 15 Draft Avila Ranch Financing Plan September 1, 2017 Economic & Planning Systems, Inc. 13 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_09-01-17.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. Exhibit 1 Packet Pg 434 15 Economic & Planning Systems, Inc. 14 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_09-01-17.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. Exhibit 1 Packet Pg 435 15 Draft Avila Ranch Financing Plan September 1, 2017 Economic & Planning Systems, Inc. 15 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_09-01-17.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 Exhibit 1 Packet Pg 436 15 Draft Avila Ranch Financing Plan September 1, 2017 Economic & Planning Systems, Inc. 16 P:\161000s\161181AvilaRanch\Financing Plan\Avila Ranch Draft Financing Plan_09-01-17.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 Exhibit 1 Packet Pg 437 15 APPENDIX A: Avila Ranch Services CFD Preliminary Rate Allocation, Local Area Maintenance, and Fiscal Mitigation Combined Exhibit 1 Packet Pg 438 15 Table A-1Summary of Avila Ranch Services CFD Preliminary Rate Allocation at Development StabilizationItemLocal Area Maintenance [1]Fiscal MitigationCity CFD Admin [2]Contract CFD Admin [2]TotalAnnual Costs in CFD at Buildout$1,168,813 $414,156 $97,500 $33,609 $1,714,079Annual Cost per Unit at Buildout [3]$1,623$575$135$47 $2,381Avg. Cost per Unit per Month at Buildout$135$48$11$4$198Average Annual Tax Burden0.28% 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. Economic & Planning Systems, Inc. 9/1/2017P:\161000s\161181AvilaRanch\CFD\Avila Ranch CFD Cost Review 8-01-2017.xlsxExhibit 1Packet Pg 43915 Table A-2Avila Ranch Services CFD Preliminary Rate Allocation, Local Area Maintenance and Fiscal Mitigation CombinedAnnual Revenue/ExpenditureTotal 1 2 3 4 5 6Per Unit (720 Units)Units179292141971010Cumulative Units 179208422619720720Duration/Years30.5222City ComponentLocal Area MaintenanceAnnual Local Area Maintenance Costs($1,103,267) ($319,764) ($100,763) ($77,667) ($365,700) ($239,373)$0($1,532)CFD Project Delivery (Admin. Costs)($97,500)($45,000)($6,752)($5,204)($24,504)($16,040)$0($135)Total LAM Component($1,200,767) ($364,764) ($107,515) ($82,871) ($390,204) ($255,412)$0($1,668)Fiscal MitigationAnnual Fiscal Revenues $850,605 $226,093 $37,043 $226,790 $212,760 $141,120 $6,797 $1,181Annual Fiscal Expenditures $1,529,825 $377,472 $61,155 $451,280 $415,430 $212,987 $11,500 $2,125less Park and Landscape Maintenance$213,528 $42,706 $0 $40,037 $130,786 $0 $0 $297less Transportation$51,536$12,565$2,059$15,334$13,985$7,170$423$72Revised Subtotal, Fiscal Expenditures$1,264,761 $322,201 $59,096 $395,909 $270,659 $205,817 $11,077 $1,757Net Fiscal Impact($414,156) ($96,108) ($22,053) ($169,119) ($57,899) ($64,697) ($4,280) ($575)CFD CalculationsTotal City Costs in CFD (LAM and Fiscal)$1,614,923 $460,872 $129,568 $251,990 $448,104 $320,109$4,280 $2,243Administrative Charge (at 2%)$32,298$9,217$2,591$5,040$8,962$6,402$86$45Total CFD Costs (Annual)$1,647,221 $470,090 $132,159 $257,030 $457,066 $326,512$4,366 $2,288Cumulative CFD Costs$470,090 $602,249 $859,279 $1,316,344 $1,642,856 $1,647,222Cumulative Annual CFD Cost per DU$2,626$2,895$2,036$2,127$2,282$2,288Cumulative Monthly CFD Cost per DU$219$241$170$177$190$191 $191Development Value by Phase$414,360,200 $118,050,500 $19,125,500 $99,320,500 $100,174,500 $77,689,200 $4,500,000Cumulative Development Value$118,050,500 $137,176,000 $236,496,500 $336,671,000 $414,360,200 $418,860,200 $581,750Average Annual CFD Tax Burden by Phase0.40%0.44%0.36%0.39%0.40%0.39% 0.39%County ComponentLocal Area Maintenance($65,546) ($13,425) ($13,721) ($16,050) ($14,775) ($7,575)$0($91)Combined CFD CalculationsTotal Costs (with County) in CFD$1,680,469 $474,297 $143,289 $268,040 $462,879 $327,684$4,280 $2,334Administrative Charge (at 2%)$33,609$9,486$2,866$5,361$9,258$6,554$86$47Total CFD Costs (Annual)$1,714,079 $483,783 $146,155 $273,401 $472,136 $334,238$4,366 $2,381Cumulative CFD Costs$483,783 $629,938 $903,339 $1,375,475 $1,709,713 $1,714,079Cumulative Annual CFD Cost per DU$2,702.70 $3,028.55$2,141$2,222$2,375$2,381Cumulative Monthly CFD Cost per DU$225$252$178$185$198$198 $198Development Value by Phase$414,360,200 $118,050,500 $19,125,500 $99,320,500 $100,174,500 $77,689,200 $4,500,000Cumulative Development Value$118,050,500 $137,176,000 $236,496,500 $336,671,000 $414,360,200 $418,860,200 $581,750Average Annual CFD Tax Burden by Phase0.41%0.46%0.38%0.41%0.41%0.41% 0.41%Cost Allocation per Unit per Month$225.23 $252.38 $178.38 $185.17 $197.88 $198.39Recommended Rate per Unit per Month$225.00 $225.00 $200.00 $200.00 $200.00 $200.00Annual CFD Revenue by Phase$483,300 $561,600 $1,012,800 $1,485,600 $1,728,000 $1,728,000Cost$483,783 $629,938 $903,339 $1,375,475 $1,709,713 $1,714,079Phase Cash Flow($483) ($68,338)$109,461 $110,125 $18,287 $13,921Cumulative Operating Reserve($483) ($68,821)$40,640 $150,765 $169,052 $182,973Sources: City of San Luis Obispo; Avila Ranch LLC; ADE; Kosmont; Economic & Planning Systems, Inc.Phase/Revenue and ExpensesEconomic & Planning Systems, Inc. 9/1/2017P:\161000s\161181AvilaRanch\CFD\Avila Ranch CFD Cost Review 8-01-2017.xlsxExhibit 1Packet Pg 44015 Table A-3Local Area Maintenance Annual Cost AssumptionsAvila Ranch CategoryAsset ActivityCost Interval (years)Cost Unit Unit Cost Annual Cost/Unit 1 2 3 4 5 6179292141971010City Maintained AssetsParks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBridgePed/Bike Bridges100 Each100,000.00$ 1,000.00$ 1 1 Parks and GreenbeltsTransportationNeighborhood WellnessLandscape Maintenance Medians0.083 SF0.04$ 0.48$ 00000Parks and GreenbeltsTransportationNeighborhood WellnessLandscape Maintenance Parkway0.083 SF0.02$ 0.24$ 60,540 9,100 7,000 29,820 41,900 Parks and GreenbeltsTransportationNeighborhood WellnessLandscape Parkway Water (1.21 AF/Ac per WSA)1.000 Acre-Foot3,560.00$ 3,560.00$ 1.68 0.25 0.19 0.83 1.16 - Parks and GreenbeltsTransportationNeighborhood WellnessLandscape Maintenance RAB0.083 SF0.04$ 0.48$ 2,289 4,578 Parks and GreenbeltsTransportationCommunity SafetyLandscape Drainage Basin Inspection1 Each600600.00$ 1.00 1.00 1.00 1.00 1.00 Parks and GreenbeltsTransportationCommunity SafetyLandscape Maintain Water Quality BMPs Monthly0.083 SF0.030.36$ 19,368.00 4,248.00 2,520.00 15,480.00 12,564.00 Parks and GreenbeltsTransportationCommunity SafetyLandscape Inspect Water Quality BMPs per rain0.333 SF0.010.03$ 19,368.00 4,248.00 2,520.00 15,480.00 12,564.00 Parks and GreenbeltsTransportationInfrastructure & TransportationLandscape Retaining50 SF38.00$ 0.76$ 7,250 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessLandscape Sound Berm0.083 SF0.02$ 0.20$ 29,131 Parks and GreenbeltsLeisure, Cultural & Social Services Environmental Health and Open Space Open Space Ongoing Open Space Maintenance1 Acre19.48$ 19.48$ 5.30 2.40 1.70 10.50 14.00 Parks and GreenbeltsLeisure, Cultural & Social Services Environmental Health and Open Space Open Space Operating - Natural Resources Protection1 Acre89.61$ 89.61$ 5.30 2.40 1.70 10.50 14.00 Parks and GreenbeltsLeisure, Cultural & Social Services Environmental Health and Open Space Open SpaceOperational--Ranger Services1 Acre73.04$ 73.04$ 5.30 2.40 1.70 10.50 14.00 Parks and GreenbeltsLeisure, Cultural & Social Services Environmental Health and Open Space Open SpaceRanger Vehicle1 Acre5.00$ 5.00$ 5.30 2.40 1.70 10.50 14.00 Parks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike PathClass I Bike Path Rehabilitation50 SF14.50$ 0.29$ 24,480 12,840 5,760 10,080 19,200 Parks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike PathClass I Bike Path Sealing8 SF0.80$ 0.10$ 24,480 12,840 5,760 10,080 19,200 Parks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike Path Class I Light Energy (1/75 LF)1 Each13.00$ 13.00$ 27 14 6 11 21 - Parks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike Path Class I Light Maintenance1 Each12.00$ 12.00$ 27 14 6 11 21 Parks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike Path Class I Light Pole Replacement75 Each3,000.00$ 40.00$ 27 14 6 11 21 Parks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike Path Class I Light Replacement25 Each2,500.00$ 100.00$ 27 14 6 11 21 Parks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike PathClass I Vegetation Removal0.25 SF0.05$ 0.20$ 32,640 17,120 7,680 13,440 25,600 - Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkRecreation Structures (Shelters/Pergolas)50 SF150.00$ 3.00$ 400 600 2,900 4,000 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkRecreation Structures (Coatings)10 SF1.67$ 0.17$ 400 600 2,900 4,000 Parks and GreenbeltsLeisure, Cultural & Social ServicesNeighborhood WellnessParkOperating - Parks Maintenance1 Acre10,162.47$ 10,162.47$ 3.14 1.34 0.81 10.38 2.58 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPark Energy Costs1 Acre360.00$ 360.00$ 3.14 1.34 0.81 10.38 2.58 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPark Water Cost (Avg 1.49 AF/Ac per Parks Plan)1 Acre-Foot3,560.00$ 3,560.00$ 4.68 2.00 1.21 3.84 - Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPark Water Well Replacement75 Each60,000.00$ 800.00$ 0.20 0.20 0.20 0.20 0.20 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPark Water Well Pump and Booster10 Each4,000.00$ 400.00$ 0.20 0.20 0.20 0.20 0.20 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPark Water Well Energy Cost0.083 Acre-Foot133.33$ 1,600.00$ 0.20 0.20 0.20 0.20 0.20 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkParking Lot Rehabilitation40 SF14.50$ 0.36$ 17,200 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkParking Lot Sealing10 SF0.80$ 0.08$ 17,200 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkParks Major Maintenance1 Each Park8,448.28$ 8,448.28$ 2 2 1 2 2 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPlay Equipment Maintenance15 Each Site100,000.00$ 6,666.67$ 2 2 1 2 2 Parks and GreenbeltsTransportationCommunity SafetyStorm DrainCapital Creek Maintenance15 Each100,000.00$ 6,666.67$ 1.00 Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessTreePark Tree8 Each300.00$ 37.50$ 154 26 25 234 131 - Parks and GreenbeltsLeisure, Cultural & Social Services Community SafetyTreeRiparian Tree Removal - Storm Event20 Acre150.00$ 7.50$ 5.74 2.37 1.65 2.16 6.16 Residential Collectors and Arterials TransportationInfrastructure & TransportationBridgeBridge Deck Maintenance20 SF50.00$ 2.50$ 3,360 Residential Collectors and Arterials TransportationInfrastructure & TransportationBridgeBridge Replacement100 SF1,700.00$ 17.00$ 3,360 Residential Collectors and Arterials TransportationInfrastructure & TransportationLighting Street Light Energy1Each15.00$ 15.00$ 24 5 10 11 14 - Residential Collectors and Arterials TransportationInfrastructure & TransportationLighting Street Light Maintenance1 Each12.00$ 12.00$ 24 5 10 11 14 Residential Collectors and Arterials TransportationInfrastructure & TransportationLighting Street Light Pole Replacement75 Each5,000.00$ 66.67$ 24 5 10 11 14 Residential Collectors and Arterials TransportationInfrastructure & TransportationLighting Street Light Replacement25 Each2,500.00$ 100.00$ 24 5 10 11 14 Residential Collectors and Arterials TransportationInfrastructure & TransportationStreets Operating - Street Maintenance1 SF0.06$ 0.06$ 193,680 42,480 25,200 154,800 125,640 - Residential Collectors and Arterials TransportationCommunity SafetyStorm Drain Drainage Inlets100 Each13,500.00$ 135.00$ 16 4 8 8 4 Residential Collectors and Arterials TransportationCommunity SafetyStorm Drain Manholes100 Each9,500.00$ 95.00$ 21 4 5 11 4 Residential Collectors and Arterials TransportationCommunity SafetyStorm Drain Operating - Flood Control1 LF3.25$ 3.25$ 6,800 550 2,075 2,380 5,500 Residential Collectors and Arterials TransportationCommunity SafetyStorm Drain Pipeline100 LF350.00$ 3.50$ 6,800 550 2,075 2,380 5,500 Residential Collectors and Arterials TransportationInfrastructure & TransportationStreetsAccess Roadway Rehabilitation (Private--Maintained by Homeowners)Residential Collectors and Arterials TransportationInfrastructure & TransportationStreetsAccess Roadway Sealing (Private--Maintained by Homeowners)Residential Collectors and Arterials TransportationInfrastructure & TransportationStreetsCurb and Gutter75 LF35.00$ 0.47$ 10,700 2,400 5,000 6,460 9,100 Residential Collectors and ArterialsTransportationInfrastructure & TransportationStreets Roadway Rehabilitation75 SF15.00$ 0.20$ 193,680 42,480 25,200 154,800 125,640 Residential Collectors and Arterials TransportationInfrastructure & TransportationStreets Roadway Sealing10 SF1.25$ 0.13$ 193,680 42,480 25,200 154,800 125,640 Residential Collectors and Arterials TransportationInfrastructure & TransportationStreetsReplace Sidewalk100 SF25.00$ 0.25$ 62,700 12,900 29,000 47,100 41,900 Residential Collectors and Arterials Leisure, Cultural & Social Services Neighborhood WellnessTreeStreet Tree (25 LF/Each Side)10 Each300.00$ 30.00$ 600 104 80 365 56 319,764$ 100,763$ 77,667$ 365,700$ 239,373$ -$ County Maintained AssetsParks and GreenbeltsParkClass I Bike Path Rehabilitation40 SF 14.50$ 0.36$ 18,096 Parks and GreenbeltsParkClass I Bike Path Sealing8 SF 0.80$ 0.10$ 18,096 Parks and GreenbeltsPark Class I Light Energy 1 Each 13.00$ 13.00$ 20 Parks and GreenbeltsPark Class I Light Maintenance 1 Each 12.00$ 12.00$ 20 Parks and GreenbeltsPark Class I Light Pole Replacement 75 Each 3,000.00$ 40.00$ 20 Parks and GreenbeltsPark Class I Light Replacement 20 Each 1,500.00$ 75.00$ 20 Parks and GreenbeltsParkClass I Vegetation Removal0.25 SF 0.05$ 0.0200$ 18,096 Parks and GreenbeltsBridge Ped/Bike Bridges 100 Each 100,000.00$ 1,000.00$ - County NoiseDU 75.00$ 179 29 214 197 101 Subtotal--County13,425$ 13,721$ 16,050$ 14,775$ 7,575$ -$ Quantity by PhaseSubtotal--City Maintained Assets w/CFD AllocationEconomic & Planning Systems, Inc. 9/1/2017P:\161000s\161181AvilaRanch\CFD\Avila Ranch CFD Cost Review 8‐01‐2017.xlsxExhibit 1Packet Pg 44115 Table A-3Local Area Maintenance Annual Cost AssumptionsAvila Ranch CategoryAsset ActivityCity Maintained AssetsParks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBridgePed/Bike BridgesParks and GreenbeltsTransportationNeighborhood WellnessLandscape Maintenance MediansParks and GreenbeltsTransportationNeighborhood WellnessLandscape Maintenance ParkwayParks and GreenbeltsTransportationNeighborhood WellnessLandscape Parkway Water (1.21 AF/Ac per WSA)Parks and GreenbeltsTransportationNeighborhood WellnessLandscape Maintenance RABParks and GreenbeltsTransportationCommunity SafetyLandscape Drainage Basin InspectionParks and GreenbeltsTransportationCommunity SafetyLandscape Maintain Water Quality BMPs MonthlyParks and GreenbeltsTransportationCommunity SafetyLandscape Inspect Water Quality BMPs per rainParks and GreenbeltsTransportationInfrastructure & TransportationLandscape RetainingParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessLandscape Sound BermParks and GreenbeltsLeisure, Cultural & Social Services Environmental Health and Open Space Open Space Ongoing Open Space MaintenanceParks and GreenbeltsLeisure, Cultural & Social Services Environmental Health and Open Space Open Space Operating - Natural Resources ProtectionParks and GreenbeltsLeisure, Cultural & Social Services Environmental Health and Open Space Open SpaceOperational--Ranger ServicesParks and GreenbeltsLeisure, Cultural & Social Services Environmental Health and Open Space Open SpaceRanger VehicleParks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike PathClass I Bike Path RehabilitationParks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike PathClass I Bike Path SealingParks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike Path Class I Light Energy (1/75 LF)Parks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike Path Class I Light MaintenanceParks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike Path Class I Light Pole ReplacementParks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike Path Class I Light ReplacementParks and GreenbeltsLeisure, Cultural & Social Services Infrastructure & TransportationBike PathClass I Vegetation RemovalParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkRecreation Structures (Shelters/Pergolas)Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkRecreation Structures (Coatings)Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkOperating - Parks MaintenanceParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPark Energy CostsParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPark Water Cost (Avg 1.49 AF/Ac per Parks Plan)Parks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPark Water Well ReplacementParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPark Water Well Pump and BoosterParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPark Water Well Energy CostParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkParking Lot RehabilitationParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkParking Lot SealingParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkParks Major MaintenanceParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessParkPlay Equipment MaintenanceParks and GreenbeltsTransportationCommunity SafetyStorm DrainCapital Creek MaintenanceParks and GreenbeltsLeisure, Cultural & Social Services Neighborhood WellnessTreePark TreeParks and GreenbeltsLeisure, Cultural & Social Services Community SafetyTreeRiparian Tree Removal - Storm EventResidential Collectors and Arterials TransportationInfrastructure & TransportationBridgeBridge Deck MaintenanceResidential Collectors and Arterials TransportationInfrastructure & TransportationBridgeBridge ReplacementResidential Collectors and Arterials TransportationInfrastructure & TransportationLighting Street Light EnergyResidential Collectors and Arterials TransportationInfrastructure & TransportationLighting Street Light MaintenanceResidential Collectors and Arterials TransportationInfrastructure & TransportationLighting Street Light Pole ReplacementResidential Collectors and Arterials TransportationInfrastructure & TransportationLighting Street Light ReplacementResidential Collectors and Arterials TransportationInfrastructure & TransportationStreets Operating - Street MaintenanceResidential Collectors and Arterials TransportationCommunity SafetyStorm Drain Drainage InletsResidential Collectors and Arterials TransportationCommunity SafetyStorm Drain ManholesResidential Collectors and Arterials TransportationCommunity SafetyStorm Drain Operating - Flood ControlResidential Collectors and Arterials TransportationCommunity SafetyStorm Drain PipelineResidential Collectors and Arterials TransportationInfrastructure & TransportationStreetsAccess Roadway Rehabilitation (Private--MaintainResidential Collectors and Arterials TransportationInfrastructure & TransportationStreetsAccess Roadway Sealing (Private--Maintained by Residential Collectors and Arterials Transportation Infrastructure & Transportation StreetsCurb and GutterResidential Collectors and Arterials Transportation Infrastructure & Transportation Streets Roadway RehabilitationResidential Collectors and Arterials Transportation Infrastructure & Transportation Streets Roadway SealingResidential Collectors and Arterials Transportation Infrastructure & Transportation StreetsReplace SidewalkResidential Collectors and Arterials Leisure, Cultural & Social Services Neighborhood Wellness Tree Street Tree (25 LF/Each Side)County Maintained AssetsParks and GreenbeltsParkClass I Bike Path RehabilitationParks and GreenbeltsParkClass I Bike Path SealingParks and GreenbeltsPark Class I Light EnergyParks and GreenbeltsPark Class I Light MaintenanceParks and GreenbeltsPark Class I Light Pole ReplacementParks and GreenbeltsPark Class I Light ReplacementParks and GreenbeltsParkClass I Vegetation RemovalParks and GreenbeltsBridge Ped/Bike BridgesCounty NoiseSubtotal--CountySubtotal--City Maintained Assets w/CFD AllocationTotal Units Annual Cost/Item CFD Allocation Allocation to CFD Allocation Comment/Rationale Comment 720 2.00 2,000$ 2,000$ 100% Normal HOA Cost, but general community benefit- -$ -$ 100% Normal HOA Cost, and primarily local benefit 148,360.00 35,606$ 35,606$ 100% Normal HOA Cost, and primarily local benefit 4.12 14,671$ 14,671$ 100% Normal HOA Cost, and primarily local benefit Acre-Ft price provide by City6,867.00 3,296$ 3,296$ 100% Normal HOA Cost, and primarily local benefit 5.00 3,000$ 3,000$ 100% Inspect and Report on Basin 54,180.00 19,505$ 19,505$ 100%yqygroadway surface 54,180.00 1,625$ 1,625$ 100% Inspect BMPs per significant rain event 7,250.00 5,510$ 5,510$ 100% Normal HOA Cost, and primarily local benefit 29,131.00 5,826$ 5,826$ 100% Normal HOA Cost, and primarily local benefit 33.90 660$ 660$ 100% Normal City Responsibility33.90 3,038$ 3,038$ 100% Normal City Responsibility33.90 2,476$ 2,476$ 100% Normal City Responsibility33.90 170$ 170$ 100% Normal City Responsibility72,360.00 20,984$ 20,984$ 100% Normal HOA Cost, but primarily general community benefit72,360.00 7,236$ 7,236$ 100% Normal HOA Cost, but primarily general community benefit80.40 1,045$ 1,045$ 100% Normal HOA Cost, but primarily general community benefit80.40 965$ 965$ 100% Normal HOA Cost, but primarily general community benefit80.40 3,216$ 3,216$ 100% Normal HOA Cost, but primarily general community benefit80.40 8,040$ 8,040$ 100% Normal HOA Cost, but primarily general community benefit96,480.00 19,296$ 19,296$ 100% Normal HOA Cost, but primarily general community benefit7,900.00 23,700$ 23,700$ 100% Difference between Project Parks/1,000 and City Parks/1,0007,900.00 1,319$ 1,319$ 100%18.25 185,465$ 185,465$ 100% Difference between Project Parks/1,000 and City Parks/1,000 Not sure what this covers; direct maintenance 18.25 6,570$ 6,570$ 100% Difference between Project Parks/1,000 and City Parks/1,00011.73 41,746$ 41,746$ 100% Difference between Project Parks/1,000 and City Parks/1,000yy@ (of $9.98 CCF 2017 Base Water 1.00 800$ 800$ 100%1.00 400$ 400$ 100%1.00 1,600$ 1,600$ 100%gFT17,200.00 6,235$ 6,235$ 100% Difference between Project Parks/1,000 and City Parks/1,00017,200.00 1,376$ 1,376$ 100% Difference between Project Parks/1,000 and City Parks/1,0009.00 76,034$ 76,034$ 100% Difference between Project Parks/1,000 and City Parks/1,000 Break down by Acre? 9.00 60,000$ 60,000$ 100% Difference between Project Parks/1,000 and City Parks/1,000yequipment/improvements replaced every 15 years 1.00 6,667$ 6,667$ 100% Normal City Responsibility570.00 21,375$ 21,375$ 100% Difference between Project Parks/1,000 and City Parks/1,00018.08 136$ 136$ 100% Normal City Responsibility3,360.00 8,400$ 8,400$ 100% Normal City Responsibility3,360.00 57,120$ 57,120$ 100% Normal City Responsibility64.00 960$ 960$ 100% Normal City Responsibility64.00 768$ 768$ 100% Normal City Responsibility64.00 4,267$ 4,267$ 100% Normal City Responsibility64.00 6,400$ 6,400$ 100% Normal City Responsibility541,800.00 30,929$ 30,929$ 100% Normal City Responsibility Not sure what this covers; R&R covered elsewhere40.00 5,400$ 5,400$ 100% Normal City Responsibility45.00 4,275$ 4,275$ 100% Normal City Responsibility17,305.00 56,248$ 56,248$ 100% Normal City Responsibility17,305.00 60,568$ 60,568$ 100% Normal City Responsibility- -$ -$ 0% Maintained by homeowners - -$ -$ 0% Maintained by homeowners 33,660.00 15,708$ 15,708$ 100% Normal City Responsibility Full replacement ever 70 years 541,800.00 108,360$ 108,360$ 100% Normal City Responsibility total city currently spends on this item) 541,800.00 67,725$ 67,725$ 100% Normal City Responsibility Every 8 years. What is the current city schedule? 193,600.00 48,400$ 48,400$ 100%1,205.00 36,150$ 36,150$ 100% Normal City Responsibility, primarily local benefitSame as Park Tree; BRE is $35 1,103,267$ 1,103,267$ 1,103,267$ 18,096 6,560$ 6,560$ 100% County to Maintain Buckley; Avila to Maintain Class I 18,096 1,810$ 1,810$ 100% County to Maintain Buckley; Avila to Maintain Class I 20 261$ 261$ 100% County to Maintain Buckley; Avila to Maintain Class I Not sure County will want lights/lighting 20 241$ 241$ 100%County to Maintain Buckley; Avila to Maintain Class I Not sure County will want lights/lighting 20 804$ 804$ 100% County to Maintain Buckley; Avila to Maintain Class I Not sure County will want lights/lighting 20 1,508$ 1,508$ 100% County to Maintain Buckley; Avila to Maintain Class I Not sure County will want lights/lighting 18,096 362$ 362$ 100% County to Maintain Buckley; Avila to Maintain Class I - -$ -$ 100% County to Maintain Buckley; Avila to Maintain Class I 720 54,000$ 54,000$ 100% Per ALUC Approval Condition65,546$ 65,546$ 65,546$ CFD AllocationEconomic & Planning Systems, Inc. 9/1/2017P:\161000s\161181AvilaRanch\CFD\Avila Ranch CFD Cost Review 8‐01‐2017.xlsxExhibit 1Packet Pg 44215 Table A-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. 9/1/2017 P:\161000s\161181AvilaRanch\CFD\Avila Ranch CFD Cost Review 8‐01‐2017.xlsx Exhibit 1 Packet Pg 443 15 APPENDIX B: Avila Ranch Infrastructure Cost and Allocation Analysis Exhibit 1 Packet Pg 444 15 Table B-1Summary of Infrastructure FundingType of InfrastructureTotal Project Costs [1] Avila Ranch Pro Rata Share Total Cost of Projects Built by Avila Ranch Additional Mitigation or Impact Fees Being Paid Amount of Potential Private Reimbursement Amount of Potential Impact Fee Credit for Built Projects Final Out of Pocket for Avila Ranch Transportation $37,234,884 $17,622,154 $21,226,500 $5,883,194 ($561,350) ($3,759,000) $22,789,344 Parks $6,645,500 $6,645,500 $6,645,500 $6,645,500 Water and Sewer $427,500 $427,500 $427,500 $427,500 Public Safety$1,346,250 $1,346,250 $1,346,250 $1,346,250 Intract Improvements$20,896,000 $20,896,000 $20,896,000 $20,896,000 Offsite Improvements$552,000 $552,000 $552,000 $552,000 Total Infrastructure Expenses$67,102,134 $47,489,404 $51,093,750 $5,883,194 ($561,350)($3,759,000) $52,656,594 [1] Total Project Infrastructure costs whether Avila Ranch is building or paying fees.Sources: Avila Ranch LLC; City of San Luis Obispo; Economic & Planning Systems, Inc.Economic & Planning Systems, Inc. 9/1/2017P:\161000s\161181AvilaRanch\Capital Costs&Fees\Avila Ranch Infrastructure Cost Analysis_09-01-2017.xlsxExhibit 1Packet Pg 44515 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 County Offsite Improvements related to Buckley Road Intersections (at HWY 227 and Davenport Creek) (T34)$430,000 Payment to County N/A N/A 100% $430,000 No T10 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 T11 Earthwood Collector Suburban to Venture $418,000 Build Phase 1 75.0%$313,500 100% $418,000 No T12 Buckley Road Extension - Vachell to South Higuera $6,000,000 Build Phase 2 25.0%$1,500,000 100% $6,000,000 No T13 Suburban Widening E/O Earthwood $450,000 Build Phase 4 34.7%$156,150 100% $450,000 Yes $293,850 T14 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 T15 South Higuera/Vachell Lane $150,000 Build Phase 2 50.0%$75,000 100% $150,000 Yes $75,000 T16 Tank Farm/Higuera SB Dual LT $470,000 Build Phase 1 13.4%$62,980 100% $470,000 No $0 T17 Tank Farm Creek Bike Path $860,000 Build Phase 1,2,3 75.0%$645,000 100% $860,000 No T18 Tank farm Creek Bikepath - Chevron s/o TFR $934,000 Build phase 4 if ROW 100.0%$934,000 100% $934,000 No T19 Tank Farm/Higuera WB Dual RT $670,000 Build Phase 4 13.4%$89,780 100% $670,000 No $0 T20 Buckley Extension Bike Path $500,000 Build Phase 2 25.0%$125,000 100% $500,000 No T21 US 101/LOVR Interchange - Install SB Ramp Metering $250,000 Build Phase 1 100.0% $250,000 100% $250,000 No $0 T22 South Higuera/South Street NB RT Lane $370,000 Build Phase 1 30.8%$113,960 100% $370,000 Yes 1 $0 T23 South Higuera Sidewalk - Vachell to LOVR $125,000 Build Phase 1 100.0% $125,000 100% $125,000 No T24 South Higuera Sidewalk - City Limit to LOVR $80,000 Build Phase 2 24.3%$19,440 100% $80,000 No Subtotal:$21,226,500 $11,723,810 $21,226,500 $561,350 T25 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 T26 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 T27 Horizon Lane S/O Tank Farm to Suburban $594,000 Pay Impact Fees 25.0%$148,500 0%$0 No T28 Prado/Higuera NB Dual LT $750,000 Pay Impact Fees 8.5%$63,750 0%$0 No T29 Prado/Higuera Cumulative Improvements (Dual LT, RT, 2 Thru) $2,000,000 Pay Impact Fees 0.0%$0 0%$0 No T30 AASP Impact Fees (Remaining to be paid - reduced for potential AASP Credit shown above)$0 Pay Impact Fees $0 100%$0 No T31 LOVR/Higuera Intersection Improvements $2,540,000 Pay MIT Fees 25.4%$645,160 25.4% $645,160 No T32 Bob Jones Trail Bike Path $1,250,000 Pay MIT Fees 5.8%$72,500 5.8% $72,500 No T33 Buckley/Vachell Intersection $650,000 Pay MIT Fees 16.5%$107,250 16.5% $107,250 No T34 Buckley/HWY 227 Intersection $2,700,000 Pay MIT Fees 2.7%$72,900 10.0% $270,000 No T35 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:$37,234,884 $17,622,154 $27,109,694 $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:$67,102,134 $47,489,404 $56,976,944 $561,350 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) Allocation to Avila Ranch Developer Equity Projects to be Built by Avila RanchAvila Ranch Pay Impact Fees/Mitigation FeeOther Costs Economic & Planning Systems, Inc. 9/1/2017 P:\161000s\161181AvilaRanch\Capital Costs&Fees\Avila Ranch Infrastructure Cost Analysis_09-01-2017.xlsx Exhibit 1 Packet Pg 446 15 Table B-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 County Offsite Improvements related to Buckley Road Intersections (at HWY 227 and Davenport Creek) (T34)$430,000 T10 Vachell Lane Widening, LTL @ Venture, misc sidewalks and Class II Bike Lanes $650,000 T11 Earthwood Collector Suburban to Venture $418,000 T12 Buckley Road Extension - Vachell to South Higuera $6,000,000 T13 Suburban Widening E/O Earthwood $450,000 T14 Horizon Collector South of Suburban to Avila Ranch w/ROW $770,000 T15 South Higuera/Vachell Lane $150,000 T16 Tank Farm/Higuera SB Dual LT $470,000 T17 Tank Farm Creek Bike Path $860,000 T18 Tank farm Creek Bikepath - Chevron s/o TFR $934,000 T19 Tank Farm/Higuera WB Dual RT $670,000 T20 Buckley Extension Bike Path $500,000 T21 US 101/LOVR Interchange - Install SB Ramp Metering $250,000 T22 South Higuera/South Street NB RT Lane $370,000 T23 South Higuera Sidewalk - Vachell to LOVR $125,000 T24 South Higuera Sidewalk - City Limit to LOVR $80,000 Subtotal:$21,226,500 T25 LOVR Interchange (Impact Fees remaining after crediting from above)$3,172,464 T26 Citywide TIF Impact Fees (Remaining to be paid - reduced for potential TIF Credit shown above) $ 1,501,920 T27 Horizon Lane S/O Tank Farm to Suburban $594,000 T28 Prado/Higuera NB Dual LT $750,000 T29 Prado/Higuera Cumulative Improvements (Dual LT, RT, 2 Thru) $2,000,000 T30 AASP Impact Fees (Remaining to be paid - reduced for potential AASP Credit shown above)$0 T31 LOVR/Higuera Intersection Improvements $2,540,000 T32 Bob Jones Trail Bike Path $1,250,000 T33 Buckley/Vachell Intersection $650,000 T34 Buckley/HWY 227 Intersection $2,700,000 T35 Tank Farm/Higuera NB RT extension $850,000 Subtotal:$16,008,384 Total All Transportation:$37,234,884 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:$67,102,134 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 $430,000 $430,000 $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 $16,906,150 $2,078,500 $5,344,000 $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 $22,789,344 $2,693,750 $5,614,000 $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 $52,656,594 $2,693,750 $5,614,000 Amount Subject to Fee Credit Fee Credit and Reimbursement Agreement Status Economic & Planning Systems, Inc. 9/1/2017 P:\161000s\161181AvilaRanch\Capital Costs&Fees\Avila Ranch Infrastructure Cost Analysis_09-01-2017.xlsx Exhibit 1 Packet Pg 447 15 Exhibit D Phasing Plan Exhibit 1 Packet Pg 448 15 AVILA RANCH DEVELOPMENT PLANMay 2, 2017#1011023A24Phasing PlanPhase 3Phase 4Phase 1Phase 6Phase 5Phase 20 75 150300SCALE: 1”=150’ (24”x36” sheet)Ph 6Exhibit 1Packet Pg 44915 Exhibit E-1 Backbone Water Infrastructure Exhibit 1 Packet Pg 450 15 AVILA RANCH DEVELOPMENT PLANMay 2, 2017#1011023A25Recycled Water: ProposedDomestic Water: ProposedUTILITIES LEGENDWater Supply PlanExhibit 1Packet Pg 45115 Exhibit E-2 Backbone Wastewater Infrastructure Exhibit 1 Packet Pg 452 15 AVILA RANCH DEVELOPMENT PLANMay 2, 2017#1011023A26Wastewater PlanPump Station Force Main Gravity SewerTO TANK FARM LIFT STATIONExhibit 1Packet Pg 45315 Exhibit E-3 Backbone Recycled Water Infrastructure Exhibit 1 Packet Pg 454 15 AVILA RANCH DEVELOPMENT PLANMay 2, 2017#1011023A25Recycled Water: ProposedDomestic Water: ProposedUTILITIES LEGENDWater Supply PlanExhibit 1Packet Pg 45515 Exhibit E-4 Backbone Drainage Infrastructure Exhibit 1 Packet Pg 456 15 AVILA RANCH DEVELOPMENT PLANMay 2, 2017#1011023A27Storm DrainsOutfallsBasinSwaleStorm DrainageExhibit 1Packet Pg 45715 Exhibit F Figure 5 of Conservation & Open Space Element Exhibit 1 Packet Pg 458 15 Conservation and Open Space Element FOOTHILLSANTA ROSATANK FARMLOS O S O S V AL L E Y MADONNASOUTHBROA D CALI F O R NI A HIGUERAFigure 5:Greenbelt Boundaries01230.5MilesCity LimitGreenbelt BoundaryPrevious Greenbelt Boundary Exhibit 1 Packet Pg 45915 Exhibit G Affordable/Workforce Housing Plan Exhibit 1 Packet Pg 460 15 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. Exhibit 1 Packet Pg 461 15 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. Exhibit 1 Packet Pg 462 15 • 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 1.2 acre portion of R-4 project will be dedicated to an afford- able housing provider (Lot 300 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. The lot shall include 24 lower income units. 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 on the lot 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 site to be dedicated is adequate to meet the affordable housing requirement, plus addi- tional potential units. 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 development 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 completed. 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) Moderate Income 2-bedroom/1-bath units will be provided on Lot 301, a market rate apartment development. • 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). Exhibit 1 Packet Pg 463 15 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. Exhibit 1 Packet Pg 464 15 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. Exhibit 1 Packet Pg 465 15 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 Exhibit 1 Packet Pg 466 15 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. Exhibit 1 Packet Pg 467 15 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. Exhibit 1 Packet Pg 468 15 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- Exhibit 1 Packet Pg 469 15 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 sal e 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 Exhibit 1 Packet Pg 470 15 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 Exhibit 1 Packet Pg 471 15 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. Exhibit 1 Packet Pg 472 15 Exhibit 1 Exhibit 1 Packet Pg 473 15 Exhibit H Water Improvements Exhibit 1 Packet Pg 474 15 AVILA RANCH DEVELOPMENT PLANMay 2, 2017#1011023A25Recycled Water: ProposedDomestic Water: ProposedUTILITIES LEGENDWater Supply PlanExhibit 1Packet Pg 47515 Exhibit I Water Well Site Plan Exhibit 1 Packet Pg 476 15 AVILA RANCH DEVELOPMENT PLANMay 2, 2017#1011023A3Composite Site Plan0 75 150300SCALE: 1”=150’ (24”x36” sheet)REFER TO A6 FORADDITIONAL DETAILREFER TO A9 FORADDITIONAL DETAILREFER TO A8 FORADDITIONAL DETAILREFER TO A7 FORADDITIONAL DETAILREFER TO A5 FORADDITIONAL DETAILREFER TO A4 FORADDITIONAL DETAILExhibit 1Packet Pg 47715 Exhibit J Bicycle and Multimodal Improvements Exhibit 1 Packet Pg 478 15 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- Exhibit 1 Packet Pg 479 15 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. Exhibit 1 Packet Pg 480 15 Exhibit 1 Packet Pg 48115 Exhibit 1 Packet Pg 48215 R - RESOLUTION NO. _____ (2017 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH AVILA RANCH COMMUNITY FACILITIES DISTRICT NO. 2017-1 (SERVICES) PURSUANT TO THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 AND TO LEVY A SPECIAL TAX IN CONNECTION THEREWITH WHEREAS, the development of the territory commonly known as Avila Ranch will necessitate the provision of additional City facilities and services; and WHEREAS, the Mello-Roos Community Facilities Act of 1982 (Section 53311 et. seq. of the California Government Code) (the “Act”) authorizes the City to establish a community facilities district to finance such facilities and services; and WHEREAS, pursuant to its own initiative and as authorized by Section 53318 of the Act, the City Council desires to institute proceedings to establish a community facilities district to finance such facilities and services and to levy a special tax for that purpose against parcels located in Avila Ranch. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. The recitals stated above are true and correct. SECTION 2. The City Council proposes to establish a community facilities district under the terms of the Act designated as the Avila Ranch Community Facilities District No. 2017-1 (Services) (the “District”). SECTION 3. The boundaries of the territory proposed for inclusion in the District are shown on the map that is on file in the office of the City Clerk. SECTION 4. The facilities and services proposed to be financed by the District are described in Exhibit 2 to this Resolution, attached hereto and incorporated herein by reference (the “Facilities and Services”). SECTION 5. Except where funds are otherwise available, a special tax sufficient to pay for all the Facilities and Services, along with the incidental expenses for the Facilities and Services described in Exhibit B, will be annually levied within the District (the “Special Tax”). The Special Tax will be secured by recordation of a continuing lien against all nonexempt real property in the District. The rate, method of apportionment, and manner of collection of the Special Tax are described in Exhibit A to this resolution, attached hereto and incorporated herein by reference (the “Rate and Method of Apportionment”). The Rate and Method of Packet Pg 483 15 Resolution No. _______ (2017 Series) Page 2 R - Apportionment contains sufficient detail to allow each landowner or resident within the District to estimate the maximum Special Tax that he or she will be required to pay. SECTION 6. The Special Tax will be levied annually, for an indefinite period with no expiration or sunset. Notwithstanding the foregoing, no Special Tax to pay for public facilities will be levied against any parcel after Fiscal Year 2035-2036. For the purposes of this Section, “public facilities” does not include services described in section 53313 of the Act. SECTION 7. Under no circumstances may the Special tax on a residential parcel in the District be increased in any fiscal year as a consequence of delinquency or default in payment of the Special Tax levied on another parcel or parcels by more than ten percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquency or default. SECTION 8. The Special Tax, if levied, will be subject to the following accountability measures: a) Proceeds of the Special Tax will be deposited in a special account (the “Special Account”) and used only for the purpose of financing the Facilities and Services and incidental expenses relating to the Facilities and Services; and b) An annual report will be filed by the Finance Officer of the City at least once a year including a description of the amount of funds and the status of any project included in the Facilities and Services. The provisions of this section are a limitation on the expenditure of Special Tax proceeds. The City does not, solely by virtue of this section or this resolution, or solely by virtue of the levy or collection of the Special Tax, assume any obligation to provide any particular service or to purchase, construct, expand, improve, or rehabilitate any property of any particular kind. SECTION 9. A public hearing (“Hearing”) will be held on September 19, 2017 at 4:00 PM, or as soon thereafter as practicable, in the City Council Chambers at 990 Palm Street, San Luis Obispo, CA on the establishment of the District. At the Hearing, protests against the establishment of the District, the extent of the District, or the furnishing of specified types of public facilities or services within the District may be made in writing by any interested person or taxpayer. SECTION 10. Concurrently with, or subsequently to, the establishment of the District, the City Council may submit the levy of the Special Tax to the qualified electors of the District. The election will be conducted by the City Clerk, as elections official. The vote will be by the landowners of the District, and each landowner of the District who is the owner of record at the close of the election, or is the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that he or she owns within the District. The number of votes to be voted by a particular landowner will be specified on the ballot provided to that landowner. The election will be conducted by mail ballot. Packet Pg 484 15 Resolution No. _______ (2017 Series) Page 3 R - SECTION 11. The City Council directs the City Manager to file a report with the City Council at or before the time of the Hearing containing: (i) a brief description of the public facilities and services which will, in his or her opinion, be required to adequately meet the needs of the District; (ii) his or her estimate of the cost of providing those public facilities and services ; and (iii) his or her estimate of the fair and reasonable cost of the incidental expenses for Facilities and Services described in Exhibit 2. SECTION 12. If any section, subsection, sentence, clause, phrase or portion of this resolution is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, such decision shall not affect the validity of the remainder of the resolution. The City Council hereby declares that it would have adopted this resolution, and each section, subsection, sentence, clause, phrase or portion hereof, irrespective of that fact that any one or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional. SECTION 13. The City Clerk is directed to give notice of the Hearing as required by law. The notice shall be substantially in the form specified in section 53322 of the Act. SECTION 14. The City Clerk shall certify to the adoption of this Resolution. Upon motion made by Council Member ________ and seconded by Council Member _______ and the following roll call vote: AYES: NOS: ABSENT: The foregoing Resolution was passed and adopted on ______day of _____________, 2017. _________________________________ Heidi Harmon Mayor ATTEST: _________________________ Carrie Gallagher City Clerk APPROVED AS TO FORM J. Christine Dietrick City Attorney Packet Pg 485 15 Resolution No. _______ (2017 Series) Page 4 R - 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 ________, 2017. _________________________________ Carrie Gallagher City Clerk Packet Pg 486 15 Exhibit A Rate and Method of Apportionment Packet Pg 487 15 Economic & Planning Systems, Inc. (EPS) A-1 P:\162000\161181 Avila Ranch CFD Tecgnical Support\Rate and Method\161181 rm03.docx EXHIBIT A City of San Luis Obispo Avila Ranch Community Facilities District No. 2017-1 (Services) San Luis Obispo County, California AMENDED RATE, METHOD OF APPORTIONMENT, AND MANNER OF COLLECTION OF SPECIAL TAX 1. Basis of Special Tax Levy A Special Tax authorized under the Mello-Roos Community Facilities Act of 1982 (Act) applicable to the land in the Avila Ranch Community Facilities District No. 2017-1 (Services) (CFD) of the City of San Luis Obispo (City) shall be levied and collected according to the tax liability determined by the City through the application of the appropriate amount or rate, as described below. 2. Definitions “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, Sections 53311 and following of the California Government Code. “Administrative Expenses” means the actual or estimated costs incurred by the City to form the CFD and to determine, levy, and collect the Special Taxes, including compensation of City employees for administrative work performed in relation to the CFD, the fees of consultants and legal counsel, the costs of collecting installments of the Special Taxes on the general tax rolls, preparation of required reports, and any other costs required to administer the CFD as determined by the City. “Administrator” means the City Manager of the City, or his or her designee. “Affordable Unit” means a Unit built on a Parcel or Single-Family Parcel for which an Affordable Housing Agreement has been entered into for the property designating the Unit as affordable. The City Manager, or their designee, shall determine which Units are designated as Affordable Units and maintain an Affordable Unit Listing, which shall contain all designated buildable Parcels by tract and lot number, and in the case of Large Lots Parcels remaining before May 1 of the preceding Fiscal Year, the number of designated Affordable Units for each such Large Lot Parcel; all entries shall indicate the effective date of designation. The Affordable Unit Listing also shall be updated to reflect those Units no longer qualifying as Affordable Units, also known as Market- Rate Units. The Affordable Unit Listing, which shall contain all qualifying Affordable Units as of April 30, shall be made available to the Administrator by July 1 of each year for purposes of determining the Maximum Special Tax for Parcels pursuant to Section 4. Packet Pg 488 15 Avila Ranch CFD No. 2017-1 (Services) Amended Rate, Method of Apportionment, and Manner of Collection of Special Tax August 30, 2017 Economic & Planning Systems, Inc. (EPS) A-2 P:\162000\161181 Avila Ranch CFD Tecgnical Support\Rate and Method\161181 rm03.docx “Annual Infrastructure Costs” means, for each Fiscal Year, the total cost of (1) Authorized Facilities and (2) any amounts needed to cure actual or estimated delinquencies in Special Taxes for the current or previous Fiscal Year. “Annual Services Costs” means for each Fiscal Year, the total cost of (1) Authorized Services, (2) Administrative Expenses, and (3) any amounts needed to cure actual or estimated delinquencies in Special Taxes for the current or previous Fiscal Year. “Assessor’s Parcel Map” means an official map of the County Assessor designating parcels by Assessor’s Parcel Number. “Assessor's Parcel Number” means the Parcel and Parcel Number as recorded by the County Assessor on the equalized tax roll. “Authorized Facilities” means those facilities, as listed in the resolution forming the CFD. “Authorized Services” means those services, as listed in the resolution forming the CFD. “Base Year” means the Fiscal Year beginning July 1, 2018, and ending June 30, 2019. “Building Permit” means a permit issued by the City for the construction of a Residential Use structure. “Building Square Foot(age)” has the same meaning as that defined for the School Mitigation Fee by California Government Code Section 65995 for “Assessable Space,” which is “all of the square footage within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, detached accessory structure, or similar area” as determined upon issuance of the initial Building Permit. “CFD” means the Avila Ranch Community Facilities District No. 2017-1 (Services) of the City of San Luis Obispo, San Luis Obispo County, California. “City” means the City of San Luis Obispo in San Luis Obispo County, California. “Council” means the City Council of the City acting for the CFD under the Act. “County” means the County of San Luis Obispo, California. “County Assessor’s Parcel” means a lot or Parcel with an assigned Assessor’s Parcel Number in the maps used by the County Assessor in the preparation of the tax roll. “Developed Parcel” means any Taxable Parcel with a Building Permit issued for Residential Uses. “Development Plan” means a condominium plan, apartment plan, site plan, or other development plan that identifies such information as the type of structure, acreage, square footage, or number of Units that are approved to be developed on Single-Family Parcels and Multifamily Residential Use Parcels. “Final Map Parcel” means a Parcel designated for development of a single-family residence, which is part of a Final Subdivision Map. Packet Pg 489 15 Avila Ranch CFD No. 2017-1 (Services) Amended Rate, Method of Apportionment, and Manner of Collection of Special Tax August 30, 2017 Economic & Planning Systems, Inc. (EPS) A-3 P:\162000\161181 Avila Ranch CFD Tecgnical Support\Rate and Method\161181 rm03.docx “Final Subdivision Map” means a recorded map designating the final Parcel Subdivision for individual Single-Family Parcels. “Fiscal Year” means the period starting July 1 and ending the following June 30. “Infrastructure Special Tax” means the Special Tax identified in Attachment 1 for each Land Use Category identified to fund the costs of Authorized Facilities. The Infrastructure Special Tax is increased by the Infrastructure Special Tax Escalation Factor in each Fiscal Year following the Base Year. “Infrastructure Special Tax Escalation Factor” means a factor of 2 percent in any Fiscal Year following the Base Year by which the Special Tax for the previous Fiscal Year will be increased for the current Fiscal Year. “Land Use Category” means the categories of taxable land uses shown in Attachment 1. “Large Lot Parcel” means a Parcel created by a Large Lot Subdivision Map. “Large Lot Subdivision Map” means a recorded subdivision map creating Parcels by land use. However, the Large Lot Subdivision Map does not delineate Single-Family Parcels. A Final Subdivision Map will create individual Single-Family Parcels. “Market-Rate Unit” means a Unit that is not an Affordable Unit. “Maximum Annual Special Tax” means the greatest amount of Special Tax that can be levied against a Parcel in a given Fiscal Year. The Maximum Annual Special Tax is the sum of the Fiscal Services Special Tax and Infrastructure Special Tax assigned to each Taxable Parcel. “Maximum Annual Special Tax Revenue” means the greatest amount of revenue that can be collected in total from a group of Parcels (such as Developed Parcels) by levying the Special Tax. “Multifamily” or “Multifamily Residential Use” means any Parcel or Development Project designated or developed for more than one residential dwelling Unit per Parcel. Such uses may consist of apartments, condominiums, townhomes, time-share units, row houses, duplexes, or triplexes. “Municipal Costs Index” means the index published by American City & County. “Other Land Uses” means Parcels with land uses other than Residential Uses. Such Parcels are Tax-Exempt Parcels. “Parcel” means any County Assessor’s Parcel in the CFD based on the equalized tax rolls of the County. “Public Parcel” means any Parcel that is or is intended to be publicly owned, as designated in any final map that is normally exempt from the levy of general ad valorem property taxes under California law, including public streets, schools, parks, public drainageways, landscaping, wetlands, greenbelts, and open space. “Remainder Parcel” means a Parcel that is created as the result of the recordation of a Large Lot Parcel Map or Final Small Lot Subdivision Map, which results in a Parcel within the boundaries of a Large Lot Parcel that has not been mapped for final development approval. Such a Packet Pg 490 15 Avila Ranch CFD No. 2017-1 (Services) Amended Rate, Method of Apportionment, and Manner of Collection of Special Tax August 30, 2017 Economic & Planning Systems, Inc. (EPS) A-4 P:\162000\161181 Avila Ranch CFD Tecgnical Support\Rate and Method\161181 rm03.docx Remainder Parcel may contain taxable and tax-exempt uses, such as Residential Uses, and Public Parcels, such as school or park sites. Once designated as a Remainder Parcel, such Parcel will be considered a Large Lot Parcel for the purposes of future Subdivisions and for the provisions of Sections 4 through 6. “Residential Use” means a Parcel designated for residential use, such as single-family residential units, residential condominiums, townhouses, Multifamily Residential Uses, or apartments. “RMA” means the Rate, Method of Apportionment, and Manner of Collection of Special Tax. “Services Special Tax” means the Special Tax identified in Attachment 1 for each Land Use Category identified to fund the costs of Authorized Services. The Services Special Tax is increased by the Services Special Tax Escalation Factor in each Fiscal Year following the Base Year. “Services Special Tax Escalation Factor” means an annual percentage increase in the Fiscal Mitigation Special Tax and Local Area Special Tax based on the Consumer Price Index (CPI) (prior calendar year annual average, San Francisco, All Urban Consumers [CPI-U] Index), the CPI (prior calendar year annual average, Pacific West Cities, All Urban Wage Earners and Clerical Workers), or the Municipal Cost Index annual average, whichever is greater, but not exceeding 4 percent. “Single-Family Parcel” means, in any Fiscal Year, all Parcels in the CFD for which a building permit was issued or may be issued for construction of a Unit that is a single-family residential, residential condominium, or townhouse Unit. “Special Tax(es)” mean(s) any tax levy under the Act in the CFD. “Subdivision” or “Subdivided” means a division of a Parcel into two or more Parcels through the Subdivision Map Act process. A Subdivision also may include the merging of two or more Parcels to create new Parcels. “Tax Collection Schedule” means the document prepared by the Administrator for the County Auditor-Controller to use in levying and collecting the Special Taxes each Fiscal Year. “Taxable Parcel” means any Parcel that is not a Tax-Exempt Parcel. “Tax-Exempt Parcel” means a Parcel not subject to the annual Special Tax. Tax-Exempt Parcels include Public Parcels, Undeveloped Parcels, and Other Use Parcels. Certain privately owned Parcels also may be exempt from the levy of annual Special Taxes, including common areas owned by homeowners’ associations or property owner associations, wetlands, detention basins, water quality ponds, and open space, as determined by the Administrator. “Undeveloped Parcel” means a Parcel that is a Large Lot Parcel or a Remainder Parcel. “Unit” means (1) a Single-Family Parcel dwelling Unit; and means (2) for a Multifamily Residential Use Parcel, an individual residential Unit in an apartment building. Packet Pg 491 15 Avila Ranch CFD No. 2017-1 (Services) Amended Rate, Method of Apportionment, and Manner of Collection of Special Tax August 30, 2017 Economic & Planning Systems, Inc. (EPS) A-5 P:\162000\161181 Avila Ranch CFD Tecgnical Support\Rate and Method\161181 rm03.docx 3. Duration of the Special Tax Parcels in the CFD will remain subject to the Services Special Tax in perpetuity. Parcels in the CFD will be subject to the Infrastructure Special Tax through Fiscal Year 2035-36. If the Special Tax ceases to be levied, the City will direct the County Recorder to record a Notice of Cessation of Special Tax. Such notice will state that the obligation to pay the Special Tax has ceased, and the lien imposed by the Notice of Special Tax Lien is extinguished. The Notice of Cessation of Special Tax, in addition, will identify the book and page of the Book of Maps of Assessment and Community Facilities Districts where the map of the boundaries of the CFD is recorded. 4. Administrative Tasks Administrative tasks required of the Administrator are discussed below: A. Annual Special Tax Escalation. The Administrator shall increase the Fiscal Mitigation Special Tax and Local Area Special Tax by the Services Special Tax Escalation Factor in each Fiscal Year following the Base Year. The Administrator shall increase the Infrastructure Special Tax Escalation Factor in each Fiscal Year following the Base Year. B. Assignment of the Maximum Annual Special Tax to Taxable Parcels. As Taxable Parcels are Subdivided or combined, the Administrator will assign the Maximum Annual Special Tax to each new Taxable Parcel based on the records of the City: 1. Assignment of the Maximum Annual Special Tax to Developed Parcels. The Services Special Tax and Infrastructure Special Tax are assigned to Developed Parcels using the following procedures: a. Identify the Building Square Footage for the Residential Use for the Taxable Parcel, as identified in the Building Permit. b. Identify the Land Use Category for the Taxable Parcel based on the Residential Use type and Building Square Footage in Attachment 1. c. Assign the Services Special Tax for the Taxable Parcel based on the Land Use Category using the criteria identified in Sections 4.B.1.a and 4.B.1.b, and as increased by the Services Special Tax Escalation Factor and Infrastructure Special Tax Escalation Factor. d. Assign the Infrastructure Special Tax for the Taxable Parcel based on the Land Use Category using the criteria identified in Sections 4.B.1.a and 4.B.1.b, and as increased by the Infrastructure Special Tax Escalation Factor. e. Sum the Services Special Tax and Infrastructure Special Tax to determine the Maximum Annual Special Tax for the Taxable Parcel. Packet Pg 492 15 Avila Ranch CFD No. 2017-1 (Services) Amended Rate, Method of Apportionment, and Manner of Collection of Special Tax August 30, 2017 Economic & Planning Systems, Inc. (EPS) A-6 P:\162000\161181 Avila Ranch CFD Tecgnical Support\Rate and Method\161181 rm03.docx 2. Assignment of the Maximum Annual Special Tax to Final Map Parcels. The Services Special Tax and Infrastructure Special Tax are assigned to Final Map Parcels using the following procedures: a. Assign the Services Special Tax for the Final Map Parcel, as shown in Attachment 1, and as increased by the Services Special Tax Escalation Factor. b. Assign the Infrastructure Special Tax for the Final Map Parcel, as shown in Attachment 1, and as increased by the Infrastructure Special Tax Escalation Factor. c. Sum the Services Special Tax and Infrastructure Special Tax to determine the Maximum Annual Special Tax for the Taxable Parcel. 3. Assignment of the Maximum Annual Special Tax to Undeveloped Parcels. Undeveloped Parcels are not subject to the Maximum Annual Special Tax. C. Affordable Units that Become Market-Rate Units. If, in any Fiscal Year, a Unit that previously had been designated as an Affordable Unit no longer qualifies as such, the City shall update the Affordable Unit Listing by denoting the change in status of the Unit, together with the effective date thereof. The Maximum Annual Special Tax on the Unit that no longer qualifies as an Affordable Unit shall be increased to double the amount that would have applied in that Fiscal Year if the Unit had remained as an Affordable Unit. In subsequent Fiscal Years, this increased Maximum Annual Special Tax shall continue to escalate by the Tax Escalation Factor. D. Conversion of a Tax-Exempt Parcel to a Taxable Parcel. If a Tax-Exempt Parcel is not needed for public use and is converted to a taxable use or transferred to a private owner, it shall become subject to the Special Tax. The Maximum Annual Special Tax for such a Parcel will be assigned according to the provisions of Sections 4.A and 4.B. E. Taxable Parcel Acquired by a Public Agency. A Taxable Parcel acquired by a public agency shall be reclassified as a Tax-Exempt Parcel and is no longer subject to the Special Tax levy. F. Maintenance of Parcel Records. The Administrator will maintain a development status for each Parcel in the CFD as Parcels are Subdivided and developed. The record will contain the Assessor’s Parcel Number, Land Use Category, number of Units per Taxable Parcel, the Fiscal Mitigation Special Tax, Local Area Special Tax, Infrastructure Special Tax, and Maximum Annual Special Tax for each Taxable Parcel. 5. Assignment of the Maximum Annual Special Tax A. Classification of Parcels. By June 30 of each Fiscal Year, using the Definitions in Section 2, the Administrator shall cause: 1. Each Parcel to be classified as a Taxable Parcel or a Tax-Exempt Parcel. 2. Each Parcel to be classified as a Developed Parcel, Final Map Parcel, or an Undeveloped Parcel. Packet Pg 493 15 Avila Ranch CFD No. 2017-1 (Services) Amended Rate, Method of Apportionment, and Manner of Collection of Special Tax August 30, 2017 Economic & Planning Systems, Inc. (EPS) A-7 P:\162000\161181 Avila Ranch CFD Tecgnical Support\Rate and Method\161181 rm03.docx B. Assignment of the Maximum Annual Special Tax to Taxable Parcels. The Maximum Annual Special Tax will be assigned to each Taxable Parcel each Fiscal Year using the procedures (not all steps may be applicable for each such Parcel) in Section 4. 6. Calculating Annual Special Taxes The Administrator will compute the Annual Costs and determine the annual Special Tax levy for each Taxable Parcel based on the assignment of the Special Tax in Section 5. The Administrator then will determine the tax levy for each Taxable Parcel using the following process: A. Compute the Annual Services Costs using the definition of Annual Services Costs in Section 2. B. Calculate the Services Special Tax levy for each Taxable Parcel by the following steps: Step 1: Compute 100 percent of the Services Special Tax revenue for all Developed Parcels. Step 2: Compare the Annual Services Costs with the amount calculated in the previous step. Step 3: If the Annual Services Costs are lower than the amount calculated in Step 1, decrease proportionately the Services Special Tax levy for each Developed Parcel until the revenue from the Special Tax levy equals the Annual Services Costs. Step 4: If the Annual Services Costs are greater than the amount calculated in Step 1, increase proportionately the Services Special Tax levy for each Final Map Parcel until the revenue from the Special Tax levy equals the Annual Services Costs, or 100 percent of the Services Special Tax for all Final Map Parcels, if needed to fund Annual Services Costs. C. Compute the Annual Infrastructure Costs using the definition of Annual Infrastructure Costs in Section 2. D. Calculate the Infrastructure Special Tax levy for each Taxable Parcel by the following steps: Step 1: Compute 100 percent of the Infrastructure Special Tax revenue for all Developed Parcels. Step 2: Compare the Annual Infrastructure Costs with the amount calculated in the previous step. Step 3: If the Annual Infrastructure Costs are lower than the amount calculated in Step 1, decrease proportionately the Infrastructure Special Tax levy for each Developed Parcel until the revenue from the Special Tax levy equals the Annual Infrastructure Costs. Step 4: If the Annual Infrastructure Costs are greater than the amount calculated in Step 1, increase proportionately the Infrastructure Special Tax levy for each Final Map Parcel until the revenue from the Special Tax levy equals the Annual Services Costs, or 100 percent of the Services Special Tax for all Final Map Parcels, if needed to fund Annual Infrastructure Costs. Packet Pg 494 15 Avila Ranch CFD No. 2017-1 (Services) Amended Rate, Method of Apportionment, and Manner of Collection of Special Tax August 30, 2017 Economic & Planning Systems, Inc. (EPS) A-8 P:\162000\161181 Avila Ranch CFD Tecgnical Support\Rate and Method\161181 rm03.docx E. Sum the amount determined in Sections 6.B and 6.D above. F. Levy on each Taxable Parcel the amount calculated in Section 6.E above. G. Prepare the Tax Collection Schedule and, unless an alternative method of collection has been selected pursuant to Section 9, send it to the County Auditor requesting that it be placed on the general, secured property tax roll for the Fiscal Year. The Tax Collection Schedule will not be sent later than the date required by the Auditor for such inclusion. The Administrator will make every effort to correctly calculate the Special Tax for each Parcel. It will be the burden of the taxpayer to correct any errors in the determination of the Parcels subject to the tax and their Special Tax assignments. 7. Interpretation, Application and Appeal of Special Tax Formula and Procedures Any taxpayer who feels the amount of the Special Tax assigned to a Parcel is in error may file a notice with the Administrator appealing the levy of the Special Tax. The Administrator then will promptly review the appeal and, if necessary, meet with the applicant. If the Administrator verifies the tax should be modified or changed, the Special Tax levy will be corrected and, if applicable in any case, a refund will be granted. Interpretations may be made by Resolution of the Council for purposes of clarifying any vagueness or ambiguity as it relates to the Special Tax rate, the method of apportionment, the classification of properties, or any definition applicable to the CFD. Without Council approval, the Administrator may make minor, non-substantive administrative and technical changes to the provisions of this Exhibit that do not materially affect the rate, method of apportionment, and manner of collection of the Special Tax for purposes of the administrative efficiency or convenience or to comply with new applicable federal, state, or local law. 8. Prepayment of the Special Tax Obligation The Special Tax for a Taxable Parcel may not be prepaid. The Special Tax is collected to fund Authorized Services in perpetuity, or until the Council determines the Special Tax no longer should be collected. 9. Manner of Collection The Special Tax will be collected in the same manner and at the same time as ad valorem property taxes, provided, however, that the Administrator or their designee may bill the Special Tax directly and may collect the Special Tax at a different time, such as on a monthly or other periodic basis, or in a different manner, if necessary, to meet the City’s financial obligations. Packet Pg 495 15 Avila Ranch CFD No. 2017-1 (Services) Amended Rate, Method of Apportionment, and Manner of Collection of Special Tax August 30, 2017 Economic & Planning Systems, Inc. (EPS) A-9 P:\162000\161181 Avila Ranch CFD Tecgnical Support\Rate and Method\161181 rm03.docx Attachment 1 Avila Ranch CFD No. 2017-1 (Services) Maximum Annual Special Tax - Base Year of FY 2018-19 No. of Services Infrastructure Maximum Annual Land Use Category Units Special Tax Special Tax Special Tax [1] [2] [3] [4] Single Family Residential - ≥ 1,500 Sq. Ft. 322 $2,749.80 $300.00 $3,049.80 Single Family Residential - <1,500 Sq. Ft. 76 $1,832.86 $200.00 $2,032.86 Multifamily Residential - ≥ 1,500 Sq. Ft. 38 $2,749.80 $300.00 $3,049.80 Multifamily Residential - < 1,500 Sq. Ft. 252 $1,832.86 $200.00 $2,032.86 Affordable Multifamily Residential 32 $916.43 $100.00 $1,016.43 Undeveloped Parcels [5] Other Land Uses $0.00 $0.00 $0.00 Public and Deed Restricted Land $0.00 $0.00 $0.00 "att1" [1] This Special Tax rate will be increased by the Services Special Tax Escalator in each Fiscal Year following the Base Year of FY 2018-19. [2] This Special Tax rate will be increased by the Infrastructure Special Tax Escalator in each Fiscal Year following the Base Year of FY 2018-19. [3] This Special Tax may be collected in each Fiscal Year through FY 2035-36. This Special Tax will no longer be collected following FY 2035-36. [4] Beginning with FY 2035-39, the Maximum Annual Special Tax will be equal to the Services Special Tax as the Infrastructure Special Tax will no longer be collected beyond FY 2035-36.. [5] Undeveloped Parcels are Final Map Parcels without a Building Permit. Packet Pg 496 15 Exhibit B Facilities and Services Packet Pg 497 15 1F:\Active Projects\162000\161181 Avila Ranch CFD Tecgnical Support\Rate and Method\161181 list of services.docx Exhibit B Avila Ranch CFD No. 2017-1 (Services) List of Authorized Services The authorized services to be funded from the levy and collection of annual special taxes include those set forth below in addition to the costs associated with collecting and administering the special taxes, annually administering the District, and costs associated with forming the District. The authorized services to be funded include: 1. Maintenance and lighting of parks, parkways, streets, roads, and open space. 2. Flood and storm protection services, including, but not limited to, the operation and maintenance of storm drainage systems. 3. Police protection services, including, but not limited to, criminal justice services. However, criminal justice services shall be limited to providing services for jails, detention facilities, and juvenile halls. 4. Fire protection and suppression services, and ambulance and paramedic services. 5. Maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the local agency or by another local agency pursuant to an agreement entered into under Section 53316.2. List of Authorized Facilities The authorized facilities to be funded from the levy and collection of annual special taxes include those set forth below. The authorized services to be funded include: 1. Local park, recreation, parkway, and open-space facilities. 2. The district may also finance the construction or undergrounding of water transmission and distribution facilities, natural gas pipeline facilities, telephone lines, facilities for the transmission or distribution of electrical energy, and cable television lines to provide access to those services to customers who do not have access to those services or to mitigate existing visual blight. 3. The district may also finance the acquisition, improvement, rehabilitation, or maintenance of any real or other tangible property, whether privately or publicly owned, for flood and storm protection services, including, but not limited to, storm drainage and treatment systems and sandstorm protection systems. 4. A community facilities district may also finance the purchase, construction, expansion, improvement, or rehabilitation of any real or other tangible property with an estimated useful life of five years or longer or may finance planning and design work that is directly related to the purchase, construction, expansion, or rehabilitation of any real or tangible property. The facilities need not be physically located within the district. Packet Pg 498 15 Exhibit C CFD Boundary Map Packet Pg 499 15 Exhibit  C.    CFD  Boundaries     Packet Pg 500 15 Advisory Body Review Summary and Project Responses 1. Previous Planning Commission Review The Planning Commission has previously considered the project on nine occasions, once to conduct a public scoping meeting for the EIR, twice to review a preliminary version of the Development Plan, twice during the Draft EIR public review period, and four times to consider the project now before the City Council. On August 9, 2017, the Planning Commission recommended that the City Council certify the Final EIR and approve all project entitlements, included the Vesting Tentative Tract Map as conditioned. These meetings, hearings, and workshops are summarized below: Planning Commission • August 26, 2015. The Planning Commission held a public scoping meeting to take input on the scope of the Draft EIR to be prepared for the project. • February 24, 2016. The Planning Commission received a presentation regarding an overview of the Development Plan, and provided conceptual input to the applicant regarding a portion of the Plan, focusing on land use, airport safety, agricultural buffers, and design. No formal action was taken at that time. • March 9, 2016. The Planning Commission continued reviewing the Development Plan, providing conceptual input to the applicant regarding the remaining portions of the plan, focusing on circulation and infrastructure issues. No formal action was taken at that time. • December 14, 2016. The Planning Commission held a public hearing on the Draft EIR, taking public testimony on the document, and providing input for consideration in the Final EIR. • January 11, 2017. The Planning Commission held a public hearing on the Draft EIR, taking public testimony on the document, and providing input for consideration in the Final EIR. • June 28, 2017. The Planning Commission held a public hearing considering potential project approval, taking public input and providing input to staff and the applicant, continuing the hearing to June 29. • June 29, 2017. The Planning Commission completed its review of June 28, providing additional input on the project. • July 12, 2017. The Planning Commission completed its review, providing additional input on the project. • August 9, 2017. The Planning Commission recommended project approval to the City Council. Packet Pg 501 15 2. Previous Advisory Body Review The project had been considered before various City advisory bodies to review specific aspects of the proposed project that relate to their purview. The following summarizes the different advisory bodies that have considered the project, when these reviews occurred, as well as the purpose and outcome of these meetings: Bicycle Advisory Committee (BAC) • September 17, 2015. The BAC reviewed a preliminary version of the Development Plan, and provided comments on the bicycle planning provisions included in the document. • November 19, 2015. The BAC provided comments on the updated bicycle planning aspects of the Development Plan that responded to previous input received in September 2015. The BAC conceptually concurred with the Development Plan as presented. Parks and Recreation Commission (PRC) • September 2, 2015. The PRC reviewed the proposed parks and recreation components of the draft Plan, and provided comments on these aspects of the project. As a result of this review, the Plan was modified to address PRC concerns related to park functionality, bike connectivity, parking and landscaping. • November 4, 2015. The PRC reviewed the revised proposed parks and recreation components of the draft Plan, based on comments from September 2, 2015. The PRC concurred that the revised park and recreation concepts were appropriate for inclusion in the Development Plan. • January 4, 2017. The PRC reviewed the proposed parks and recreation components of the Development Plan as revised, for the purpose of determining conformity with applicable General Plan policies. The PRC determined that the proposed park proposal, included related facilities, would be consistent with applicable General Plan policies. Architectural Review Commission (ARC) • February 1, 2016. ARC reviewed the draft Design Guidelines in the Development Plan. At that time, the ARC provided the applicant team direction on the structure and content of the Design Guidelines, architectural styles, and neighborhood form. Packet Pg 502 15 • June 19, 2017. The applicant team addressed ARC concerns raised in February 2016 in an updated version of the Design Guidelines. The ARC recommended approval of the Design Guidelines to the City Council. Airport Land Use Commission Because the project site is within the airport review area, it required Airport Land Use Commission (ALUC) review, and a determination of consistency with applicable Airport Land Use Plan (ALUP) policies. To that end, the ALUC considered the project as follows: • December 21, 2016. The ALUC reviewed the project, and determined that the project was consistent with the ALUP, with conditions related to limiting the development to 720 dwelling units, non-residential density to 93 persons in the S-1b safety zone, FAA review of tall structures that may be considered, appropriate noise mitigation, restrictions on uses that may interfere with airport operations, avigation easements, and appropriate disclosures for future residents. 3. Project Modifications from Advisory Body Review or the EIR The Avila Ranch Development Plan is substantially modified from the original version of the Plan submitted in December 2015, which formed the basis of the Project Description in the Draft EIR. The updated Plan includes a greater level of detail than the original version, including additional environmental protections, provisions and regulations to reduce environmental impacts identified in the EIR for the Project, and additional provision to address anticipated changes in environmental regulations. It also responds directly to direction received from the Planning Commission and other advisory bodies described above. The updated Plan is described and analyzed in detail as the “Mitigated Project Alternative” in Section 5.4.2.2 of the Final EIR, which identifies it as environmentally superior to the originally proposed project. These changes associated with the updated Plan, and comparison to the original December 2015 plan, are described in greater detail on pages 1-5 of the Development Plan. The following summarizes the major modifications and key improvements to the Development Plan based on direction from the Planning Commission, various advisory bodies, input received from the public, and mitigation measures included in the Final EIR: • Improved Flexibility and Affordability in Residential Design. In the R-2 medium density area, a “Pocket Cottage” setting would be introduced for up to 76 units. The Pocket Cottage units would have smaller floor plans to address affordability, and would have wider open spaces in the front yards. The planned R-3 medium- high density residential area would now include a centralized park, and a “duplex” configuration that would offer larger unit sizes to provide for a wider Packet Pg 503 15 range of unit sizes, which could result in increased affordability to a wider range of prospective buyers. • Commercial Design to Minimize Traffic and Parking Impacts. The updated Development Plan would allow a broader mix of uses in the Town Center to potentially reduce the number of offsite trips that may be generated. General retail store square footage would be limited to 7,500 sf, and individual stores would not be allowed to exceed 1,800 sf. The Town Center would be limited to neighborhood serving uses only. It would also provide parking for the Neighborhood Park, and for the Tank Farm Creek Bike Path (as a trailhead), as well as for special events in the adjoining parks and park structures such as weekly farmers markets, neighborhood movies and other neighborhood gatherings. • More Contiguous Open Space. The size and configuration of open space areas would change, resulting in more contiguous open space with open space concentrated in and adjacent to the 300-foot wide buffer along Buckley Road, along the creek, and in the northeast and southeast corners of the site. • Improved and More Detailed Parks Plan. More specific designs were prepared for the parks and recreation areas of the project and the number and size of the parks was increased. Park distribution and layout would change and park acreage has increased from 16 to approximately 18 acres in a total of nine parks. The Plan now reflects the park facilities approved by the Parks and Recreation Commission. The project has received approval for the design of the public parks and open space in Phases 1-3 and has received conceptual approval for the public parks and open spaces in development phases 4-6. Based on Planning Commission input, the Plan was further modified to include an additional pocket park in the vicinity of Lots 130, 131 and 132 in the proposed Vesting Tentative Tract Map. • 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 have also been included. These provide for 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, which exceeds the standard established by LEED and the Smart Growth Coalition. • Vehicular Circulation Modifications. Primary internal circulation has not changed but neighborhood street layout in Phases 3 and 4 has changed substantially in response to the new land use plan and drainage modifications. Packet Pg 504 15 Phase 5 streets would be modified to reflect the inclusion of alley units with common open space. Minor changes have been made to comply with the City’s adopted street design criteria. Additional circulation improvements have been included in the project to address EIR issues, including the extension of Horizon Road to Suburban Road as part of Phase 4 (and the improvement of pedestrian and vehicle improvements). • Energy Efficiency. Many “green” modifications have been added to the project to address impacts identified in the Final EIR, and to address prospective changes in the State and local building codes. These include: o Building energy efficiency standards that will enable the project to comply with the “net zero” energy requirements that are anticipated in the 2019 building code. o Shared Mobility strategies would be included to reduce the necessity for additional vehicles for each family. o Transit usage would be encouraged by extension of Route 2 to the project site as provided in the plan, plus information and/or incentive packages for transit ridership. o To comply with the anticipated 2019 building code changes, there are special energy-saving design requirements. • Tank Farm Creek Alignment. The previous version of the plan relied upon expected drainage improvements by Chevron, and the timing of those improvements is now uncertain. Connecting to the Chevron open space also resulted in the loss of federal and state wetlands. The revision avoids those impacts while maintaining adequate flood control. • Tank Farm Creek Increased Setbacks. Setbacks have been increased along Tank Farm Creek so that they are a minimum of 35 feet along at least 90 percent of the corridor, and no less than 25 feet, the minimum City Zoning Ordinance and Conservation and Open Space Element standard. • Airport Safety. The project was modified to provide for more contiguous open space, a longer and wider Reservation Area along the Buckley frontage, an expanded S-1b Safety Zone to accommodate extension of Runway 7-25, and the elimination of all residential uses from the expanded S-1b Safety Zone. The project received its final Conformity Finding from the San Luis Obispo Airport Land Use Commission on December 21, 2016. • Affordable Housing Provisions. Based on Planning Commission input, the project now includes expanded affordable housing provisions, including more units targeted as affordable, and a 1.2-acre site dedicated for an affordable housing development. Staff is working to minimize the potential for a CFD tax to be imposed on development within the identified affordable housing site. Packet Pg 505 15 • 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. • Modal Split and Impact Fees. Transportation impact fees are connected to modal split objectives. • Sustainable Farming. The plan now includes provisions to encourage sustainable farming practices within designated open space areas wherever appropriate. • Greywater Use. Consistent with the adopted Climate Action Plan, the Development Plan includes provisions to encourage the use of greywater wherever appropriate. • Buckley Road Safety. City staff is working to include provisions in the design of Buckley Road improvements that enhance public safety. Packet Pg 506 15 Land  Use  Element   Policy  8.1.6.    SP-­‐4,  Avila  Ranch  Specific  Plan  Area     Location:    Avila  Ranch  is  located  on  the  north  side  of  Buckley  Road  at  the  far  southern   edge  of  the  City  of  San  Luis  Obispo.  The  three  parcels  that  make  up  the  Avila  Ranch  area   comprise  approximately  150  acres.  The  entire  site  is  located  within  the  Airport  Area   Specific  Plan.     Purpose:  This   area   will   be   developed   as   primarily   a   residential   neighborhood   development  with  supporting  neighborhood  commercial,  park,  recreation  facilities,  and   open  space/resource  protection.  Within  the  project,  emphasis  should  be  on  providing  a   complete  range  of  housing  types  and  affordabilities.    The  specific  plan  for  this  area   should  consider  and  address  the  following  land  use  and  design  issues:     a. Provision  of  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.   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. Participation  in  enhancement  to  Buckley  Road  and  enhancement  of   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.  This  may  include  funding  and/or  construction   of  a  wastewater  lift  station.   k. Fire  protection  and  impacts  to  emergency  response  times.   l. Architectural  design  that  relates  to  the  pastoral  character  of  the  area  and   preserves  view  of  agrarian  landscapes.   m. Provision  of  a  neighborhood  park.             Packet Pg 507 15 Performance   Standards:    The   specific   plan   shall   meet   the   following   performance   standards.     Type  Designations   Allowed   %  of  Site  Minimum  1  Maximum   Residential  LDR   MDR   MHDR   HDR    500  units  700  units   Commercial  NC    15,000  SF  25,000  SF   Open  Space/   Agriculture   OS   AG   50%  2       Public    n/a         Infrastructure  n/a         1 There  can  be  a  reduction  in  the  minimum  requirement  based  on  specific  physical  and/or  environmental   constraints   2 Up  to  1/3  of  the  open  space  may  be  provided  off-­‐site  through  in  lieu  fees  consistent  with  the  Airport  Area   Specific  Plan.         Packet Pg 508 15 3.8 LAND USE AND PLANNING (POLICY CONSISTENCY PORTION) Avila Ranch Development Project 1 Final EIR Consistency with Plans and Policies (from FEIR) This section summarizes relevant adopted goals and policies, and evaluates the proposed Project’s consistency with guidelines and requirements established therein. The following discussion of General Plan policies and preliminary determinations regarding Project consistency with these policies is presented for informational purposes. Section 15125(d) of the State CEQA Guidelines requires that an EIR “shall discuss any inconsistencies between the proposed Project and applicable general plans and regional plans.” In this case, the adopted plans most relevant to the proposed Project include the City’s General Plan and the ALUC’s ALUP. Table 3.8-7 discusses preliminary determination of the Project’s consistency with applicable policies from the General Plan and standards from the ALUP. Detailed analysis of the consistency of the Project with the ALUP is provided in Appendix N. Where potential policy inconsistencies are identified, to the extent feasible, the EIR identifies mitigation measures to improve Project consistency with these policies. The City will make the final decision regarding Project consistency. General Plan Consistency Table 3.8-7 summarizes the proposed Project’s consistency with policies established under the City’s General Plan. For reference, the Applicant also prepared a separate General Plan conformity analysis containing additional policies, located in Appendix N. Table 3.8-7. General Plan Policy Consistency Summary Policy/Goal Summary Consistency Finding Discussion Land Use Element 1.4 – Urban Edges Character The City shall maintain a clear boundary between San Luis Obispo's urban development and surrounding open land. Development just inside the boundary shall provide measures to avoid a stark- appearing edge between buildings in the City and adjacent open land. Consistent Although development of the site would result in creation of residential development at the edge of the City’s urban area, the Project would include a 300-foot wide open space buffer, including a landscaped berm, along Buckley Road to soften the transition from urban to rural area. The urban edges for the Project are outside of the URL and will be preserved with conservation easements. Along the Buckley Road frontage, the western third of the Project is buffered by Tank Farm Creek. The middle third between Tank Farm Creek and Packet Pg 509 15 3.8 LAND USE AND PLANNING 2 Avila Ranch Development Project Final EIR Policy/Goal Summary Consistency Finding Discussion Jesperson will be buffered by landscaping and a terra-formed sound wall berm and fence, and the eastern third will have substantial open space inside the URL. 1.5 – Jobs/Housing Relationship The gap between housing demand (due to more jobs and college enrollment) and supply should not increase. Consistent The proposed Project would create 720 residential dwelling units and would help maintain the current jobs/housing ratio of 1.5. Currently, the City is job rich and lacks adequate housing for the local labor force. The Project would help to meet this housing demand. 1.7.1 – Urban Reserve The City shall maintain an urban reserve line containing the area around the city where urban development might occur Consistent Development of all residential and commercial units exists within the URL as envisioned by this policy. Table 3.8-7. General Plan Policy Consistency Summary (Continued) Policy/Goal Summary Consistency Finding Discussion 1.8.1 – Open Space Protection Within the City's planning area and outside the urban reserve line, undeveloped land should be kept open. Prime agricultural land, productive agricultural land, and potentially productive agricultural land should be protected for farming. Scenic lands, sensitive wildlife habitat, and undeveloped prime agricultural land should be permanently protected as open space. Consistent with Mitigation In accordance with the LUCE EIR, the Applicant must dedicate open space land or, in lieu of fees for newly annexed land at a ratio of no less than 1:1. The Project will dedicate 15 acres of open space within in the URL and would be required to provide for permanent conservation of approximately 71 acres of offsite agricultural lands. 1.8.3 – Commercial uses in the Greenbelt The City shall not allow commercial development within the greenbelt area unless it is clearly incidental to and supportive of agriculture or other open space uses. Consistent The Project is within the URL and therefore supportive of agriculture and open space use as a greenbelt. 1.8.5 – Building Design and Siting All new buildings and structures should be subordinate to and in harmony with the surrounding landscape. The City should encourage County adoption of regulations prohibiting new structures on Consistent The proposed Project site design provides setbacks for the riparian corridors and the Buckley frontage. Buildings do not back on to these facilities except where necessary for noise mitigation requirements. Packet Pg 510 15 3.8 LAND USE AND PLANNING (POLICY CONSISTENCY PORTION) Avila Ranch Development Project 3 Final EIR Table 3.8-7. General Plan Policy Consistency Summary (Continued) Policy/Goal Summary Consistency Finding Discussion ridge lines or in other visually prominent or environmentally sensitive locations, and allowing transfer of development rights from one parcel to another in order to facilitate this policy. 1.8.6 – Wildlife Habitat The City shall ensure that continuous wildlife habitat- including corridors free of human disruption are preserved, and, where necessary, created. Consistent with Mitigation Project development would result in elimination of portions of the Tank Farm Creek riparian corridor. However, the proposed Project would include overall restoration of Tank Farm Creek’s riparian corridor subject to further design review by the City. The realignment of Tank Farm Creek will re- connect the wildlife corridors from the East Fork of San Luis Creek to the Chevron open space. The area will be re- vegetated where necessary to provide added foraging habitat and protection. MM BIO-2a would require creek setbacks of at least 35 feet to protect riparian habitat and preserve the existing corridor. See Section 3.4, Biological Resources, and Section 3.7, Hydrology and Water Quality. 1.9.1 – Agricultural Protection The City shall support preservation of economically viable agricultural operations and land within the urban reserve and city limits. The City should provide for the continuation of farming through steps such as provision of appropriate general plan designations and zoning. Consistent with Mitigation The City has considered the viability of agricultural operations on the Project site through past planning efforts, such as the LUCE Update and AASP. Though the site has historically been cultivated with barley, wheat, safflower, and beans, agricultural productivity is limited by availability of irrigation water and soil type. By acknowledging the Project site’s limited productivity, the LUCE Update and AASP designated the area for urban development with requirements for conservation and replacement of prime agricultural land. Accordingly, Packet Pg 511 15 3.8 LAND USE AND PLANNING 4 Avila Ranch Development Project Final EIR Table 3.8-7. General Plan Policy Consistency Summary (Continued) Policy/Goal Summary Consistency Finding Discussion the Project would result in the conversion of 81.2 acres of prime agricultural land to non- agricultural use (78.2 acres within the Project site and 3 acres within the Buckley Road Extension site). As required under LUCE Policy 8.6.3, the Applicant must dedicate open space land or, pay in lieu of fees for acquisition of agricultural land at a ratio of no less than 1:1. The Project will dedicate 10 acres of prime soils onsite for agricultural operations and would be required to conserve an additional 71 acres of farmland for offsite agricultural conservation. See Section 3.2, Agricultural Resources for additional information regarding the viability of agriculture onsite. 1.9.2 – Prime Agricultural Land The City may allow development on prime agricultural land if the development contributes to the protection of agricultural land in the urban reserve or greenbelt. Consistent with Mitigation The City has considered the protection of agricultural resources on the Project site through past planning efforts, such as the LUCE Update and AASP. Though the site has historically been cultivated with barley, wheat, safflower, and beans, agricultural productivity is limited by availability of irrigation water and soil type. By acknowledging the Project site’s limited productivity, the LUCE Update and AASP designated the area for urban development with requirements for conservation and replacement of prime agricultural land. Accordingly, the Project would result in the conversion of 78.2 acres of prime agricultural land to non- agricultural use (78.2 acres within the Project site and 3 acres within the Buckley Road Extension property). As required under LUCE Policy Packet Pg 512 15 3.8 LAND USE AND PLANNING (POLICY CONSISTENCY PORTION) Avila Ranch Development Project 5 Final EIR Table 3.8-7. General Plan Policy Consistency Summary (Continued) Policy/Goal Summary Consistency Finding Discussion 8.6.3, the Applicant must dedicate open space land or, pay in lieu of fees for acquisition of agricultural land at a ratio of no less than 1:1. The Project will dedicate 10 acres of prime soils onsite and would be required to conserve an additional 71 acres of farmland for offsite agricultural conservation. See Section 3.2, Agricultural Resources for additional information regarding agricultural land protection in the urban reserve/greenbelt. 1.10.2 – Means of Protection The City shall require that open space is to be preserved either by dedication of permanent easements or transfer of fee ownership to the City, the County, or a responsible, nonprofit conservation organization. Consistent The urban edges for the Project are outside of the URL and will be preserved with conservation easements or restrictive covenants, which will be held by conservation groups. 1.10.3 – Public Access Areas preserved for open space should include public trail access, controlled to protect the natural resources, to assure reasonable security and privacy of dwellings, and to allow continuing agricultural operations. Public access through production agricultural land will not be considered, unless the owner agrees. Consistent The Project’s land use plan and circulation plan includes public streets that side onto the Tank Farm Creek open space, and connect to a multi-use trail that provides public access along the entire reach of Tank Farm Creek. See Policy 3.3.2. 1.10.4 – Design Standards The City shall require cluster development to: A. Be screened from public views by land forms or vegetation, but not at the expense of habitat. If the visually screened locations contain sensitive habitats or unique resources as defined in the Conservation and Open Space Element, development should be avoided in those areas and instead designed to cluster in the form of vernacular farm building Consistent with Mitigation The City has considered clustered development to conserve resources on the Project site through past planning efforts, such as the LUCE Update and AASP. Though the site has historically been cultivated with barley, wheat, safflower, and beans, agricultural productivity is limited by availability of irrigation water and soil type. By acknowledging the Project site’s limited productivity, the LUCE Update and AASP Packet Pg 513 15 3.8 LAND USE AND PLANNING 6 Avila Ranch Development Project Final EIR Table 3.8-7. General Plan Policy Consistency Summary (Continued) Policy/Goal Summary Consistency Finding Discussion complexes, to blend into the traditional agricultural working landscape. B. Be located on other than prime agricultural/and be situated to allow continued agricultural use. C. Prohibit building sites and roads within stream corridors and other wetlands, on ridge lines, rock outcrops, or visually prominent or steep hillsides, or other sensitive habitats or unique resources as defined in the Conservation and Open Space Element. D. Preserve historic or archaeological resources. designated the area for urban development with requirements for clustering development to preserve open spaces and agricultural resources. The Project would result in the conversion of 78.2 acres of prime agricultural land to non- agricultural use (78.2 acres within the Project site and 3 acres within the Buckley Road Extension property). As required under LUCE Policy 8.6.3, the Applicant must dedicate open space land or, pay in lieu of fees for acquisition of agricultural land at a ratio of no less than 1:1. The Project will dedicate 10 acres of prime soils onsite and would be required to conserve an additional 71 acres of farmland for offsite agricultural conservation. See Section 3.2, Agricultural Resources. Additionally, the Tank Farm Creek riparian corridor will contain wetland setbacks per amended AASP Program 6.3.7 and Policy 3.3.3 (see Section 3.4, Biological Resources). There are no known historic or archeological resources on the Project site (see Section 3.5, Cultural Resources). 1.13.8 A – Open Space The City shall require that each annexation help secure permanent protection for areas designated open space, and for the habitat types and wildlife corridors within the annexation area that are identified in the COS Element. Consistent The Project is already located within the City and does not include an annexation. The Project would include provision of 55.3 acres of open space, including lands along Tank Farm Creek. 1.13.10 – Solid Waste Capacity The City shall require that adequate solid waste disposal capacity exists before granting any discretionary land use approval which would increase solid waste generation. Consistent There is adequate capacity at the Cold Canyon Landfill to support the Project. See Section 3.13, Utilities. 2.3.7 – Natural The City shall require Consistent Project development would Packet Pg 514 15 3.8 LAND USE AND PLANNING (POLICY CONSISTENCY PORTION) Avila Ranch Development Project 7 Final EIR Table 3.8-7. General Plan Policy Consistency Summary (Continued) Policy/Goal Summary Consistency Finding Discussion Features residential developments to preserve and incorporate as amenities natural site features, such as land forms, views, creeks, wetlands, wildlife habitats, wildlife corridors, and plants. with Mitigation result in substantial changes to onsite natural drainage patterns and elimination of portions of the Tank Farm Creek riparian corridor. In addition, areas of Project development would occur within designation City creek setbacks. However, the proposed Project would include overall restoration and enhancement of Tank Farm Creek’s riparian corridor subject to further design review by the City. See Section 3.4, Biological Resources, and Section 3.7, Hydrology and Water Quality. 2.3.8 – Parking The City shall discourage the development of large parking lots and require parking lots be screened from street views. In general, parking should not be located between buildings and public streets. Consistent The Project includes a 75-space parking lot to accommodate Town Center parking. Design guidelines would ensure proper screening of residential parking places (see Project Appendix F). 2.3.11 – Residential Project Objectives Residential projects should provide: -Privacy, for occupants and neighbors of the project. -Pleasant views from and toward the project. -Security and safety. -Noise and visual separation from adjacent roads and commercial uses. -Buffers from hazardous materials transport routes, as recommended by the City Fire Department. Consistent The Project would comply with providing Residential Project Objectives via adherence and implementation of policies and design guidelines. Refer to Section 3.1, Aesthetics and Visual Resources, 3.9, Noise, and 3.7, Hazards and Hazardous Materials. 3.3.1 – New or expanded areas of Neighborhood Commercial use The City shall provide for new or expanded areas of neighborhood commercial uses that: A. Are created within, or extended into, nonresidential areas adjacent to residential neighborhoods. B. Provide uses to serve nearby residents, not the whole City. Consistent The Project would include 15,000 sf of neighborhood commercial in the form of a “Town Center”. The Town Center may serve as a place for a convenience store, community gathering place, a transit hub, and a location for occasional community events and gatherings. Packet Pg 515 15 3.8 LAND USE AND PLANNING 8 Avila Ranch Development Project Final EIR Table 3.8-7. General Plan Policy Consistency Summary (Continued) Policy/Goal Summary Consistency Finding Discussion C. Have access from arterial streets, and not increase traffic on residential streets. D. Have safe and pleasant pedestrian access from the surrounding service area, as well as good internal circulation. E. Are designed to be pedestrian-oriented, and architecturally compatible with the adjacent neighborhoods being served. Community members would be able to access the Town Center via community and regional roadways, bicycle paths, pedestrian linkages, and transit. 6.6.1 – Creek and Wetlands Management Objectives Maintain and restore natural conditions and habitats; minimize flooding damage; recognize sections of creeks which are in largely natural areas and manage for maximum ecological value. Potentially Consistent with Mitigation Project development would result in substantial changes to onsite natural drainage patterns and elimination of portions of the Tank Farm creek riparian corridor. In addition, areas of Project development would occur within designated City creek setbacks. However, the Project would include overall restoration and enhancement of Tank Farm Creek’s riparian corridor subject to further design review by the City. Refer to Section 3.4, Biological Resources and Section 3.7, Hydrology and Water Quality. 6.6.3 – Amenities and Access New development adjacent to creeks must respect the natural environment and incorporate the natural features as project amenities, providing doing so does not diminish natural values. Consistent with Mitigation Project development would result in substantial changes to onsite natural drainage patterns and elimination of portions of the Tank Farm Creek riparian corridor. In addition, areas of Project development would occur within designated City creek setbacks. However, the proposed Project would include overall restoration and enhancement of Tank Farm Creek’s riparian corridor subject to further design review by the City. The proposed Project would include a Class I pedestrian/bicycle path along the west bank of Tank Farm Creek that connects to the Packet Pg 516 15 3.8 LAND USE AND PLANNING (POLICY CONSISTENCY PORTION) Avila Ranch Development Project 9 Final EIR Table 3.8-7. General Plan Policy Consistency Summary (Continued) Policy/Goal Summary Consistency Finding Discussion Town Center and other roadway linkages. 6.7 – Creeks and Flooding Programs Requires drainage improvements and other Project enhancements to reduce potential flooding of creek channels. *Maybe not applicable with undeveloped parcel. Consistent with Mitigation The proposed Project would include major drainage improvements and substantial alteration to the existing Tank Farm Creek floodplain and associated changes to on- and offsite drainage patterns. Refer to Section 3.4, Biological Resources, and Section 3.7, Hydrology and Water Quality. 7.3 – Airport Land Use Plan Land use density and intensity shall carefully balance noise impacts and the progression in the degree of reduced safety risk further away from the runways. Consistent Project land use and development densities would be consistent with the 55 dB CNEL noise contour and City AOZ designed to reduce safety risks, with development located from 3,500 feet to over 6,000 feet from the end of the airport runway. 7.4 – Airport Overlay Zones Density and allowed uses within the ALUP Safety Areas shall be consistent with the ALUP unless the City overrides a determination of inconsistency where all land uses are consistent with the AOZs. Consistent Project land use densities would be consistent with the LUCE policies, ALUP policies and regulations and City AOZs, as well 7.5 – Airport Noise Compatibility The City shall use the 60 dB CNEL aircraft noise contour (FAA and State aircraft noise planning standard) as the threshold for new urban residential areas. Interiors of new residential structures shall be constructed to meet a maximum 45 dB CNEL. Consistent Project development would be located outside of the 60 dB noise contour and interior noise levels would be reduced to less than 45 dB through application of standard California Building Code requirements. See Section 3.9, Noise. 8.1.6 – SP-4, Avila Ranch Specific Plan Area This area will be developed as primarily a residential neighborhood development with supporting neighborhood commercial, park, recreation facilities, and open space/resource protection. Within the Project, emphasis should be on providing a complete range of housing Consistent The Project would consist primarily of new residential neighborhoods with a variety of housing types and affordability levels along with supporting open space, park and commercial areas. See Section 3.10, Population and Housing. Packet Pg 517 15 3.8 LAND USE AND PLANNING 10 Avila Ranch Development Project Final EIR Table 3.8-7. General Plan Policy Consistency Summary (Continued) Policy/Goal Summary Consistency Finding Discussion types and afford abilities. Conservation and Open Space Element 2.2.1 – Atmospheric Change City actions shall seek to minimize undesirable climate changes and deterioration of the atmosphere’s protective functions that result from the release of carbon dioxide and other substances. Consistent with Mitigation Development of 720 new residential units near the southern edge of the City would result in substantial GHG generation during construction and operation. Although bicycle and pedestrian amenities and local-serving commercial uses would be provided, the site’s distance from Downtown and lack of high frequency transit routes would present challenges for minimization of long-term GHG generation. See Section 3.3, Air Quality and Greenhouse Gas Emissions. 2.2.4 – Promote walking, biking, and use of public transit use to reduce dependency on motor vehicles City actions shall seek to reduce dependency on gasoline- or diesel-powered motor vehicles and to encourage walking, biking, and public transit use. Consistent Although the Project would provide bicycle and pedestrian facilities and new development would be located in close proximity to commercial and industrial employment centers in the City’s southern reaches, The site’s distance from Downtown and lack of high frequency transit routes may present challenges for minimization of long-term GHG generation. However, the Project would provide bicycle and pedestrian facilities, as well as transit improvements that would promote the use of alternative methods of transportation, therefore reducing future GHG emissions. Further, new development would be located in close proximity to commercial and industrial employment centers within the City’s southern reaches, promoting walkability and reducing motor vehicle use. 9.2.1 – Views to and from public places, including scenic Preserve and improve views of important scenic resources from public places...including streets Consistent Project development would substantially alter and potentially adversely impact Packet Pg 518 15 3.8 LAND USE AND PLANNING (POLICY CONSISTENCY PORTION) Avila Ranch Development Project 11 Final EIR Table 3.8-7. General Plan Policy Consistency Summary (Continued) Policy/Goal Summary Consistency Finding Discussion roadways and roads. views along Buckley Road. However, inclusion of a 300- foot wide open space buffer and landscape berm would help minimize visual intrusion. This change would not be significant and would therefore be consistent with City policy. See Section 3.1, Aesthetics and Visual Resources. 9.3.6 – View blockage along scenic highways Determine that view blockage along scenic roadways is a significant impact. Consistent Although Buckley Road is identified as a scenic corridor, inclusion of a 300-foot wide open space buffer along Buckley Road would prevent view blockage. See Section 3.1, Aesthetics and Visual Resources. 4.3.4 – Use of Energy Efficient, Renewable Energy Resources 4.3.6 – Energy Efficiency and Green Building in New Development 4.6.8 – Energy Efficient Project Design Promotes use of cost effective, renewable, non-depleting energy sources, wherever possible, in new construction projects; encourages energy- efficient LEED-certified “green buildings”; emphasize use of solar exposure and shading. Consistent The Project is proposed to be compliant with the U.S. Green Building Council’s Leadership in Energy and Environmental Design for Neighborhood Development (“LEED-ND”) “Silver” certification and San Luis Obispo County’s Green Build “Emerald” certification rating. 5.5.8 – Recycling Facilities in New Development Requires facilities in new developments to accommodate and encourage recycling. Consistent The Project would create additional sources for generation of solid waste. Project Design Guidelines would ensure recycling facilities are provided. 7.3.1 – Protect Listed Species City will comply with State and Federal requirements for listed species; City will protect listed species through its actions on…development applications. Potentially Consistent with Mitigation The Project would potentially impact several listed species through habitat development and/or habitat degradation, but would be subject to feasible mitigation. See Section 3.4 Biological Resources. 7.3.3 – Wildlife Habitat and Corridors Continuous wildlife habitat, including corridors free of human disruption, shall be preserved and where necessary, created by interconnecting open spaces, wildlife habitat, and Consistent with Mitigation The Project would convert 81.2 acres of open agricultural (78.2 acres within the Project site and 3 acres within the Buckley Road Extension property), which currently permit Packet Pg 519 15 3.8 LAND USE AND PLANNING 12 Avila Ranch Development Project Final EIR Table 3.8-7. General Plan Policy Consistency Summary (Continued) Policy/Goal Summary Consistency Finding Discussion corridors. relatively free wildlife passage to urban development. Development of the Project would inhibit or eliminate such passage. While the Project would dedicate 55.3 acres as open space, including the Tank Farm Creek riparian corridor, the Tank Farm creek corridor would be relatively narrow, particularly through the central reaches of the site (e.g., 125 feet wide). This corridor would be bordered by adjacent homes and roads, traversed by a Class I paved bicycle path, and crossed by two bike bridges, with associated noise, light, and disturbances. The relatively narrow width of this corridor and proximity of development would potentially interfere with wildlife passage and limit its value as a wildlife corridor. Mitigation proposed in Section 3.4, Biological Resources would address this policy. 7.7.6 – Replace Invasive, Non- Native Vegetation with Native Vegetation The City and private development will protect and enhance habitat by removing invasive, non-native vegetation and by replanting it with native California plant species. Consistent The Project would include habitat restoration efforts that would involve removal of non- native species and planting of native vegetation. See Section 3.4, Biological Resources. 7.7.7 – Preserve Ecotones Ensure that “ecotones,” or natural transitions along the edges of different habitat types, are preserved and enhanced. Consistent The Project site currently supports limited ecotones as it primarily consists of open agricultural fields, which border native habitats along Tank Farm Creek. While the Project includes general proposals for habitat restoration along the creek corridor, it is unclear if these would include creation of different habitat types to meet the intent of this policy. Mitigation proposed in Section 3.4, Biological Resources, would address this policy. 7.7.8 – Protect Wildlife Corridors Condition development permits in accordance with applicable Consistent While the Project would dedicate 55.3 acres as open Packet Pg 520 15 3.8 LAND USE AND PLANNING (POLICY CONSISTENCY PORTION) Avila Ranch Development Project 13 Final EIR Table 3.8-7. General Plan Policy Consistency Summary (Continued) Policy/Goal Summary Consistency Finding Discussion mitigation measures to ensure that important corridors for wildlife movement and dispersal are protected. space, including the Tank Farm Creek riparian corridor, the Tank Farm Creek corridor would be relatively narrow, particularly through the central reaches of the site (e.g., 125 feet wide). This corridor would be bordered by adjacent homes and roads, traversed by a Class I paved bicycle path, and crossed by two bike bridges, with associated noise, light, and disturbances. The relatively narrow width of this corridor and proximity of development would potentially interfere with wildlife passage and limit its value as a wildlife corridor. Mitigation proposed in Section 3.4, Biological Resources, would address this policy. 7.7.9 – Creek Setbacks Maintain creek setbacks to include appropriate separation from the physical top of bank, the appropriate floodway, native riparian plants, or wildlife habitat and space for paths. Consistent with Mitigation Project development including the proposed Class I bicycle path, fill associated with development pads, and new roads would intrude into the minimum required creek setbacks with secondary consequences for protection of habitats, water quality, and wildlife movement. City policy requires a minimum setback of 20 feet from the top of bank or from the edge of the predominant pattern of riparian vegetation, whichever is farther from the creek flow line. Mitigation proposed in Section 3.4, Biological Resources, would address this policy. 8.2.2A – Open Space within the Urban Area Identifies creek corridors as a valuable resource for dedication as Permanent Open Space. Consistent The Project would dedicate 55.3 acres as open space, a limited portion of which would include open space along the Tank Farm Creek riparian corridor. 8.2.2D – Open Space within the Urban Area Identifies undeveloped land not intended for urban uses as a valuable resource for dedication as Permanent Open Space. Consistent The Project would dedicate 55.3 acres as open space, including the Tank Farm Creek riparian corridor, and 35 acres Packet Pg 521 15 3.8 LAND USE AND PLANNING 14 Avila Ranch Development Project Final EIR Table 3.8-7. General Plan Policy Consistency Summary (Continued) Policy/Goal Summary Consistency Finding Discussion outside the URL as open space. 8.2.2H – Open Space within the Urban Area Identifies prime agricultural soils as a valuable resource for dedication as Permanent Open Space. Potentially Consistent The Project would dedicate 55.3 acres as open space, including the Tank Farm Creek riparian corridor, and 35 acres outside the URL as open space. There are 14 acres of Prime Farmland, 12 acres of which run along the Buckley Road frontage outside the URL. See Section 3.2, Agricultural Resources. 8.3.2A – Open Space Buffers Requires buffers between urban development and creek corridors. Consistent Project development, including the proposed Class I bicycle path, fill associated with building pads and new roads would intrude into the minimum City required creek setbacks, with secondary consequences for protection of habitats, water quality, and wildlife movements. Mitigation required in Section 3.4, Biological Resources, would address this policy. 8.6.3 – Required Mitigation Farmland requires mitigation to permanently protect an equal area of equal quality. Consistent In accordance with the AASP EIR and LUCE Update EIR, the Applicant must dedicate open space land or in lieu of fees for newly annexed land at a ratio no less than 1:1. The Project would dedicate 71 acres as conserved agricultural lands. See Section 3.2, Agricultural Resources. 8.7.2 – Enhance and Restore Open Space Enhance and restore open space by removing invasive, non- native species, re-establishing native riparian vegetation, eliminating sources of water pollutants, removing trash and debris contaminants, and securing alternative funding. Consistent The Project would include habitat restoration efforts that would involve significant removal of non-native species and planting of native vegetation. See Section 3.4, Biological Resources. 10.2.2 H – Ahwahnee Water Principles Encourages principles/policies for reduced water demand, runoff, and flooding. Consistent While the Project would create an additional long-term demand on City water supplies, the Project would include state of the art water conservation measures that would meet Packet Pg 522 15 3.8 LAND USE AND PLANNING (POLICY CONSISTENCY PORTION) Avila Ranch Development Project 15 Final EIR Table 3.8-7. General Plan Policy Consistency Summary (Continued) Policy/Goal Summary Consistency Finding Discussion LEED-ND Silver and San Luis Obispo Emerald Green standards, including use of recycled water and onsite flood water retention. See Section 3.13, Utilities. Housing Element 3.2 – Goal 2: Affordability Requires that affordable housing production shall be accommodated to meet the City’s new housing construction objectives. Consistent The Project would result in 720 residential units, 105 units of which qualify as affordable. Project-proposed housing would accommodate residents that live and work in the City as well as residents of very low- income levels. 3.2 – Goal 4: Mixed Income Housing Preserve and accommodate existing and new mixed-income neighborhoods and seek to prevent neighborhoods or housing types that are segregated by economic status. Consistent The Project would result in 720 residential units, 105 units of which qualify as affordable. Project-proposed housing would accommodate residents that live and work in the City as well as residents of very low- income levels. 3.2 – Goal 6: Housing Production Outlines strategies for the City to plan for new housing to meet a full range of community housing needs. Consistent The Project would result in 720 residential units, 105 units of which qualify as affordable. Project proposed housing would accommodate residents that live and work in the City as well as residents of very-low income levels. 3.2 – Goal 10: Local Preference Maximize affordable housing opportunities for those who work in the City of San Luis Obispo. Consistent The Project would result in 720 residential units, 105 units of which qualify as affordable. Project-proposed housing would accommodate residents that live and work in the City. 3.2 – Goal 11: Suitability Develop and retain housing on sites that are suitable for that purpose. Consistent The Project site is considered a Special Plan Area established in the LUCE to accommodate new housing. Noise Element 1.4 – New Transportation Noise Sources Noise created by new transportation noise sources shall be mitigated to not exceed City-specified indoor and outdoor maximum noise Consistent The Project would not increase transportation noise beyond acceptable levels. See Section 3.9, Noise. Packet Pg 523 15 3.8 LAND USE AND PLANNING 16 Avila Ranch Development Project Final EIR Table 3.8-7. General Plan Policy Consistency Summary (Continued) Policy/Goal Summary Consistency Finding Discussion exposure levels. 1.3 – New Development Design and Transportation Noise Sources New noise-sensitive development shall be located and designed to meet the maximum outdoor and indoor noise exposure to city specified levels. Consistent Project exterior and interior noise levels would remain acceptable. See Section 3.9, Noise. 1.10 – Existing and Cumulative Impacts The City shall consider mitigation where existing or cumulative increases in noise levels significantly impact noise-sensitive land uses, including rerouting traffic, noise barriers, reducing traffic speed, retrofitting buildings, and exaction of fees. Consistent While the Project would contribute to short-term construction noise impacts and long-term operational noise impacts, the Project would not significantly contribute to existing and cumulative noise impacts. See Section 3.9, Noise. Safety Element 2.1 – Flood Hazard Avoidance and Reduction C. No new building or fill should encroach beyond, or extend over, the top-of-bank of any creek. E. Within new development areas, such as the potential expansion areas shown in Figure 2 of the Land Use Element, substantial displacement of flood waters should be avoided by: 1. Keeping a substantial amount of flood-prone land in the vicinity as open space; 2. Enlarging man-made bottlenecks, such as culverts, which contribute to flood waters backing up from them; 3. Accommodating in such places uses which have relatively low ratios of building coverage to site area, for which shallow flooding of parking and landscape areas would cause minimum damage. 4. Requiring new buildings to be constructed above the 100- year flood level. F. Creek alterations shall be considered only if there is no practical alternative, consistent Consistent with Mitigation The proposed Project would include substantial alteration to the existing Tank Farm Creek floodplain and associated changes to on- and offsite drainage patterns. Refer to Section 3.4, Biological Resources, and Section 3.7, Hydrology and Water Quality. Packet Pg 524 15 3.8 LAND USE AND PLANNING (POLICY CONSISTENCY PORTION) Avila Ranch Development Project 17 Final EIR Table 3.8-7. General Plan Policy Consistency Summary (Continued) Policy/Goal Summary Consistency Finding Discussion with the Conservation and Open Space Element. G. Development close to creeks shall be designed to avoid damage due to future creek bank erosion. Property owners shall be responsible for protecting their developments from damage caused by future bank loss due to flood flows. 3.0 – Adequate Fire Service Development shall be approved only when adequate fire suppression services and facilities are available or will be made available concurrent with development, considering the setting, type, intensity, and form of the proposed development. Consistent The Project site is marginally outside the acceptable 4-minute response time for fire protection services. However, installation of the Project’s proposed Interim Fire Station would provide coverage to the Project site, until the City’s fifth fire station is constructed and operational, ensuring that the Project is consistent with City policy for adequate fire service. See Section 3.11, Public Services. 5.2 – Minimizing Hazardous Materials People’s exposure to hazardous substances should be minimized. Consistent with Mitigation The Project would implement standard good housekeeping measures, best management practices (BMPs), site maintenance, and security precautions, as well as compliance with standards and regulations. See Section 3.6, Hazards and Hazardous Materials. 7.0 – Policy S: Airport Land Use Plan Development should be permitted only if it is consistent with the San Luis Obispo County Airport ALUP. Potentially Consistent The Project is in conformance with the ALUP, Handbook, AOZ standards, and LUCE airport safety policies, and further evaluated below in Impacts LU 1 and LU 2. 9.3 A – Response Performance Standards The City will evaluate fire-flow capacities and identify deficiencies through testing and modeling of the water system. For identified deficiencies, the Utilities Department will propose remedies to meet recommended service levels based on Insurance Service Consistent The Project will provide adequate water flow per adopted City standards. See Section 3.13, Utilities, and Impact LU-3 below. Packet Pg 525 15 3.8 LAND USE AND PLANNING 18 Avila Ranch Development Project Final EIR Table 3.8-7. General Plan Policy Consistency Summary (Continued) Policy/Goal Summary Consistency Finding Discussion Organization ratings and other objective criteria. Water and Wastewater Management Element (WWME) 2.1.7 – Annexation Criteria Allows annexation of areas outside City limits if they are infill areas with access to existing City wastewater service. Consistent The Project would be located within City limits and the City’s URL with access to existing City services. Wastewater disposal is evaluated in Section 3.13, Utilities. B 2.2.2 – Service Capacity The City's wastewater collection system and Water Reclamation Facility shall support population and related service demands consistent with the General Plan. Potentially Consistent There is adequate capacity at the City’s Water Resource Recovery Facility (WRRF) to accommodate dry-weather wastewater flows generated by the Project; however, under wet-weather conditions, peak wastewater flows may exceed the WRRF capacity. See Section 3.13, Utilities, and Impact LU-3 below. B 2.2.3 – Wastewater Service for New Development New development will only be permitted if adequate capacity is available within the wastewater collection system and/or Water Reclamation Facility. Potentially Consistent There is adequate capacity at the City’s WRRF to accommodate dry-weather wastewater flows generated by the Project; however, under wet-weather conditions, peak wastewater flows may exceed the WRRF capacity. See Section 3.13, Utilities, and Impact LU-3 below. Circulation Element 3.1.7 – Transit Service Access New development should be designed to facilitate access to transit service. Potentially Consistent The Project would include installation of bus stops and facilitation of the extension of bus service the Project site. However, the site is outside of areas that receive high frequency transit service. Issue evaluated in Section 3.12, Transportation and Traffic. 4.1.4 – New Development The City shall require that new development provide bikeways, secure bicycle storage, parking facilities and showers consistent with City plans and development standards. When evaluating transportation Potentially Inconsistent Consistent with Mitigation The Project would provide dedicated bikeways and would be required to provide bicycle parking per City of San Luis Obispo Municipal Code Section 17.16.060, which mandates that bicycle parking be equal to 15 Packet Pg 526 15 3.8 LAND USE AND PLANNING (POLICY CONSISTENCY PORTION) Avila Ranch Development Project 19 Final EIR Table 3.8-7. General Plan Policy Consistency Summary (Continued) Policy/Goal Summary Consistency Finding Discussion impacts, the City shall use a Multimodal Level of Service analysis. percent of vehicle parking provided. However, an important gap in the planed regional Class II bicycle lane along west bound Buckley Road could cause impacts to cyclists and inconsistencies with the BTP. See Section 3.12, Transportation and Traffic. 5.1.2 – Sidewalks and Paths The City should complete a continuous pedestrian network connecting residential areas with major activity centers as well as trails leading into City and County open spaces. Consistent with Mitigation The Project would include fully developed pedestrian facilities within the Project site; however, access to the shopping center to the north would be along roadways that may not be fully developed with pedestrian amenities. This issue would be addressed with required mitigation. See Section 3.12, Transportation and Traffic. 5.1.4 – Pedestrian Access New or renovated commercial and government public buildings shall provide convenient pedestrian access from nearby sidewalks and pedestrian paths, separate from driveways and vehicle entrances. Consistent Sidewalks and pedestrian pathways separate from driveways and/or vehicle entrances are provided to the proposed Town Center. See Section 3.12, Transportation and Traffic. 15.1.2 – Development along Scenic Routes The City will preserve and improve views of important scenic resources from streets and roads. Development along scenic roadways should not block views or detract from the quality of views. Consistent While the Project would change visual character of the area, the Project would preserve important views through inclusion of a 300-foot setback for new development from Buckley Road. See Section 3.1, Aesthetics and Visual Resources. Parks and Recreation Element 3.13.1 – Parks System The City shall develop and maintain a park system at a rate of 10 acres of parkland per 1,000 residents. Five acres shall be dedicated as a neighborhood park. The remaining five acres required under the 10 acres per 1,000 residents in the residential annexation policy may be located anywhere Consistent A 9.80-acre neighborhood park would be located to the east of the Town Center, and within 0.5 mile from most proposed residential neighborhoods. Additionally, seven mini-parks and one pocket park would be created on irregular-shaped tracts of land near residential areas to serve the local Packet Pg 527 15 3.8 LAND USE AND PLANNING 20 Avila Ranch Development Project Final EIR Table 3.8-7. General Plan Policy Consistency Summary (Continued) Policy/Goal Summary Consistency Finding Discussion within the City’s park system as deemed appropriate. population. These parks would serve residential areas farther from the neighborhood park. Community gardens would be located on 1.30 acres of the planned open space east of the neighborhood park. 3.15 – Neighborhood Parks - San Luis Obispo residents shall have access to a neighborhood park within 0.5 to 1.0 mile walking distance of their residence. -All residential annexation areas shall provide developed neighborhood parks at the rate of five acres per 1,000 residents. -In neighborhoods where existing parks do not adequately serve residents, mini-parks may be considered. Consistent A 9.80-acre neighborhood park would be located to the east of the Town Center, and within 0.5 mile from most proposed residential neighborhoods. Additionally, seven mini-parks and one pocket park would be created on irregular-shaped tracks of land near residential areas to serve the local population. These parks would serve residential areas farther from the neighborhood park. Community gardens would be located on 1.30 acres of the planned open space east of the neighborhood park. Sources: City of San Luis Obispo 1996, 2006, 2014b, 2015. Packet Pg 528 15 3.8 LAND USE AND PLANNING (POLICY CONSISTENCY PORTION) Avila Ranch Development Project 21 Final EIR ALUP Consistency Table 3.8-8 summarizes Project consistency with the ALUP. ALUP consistency is also further discussed in Impact LU-2. Table 3.8-8. ALUP Consistency Summary Project Component Consistency Finding Discussion 55 dB CNEL Aviation Noise Contour Open Space Consistent Dedicated open space area is an acceptable use under the ALUP 55 dB CNEL Aviation Noise Contour. Issue evaluated in Section 3.9, Noise. Proposed uses in the 55 dB CNEL contour are open space, agriculture and community gardens. Safety Area S-1B Neighborhood Park Consistent Park space is an acceptable land use under ALUP Safety Area S-1B. Residential Consistent Up to seven residential units are permitted in the 35-acre S-1B area. These will be clustered in the northwest portion of the zone. This is consistent. Town Center Consistent Retail and commercial uses are allowed under ALUP Safety Area S-1B. Open Space Consistent Dedicated open space area and agricultural operations are acceptable land uses under ALUP Safety Area S-1B. Safety Area S-1C Open Space Consistent Dedicated open space area is an acceptable land use under ALUP Safety Area S-1C. Safety Area S-2 Residential Uses Consistent There are 713 residential units proposed within this Safety Area; however, there are no density restrictions within Safety Area S-2. See Impact LU-2 for further discussion. Park and Open Space Consistent Dedicated open space area is an acceptable land use under ALUP Safety Area S-2. Packet Pg 529 15 3.8 LAND USE AND PLANNING 22 Avila Ranch Development Project Final EIR AASP Consistency Table 3.8-9 summarizes Project consistency with the AASP. AASP consistency is also further discussed in Impact LU-2. Table 3.8-9. AASP Consistency Summary Policy/Goal Consistency Finding Discussion Policy 3.2.1 Riparian Vegetation. Establish healthy, continuous riparian vegetation along (1) East Branch of San Luis Obispo Creek from Broad Street to Santa Fe Road, (2) Acacia Creek from the northern planning area boundary to the confluence with East Branch of San Luis Obispo Creek, (3) Orcutt Creek from the planning area northern boundary to its confluence with Acacia Creek, and (4) Tank Farm Creek from the planning area’s northern boundary to its southern boundary. Potentially Consistent A continuous riparian corridor would be established under the Project from the northeastern boundary to the southwestern corner, establishing a consistent riparian zone. However, the proposed limited setbacks of development from the riparian corridor would be inconstant with City policy. Increased setbacks and development reconfiguration would ensure consistency. . Policy 3.2.4 Wetlands and Buffer Areas. Designate for open space use wetlands and their associated buffer areas. Consistent The Project includes open space buffers between wetland areas and proposed development areas, primarily on either side of Tank Farm Creek and in the southeast region of the Project site. However, Project development would also result in the permanent loss of habitats within the Project site including protected wetlands and riparian areas associated with Tank Farm Creek. These impacts would be mitigated by MM AG-1a, MM HYD-4a, MM HYD-4b, MM BIO-1a, MM BIO-1b, MM BIO-2a through - 2j, and MM BIO-6 implementing a Biological Mitigation Plan, Best Management Practices, and Environmental Monitor to oversee, replace, restore, create, and protect, among other actions, existing and future wetlands associated with the Project site and maintain high-quality wildlife habitat. Coordination with the Regional Water Quality Control Board (RWQCB), City Fire Department (SLOFD), and CDFW is included. Policy 3.2.5 Restoring Marginal or Degraded Wetlands. When reviewing plans to restore marginal or degraded wetlands, require (1) techniques for isolation, stabilizing, or removing petroleum contamination of soil and groundwater that minimize disturbance of existing wetland and other surface resource values, (2) configuration of the ground surface to retain Consistent Please refer to Policy 3.2.4 discussion above. Packet Pg 530 15 3.8 LAND USE AND PLANNING (POLICY CONSISTENCY PORTION) Avila Ranch Development Project 23 Final EIR Table 3.8-9. AASP Consistency Summary (Continued) Policy/Goal Consistency Finding Discussion wetland characteristics, (3) removal of invasive, non-native plants, (4) introduction of native plants, (5) methods approved by the RWQCB, and the SLOFD and (6) will not create a significant attraction for large birds in consideration of airport safety. Policy 3.2.6 Expansion of Wetlands. Where suitable buffers can be provided, expand wetlands into areas within the wetlands complex that are conducive to wetlands, but that do not initially meet the definition of wetlands. However, any expansion or changes to wetlands must take into account the potential increase in airport safety hazards as a result of bird strikes. Consistent Please refer to Policy 3.2.4 discussion above. Policy 3.2.8 Professional Direction of Wetland Work. Assure that all wetlands restoration, enhancement, and creation will be under the direction of qualified professionals. Seek the cooperation of trustee agencies, such as the California Department of Fish and Wildlife (CDFW), and obtain any necessary approvals from these agencies. Consistent Please refer to Policy 3.2.4 discussion above. Policy 3.2.9 Design of Detention Areas. Design onsite drainage detention areas within the Airport Area to support wetlands characteristics, so they will be visually attractive elements of the landscape and components in a system of wildlife habitat, in addition to flood control facilities. Consistent Please refer to Policy 3.2.4 discussion above. Policy 3.2.10: Recreational Use of Wetlands Complex. Recreational use of the wetlands complex and buffer areas should be limited to non- intrusive observation and study. The type and extent of public access should be restricted in order to maintain high-quality wildlife habitat. Consistent Please refer to Policy 3.2.4 discussion above. Policy 3.2.11 Impacts from Run-Off. Minimize the water-quality impacts associated with run-off from rooftops and paved areas, due to contaminants, temperature changes, velocity changes, and sediment by providing dispersed surface drainage across areas with suitable soil and Consistent Please refer to Policy 3.2.4 discussion above. Packet Pg 531 15 3.8 LAND USE AND PLANNING 24 Avila Ranch Development Project Final EIR Table 3.8-9. AASP Consistency Summary (Continued) Policy/Goal Consistency Finding Discussion vegetation whenever feasible, instead of piped or other concentrated drainage from roofs and paved areas directly to creeks. Policy 3.2.15 Continuous Open Space Corridors. Provide continuous open space corridors linking open space resources within the Airport Area to resources outside of the Airport Area. Consistent Please refer to Policy 3.2.4 discussion above. Policy 3.2.16 Continuous Wetlands. Development in the Airport Area should not isolate or further fragment wetlands, uplands or their associated habitat areas. Partially Consistent with Mitigation Wetland and open space areas are primarily retained along Tank Farm Creek and created in the northeastern and southern regions of the Project site. Wetlands may be affected by the proposed Jespersen Road extension resulting in fragmentation of the existing wetland. MM BIO-2B, Biological Mitigation Plan, would mitigate the Congdon Tarplant and impacts to isolated wetlands by requiring a Bio Mitigation Plan which requires habitat replacement. Impacts and proposed mitigation measures for wetlands are detailed further in Section 3.4, Biological Resources. Policy 3.2.18 Mitigate Loss of Ag and Open Space Land. To mitigate the loss of agricultural and open land in the Airport Area, development shall help protect agricultural and open space lands to the south and east by securing protected areas at least equal to the area of new development, where on-site protection is not available. Partially Consistent with Mitigation The Project would result in the conversion of 71 acres of prime farmland and is therefore subject to mitigation under Policy 1.9.2. Proposed mitigation measure MM AG-1 would satisfy the criteria of Policy 1.9.2, therefore making the Project consistent with this policy after mitigation. However, implementation of MM AG-1 would not fully mitigate such impacts since the lost agricultural land could not be replaced or recreated. Further discussion of these impacts and their determination can be found under the discussion of Impact AG-1 in Section 3.2, Agricultural Resources. Policy 3.2.20 Acquire Land South of Airport. Utilize locally-generated acquisition funding, as well as outside grant support, to acquire fee or easement interest in lands south of the airport in the following order of priority: Buckley Road Area. Agricultural lands on Partially Consistent Please refer to Policy 3.2.18 discussion above. Acquisition of agricultural lands south of the airport would be permitted under proposed mitigation. Packet Pg 532 15 3.8 LAND USE AND PLANNING (POLICY CONSISTENCY PORTION) Avila Ranch Development Project 25 Final EIR Table 3.8-9. AASP Consistency Summary (Continued) Policy/Goal Consistency Finding Discussion either side of Buckley Road between Vachell Lane and Broad Street should receive the highest priority in conservation funding. There is ongoing, incremental conversion of lands from agriculture to other uses, as well as ongoing small-scale subdivision of rural properties. There are relatively few large properties in this area. Easements to secure development rights and maintain scenic character would be the primary focus of this effort, and easement acquisition is the preferred strategy. Other Lands. Areas such as the ranches and woodland areas south of the Airport may also be targeted for fee or easement acquisition; however, these areas are not considered as vulnerable to land use changes as the aforementioned areas. Program 3.3.7. Creek Restoration Standards. The City will work with CDFW and responsible federal agencies to establish standards for grading, stabilization, and revegetation of all creek channels in the Airport Area. The standards will cover plant species, planting densities, and long-term maintenance requirements and responsibilities. Consistent Please refer to Policy 3.2.4 discussion above. Goal 4.1.9 Airport Operations. Airport Area land uses and development, including Airport Compatible Open Space (ACOS), should be compatible with the long-term operation of the airport, and enhancing the viability of the airport as a regional transportation facility. Consistent Due to the location and density allotments designed by the Project, implementation of the Project would be consistent with airport standards for established airport safety areas and noise buffers. Impacts to safety, noise, and hazards are further discussed within Sections 3.6, Hazards and Hazardous Materials, 3.9, Noise, 3.12, Transportation and Traffic. Policy 4.3.3 Airport Land Use Plan Consistency. Airport Area development must be consistent with the standards and requirements of the ALUP and/or Public Utilities Code Sections 21670-21679.5. Consistent The Project would be consistent with all ALUP noise contour and safety area policies, as detailed above in Table 3.8-8. Program 6.3.G Development Review Requirements. In order to mitigate air, noise and traffic Consistent The Project includes on-street bicycle lanes, off-street paths, bus stops, intersections, and other street and transit Packet Pg 533 15 3.8 LAND USE AND PLANNING 26 Avila Ranch Development Project Final EIR Table 3.8-9. AASP Consistency Summary (Continued) Policy/Goal Consistency Finding Discussion impacts associated with development of the AASP, ensure private development participation in the implementation of the plan by requiring the construction of on- street bicycle lanes as part of development street frontage improvements, and require development to dedicate and construct off- street paths where their alignments are within private property. Require development adjacent to bus stops to construct turnouts and bus stops (including shelters) conforming to the bus stop standards in SLO Transit’s Short Range Transit Plan. Project may be required to construct intersection and other street improvements in proportion to their development size and location. facility improvements throughout the Project site consistent with City standards and standards within the AASP. Specific impacts to air, noise, and traffic are further discussed in Sections 3.3, Air Quality and Greenhouse Gas Emissions, 3.9, Noise, and 3.12, Transportation and Traffic. Program 6.3.I Class I and Class II Bicycle Lanes. Class I bicycle paths and Class II bicycle lanes shall be constructed, signed and marked to meet or exceed the minimum standards established by the Caltrans Highway Design Manual and the City of San Luis Obispo design standards. Class I paths should be a minimum of 12 feet in width with 2-foot shoulders, except in hillside areas where grading would cause visual impacts or along creeks where space is limited. Class II bicycle lanes shall be designed in accordance with the City Bicycle Plan and should be 6 to 7 feet in width. Consistent The Project includes Class I and II bicycle facilities that meet the design standards within the Caltrans Highway Design Manual as well as City standards. Further, with implementation of MM TRANS-11, the Project would be consistent with the City’s Bicycle Transportation Plan (BTP). See Section 3.12, Transportation and Traffic. Program 6.3.L Transit Facility Requirements. As part of the development review process, the City will require new development to provide for transit facilities along or adjacent to the project frontage. Consistent Please refer to Program 6.3.G discussion above. Goal 6.4.3. Improve Buckley Road to arterial standards while maintaining a street character consistent with the area’s rural setting. Consistent Please refer to Program 6.3.G discussion above. Standard 6.4.3.1. Buckley Road shall be extended as a two- lane rural arterial from its currently western terminus at Vachell Lane to South Higuera Consistent The Project includes extending Buckley Road from the intersection with Vachell Lane west to South Higuera Street, per Standard 6.4.3.1 recommendations. Traffic Packet Pg 534 15 3.8 LAND USE AND PLANNING (POLICY CONSISTENCY PORTION) Avila Ranch Development Project 27 Final EIR Table 3.8-9. AASP Consistency Summary (Continued) Policy/Goal Consistency Finding Discussion Street. Timing of extension will be based on achieving traffic volumes and conditions that justify the improvements or when the intervening properties between Vachell Lane and South Higuera Street are redeveloped. Setbacks shall be provided on both sides of the road to allow for expansion to a four-lane roadway if future traffic volumes and conditions justify additional lanes. volume and use impacts of this extension are detailed in Section 3.12, Transportation and Traffic. Standard 6.4.3.2. Buckley Road shall be design to minimize impact to adjacent creeks and open space where possible. Setbacks shall be provided on both sides of the road to allow for expansion to a four-lane roadway if future traffic volumes and conditions justify additional lanes. Consistent Setbacks from Tank Farm Creek and preserved wetland areas are included in the Project. Additionally, traffic volume and circulation impacts of the extension are detailed in Section 3.12, Transportation and Traffic. Standard 6.4.3.3. On the north side of Buckley Road in undeveloped areas, outside of the 20-foot graded shoulder, there shall be a 12-foot wide multi-use path. Consistent The Project includes a multi-use path on the north side of Buckley Road in undeveloped areas. Standard 6.4.4.1. Commercial and industrial collectors without center turn lanes shall have a minimum of two 13-foot travel lanes and two 6-foot bicycle lanes. Each side of the road will have 7-foot tree-lined parkways between the curb and a 5-foot wide sidewalk unless an alternative cross section is approved by the Director of Public Works. Consistent The Project would include parkway, curb, tree, and sidewalk minimums and adherence to standards as approved by the City Department of Public Works. Policy 7.1.1. Encourage BMPs. The City will encourage Best Management Practices for drainage when reviewing all development proposals. The use of bio- swales for conveying storm water on-site through open channels is particularly encouraged for their efficacy and natural, aesthetic quality. Consistent Please refer to Policy 3.2.4 discussion above. Policy 7.1.2. Creek Corridor Enhancement. As part of the development review process for sites that are crossed by one or more creek corridors, the City will require creek Consistent Please refer to Policy 3.2.4 discussion above. Packet Pg 535 15 3.8 LAND USE AND PLANNING 28 Avila Ranch Development Project Final EIR Table 3.8-9. AASP Consistency Summary (Continued) Policy/Goal Consistency Finding Discussion corridor enhancement consisting of: • Removal of non-native vegetation. • Removal of obstructions that impede storm flows and that are detrimental to aquatic species. • Establish additional riparian vegetation. Policy 7.1.3. Offsite Improvements Permissible. When detention requirements cannot be fully met onsite, offsite improvements of creek corridors is permissible, consistent with the requirements of the City’s Waterways Management Plan and Drainage Design Manual. Consistent Please refer to Policy 3.2.4 discussion above. Policy 7.1.4. Porous Paving Encouraged. The use of porous paving to facilitate rainwater percolation is encouraged. As a condition of project approval, the City will require parking lots and paved outdoor storage areas, where practical, to use one or more of the following measures to reduce surface water runoff and aid in groundwater recharge: porous paving; ample landscaped areas that receive surface drainage and that are maintained to facilitate percolation; drainage detention basins with soils that facilitate percolation. Consistent The Project would result in adverse impacts to water quality due to polluted runoff during construction activities, however implementation of MM BIO-2a and MM HYD-2a through -2c would limit these impacts. Further discussion is contained in Impact HYD-2 of Section 3.7, Hydrology and Water Quality. Policy 7.1.5. Onsite Detention Basins and Creek Corridors. Detention basins will be owned by the subdivider, a property owners’ association, or a major nonresidential parcel owner, and will be maintained by an owners’ association or a special district. Ownership and maintenance of minor waterways will be the same, with a City easement for open space and, where trails occur, public access. Consistent Please refer to Policy 3.2.4 discussion above. Policy 7.9.1: Adequate Fire Suppression Services and Facilities. The City shall provide adequate fire suppression services and facilities to the Airport Area, consistent with the Safety Element of the General Plan, by completing area transportation improvements, co- locating City fire services with existing Consistent An Interim Fire Station would be implemented by the Project at the intersection of Earthwood Lane and Venture Drive within the Airport Area during Phase 3, and would be subject to the City’s approval and consistent with the General Plan’s Safety Element and San Luis Obispo Fire Department Master Plan Packet Pg 536 15 3.8 LAND USE AND PLANNING (POLICY CONSISTENCY PORTION) Avila Ranch Development Project 29 Final EIR Table 3.8-9. AASP Consistency Summary (Continued) Policy/Goal Consistency Finding Discussion CALFIRE facilities located on Broad Street, and/or establishing a permanent facility within the Airport Area. (2016). This fire station would remain operational until establishment of the City’s fifth fire station to serve the southern region of the City. Additional discussion of this item is contained within Section 3.11, Public Services. Policy 7.9.3 Interim Safety Improvements. Until a permanent facility is developed that enables the City to achieve its response travel time objectives, new development in the Airport Area may be required to finance other improvements that will contribute to alleviating current deficiencies, as identified in the San Luis Obispo Fire Department Master Plan (2009). This policy will be implemented on a case by case basis through conditions of approval when project specific fire and life safety impacts are identified. The Avila Ranch Project may provide an interim fire and/or emergency response substation at the intersection of Earthwood Lane and Venture Drive. Such facilities shall be to the satisfaction of the City Fire Chief. Consistent Please refer to Policy 7.9.1 discussion above. Packet Pg 537 15 P:\161000s\161181AvilaRanch\Feasibility Analysis\Draft Avila Ranch Feasibility Memorandum_09-01-17.docx D RAFT M EMORANDUM 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: September 1, 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). Packet Pg 538 15 Draft Memorandum September 1, 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 $67.1 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 $34.9 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 $67,102,134 City and Developer estimates b. Avila Ranch “Fair Share” $47,489,404 City TDM, EIR, and Conditions of Approval c. Development Agreement Funding Commitment $56,976,944 As referenced in Development Agreement d. Developer Funding above “Fair Share” $9,487,540 (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. Packet Pg 539 15 Draft Memorandum September 1, 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 Packet Pg 540 15 Draft Memorandum September 1, 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. Packet Pg 541 15 Draft Memorandum September 1, 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 $34.9 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 $11,799,000 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)$34,947,000 Sources: Avila Ranch LLC; Kosmont Companies; Economic & Planning Systems, Inc. Packet Pg 542 15 Draft Memorandum September 1, 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 $34.9 million, substantially outweigh the estimated $4 million benefit of the Development Agreement to the Avila Ranch Developer. Packet Pg 543 15 Page intentionally left blank. Packet Pg 544 15 Carrie, Gallagher City Clerk City of San Luis Obispo September 9, 2017 3267696 ix'-'.EIVED ! S t P 1 2017 ,'to cuy z_1_.i_ 1C . THENewspaper of the Central Coast OfteFffOF SAN LUIS OBISPO CITY COUNCIL MBUNE NOTICE OF PUBLIC HEARING The San Luis Obispo City Council invites all interested persons to attend a public 3825 South Higuera • Post Office Box 112 • San Luis Obispo, Californi hearing on Tuesday, September 19, 2017, at 6:00 p.m. In the City Hall Coun- cil Chamber, 990 Palm'Street, San Luis In The Su Superior Court of The State of California p Obispo, California, relative to the follow- Ing: In and for the County of San Luis Obispo BCH DE)t9LOPhAEHT PROJECT AD #3267896 Public hearing to consider the Avila Ranch project, including 1) Related Entitlements, CITY OF SAN LUIS OBISPO 2) The certification of the Final Environmen- tal Impact Report (EICand Resolution of Intention to form a Coo mmunity Facilities District (CFC]). Project entitlements include: 1) General Plan Amendment, 2) Specific Plan Amendment, 3) Rezone, 4) Develop - STATE OF CALIFORNIA meet Plan; 5) Vesting Tentative Tract Map, and 6) Development Agreement. Ds- ss. veiopment plan for the site includes up to County of San Luis Obispo 720 residential units; 15,000 square feet of neighborhood commercial development; and approximately 18 acres of parks, with 53 acres of the site to remaln in open I am a citizen of the United States and a resident of the space. Project Address: 175 Venture Drive Countyaforesaid- I am over the age of eighteen and not � g g case 0 ; SBDENP 1319-2015, 042-215 SPEC/ ER 13111-2015; SBDV 2042-2015; OTHR 0465 interested in the above entitled matter; I am now, and at 2017; Special Focus Area SP-4; Avil all times embraced in the publication herein mentioned Ranch, LLC, app Iloan L Prior recommends- tions: The Planning Commission has rec- was, the principal clerk of the printers and publishers of ommShe Council approve the projecctl eencntitlemenntsts including certification THE TRIBUNE, a newspaper of general Circulation, of the EIR. printed and published daily at the City of San Luis Obispo in the above named county and state; that notice at which the annexed clippings is a true copy, was published in the above-named newspaper and not in any supplement thereof — on the following dates to wit; r .. . SEPTEMBER 9, 2017 that said newspaper was duly and regularly ascertained and established a newspaper of general circulation by Decree entered in the Superior Court of San Luis Obispo County, State of California, on June 9, 1952, Case #19139 under the Government Code of the State of California. For more information on this item, you are invited to contact Tyler Corey of the City's I certify (or declare) under the penalty of perjury that the Community Development Department at (805) 781-7169 or by email attcorev®slo foregoing is true and correct.ig yr. r n� The City Council may also discuss other p (V� hearings or business items before or after the items listed above. If you challenge the re of Principal Clerk (Sf n g p ) proposed project in court, you may be limit- DATE: SEPTEMBER 9, 2017 ed to raising only those issues you or someone else raised at the public hearing AD COST: $250.56 described in this notice, or in written corre- spondence delivered to the City Council at, or prior to, the public hearing. Reports for this meeting will be available for review in the City Clerk's Office and on- line at www.slocity.org on Wednesday, Sspteirrber 13, 2017. Please call the City Clark's Office at (805) 781-7100 for more Information. The City Council meeting will be televised live on Charter Cable Chan- nel 20 and live streaming on www.slocity. Carrie, Gallagher City Clerk City of San Luis Obispo September 9, 2017 3267696 Avila Ranch Project175 Venture DriveGENP 1319-2015SPEC/ER-1318-2015SBDV 2042-2015OTHR 0455-2017Public Hearing for the Avila Ranch ProjectSeptember 19, 2017Applicant: Avila Ranch, LLCRepresentative: Stephen Peck09-19-2017, Item 15 - Staff Presentation Recommendation1. Adopt a Resolution certifying the Final EIR for, and approval of, the Avila Ranch Development Plan, Airport Area Specific Plan Amendment, General Plan Amendment, and Vesting Tentative Tract Map; and2. Introduce an Ordinance changing the zoning of the property from Business Park/Specific Plan (BP-SP) and Conservation/Open Space/Specific Plan (C/OS-SP) to be consistent with the Avila Ranch Development Plan and with the General Plan and Airport Area Specific Plan as amended; and3. Introduce an Ordinance to adopt a Development Agreement, as amended, between the City of San Luis Obispo and Avila Ranch, LLC that implements the above entitlements; and 4. Adopt a Resolution of Intention to establish a Community Facilities District (CFD) to finance facilities and services necessary to implement the above entitlements and to levy a special tax for that purpose against parcels located in the Avila Ranch Development Plan. 209-19-2017, Item 15 - Staff Presentation 3Project Summary09-19-2017, Item 15 - Staff Presentation Project Description4General Plan Amendment, Specific Plan Amendment, Rezone, Development Plan, Vesting Tentative Tract Map and Development Agreement for the 150-acre project siteDevelopment of the property would include: Up to 720 low, medium, and higher density residences15,000 square feet of commercial useRoughly 50% of site would remain in open space & parksTank Farm Creek would be restoredExtension of Buckley Road, Venture Drive, and Horizon and Earthwood (Jespersen) Lanes Specific Plan and Development Plan will guide land use, circulation, parks and open space, design, and infrastructureDevelopment Agreement09-19-2017, Item 15 - Staff Presentation Airport Area: Proposed Land Use Designations509-19-2017, Item 15 - Staff Presentation Development Plan (Mitigated Project Alternative)6“Mitigated Project Alternative” is the projectRevises the originally proposed project Incorporates key EIR mitigation measuresIncludes advisory body input09-19-2017, Item 15 - Staff Presentation 7Advisory Body Review and Recommendations09-19-2017, Item 15 - Staff Presentation Planning Commission Review 8Considered on nine occasions from 2015-17Twice to review preliminary draft version of the projectThree times during the EIR processFour times to consider the current project (6-28, 6-29, 7-12, and 8-9-17) Recommendation of approval on August 9, 2017Includes all entitlements, including map as conditionedIncludes additional recommendations to modify the project (related to affordable housing and application of CFD tax; in staff report)09-19-2017, Item 15 - Staff Presentation Previous City Advisory Body Review9Bicycle Advisory Committee (BAC)September 17, 2015. Preliminary Draft Plan reviewNovember 19, 2015. Conceptual concurrence with Draft Plan as revised December 1, 2016. BAC reviewed the project during the Draft EIR public comment period (Condition 109 requires Buckley bike bridge over creek)Parks and Recreation Commission (PRC)February 3, 2016. Preliminary Draft SP Review; input reflected in EIR and revised SPNovember 4, 2016. PRC reviews revised PlanJanuary 4, 2017. PRC determines revised Plan consistent with General Plan policiesArchitectural Review Commission (ARC)February 1, 2016. Initial Review of Draft Design Guidelines June 19, 2017. Recommended approval of revised Design Guidelines to City Council09-19-2017, Item 15 - Staff Presentation Airport Land Use Commission Review10December 21, 2016Found project as consistent with ALUP, subject to conditionsThese conditions are now included in updated Development Plan09-19-2017, Item 15 - Staff Presentation 11Final Environmental Impact Report and Resulting Project Modifications09-19-2017, Item 15 - Staff Presentation CEQA Process12August 8, 2015. Notice of Preparation/Initial StudyAugust 26, 2015. EIR Scoping MeetingNovember 23, 2016. Draft EIR released (45-day review period; subsequently extended to 52 days)January 18, 2017. 52-day public review period ends 09-19-2017, Item 15 - Staff Presentation CEQA Process13February 21, 2017. Portion of DEIR (Energy Demand Impacts section) recirculated for 45 days April 7, 2017. Recirculation public review period endsMarch through May 2017. Responses to comments lead to modification of some analysis and mitigation measures. No new impacts introduced, or changes in the level of severity of previously-identified impacts. June 13, 2017. Final EIR released, including responses to comments and changes from Draft EIR09-19-2017, Item 15 - Staff Presentation CEQA Environmental Resources Analyzed in Final EIRAesthetics & Visual ResourcesAgricultural ResourcesAir Quality & Greenhouse Gas EmissionsBiological ResourcesCultural ResourcesHazards & Hazardous MaterialsHydrology & Water QualityLand Use & PlanningNoisePopulation & HousingPublic ServicesTransportation & TrafficUtilities1409-19-2017, Item 15 - Staff Presentation Final EIR Conclusions15No new impacts or change in level of severity of previously identified impactsPrimary change to Draft EIR –Refinement of Mitigation MeasuresSignificant and Unavoidable (Class I) Impacts remain the same as in Draft EIRSpecific Plan incorporates mitigation measures 09-19-2017, Item 15 - Staff Presentation Significant and Unavoidable (Class I) Impacts16Agricultural ResourcesAG-1. Conversion of historically cultivated farmland.Cumulative loss of agricultural soilsAir QualityAQ-1. Construction-related air quality impacts.AQ-2. Long-term air quality impactsAQ-5. Potential inconsistency with the Clean Air PlanCumulative air quality impacts09-19-2017, Item 15 - Staff Presentation Significant and Unavoidable (Class I) Impacts17NoiseNO-1. Short-term construction noise impacts. Transportation and TrafficTRANS-5. Operation at the intersection of Buckley/SR 227.TRANS-13. Cumulative impacts at Buckley/SR 227. 09-19-2017, Item 15 - Staff Presentation Project Modifications from Advisory Review/EIR18“Mitigated Project Alternative” is now the project under considerationRevises the originally proposed project Incorporates key EIR mitigation measuresIncludes advisory body input09-19-2017, Item 15 - Staff Presentation Project Modifications from Advisory Review/EIR19Increased affordability“Pocket Cottage” (in R-2); “duplex” approach (in R-3)Inclusionary Housing71 units32 low income units provided (23 required)Majority of units in phases 1-3Dedicated 1.2 acre site (1 acre required) for 24 unit low income projectWorkforce Housing25 units provided (none required) (121-160% of area median income)10 year deed restriction that resets$500,000 revolving down payment assistance fund09-19-2017, Item 15 - Staff Presentation Project Modifications from Advisory Review/EIR20Revised commercial minimizes traffic and parking impactsMore contiguous Open SpaceStreet layout modificationsEnergy efficiency provisionsTank Farm CreekNot re-aligning the creekIncreased setbacksAirport Safety (more open space; no homes in S-1b zone)09-19-2017, Item 15 - Staff Presentation Project Modifications from Advisory Review/EIR21Now includes key offsite phased transportation improvementsHorizon Lane extension in Phase 4Left turn restrictions at Vachell Lane/South Higuera Street in Phase 2Temporary restrictions to vehicle site access from Venture Drive/Vachell Lane and Earthwood Lane during Phase 1South Higuera Street/Suburban Road intersection improvementsImprovements to Horizon Lane as residential collectorImprovements to Suburban Road as commercial collector09-19-2017, Item 15 - Staff Presentation Final EIR Certification and CEQA Findings 22Final EIR must be certified to allow project approvalIncludes Mitigation Monitoring and Reporting ProgramCEQA Findings must be adoptedFindings are the link between the FEIR and the projectDescribes how the mitigation measures are carried forward in the projectIncludes a Statement of Overriding Considerations for Significant Unavoidable (Class I) impactsIncluded as part of Resolution09-19-2017, Item 15 - Staff Presentation Statement of Overriding Considerations 23Provision of new Residential and Commercial UsesProvision of a Variety of Housing Types for all Income LevelsOpen Space and Agricultural ProtectionProtection and Restoration of Tank Farm CreekProvision of Park and Recreational FacilitiesWell-Planned Neighborhood Would Reduce Per-Capita Vehicle TripsProvision of New JobsSales TaxImplementation of the General Plan09-19-2017, Item 15 - Staff Presentation 24General Plan Guidance andPolicy Consistency09-19-2017, Item 15 - Staff Presentation Land Use Element Policy 8.1.62509-19-2017, Item 15 - Staff Presentation Land Use Element Policy 8.1.626This area will be developed as primarily a residential neighborhood development with supporting neighborhood commercial, park, recreation facilities, and open space/resource protection.Within the project, emphasis should be on providing a complete range of housing types and affordabilities. 09-19-2017, Item 15 - Staff Presentation Policy Consistency27Key General Plan PoliciesDiscussed and Analyzed in Section 3.8 of the Final EIRAlso included as an attachment to the staff reportFEIR Consistency AnalysisProject is Consistentwith all City policies with prescribed mitigation measures09-19-2017, Item 15 - Staff Presentation 28Development Agreement09-19-2017, Item 15 - Staff Presentation Development Agreement – General29The Development Agreement:-Is a Contract between the City and the Developer-Provides certainty in the development process -Protects both the City and the Developer-Covers the general terms and conditions of the agreement-Generally does not include requirements that are part of the Conditions of Approval or the FEIR-Allows the City to secure “Extraordinary” public benefit that the City would not be able to otherwise secure 09-19-2017, Item 15 - Staff Presentation Development Agreement – Deal Points30The length or term of the agreement is 20 years with a possible 10-year extensionCity to establish a CFD to help finance the project.Developer will establish a “backstop” funding mechanism to protect the City Developer has agreed to pay the new AB1600 fees Developer is required to exceed both existing and anticipated regulatory requirements related to sustainabilityDeveloper will complete phases 1 & 2 of the project within seven years of the effective date 09-19-2017, Item 15 - Staff Presentation Development Agreement – Deal Points31Water conservation and allotment requirements from the Water Shortage Contingency Plan applied citywide will apply to the new residentsDefines the sources of reimbursement as well as the “fair share” of the required $66,672,134 in infrastructure. Developer will build $11,369,000 of infrastructure beyond their fair shareDeveloper is providing housing and incentives for Affordable and Workforce housing beyond what is required by the CityCity is receiving approximately $30,000,000 more in extraordinary public benefits than the Developer is receiving in benefits from the Development Agreement09-19-2017, Item 15 - Staff Presentation Extraordinary Public Benefit3209-19-2017, Item 15 - Staff Presentation 33Community Facilities District09-19-2017, Item 15 - Staff Presentation Definition34Community Facility District (CFD) was enabled by Community Facilities Act of 1982Allows local jurisdictions to levy special tax to fund specified municipal services and infrastructure improvementsSpecial tax subject to Proposition 218 (two-thirds voter approval or, in unoccupied areas, landowner approval)Widely used by local jurisdictions during past 30 years in California No CFD previously formed in San Luis Obispo09-19-2017, Item 15 - Staff Presentation City Policy and Approach35City has adopted CFD Policies and Procedures that guide CFD formationKey policy establishes a “maximum aggregate” property tax rate of 1.8 percent of assessed valuation Tax rate includes the 1.0 percent base rate established by Proposition 13 plus authorized overrides (e.g. general obligation bonds) and other assessments or special taxesOther CFDs may be formed subsequent to the Avila Ranch CFD in other developing portions of the City09-19-2017, Item 15 - Staff Presentation Avila Ranch CFD Purpose36No City property tax in Avila Ranch area due to Property Tax Exchange Agreement with CountyFiscal Analysis indicates a recurring “fiscal deficit” (costs exceeding revenues)The Avila Ranch Development Plan provides a high standard for local infrastructure and facilities that require maintenance and over time, replacementDeveloper funding advances for infrastructure above “fair share” cost allocation subject to reimbursement 09-19-2017, Item 15 - Staff Presentation Proposed Special Tax3709-19-2017, Item 15 - Staff Presentation CFD Formation38Proposed special tax based upon detailed technical analysis of service and infrastructure costs and also agreements reached with Project ApplicantFormation process follows precise Statutory requirementsTonight’s recommended action, adoption of Resolution of Formation, officially initiates the formation processFormation is official following Resolution of Formation, election (official landowner approval) and adoption of special tax ordinance09-19-2017, Item 15 - Staff Presentation Next Steps39Council to Consider Second Reading of Ordinances forRezoneDevelopment AgreementLevy of Special TaxCouncil to Consider Adoption of Resolution of Formation establishing CFD and Ordinance levying special taxAB 1600 Mitigation Fee Program UpdatePlanning Commission and City Council study sessionsCity Council to approve update; required to implement Development PlanProject Development09-19-2017, Item 15 - Staff Presentation Recommendation1. Adopt a Resolution certifying the Final EIR for, and approval of, the Avila Ranch Development Plan, Airport Area Specific Plan Amendment, General Plan Amendment, and Vesting Tentative Tract Map; and2. Introduce an Ordinance changing the zoning of the property from Business Park/Specific Plan (BP-SP) and Conservation/Open Space/Specific Plan (C/OS-SP) to be consistent with the Avila Ranch Development Plan and with the General Plan and Airport Area Specific Plan as amended; and3. Introduce an Ordinance to adopt a Development Agreement, as amended, between the City of San Luis Obispo and Avila Ranch, LLC that implements the above entitlements; and 4. Adopt a Resolution of Intention to establish a Community Facilities District (CFD) to finance facilities and services necessary to implement the above entitlements and to levy a special tax for that purpose against parcels located in the Avila Ranch Development Plan. 4009-19-2017, Item 15 - Staff Presentation Buckley Road41Buckley Road is entirely under the jurisdiction of the County who maintains and monitors operations on Buckley Road, including traffic safety.Safety and level of service concerns regarding Buckley Road were raised during the public hearing process for the project.The EIR evaluated these issues and concluded there were no impacts. County Public Works letter of August 23, 2017 confirms the findings and conclusions of the EIR.SLOCOG and County working on solutions to address SR 227/Buckley Road improvements outside City jurisdiction.09-19-2017, Item 15 - Staff Presentation Summary of Infrastructure Funding 42CT09-19-2017, Item 15 - Staff Presentation Slide 42CT19 keep as abackup slide?Corey, Tyler, 9/15/201709-19-2017, Item 15 - Staff Presentation Summary of Infrastructure Funding43Summary of Infrastructure FundingType of InfrastructureTotal Project Costs [1] Avila Ranch Pro Rata Share Total Cost of Projects Built by Avila Ranch Additional Mitigation or Impact Fees Being Paid Amount of Potential Private Reimbursement Amount of Potential Impact Fee Credit for Built Projects Final Out of Pocket for Avila Ranch Transportation $36,804,884 $17,622,154 $20,796,500 $5,883,194 ($561,350) ($3,759,000) $22,359,344 Parks $6,645,500 $6,645,500 $6,645,500 $6,645,500 Water and Sewer $427,500 $427,500 $427,500 $427,500 Public Safety $1,346,250 $1,346,250 $1,346,250 $1,346,250 Intract Improvements $20,896,000 $20,896,000 $20,896,000 $20,896,000 Offsite Improvements $552,000 $552,000 $552,000 $552,000 Total Infrastructure Expenses $66,672,134 $47,489,404 $50,663,750 $5,883,194 ($561,350) ($3,759,000) $52,226,594 CT2009-19-2017, Item 15 - Staff Presentation Slide 43CT20 back up slide?Corey, Tyler, 9/15/201709-19-2017, Item 15 - Staff Presentation Development Agreement – Minor Changes44Minor changes respond to recent legal decision regarding taxation (Russell City Energy v. City of Hayward)Case law holds that a City may not contractually agree to withhold certain taxes on a development – this would violate Section 31 of Article XIII of California ConstitutionSection 5.04 (Taxes and Assessments) is modified to be consistent with case law, as follows:Sections 5.04.1(b) and (c) are removedThese sections had given the City latitude to impose additional taxes on the development under certain conditions after the effective date of the Development Agreement, and to be able to increase the amount of such taxes under certain conditionsRemaining portions of Section 5.04 regarding taxes and assessments would remain in force09-19-2017, Item 15 - Staff Presentation Buckley Road/Tank Farm Creek Bike Connection4509-19-2017, Item 15 - Staff Presentation 09-19-2017, Item 15 - Applicant Presentation PROJECT HISTORYZoned for Business Park in the County2000AASP with Business Park2005Annexed into City 2008Designated for Housing in Housing Element 2010Approved in 2014 LUCE for Housing2014Review Processes to Date:Planning Commission Review6Airport Land Use Commission5Park and Recreation Commission4Bike Committee5City Council Review2Community Meetings                                           77 (and recently)Community Advisory Group6Approvals to DateAirport Land Use Commission 2016Park and Recreation Commission20172We listened, we learned, we modified the project in response…09-19-2017, Item 15 - Applicant Presentation 309-19-2017, Item 15 - Applicant Presentation ProjectAverage SizeSerra Meadows 1020 3043434318 2       1,788 Toscano 10 20 8 16 34 32 32       1,741 Righetti Ranch/Jones 1530 21642186383838222222111211       1,768 Avivo 78 39       1,658 Terraza 555533       1,691 SLO Terrace612       1,662 Avila Ranch30 25 25 62 39 109 70 55 93 160 50       1,477 Price Range $    200,000  $    250,000  $    300,000  $    350,000  $    400,000  $    450,000  $    500,000  $    550,000  $    600,000  $    650,000  $    700,000  $    750,000  $    800,000  $    850,000  $    900,000  $    950,000  $ 1,000,000  $ 1,050,000  $ 1,100,000 Project Price DistributionMIX OF HOUSING/PRICE RANGES4Above Workforce“Workforce”ModLow•58% of Avila Ranch is Targeted to Workforce and Below Compared to 36% For Other Current and Recent Projects.•Fills the “Missing Middle” Gap. Skews Unit Sizes and Prices Lower.•Need is in Total Supply and Diversity of Unit Size and Type.“The City lacks a sufficient range of housing oriented towards entry‐level through executive‐level employees” City of SLO ED Strategic PlanMissing MiddleMissing Middle09-19-2017, Item 15 - Applicant Presentation HOUSING – R-15o101 unitso15% of total unitso4,000 – 7,500 sf lotso7 units/ gross acreoVariety of product types oBoth alley & street access09-19-2017, Item 15 - Applicant Presentation R-1 SITE PLAN609-19-2017, Item 15 - Applicant Presentation HOUSING – R-27o297 units; 8.6 units/ gross acreoMajority workforce housingoDetached dwellingsoStreetscape appearance like R‐1oProduct Types:•Linear Courts•Pocket Cottage•Motor Court09-19-2017, Item 15 - Applicant Presentation POCKET CLUSTER AND COTTAGES809-19-2017, Item 15 - Applicant Presentation 9R-2 Neighborhood Plans09-19-2017, Item 15 - Applicant Presentation 10R-2/R-4 Neighborhood09-19-2017, Item 15 - Applicant Presentation HOUSING – R-311o197 unitso16.75 Units/Gross AcresoParking Lot EV ChargingoProduct Types:•Attached townhomes; &•Stack flat apartments09-19-2017, Item 15 - Applicant Presentation HOUSING – R-412o125 unitsoStacked flat apartmentsoClose to shopping, services, jobs & transitoOn‐site open spaceo26.5 Units/ Gross AcreoOne acre for Lower Income UnitsoParking lot EV Charging09-19-2017, Item 15 - Applicant Presentation NEIGHBORHOOD COMMERCIAL13oShared parking with parkoTransit connection/huboOffice/light service uses (limited retail expected)09-19-2017, Item 15 - Applicant Presentation PARKS14o16.5 Acres Required o18.0 Acres Proposed •9.5 Ac Neighborhood Park•8.5 Ac Mini/Pocket ParksoA Mini‐park for Each NeighborhoodoFour times average City park acreage 09-19-2017, Item 15 - Applicant Presentation oA Wide Variety of Features•Soccer •Tennis•Pickleball•Skate Park•Baseball•Dog Park (Small and Large)•Community Meeting Places•Sculpture Garden•Farmers Market•Basketball15NEIGHBORHOOD PARK FEATURES09-19-2017, Item 15 - Applicant Presentation BUCKLEY ROADBuckley Road Extension completes long‐planned circulation need.Impact on Buckley east of project is small, 2.7% of traffic at Buckley/227.Davenport Creek/Buckley Improvements Part of Development Agreement (Since Not Required by CEQA or County Standards).Buckley Road Extension not required for Phase 1, but will be installed as soon as possible if right of way is secured earlier.1609-19-2017, Item 15 - Applicant Presentation BUCKLEY EXTENSION17•Class I and Class II bike connections to Octagon Barn09-19-2017, Item 15 - Applicant Presentation 18Traffic Improvements09-19-2017, Item 15 - Applicant Presentation 19Project Bike Facilities09-19-2017, Item 15 - Applicant Presentation FLOODING/STORM DRAINAGE•Ponding Occurs on the SW Corner of Site, Primarily Due to “Back‐Up” Flows from Properties South of the Project.•Findings from Hydrology Study•Construction of the Project  per the MPA Will Result in a 12.3% Reduction in Peak Flood Flows from the Site, and a Reduction in the Flood Elevation in the Southwest Portion of the Site (See Table 3.7‐5 of the Draft EIR, and Master Response No. 3 of the Final EIR). •Continuation of the Existing Land Use Will Do Nothing to Address This Issue.•Flood Flows Under the MPA Would be Confined to the Tank Farm Corridor (Where They Belong).•The Remedy to the Problem South of Buckley Is To Have County Flood Control District Zone 9 or Property Owners South of Buckley Implement Improvements to the East Fork of San Luis Creek.•The Project Substantially Improves Onsite Flooding Conditions, and Offsite Conditions.•The Project Provides a Secondary Way Around the Flooded Area; Project Traffic Has Alternate Routes2009-19-2017, Item 15 - Applicant Presentation 2109-19-2017, Item 15 - Applicant Presentation NEIGHBORHOOD COMPATIBILITY•EIR concluded that there are no noise, light, glare, or other compatibility issues with existing or future Business Park/Light Industrial uses to the north and east.•Special features and design requirements have been added to the Development Plan’s Design Guidelines and Requirements to address any complaints or issues:•Added setbacks along R‐4 property•Block wall to the north and east•20‐foot landscaped buffer along northern property line•Orientation of bedrooms/noise sensitive areas away from east and north elevations•Solar canopies in R‐4 parking lots•Web‐based Enhanced Disclosures and in all Purchase and Sale                                        Agreements, and in property title documents.2209-19-2017, Item 15 - Applicant Presentation NEIGHBORHOOD COMPATIBILITY2309-19-2017, Item 15 - Applicant Presentation SPECIAL PROGRAMS•Local Preference Program•Local SLO Workers First. (Current interest list has over 1,100 SLO employees, 76% of those who are on the list).•Most direct way to address existing housing shortage •2/3rds of all SLO employees live out of town•Maximize reduction of current commute trips•Maximum GHG/VMT reductions from the project (35% reduction estimated)•Owner‐Occupant Restrictions in R‐1 and R‐2 Neighborhoods (No rentals for 5 years after initial sale).•“WHIP” Down Payment Assistance Program; 25 initial pocket cottage units targeted to “Workforce” income group. This fund will “revolve” and be used to assist others as a permanent homebuyers assistance program, possibly assisting over 100 families over the next 20 years.2409-19-2017, Item 15 - Applicant Presentation ENERGY “ZNE+”•Meet and exceed anticipated 2019 Energy Code revisions•100% PV onsite electrical generation for building demands (residential, commercial, parks)•Exceed 2019 code energy efficiency requirements by 15% •New, Special Section 13 of Design Framework•Integration of passive solar, active solar, and energy conservation features•A new paradigm and process. No specific floor plans or solutions; development as part of ARC submittals after entitlement•Prototypes developed to demonstrate feasibility in Appendix E of Development Plan, including an all‐electric package•Inclusion in Development Plan makes them mandatory and not aspirational suggestions•Not “greenwashing”: proven to work with prototypical packages.  Design packages are cost‐effective (any increased costs are covered by longer term savings). Results in real VMT and GHG reductions, and long term cost savings to homeowners and renters2509-19-2017, Item 15 - Applicant Presentation 2609-19-2017, Item 15 - Applicant Presentation