ADOPTED CITY OF SAN LUIS OBISPO SPHERE OF INFLUENCE UPDATE MUNICIPAL SERVICE REVIEW PREPARED BY: SAN LUIS OBISPO LOCAL AGENCY FORMATION COMMISSION

Transcription

1 ADOPTED CITY OF SAN LUIS OBISPO SPHERE OF INFLUENCE UPDATE PREPARED BY: SAN LUIS OBISPO LOCAL AGENCY FORMATION COMMISSION DATE: JANUARY 19, 2006

2 CITY OF SAN LUIS OBISPO SOI/MSR SAN LUIS OBISPO LOCAL AGENCY FORMATION COMMISSION COMMISSIONERS Chairwoman Barbara Mann, Special District Member Vice Chairman Katcho Achadjian, County Member Shirley Bianchi, County Member David Brooks, Special District Member Richard Roberts, Public Member Allen Settle, City Member Wendy Scalise, City Member ALTERNATES Tom Murray, Public Member James R. Patterson, County Member Duane Picanco, City Member Vacant, Special District Member STAFF Paul L. Hood, Executive Officer Raymond A. Biering, Legal Counsel David Church, Senior LAFCO Analyst Donna J. Bloyd, Commission Clerk ADOPTED JANUARY 19, 2006

3 CITY OF SAN LUIS OBISPO SOI/MSR TABLE OF CONTENTS CHAPTER I: INTRODUCTION AND EXECUTIVE SUMMARY Introduction Service Review and Sphere of Influence Update Process Actions by LAFCO Executive Summary CHAPTER 2: SPHERE OF INFLUENCE UPDATE Introduction Existing Sphere of Influence Sphere of Influence Study Areas Study Area 1-County Request Study Area 2-Flora & Alrita Streets Study Area 3-Harmony Way Study Area 4-Rural Orcutt Study Area 5-Righetti Hill Study Area 6-Broad Street Commercial Study Area 7-Avila Ranch Area Study Area 8-Los Osos Valley Road / Highway Study Area 9-Cerro San Luis Study Area 10-California Men s Colony Memorandum of Agreement Present and Planned Land Use Present/Probable Need for Public Services Social & Economic Communities of Interest Local SOI Guidelines CHAPTER 3: FACTORS Infrastructure Needs and Deficiencies Growth and Population Financing Constraints and Opportunities Cost-Avoidance Opportunities Opportunities for Rate Structuring Opportunities for Shared Facilities Government Structure Options Management Efficiencies and Budget Information ADOPTED JANUARY 19, 2006

4 CITY OF SAN LUIS OBISPO SOI/MSR Local Accountability and Governance FIGURES Figure 1-1 City of San Luis Obispo Sphere of Influence Figure 2-1 City of San Luis Obispo City Limits & Sphere of Influence Figure 2-2 City of SLO SOI & Planning Commission Recommendation Figure 3-1 City of San Luis Obispo Water Demand Policies Figure 3-2 City of San Luis Obispo Water Use Figure 3-3 Capital Improvement Plan Figure 3-4 North Area Transit Facility Figure 3-5 Sworn Officers per 1,000 People Figure 3-6 San Luis Obispo-Perception of a Safe Community Figure 3-7 Violent Crime Rate Figure 3-8 Property Crime Rate Figure 3-9 Comparative Crime Rate Figure 3-10 City Comparative Violent Crime Rate per 1,000 People Figure 3-11 Greenbelt Area and Sphere of Influence Figure 3-12 Urban Reserve Line Figure 3-13 Revenues and Service Costs Figure 3-14 Fire and Police Stations Figure 3-15 User Fee Activities Figure 3-16 Decision-making Flow Chart Figure 3-17 Highest Rate for Water Figure 3-18 Sample Bill for 20 Units of Water Figure 3-19 Monthly Bill Comparison-Residential Sewer Figure 3-20 San Luis Obispo City Limits Sphere of Influence Figure 3-21 City of San Luis Obispo Organizational Chart TABLES Table 1-1 Staff Recommendation Table 2-1 City of SLO SOI/MSR Property Owner Request Table 2-2 Existing and Potential Land Use Table 2-3 Present and Probable Service Needs Table 3-1 Existing and Proposed Service Providers within SOI Table 3-2 Safe Annual Yield Table 3-3 Potential Supplemental Water Sources ADOPTED JANUARY 19, 2006

5 CITY OF SAN LUIS OBISPO SOI/MSR Table 3-4 Water System Improvements-Capital Improvement Program Table 3-5 Development Impact Fees-Citywide Table 3-6 Transportation Projected Categories Table 3-7 Emergency Response Vehicles Table 3-8 Officers per 1,000 People Table 3-9 Historical and Projected Population Growth Table 3-10 Summary of General Plan Annual Report Table SLOCOG Regional Housing Needs Allocation Table 3-12 Estimated Housing Capacity in Expansion Areas, Table 3-13 Residential Water Rates Comparison Table 3-14 Single Family Sewer Rates APPENDICES Appendix A-References Appendix B-Memorandum of Agreement between the City and County of San Luis Obispo Appendix C- Sphere of Influence Soil Types Appendix D-Past Annexations, ADOPTED JANUARY 19, 2006

6 CHAPTER 1 - INTRODUCTION & EXECUTIVE SUMMARY INTRODUCTION The Cortese/Knox/Hertzberg Local Government Reorganization Act of 2000 (CKH Act) requires the Local Agency Formation Commission (LAFCO) to update the Spheres of Influence (SOI) for all applicable jurisdictions in the County. A Sphere of Influence is defined by Government Code as a plan for the probable physical boundary and service area of a local agency or municipality. A SOI is generally considered a 20-year, longrange planning tool. The Act further requires that a Municipal Service Review (MSR) be conducted prior to, or in conjunction with, the update of a Sphere of Influence. The MSR evaluates the capability of a jurisdiction to serve their existing residents and future development in their Sphere of Influence. A Municipal Service Review (Chapter 3) has been prepared for the City of San Luis Obispo in accordance with Section of the California Government Code. The Service Review evaluates the public services provided by the City and possible changes to the City s Sphere of Influence that are currently under consideration. The Municipal Service Review Guidelines prepared by the State Office of Planning and Research were used to develop information, perform analyses and organize this study. The State Guidelines are advisory in application and are not mandatory. The legislative authority for conducting Service Reviews is provided in section of the CKH Act. The Act states, That in order to prepare and to update Spheres of Influence in accordance with Sphere of Influence a plan for the Section 56425, probable physical LAFCOs are boundary and required to service area of a conduct a MSR of local agency or the municipal municipality. services provided in the County or other appropriate designated area A Service Review must have written determinations that address the nine legislative factors in order to update a Sphere of Influence. Information that addresses each of the nine factors is provided in Chapter Three Municipal Service Review - of this document. The nine factors are listed on the next page. Written Determinations are based on the information and analysis found in Chapter Three. ADOPTED 1-1 JANUARY 19, 2006

7 CHAPTER 1 INTRODUCTION AND EXECUTIVE SUMMARY Nine Service Review Factors 1. Infrastructure Needs & Deficiencies 2. Growth & Population 3. Financing Constraints & Opportunities 4. Cost Avoidance Opportunities 5. Opportunities for Rate Restructuring 6. Opportunities for Shared Facilities 7. Government Structure Options 8. Evaluation of Management Efficiencies 9. Local Accountability & Governance The State Guidelines encourage LAFCOs to compile a variety of information in preparing a Service Review. The State Guidelines suggest that LAFCOs use a significant proposal (constraints analysis, general plan update, master plan, annexation, etc.) as a way to compile the information needed for a Service Review. Also, administrative and organizational information is collected and evaluated. The City provided a variety of plans, studies and other documentation to assist in the preparation of these documents. Other information from current development projects is also used. A complete list of references can be found at the end of this document in Appendix A. SERVICE REVIEW & SPHERE OF INFLUENCE UPDATE PROCESS The CKH Act calls for the Service Review to be completed either prior to or concurrent with the Sphere of Influence Update. The process for updating the City of San Luis Obispo s Sphere of Influence includes several steps: 1. City and County discussion regarding SOI boundaries, development standards, and zoning requirements for the areas of the Sphere to be updated. 2. Consideration by the City and recommendation of a Sphere of Influence. 3. Preparation of a Public Draft Sphere of Influence Update and Municipal Service Review and completion of the environmental review process consistent with the California Environmental Quality Act (CEQA). 4. If agreed to, City and County approval of a Memorandum of Agreement (Appendix B). LAFCO is required by the CKH Act to give great weight to an agreement between the City and the County when considering the Sphere of Influence Update. 5. Public Review and Comment period for all documents. 6. LAFCO Consideration of the Sphere of Influence Update, Municipal Service Review, Memorandum of Agreement, and Environmental Review documentation. ADOPTED 1-2 JANUARY 19, 2006

8 CHAPTER 1 INTRODUCTION AND EXECUTIVE SUMMARY Past LAFCO Actions. The last comprehensive SOI Study for San Luis Obispo was completed in 1984 when the existing sphere was originally adopted. Since that time the following proposals have been considered by LAFCO: Appendix D contains a table that shows the past LAFCO actions. Current LAFCO Action. LAFCO is being asked to consider the following actions as a part of this Sphere of Influence Update: 1) Approve and adopt the environmental documentation pursuant to CEQA 2) Approve the Municipal Service Review for the City of San Luis Obispo; and 3) Approve and adopt the San Luis Obispo Sphere of Influence Update CEQA LAFCO prepared the Initial Study and the resulting Negative Declaration. The Initial Study/Negative Declaration is found after Chapter 3, in the Municipal Service Review, and provides for the environmental review of this Sphere of Influence Update. As indicated earlier, a Sphere of Influence is a plan for probable, physical boundary and service areas of a local agency or jurisdiction. As such, it does not give property inside the Sphere boundary any more development rights than already exist. The Sphere of Influence Boundary is a longrange planning tool that assists LAFCO in making decisions about a jurisdiction s future boundary. The Sphere indicates areas that might be served by the City. It is unknown if an area will ever be annexed to the City. Also, it is often uncertain what type of land use is going to be proposed for a specific area. In some cases, areas already have approved development entitlements and have completed environmental review. The study of impacts associated with the Sphere of Influence is often speculative since it is unclear what type of project might be proposed or if an area will even be annexed in the future. The City or County studies impacts comprehensively when a project-specific environmental review is completed. ADOPTED 1-3 JANUARY 19, 2006

9 CHAPTER 1 INTRODUCTION AND EXECUTIVE SUMMARY EXECUTIVE SUMMARY The following is a summary of the key information contained in this Service Review completed for the City of San Luis Obispo. The nine factors that are required to be addressed by the CKH Act are covered in this summary section. 1. Infrastructure Needs & Deficiencies LAFCO is responsible for determining that an agency requesting SOI amendments is reasonably capable of providing needed resources and basic infrastructure to serve areas within the City and in the Sphere of Influence. It is important that such findings of infrastructure and resource availability occur when revisions to the SOI and annexations occur. In the case of this SOI Update, it is especially prudent for LAFCO to evaluate the present and long-term infrastructure demands and resource availability of the community. LAFCO accomplishes this by evaluating the resources and services that are currently available to a jurisdiction and the ability of a jurisdiction to provide such resources and services in line with increasing demands. Water The City s existing water supply is not adequate to serve the anticipated build out of its General Plan. The Supply/Safe Yield available to the City is currently estimated at 7,500 acre-feet per year. The demand in 2002 was estimated to be 7,216 acre-feet per year. The City anticipates future water demand to be 9,096 acre-feet per year at build out under the existing General Plan. To provide for future development under the existing General Plan the City will need to acquire a supplemental water supply. The City has contracted with the County of San Luis Obispo for 3,380 acre-feet per year of the water from the Nacimiento pipeline. The addition of this water supply should provide an adequate supply for build out under the existing General Plan and supplemental water to serve other development. The City s water policies also promote the use of reclaimed water for non-potable uses (1,200 afy). The City s Water Reclamation Facility has been upgraded so that the effluent can now be used directly for landscape, agricultural and other nonpotable uses. The City s polices and implementation strategy found in the Urban Water Management Plan and Water and Wastewater Management Element provide for effective management of water resources in the short and long term. Wastewater The treatment system currently has the capacity to process 5.1 million gallons per day of wastewater on an average dry day. The system is operating at 88% of capacity ADOPTED 1-4 JANUARY 19, 2006

10 CHAPTER 1 INTRODUCTION AND EXECUTIVE SUMMARY with an estimated 4.5 million gallons per day currently being processed at the treatment facility. The plant has the capacity to serve a population of up to 50,000. The City is studying the options for expansion of the system to provide adequate capacity as the City continues to grow. Serving future developments that are proposed would be studied as part of the environmental review (CEQA) process. Expanding the capacity would likely be required if the City s processing capability was found to be inadequate. Roads Several transportation projects are in the planning stages and are progressing toward construction. These include the Los Osos Valley Road-Highway 101 interchange, the Prado Road-101 interchange, a traffic signal at Broad and Pacific Streets, and signal modifications at Marsh and Santa Rosa and Marsh and Osos Streets. These major projects will provide for the continued upgrade of the City s circulation system. Fire In fiscal year, , the City s Fire Department responded to 2,478 medical situations, 267 fire suppression incidents, 188 hazardous materials incidents, and 1,102 other responses. The City s Fire Department is able to serve the City s emergency response needs, however, expansion of the fire department must be considered as growth and development increase. Police The City of San Luis Obispo provides law enforcement services for the residents of the City. The total budget for the Police Department for fiscal year is $9.6 million. The City has a comparable crime rate compared with other cities in the County and will have the opportunity to add police and fire staff and facilities as needed to cover Sphere of Influence area. 2. Growth & Population San Luis Obispo has experienced relatively low growth over the last several decades. From 1970 to 1980 population increased by 22%, from 1980 to 1990 population increased by 22% and from 1990 to 2000 population growth slowed to 5%. The General Plan assumed an annual growth rate of 1% over the next 20 years. As of 2000, the U.S. Census Bureau estimates that there are 44,174 residents of the City of San Luis Obispo. The 2000 Census shows the total number of housing units as 19,340. The City s General Plan indicates that the population is estimated to be 57,700 at build-out. Please note that the term buildout does not mean the City will stop growing after reaching a particular population or number of dwelling units. It is ADOPTED 1-5 JANUARY 19, 2006

11 CHAPTER 1 INTRODUCTION AND EXECUTIVE SUMMARY a planning term used to help plan for the city s future. The City s Housing Element estimates that the number of housing units increased by 5,872 for areas within and outside the existing boundaries of the City. The total projected population increase is 13,329 people. The Updated SOI is anticipated to include commercial, some residential and large open space areas. The additional SOI areas would increase the City s population if they are eventually annexed into the City. 3. Financing Constraints & Opportunities San Luis Obispo, like most cities, requires new development projects, and in particular annexations, to pay their own way. At the time an annexation is considered for any of the SOI properties, the City has the ability to require a fiscal impact analysis to be prepared to identify the fiscal impacts of the proposed project. The City has in place a capital improvement plan, development impact fees, developerrequired mitigation in the form of infrastructure improvements required to serve new projects, and similar programs to monitor public service needs of new development. It is reasonable to conclude that the City endeavors to avoid long-term financial obligations for a capital improvement or maintenance of new development projects, such as those that would occur in the SOI areas. The City levies a series of development impact fees for new development to address a variety of infrastructure and other needs. All these fees are based on Government Code Section et seq., which requires the agency setting fees to (i) identify the purpose of the fee, (ii) identify the use to which the fees will be put, (iii) determine the reasonable relationship (or nexus ) between the type of development charged the fee, the amount of the fee and its use, and (iv) determine the reasonable relationship between the need for the public facility or improvement and the project upon which the fee is imposed. Fees collected by the City include: fees in-lieu of park land dedication, park development projects, water and sewer capacity and improvement fees, road and circulation fees, public safety fees, and general administrative capital improvement fees. The City would work in coordination with key stakeholders such as the County, and other service providers to complete this analysis. 4. Cost-Avoidance Opportunities The City avoids unnecessary costs by completing a comprehensive budget review and analysis process. ADOPTED 1-6 JANUARY 19, 2006

12 CHAPTER 1 INTRODUCTION AND EXECUTIVE SUMMARY This process involves working with the community to establish goals and objectives, carefully analyzing revenues and expenditures, and close monitoring of the City s financial status. The City of San Luis Obispo provides a full range of services to its residents and business community. The additions of land and new development in the City will increase demands for City services, but it is believed that through the development review process, City needs, both short and long term, can be addressed before annexation proposals are presented for approval by LAFCO. 5. Opportunities for Rate Restructuring The City has just approved (May 2003) a new fees and rates schedule based on a rate study that evaluated the costs of services. The City contracted with a consultant to perform a state-of-the-art analysis of the rates with the purpose of updating their fee schedule in a comprehensive manner. The study addressed the need to maintain the City s services at levels equal to the standards set by the City Council and to maintain effective fiscal, policy and management control of all City Services. This study provides information and guidance to the City Council on how the City can continue as a viable financial entity, finance the services and facilities that its citizens and businesses have come to expect, and yet be able to live with budgetary limits. 6. Opportunities for Shared Facilities The annexation of the proposed SOI area may lead to opportunities for shared infrastructure with the County. At present, the distinction between City and County services in the SOI areas is clear. The SOI area presents an opportunity for the City and County to work together to develop some shared facilities to more effectively serve the public: C Roadway connections C Coordinated open space and agricultural land preservation C Linkages between City and County recreational trails C Preservation and enhancement of Agricultural Lands In the case of roadways, the opportunity to coordinate connections between collector and arterial roadways will enhance regional traffic patterns and will aid in emergency response times. The recreational aspects of trail connections offer opportunities for the City and County to join their recreational resources not only for the benefit of the City residents, but for the general public of the County as well. Coordination of open space corridors that cross over the proposed City- County limit lines will enhance the viability ADOPTED 1-7 JANUARY 19, 2006

13 CHAPTER 1 INTRODUCTION AND EXECUTIVE SUMMARY of habitat from the area and preserve important habitats for generations to come. 7. Government Structure Options A full range of services as described earlier will be available to the citizens of the SOI area. The area will receive increased public works services from inclusion within the SOI. To this degree, the City can better serve development in the SOI area. If development occurs in the SOI areas under County control, it is likely to impact the City s services such as roads, fire and police without the increase in property tax revenues. The challenge of this planning effort is to coordinate the construction of shared infrastructure and improvements so impacts can be mitigated on either side of a City/County limit line. Development of the SOI territories relies on infrastructure available from the City. It is logical that the SOI sites identified herein be included under the SOI, and that the City assume the lead in planning for these sites, consistent with its General Plan. 8. Management Efficiencies The City of San Luis Obispo exhibits the characteristics of a well-run city that operates efficiently and serves residents effectively. The City has also taken advantage of the positive economic times in recent years by building reserves, investing in infrastructure, and preparing for any downturn in the economy. This approach will be tested given the current State fiscal problems. One of the characteristics of a wellmanaged city is a good customer service rating. In the Action for Healthy Communities 2001 Comprehensive Report, the City of San Luis Obispo was found to have the second highest customer service rating of the seven cities in the county. 9. Local Accountability/Governance The City holds workshops and public town hall meetings to address matters with the broadest public input possible. The City conducts public workshops, holds Planning Commission and City Council Hearings, along with providing the required public noticing for all public hearings. The City has maintained relationships with local news media, providing information or interviews as requested. The City maintains regular agenda mailing and distribution lists, in an effort to maintain public dialogue regarding land use and development projects in the community. Information for meetings is made available at the City offices and through subscription services at a nominal fee to service users. The City has a very sophisticated Website that provides a variety of information about the City ADOPTED 1-8 JANUARY 19, 2006

14 CHAPTER 1 INTRODUCTION AND EXECUTIVE SUMMARY Departments and is updated on a regular basis. ADOPTED AREAS Based upon the information contained in Chapters Two and Three of this document, and the environmental determination, LAFCO adopts the updated San Luis Obispo Sphere of Influence to include the areas in Table 1-1 and found on the map on the following page. These areas are described in more detail in Chapter Two- Sphere of Influence Update Table 1-1: Areas Included in SOI Area Acreage Adopted SOI #1 24 Included #2 169 Included #3 31 Excluded #4 105 Wixom Inclusion Hansen Lane-Tiburon Areas Excluded #5 70 Included #6 185 Included #7 519 Included #8 870 Included #9 1,386 Included # Excluded Total 3,328 ADOPTED 1-9 JANUARY 19, 2006

15 CHAPTER 1 INTRODUCTION AND EXECUTIVE SUMMARY ADOPTED 1-10 JANUARY 19, 2006

16 CHAPTER 2 - SPHERE OF INFLUENCE UPDATE INTRODUCTION This Sphere of Influence (SOI) Update chapter is prepared for the City of San Luis Obispo and is based upon the following Municipal Service Review (Chapter 3) that analyzes the City s capability to serve existing and future residents. The SOI Update and Service Review were prepared to meet the requirements of the Cortese/Knox/Hertzberg Local Government Reorganization Act of 2000 (CKH). The fundamental role of the Local Agency Formation Commission, LAFCO, is to implement the CKH Act, consistent with local conditions and circumstances. LAFCO s decisions are guided by the CKH Act, found in Government Code 56000, et seq. The major goals of LAFCO include: Encouraging orderly growth and development which are essential to the social, fiscal, and economic well being of the state; Promoting orderly development by encouraging the logical formation and determination of boundaries and working to provide housing for families of all incomes; Discouraging urban sprawl; Preserving open space and prime agricultural lands by guiding development in a manner that minimizes resource loss; Exercising its authority to ensure that affected populations receive efficient governmental services; Promoting logical formation and boundary modifications that direct the burdens and benefits of additional growth to those local agencies that are best suited to provide necessary services and housing; Making studies and obtaining and furnishing information which will contribute to the logical and reasonable development of local agencies and shaping their development so as to advantageously provide for the present and future needs of each county and its communities; Establishing priorities by assessing and balancing total community services needs with financial resources available to secure and provide community services and encouraging government structures that reflect local circumstances, conditions, and financial resources; Determining whether new or existing agencies can feasibly provide needed services in a more efficient or accountable manner and, where deemed necessary, consider reorganization with other single purpose agencies that provide related services; Updating SOIs as necessary but not less than every five years (effective January 2001); and Conducting a review of all municipal services by county, jurisdiction, region, sub-region or other geographic area prior to, or in conjunction with, SOI updates or the creation of new SOIs. ADOPTED 2-1 JANUARY 19, 2006

17 CHAPTER 2 SPHERE OF INFLUENCE UPDATE To carry out State policies, LAFCO has the power to conduct studies, approve or disapprove proposals, modify boundaries, and impose reasonable terms and conditions on approval of proposals. Existing law does not provide LAFCO with direct land use authority, although some of LAFCO s discretionary actions indirectly affect land use. LAFCO is expected to weigh, balance, deliberate, and set forth the facts and determinations of a specific action when considering a proposal. An important tool used in implementing the CKH Act is the adoption of a Sphere of Influence (SOI) for a jurisdiction. A SOI is defined by Government Code as a plan for the probable physical boundary and service area of a local agency or municipality. A SOI represents an area adjacent to a city or district where a jurisdiction might be reasonably expected to provide services over the next 20 years. This chapter, along with the following Municipal Service Review, provides the basis for updating the City of San Luis Obispo s Sphere of Influence, which is required to be updated every five years. This Sphere of Influence Update chapter addresses the key factors called for in Cortese/Knox/Hertzberg Act by referring to information contained in the Service Review. Also, the following written determinations must be addressed according to section 56425(e)(1-4) of the Cortese/Knox/Hertzberg Act: Present and planned land uses in the area, including agriculture, and open space lands; Present and probable need for public facilities and services in the area; Present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide; and Existence of social or economic communities of interest in the area if the Commission determines that they are relevant to the agency. Existing Sphere of Influence The City s existing Sphere of Influence is 2,211 acres and includes: 64 acres in the Flora-Alrita area, 224 acres in the Orcutt area, 1,100 acres in the Airport area, the 185-acre Dalidio/McBride area, 118-acre Madonna area, and the 520-acre Cal Poly area. Each of these areas represent locations that, over the next 20 years, could reasonably be included as part of the City. The map on the next page shows the existing Sphere of Influence of the City. Within the existing Sphere of Influence several projects are at various phases of the development process: The Orcutt Specific Plan includes residential elements and open space. ADOPTED 2-2 JANUARY 19, 2006

18 CHAPTER 2 SPHERE OF INFLUENCE UPDATE The Specific Plan is being prepared and includes the Righetti Hill, which is not currently part of the Specific Plan. Agape Christian Fellowship Church Weyrich Subdivision The Margarita Development includes major residential development and circulation improvements. The Specific Plan has been approved and the project is in the condition compliance phase. Murphy Subdivision The Airport Area Specific Plan provides standards and policies for future development of the area. The EIR for this plan has been certified by the City and the Plan has been adopted. The City Council approval of the Marketplace project was reversed by voters in April The Dalidio, McBride, and Madonna Gap properties along Highway 101 are encircled by the City. The McBride property was approved for commercial development that includes an auto retail business. The City s General Plan foresees these properties eventually being annexed into the City. Cal Poly is an already developed area that could be annexed to the City upon agreement with City and University officials. The County has approved a number of projects just outside the SOI including: Congregation Beth David FEIR and Conditional Use Permit Maddalena General Plan Amendment Vineyard/Meadowbrook Church FEIR and Conditional Use Permit Avila Ranch Industrial Subdivision and Planned Development ADOPTED 2-3 JANUARY 19, 2006

19 CHAPTER 2 SPHERE OF INFLUENCE UPDATE Figure 2-1: SLO City Limits & SOI ADOPTED 2-4 JANUARY 19, 2006

20 CHAPTER 2 SPHERE OF INFLUENCE UPDATE Sphere of Influence Study Areas For study purposes, the City of San Luis Obispo and LAFCO staff prepared a map that includes ten Study Areas for the Sphere of Influence. The Study Areas are used to help analyze and identify which properties should be added and which should be excluded from the Sphere of Influence. Several property owners adjacent to the City also submitted requests for inclusion into the Sphere of Influence. These requests are summarized in the table below and will be discussed in the Study Area summaries. Table 2-1: City of SLO SOI Update Property Owner Requests Owners Study Acres Area Filipponi / Twissleman 1 14 Cleveland 2 93 Brown 3 13 Godfrey 3 11 Madonna DeVaul 9 73 Beth-David 9 92 The Study Areas are described in more detail on the following pages and include: a map that focuses on the particular area, and the recommendation made by the City Council. The discussion addresses the size and location of the area, current zoning, possible City zoning for each area and other relevant information. Also included is a staff recommendation for each area. The recommendation is based upon the information in Chapter Three, Municipal Service Review, Public Workshops, information provided by the City, and input from a variety of organizations and private citizens. The Study Areas also reflect the additional areas that were added by the City Planning Commission at their June 29, 2005 meeting. Areas that were added included: the Wixom Ranch in Study Area #4, the areas in Study Area #7 south of Buckley and the area adjacent to Highway 101. In Study Area #8 two large parcels and one small parcel adjacent to Highway 101 were also added. The Planning Commission also recommended that the California Men s Colony be excluded from the SOI. The City Council considered the Study Areas at their August 23, 2005 meeting and made recommendations on each of the ten Study Areas. The Council s specific recommendations are found in the discussion of each Study Area that is presented on the following pages. The following map shows the ten study areas evaluated as part of this Sphere of Influence Study. ADOPTED 2-5 JANUARY 19, 2006

21 CHAPTER 2 SPHERE OF INFLUENCE UPDATE Figure 2-2: Study Areas and City Planning Commission Recommendation ADOPTED 2-6 JANUARY 19, 2006

22 CHAPTER 2 SPHERE OF INFLUENCE UPDATE SOI Area #1 County Request. This 24-acre area lies just east of the City above Johnson Avenue behind the former County General Hospital. The area is adjacent to the City Limits on the west with the existing SOI to the south. As shown, the existing City Limit splits the parcel lines of the Countyowned property. The County of San Luis Obispo owns two parcels and two parcels are owned privately. The County has requested that their property be added to the City s Sphere of Influence. The private properties have been included in the Study Area because these private parcels are similar in elevation and topography to the County-owned parcels. One private residence is located in the Study Area. Most of the area proposed for inclusion in the SOI is steep and would likely become part of the City s greenbelt if development were proposed. For hillside areas above Johnson Avenue, from Tanglewood to Lizzie Street, a 460-foot development limit applies, reflecting water service limits of existing infrastructure. The City s policies would require that open space in this area be set aside at a ratio of 4 units of open space to 1 unit of developed area. City Council Recommendation. This area should be included in the SOI. LAFCO Staff Recommendation. The SOI should include Area One. This area is a logical extension of the City s boundaries. This would allow the entire parcel to be brought into the City and would eventually adjust the City Limit to include the whole parcel. Inclusion would also provide the City and property owners with more flexibility in terms of future development proposals (i.e. meeting the 4:1 open space requirement). Commission Action. The Commission included this area within the SOI. SOI Area #1 Study Area Existing SOI City Limit URL 24 acres - 4 parcels County Request-14 ac 4:1 Open Space Req. Steep Slopes 1 existing residence URL generally follows the 460 ft. contour ADOPTED 2-7 JANUARY 19, 2006

23 CHAPTER 2 SPHERE OF INFLUENCE UPDATE SOI Area #2 Flora-Alrita Streets. This 169-acre area is adjacent to the City s Sphere of Influence and is located above Flora and Alrita Streets. The area is identified in the General Plan as the Goldtree area. The area was studied for inclusion in the City s Sphere of Influence because of the potential for additional residential development on the lower slopes of the parcels already in the Sphere of Influence, and the possibility of securing open space dedication on the upper slopes. A property owner request was received to include the properties shown in black on the map below. Providing water service to these parcels is made very difficult because of their height and steep terrain. Most of the area is above the 460-foot contour, the City s hillside development limit. Water service could be provided, but the system would have to be properly designed and would be expensive. The City requires a 4 to 1 ratio of open space to developable land for this area, significantly limiting the size of development that could occur on the site. City Council Recommendation. This area should be included in the SOI. LAFCO Staff Recommendation. The SOI should include Area Two. This area is a logical extension of the City s boundaries. The City s Land Use and Open Space policies and standards would manage any development proposed in this area. The Existing SOI may be able to develop several residences in the area because they can meet the City s open space requirements. Inclusion would also provide the City and property owners with more flexibility in terms of future development proposals (i.e. meeting the 4:1 open space requirement). The City is capable of providing any services needed to serve the area. The City requires that the developer pay for infrastructure improvements and other needed facilities and resources. Commission Action. The Commission included this area within the SOI. SOI Area #2 Study Area Existing SOI Request City Limit URL 169 acres - 9 parcels Filipponi-5 acres Twissleman-88 acres Cleveland-13 acres Undeveloped Land 9 residences inside the SOI 1 residence outside SOI ADOPTED 2-8 JANUARY 19, 2006

24 CHAPTER 2 SPHERE OF INFLUENCE UPDATE SOI Area #3 Harmony Way. This area includes 31.5 acres located just north of Harmony Way, south of to the existing SOI, on the east side of the City. Property owners of two of the parcels requested inclusion into the SOI. One property owner has submitted an application to the City for review of a General Plan Amendment (GPA). The GPA would include rezoning, relocation of the URL, annexation and a tract map. The proposed tract map consists of 12 parcels with one large parcel (8 acres) dedicated to open space. These actions are being considered by the City s Community Development Department. The adjacent two parcels were studied as a logical extension of the SOI. The City requires a 4 to 1 ratio of open space to developable land for this area, significantly reducing the size of development that could occur on the site. Several property owners in the area spoke against including area in the SOI because of the impacts further development would have of their existing residences. City Council Recommendation. This area should be excluded from the SOI. LAFCO Staff Recommendation. The SOI should not include Area Three. If the General Plan Amendment being reviewed by the City is approved, this area can be revisited for inclusion into the SOI. The General Plan Amendment is likely to be controversial because of opposition from neighboring properties. Including this area in the Sphere of Influence is premature because the General Plan Amendment has yet to be considered by the City. Commission Action. The Commission excluded this area within the SOI. SOI Area #3 Study Area Request City Limit URL 31 acres Proposed GPA-11.5 Vacant Land ADOPTED 2-9 JANUARY 19, 2006

25 CHAPTER 2 SPHERE OF INFLUENCE UPDATE SOI Area #4 Rural Orcutt. This 104-acre area is located northeast of Orcutt Road and is adjacent to the City s existing Sphere of Influence. The area is zoned Residential Rural and is largely built-out under the 1 unit per 5 acre density allowed under County standards. The area has approximately 18 existing residences. The County s General Plan designates the north parcels of the study area as being part of the Urban Reserve Area, while the southern portion of the Study Area is not in the County s Urban Reserve Area and is outside the City s Urban Reserve Line. It is unlikely that increased development of these parcels would be able to occur unless they were annexed to the City. In the Kuden-Tiburon area the parcels are generally 5-acre lots that have large homes and accessory structures that have been already constructed. The Hansen Lane area to the South has older homes that are, in general, smaller with a more rural environment. The need for and availability of City services in this area would need to be carefully studied prior to annexation. The City is unlikely to annex these areas without increases in housing density. The area currently receives water service from groundwater and the homes are served by individual septic tanks to meet the wastewater needs. Law enforcement is handled by the County Sheriff and Fire response by the County Fire Department. The first responder to a call would likely be the City Police and Fire units given their closer proximity to the area and the Automatic and Mutual Aid Agreements that exist between the County and City Fire response organizations. The Planning Commission and City Council recommended inclusion of an additional 107 acres (Wixom), for a total of 211 acres, as shown below. City Council Recommendation. The Kuden-Tiburon and Hansen Tract areas should be excluded from the SOI. The residents in the Hansen Tract strongly opposed being included in the SOI. At the City Council s August 23, 2005 hearing they expressed satisfaction with the County Services and their rural lifestyle. The Wixom Ranch area should be included in the SOI. The City Staff recommended that this area be excluded from the SOI because it is not a logical boundary or extension of the City. The Council recommends including this area. LAFCO Staff Recommendation. This area should not be included in the SOI. The Kuden-Tiburon, Hansen Tract, and Wixom properties are recommended for exclusion. The Kuden-Tiburon and Hansen Tract areas are 5-acre lots that are unlikely to break down to urban densities (6,000 to 10,000 square foot lots) that would require City services and provide an adequate property tax base to pay for those services. All twelve of the property owners in the Hansen Tract have expressed their opposition to be included in the City s SOI in the form of a petition. The residents are satisfied with the services provided by the County. Staff recommends that the Wixom Ranch Area be excluded from the SOI at this point in time. Adding this property does not make a logical boundary for the City; would increase the possibility that this property would be developed; and would be out of character with the surrounding rural area. While the City Limit is adjacent to the southwestern part of the property, this hard edge to the City should be maintained at this point in time. Extending the SOI in this direction could be the first step toward development moving further east on Orcutt and into more agricultural and rural areas. This could increase the potential for urban sprawl and would set a precedent for developing this area. The property is currently on the market and inclusion into the City s SOI is a signal to potential buyers that it may be annexed to the City. This has increased interest in the property. If the property owner of the Wixom property chooses to develop in the County, it is unlikely that urban densities would be achieved because of the County s open space and agricultural policies. The County s clustering and open space policies may allow for the preservation of the rural character of the area and may be a more appropriate use. This property can be evaluated again in five years when LAFCO is required to update the SOI, or sooner if an annexation or SOI amendment proposal is submitted to the City and/or LAFCO for consideration. ADOPTED 2-10 JANUARY 19, 2006

26 CHAPTER 2 SPHERE OF INFLUENCE UPDATE Commission Action. The Commission included the Wixom property and excluded the Hansen Tract and the Kuden-Tiburon areas from the SOI. SOI Area #4 Sphere of Influence Areas Added City Limit URL 105 acre Wixom Ranch area added. Kuden and Hansen areas excluded. ADOPTED 2-11 JANUARY 19, 2006

27 CHAPTER 2 SPHERE OF INFLUENCE UPDATE SOI Area #5 Righetti Hill. This 70-acre area is located southwest of Orcutt Road outside the existing SOI and is recommended for inclusion. The area is part of the Orcutt Specific Plan area and would likely be designated as open space and become part of the City s Greenbelt. The City s open space policies would call for much, if not all, of this area to be preserved as open space. City Council Recommendation. This area should be included in the SOI. LAFCO Staff Recommendation. The SOI should include Area Five. This area is a logical extension of the City s boundaries. The City s Land Use and Open Space policies and standards would manage any development proposed in this area. The Specific Plan and Environmental Impact Report (EIR) being prepared by the City would provide for the preservation of this area as open space and allows the City more flexibility in preparing the Plan. Commission Action. The Commission included this area within the SOI. SOI Area #5 Study Area Sphere of Influence 70 acres - 3 parcels Vacant Land Part of Specific Plan ADOPTED 2-12 JANUARY 19, 2006

28 CHAPTER 2 SPHERE OF INFLUENCE UPDATE SOI Area #6 Broad Street Commercial. This 185-acre area is located on the southeast side of the City adjacent to Broad Street and includes 18 parcels. The County recently approved a large commercial development (Morabito-Burke) in the area. This approval included a development plan and environmental documentation consistent with CEQA. The zoning, recent approvals and location of this site may support its eventual annexation to the City. The large commercial development that has already been approved could reasonably be expected to be served by the City at some point in the next 20 years. The 30-acre area zoned agriculture adjacent to Tank Farm Road is vacant and is not in productive agricultural use at this time. Most of this area was recently included in the Airport Area Specific Plan by the City Council. These policies would help guide any future development in the area. The County approved commercial development is expected to be constructed prior to annexation. City Council Recommendation. This area should be included in the SOI. LAFCO Staff Recommendation. The SOI should include Area Six. This area is logical extension of the City s boundaries. The proximity of this area to the City boundaries, a major roadway (Broad St.), and the type of land uses being approved make this area one that could be served by the City. The County has already approved a major commercial development on the site. The City is capable of providing any services needed to serve the area. The City has policies that require the developer to pay for infrastructure improvements and other needed facilities and resources. Commission Action. The Commission included this area within the SOI. SOI Area #6 Study Area Sphere of Influence 185 acres - 18 parcels Partially Developed Commercial project approved Some AG zoning ADOPTED 2-13 JANUARY 19, 2006

29 CHAPTER 2 SPHERE OF INFLUENCE UPDATE SOI Area #7 Avila Ranch Area. This 525-acre area includes the Avila Ranch and Drake Farms north of Buckley (285 acres) and land adjacent to Highway 101 and Higuera Street (239 acres). Of the 285-acre site, 180 acres (63%) are zoned Industrial by the County and development is occurring on some parcels. The 105-acre area on the east side is zoned agriculture and is producing highvalue row crops on some parcels. Continued industrial development of the area is likely and the need for City services will increase over the next 20 years. The City Council recently directed that the area north of Buckley Road be included in the Airport Specific Plan Area. The 239-acre area along Higuera and Highway 101 is largely zoned agriculture. It is adjacent to major roads and highways (101 and Higuera) that lead into the City. The Planning Commission recommended that additional land south of Buckley Road be included to preserve agricultural land and to help secure open space. The City Council recommended that the area south of Buckley Road not be included in the SOI because it could affect City efforts already underway to secure open space easements in this area and because an open space buffer will be required north of Buckley Road as part of the AASP. City Council Recommendation. This area should be included in the SOI. The Council also excluded the properties to the south of Buckley that were recommended by the Planning Commission. LAFCO Staff Recommendation. The SOI should include Area Seven. This area is a logical extension of the City s boundaries. The proximity of this area to the City boundaries, a major roadway (101, Higuera, Buckley Rd.), and the type of land uses being approved make this area one that could be served by the City. The City is capable of providing for any services needed to serve the area. The City has policies that require the developer to pay for infrastructure improvements and other needed facilities and resources. Commission Action. The Commission included this area within the SOI. SOI Area #7 Study Area Sphere of Influence 525 acres-24 parcels Partially Developed Dioptics-ZooMed Industrial and AG zoning in County ADOPTED 2-14 JANUARY 19, 2006

30 CHAPTER 2 SPHERE OF INFLUENCE UPDATE SOI Area #8 Los Osos Valley Road/Highway 101. This 870-acre area is located southwest of the City next to Los Osos Valley Road (LOVR) and includes land that is zoned agriculture. Home Depot is located to the north, auto sales to the east, commercial development and Highway 101 to the south, and agricultural land (grazing) to the west. The northern corner of the uppermost parcel (about 15 acres) is already in the URL. The Madonna Family has submitted an application for annexation of this portion of the Froom Ranch area, which is adjacent to LOVR and Home Depot. It is anticipated that this area would develop with commercial land uses located nearer to the Highway and roads. The balance of the properties may be used to meet the City s open space requirements. The parcel to the south is a property owner request (Madonna) for inclusion in the SOI. On the southernmost parcel, the County has approved construction of the Mountain Brook Church (a.k.a. Vineyard Church). The area to the south includes three parcels and approximately 470 acres. The area is steep hillside and would likely be used to meet the City s greenbelt policies. The property west of the Church is the Filipponi (West) Ranch (approximately 220 acres). The parcel just to the south is the City-owned Johnson Ranch (242 acres). Since the Filipponi Ranch is currently served by a City street (Calle Joaquin) these parcels are recommended for inclusion. Also, it has been the City s practice to include City-owned open space lands within the city limits so that city open space regulations can be enforced. Under General Plan policies, wetlands must be preserved as open space. If eventually annexed, portions closest to LOVR may have development potential; wetlands would be identified and designated as Open Space at a 4:1 ratio of open space to developable land. City Council Recommendation. This area should be included in the SOI. LAFCO Staff Recommendation. The SOI should include Area Eight. This area is a logical extension of the City s boundaries. The proximity of this area to the City boundaries, major roadways (101, Higuera, Buckley Rd.), and the type of land uses being approved make this area one that could be served by the City. The City also owns 220 acres that have been dedicated to open space. If this property were annexed into the City, the City would not have to pay property taxes on the parcel. The City is capable of providing any services needed to serve the area. The City has policies that require the developer to pay for infrastructure improvements and other needed facilities. Commission Action. The Commission included this area within the SOI. SOI Area #8 Study Area Sphere of Influence 870 acres 6 parcels 4:1 Open Space requirement ADOPTED 2-15 JANUARY 19, 2006

31 CHAPTER 2 SPHERE OF INFLUENCE UPDATE SOI Área #9 Cerro San Luis. This 1,386-acre Study Area is located on the northwest side of the City with Foothill Blvd. as the northern boundary and Los Osos Valley Road as the border to the west. The area includes land that is zoned Agriculture and nine single-family residences that exist along the south side of Foothill Boulevard. These are mostly half-acre lots that have already been developed. Ten of the properties (1,202 acres-87%) are owned by the Madonna Family. Congregation Beth-David has received approval from the County to build a worship facility at the corner of LOVR and Foothill. The property just south of the Congregation is owned by Mr. Dan DeVaul, who has requested inclusion into the SOI. A large portion of this area includes Cerro San Luis and would be considered for inclusion into the City s open space program if annexed into the City because of the steep topography, wetlands and sensitive habitat. City Council Recommendation. This area should be included in the SOI. LAFCO Staff Recommendation. The SOI should include Area Nine. This area is a logical extension of the City s boundaries. The proximity of this area to the City s boundaries, major roadways, and the type of land uses being approved by the County (churches, schools, residences, etc.) make this area one that could eventually be served by the City. The City s emergency response agencies are often the first responder in this area in emergency situations. Also, Cerro San Luis is often identified as part of the City and would be a rational addition to the City s open space program. Foothill and Los Osos Valley Road make logical boundaries for the City Limits. The City is capable of providing any services needed to serve the area. The City has policies that require the developer to pay for infrastructure improvements and other needed facilities and resources. Commission Action. The Commission included this area within the SOI. SOI Area #9 Study Area Sphere of Influence 1,386 acres 22 parcels Agricultural zoning Includes San Luis Peak ADOPTED 2-16 JANUARY 19, 2006

32 CHAPTER 2 SPHERE OF INFLUENCE UPDATE SOI Area #10 California Men s Colony. The Cortese-Knox-Hertzberg Act allows for institutions such as the California Men s Colony, which are not adjacent to a City, to be annexed for purposes of increasing a jurisdiction s per capita population. Such an action can, in some cases, increase the City s share of state and federal funding from programs that base allocations on population. The State s budget crisis last year decreased the main potential funding source based on per capita population - the vehicle licensed fee (VLF). Funding from other per capita-based sources, such as the Community Development Block Grant (CDBG) program, could be increased through such an annexation, although the amount of increase is unknown. The prison is self-sufficient and would not require services from the City if annexed. The Planning Commission and staff recommend that this area be excluded from consideration due to its distance from the City. City Council Recommendation. This area should be excluded from the SOI. LAFCO Staff Recommendation. The SOI should not include Area Ten. This area can be added at a later date if it is determined that the City would like to consider working with the State of California and the County to annex this facility. Commission Action. The Commission excluded this area within the SOI. SOI Area #10 Study Area Sphere of Influence 860 acres 2 parcels State Correctional facility Population: 6,000-7,000 ADOPTED 2-17 JANUARY 19, 2006

33 CHAPTER 2 SPHERE OF INFLUENCE UPDATE MEMORANDUM OF AGREEMENT The City Council approved a Memorandum of Agreement (MOA) between the City of San Luis Obispo and the County of San Luis Obispo on August 23, The Board of Supervisors will consider the MOA on October 18, The MOA is included with this report in Appendix B. The CKH Act requires that this agreement be given great weight by the Commission in making its decision regarding the update of the City s SOI. The City and the County agreed upon the extent of the City s Sphere of Influence, the development standards and zoning process. The general approach of the MOA is to ensure close coordination and cooperation between the City and County on the future planning and development of the areas within the City s SOI boundary. Key provisions of the MOA include the following: C C C C Written documentation to use other jurisdictions services as a way to mitigate an impact to services; Referral of projects in the fringe area to the City and County; Fair distribution of mitigation/impact fees; Meetings among emergency response agencies to discuss impacts and fiscal issues; C City will not consider annexing the project; and Coordination of agricultural and open space policies. The MOA enhances the communication between the City and the County and helps to clarify the process for developing the SOI areas. PRESENT AND PLANNED LAND USE The land uses of proposed Sphere of Influence areas vary from agriculture to industrial and open space. The planned use for areas might include commercial, residential, and open space. The proposed SOI area compares favorably with the existing pattern of development and would promote the efficient provision of public services, focus development to the existing urban area, encourage the preservation of open space and agricultural land and would further discourage urban sprawl in the area. The City s General Plan policies enable the City to effectively manage the growth and development within this area. The policies would encourage a more compact urban form, preservation of agricultural and open space, efficient provision of public services, and a more efficient circulation pattern. The potential future land uses are shown in Table 2-2. C Prior City review of projects submitted to County & written documentation that the ADOPTED 2-18 JANUARY 19, 2006

34 CHAPTER 2 SPHERE OF INFLUENCE UPDATE Area #1-County request. Private parcels Area #2-Flora-Alrita Table 2-2: Existing and Potential Land Use SOI Area Existing Zoning/Use Possible Future Use Acres Former General Hospital Unknown Open Space Open Space/ Large-lot Residential Residential Open Space Residential Open Space 11 ac 13 ac 169 ac Area #3-Harmony Way (Excluded) 31 ac Area #4-Rural Orcutt-Kuden/Tiburon & 104 ac Hansen Tract (Excluded), Wixom Residential Rural Residential Rural 107 ac (Included) Area #5-Righetti Hill-part of Orcutt Specific Plan Open Space Open Space 70 ac Area #6-Broad St. Commercial Agricultural/Commercial Commercial 185 ac Area #7-Avila Ranch Area Industrial/Agricultural Commercial/Industrial 519 ac Area #8-Los Osos Valley Road-101 Agricultural Commercial/Open Space 870 ac Area #9 Agricultural Residential/Open Space 1,386 ac Area 10-California Men s Colony (Excluded) Industrial Institutional 860 ac PRESENT/PROBABLE NEED FOR PUBLIC SERVICES The present need for public services in the proposed SOI area varies in the different areas. Many of the properties current uses are for agricultural and open space purposes. Some properties already have development permits that have been approved and are in the process of being developed. The following table projects the present and probable service needs for each area: Table 2-3: Present and Probable Service Needs SOI Area Present Need Probable Needs Area #1-County Request General Hospital-Sunny Acres City Services County Services City Services Area #2-Flora-Alrita No Services City Emergency Response City Services Area #3-Harmony Way No City Services County Services City Services-Residential Area #4-Rural Orcutt No City Services County Services No City Services Area #5-Righetti Hill-Orcutt Specific Plan No City Services County Services City Services-Open Space Area #6-Broad St. Commercial Area #7-Avila Ranch Uses City Sewer Line City/County Emergency Services No City Services Emergency Response Full City Services City Services Industrial- Commercial Development Area #8-Los Osos Valley Road No City Services Emergency response City Services Area #9-Cerro San Luis No City Services Emergency Response City Services Area #10-CMC No City Services No City Services ADOPTED 2-19 JANUARY 19, 2006

35 CHAPTER 2 SPHERE OF INFLUENCE UPDATE SOCIAL AND ECONOMIC COMMUNITIES OF INTEREST The City of San Luis Obispo has a variety of social and economic communities of interest, including numerous businesses, schools, churches, public sector facilities, and other Community Service programs that serve residents. If the development of the SOI is managed pursuant to the policies of the City, the development of these areas should be a net benefit to the social and economic communities of interest. The existing social fabric of the City will change by adding this area into the Sphere. It is likely, however, that this change will be positive, bringing in new families and economic buying power as well as possible revenues that could help the City s budget. Industrial, commercial, and retail areas could bring jobs and economic growth into the City. Chapter Three of this report provides information that documents the effect of the proposed Sphere of Influence on the City and evaluates the City s ability to manage expansions in these areas. efficient urban development patterns, balanced with preserving open space and agriculture land while discouraging urban sprawl. This Sphere of Influence Update and Municipal Service Review for the City of San Luis Obispo is consistent with those polices and the purposes of LAFCO. The proposed SOI discourages urban sprawl and encourages the preservation of open space and agricultural land through the implementation of the City s Open Space program and policies. Inclusion in the City also provides for the more efficient provision of public services and is consistent with the policies of the San Luis Obispo LAFCO. LOCAL SPHERE OF INFLUENCE GUIDELINES The Cortese/Knox/Hertzberg Act (CKH Act) requires that each Commission establish written policies and procedures. The Act also states that LAFCOs are to exercise their powers consistent with those policies and procedures. The polices should encourage and provide for well-ordered, ADOPTED 2-20 JANUARY 19, 2006

36 serve areas within the City and in the Sphere of Influence. It is important that such findings of infrastructure and resource availability occur when revisions to the SOI and annexations are proposed. The CKH Act identifies nine factors that must be addressed when preparing a Municipal Service Review to update a jurisdiction s Sphere of Influence. In this chapter information is gathered and evaluated for each factor and written determinations are prepared for LAFCO s consideration. The City s General Plan, Capital Improvement Plans, and Budgets and other documents provide the information base for preparing this chapter. 3.1 INFRASTRUCTURE NEEDS & DEFICIENCIES Purpose: To evaluate the infrastructure needs and deficiencies in terms of supply, capacity, condition of facilities, and service quality. LAFCO is responsible for determining that an agency requesting SOI amendments is reasonably capable of providing needed resources and basic infrastructure to In the case of this SOI Update, it is prudent for LAFCO to evaluate the present and longterm infrastructure demands and resource availability of the community. LAFCO accomplishes this by evaluating 1) the resources and services that are available, and 2) expansion of such resources and services in line with increasing demands. A jurisdiction that has a demonstrated ability to provide services and manage resources would likely make sound decisions regarding serving future areas. Such is the case with the City of San Luis Obispo. The table on the following page indicates both the existing and proposed agencies to provide services for the SOI area. This assumes that the properties in the SOI area are annexed into the City and not served through an Outside User Agreement or some other mechanism. Typically, upon annexation, the City provides a full array of public services to the property being annexed. ADOPTED 3-1 JANUARY 19, 2006

37 Service Table 3-1: Existing & Proposed Service Providers Within SOI Existing Agency Providing Services for SOI Areas Proposed Agency to Provide Services for SOI Areas General Government (including Governing Board, Counsel, Assessor, Finance and General Administration) Water Service County of San Luis Obispo Individual wells or community water system City of San Luis Obispo County of San Luis Obispo City of San Luis Obispo Wastewater collection, treatment and disposal County of San Luis Obispo Public Works or Septic Systems City of San Luis Obispo Storm water drainage, flood control County of San Luis Obispo Public Works City of San Luis Obispo Roads, Circulation, Street Maintenance Street Lighting County of San Luis Obispo City of San Luis Obispo Public Transportation SLO Transit Authority City of San Luis Obispo Law Enforcement and Fire Protection Services County Sheriff/CDF City of San Luis Obispo Police and Fire Departments Community Development/Planning and Building Services, Code Enforcement County of San Luis Obispo City of San Luis Obispo County of San Luis Obispo-via contractor or individual responsibility Solid Waste City of San Luis Obispo Parks and Recreation County of San Luis Obispo City of San Luis Obispo Library County of San Luis Obispo City of San Luis Obispo The most important infrastructure needs are the provision of water and wastewater services. Beyond these basic services, police and fire protection, and circulation/road services are considered high priority needs for future growth of the City. This section evaluates the City s resources and capabilities to provide services to existing and future residents. The key topics addressed include water supply and demand, water pipeline system, sewer system capacity and condition, fire and police protection, traffic and roads, and other services. Several sources of information are incorporated by reference: City of San Luis Obispo General Plan; Water and Wastewater Management Element Annual Report Regarding the General Plan Housing Element and Appendices City of San Luis Obispo Financial Plan, ADOPTED 3-2 JANUARY 19, 2006

38 City of San Luis Obispo Financial Plan, City of San Luis Obispo, Comprehensive Annual Financial Report, 2002 City of San Luis Obispo, Capital Improvement Plan, Urban Water Management Plan, 1994 Dalidio/San Luis Marketplace Annexation and Development Project Environmental Impact Report (April 2004) Airport Area Specific Plan and EIR, City of San Luis Obispo (August 2005) County of San Luis Obispo General Plan City of San Luis Obispo, Cost Recovery Study Findings, DMG, 2000 City of San Luis Obispo Capital Improvement Plan Regional Transportation Plan, 2001, San Luis Obispo Council of Governments Regional Profile, 2004, San Luis Obispo Council of Governments City of San Luis Obispo General Land Use Plan Element (July 2003) City of San Luis Obispo Capital Improvement Plan , Financial Plan Index City of San Luis Obispo Cost Recovery Study Findings (November 2000) City of San Luis Obispo General Land Use Plan Element (July 2002) City of San Luis Obispo General Plan Housing Element (May 2004) City of San Luis Obispo Financial Plan, Approved Budget City of San Luis Obispo Financial Plan Supplement, Approved Budget City of San Luis Obispo 2003 Annual Report on the General Plan City of San Luis Obispo Financial Plan, Approved Budget City of San Luis Obispo Grand Jury Briefing (August 2002) City of San Luis Obispo Fiscal Impact Analysis, 1994 Report Update Utilities Department 2003 Water Quality Report City of San Luis Obispo Urban Water Management Plan (November 1994) Draft Sphere of Influence Update/Municipal Service Review, LAFCO (September 2005) San Luis Obispo County Area Plan, Final Environmental Impact Report Clean Air Plan, San Luis Obispo APCD Utilities Department 2003 Water Quality Report City of San Luis Obispo General Plan Water & Wastewater Management Element (June 2004) City of San Luis Obispo Urban Water Management Plan (November 1994) Draft Sphere of Influence Update/Municipal Service Review & Clean Air Plan ADOPTED 3-3 JANUARY 19, 2006

39 McBride Commercial Development Plan & Mitigated Negative Declaration, City of San Luis Obispo (August 2005) Morabito-Burke Development Plan & Environmental Determination, County of San Luis Obispo Dipotics Development Plan & Environmental Determination, County of San Luis Obispo Congregation Beth-David Development Plan & Environmental Determination, County of San Luis Obispo Mountain Brook (Vineyard) Development Plan & Environmental Determination, County of San Luis Obispo Memorandum of Agreement, Adopted by the City of San Luis Obispo on August 23, 2005, to be considered by the Board of Supervisors on October 18, 2005 ADOPTED 3-4 JANUARY 19, 2006

40 WATER Supply The City of San Luis Obispo receives most of its water supply from the Salinas Reservoir (Santa Margarita Lake) built in 1944 and from Whale Rock Reservoir constructed in Some limited use of groundwater started in The following background information comes from the City s Website: Salinas Reservoir (Santa Margarita Lake). The Salinas Dam was built in 1941 by the War Department to supply water to Camp San Luis Obispo and, secondarily, to meet the water needs of the City. The Salinas Reservoir (Santa Margarita Lake) captures water from a 112 square mile watershed and can currently store up to 23,843 acrefeet. In 1947, the Salinas Dam and delivery system was transferred from the regular Army to the U.S. Army Corps of Engineers. Since 1965, the San Luis Obispo County Flood Control and Water Conservation District has operated this water supply for the City under a lease from the U.S. Army Corps of Engineers. Water from the reservoir is pumped through the Cuesta Tunnel (a one mile long tunnel through the mountains of the Cuesta Ridge) and then flows by gravity to the City s Water Treatment Plant on Stenner Creek Road. The City has water rights to store up to 45,000 acre-feet. The original design of the dam included a gate in the spillway to increase the storage capacity. The City is presently working on the Salinas Reservoir Expansion Project, which proposes to install a new operable gate in the spillway. Whale Rock Reservoir. The Whale Rock Reservoir is a 40,662 acre-foot reservoir created by the construction an earthen dam on Old Creek near the town of Cayucos. The dam was designed and constructed by the State Department of Water Resources in 1961 to provide water to the City of San Luis Obispo, Cal Poly State University and California Men s Colony. The Whale Rock Dam captures water from a 20.6 square mile watershed and water is delivered to the three agencies through 17.6 miles of 30-inch pipeline and two pumping stations. Ground Water. Three wells currently supply water for domestic use. Two wells supply water for irrigating the City golf course, and one well at the Corporation Yard is used for construction purposes. The three domestic wells are producing approximately 20 acre-feet per month, which is approximately 4% of the total City water use. The groundwater basin is relatively small and recharges very quickly following normal rainfall periods, but it also lowers relatively quickly following the end of the rainy season. In 1996, the groundwater wells provided only 365 acrefeet of water. Extensive use of groundwater sustained the City through the drought of However the City s two largest producing wells, Auto Parkway and Denny s, were shut down when elevated nitrate levels were detected. This loss meant the City could not rely on groundwater for future drought protection. The City s Water and Wastewater Element of the General Plan provides up-to-date water supply information for the City of San Luis Obispo. The Safe Annual Yield shown below calculates the amount of water that is available to the City from current sources. The calculation factors the rate of siltation that can be expected at the Whale Rock and Salinas Reservoirs into the projection. ADOPTED 3-5 JANUARY 19, 2006

41 Table 3-2: Safe Annual Yield (Source: City s General Plan Water and Wastewater Management Element) Year Salinas & Whale Rock Reservoirs Groundwater Total ,040 acre-feet 500 acre-feet 7,540 acre-feet ,030 acre-feet 500 acre-feet 7,530 acre-feet ,020 acre-feet 500 acre-feet 7,520 acre-feet ,010 acre-feet 500 acre-feet 7,510 acre-feet ,000 acre-feet 500 acre-feet 7,500 acre-feet ,990 acre-feet 500 acre-feet 7,490 acre-feet ,980 acre-feet 500 acre-feet 7,480 acre-feet ,970 acre-feet 500 acre-feet 7,470 acre-feet ,960 acre-feet 500 acre-feet 7,460 acre-feet ,950 acre-feet 500 acre-feet 7,450 acre-feet The Safe Yield determination above considers severe drought conditions as part of the calculation to ensure a more reliable projection. The City revises this information as the water supply situation changes; i.e. new information becomes available, and new water sources are added or subtracted from the City s supply. Supplemental Water Options The City prepares an annual Water Resources Status Report to inform the Council about the water situation. This report was released in June The City is currently reviewing the following options for supplemental water: the Water Reuse Project, the Nacimiento Pipeline Project, additional water conservation measures, additional groundwater resources, a possible desalination facility, and the Salinas Reservoir expansion project. The following table lists the supplemental water supply projects in priority order. ADOPTED 3-6 JANUARY 19, 2006

42 Table 3-3: Potential Supplemental Water Sources Tier Project (by Priority) Potential Yield (AFY) 1 Water Reuse 1,200 Nacimiento Pipeline 3,380 Additional Water Conservation Additional Groundwater Resources 500 Desalination Not determined 3 Salinas Reservoir Expansion Project 1,650 Totals 7,070 Source: City of San Luis Obispo, 2004 Water Resources Status Report Water Demand The City completes water demand projections in order to know how much water will be needed to serve residents, businesses and other uses as growth and development occur in the City. The City s Water and Wastewater Management Element provides information and establishes policies for projecting future water demand. These policies are the foundation for calculating future water use for the City. This document is a valuable water resourceplanning tool. The City has adopted the following key policies related to projecting water demand: ADOPTED 3-7 JANUARY 19, 2006

43 3.1 POLICIES Figure 3-1: City of San Luis Obispo Water Demand Policies Basis of Projections. The City will project water requirements, considering long-term conditions and the full range of water uses in the City Water use Rate. The City shall use 145 gallons per person per day (this equates to approximately acre-foot per person per year) and the number of City residents to plan total projected future water demand. This quantity will be revised if warranted by long-term water use trends, including differences in the relationship between residential and nonresidential usage. (Throughout this Plan, 145 gallons per person per day is used in computations of future water demand.) Overall Projected Demand. Applying 145 gallons per person per day to a projected City resident population of about 56,000 at General Plan build-out results in a projected water demand of 9,096 acre-feet per year (excluding demand from the Cal Poly campus, which has separate entitlements) Present Water Demand. Present water demand shall be calculated by multiplying the water use identified on Policy by the current city population (as determined by the California Department of Finance, Population Research Unit) Peak Daily Water Demand. The City shall strive to develop and maintain water supply sources and facilities appropriate to ensure sufficient supply and system capacity to provide the peak daily water demand of the City. The table on the following page is from the Water and Wastewater Element and helps to apply these policies by providing actual data regarding water use. Please note that the City estimates water use to be 9,096 acre-feet per year at build out. Also, the shortfall of the City water supply at build out of the General Plan is 1,596 afy. As described above, the City is pursuing several supplemental water options that would cover build out under the existing General Plan. The Nacimiento pipeline project would provide 3,300 acre-feet of water. This would provide water for build-out and an additional 1,800 acre-feet for future development. ADOPTED 3-8 JANUARY 19, 2006

44 The City uses per capita water use to calculate future water demand. Two approaches are used to arrive at per capita water use: Method 1: Based on Water Treatment Plant Production and Population, historic demand, and conservation: 145 gallons/person/day. Method 2: Based on metered use by development type and land use Element: 152 gallons/person/day. For planning purposes the City uses the 145 gallons per person per day calculation. The Element also includes policies regarding the development of supplemental water ADOPTED 3-9 JANUARY 19, 2006

45 sources. The City is committed to providing an adequate supply to existing residents and businesses and future users within the context of build out according to the General Plan. The City is not planning to add large water users to its service area that are not planned for in the General Plan. A Supplemental Water supply would be used to offset future losses of water supply due to siltation of reservoirs, droughts, and loss of yield from an existing source. Any new development would be expected to pay for new water supplies through impact fees. According the City s policy, these fees would be set at a rate sufficient to cover annual debt service costs of the new water supplies needed to serve new development. Water Conservation The City has the most effective water conservation program in the County. In 1988, the year before drought, conservation measures were implemented by the City, the average number of gallons used per person was 175. In 1991, the third year of drought measures, water use had decreased by 50% to 86 gallons per person per day. The City s aggressive approach to water conservation during drought years produces significant results in a relatively short period of time. The City can implement this water conservation program in drought situations by phasing in water-saving measures. The City takes two approaches to water conservation: a short-term and a long-term method. Short-term mandatory measures are implemented when the City s water supplies are projected to last three years or less based on projected water consumption, coordinated use of all city water supply sources, and drought pattern on which safe yield is based. The long-term approach includes an on-going conservation program that provides toilet rebates, free low-flow showerheads, and developer-paid replacement programs. The City s conservation programs are effective and are an excellent model for other jurisdictions to emulate. The following chart shows the water used per person per day from 1987 (the highest water use year since 1980) through 2003: ADOPTED 3-10 JANUARY 19, 2006

46 Figure 3-2: City of San Luis Obispo Water Use Gallons per Person '00 '01 '02 '03 The City s approach to water conservation has produced excellent results. In 1987, water was used at a rate of 182 gallons per person per day. Since that time, demand has decreased by 34% to 120 gallons per person per day. The City has maintained this level of water use for the last four years. As the graph shows above, water use has leveled off. The City is committed to water conservation as evidenced by the budget, which includes funding to expand the program. The program will add an irrigation efficiency component and broaden the commercial conservation program. These new measures are expected to save a total of 340 to 345 acre-feet of water. out of its General Plan. The Supply/Safe Yield available to the City is currently estimated at 7,500 acre-feet per year. The demand in 2002 was estimated to be 7,216 acre-feet per year. The City anticipates future water demand to be 9,096 acre-feet per year at build out under the existing General Plan. To provide for future development under the existing General Plan the City will need to acquire a supplemental water supply. The City has contracted with the County of San Luis Obispo for 3,380 acre-feet per year of the water from the Nacimiento pipeline. The addition of this water supply should provide an adequate supply for build out under the existing General Plan and supplemental water to serve other development. Water Supply and Demand The City s existing water supply is not adequate to serve the anticipated build The City s water policies also promote the use of reclaimed water for non-potable uses (1,200 afy). The City s Water Reclamation ADOPTED 3-11 JANUARY 19, 2006

47 Facility has been upgraded so that the effluent can now be used directly for landscape, agricultural and other nonpotable uses. The City s polices and implementation strategy found in the Urban Water Management Plan and Water and Wastewater Management Element provide for effective management of water resources in the short and long term. Water Treatment The City operates and maintains water treatment facilities that treat the water from the sources described above. The City s Treatment Plant is located on Stenner Creek Road northwest of the Cal Poly campus. The Salinas Reservoir is located nine miles southeast of the community of Santa Margarita with Whale Rock Reservoir located about ½ mile east of Cayucos. A pipeline system connects these facilities. The following description of those treatment facilities comes from the City s website: The purpose of a water treatment plant is to produce safe and pleasant drinking water, free of disease-causing organisms and toxic substances. The City of San Luis Obispo has a state-ofthe-art treatment process that includes ozone and ensures a high level of protection to our customers. Each year the City Utilities Department mails a Water Quality Report to all of its customers. San Luis Obispo water continues to meet or exceed all State and Federal Safe Drinking Water standards. City water comes from three sources: Salinas Reservoir (Santa Margarita Lake), Whale Rock Reservoir and ground water. Salinas Reservoir is our primary source of water. Whale Rock is our backup supply. Groundwater supplies a very small percentage (about 5%) of the City s demand for water. The source of the City s water is important because it sets the required level of treatment. Many communities rely solely on groundwater to meet their water needs. Groundwater typically requires only minimal treatment (such as the addition of chlorine) to meet state and federal standards, because water is filtered as it percolates through soil. This level of treatment results in very low operating and maintenance costs. In contrast water from lakes or rivers (surface water), such as the Salinas and Whale Rock Reservoirs, requires a significantly greater level of treatment to meet state and federal standards. The regulations require multiple treatment processes to provide multiple levels of ADOPTED 3-12 JANUARY 19, 2006

48 protection from potential contamination sources. In addition, the City s water supply reservoirs are patrolled on a daily basis to ensure that potential water quality problems at the source are minimized and eliminated. Increased treatment results in higher operating and maintenance costs. Water Distribution System The City operates and maintains an extensive water transmission and distribution system. It consists of wells, storage tanks, pump stations, pressure relief valves and zone valves. The City is divided into 14 different pressure zones to ensure adequate water pressure throughout the City. The City s website offers the following description of the City s water transmission and distribution facilities: The water distribution system delivers potable water to approximately 13,500 metered customers. The goals of the program are to provide uninterrupted water flow at adequate pressures, to meet all fire and domestic flow requirements, and to minimize system water loss due to leakage. In order to accomplish these goals, the water distribution program has seven major work objectives. They are as follows: Pump station and tank maintenance Water main maintenance and repair Water service installation and service renewal Fire hydrant installation Fire hydrant maintenance Cross connection control Underground Service Alert (USA) markouts Because of the geographic setting of San Luis Obispo, the water distribution system is a very complex structure of pipes, pumps, storage tanks, and pressure reducing valves. The water distribution program delivers potable water from the water treatment plant and wells to customers and fire hydrants via three storage reservoirs, ten pump stations, twelve storage facilities, and approximately 150 miles of water mains. It is unlikely this basic distribution pattern will change, since the water treatment plant will continue to be the principal source of treated water for the City. Growth within the City has placed increased demands on the water distribution system. Additionally, many pipes throughout the City are over 100 years old, and do not provide adequate capacity to meet current fire-flow requirements. Even without growth or fire protection requirements, aging pipes must be replaced to avoid major service disruptions and leaks due to deterioration. There are approximately 150 miles of water distribution pipelines throughout the City. The engineering estimate for the life expectancy of these facilities is 50 years. Complete replacement within the term of life expectancy would require that the City replace an average of 2% of the system infrastructure each year. Parts of the City s water transmission system are over 100 years old. Most of the pipes are made of cast iron. Other pipes are made of asbestos cement (located primarily in the Laguna Lake area), or, since the mid-1970s, PVC. Water pipes serve two basic functions. The larger pipes or transmission mains move large volumes of water from one portion of the City to another. They range in size from 12 inches to 30 inches. The smaller pipes or distribution mains are to distribute water ADOPTED 3-13 JANUARY 19, 2006

49 within a local area and deliver it to each property in the City. They range in size from 2 inches (in the older portions of the City) to 12 inches. The current minimum standard is 8 inches for distribution mains. Water from the water treatment plant in Stenner Canyon is transported through a 30-inch transmission line 3,500 feet to the transfer pumps (located on Stenner Canyon Road). The transfer pumps take approximately 48% of the water, increase the pressure, and then provide water to Stenner Canyon Reservoir, Cal Poly, and other portions of the City, generally north and east of the Southern Pacific Railroad tracks. From the transfer pumps, there are two 24-inch transmission lines that move water about one mile to the city limits. One pipe is the high-pressure line from the transfer pumps and the other pipe has lower pressure supplied directly from the water treatment plant s clear well. Pressure Zones. The water delivered from the treatment plant is split into two main distribution networks. About 52% flows into the City by gravity and the other 48% is pumped to a storage reservoir at a higher elevation and then flows into the various service areas by gravity and through pressure reducing valves (PRVs). The most apparent strain is in the pumped delivery system. Since electrical power for pumping water is a major expense, a goal is to develop a system that minimizes pumping. The goal of the water supply system is to deliver water at pressures between 40 pounds per square inch and 80 pounds per square inch at the customer s meter without using a pressure-reducing valve on the pipe connecting the water main to the meter. This pressure range will meet the needs of most irrigation sprinklers and other uses, and provide adequate pressure for fire sprinkler systems. Pressure zones are established in the distribution system to maintain these pressure ranges. The City currently has 15 pressure zones divided between the gravity and pumped delivery systems. Mains and Services. Once raw water has been converted to drinking water, it must be delivered to the customer with its quality intact. Additionally, it must be at a pressure that assures adequate flow from the tap. The effort put into constructing a wide-ranging distribution system is enormous in terms of cost, work, and disruption to the community. The elements of a distribution system (pipes, pumping stations, valves, storage structures, and so forth) are expected to operate over a long time frame, as they are all expensive to replace. In particular, the piping network (placed largely below ground) is expected to have a very long service life. Replacement and rehabilitation work is very costly and difficult. Presumably research and development will continue in this area and new products, techniques, and new concepts in engineering practice will help keep the network flowing smoothly. Storage Facilities. Water storage facilities are necessary to provide water during peak demand periods and emergency situations such as fires. The City has ten water storage facilities, six of which are steel storage tanks ranging in size from.07 to 4 million gallons, three concrete facilities with a capacity of.03 to 7.5 million gallons, and one hydropneumatic station. The combined storage capacity is million gallons. Main Line Leaks. Main line leaks range from a low of 1 gpm to over 1,000 gpm. Leaks due to corrosion usually start small but can grow very large. Splits can occur due to excessive pressure, improper installation settlement, or overloading. Joint leaks can occur due to corrosion, improper installation, improper materials, or overloading. Services Line Leaks. Service line leaks range from a low of 0.5 gpm to over 15 gpm. Service line leaks are caused by the same factors as the main line leaks. ADOPTED 3-14 JANUARY 19, 2006

50 Residential Meter Box. Leaks within the vicinity of the meter box range from a low of a fraction of a gpm to a high of 10 gpm. Common examples include leaks due to: Loose spud nuts on either side of the meter Loose packing nuts Damaged or broken angle stops Broken meters Damaged meter gaskets Damaged or broken meter yokes Residential Customer Leaks. Leaks on the residential customer side of the meter range from a low of a fraction of a gpm to a high of 15 gpm. Common examples include: Holes or breaks in the customer service line Inefficient hose bib or shutoff valves Holes or breaks in interior plumbing lines Leakage inside plumbing fixtures (toilet fixture leaks are common) Valve Leaks. Leaks in distribution system valves range from low: a fraction of a gpm to high: 500 gpm. Common examples include leaks due to loose packing and broken valves. Leaks may start in the systems controls such as pressurereducing valves, pressure-sustaining valves, pressure-relief valves, and others. Capital Improvement Plan-Water System Improvements The City s Capital Improvement Plan (CIP) comprehensively schedules and finances all capital projects and equipment purchases over $15,000. The City is facing fiscal challenges in balancing the budget for Because of this the General Fund CIP focused on maintaining, repairing or replacing the facilities, infrastructure and equipment already in place. The table below highlights the key water system improvements planned to be completed in the next few years. The City s Capital Improvement Plan contains detailed project-by-project information and provides for aligning the goals of the City with project implementation. The City s approach considers the current fiscal situation and makes adjustments based on the City s ability to pay for improvements. The City s water distribution system provides for the delivery of water throughout the City. The City upgrades and maintains the system on a regular basis and provides for these activities in their Capital Improvement Plan. The next section summarizes the Capital Improvement Plan adopted by the City. ADOPTED 3-15 JANUARY 19, 2006

51 Table 3-4: Water System Improvements-Capital Improvement Program Project Groundwater Development Water Re-Use Master Plan Water Treatment Plant (Major Facility Maintenance) Water Treatment Master Plan Implementation Water Distribution Master Plan Implementation (Project List found in CIP) Water Distribution System Improvements (Project List found in CIP) Downtown Fire Sprinkler Lateral Reimbursement Program Polybutylene Water Service Replacements Total Cost (Includes $ spent to date) FY-2004 FY-2005 FY-2006 FY ,502, , ,000 2,050, , , , ,000 20, , ,000 50,000 4,638, ,600 4,209, ,971, ,000 1,480, , ,000 4,000,000 1,000,000 1,000,000 1,000,000 1,000, , ,000 25,000 2,000, , , , ,000 Totals 17,405,690 2,115,596 7,287,695 4,178,994 1,722,993 Other water-related projects are proposed in the Capital Improvement Plan. The City updates this plan each year and allocates funds based on need and availability. The Capital Improvement Plan provides details about a particular proposed project. It includes schedule, reasons for the project, estimated cost and expenditures to date. The CIP is comprehensive and provides a complete listing for all water-related projects being contemplated by the City. WASTEWATER COLLECTION & TREATMENT SYSTEM The City of San Luis Obispo operates the wastewater treatment/reclamation facility, which has 13,500 hook-ups within the City limits. The City s wastewater collection system consists of one hundred fifty miles of sewer pipe, ranging in size from 6 to 30 inches in diameter (at an average depth of six feet), over 2,500 manholes, and eight sewage pump stations. This system conveys approximately 4.5 million gallons of wastewater per day to the City s Water ADOPTED 3-16 JANUARY 19, 2006

52 Reclamation Facility, which has a capacity of 5.1 million gallons per day. To ensure system reliability, the collection system is regularly inspected, hydrocleaned, and repaired. Work is performed in response to work orders (updated daily) and area maintenance of a particular drainage basin. The goal is to completely clean the system every three years. Maintenance is performed bi-monthly on the eight sewage pump stations. Trucks known as Wastewater Collection Combination Units clean City sewers using water pressure and are also capable of vacuuming debris from the sewer system. The City of San Luis Obispo has its own pipeline inspection unit. This unit allows collection system problems to be quickly located and repaired using a closed-circuit video camera system. If an overflow occurs during normal working hours, customers are urged to contact the wastewater collection department. After hours emergencies should be reported to the San Luis Obispo Police Department, who will contact on-call utility staff. The City of San Luis Obispo s Pretreatment Program was established in 1983 to provide protection to the Water Reclamation Facility (WRF) and the sewer collection system by controlling the introduction of non-domestic pollutants to the WFR and system. This program uses the Federal General Pretreatment Regulations (40 CFR 403) to enforce general discharge prohibitions and categorical standards. The City was required by the state to establish the program to protect the WRF from nondomestic wastes that may upset or inhibit the plant s processes, contaminate the sludge or pass through treatment and end up in San Luis Creek, the receiving water for the facility s effluent discharge. An upset or inhibition in the facility can mean reduced treatment of wastes, contaminated sludge that can result in expensive handling and disposal costs, and pass-through which may result in a violation of the facility s discharge requirements and degradation of the creek s environment. The City of San Luis Obispo s Water Reclamation Facility is responsible for treating all of the wastewater (sewage) within the City, Cal Poly and the County airport. The facility treats 4.5 million gallons of wastewater daily, twenty-four hours a day, 365 days a year. Staffing of operators, laboratory analysts and maintenance technicians ensure the WRF is operated and maintained in the most efficient manner possible and complies with federal, state, and local discharge requirements. The most recent upgrade to the WRF was completed to improve the quality of water ADOPTED 3-17 JANUARY 19, 2006

53 discharged into San Luis Obispo Creek. The WRF has very stringent discharge requirements and now produces a highquality effluent that surpasses drinking water standards for many constituents. Plans to use a portion of this effluent to irrigate parks, median strips, landscape and other appropriate uses are being developed under the City s Water Reuse Program. Capacity. The treatment system currently has the capacity to process 5.1 million gallons per day of wastewater on an average dry day. The system is operating at 88% of capacity with an estimated 4.5 million gallons per day currently being processed at the treatment facility. The plant has the capacity to serve a population of up to 50,000. The City is studying the options for expansion of the system to provide adequate capacity as the City continues to grow. Serving future developments that are proposed would be studied as part of the environmental review (CEQA) process. Expanding the capacity would likely be required if the City s processing capability was found to be inadequate. DEVELOPMENT IMPACT FEES Government Code Section places a number of requirements on local agencies that levy development charges as part of funding the cost of capital improvements. Government Code Section is intended to hold agencies to a higher level of accountability whenever charges are established, increased, or imposed and whenever updates or reviews are performed. Section requires ordinances to include language that commits the local agency to establish reasonable development charges and, if those charges are found to not be reasonable, to refund the difference. Meeting these conditions satisfies what is known as the nexus test. These fees have been developed and are reviewed by the City Finance Department on a regular basis. The fees help cover the projected cost of future capital improvements required to serve new development. The City updates impact fees as additional improvements and expenses are identified for the future. ADOPTED 3-18 JANUARY 19, 2006

54 Table 3-5: Development Impact Fees-Citywide Fee Water Impact Fees-Single Family Home Wastewater Impact Fees-Single Family Home Transportation Impact Fees-LOVR/101 Interchange Add-on Impact Fees Current $13,967 per unit $3,377 per unit $1,519 per unit Varies from area to area Impact fees are also calculated for specific projects through fiscal analysis and specific plan preparation. Not only are citywide impact fees considered in this equation, but also additional costs directly related to development projects (i.e. Airport/Margarita Areas) are also included in the final fee calculation. This methodology ensures that when the City approves a development the developer will pay the infrastructure costs of that development. It also allows the City to analyze each project on a case-by-case basis. This gives the City the ability to understand the fiscal impacts, positive and negative. The City may also use discretion in applying the impact fees to allow for the development of affordable housing or to provide incentives for the development of a project. In the Land Use Element, the City has adopted the policy that new development shall pay for associated costs. This policy is stated in the next column: 1.15 The costs of public facilities and services needed for new development shall be borne by the new development, unless the community chooses to help pay the costs for a certain development to obtain community-wide benefits. The City will adopt a development-fee program and other appropriate financing measures, so that new development pays its share of the costs of new services and facilities needed to serve it. TRANSPORTATION - STREETS - ROADS The Circulation Element of the City s General Plan describes how the City will manage transportation issues as the City grows and develops. The Circulation Element was adopted in 1994 along with the Land Use Element. This coordinated approach allowed the City to plan for transportation commensurate with the planned growth and development. The Element was amended in 2003 to reclassify seven residential collector streets as local segments. The City initiated this amendment to improve the accuracy of classifications and maintain 25 mph speed limits on these street sections. ADOPTED 3-19 JANUARY 19, 2006

55 The City prepares an annual report regarding the implementation of the General Plan, including the Circulation Element. This report documents the progress made toward achieving the goals of the Circulation Element and is broken down into the following categories: C Repaving/Improvements of Pismo Street C Installing 19 bike racks C Installing ADA accessible curbs and sidewalks in Oceanaire and north Foothill Areas C Upgrading crosswalk at Story and Sandercock Streets Transportation Network Improvements, Transportation Planning Improvements, Neighborhood Traffic Management, and Access and Parking Management. In the past year the City completed a number of important projects regarding the transportation system including: C Widening Los Osos Valley Road C Installing new bus stop signs C New crosswalks at Orcutt and McMillan, Orcutt and Duncan and Laurel and Orcutt C Installed pedestrian signals at Chorro and Higuera Streets Several transportation projects are in the planning stages and are progressing toward construction. These include the Los Osos Valley Road-Highway 101 interchange, the Prado Road-101 interchange, a traffic signal at Broad and Pacific Streets, and signal modifications at Marsh and Santa Rosa and Marsh and Osos Streets. These major projects will provide for the continued upgrade of the City circulation system. Capital Improvement Plan: Streets-Roads. The City s Capital Improvement Plan is a fouryear plan that organizes and prioritizes the capital improvement projects that are proposed by the City s Functions groups. The Transportation functional group contains the improvements proposed for the City s transportation system over the next four years. The Transportation projects are broken into the following categories: Table 3-6: Transportation Project Categories Category Streets 4,362,100 2,966,800 6,194,000 12,977,300 Pedestrian and Bicycle Paths 205, , ,000 2,400,000 Transit 156, ,000 1,775,000 1,450,000 Creek and Flood Protection 70,000 50,000 70,000 35,000 Parking 400,000 1,840,000 4,900, ,000 Totals 5,193,100 5,846,800 13,679,000 17,212,300 The chart below is derived from the table above and shows the increasing levels of expenditures anticipated by the City. The City consistently invests in maintaining its streets each year. The large increases in expenditures anticipated through are due to the construction of the LOVR interchange ($8.8 million), the design for the ADOPTED 3-20 JANUARY 19, 2006

56 railroad Safety Trail ($2.4 million) and the development of the North Area Transit Facility ($6.0 million). Figure 3-3: Capital Improvement Plan 2003 through 2007 $20,000,000 $16,000,000 $12,000,000 $8,000,000 $4,000,000 $ Streets Pedestrian and Bicycle Paths Transit Creek and Flood Protection Parking The City has a very proactive Capital Improvement Plan for accommodating future growth and development of the City s streets and within the Circulation system. The City is currently responsible for maintaining approximately 120 miles of streets and, to that end, has repaved and resealed significant portions of the roadway system over the last several years. This extensive maintenance program has resulted in short term traffic delays throughout the City, while achieving the goal of overall improvement of the system. The City has taken advantage of the funding opportunities that became available in the 1990 s encouraging the development of a multi-modal transportation system. According to the San Luis Obispo Council of Government s (SLOCOG) Regional Transportation Plan, the City has constructed a comprehensive network of bike routes and transit services to reduce the use of vehicles occupied by a single person. The City s circulation system is challenged to accommodate future growth that may occur in the Airport Area, Dalidio property, the Margarita Area, Cal Poly and the Froom and DuVaul Ranch areas. Development in these areas would increase traffic volumes and likely exceed acceptable capacity levels. The key intersections that will be impacted include: ADOPTED 3-21 JANUARY 19, 2006

57 Highway 101 and Highway 1 interchange Los Osos Valley Road - Madonna Road intersection - Highway 101 Interchange Broad Street-South Street-Santa Barbara Street Intersection Santa Rosa Street-Foothill Blvd. Intersection State Route Tank Farm Road Prado Road Intersections Higuera Street between Madonna and Marsh Streets capacity. The development of the North Area Transit Facility (NARF) would help alleviate some of the traffic problems. The area is often congested with cars, buses, pedestrians and bicyclists all competing for the limited space in the area. The City is working to develop an integrated downtown transportation center located on the block between Santa Rosa, Monterey, Toro and Marsh Streets. This integrated facility is called the North Area Regional Facility, or NARF. Unless adequate mitigation is implemented as part of the project approvals, levels-of-service at the above mentioned intersections will decrease. The City typically provides for adequate mitigation related to traffic and circulation impacts through the CEQA process. The City has a fixed route bus system that provides transit service to residents and visitors. The system provides six routes as a two-hub system: Downtown and Cal Poly. The buses run every 40 to 60 minutes, with the buses in the north part of town linking with Cal Poly and other buses in the southern part of the City connecting to Downtown. Figure 3-4: North Area Transit This facility would include a parking structure to encourage ridesharing and transit use. The City approved a preliminary transit assessment study in A design consultant was hired and is preparing preliminary designs for review by the City staff and council. The existing downtown transit center located on Osos Street between Mill and Monterey Streets is operating at full ADOPTED 3-22 JANUARY 19, 2006

58 Fire In fiscal year, , the City s Fire Department responded to 2,478 medical situations, 267 fire suppression incidents, 188 hazardous materials incidents, and 1,102 other responses. The City of San Luis Obispo Fire Department website is the source of the following information. Fire Department. There are fifty-five full time employees of the San Luis Obispo City Fire Department. Eleven of these are administrative and fire prevention bureau personnel along with one mechanic. The remaining forty-five are firefighters with emergency response capabilities. There are thirteen Captains, fifteen Engineers, and twelve Firefighters. The Fire Department has five programs. Emergency Operations. The emergency response program protects life and property by responding to medical emergencies, fires, hazardous materials incidents, and other emergencies. Program goals are: Timely responses to emergency calls (4 minutes for all responses) No loss of life from reported emergencies Minimal property damage from reported emergencies. The hazard prevention program prevents injury and loss to life, property and the environment caused by fire, explosion or exposure to hazardous materials. Program goals include: Eliminating fire hazards and investigating fires in buildings, equipment and properties Safely handling and containing all hazardous materials. Broadening public awareness about the dangers of fire and hazardous materials. The life safety program has two focuses: Ensuring that City forces can provide appropriate relief and rescue services following major disasters such as earthquakes, floods, nuclear power plant accidents, hazardous materials spills, and wild land fires. Providing disaster preparedness education and training to the general public. Program goals are: Well-trained disaster response employees Up-to-date disaster response plans City facilities equipped with disaster response supplies and equipment Disaster-prepared residents and businesses Training and Equipment. The Fire Department s Training Division provides training for fire department staff. The Training Division offers both in house and outside training that is required for firefighters who operate in hazardous environments. Annual required training covers many areas and subjects including: structural and wild land firefighting, hazardous materials incidents, medical and rescue emergencies, masscasualty incidents. Training is required for all tasks that are considered hazardous. Targeted subjects of importance are those tasks that are considered high-risk/lowfrequency. ADOPTED 3-23 JANUARY 19, 2006

59 The Training Officer, who holds the rank of Captain, administers the Department s training program. The Training Liaison Officer (TLO) facilitates training for their platoon; one TLO is assigned to each of the three platoons. The Fire Department employs professional firefighters who possess a wide range of knowledge and experience, this valuable resource is utilized daily within the Training Division. Experienced personnel are encouraged to teach classes that serve to benefit all personnel. The Training Division conducts a 10- week fire academy when new firefighters are hired. New recruits are taught the basic principles of firefighting and other aspects of the job, with an emphasis on department specific policies and operating procedures. Promotions go hand-in-hand with the hiring of new firefighters; the Training Division assists with the promotional process in the area of career development. Classes are offered to prepare interested personnel to promote through the ranks of Driver/Operator, Captain, Battalion Chief and Fire Chief. Cooperation with the County Training Officer s Association has proven beneficial to the Training Division; a pooling of resources countywide provides more training opportunities, which benefit the Department. The Fire Department offers its citizens paramedic service; at least one licensed paramedic is available on each fire engine and rescue squad. Training for paramedics is ongoing and required by State and Local authorities. The Fire Department employs five Paramedic Field Training Officers who assist the Training Division with continuing education. These training officers network countywide with other agencies and are members of the County s Emergency Medical Services Agency. The Training Division s overall goal is to provide our highly qualified firefighters with the training necessary to do their job safely and efficiently, carrying out the Fire Department s Mission. Support Services. The technical services program manages and maintains the City's four fire station facilities, their grounds and miscellaneous related equipment, and furnishings. The program goal is attractive, safe and energy-efficient fire stations. Fire Station One (2160 Santa Barbara Avenue) The newest firehouse in the city, Fire Station One at Broad and South Streets is designed to support the Fire Department into the next century. The facility cost about $3.2 million to complete. It houses the administrative offices, the Fire Prevention Bureau, and the department s maintenance shop with one mechanic, as well as emergency response vehicles. San Luis Ambulance also operates a crew from this location, and their ambulance is garaged here. The station is staffed by a Battalion Chief and a 4-person paramedic truck company. Fire Station Two (126 North Chorro) this is the oldest station, built in The station is staffed with a 3-person paramedic engine company. Fire Station Three (1280 Laurel Lane) Completed in 1960 to cover growth at the south end of the city, Station 3 is located at the corner of Laurel Lane and Augusta Street. The station is staffed by a 3-person paramedic engine company. Fire Station Four (1395 Madonna Road) constructed in 1978; under the administration of Mayor Kenneth ADOPTED 3-24 JANUARY 19, 2006

60 Schwartz, Fire Station Number Four is located at the intersection of Madonna Road and Los Osos Valley Road. The station also acts as the base of operations for the Fire Captain, who is the Paramedic Coordinator for all the Paramedics on the Fire Department. The station is staffed by a 3-person paramedic engine company. The following table is a listing of the fire response vehicles used by the Fire Department to respond to emergency incidents. The City s Fire Department is able to serve the City s emergency response needs, however, expansion of the fire department must be considered as growth and development increase. ADOPTED 3-25 JANUARY 19, 2006

61 Table 3-7: Emergency Response Vehicles UNIT Make Type Status Truck Pierce (Lance) Quint, 1500 GPM, 75 Aerial ladder First Line Engine Pierce Lance 1500 GPM Triplecombination Pumper First Line Engine Pierce Lance 1500 GPM Triplecombination Pumper First Line Engine Pierce Lance 1500 GPM Triplecombination Pumper First Line Engine Pierce (Javelin) 1500 GPM Triplecombination pumper Reserve Engine Mack CF 1500 GPM Triplecombination Pumper Reserve Engine KME Westates Squad Ford E GPM Triplecombination Pumper Wheeled Coach Emergency Patient Transport OES Mutual Aid Support Command 2000 Chevrolet Tahoe 4 x 4 Command Vehicle First Line Command 2003 Ford Crown Victoria Chief s Command Vehicle First Line Command/Train Ford F-150 4x4 Crew Cab Support Brush Ford F-550 4X4 Skid Mount Delayed Utility Ford F-350 4x4 utility/repair Support Utility Trailer 7x12 Trailer Towed Equipment Storage Support 1905 Seagraves Historical Unit Chemical Wagon Display 1941 Mack Historical Unit 750 GPM Triplecombination Pumper Display ADOPTED 3-26 JANUARY 19, 2006

62 POLICE The City of San Luis Obispo provides law enforcement services for the residents of the City. The total budget for the Police Department for fiscal year is $9.6 million. The services provided by the Department are briefly described below. The City of San Luis Obispo Police Department website is the source of the following information: The San Luis Obispo Police Department consists of 87 employees, 61 of which are sworn police officers. The Department is divided into two bureaus, with a Police Captain commanding each. Operations Bureau: The Operations Bureau consists of a Patrol Services Division, Traffic Safety Unit, Situation Oriented Response Team (SORT), and Neighborhood Services. Patrol Services: provides 24-hour emergency and non-emergency response and service to the community and includes special assignments such as Field Training Officer, Downtown Officer, Crime Scene Investigator, SWAT, and others. Personnel within the patrol division work a modified 3/12-week. A typical Watch compliment will include a Lieutenant Watch Commander, Sergeant Field Supervisor, and several officers. Traffic Safety Unit: provides motorcycle assignments and special traffic enforcement. The Traffic Safety Unit is comprised of five patrol officers supervised by a Sergeant. The unit is responsible for enforcing traffic laws, investigating traffic collisions, and other traffic safety duties as assigned. Situation Oriented Response Team (SORT): The SORT unit consists of three officers supervised by a Sergeant. SORT provides selective enforcement, and supplements the investigative and patrol units. SORT is involved in youth crime, alcohol violations, narcotics, and vice related investigations. Neighborhood Services: The Neighborhood Services Manager coordinates the response of City departments to neighborhood issues. In addition, SNAP, Neighborhood Enhancement Ordinance enforcement, Crime Prevention, Working to Improve Neighborhoods (WIN), and various other programs originate from this office. Administrative Services Bureau The Administrative Services Bureau consists of Administrative Services Division, Investigative Division, Communications Division, and Records Unit. Administrative Services Division: The Administrative Services Division consists of a Lieutenant and a Sergeant who are responsible for programs administration, internal affairs investigation, civil and permit investigation, training, and special projects. Investigative Division: The Investigative Division is supervised by a Lieutenant and includes two detectives working property crimes (burglary, grand theft, fraud etc.) and three detectives working crimes against persons (robbery, assault, rape, murder). Also working out of the Investigative division are a School Resource Officer (assigned to the high school and middle school) and the D.A.R.E. officer (assigned to the elementary schools). In addition, one ADOPTED 3-27 JANUARY 19, 2006

63 detective is assigned to the county wide Narcotics Task Force unit. Communications Division: Communications dispatchers receive incoming telephone calls for service, including 911 calls. Police dispatchers are also responsible for dispatching fire department personnel and applying emergency medical dispatch techniques. The dispatch staffing consists of 9 Communication Technicians managed by 2 Communications Supervisors, answering directly to the Communications manager. Records Unit: Records Clerks are responsible for processing and maintaining the large amount of documentation generated by all divisions within the department. Their work includes meeting state crime reporting standards and preparing court paperwork to the District Attorney's office. The records unit consists of 4.5 records clerks and a records unit supervisor. Building and Facilities Maintenance: Maintenance is responsible for all facility maintenance at the Police Department and three offsite facilities. Service Levels. Service levels are often measured in terms of the number of sworn officers per 1,000 people in a community. The following is a ratio of full-time officers per 1,000 in population for the City of San Luis Obispo, calculated using the following formula: 45,000 population 1000 = 45 people 68 sworn employees 45 = 1.51 officers per 1000 people The following table compares the ratio of sworn officers per 1,000 people between the Cities of Grover Beach and Arroyo Grande along with the Statewide and National averages for cities of similar sizes. Table 3-8: Officers per 1,000 People Jurisdiction Police per 1,000 people San Luis Obispo 1.51 officers per 1000 Grover Beach 1.61 officers per 1000 State of California* 1.60 officers per 1000 Nationwide* 2.00 officers per 1000 *Cities of similar size Note: Comparative information is based on figures provided by the California Commission of Peace Officer Standards and Training as well as the FBI. (Source: Arroyo Grande Police Department Website.) ADOPTED 3-28 JANUARY 19, 2006

64 Figure 3-5: Sworn Officers per 1,000 People 2.5 Officer/ SLO GBPD AGPD Calif. Nation Public Perception Safe Community. The Action for Healthy Communities completes an indicators report every two years. One of the factors considered is public safety service. A statistically valid telephone survey is conducted that asks the question: How safe would say you feel in your neighborhood? The following chart shows that from residents in San Luis Obispo perceived their City as becoming increasingly safe. ADOPTED 3-29 JANUARY 19, 2006

65 Figure 3-6: San Luis Obispo- Perception of a Safe Community Very Safe Somewhat Safe Not safe at all The figures on the next page show the violent and property crime rates per 1,000 people for the City of San Luis Obispo from 1996 through Violent crimes include homicide, rape, robbery, and aggravated assault. Property crimes include burglary, larceny, auto theft, and arson. In San Luis Obispo, most of the violent crimes committed are aggravated assault. The bulk of the property crimes are related to larceny. ADOPTED 3-30 JANUARY 19, 2006

66 Figure 3-7: Violent Crime Rate City of San Luis Obispo - Violent Crime per 1000 people Crime per 1000 people Violent Crime Rate Figure 3-8: Property Crime Rate Crime per 1000 people City of San Luis Obispo - Property Crime per 1000 People Property Crime Rate ADOPTED 3-31 JANUARY 19, 2006

67 These statistics are from the California Department of Justice Law Enforcement Information Center and the U.S. Census, The following figures show the City of San Luis Obispo s property and violent crime rates compared to the other cities in the county. Property crime involves burglary, larceny, auto theft and arson. The crime rate is normally calculated as the number of crimes per 100,000 people. Due to the lower population of San Luis Obispo County cities, the crime rate shown above is per 1,000 people Figure 3-9: Comparative Crime Rate Crime per 1000 people City Comparisions Property Crime per 1000 people Atas A.G G.B P.R P.B SLO M.B Atas A.G. G.B. P.R. P.B. SLO M.B. ADOPTED 3-32 JANUARY 19, 2006

68 Violent crime involves homicide, rape, robbery, and aggravated assault. These statistics are from the California Department of Justice Law Enforcement Information Center and the U.S. Census, The crime rate is normally calculated as the number of crimes per 100,000 people. Due to the lower population of San Luis Obispo County cities, the crime rate shown above is per 1,000 people. Figure 3-10: Comparative Crime Rate 10 City Comparisions Violent Crime per 1000 people Crime per 1000 people Atas A.G G.B P.R P.B SLO M.B Atas A.G. G.B P.R. P.B. SLO M.B. ADOPTED 3-33 JANUARY 19, 2006

69 WRITTEN DETERMINATIONS The following written determinations are based on the information contained in the above section regarding Infrastructure Needs and Deficiencies: Water Supply and Demand 1. Based on the information provided in the water supply and demand sections of this document, the City appears to have the potential for adequate supplies of water to serve the Sphere of Influence over the next 20 years. Further study of the water resource situation, however, will be needed as projects are considered and approved by the City. 2. The Safe Yield of the City s Water Supply is estimated to be 7,450 afy in the Water and Wastewater Element of the City s General Plan. The estimated demand by the City at build out of the current General Plan is 9,096 afy. 3. The City does not currently have an adequate water supply to serve the anticipated build-out under their current General Plan, but is planning to have access to supplemental water resources. 4. The City s policies do not allow water services to be provided in excess of the available supply. 5. The City has identified several supplemental water sources to provide water for future residents and businesses, including, Water Reuse (1,200 afy), Nacimiento Pipeline (3,380 afy), and Water Conservation (340 afy). 6. The City has, or will have, available water resources to meet current and future City demand projections for areas within the City and the Sphere of Influence. 7. The City has a very effective water conservation program, which, since 1987, has reduced water use by 34% by using short-term and long-term measures depending on the severity of the drought. 8. The City maintains and operates an extensive water distribution and transmission system that effectively delivers water to the City residents and businesses. The City regularly upgrades and maintains the system through the Capital Improvement Plan. ADOPTED 3-34 JANUARY 19, 2006

70 Wastewater 9. The City effectively operates and regularly maintains the wastewater collection and treatment system, which consists of 150 miles of sewer pipeline, 2,500 manholes, eight pump stations, and a wastewater treatment and reclamation facility. comprehensive Capital Improvement Plan. 14. The City s circulation system is challenged to accommodate future growth that may occur in the Airport Area, Dalidio property, the Margarita Area, Cal Poly and the Froom and DuVaul Ranch areas. 10. The treatment facility has the capacity to process 5.1 million gallons per day of wastewater and is processing an estimated 4.5 million gallons per day. The system is operating at 88% of capacity. 11. The City is in the process of evaluating expansion options for the wastewater treatment/reclamation facility that would accommodate new and in-fill development. 15. Several transportation projects are in the planning stages and are progressing toward construction. These include the Los Osos Valley Road-Highway 101 interchange, the Prado Road-Highway 101 interchange, a traffic signal at Broad and Pacific Streets, and signal modifications at Marsh and Santa Rosa and Marsh and Osos Streets. These major projects will provide for the continued upgrade of the City circulation system. Roads and Streets 12. The City s Circulation Element, in conjunction with the Land Use Element and Capital Improvement Plan, prioritizes and manages the transportation and traffic network. Infrastructure 16. The SOI sites would be required to extend physical infrastructure to their respective sites and pay their pro-rata share for other City services as a condition of project development. 13. The City continues to improve the transportation network by allocating funds and implementing transportation improvement projects through the 17. The City continues to upgrade and maintain its public facilities, including roads, and wastewater treatment and collection system. ADOPTED 3-35 JANUARY 19, 2006

71 18. The Capital Improvement Plan provides the blueprint for upgrading many of the City s facilities. Funding is set aside each year during the budget process to complete projects and is dependent on available revenues, the local economy, budget priorities, and the availability of other funding sources. the policies and standards contained in the General Plan are implemented when considering annexations and development projects. 22. The City s facilities comply with environmental and safety standards and no major enforcement actions by state or federal agencies were identified. 19. Additional infrastructure to accommodate future development will likely include expanded water supply lines, improved water storage and distribution facilities, upgraded wastewater facilities, and increased road capacity. 20. The City s General Plan, Wastewater and Water Element, Capital Improvement Plan, and Circulation Element address the provision of infrastructure for wastewater, roads and other public facility needs. 21. The City should be able to provide the services (sewer, police and fire) to development within the updated Sphere of Influence and continue to adequately serve existing residents if Police and Fire 23. The City has a comparable crime rate with other cities in the County and will have the opportunity to add police and fire staff and facilities as needed to cover Sphere of Influence area. 24. The City continues to upgrade fire and police facilities and increase fire and police staff as needed to serve the residents and businesses of San Luis Obispo. 25. Agreements to provide fire and police services at no extra cost to existing residents will be worked out with the developer during the preparation of the Specific Plans and other permits. ADOPTED 3-36 JANUARY 19, 2006

72 3.2 GROWTH AND POPULATION Purpose: To identify anticipated growth patterns and projected population increases. Population San Luis Obispo has experienced a slowdown in the rate of growth since From 1970 to 1980 the City s population increased at an average growth rate of 2.2% per year. In the 1980 s ( ) the City s population again grew at a rate of 2.2% per year. Over the past 10 years the City has grown at a rate of approximately.5% per year. From 1990 to 2000 population growth slowed to about a rate of.5% per year. The following table shows the past census data and projects population increases based on a 1% growth rate as targeted by the City s General Plan. TABLE 3-9: HISTORICAL & PROJECTED POPULATION GROWTH 1970 (1) 1980 (1) 1990 (1) 2000 (1) 2010 (2) 2020 (2) 2030 (2) Population 28,036 34,252 41,958 44,174 48,594 53,453 58, Year Increase -- 6,216 7,706 2,216 4,420 4,859 5, year Avg. Incr % 22% 5% 10% 10% 10% Average per Year % 2.2%.5% 1% 1% 1% (1) Source: U.S. Census (2) Estimated at 1% per year growth rate Housing Units and Growth Projections In 2003, the California Department of Finance estimated that 44,359 people lived in the City of San Luis Obispo. In 2000, the U.S. Census stated the total number of dwelling units as 19,340 with an average household size of 2.27 persons. The City projects that from 2001 to ,872 dwelling units could be constructed under the existing policies and standards. This would bring the total number of units in the City to 25,212 by The City s General Plan policies provide for an estimated population of 57,700 at build out. ADOPTED 3-37 JANUARY 19, 2006

73 General Plan Annual Report The City Community Development Department prepares an annual report regarding the implementation and status of the General Plan. The report is organized into two key sections: the administration of the General Plan including element updates and amendments, and the implementation of the various elements and policies found in the General Plan. Under each of these categories the following General Plan matters are discussed: Table 3-10: Summary of General Plan Annual Report Section Administration of General Plan Implementation of General Plan Specific Issue General Plan Status Element Updates Amendments Development and Population Growth Management Open Space Protection Historic Preservation Major Implementation Plans Circulation Safety Neighborhood Quality Parks and Recreation Sub Area Planning and Development Other Agencies Activities Program Status The following section will highlight key portions of this report that are relevant to the Municipal Service Review. Element Updates. The City adopted the updated Housing Element in March The Housing Element provides the policies and procedures for meeting the housing needs of the City s residents. Consistent with State Law, the update of the Housing Element was required by the State Department of Housing and Community Development (HCD). The HCD reviews the Element for consistency with State Law and provides written findings to the City when its review is complete. The Housing Element includes the various State Law components required. The Element includes an extensive ADOPTED 3-38 JANUARY 19, 2006

74 information base found in the appendices. Key appendices include: C C C C Appendix A: Community Profile Appendix B: Housing Needs Appendix C: Housing Constraints and Resources Appendix D: Residential Land Resources Several other appendices contain information that is pertinent to understanding and processing the Housing Element. The Goals, Policies and Programs found in the Housing Element are the Housing Implementation Plan for the period from January 1, 2001 through July 1, The table to the right shows the total number of units that the City must accommodate as 4,383 units. The City s Housing Element proposes to accommodate 4,087 units. HCD has the discretion to certify an element with a lower number if warranted by the circumstances. HCD completed the review, and certified the Housing Element. Table 3-11: SLOCOG Regional Housing Needs Allocation Units By Income Category Above Very Low Low Moderate Totals Moderate % of Units Arroyo Grande ,192 7% Atascadero ,359 8% Grover Beach % Morro Bay % Paso Robles ,266 13% Pismo Beach % San Luis Obispo 1, ,185 4,383 24% County 4,284 Unincorp. 1, ,020 39% Total Units 4,308 2,933 3,283 7,511 18, % ADOPTED 3-39 JANUARY 19, 2006

75 The City is also in the process of updating the Conservation, Open Space and Energy elements. These elements will be combined into one Conservation Element that will address all of these issues. Also, any open space and conservation-related policies and programs found in other parts of the General Plan would be consolidated into this element. This update is in process and should be completed in General Plan Amendments. In 2003, the City amended the General Plan with text and map amendments. Map amendments typically change the zoning of a particular site or area. Amendments to a City s General Plan are not unusual and are evaluated by the Planning Commission and City Council on a caseby-case basis. Amendments can be initiated by the City or by a property owner. The most significant changes were associated with the update of the Commercial Zoning designation to create a Community Commercial Land Use category. This designation was applied to five large shopping centers that serve the community s shopping needs, including: Laguna Plaza, Foothill Plaza, Marigold Center, Scolari s/rite Aid, and Food for Less/Trader Joe s. This change was made to expand the type of land uses that might be accommodated in these shopping centers, thereby increasing convenience for the area residents. Growth Management. The City implements growth management policies by phasing housing construction in large annexation areas. These locations would include the Irish Hills, Margarita and Orcutt areas. The City has adopted a phasing schedule that allows for a specific number of residential units to be constructed over a three-year period. The Council considers the phasing schedule as needed and adjusts it (if appropriate) to meet the needs of project proponents and residents of the City. The Irish Hills area is expected to be built out during the three-year period. No construction in the Margarita and Orcutt areas is expected in this same time period. Amendments to the phasing schedule will likely be considered to reflect work being completed on the Margarita and Orcutt Area Specific Plans, as well as revisions to the Housing Element. Open Space Protection. The City has adopted many policies regarding the protection of open space and sensitive areas in and surrounding the City. The City has identified a large greenbelt area that encompasses the City and surrounding environs. The City is working toward protecting the biological, agricultural, aesthetic, and/or recreational resources that are found in and around the City. The map below shows the ADOPTED 3-40 JANUARY 19, 2006

76 Greenbelt adopted by the City. Specific Plans. The City is in the process of completing two major Specific Plans that will identify land uses, delineate the parcel configuration, provide for a coordinated circulation system, and establish design standards for the Margarita and Airport Areas. The City requires that Specific Plans be prepared prior to the annexation of an area being completed. By completing a Specific Plan prior to annexation LAFCO can act as a responsible agency through the Environmental Review process. This method provides for full disclosure of environmental impacts based on a detailed project description and allows for a more comprehensive public discussion about the project. The Margarita Area contains about 418 acres in and near the south central part of the City. A large portion of this area is already within the City limits with a smaller piece of the property needing to be annexed to the City when the Specific Plan is complete. Figure 3-11: Greenbelt Area and Sphere of Influence ADOPTED 3-41 JANUARY 19, 2006

77 The Margarita Specific Plan is described on the City s website: The Margarita Area is located in the southern part of the City and is bounded by South Higuera Street, Broad Street, Tank Farm Road, and the ridge of the South Hills. The plan provides a comprehensive land use program for the planning area along with development standards to guide future public and private actions relating not only to physical development, but also the conservation of open space and natural resources. This is the City Council draft, which was reviewed by the Council during a special meeting on September 28th and was approved at the October 12th meeting. The Land Use Element Map has been officially changed with the Council action, and with the Council's approval on October 19th of the corresponding zoning ordinance the zoning map and MASP text will take effect on November 18. During the next month staff will be producing the final document. The Margarita Area would provide many of the residential dwellings needed to balance the projected job growth anticipated in the Airport Area. The Airport Area Specific Plan, when adopted, would include large areas designated for services and manufacturing and business parks, increasing the employment base of the City. the City and already within the City s Sphere of Influence. The City adopted the Plan in August The Orcutt Area Specific Plan covers about 200 acres in the southeast part of the City. The proposed project would dedicate about half of this area to open space and parks. The balance of the area would be used to accommodate various housing types. The Environmental Impact Report is being prepared and should be out for review in Dalidio The Dalidio property is a 131-acre property located within the City s existing Sphere of Influence and Urban Reserve Line. The property is surrounded by the City and is essentially an island within the City Limits. The property owner and developer are evaluating their options for future development and have submitted the project for County review and consideration. The County has activated the General Plan Amendment application and will be evaluating projects through the development review process. The Airport Area is about 1,000 acres of land adjacent to the southern portion of ADOPTED 3-42 JANUARY 19, 2006

78 LAFCO Questions The following section of the analysis addresses key growth and service-related questions that have been adopted by San Luis Obispo LAFCO for preparing the Municipal Service Review. A. How does the projected growth of the proposed Sphere of Influence area compare with present County land use designations? an application for annexation. The City s Urban Reserve Boundary also anticipates the growth that may occur over the next 20 years. In the City s Land Use Element land uses are designated in general terms, as are potential expansion areas. The map on the following page is from the Land Use Element and shows the urban reserve line, possible land uses, and expansion areas for the City. The Sphere of Influence for the City of San Luis Obispo expands into some areas where the County has already approved development. The City s current General Plan is based on the ability of the City to accommodate a population of 57,700. Currently, the City s population is approximately 44,400 people. The year in which the City reaches their projected build out is driven by a number of factors, including economic and real-estate market conditions. The City s existing Sphere of Influence identifies the probable corporate boundaries for the City for a 20-year period. Per state law, the expansion of the City s corporate boundaries into its SOI cannot occur until LAFCO approves ADOPTED 3-43 JANUARY 19, 2006

79 Figure 3-12: Urban Reserve Line ADOPTED 3-44 JANUARY 19, 2006

80 In completing the recent update of the Housing Element, the City produced a number of studies regarding housing and residential land resources. This section focuses on the growth that may occur in the unincorporated expansion areas. The following tables summarize the growth that is projected for these expansion areas. The County s build out numbers are based on the following assumptions: 1) 7 units per acre density for Single Family Zoning, 2) a 75% absorption rate, and 3) 629 acres of Residential Single Family land. Table 3-12: Estimated Housing Capacity in Expansion Areas, 2003 Expansion Area Estimated Units in City Estimated Units in County (1) Orcutt-231 acres 979 2,311 Margarita-418 Acres Edna Islay West 54 N/A Minor Annexations/Cal Poly (2) 2,091 0 Totals 3,992 3,302 Sources: Housing Element, Appendix C Housing Constraints and Resources, City of San Luis Obispo, 2003 County Land Use Element, San Luis Obispo Area Plan, 2000 (1) Residential Single Family Zoning in the unincorporated urban area (2) Foothill Saddle, Luneta, CDF, Highland, Miossi, Alrita, Maino, Cal Poly-900 student apartments B. How have surrounding County land use patterns evolved and what impacts have they caused on infrastructure, e.g., roads, water, sewer, fire, police? The County has approved several projects on the fringes of the City that have caused concern and in some cases opposition by the City: C Congregation Beth David FEIR and Conditional Use Permit, May 2004, 18,210 sq. ft. religious facility on 92- acre site; Applicant: Congregation Beth David; Location: LOVR near Foothill Blvd. C C C Maddalena General Plan Amendment, May 2004, Amend the San Luis Obispo Area Plan to change 56 acres from Agricultural to Industrial, Commercial Services, and Residential Rural; Applicant: Ben Maddalena; Location: West side of Hidden Springs Road, west of Hwy 227 and south of the City of San Luis Obispo, adjacent to the Urban Reserve Line. Vineyard/Meadowbrook Church FEIR and Conditional Use Permit, May 2003; new 1500 seat church, 16,000 sf office and classrooms on 63.4 acre site; Applicant: Vineyard Community Church, Location: 1695 Calle Joaquin. Avila Ranch Industrial Subdivision and Planned Development, March 2002; Subdivide 121 acres into 19 industrial lots and planned development; Applicant: Ben ADOPTED 3-45 JANUARY 19, 2006

81 C Maddalena, Location: 396 Buckley Road (Near intersection of Buckley and Jespersen Rd., just south of City limits). Agape Christian Fellowship Church, June 2002, NOP for EIR on new 608- seat church and 2 education buildings; Applicant: Agape Christian Fellowship Church, Location: Laureate Lane (off O Connor Way, just outside City s NW limits). C Weyrich Subdivision, July 2001, Subdivide 299 acres of ag-zoned land for fifteen 2-acre lots plus vineyards: Applicant: Weyrich Development Co., Location: Edna Valley, off of Greystone Pl. and Hwy 227. C The Marketplace Development, October 2001, Amend GP and rezone 131-acre site for mixed-use development; Applicants: William Bird/Ernie Dalidio, Location: Dalidio Expansion Area (just outside City limits, adjacent to the Madonna Plaza Shopping Center). C Murphy Subdivision, March 2000, Amend County General Plan from Agriculture to Residential Suburban and move the Urban Reserve Line to allow additional urban uses; Applicant: Nick Murphy, et. al., Location: 1165 Farmhouse Lane. C C Jewish Community Center, September 2000, Conditional Use Permit to allow a religious facility; Applicant: John Belsher, Location: O Connor Way area. Monastery of the Risen Christ, May 1997, Conditional Use Permit to allow a monastery expansion and conversion of barn to monastery. Applicant: Monastery of the Risen Christ, Location: O Connor Way area. C COG Residential Development, November 1997, Create 35-lot custom residential subdivision (Tract 2270); Applicant: COG, Location: Los Osos Valley Road, adjacent to west City limits. In some cases, the projects have caused the City to provide emergency response services outside the City Limits due to the nature of mutual and automatic aid agreements between the City and the County. Emergency situations that present an imminent threat to public health and safety require the response of the closest emergency response resources. On the fringes of the northern and central City, the County Fire Department cannot respond to these situations as quickly as the City can. The County contracts with the California Department of Forestry for emergency response services. The closest station is located at the Airport. Another issue is the construction of package sewer plants and individual wells to serve developments in the unincorporated areas. Building infrastructure to serve individual development projects can be inefficient. The City and County should consider working with property owners toward the goal of having the City provide services in areas that could be more efficiently and effectively served by the City. The Memorandum of Agreement (MOA) between the City and the County provides for early coordination regarding these issues. ADOPTED 3-46 JANUARY 19, 2006

82 C. Will the proposed changes to the Sphere of Influence increase pressure to develop surrounding County lands causing an increase in growth potential? The proposed Sphere of Influence is not significantly larger than the existing SOI and should not increase the potential for growth on surrounding unincorporated lands anymore than already exists. It is the objective of the City to develop at a rate of growth which allows concurrent provision of adequate services necessary to meet the needs of additional growth, while protecting both the environmental and aesthetic quality of the community. The City has determined the acceptable annual population maximum growth rate to be 1.00% (Draft General Plan 2025, Land Use Element). sewer, and road infrastructure and fire and police. 3. After reviewing possible expansion areas and applicable City and County land use policies, it is concluded that the SOI expansion area represents a reasonable and logical expansion of the City. 4. There is a moderate likelihood of growth in the proposed SOI area in the next 10 to 20 years. 5. The City is planning to update the Land Use Element of the General Plan in the next few years. 6. The City s current General Plan is based on the ability of the City to accommodate a population of 57,700. Currently, the City s population is approximately 44,400 people. WRITTEN DETERMINATIONS 1. The City s General Plan provides for the logical and reasonable growth and development of the City. 2. Development of the Sphere of Influence areas in the City under their land use policies and procedures would allow for areas to be served with City services including water, 7. The City implements growth management policies by phasing housing construction in large annexation areas. These locations would include the Irish Hills, Margarita and Orcutt areas. The City has adopted a phasing schedule that allows for a specific number of residential units to be constructed over a three-year period. ADOPTED 3-47 JANUARY 19, 2006

83 8. The City Community Development Department prepares an annual report regarding the implementation and status of the General Plan. The report is organized into two key sections: the administration of the General Plan including element updates and amendments, and the implementation of the various elements and policies found in the General Plan. 9. The Memorandum of Agreement to which the City and County agreed provides the mechanism for the City and the County to work together on land use projects proposed in the Sphere of Influence. ADOPTED 3-48 JANUARY 19, 2006

84 3.3 FINANCING CONSTRAINTS & OPPORTUNITIES Purpose: To review the City s existing financial documentation and identify any financial constraints or opportunities. A. What is the current fiscal status of the jurisdiction? What are the indicators? Given the State s Budget crisis and the possible reduction in State revenues, the City is in fairly stable financial condition. With the exception of State funding sources, the revenue sources are diverse and consistent. The City contains expenditures through a process of community goal setting and prioritization of expenditures through a comprehensive discussion with stakeholders. Indicators of the City s financial condition include a balanced budget for fiscal years The budget projects adequate funding to continue with basic services and adequately maintain existing facilities, infrastructure and equipment. This is a significant accomplishment considering that the City is facing its most challenging financial situation since when recession and State revenue reductions placed the City in a similar situation. The City has established a comprehensive fiscal policy base that guides the preparation and management of the budget, identifies the City s goals and work programs, and summarizes the progress toward previously established City goals. From this policy base the City prepares the Financial Plan which functions as a Policy Document, Fiscal Plan, Operations Guide, and Communications Tool. This leads to a well-organized financial planning process that is based on input from the community, comprehensive fiscal information, and clearly stated documentation. The City prepares a five-year financial forecast on an annual basis. This forecast, completed in April 2003, indicated that the City would face a $7 million budget gap annually. The City identifies five key factors that contribute to this gap: 1. Unprecedented increases in retirement costs due to investment losses by CAL PERS with which the City Contracts for retirement benefits. 2. Increasing insurance costs in all areas: workers compensation, general liability and property. 3. Tepid trends in sales tax and transient occupancy tax revenues. 4. Infrastructure maintenance costs. 5. New service responsibilities; i.e. Damon Garcia athletic fields. ADOPTED 3-49 JANUARY 19, 2006

85 The City has been very proactive in addressing the financial situation. In 2001 the City anticipated that a fiscal crisis might be looming and prepared a six-point Fiscal Health Contingency Plan. This plan helped prepare the City to take several actions in response to a deteriorating financial picture and thus preserve the fiscal health of the City. Fiscal Health Contingency Plan 1. Keep reserves at minimum levels 2. Follow key fiscal policies 3. Closely monitor fiscal health 4. Assess the problem 5. Identify options 6. Take actions infrastructure and facilities, reducing operating costs and related service levels, and implementing selected new revenues as allowed under Proposition 218. These recent actions, combined with the City s proactive approach, have kept the City on stable financial footing. The following statement from the Financial Plan summarizes the situation: The City is facing its toughest fiscal outlook in many years. Nonetheless, we go into in strong fiscal shape, with an estimated fund balance that is $1.6 million higher than our minimum under our fund balance policy. This has not happened by accident, we have consciously put in place a number of short term cost saving measures over the past 18 months in order to best position us for the tough times ahead. The actions that are being implemented by the City include: a hiring chill, a total hiring freeze in place at the beginning of 2003, travel-training chill in place for over a year, and budget reductions of $1.8 million. These actions produced a $1.6 million reserve above the City s policy minimums and helped greatly in balancing the budget. To close the budget gap, the City adopted a strategy that included using available reserves above the minimum policy levels, developing a Capital Improvement Plan that is the lowest possible while reasonably maintaining the City s existing B. Will the fiscal impacts of the proposed changes to the Sphere of Influence be greater or less than the fiscal benefits? While residential uses generally do not cover their full cost of municipal services from property and local sales taxes that are generated, the opportunity to require privately maintained roads and open space in residential development projects, coupled with the inclusion of commercial uses suggests that the SOI areas as recommended could break even in terms of revenues versus costs. Also, the median home price in the City ADOPTED 3-50 JANUARY 19, 2006

86 was $500,485 in The prices continue to increase. Since the property taxes are calculated based on the sales price of homes, the higher the selling price the more property tax revenue would be generated. These issues would be thoroughly analyzed as the development process moved forward for areas located in the SOI. The fiscal impact of development on the City s budget depends upon what type of development is approved: residential, commercialretail, office, hotel, or industrial, and the City s financial structure. According to the California League of Cities, Financial Structure may include the following: C City s costs of services to the development - costs vary, service levels vary City s particular mix of service responsibilities - e.g., some cities are not responsible for certain services City s share of property tax revenue generated - shares vary in part based on service responsibility City s local taxes and rates e.g. utility tax, hotel tax, business license tax, franchise tax, etc. The fiscal impact of development is also dependent upon the Local Economy. Several factors affect the City s financial picture: C Local property values, which relate to assessed valuation for taxation City s capacity to capture taxable sales from the new development within its jurisdiction - its land-use mix - level and proximity of taxable sales from the new development Property turnover (resale) rates - property is reassessed for taxation upon resale Increased revenues from new homes would be directly derived from property taxes. The likely fiscal benefits to the City from the proposed SOI areas include modest levels of property tax collections from residential land development. These tax collections usually do not cover the costs of serving residential areas with police, fire, roads, and general government services over the long-term. Other residential income that could help offset the costs of residential development would be derived from indirect sales and use taxes and one-time development impact fees. The following chart from the League of California Cities shows, in general, not specific to San Luis Obispo, the revenues generated by a particular development type and the costs of serving the development: ADOPTED 3-51 JANUARY 19, 2006

87 $25 $20 Thousands per acre. $15 $10 $5 $- Single-family Residential 1 Dec02 CaliforniaCityFinance.com Multi-family Residential Industrial Revenues Retail Service Costs Figure 3-13 Likely fiscal costs to the City would typically include public maintenance of infrastructure completed for the new projects in the SOI. Possible programs to minimize and off-set public maintenance costs include private maintenance through homeowner s associations, as well as public maintenance through a JPA or utility district established in cooperation with the County. The provision of landscape-lighting assessment districts is a valuable tool used in many communities to offset on-going maintenance costs. The use of these districts should be considered for large undeveloped properties planned to be included in the City. C. Does the jurisdiction have financial reserves? If so, what percentage of the General Fund do their reserves represent? The City requires departments to maintain reserves of at least 20% of operating expenditures. This is considered the minimum level for maintaining a good credit rating, to provide for economic uncertainties, contingencies for unforeseen expenses, and cash flow requirements. The City balanced the budget while maintaining reserves at the 20% of operating expenditures. The City accomplished this largely by reducing expenditures and adding new revenues to cover the projected $7 million budget gap. ADOPTED 3-52 JANUARY 19, 2006

88 D. How will jurisdictions fund needed capital improvement projects, i.e., bonds, loans, other? 4. The City looks for opportunities to collaborate with the surrounding jurisdictions, as this has proved to be cost effective. The City funds capital improvements using a variety of funding sources including: low interest loans, bonds, impact fees, State and Federal grants, enterprise funds, and general fund contributions. This diverse funding mix enables the City to program and plan for capital improvements in a proactive and flexible manner. WRITTEN DETERMINATIONS 1. The City prepares an award-winning annual budget that clearly and comprehensively describes the services provided by the City to residents and the funds expended for those services. 2. The City has proactively planned for and taken actions to manage the impacts of the State s fiscal crisis on the City s financial resources. 5. The City has in place capital improvement plans, development impact fees, and developer-required mitigation to fund and construct public service needs of new development. 6. The City has in place financial policies and procedures that provide a clear structure for responsible decision-making. 7. The likely fiscal benefits to the City from the proposed SOI areas could include modest levels of property tax collections from residential land development and possible sales tax revenues if development includes retail commercial. 8. There are no apparent fiscal constraints limiting the ability of LAFCO and the City to include the suggested properties within the SOI. 3. The City completes a comprehensive goal setting and prioritization process to identify projects and funding priorities within the community. ADOPTED 3-53 JANUARY 19, 2006

89 3.4 COST AVOIDANCE OPPORTUNITIES Purpose: To identify practices or opportunities that may help eliminate unnecessary costs. A. What cost-avoidance measures does the jurisdiction currently use to minimize costs to citizens (budget process, bidding policies, etc.)? The City has demonstrated the organizational and management expertise to avoid unnecessary costs. The City has established a comprehensive budget and fiscal policy base to effectively allocate limited resources and prioritize programs and projects. These policies are updated on a bi-annual budget cycle to reflect the City s changing goals and objectives. The City s cost-avoidance practices are founded upon the fiscal policies and objectives that are used to guide the preparation and management of the City s budget that is reviewed and established by the City Council each budget cycle. These policies and objectives are comprehensive and cover a number of financial issues. The policies outline the goals for which the City should be striving when preparing a budget document. If the fiscal policies are the foundation of the City s fiscal structure, the budget process represents the framing and functional parts of that structure. In Section B of the citywide budget, the process for preparing the budget is clearly articulated. The following is a list of issues addressed by the fiscal policies established by the City: C Financial Plan and Organization C General Revenue Management C Enterprise Funds Fees and Rates C Investments C Fund Balance Designations and Reserves C Financial Reporting Budget Administration C User Fee Cost Recovery Goals C Revenue Distribution C Appropriate Limitation C Capital Improvement Management C Contracting for Services ADOPTED 3-54 JANUARY 19, 2006

90 B. Are there joint-agency practices that jurisdictions use to reduce costs? The City and the County have worked together to collect development impact fees for traffic impacts related to projects that are developed in the unincorporated areas surrounding the City. The fees are transferred to the City and used to offset traffic impacts to the City caused by these developments in the unincorporated areas of the County. This provides for a more equitable sharing of costs and funds to mitigate impacts. Agreement with County for Santa Margarita Lake EMSA and ambulance service with County/other cities Agreement with County for animal control and spay/neuter services Agreement with Cal Poly for water and wastewater treatment Bomb task force Narcotics taskforce Haz-Mat Team Fiber optic network agreement with Cal Poly Extensive use of cooperative purchasing for a wide range of goods and services, such as computers, office supplies, vehicles, heavy equipment (tractors, backhoes), and fire engines. The City is involved with cooperative activities with the following jurisdictions and agencies: Transit service agreement with Cal Poly Agreement with County Airport to provide water/sewer service Nacimiento Pipeline Project (County/City, Paso Robles) Cal Poly/City/FPAC agreement for performing arts center Whale Rock reservoir (City/Cal Poly/California Men s Colony) CJPIA (Insurance pool) Joint use agreements with school district for shared facilities Day care services at school district sites Multi-purpose gym cooperative agreement with school district El Chorro field agreement with County Training consortium (via Leibert, et al.) Agreement with Cal Poly for fire service Agreement with County for Prado Day Center ADOPTED 3-55 JANUARY 19, 2006

91 C. Are there services provided to the Sphere of Influence areas that are duplicated between the jurisdiction and other public service agencies? Fire Station is located at the San Luis Obispo airport located on Broad Street. Providing these services can cost the City money and staff resources being allocated outside the City. Figure 3-14 Several developments in the unincorporated areas, particularly on the on the fringes of the City, may depend on the City s capability as a first responder in emergency situations. From a jurisdictional perspective, the County Fire Department and Sheriff s Department should respond to these locations, but practically speaking the City is in a better position to respond to these areas more quickly in an emergency situation. This scenario is illustrated in the map below. Please note that this first responder situation is especially evident on the west side of the City. Also, the only County ADOPTED 3-56 JANUARY 19, 2006

92 WRITTEN DETERMINATIONS 1. The City uses conservative budgeting practices to ensure adequate and cost-effective services to current residents. 2. It can be expected that the City will avoid unnecessary costs that may be caused by the annexation of the proposed SOI areas through comprehensive analysis of the costs and benefits of a proposed development in those areas. 3. The City has a thorough and wellestablished budget process that it can continue to improve upon as a way of avoiding unnecessary costs. 4. A program of developer-obligated infrastructure improvements will provide installation of physical services to serve SOI sites and therefore will not become an obligation of the City. The primary financial responsibility for the installation and maintenance of infrastructure to serve the SOI areas would be offset by impact fees and expenses paid by the developer. 5. At present the County provides basic general government, road and public safety services to the proposed SOI areas. If these areas were annexed to the City of San Luis Obispo, the City would assume these services. In effect, there would be no duplication of services between agencies and in fact, the SOI areas may receive increased public works services from the City. 6. Opportunities exist for the City and the County to work out cooperative agreements for the areas proposed to be in the SOI. ADOPTED 3-57 JANUARY 19, 2006

93 3.5 OPPORTUNITIES FOR RATE RESTRUCTURING Purpose: To identify opportunities to positively impact rates without decreasing service levels. A. How does the jurisdiction analyze and establish rates and fees? COST RECOVERY STUDY In 2000, the City also contracted with DMG-Maximus to prepare a Cost Recovery Study to analyze the costs of fee-related services, the reasonableness of these costs, cost recovery levels, fee changes that might be considered, and revenue changes if fees are modified. The following City functions were evaluated regarding cost recovery: C C C Police and Fire Safety Public Utilities: Water and Wastewater Leisure, Cultural, and Social Services: Parks and Recreation and Tree Maintenance C Community Development: Planning, Building and Safety, and Engineering The study found that 20% of the City s total expenditures were offset by user fees with 80% being funded through other revenue sources. The analysis also showed that for services typically supported by fees, the City is spending $5 million while recovering only $2.9 million in related revenue. 43% of user fee activities were subsidized by the other revenue sources, with 57% of the services being funded by the actual fee. The largest subsidies were allocated to tree maintenance (70%-$23K), Development and Review Activities (69%-$704K), and Parks and Recreation (58%-$1.18 Mil). The table below is from the Cost Recovery Study prepared by DMG-Maximus. Since the study the City has taken several actions regarding the costs of services and fees, including increasing fees as appropriate and deciding that the provision of a subsidy for a particular service was called for and needed. ADOPTED 3-58 JANUARY 19, 2006

94 Figure 3-15: Source: Cost Recovery Study, City of San Luis Obispo, DMG Maximus The City is not required to recover all costs associated with services and may chose to subsidize various activities from other discretionary revenue sources. Providing revenues to offset the total cost of a service is a matter of establishing goals and priorities, which the City does on regular basis when preparing the budget. The chart from the DMG Maximus Cost Recovery Study on the next page shows, in general terms, the decision-making process that a City may implement to establish the blend of subsidy and fees that might fund a particular service. The policy established depends on the stakeholder group (public or private) that stands to benefit from a particular service. As a general rule, the more the community benefits as a whole, the more a service is offset by discretionary revenues. The more a private individual benefits from a service, the more user fees are paid for the service. ADOPTED 3-59 JANUARY 19, 2006

95 Figure 3-16: Source: Cost Recovery Study, City of San Luis Obispo, DMG Maximus ADOPTED 3-60 JANUARY 19, 2006

96 The City has a well-developed cost recovery policy that identifies goals and a detailed process for establishing user fees for various services. The Cities water and sewer services are operated as enterprise funds. This means that revenues to support operations and capital improvements are borne by the ratepayer. Water and sewer funds are reviewed annually by the City Council at a public hearing where the Council then determines the appropriate rate for service. If rate increases are needed, they are usually implemented at the beginning of the new fiscal year, July 1st, and all rates are prorated accordingly. The following is a table that compares the rates and fees of several service providers for water and sewer services: Table 3-13: Residential Water Rates Comparison Rate/Fee Nipomo/ Blacklake Templeton Oceano Cambria Morro Bay Pismo Beach Arroyo Grande Grover Beach San Luis Obispo Monthly Service Meter Charge Water (Fee per 100 cubic feet or 1 HCF 1 Cubic Feet =748 gallons) 8.75/ (1-20 HCF)/ 1.42 (>20 hcf) Blacklake.75 (1-20 HCF) 1.15 (>20 HCF) (Inc. 3 HCF 1.15 (4-20 HCF) 1.50 (21-40 HCF) 1.84 (41-80 HCF) 2.30 (>80 HCF) $12.00 (Inc. 10 HCF) 1.65 (11-25 HCF) 2.20 (>25 HCF) 9.25 (Inc. 6 HCF) 4.70 (7-15 HCF) 4.80 (16-20 HCF) 4.90 (21-30 HCF) $16.43 (Inc. 3 HCF) 5.56 (4 HCF) 5.59 (5 HCF) 5.62 (6 HCF) 5.65 (7 HCF) 5.68 (8 HCF) continues to increase based on use $19.00 $ (Lope z Treat ment charg e) $1.16 (0-15 HCF) $1.43 (>16 HCF) $6.75 None $0.90 $ (1-5 HCF) 3.40 (>5 HCF A 5% utility tax is added to the bill) ADOPTED 3-61 JANUARY 19, 2006

97 Jurisdictions that have a limited water supply, such as Morro Bay and Cambria, typically have a graduated rate structure that increases significantly with higher water use. This encourages conservation on the part of the water users and discourages wasteful practices. Templeton CSD has a more graduated rate structure than other CSDs in the County and Cambria CSD has the highest water rates of the Districts. Figure 3-17: Highest Rate for Water $ $ $ $0.00 Nipomo Blacklake Templeton Oceano Cambria Morro Bay Pismo Beach Arroyo Grande Grover Beach San Luis Obispo To compare the various rates and fees, a sample bill using 20 units of water over a two-month period was calculated. In this comparison the City has the third highest water rates of all of the jurisdictions $ $ $75.00 $50.00 $25.00 $0.00 Nipomo Figure 3-18: Sample Bill for 20 Units of Water Blacklake Templeton Oceano Cambria Morro Bay Pismo Beach Arroyo Grande Grover Beach San Luis Obispo ADOPTED 3-62 JANUARY 19, 2006

98 Sewer rates are compared in the table below: Table 3-14: Single-Family Sewer Rates Rate/Fee Nipomo/ Blacklake Templeton Oceano Cambria Morro Bay Pismo Beach Arroyo Grande Grover Beach San Luis Obispo Flat Monthly Rate 18.25/ $13.25 $13.35 $6.50 $ ADOPTED 3-63 JANUARY 19, 2006

99 Figure 3-19: Monthly Bill Comparision - Residential Sewer $ $ $10.00 $0.00 Nipomo Blacklake Templeton Oceano Cambria Morro Bay Pismo Beach Arroyo Grande Grover Beach San Luis Obispo The City s sewer rates are the highest in comparison to other jurisdictions in the above chart. The City s rates are about 20% higher than the rates paid for sewer services in Blacklake, which is served by the Nipomo CSD. B. How will the Sphere of Influence action impact the rates and fees within the jurisdiction? The Sphere of Influence expansion should not adversely impact rates and fees charged by the City. The City s financial policies and procedures strongly advocate that new development will pay its share of rates and fees and that existing residents will not be burdened with increased fees and rates because of new development. C. How will the Sphere of Influence territories pay their share of the jurisdictions costs for services? The City and the County shall work together to ensure that the cost of services for the jurisdictions is equitable. The MOA will be used to further define this relationship. As stated above the City has specific policies that would require the equitable sharing of the services costs for Sphere of Influence areas. WRITTEN DETERMINATIONS 1. Rates and fees for services are established using the City s extensive policy and procedures and other regulations. 2. The City completed a fee study in fiscal year 2000 that identified the cost of services, the subsidy a service received from the City, which resulted in establishing new fees for selected City services. 3. The City has a thorough and complete process for updating user fees and rates that is implemented on an on-going basis. ADOPTED 3-64 JANUARY 19, 2006

100 3.6 OPPORTUNITIES FOR SHARED FACILITIES Purpose: To identify the opportunities for jurisdictions to share facilities and resources creating a more efficient service delivery system. In the case of annexing new lands into a City, LAFCO can evaluate whether services or facilities can be provided in a more efficient manner if the City, County, and State are cooperatively working to construct and maintain facilities. In some cases, it may be possible to establish a cooperative approach to facility planning by encouraging the City, County and State to work cooperatively in such efforts. This issue is further analyzed by evaluating the following questions. A. Has either the City or County suggested shared facilities in the SOI/Annexation areas? The annexation of the proposed SOI areas to San Luis Obispo may lead to shared roadway infrastructure with the County and the State. At present, the distinction between City and County services in the SOI areas is clear. The SOI area includes opportunities to create some shared facilities such as: Roadway connections Coordinated open space preservation Linkages between City and County recreational trails Preservation and enhancement of Agricultural Lands In the case of roadways, the opportunity to coordinate connections between collector and arterial roadways will enhance regional traffic patterns, and will aid in emergency response times. The County has, on occasion, collected impact fees for a City that is affected by a project in the unincorporated areas. This type of coordination can lead to a reduction of impacts and a more positive solution to the problem of development on the City s fringe. Roads that may involve the City, County and State involvement include Highways 101, 1, and 227. Other important City/County roadways would include Los Osos Valley Road, Foothill Blvd, Tank Farm Road, O Connor Way, Buckley Road, and South Higuera. The recreational aspects of trail connections and open space preservation offer opportunities for the City, County and State to join their recreational resources not only for the benefit of the City residents, but for the general public of the County as well. Coordination of open space corridors that cross over the proposed City-County limit lines would enhance the viability of habitat from the area and preserve important habitat for generations to come. ADOPTED 3-65 JANUARY 19, 2006

101 B. Is there any duplication of existing or planned facilities in the SOI area? Currently, there is no duplication of existing or planned facilities in the SOI area. The City would assume those services provided by the County in the SOI areas as they are annexed and developed. These do not constitute (and would not in the future) duplication of services in the SOI areas, rather a transfer of services. The County requires applicants that complete projects in the unincorporated areas to pay the City Impact Fees which help the City offset the infrastructure impacts caused by Countyapproved development. The City works with the County in maintaining both the Whale Rock and Salinas Reservoirs, which are the main water supply for the City. The Whale Rock Commission operates and maintains these facilities and receives payment from the City for providing such services. The City pays a proportional amount based on how much water the City is allocated (55%). The City also pays for 100% of costs to pump the water from Whale Rock to their water treatment facility. The City pays for the total operational and maintenance costs of the Salinas Reservoir and to transport the water to the City s water treatment facility. The City also works cooperatively with the State Corrections Department in providing water from the Whale Rock Reservoir to the California Men s Colony. These relationships are cooperative and help each agency provide public services in a more efficient manner. WRITTEN DETERMINATIONS 1. The annexation of the proposed SOI areas to the City may lead to shared infrastructure/facilities with the State and County if cooperative agreements can be worked out. The potential to create shared relationships for providing some services is suggested and may be appropriate when providing certain services. 2. At present, the distinction between City and County services in the SOI areas is clear. City public works services in the SOI areas would assume those services provided by the County as they are annexed and developed. These are not now, and would not be in the future, duplication of services in the SOI areas. ADOPTED 3-66 JANUARY 19, 2006

102 3.7 GOVERNMENT STRUCTURE OPTIONS Purpose: To consider the advantages and disadvantages of various government structures that could provide public services. One of the elements of LAFCO s responsibilities is setting logical service boundaries for communities based on their capability to provide services to affected lands. A city s capability to serve a particular area could be enhanced by using other government structures. A. What are the relative pros and cons of City versus County services to lands within the SOI? The inclusion of the Study Areas within the SOI will not have a significant effect on the governmental structure of the City. A full range of services as described earlier will be available to the existing citizens and to those of the SOI area if annexation occurs. The area will likely receive increased levels of public works services (water and sewer) from inclusion within the SOI and eventual annexation. To this degree, the City can better serve development in the SOI areas. It is possible that development within the SOI areas, if it occurs under County control, would not fully resolve impacts to the City because of new residents using City roads to access their projects, and other City services. It can also be assumed that the reverse may occur, although likely to a lesser degree: that development controlled only by the City may leave impacts in the County unresolved in whole or in part. The challenge of this planning effort is to coordinate shared infrastructure and improvements to mitigate problems on either side of the City/County limit line. Because development of the SOI territories relies on infrastructure available from the City, it is logical that the City assumes the lead in planning for these sites, consistent with the General Plan. B. Will opportunities for public participation in the development review process be enhanced in the City or the County for the SOI areas? It is assumed that public participation in the planning and development process for the SOI territories would be about the same for either City or County development projects. Both the City and the County have well developed Citizen Participation programs that enable access to information and allow for Citizen involvement. The City has a track record of extensive outreach to the community in making land use and other decisions. ADOPTED 3-67 JANUARY 19, 2006

103 C. Can City limits be established that maximize open space and agricultural preservation on prime agricultural lands? The City s General Plan Policies regarding agricultural land and open space, in particular, the greenbelt and open space requirements emphasize the protection of these resources. The General Plan provides for high quality, orderly and sensible growth, and adequate and efficient public services for logical and appropriate municipal expansion into SOI areas while preserving AG and Open Space lands consistent with land use policies. The City s Greenbelt policy calls for preservation of large areas of Open Space around the City limits. The map below shows the Greenbelt area that is envisioned in the City s General Plan. Figure 3-20: SLO City Limits/SOI ADOPTED 3-68 JANUARY 19, 2006

104 C. Will services to the SOI areas be enhanced by SOI and Annexation to the City? An overall plan for development that is coordinated and jointly implemented in cooperation with the County holds the potential to improve the quality of life of both City and County residents by improving public safety response time to the areas, enhancing storm drainage and flood control management, improving regional circulation and developing recreational and historical improvements in the area. The City could bring coordinated plans for infrastructure forward to LAFCO at the time of presenting specific annexation requests. This would provide a check and balance system for incorporating new lands within the City, and would render the remaining County lands a part of an integrated whole, rather than being left to fend for themselves. For its part, the County can plan for a City/County transition zone that terminates at the ultimate growth boundary of the City. WRITTEN DETERMINATIONS 1. Because development of the SOI territories relies on infrastructure available from the City, it is logical that the City assumes the lead in planning for these sites, consistent with the General Plan. 2. It is reasonable to conclude that public services can be provided by the City of San Luis Obispo and that those services will meet or exceed present levels of service available in the County. Prior to annexation the City provides LAFCO with a Plan for Services. This Plan indicates how the City will provide services to areas to be annexed. 3. The SOI areas will receive increased public works services (water and sewer) from subsequent annexation. An overall plan for development that is coordinated and jointly implemented in cooperation with the County holds the potential to improve the quality of life for both City and County residents by improving public safety response time to the areas, enhancing storm drainage and flood control management, improving regional circulation and developing recreational and historical improvements in the area. 4. Public participation in the development review process may be improved if the City and County adopt a cooperative effort. This cooperation could result in heightened public involvement at both the City and County levels. The Memorandum of Agreement provides for such an effort. ADOPTED 3-69 JANUARY 19, 2006

105 3.8 MANAGEMENT EFFICIENCIES & BUDGET Purpose: To evaluate the quality of public services and the agency s ability to provide services. A. Does the jurisdiction have the administrative capabilities to serve the sphere of influence area? The City completes a comprehensive strategic plan and budgeting process on a two-year cycle that encourages full participation by the public, advisory bodies, Department Staff and Management. Supplemental budget updates are provided. The following is a summary of one such document: The supplement reflects the City s continued use of a two-year financial plan that emphasizes long-range planning and effective program management. The benefits identified when the City s first two-year plan was prepared for continue to be realized. Report sections include: A. Introduction Includes the Budget Message from the City Administrative Officer highlighting key issues considered in preparing the Financial Plan Supplement. B. Policies and Objectives Highlights any changes to the Financial Plan policies and objectives; and provides a status summary of Major City Goals. C. Budget Graphics and Summaries Provides simple tables and graphs which highlight key financial relationships and summarize the overall budget document. D. Operating Programs Presents the operating budget at the function, operational, and program levels, and summarizes changes from the Financial Plan. E. Capital Improvement Plan Summarizes the City s debt obligations at the beginning of the fiscal year. F. Debt Service Requirements Summarizes the City s debt obligations at the beginning of the fiscal year. G. Changes in Fund Balance Provides an individual summary of revenues, expenditures and changes in the financial position for each of the City s operating funds. H. Financial and Statistical Tables Summarizes revenues by major category and sources; expenditures by type and function; and authorized regular employees by department. I. Budget Reference Materials Lists a number of major policy documents that guide the preparation and execution of the City s financial plan. The City s organizational structure is shown in the chart found on the next page. It should be noted that the City has a number of advisory bodies that provide the council with a variety of recommendations on a range of topics. These bodies consist of citizens and are staffed by the relevant department: Administrative Hearing Officer Architectural Review Commission ADOPTED 3-70 JANUARY 19, 2006

106 Bicycle Advisory Committee Cultural Heritage Committee Housing Authority Human Relations Commission Mass Transportation Committee Parks and Recreation Commission Personnel Board Planning Commission Promotional Coordinating Committee Tree Committee Technical and Special Purpose Advisory Bodies Overall the City is well organized and equipped administratively and otherwise to serve any additional areas that are in the Sphere of Influence. Figure 3-21: City of SLO Organizational Chart ADOPTED 3-71 JANUARY 19, 2006

107 B. Does the jurisdiction have a customer-oriented philosophy, including written goals and mission statements, master services plans, customer outreach programs, and an active quality control program? The City is in constant communication with its customers through advisory bodies, public hearings, surveys, and technical working groups. The following is a summary of some of the documentation provided by the City to the Council regarding a variety of service and financial topics: July 1, Financial Plan Overview: There is a balanced budget. The Financial Plan presents a balanced budget over the next two years for all of the City s funds. Adequate resources are available to fund basic services and adequately maintain existing facilities, infrastructure and equipment. Operating revenues fully cover operating expenditures, and fund balances are maintained at policy levels. Perspective and Framework: The City is facing its toughest fiscal outlook in over ten years, since the recession and State budget grabs at the same time. The revised five-year forecast presented to the Council in April 2003 projected an annual budget gap of about $7.0 million in Report Summary: The Financial Plan- 1. Closes a $7 million General Fund budget gap in a responsible, balanced way. 2. Preserves basic services and adequately maintains what we already have. 3. Meaningfully invited community involvement, and responds to what was heard. 4. Responds to Council goal setting. 5. Is fiscally prudent. 6. Was accomplished with employee involvement and no regular staff layoffs. 7. Recognizes the uncertainties ahead. October 6, 2003 City of SLO Quarterly Financial Report, 4 th quarter of Assesses the General Fund s financial position at the end of Key revenues are down. There are continuing state budget problems. Discusses the top ten revenues, transient occupancy tax, vehicle in-lieu fees (VLF), development review fees, interest earnings, expenditures. May 29, 2003 City of SLO Agenda Report-Laguna Lake Golf Course Fund Rate Review Discusses fees. The objective was to establish a fee schedule that maximizes revenue and accomplishes: ensuring continued operation, creating more community visits to the course, generating sufficient revenue to cover expenses. May 29, 2003 City of SLO Agenda Report-Parking Fund Review Conclusions: (1) Current parking rates + scheduled future increases + accumulated working capital balances will cover all planned operating expenses, capital outlays, and debt service obligations from through (2) After allowing for all reserve requirements, in there will be about $2.5 million available in unappropriated working capital. (3) Beginning in , there will be about $500,000 of operating income available each year. Through debt financing, this level of income could pay for about $8 million in capital outlays. ADOPTED 3-72 JANUARY 19, 2006

108 May 29, 2003 City of SLO Agenda Report-Transit Fund Review for Conclusion: Public Works has concluded that current transit fares, anticipated FTA and TDA grant apportionments, and discretionary capital grants will cover all planned operating expenses and capital outlays from through , including replacement of three buses. Nonetheless, there is one problem that must be addressed. TDA regulations state that money collected from fares must cover at least 20% of operating costs. Projections show that, under current rates, fares will amount to only 17.4% of operating costs in , and this ratio will not rise above 18.3% in future years. Options and recommendations for resolving this problem will be presented to the Council when the Short Range Plan is considered in July or August May 29, 2003 City of SLO Agenda Report-2003 Sewer Fund Review The 2003 analysis shows that with regular, relatively small rate increases, the sewer fund will maintain its health and be able to pay for the complex services and activities that provide high quality wastewater services to the community. Rate increases have been minimized by two factors: development impact fees have met or exceeded projections and budget directions. Wastewater staff have reduced operating costs by at least 5% from last year, eliminated an operator position at the Water Reclamation Facility, and absorbed the administration of the Phase II storm water program from the General Fund. May 29, 2003 City of SLO Agenda Report-2003 Water Fund Review Summary: During times of economic challenges, the City water operations continue to provide high quality water to the community at rates that have not changed in the last five years. Current water rates are slightly less than the rates in early 1994, as rates were actually reduced by 10% in 1999 and have not been increased since that time. This is significant since the City s first new water supply in 40 years, recycled water, will be coming on line in January 21, 2003 Results of Community Budget Bulletin Survey-Top 15 Themes: Theme Resp Theme Resp Student housing impacts in 155 Affordable housing 152 neighborhoods/build more housing on campus Reduce/mitigate traffic 116 Preserve open space 97 Maintain/repair streets 92 Limit/control/stop growth 91 Develop long-term water supply 89 Develop more bikeways 76 Big Box discount shopping ops Encourage them: 61 Discourage them: 44 Widen streets/improve intersects 52 Improve rec opportunities for youth 50 Protect/enhance downtown 50 Improve bus system/alternative 46 trans Maintain/improve public safety 36 Beautify community 32 ADOPTED 3-73 JANUARY 19, 2006

109 October 1, 2002 City of SLO Agenda Report-Fiscal Impact Analysis of New Development Summary: Fiscal impact analysis is typically more meaningful at the General Plan level. As such, since the fiscal impact analysis performed when the General Plan was prepared found it fiscally balanced, it was recommended to focus project-byproject reviews on consistency with the General Plan. In those cases where it is consistent with the General Plan, the analysis will simply state this and conclude that it is fiscally neutral. In those cases where a change is proposed in the General Plan, an assessment of the fiscal impact will be provided, but it is likely to be a qualitative rather than an empirical one. There will be special circumstances when a more detailed analysis will be warranted; however, these are likely to be rare and center on unique public-private partnerships or specific General Plan requirements. March 12, 2002 Water Development Impact Fees- Prepared by the City of SLO Department of Finance The reports sets forth an approach for funding water system improvements consistent with the City s policy that new development should pay its fair share of the cost of building the facilities necessary to serve it. In the analysis, impact fees are the recommended method for achieving this financial goal. The report was prepared to present the City s monetary results of operations and financial condition as of June 30, 2002, as well as to provide statistical information of general interest about the SLO community. The report states that the City s fiscal condition at the end of met or exceeded projections in virtually all areas of operation. The year-end figures indicate that the City s key revenues generally performed on target or better. February 25, 2002 City of SLO Utilities Department Water & Wastewater AB 1600 Fee Study Update The Fee Study Update is intended to meet the nexus or benefit requirements of AB 1600 (California Government Code 66000, et seq.) which mandates that there be a nexus between fees imposed, the use of the fees, and the development projects on which the fees are imposed. The City adopted an initial Water and Wastewater Impact Fee Program in 1991 to ensure that future development would pay their fair share of the cost of expanding the City s water and wastewater systems. The Study is intended to update the existing Water and Waste Water Impact Fee Schedules by adding fees for additional citywide facilities to the facilities that provide local benefits to the six Annexation Areas. Discussion of three types of water system improvements: supply, treatment and distribution. There was lots of discussion on new and existing development s share of costs, funding strategies, water supply requirements. June 30, 2002 Comprehensive Annual Financial Report ADOPTED 3-74 JANUARY 19, 2006

110 November 21, 2000 City of SLO Agenda Report-Cost of Services and User Fee Update Report-in-Brief: Based on adopted user fee policies and a comprehensive review of service costs it was recommended to update over 300 service fees. The fees covered in this study are for operating services such as recreation programs and development review services. They do not include development impact fees that cover the cost of new facilities and infrastructure required to serve new development. These are also under review at this time, but as part of other work efforts: City-wide water and sewer impact fees are being reviewed as part of the airport area specific plan; and transportation impact fees are also under review at this time, and the City s has planed to bring the update to the Council in Spring May 1, 2000 Results of San Luis Obispo Citizen Survey From March 28 to 30, 2000, Fairbank, Maullin & Associates conducted a telephone survey among 400 registered voters in the City of SLO likely to vote in the November 2000 general election. The results of the poll indicated that San Luis Obispo voters were extremely happy with the quality of life in the city, and were generally satisfied with the City services they received. A twothirds majority of the electorate also currently supported a quality of life ballot measure that may have been placed before voters in November. February 22, 1994 San Luis Obispo Airport Area Fiscal Impact Analysis-City Council Workshop Edition Summary: The planning area referred to as the San Luis Obispo Airport Area is the area between the existing southern city limit of the City of San Luis Obispo and the San Luis Obispo county Airport. Efforts to plan for urban development of this area have been going on for many years. On April 25, 1993, the SLO LAFCO considered a request by the property owners in County Service Area 22 for an expansion of the CSA s powers to allow the CSA to provide urban level water services to a majority of the Airport Area. LAFCO deferred a decision for two months in order to all time for City and CSA property owners to meet and clarify the City s intentions regarding eventual annexation to the City and provision of City services to the area. At the June 17 LAFCO meeting, the City stated its intent to annex the Airport Area. LAFCO then deferred a decision on the CSA s request for an expansion of powers until March of 1994 to allow the City and the Airport Area property owners to make substantial progress toward annexation. Since then, the City has taken several steps toward annexing the Airport Area. This report presents conclusions about one factor that the City will consider when deciding whether or not to annex. The report examines whether taxes and other revenues generated in the Airport Area after annexation would be sufficient to support the expenditures that the City would incur to provide public services on an annual basis. There is a comfortable fiscal surplus under both the Status quo after annexation assumption and, in the longer term, as growth and development take place. The consultant team asserts that the results are reliable and that there can be a high level of confidence that the decision to annex the Airport Area will not place a burden on the existing City base. City of SLO-Budget and Fiscal Policies There was discussion of the following policies: financial plan purpose and organization, financial reporting and budget administration, general revenue management, user fee recovery goals, expense fund fees and rates, revenue distribution, investments, appropriations limitations, fund balance and reserves, capital improvement management, capital financing and debt management, ADOPTED 3-75 JANUARY 19, 2006

111 human resource management productivity, contracting for services Public Facilities Financing The report (Public Facilities Financing Plan PFFP ) was prepared to evaluate the ability of land uses proposed in the City of SLO Airport Area Specific Plan to fund required public facilities. This report describes the approach and major findings for the PFFP. Additionally, because development in the Margarita Area Specific Plan is expected to occur concurrently with that in the Airport Area, the PFFP also incorporates the land uses and infrastructure facilities needs for the Margarita Area. The Airport and Margarita areas are planned to accommodate a segment of ling-term residential, commercial and industrial growth in the City. Likewise, the PFFP is a long-term look at burdens that will be associated with providing infrastructure as the Airport and Margarita areas are developed. The report does the following: Describes the proposed land uses and Airport & Margarita area phasing Assumptions Summarizes the public facilities required to serve the Airport & Margarita areas Summarizes the costs of required public facilities & allocates the costs to the proposed land uses based on a benefit rationale Outlines the phasing of public facilities needed to keep pace with projected Development Considers a combination of impact fees, debt financing and developer contributions to fund public facilities as they are needed Identifies the total one-time burdens (impact fees) and potential annual burdens (annual special taxes) proposed to be assessed to fund the improvements Discusses future steps associated with implementation and administration of the financing plan. WRITTEN DETERMINATIONS 1. The City is well-organized, and is administratively capable of managing any annexations from the Sphere of Influence. 2. The City conducts a number of studies to evaluate the services provided to residents and services that may need to be upgraded or started. 3. The City has not been subject to extraordinary levels of litigation or regulatory actions. 4. Long-term effects of individual annexations and development will be analyzed when site-specific annexations are presented. ADOPTED 3-76 JANUARY 19, 2006

112 3.9 LOCAL ACCOUNTABILITY - GOVERNANCE Purpose: To evaluate the accessibility and levels of public participation associated with the agency s decision-making and management processes. The governing body of the City of San Luis Obispo is the City Council that is elected in compliance with California Election Laws. The City complies with the Brown Act Open-Meeting Law and provides the public with ample opportunities to obtain information about City issues, including website and phone access. The City s website contains a wealth of information about all of the City s Departments and services. The City Council holds regular meetings at 7:00 p.m. on the first and third Tuesdays of each month in the Council Chamber of City Hall, 990 Palm Street. Other meetings or study sessions are held as needed. A public comment period is scheduled at the beginning of each meeting for citizens to comment on City issues not on the agenda. All Council meetings are televised live and videotaped for later playback. Meetings can be seen on Charter Communication Channel 20. The City conducts Citizen Surveys on a regular basis to get feedback about how well the City is serving its residents. In 2000, the City completed a telephone survey of registered voters regarding a number of issues. Of the people surveyed (400 voters with a margin for error of 4.9%), 96% of those surveyed rated the quality of life in the City as excellent. 72% found the City s services excellent or good. 23% indicated the services as fair with 2% rating services as poor and 2% did not know. The Action for Healthy Communities prepares a comprehensive report that evaluates a variety of community indicators related to Basic Needs, Economics, Education, Health, Natural Environment, Public Safety, and Social Environment. A survey with regard to different methods the City uses to provide information (i.e. website, mailing lists, agendas, etc.) to its residents was completed. The City of San Luis Obispo ranked first out of the seven cities in the county, obtaining a score of 21 out of a maximum of 30 possible points. ADOPTED 3-77 JANUARY 19, 2006

113 A survey with regard to customer service is also prepared by the Action for Healthy Communities. This survey contacted each city three times and requested basic information from their utility (water and sewer) departments. The responses were rated in accordance with 20 criteria. A city could achieve a maximum score of 29 points. In 2001, the City of San Luis Obispo achieved a tie for second of all the cities in the county with 22 points. WRITTEN DETERMINATIONS information and/or interviews as requested. Locally elected and appointed officials pride themselves on being available to their constituencies. 4. The City conducts budget reviews and goal-setting workshops that are designed to keep the public informed as to budgetary situations. It is possible for the public to participate in the budget hearing process. Annual audits are completed and made available to the public upon request. 1. The City has historically made extensive efforts to maintain a public dialogue in the community. The City s outreach program includes providing information regarding current issues of significance to the community through a variety of media. In particular, the City has conducted workshops and public town hall meetings to address matters for the broadest public input possible. The City conducts goalsetting meetings to establish community priorities. 2. As needed, the City conducts Citizen Surveys to gather information and feedback about the services provided by the City. 3. The City has maintained relationships with local news media, providing ADOPTED 3-78 JANUARY 19, 2006

114 REFERENCES Draft Sphere of Influence Update-Municipal Service Review, LAFCO (September 2005) San Luis Obispo County Area Plan-Final Environmental Impact Report San Luis Obispo County Regional Transportation Plan-Final Environmental Impact Report, Rincon Consultants, Inc. Dalidio/San Luis Marketplace Annexation and Development Project Environmental Impact Report (April 2004) San Luis Obispo County General Plan Land Use Element and Circulation Element, San Luis Obispo County Department of Planning and Building Airport Area Specific Plan and EIR, City of San Luis Obispo (August 2005) County of San Luis Obispo General Plan City of San Luis Obispo Capital Improvements Plan City of San Luis Obispo General Plan City of San Luis Obispo General Land Use Plan Element (July 2002) City of San Luis Obispo General Plan Housing Element (May 2004) City of San Luis Obispo Financial Plan, Approved Budget City of San Luis Obispo Capital Improvement Plan , Financial Plan City of San Luis Obispo Comprehensive Annual Financial Report, 06/30/02 City of San Luis Obispo Financial Plan Supplement, Approved Budget City of San Luis Obispo 2003 Annual Report on the General Plan City of San Luis Obispo Financial Plan, Approved Budget City of San Luis Obispo Cost Recovery Study Findings (November 2000) City of San Luis Obispo, Grand Jury Briefing (August 2002) City of San Luis Obispo Fiscal Impact Analysis (1994 Report Update) Clean Air Plan, San Luis Obispo, APCD Utilities Department 2003 Water Quality Report City of San Luis Obispo Water & Wastewater Management Element City of San Luis Obispo General Plan Water & Wastewater Management Element (June 2004) City of San Luis Obispo Urban Water Management Plan (November 1994) Draft Sphere of Influence Update & Municipal Service Review, and Clean Air Plan 2004 Regional Profile, San Luis Obispo Council of Governments (September 2004) McBride Commercial Development Plan and Mitigated Negative Declaration, City of San Luis Obispo (August 2005) 1

115 REFERENCES, CONTINUED Morabito-Burke Development Plan and Environmental Determination, County of San Luis Obispo Dioptics Development Plan and Environmental Determination, County of San Luis Obispo Congregation Beth-David Development Plan and Environmental Determination, County of San Luis Obispo Mountain Brook (Vineyard) Development Plan and Environmental Determination, County of San Luis Obispo Memorandum of Agreement, Adopted by the City of San Luis Obispo on August 23, 2005, to be considered by the Board of Supervisors on October 18,

116 SOILS Soil Unit Soil Name AG IRR CLA AG NONIRR Calc Acre #1 County Request 164 Los Osos-Diablo Complex NA IV Los Osos-Diablo Complex NA VI Obispo Rock Outcrop Complex NA VII #2 Flora-Alrita 164 Los Osos-Diablo Complex NA IV Los Osos-Diablo Complex NA VI Obispo Rock Outcrop Complex NA VII #3 Harmony Area 163 Los Osos-Diablo Complex III III Los Osos-Diablo Complex NA IV Los Osos-Diablo Complex NA VI Los Osos Loam NA VI #4 Wickstrom Area 127 Cropley Clay II III Los Osos-Diablo Complex III III Los Osos-Diablo Complex III III Los Osos-Diablo Complex III III Los Osos Loam NA IV #5 Righetti Hill 128 Cropley Clay II III Cropley Clay II III Los Osos Loam III III Los Osos Loam III III Los Osos Loam NA VI Rock Outcrop-Lithic Haploxerolls Complex NA VIII #6 Broad Commercial Area 197 Salinas Silty Clay Loam I III Salinas Silty Clay Loam I III Cropley Clay II III Cropley Clay II III Diablo Clay II III Los Osos-Diablo Complex III III Tierra Sandy Loam III III Concepcion Loam III III

117 Soil Unit Soil Name AG IRR CLA AG NONIRR Calc Acre #7 Avila Ranch 170 Marimel Silty Clay Loam, Drained I III Salinas Silty Clay Loam I III Cropley Clay II III Cropley Clay II III Diablo Clay II III Concepcion Loam III III Concepcion Loam III III Marimel Sandy Clay Loam, 169 Occasionally Flooded III III Tierra Sandy Loam III III Xererts-Xerolls-Urban Complex NA NA #8 LOVR/ Salinas Silty Clay Loam I III Cropley Clay II III Diablo & Cibo Clays III III Diablo & Cibo Clays III III Los Osos- Diablo Complex III III Los Osos- Diablo Complex NA IV Diablo & Cibo Clays NA IV Los Osos-Diablo Complex NA IV Los Osos-Diablo Complex NA IV Xererts-Xerolls-Urban NA NA Complex 165 Los Osos-Diablo Complex NA VI Diablo & Cibo Clays NA VI Obispo Rock Outcrop NA VIII Complex 194 Riverwash NA VIII #9 Cerro San Luis Cropley Clay II III Cropley Clay II III Cropley Clay II III Diablo Clay II III Cropley Clay II III Los Osos-Diablo Complex III III Concepcion Loam III III Concepcion Loam III III

118 Soil Unit Soil Name AG IRR CLA AG NONIRR Calc Acre #9 Cerro San Luis, cont d Los Osos-Diablo Complex III III Los Osos-Diablo Complex III III Los Osos-Diablo Complex III III Concepcion Loam III III Los Osos-Diablo Complex III III Los Osos-Diablo Complex III III Diablo & Cibo Clays NA IV Lodo Clay Loam NA IV Los Osos Laom NA IV Los Osos-Diablo Complex NA IV Los Osos-Diablo Complex NA IV Gazos-Lodo Clay Loams NA VI Los Osos-Diablo Complex NA VI Obispo-Rock Outcrop Complex NA VII Obispo-Rock Outcrop Complex NA VII Obispo-Rock Outcrop Complex NA VII Obispo-Rock Outcrop Complex NA VII Lodo-Rock Outcrop Complex NA VII Waterbody

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