HomeMy WebLinkAboutCC_2025_10_14_AgendaPacket
MEETING INFORMATION:
The City Council meeting will be held in the City Council Chambers and in-person attendance will be available
at that location.
HOW TO OBSERVE THE MEETING REMOTELY:
To observe remotely, residents can livestream the meeting on Zoom, SLO-SPAN.org, and listen live on KPRL Radio
1230AM and 99.3FM. The video recording of the meeting will be available through the City’s website and on the City’s
YouTube Channel. To observe remotely using the Zoom platform please visit:
https://us02web.zoom.us/webinar/register/WN_ZwJ7a031S3KXauEym9ehaA
HOW TO SUBMIT PUBLIC COMMENT:
Public comment may be provided in-person.
Written public comments are accepted at cityclerk@atascadero.org. Comments should identify the Agenda Item
Number in the subject line of the email. Such comments will be forwarded to the City Council and made a part of the
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comments not later than 12:00 p.m. the day of the meeting. All correspondence will be distributed to the City Council,
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to disclosure pursuant to the California Public Records Act and Brown Act unless exempt from disclosure under applicable
law. Communications will not be edited for redactions and will be printed/posted as submitted.
AMERICANS WITH DISABILITIES ACT ACCOMMODATIONS:
Any member of the public who needs accommodations should contact the City Clerk’s Office at
cityclerk@atascadero.org or by calling 805-470-3400 at least 48 hours prior to the meeting or time when
services are needed. The City will use their best efforts to provide reasonable accommodations to afford as
much accessibility as possible while also maintaining public safety in accordance with the City procedure for
resolving reasonable accommodation requests.
DISCLOSURE OF CAMPAIGN CONTRIBUTIONS:
California Government Code section 84308 (“Levine Act”) requires a party to or participant in a proceeding
involving a license, permit, or other entitlement, including all contracts other than competitively bid, labor, or
personal employment contracts, to disclose any contribution of more than $500 that the party or participant (or
their agent) has made to a member of the City Council within the prior 12 months. The City Council Member(s)
who receive such a contribution are disqualified and not able to participate in the proceedings and are also
required to disclose that fact for the official record of the subject proceedings. Disclosures must include the
amount of the campaign contribution and identify the recipient City Council Member and may be made either
in writing to the City Clerk before the agenda item or by verbal disclosure during consideration. The Levine Act
also prohibits, during the proceeding and for 12 months following a final decision, a party to or participant in
(or their agent) a proceeding involving a license, permit, or other entitlement, including all contracts other than
competitively bid, labor, or personal employment contracts, from making a contribution of more than $500 to
any member of the City Council or anyone running for City Council.
City Council agendas and minutes may be viewed on the City's website:
www.atascadero.org/agendas
Copies of the staff reports or other documentation relating to each item of business referred to on the Agenda
are on file in the office of the City Clerk and are available for public inspection on our website,
www.atascadero.org. Contracts, Resolutions and Ordinances will be allocated a number once they are
approved by the City Council. The Minutes of this meeting will reflect these numbers. All documents submitted
by the public during Council meetings that are made a part of the record or referred to in their statement will
be noted in the Minutes and available for review by contacting the City Clerk's office. All documents will be
available for public inspection by appointment during City Hall business hours.
CITY OF ATASCADERO CITY COUNCIL AMENDED AGENDA
CITY OF ATASCADERO
REGULAR CITY COUNCIL MEETING
AGENDA
Tuesday, October 14, 2025, 6:00 p.m.
City Hall Council Chambers, Fourth Floor
6500 Palma Avenue, Atascadero, California
Pages
A.REGULAR SESSION - CALL TO ORDER
B.PLEDGE OF ALLEGIANCE
Council Member Funk
C.ROLL CALL
Mayor Bourbeau
Mayor Pro Tem Dariz
Council Member Funk
Council Member Newsom
Council Member Peek
D.CONSENT CALENDAR
(All items on the consent calendar are considered routine and non-controversial
by City staff and will be acted upon by a single action of the City Council unless
otherwise requested by an individual Council Member for separate
consideration. Public comment on Consent Calendar items will be invited prior
to action on the Calendar.)
1.City Council/Atascadero Financing Authority Draft Minutes - September
23, 2025 Regular Meeting
5
Recommendation: Council approve the September 23, 2025, City
Council/Atascadero Financing Authority Draft Regular Meeting Minutes.
[City Clerk]
2.June 2025 Investment Report 12
Fiscal Impact: None
Recommendation: Council receive and file the City Treasurer's report for
quarter ending June 30, 2025 [Administrative Services]
3.Declaration of Intent and Setting a Public Hearing to Vacate a Portion of
Public Right-of-Way at 11285 San Marcos Rd.
28
Fiscal Impact: None
Recommendation: Council adopt Draft Resolution declaring its intention
to order the vacation of a portion of San Marcos Road right-of-way and
setting a public hearing on the proposed street vacation at the regularly
scheduled City Council meeting on November 12, 2025. [Public Works]
4.Wastewater Inflow & Infiltration Study Award 35
Fiscal Impact: Awarding the contract amendment for the I&I Study will
result in the expenditures of $239,700 in budgeted wastewater enterprise
funds. This project is included in the adopted FY 2025-2027 budget and
includes $250,000 in wastewater funds. There are several tasks that may
not be necessary depending upon the outcome of the original data
collected, with any unused funds remaining in the wastewater enterprise
fund.
Recommendation: Council:
1. Approve a sole-source procurement of professional services for the
Wastewater Inflow and Infiltration Study due to extenuating
circumstances.
2. Approve a contract amendment with Carollo for $239,700 for the
Wastewater Inflow and Infiltration Study. [Public Works]
E.UPDATES FROM THE CITY MANAGER
(The City Manager will give an oral report on any current issues of concern to
the City Council.)
F.COMMUNITY FORUM
(This portion of the meeting is reserved for persons wanting to address the
Council on any matter not on this agenda and over which the Council has
jurisdiction. Speakers are limited to three minutes. Please state your name for
the record before making your presentation. Comments made during
Community Forum will not be a subject of discussion. A maximum of 30 minutes
will be allowed for Community Forum, unless changed by the Council. Any
members of the public who have questions or need information may contact the
City Clerk’s Office, between the hours of 8:30 a.m. and 5:00 p.m. at (805) 470-
3400, or cityclerk@atascadero.org.)
G.PUBLIC HEARINGS
1.Adopting Wastewater Capacity Charges 38
Fiscal Impact: The Wastewater Rate Study assumes 35 new EDU
connections annually, which equates to an increase of roughly $310,000
in additional capacity charges collected each year if the proposed sewer
capacity rates are implemented. This additional revenue is restricted and
can only be used for upgrades and expansion of wastewater facilities.
Recommendation: Council adopt Draft Resolution setting Sewer Capacity
Charges for the Wastewater Division. [Public Works]
H.MANAGEMENT REPORTS
1.Cannabis Land Use Update Discussion 45
Fiscal Impact: It is expected that the sales tax revenue from the addition
of one or more retail cannabis stores in Atascadero could potentially
reach $500,000 in annual tax revenue. However, some additional costs
would be incurred due to increased staff time, monitoring of security
provisions and other details that have not yet been fully explored.
Recommendation: Council receive an overview of the Cannabis Zoning
Code, an update on the retail industry, and provide staff direction on
consideration of adding a retail land use to the list of conditionally
allowed uses in Atascadero. [Community Development]
2.Authorization of Inclusionary Housing Funds for Del Rio Ridge 112
Fiscal Impact: PSHH is requesting an allocation of $527,573 from In Lieu
Low/Moderate Income Housing Funds in the form of a soft loan. The soft
Page 2 of 116
loan requested would be for a term of 22 years and at simple interest rate
of 3%. Allocation of these funds for the Del Rio Ridge project will leave a
remaining fund balance sufficient to cover on-going costs associated with
the administration of the City’s affordable housing program.
Recommendation: Council:
1. Authorize the Director of Administrative Services to appropriate
$527,573 of In Lieu Low/Moderate Income Housing Funds for the
Peoples’ Self-Help Housing Del Rio Ridge Affordable Housing Project
Loan.
2. Direct staff to bring back a loan agreement for Council approval at a
future date. [Community Development]
I.COUNCIL ANNOUNCEMENTS AND COMMITTEE REPORTS
(On their own initiative, Council Members may make a brief announcement or a
brief report on their own activities. The following represent standing committees.
Informative status reports will be given, as felt necessary):
Mayor Bourbeau
1. City Selection Committee
2. County Mayor’s Round Table
3. Integrated Waste Management Authority (IWMA)
4. Central Coast Community Energy (3CE)
Mayor Pro Tem Dariz
1. Air Pollution Control District
2. California Joint Powers Insurance Authority (CJPIA) Board
3. Community Action Partnership of San Luis Obispo (CAPSLO)
4. Visit SLO CAL Advisory Committee
Council Member Funk
1. Atascadero Basin Ground Water Sustainability Agency (GSA)
2. Design Review Committee
3. Homeless Services Oversight Council
4. REACH SLO Advisory Commission
Council Member Newsom
1. City of Atascadero Finance Committee
2. City / Schools Committee
3. League of California Cities – Council Liaison
4. SLO Council of Governments (SLOCOG)
5. SLO Regional Transit Authority (RTA)
Council Member Peek
1. City of Atascadero Finance Committee
2. City/Schools Committee
3. Design Review Committee
4. SLO County Water Resources Advisory Committee (WRAC)
J.INDIVIDUAL DETERMINATION AND / OR ACTION:
(Council Members may ask a question for clarification, make a referral to staff or
take action to have staff place a matter of business on a future agenda. The
Council may take action on items listed on the Agenda.)
1. City Council
Page 3 of 116
2. City Clerk
3. City Treasurer
4. City Attorney
5. City Manager
K.ADJOURNMENT
Page 4 of 116
10/14/25 | Item D1
Atascadero City Council
September 23, 2025
Page 1 of 7
CITY OF ATASCADERO
CITY COUNCIL/
ATASCADERO FINANCING AUTHORITY
DRAFT MINUTES
September 23, 2025, 5:00 p.m.
September 23, 2025, 6:00 p.m.
City Hall Council Chambers, Fourth Floor
6500 Palma Avenue, Atascadero, California
_____________________________________________________________________
A. CLOSED SESSION (5:00 p.m.)
1. ROLL CALL
Present: Council Members/Directors Funk, Newsom, Peek, Mayor Pro
Tem/Vice Chair Dariz, and Mayor/Chair Bourbeau
Absent: None
Staff Present: City Manager James R. Lewis, Assistant City Manager/City Clerk
Lara Christensen, City Attorney Dave Fleishman, Deputy City
Manager IT Luke Knight
2. CLOSED SESSION - PUBLIC COMMENT
Mayor Bourbeau opened the Public Comment period.
The following persons spoke on this item: None
Mayor Bourbeau closed the Public Comment period.
3. COUNCIL LEAVES CHAMBERS TO BEGIN CLOSED SESSION
(Deputy City Manager IT Luke Knight did not attend Closed Session)
4. CLOSED SESSION - CALL TO ORDER
Page 5 of 116
10/14/25 | Item D1
Atascadero City Council
September 23, 2025
Page 2 of 7
a. Public Employee Performance Evaluation
Government Code Sec. 54957
Title: City Attorney
5. CLOSED SESSION - ADJOURNMENT - 5:54 p.m.
6. CLOSED SESSION REPORT
City Attorney Fleishman reported that there was no reportable action from
Closed Session.
B. REGULAR SESSION - CALL TO ORDER
Mayor Bourbeau reconvened the meeting at 6:00 p.m. with all Council Members
present
C. PLEDGE OF ALLEGIANCE & ROLL CALL
Mayor Bourbeau noted that roll call was conducted prior to Closed Session.
Mayor Pro Tem/Vice Chair Dariz led the Pledge of Allegiance.
Members Present: Council Members/Directors Funk, Newsom, Peek, Mayor Pro
Tem/Vice Chair Dariz, and Mayor/Chair Bourbeau
Absent: None
Staff Present: City Manager James R. Lewis, Assistant City Manager/City Clerk
Lara Christensen, City Attorney Dave Fleishman, Director of
Administrative Services/City Treasurer Jeri Rangel, Public Works
Director Nick DeBar, Community Development Director Phil
Dunsmore, Fire Chief Casey Bryson, Police Chief Dan Suttles,
Deputy City Manager - IT Luke Knight
D. PRESENTATIONS
1. APD Lifesaving Awards
Chief Suttles presented Sergeant Rodriguez, Corporal Pippen, Officer Hearst
and Corporal Nobriga with the Atascadero Police Department’s Lifesaving Award.
2. Employee Recognition
City Manager Lewis and Mayor Bourbeau presented the following employees
with Service Awards:
10 Years: Ryan Hofstetter, Building Inspector II
Ron Overacker, Police Officer
Phil Dunsmore, Community Development Director
James R. Lewis, City Manager
Page 6 of 116
10/14/25 | Item D1
Atascadero City Council
September 23, 2025
Page 3 of 7
15 Years: Dawn Patterson, Financial Analyst
20 Years: Dean Pericic, Fire Captain
25 Years: Annette Manier, Administrative Assistant
E. CONSENT CALENDAR
1. City Council Draft Minutes - September 9, 2025 Special Meeting
Recommendation: Council approve the September 9, 2025, City Council
Special Meeting Minutes [City Clerk]
2. City Council/City Council in the Capacity of Successor Agency to the
Community Redevelopment Agency of Atascadero for
Redevelopment and Housing Purposes Draft Minutes - September 9,
2025 Regular Meeting
Recommendation: Council Approve the September 9. 2025 City
Council/City Council in the Capacity of Successor Agency to the
Community Redevelopment Agency of Atascadero for Redevelopment and
Housing Purposes Regular Meeting Minutes. [City Clerk]
3. August 2025 Accounts Payable and Payroll
Fiscal Impact: $4,730,559.04
Recommendation: Council approve certified City accounts payable, payroll
and payroll vendor checks for August 2025. [Administrative
Services]
4. June 2025 Investment Report
Fiscal Impact: None
Recommendation: Council receive and file the City Treasurer's report for
quarter ending June 30, 2025 [Administrative Services]
Mayor Bourbeau pulled item E4 from Consent, to be voted on at the
next scheduled meeting
Mayor Bourbeau opened the Public Comment period.
The following persons spoke on this item: None
Mayor Bourbeau closed the Public Comment period.
Motion by Council Member/Director Funk
Seconded by Council Member/Director Peek
Approve Consent Calendar Items E1, E2, E3
AYES (5): Mayor/Chair Bourbeau, Mayor Pro Tem/Vice Chair Dariz, Council
Member/Directors Funk, Newsom, and Peek
Motion Passed (5 to 0)
Page 7 of 116
10/14/25 | Item D1
Atascadero City Council
September 23, 2025
Page 4 of 7
F. UPDATES FROM THE CITY MANAGER
City Manager Lewis gave an update on projects and issues within the City.
G. COMMUNITY FORUM
The following persons spoke: Geoff Auslen, Frank Cogg, John Dinunzio (Exhibit
A)
H. PUBLIC HEARINGS
1. City of Atascadero and the Atascadero Financing Authority Approve/
Authorize the Issuance of Lease Revenue Bonds, Series 2025a (AFA
Item)
Fiscal Impact: An estimated amount of $29,613,000 in bond proceeds and
related interest and an estimated $57,204,000 in related debt service
costs over 30 years.
Recommendation:
1. Council hold a public hearing on the financing of the Projects.
2. Council adopt Draftt Resolution authorizing the execution and
delivery by the City of Atascadero of a Ground Lease, Lease Agreement,
Indenture, and Bond Purchase Agreement in connection with the issuance
of Atascadero Financing Authority Lease Revenue Bonds, approving the
issuance of such bonds in an aggregate principal amount of not to exceed
$33 million, authorizing the distribution of an official statement in
connection with the offering and sale of such bonds, and authorizing the
execution of necessary documents and certificates and related actions.
3. Board of Directors adopt Draft Resolution authorizing the execution
and delivery by the authority of a Ground Lease, Lease Agreement,
Indenture, Assignment Agreement, and Bond Purchase Agreement in
connection with the issuance of Atascadero Financing Authority Lease
Revenue Bonds, authorizing the issuance of such bonds in an aggregate
principal amount of not to exceed $33 million, authorizing the distribution
of an official statement in connection with the offering and sale of such
bonds, and authorizing the execution of necessary documents and
certificates and related actions.
Administrative Services Director Rangel presented this item. Director
Rangel, Assistant City Manager Christensen, Ralph Holmes (Piper,
Sandler & Co.), Mike Busch (Urban Futures, Inc.) and Vanessa Legbrandt
(Stradling, Yocca, Carlson & Rauth) answered questions from the Council
Mayor Bourbeau opened the Public Comment period.
The following persons spoke on this item: Geoff Auslen
Mayor Bourbeau closed the Public Comment period.
Page 8 of 116
10/14/25 | Item D1
Atascadero City Council
September 23, 2025
Page 5 of 7
Motion by Council Member/Director Funk
Seconded by Mayor Pro Tem/Vice Chair Dariz
1. Council adopt Draft Resolution authorizing the execution and
delivery by the City of Atascadero of a Ground Lease, Lease
Agreement, Indenture, and Bond Purchase Agreement in connection
with the issuance of Atascadero Financing Authority Lease Revenue
Bonds, approving the issuance of such bonds in an aggregate
principal amount of not to exceed $33 million, authorizing the
distribution of an official statement in connection with the offering
and sale of such bonds, and authorizing the execution of necessary
documents and certificates and related actions. (Resolution 2025-
059)
2. Board of Directors adopt Draft Resolution authorizing the
execution and delivery by the authority of a Ground Lease, Lease
Agreement, Indenture, Assignment Agreement, and Bond Purchase
Agreement in connection with the issuance of Atascadero Financing
Authority Lease Revenue Bonds, authorizing the issuance of such
bonds in an aggregate
principal amount of not to exceed $33 million, authorizing the
distribution of an official statement in connection with the offering
and sale of such bonds, and authorizing the execution of necessary
documents and certificates and related actions. (Resolution AFA
2025-002)
AYES (5): Mayor/Chair Bourbeau, Mayor Pro Tem/Vice Chair Dariz,
Council Member/Directors Funk, Newsom, and Peek
Motion Passed (5 to 0)
2. Economic Development Subsidy – Centennial Development Project
DEV24-0099
Fiscal Impact: The fiscal impact for the Centennial Plaza Project is
$150,000 in revenue from the sale of real property with an offsetting book
value of $95,901. Additionally, the project will have a projected tax
revenue of $75,000 - $100,000 per year (once fully occupied with tenants).
Recommendation: Council:
1. Conduct a public hearing to receive public testimony on the Economic
Development Subsidy for the Centennial Development Project at 5901
East Mall.
2. Receive, file and approve the information on the Subsidy required
pursuant to Government Code Section 53083, contained in the Public
Notice and Report. [Community Development]
Ex Parte Communications: None
Page 9 of 116
10/14/25 | Item D1
Atascadero City Council
September 23, 2025
Page 6 of 7
Deputy Director of Economic and Community Development Cappel
presented this item and answered questions from the Council
Mayor Bourbeau opened the Public Comment period.
The following persons spoke on this item: None
Mayor Bourbeau closed the Public Comment period.
Motion by Council Member/Director Newsom
Seconded by Council Member/Director Peek
Receive, file and approve the information on the Subsidy required
pursuant to Government Code Section 53083, contained in the Public
Notice and Report.
AYES (5): Mayor/Chair Bourbeau, Mayor Pro Tem/Vice Chair Dariz,
Council Member/Directors Funk, Newsom, and Peek
Motion Passed (5 to 0)
I. MANAGEMENT REPORTS
1. Centennial Plaza Purchase Agreement DEV24-099
Fiscal Impact: The fiscal impact for the Centennial Plaza Project is
$150,000 in revenue from the sale of real property with an offsetting book
value of $95,901. Additionally, the project will have a projected tax
revenue of $75,000 - $100,000 per year (once fully occupied with tenants).
Recommendation: Authorize the City Manager to execute a sales
agreement with Colin Weyrick for the private purchase of the Centennial
Plaza properties (APN 029-347-020 and APN 029-347-033) in the amount
of $150,000 for the development of the approved mixed-use project in a
form and content acceptable to the City Attorney. [Community
Development]
Community Development Director Dunsmore presented this item. He and
City Manager Lewis answered questions from the Council.
Mayor Bourbeau opened the Public Comment period.
The following persons spoke on this item: None
Mayor Bourbeau closed the Public Comment period.
Motion by Council Member/Director Funk
Seconded by Mayor Pro Tem/Vice Chair Dariz
Authorize the City Manager to execute a sales agreement with Colin
Weyrick for the private purchase of the Centennial Plaza properties
(APN 029-347-020 and APN 029-347-033) in the amount of $150,000
Page 10 of 116
10/14/25 | Item D1
Atascadero City Council
September 23, 2025
Page 7 of 7
for the development of the approved mixed-use project in a form and
content acceptable to the City Attorney. (Contract 2025-0015)
AYES (5): Mayor/Chair Bourbeau, Mayor Pro Tem/Vice Chair Dariz,
Council Member/Directors Funk, Newsom, and Peek
Motion Passed (5 to 0)
J. COUNCIL ANNOUNCEMENTS AND COMMITTEE REPORTS
The following Council Members gave brief update reports on their committees
since their last Council meeting:
Mayor Bourbeau
1. County Mayor’s Round Table
2. Integrated Waste Management Authority (IWMA)
3. Central Coast Community Energy (3CE)
Mayor Pro Tem Dariz
1. Air Pollution Control District
2. Community Action Partnership of San Luis Obispo (CAPSLO)
Council Member Funk
1. Homeless Services Oversight Council
2. REACH SLO Advisory Commission
K. INDIVIDUAL DETERMINATION AND / OR ACTION:
Mayor Bourbeau announced his appointment of Tom Jones to fill the vacant
Council appointed seat and Joey Ferrell as selected by Council at the 9/9/25
Special Meeting to fill the unscheduled, at-large vacancy on the Planning
Commission.
L. ADJOURNMENT
Mayor Bourbeau adjourned the meeting at 7:46 p.m.
MINUTES PREPARED BY:
______________________________________
Alyssa Slater
Deputy City Clerk
APPROVED:
Exhibit A – SLOCOG Public Workshops Flyer
Page 11 of 116
CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT
Department:Administrative
Services
Date:10/14/25
Placement:Consent
TO: JAMES R. LEWIS, CITY MANAGER
FROM: JERI RANGEL, DIRECTOR OF ADMINISTRATIVE SERVICES/TREASURER
PREPARED BY: KRYS CLARK, ACCOUNTING SPECIALIST
SUBJECT: June 2025 Investment Report
RECOMMENDATION:
REPORT IN BRIEF:
CASH AND INVESTMENTS
Checking Account 1,843,321$
Zoo Credit Card Deposit Account 2,393
Mechanics Bank Money Market Account 13,609,866
Certificates of Deposit 15,681,844
Government Securities 28,767,552
Municipal Securities 8,448,754
Supranational Securities 1,007,257
LAIF 6,210,574
Cash with Fiscal Agents (2024 Bonds)23,482
Cash in Banks at June 30, 2025 75,595,043$
Deposits in Transit 701,405
Timing Differences (576,389)
Cash and Investments at June 30, 2025 75,720,059$
INVESTMENT ACTIVITY
Securities Purchased:
Purchase Date Description Type Cost Maturity Date
04/10/25 Bank of America
National Association
Certificate of
Deposit
$ 245,000 04/12/27
04/09/25 US Treasury Notes
CUSIP #91282CGS4
Government
Security
989,398 03/31/30
05/07/25 US Treasury Notes
CUSIP #91282CGZ8
Government
Security
981,586 04/30/30
Securities Matured:
Maturity Date Description Type Original Cost Amount Matured
04/01/25 El Cajon Taxable Pension Obl
CUSIP #282659AX9
Municipal
Security
662,792 650,000
Council receive and file the City Treasurer's report for quarter ending June 30, 2025.
Item D2
Page 12 of 116
Securities Matured (continued):
Maturity Date Description Type Original Cost Amount Matured
First National Bank04/28/25
McGregor, TX
Certificate of
Deposit
$ 245,000$ 245,000
Flagstar Bank04/29/25
Troy, MI
Certificate of
Deposit
245,000245,000
Corona, CA Pension05/01/25
CUSIP #21969AAD4
Municipal
Security
450,000420,615
Tennessee Valley Authority05/15/25
CUSIP #880591EW8
Government
Security
205,000185,691
BMO Harris Bank06/24/25
Chicago, IL
Certificate of
Deposit
225,000218,039
US Treasury Notes06/30/25
CUSIP #912828XZ8
Government
Security
500,000502,070
Securities Sold Prior to Maturity:
None
Other Reportable Activities:
None
REVIEWED BY OTHERS:
This item has been reviewed by the Administrative Services Director/City Treasurer and the Deputy
Administrative Services Director.
REVIEWED AND APPROVED FOR COUNCIL AGENDA
James R. Lewis, City Manager
ATTACHMENT:
1. Treasurer's Report
Investment Activity (continued)
10/14/25 | Item D2 | Staff Report
Page 13 of 116
City of Atascadero
Treasurer's Report
Cash & Investments Activity Summary
for the quarter ending June 30, 2025
CHECKING FISCAL
ACCOUNTS INVESTMENTS AGENT TOTALS
Balance per Banks at
April 1, 2025 $1,208,295 $69,332,491 $417,107 70,957,893$
Receipts 278,183 16,475,912 - 16,754,095
Recognition of Premiums &
Discounts - 53,126 - 53,126
Disbursements (11,775,279) (1,167) (393,625) (12,170,071)
Transfers In 14,865,000 2,730,485 - 17,595,485
Transfers Out (2,730,485) (14,865,000) - (17,595,485)
Balance per Banks at
June 30, 2025 $1,845,714 $73,725,847 $23,482 75,595,043
Deposits in Transit 701,405
Timing Differences (576,389)
Adjusted Treasurer's Balance $75,720,059
10/14/25 | Item D2 | Attachment 1
Page 14 of 116
MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/COST OF MARKET UNREALIZED
DATE (ISSUER)DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT)INVESTMENT VALUE GAIN / (LOSS)
City of Atascadero
Investment Report
June 30, 2025
Funds Managed by City
n/a
Local Agency Invest.
Fund (LAIF)n/a State Investment Fund n/a n/a 4.27%6,210,574$ n/a 6,210,574$ 6,218,016$ 7,442$
n/a Mechanic's Bank Money Market n/a Money Fund n/a n/a 4.67%13,609,866 n/a 13,609,866 13,609,866 -
07/01/25 Northern Calif Power Agency
CUSIP #664845FN9
04/13/22 Municipal Security Aa3 2.39%3.04%305,000 (4) 304,996 305,000 4
07/01/25 University of California
CUSIP #91412GU94
10/22/20 Municipal Security Aa2 3.06%0.81%300,000 15 300,015 300,000 (15)
08/12/25 Goldman Sachs Bank
New York, NY
11/08/23 Certificate of Deposit n/a 3.05%5.16%246,000 (602) 245,398 245,587 189
08/18/25 Federal National Mortgage Assn
CUSIP #3136G4M75
01/09/22 Government Security Aaa 0.52%4.70%280,000 (1,548) 278,452 278,575 123
08/20/25 Northeast Community Bank
White Plains, NY
07/19/23 Certificate of Deposit n/a 0.45%4.99%160,000 (1,010) 158,990 159,131 141
09/01/25 San Bernardino Successor Agency
Swansea, MA
10/22/20 Municipal Security Aa 4.00%0.71%175,000 990 175,990 175,168 (822)
09/12/25 Federal Home Loan Bank
CUSIP #3130A6C70
10/04/22 Government Security Aaa 2.63%4.13%570,000 (1,704) 568,296 567,954 (342)
10/01/25 Folsom Cordova School District
CUSIP #34440PCN9
11/10/20 Municipal Security Aa-3.00%1.00%400,000 2,018 402,018 398,840 (3,178)
10/03/25 Investar Bank
Baton Rouge, LA
10/04/23 Certificate of Deposit n/a 5.35%5.35%248,000 n/a 248,000 248,608 608
11/07/25 Federal National Mortgage Assn
CUSIP #3135G06G3
12/14/20 Government Security Aaa 0.50%0.42%500,000 142 500,142 493,400 (6,742)
11/15/25 Tulare Sewer Revenue
CUSIP 899124MF5
12/11/20 Municipal Security Aa 1.46%0.58%400,000 1,314 401,314 395,980 (5,334)
12/11/25 BMW Bank North America
Salt Lake City, UT
12/11/20 Certificate of Deposit n/a 0.50%0.50%245,000 n/a 245,000 240,833 (4,167)
12/18/25 Third Federal Savings & Loan
Cleveland, OH
12/18/20 Certificate of Deposit n/a 1.46%1.46%245,000 n/a 245,000 240,612 (4,388)
12/29/25 American Nat'l Bank
Baxter, MN
09/29/23 Certificate of Deposit n/a 5.00%5.00%248,000 n/a 248,000 248,883 883
01/15/26 First Reliance Bank
Florence, SC
01/15/21 Certificate of Deposit n/a 0.30%0.30%245,000 n/a 245,000 239,838 (5,162)
01/22/26 ConnectOne Bank
Englewood Cliffs, NJ
01/22/21 Certificate of Deposit n/a 0.45%0.45%245,000 n/a 245,000 239,877 (5,123)
10/14/25 | Item D2 | Attachment 1
Page 15 of 116
MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/COST OF MARKET UNREALIZED
DATE (ISSUER)DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT)INVESTMENT VALUE GAIN / (LOSS)
City of Atascadero
Investment Report
June 30, 2025
01/22/26 Luana Savings Bank
Luana, IA
01/22/21 Certificate of Deposit n/a 0.40%0.40%245,000$ n/a 245,000$ 239,850$ (5,150)$
02/09/26 First United Bank & Trust
Durant, OK
03/16/23 Certificate of Deposit n/a 4.25%4.81%120,000 (408) 119,592 120,054 462
02/11/26 Ind'l & Com'l Bank of China
New York, NY
02/22/21 Certificate of Deposit n/a 0.45%0.45%245,000 n/a 245,000 239,478 (5,522)
02/24/26 Eaglebank
Bethesda, MD
03/16/23 Certificate of Deposit n/a 4.25%4.25%244,000 n/a 244,000 244,098 98
03/02/26 Federal Farm Credit Bank
CUSIP #3133EFH91
03/03/21 Government Security Aaa 2.22%0.75%876,000 8,602 884,602 864,349 (20,253)
03/27/26 Federal Agriculture Mtge Corp
CUSIP #31422XDX7
03/30/21 Government Security n/a 0.83%0.87%500,000 (140) 499,860 487,805 (12,055)
04/23/26 Malaga Bank
Palos Verdes Peninsula, CA
04/23/21 Certificate of Deposit n/a 0.55%0.55%245,000 n/a 245,000 238,089 (6,911)
04/24/26 Federal National Mortgage Assn
CUSIP #3135G0K36
04/26/21 Government Security Aaa 2.13%0.77%500,000 5,512 505,512 492,175 (13,337)
05/19/26 Eaglemark Savings Bank
Reno, NV
05/19/21 Certificate of Deposit n/a 0.70%0.70%245,000 n/a 245,000 237,817 (7,183)
05/31/26 US Treasury Notes
CUSIP #91282CCF6
11/23/22 Government Security Aaa 0.75%4.15%500,000 (15,136) 484,864 485,275 411
06/01/26 Golden St TOB
CUSIP #38122NC59
05/10/23 Municipal Security A 2.16%4.52%150,000 (3,153) 146,847 146,711 (137)
06/05/26 Enterprise Bank
Omaha, NE
09/27/23 Certificate of Deposit n/a 0.85%4.99%249,000 (9,374) 239,626 241,739 2,113
06/24/26 First Financial Bank
Dakota Dunes, SD
09/27/23 Certificate of Deposit n/a 3.15%5.11%249,000 (4,670) 244,330 246,881 2,551
06/30/26 UBS Bank USA
Salt Lake City, UT
05/19/21 Certificate of Deposit n/a 0.90%0.90%245,000 n/a 245,000 237,496 (7,504)
07/01/26 New York Community Bank
Hicksville, NY
06/29/21 Certificate of Deposit n/a 0.85%0.85%245,000 n/a 245,000 237,351 (7,649)
07/20/26 Southern Bancorp Bank
Arkadelphia, AR
01/19/24 Certificate of Deposit n/a 4.00%4.00%249,000 n/a 249,000 248,933 (67)
07/22/26 Toyota Financial Savings Bank
Henderson, NV
07/22/21 Certificate of Deposit n/a 0.95%0.95%245,000 n/a 245,000 237,238 (7,762)
08/01/26 Rancho Adobe Fire Protection
CUSIP #752096AE7
10/14/21 Municipal Security Aa 1.43%1.25%260,000 506 260,506 251,891 (8,615)
10/14/25 | Item D2 | Attachment 1
Page 16 of 116
MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/COST OF MARKET UNREALIZED
DATE (ISSUER)DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT)INVESTMENT VALUE GAIN / (LOSS)
City of Atascadero
Investment Report
June 30, 2025
08/03/26 Bridgewater Bank
St. Louis Pk, MN
11/03/23 Certificate of Deposit n/a 5.15%5.15%248,000$ n/a 248,000$ 250,976$ 2,976$
08/13/26 Synchrony Bank
Draper, UT
08/13/21 Certificate of Deposit n/a 0.90%0.90%245,000 n/a 245,000 236,677 (8,323)
08/15/26 Dallas TX Ind School District
CUSIP #235308D83
05/09/24 Municipal Security Aaa 4.00%4.86%150,000 (1,369) 148,631 149,443 812
08/15/26 El Paso TX
CUSIP #283734Y21
05/09/24 Municipal Security Aa 4.93%4.93%110,000 (4,565) 105,435 106,359 924
09/24/26 Federal National Mortgage Assn
CUSIP #3135G0Q22
09/24/21 Government Security Aaa 1.88%0.80%500,000 6,626 506,626 487,295 (19,331)
09/29/26 First Bank Richmond
Richmond, IN
09/29/21 Certificate of Deposit n/a 0.55%0.55%245,000 n/a 245,000 234,712 (10,288)
10/01/26 California Infrastructure Bonds
CUSIP #13034AL73
10/05/22 Municipal Security AAA 1.04%4.69%155,000 (6,824) 148,176 149,298 1,122
10/01/26 Manteca Redevelopment Bonds
CUSIP #56453RBA1
10/05/22 Municipal Security AA 2.04%4.81%115,000 (3,831) 111,169 112,080 911
10/13/26 Federal Agricultural Mtge Corp
CUSIP #31424WAN2
11/08/23 Government Security n/a 5.00%4.77%700,000 1,999 701,999 708,729 6,730
10/31/26 US Treasury Notes
CUSIP #912828YQ7
11/23/22 Government Security Aaa 1.63%4.07%250,000 (7,870) 242,130 242,725 595
11/17/26 Capital One Bank
Glen Allen, VA
11/17/21 Certificate of Deposit n/a 1.10%1.10%245,000 n/a 245,000 235,438 (9,562)
11/17/26 Capital One National
McLean, VA
11/17/21 Certificate of Deposit n/a 1.10%1.10%245,000 n/a 245,000 235,438 (9,562)
11/17/26 Federal Agricultural Mtge Corp
CUSIP #31422XPS5
09/27/23 Government Security n/a 1.15%4.86%500,000 (24,512) 475,488 481,370 5,882
12/21/26 Federal Home Loan Bank
CUSIP #3130AQF65
12/30/21 Government Security Aaa 1.25%1.26%500,000 (54) 499,946 481,355 (18,591)
12/28/26 Federal Farm Credit Bank
CUSIP #3133EJ4E6
01/18/22 Government Security Aaa 3.13%1.58%200,000 4,551 204,551 197,586 (6,965)
12/31/26 Bank Kremlin
Kremlin, OK
12/31/21 Certificate of Deposit n/a 1.05%1.05%245,000 n/a 245,000 234,494 (10,506)
01/15/27 San Joaquin Hills Trans Agency
CUSIP # 798111HF0
01/19/22 Municipal Security A2 2.15%1.88%500,000 2,048 502,048 485,430 (16,618)
01/19/27 First Foundation Bank
Irvine, CA
10/25/23 Certificate of Deposit n/a 4.70%5.05%230,000 (1,177) 228,823 232,378 3,555
10/14/25 | Item D2 | Attachment 1
Page 17 of 116
MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/COST OF MARKET UNREALIZED
DATE (ISSUER)DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT)INVESTMENT VALUE GAIN / (LOSS)
City of Atascadero
Investment Report
June 30, 2025
02/10/27 Federal Agriculture Mtge Corp
CUSIP #31422XTX0
02/17/22 Government Security n/a 1.60%1.96%550,000$ (3,125)$ 546,875$ 530,255$ (16,620)$
02/17/27 Beal Bank USA
Las Vegas, NV
02/23/22 Certificate of Deposit n/a 1.90%1.90%245,000 n/a 245,000 237,001 (7,999)
02/23/27 Sallie Mae Bank
Salt Lake City, UT
10/13/22 Certificate of Deposit n/a 2.20%4.17%184,000 (5,736) 178,264 178,773 509
03/01/27 Sonoma Marin Area Rail Transit
CUSIP #835588BA1
12/07/22 Municipal Security AA 1.73%4.45%500,000 (21,637) 478,363 480,195 1,832
03/12/27 Federal Home Loan Bank
CUSIP #3130A3DU5
03/17/22 Government Security Aaa 3.00%2.20%500,000 6,633 506,633 492,395 (14,238)
03/16/27 American Express Nat'l Bank
Sandy, UT
03/16/22 Certificate of Deposit n/a 2.00%2.00%245,000 n/a 245,000 236,937 (8,063)
03/17/27 Beal Bank
Plano, TX
03/23/22 Certificate of Deposit n/a 2.00%2.00%245,000 n/a 245,000 236,337 (8,663)
04/12/27 Bank of America
National Association
04/10/25 Certificate of Deposit n/a 4.00%4.00%245,000 n/a 245,000 245,029 29
04/14/27 Comenity Capital Bank
Draper, UT
04/14/22 Certificate of Deposit n/a 2.65%2.65%245,000 n/a 245,000 239,372 (5,628)
04/30/27 US Treasury Notes
CUSIP # 91282CEN7
01/18/23 Government Security Aaa 2.75%3.64%1,000,000 (15,686) 984,314 982,270 (2,044)
05/01/27 LA Unified School District
CUSIP # 544646A77
05/11/22 Municipal Security Aa3 5.72%3.81%500,000 16,940 516,940 513,330 (3,610)
05/15/27 US Treasury Notes
CUSIP #912828X88
05/24/22 Government Security Aaa 2.38%2.87%500,000 (4,417) 495,583 487,635 (7,948)
06/09/27 Federal Home Loan Bank
CUSIP #3130A5JU4
06/22/22 Government Security Aaa 3.04%3.43%200,000 (1,433) 198,567 197,166 (1,401)
06/11/27 Federal Home Loan Bank
CUSIP #3130ASGU7
06/22/22 Government Security Aaa 3.50%3.41%200,000 361 200,361 198,608 (1,753)
06/15/27 Federal Farm Credit Bank
CUSIP #3133EHNR0
06/22/22 Government Security Aaa 2.58%3.43%480,000 (7,618) 472,382 468,134 (4,248)
07/01/27 Sequoia CA Union High
CUSIP #817409N50
05/10/23 Municipal Security AA1 1.95%4.20%350,000 (14,945) 335,055 336,126 1,071
07/16/27 Federal Farm Credit Bank
CUSIP #3133EAXT0
07/26/22 Government Security Aaa 2.75%2.98%135,000 (603) 134,397 132,218 (2,179)
07/20/27 Federal Farm Credit Bank
CUSIP #3133ELV92
10/25/23 Government Security Aaa 0.77%4.86%500,000 (39,483) 460,517 469,435 8,918
10/14/25 | Item D2 | Attachment 1
Page 18 of 116
MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/COST OF MARKET UNREALIZED
DATE (ISSUER)DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT)INVESTMENT VALUE GAIN / (LOSS)
City of Atascadero
Investment Report
June 30, 2025
08/01/27 Corona Norco Ca Unif Sch Dist
CUSIP # 219764SB4
08/04/22 Municipal Security AA-2.30%3.63%250,000$ (6,627)$ 243,373$ 241,868$ (1,506)$
08/01/27 Escondido CA Unif Sch Dist
CUSIP # 2963871UV7
08/05/22 Municipal Security AA2 1.13%3.53%100,000 (4,781) 95,219 94,380 (839)
08/01/27 Martinez CA Uni Sch Dist
CUSIP # 573428MN6
08/04/22 Municipal Security AA 1.26%3.43%250,000 (10,812) 239,188 236,592 (2,596)
08/01/27 San Marcos CA Uni Sch Dist
CUSIP # 798755GC2
08/05/22 Municipal Security AA 2.31%3.68%185,000 (5,032) 179,968 178,934 (1,034)
08/01/27 Southwestern Comm College
CUSIP # 845389LS2
08/04/22 Municipal Security AA-1.53%3.53%155,000 (6,169) 148,831 147,665 (1,166)
08/26/27 Federal Agriculture Mtge Corp
CUSIP #31422XF23
09/02/22 Government Security n/a 3.20%3.49%500,000 (2,970) 497,030 492,975 (4,055)
09/15/27 Luminate Bank
Minnetonka, MN
09/15/22 Certificate of Deposit n/a 3.40%3.40%245,000 n/a 245,000 242,018 (2,982)
09/15/27 Ponce de Leon Fed Bank
Bronx, NY
09/15/22 Certificate of Deposit n/a 3.50%3.50%245,000 n/a 245,000 242,535 (2,465)
09/15/27 University of Pittsburgh
CUSIP # 798755GC2
09/15/22 Municipal Security AA+3.18%3.81%500,000 (6,609) 493,391 491,680 (1,711)
10/08/27 Federal National Mortgage Assn
CUSIP #3135G05Y5
10/12/22 Government Security Aaa 0.75%4.12%1,000,000 (72,441) 927,559 935,550 7,991
10/31/27 US Treasury Notes
CUSIP # 91282CAU5
11/09/22 Government Security Aaa 0.50%4.31%600,000 (50,333) 549,667 557,250 7,583
11/15/27 Tulare CA Sewer Rev
CUSIP #899124MH1
04/12/23 Municipal Security AA 1.93%4.47%325,000 (18,425) 306,575 309,693 3,118
11/15/27 US Treasury Notes
CUSIP # 9128283F5
12/07/22 Government Security Aaa 2.25%3.79%500,000 (17,306) 482,694 483,495 801
12/01/27 Federal Agricultural Mtge Corp
CUSIP #31422XR95
10/20/23 Government Security n/a 4.03%5.04%500,000 (11,347) 488,653 502,175 13,522
12/15/27 Forbright Bank
Potomac, MD
12/15/22 Certificate of Deposit n/a 4.00%4.00%245,000 n/a 245,000 245,093 93
12/16/27 Community West Bank NA
Goleta, CA
12/16/22 Certificate of Deposit n/a 4.00%4.00%245,000 n/a 245,000 245,093 93
01/12/28 Inter-American Dev Bank
CUSIP # 4581X0EH7
01/19/23 Supranational Security Aaa 4.00%3.70%1,000,000 7,257 1,007,257 1,005,810 (1,447)
02/10/28 First National Bk of Michigan
Kalamazoo, MI
02/10/23 Certificate of Deposit n/a 3.70%3.70%249,000 n/a 249,000 247,222 (1,778)
10/14/25 | Item D2 | Attachment 1
Page 19 of 116
MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/COST OF MARKET UNREALIZED
DATE (ISSUER)DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT)INVESTMENT VALUE GAIN / (LOSS)
City of Atascadero
Investment Report
June 30, 2025
02/15/28 Belmont Bank & Trust
Chicago, IL
02/15/23 Certificate of Deposit n/a 3.75%3.75%249,000$ n/a 249,000$ 247,518$ (1,482)$
02/15/28 US Treasury Notes
CUSIP # 9128283W8
02/01/23 Government Security Aaa 2.75%3.64%500,000 (11,086) 488,914 488,105 (809)
02/17/28 Vision Bank
St. Louis, MN
02/17/23 Certificate of Deposit n/a 3.75%3.75%249,000 n/a 249,000 247,516 (1,484)
03/10/28 Federal Home Loan Bank
CUSIP # 3130ATS57
03/15/23 Government Security Aaa 4.50%3.90%600,000 9,153 609,153 611,814 2,661
03/17/28 Affinity Bank
Covington, GA
03/17/23 Certificate of Deposit n/a 4.90%4.90%245,000 n/a 245,000 250,716 5,716
03/20/28 Bank Five Nine
Oconomowoc, WI
03/20/23 Certificate of Deposit n/a 4.65%4.65%245,000 n/a 245,000 249,153 4,153
04/01/28 California State Bonds-GO
CUSIP #13063DGC6
04/12/23 Municipal Security AA 3.50%3.98%525,000 (6,470) 518,530 519,047 517
04/01/28 California State Bonds-Taxable
CUSIP #13063DGC6
04/12/23 Municipal Security AA 3.50%3.98%150,000 (1,849) 148,151 148,299 148
04/06/28 Morgan Stanley Bank
Salt Lake City, UT
09/28/23 Certificate of Deposit n/a 4.65%4.69%244,000 (243) 243,757 248,058 4,301
05/12/28 Central Bank
Little Rock, AR
05/12/23 Certificate of Deposit n/a 3.85%3.85%249,000 n/a 249,000 249,027 27
05/16/28 CIBC Bank
Chicago, IL
05/16/23 Certificate of Deposit n/a 4.35%4.35%244,000 n/a 244,000 246,203 2,203
05/16/28 Univest Bank & Trust
Souderton, PA
05/16/23 Certificate of Deposit n/a 4.40%4.40%249,000 n/a 249,000 251,727 2,727
05/30/28 Idaho First Bank
McCall, ID
05/30/23 Certificate of Deposit n/a 4.20%4.20%245,000 n/a 245,000 252,228 7,228
05/31/28 Customers Bank
Phoenixville, PA
05/31/23 Certificate of Deposit n/a 4.45%4.45%244,000 n/a 244,000 251,025 7,025
06/09/28 Federal Home Loan Bank
CUSIP #3130AEB25
06/20/23 Government Security AA+3.25%4.03%170,000 (3,634) 166,366 168,071 1,705
06/30/28 Federal Home Loan Bank
CUSIP #3130AWN63
08/03/23 Government Security Aaa 4.00%4.33%500,000 (4,591) 495,409 504,460 9,051
07/06/28 HSBC Bank USA
McLean, VA
07/18/23 Certificate of Deposit n/a 3.30%4.57%249,000 (8,937) 240,063 243,584 3,521
07/26/28 Park State Bank
Duluth, MN
07/26/23 Certificate of Deposit n/a 4.45%4.45%249,000 n/a 249,000 252,207 3,207
10/14/25 | Item D2 | Attachment 1
Page 20 of 116
MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/COST OF MARKET UNREALIZED
DATE (ISSUER)DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT)INVESTMENT VALUE GAIN / (LOSS)
City of Atascadero
Investment Report
June 30, 2025
07/31/28 Medallion Bank
Salt Lake City, UT
249,0004.40%n/aCertificate of Deposit07/31/23 249,000n/a$251,854$$2,854$
08/01/28 New York City Transitional Fin Auth
CUSIP #64971XBN7
850,0004.90%Aa1Municipal Security08/16/23 (42,252) 807,748 825,579 17,831
08/17/28 United Fidelity Bank FBS
Evansville, IN
249,0004.50%n/aCertificate of Deposit09/13/23 249,000n/a 252,608 3,608
09/05/28 Discover Bank
Greenwood, DE
244,0004.55%n/aCertificate of Deposit09/07/23 244,000n/a 247,882 3,882
09/13/28 Optum Bank Inc
Draper, UT
244,0004.55%n/aCertificate of Deposit09/13/23 244,000n/a 247,789 3,789
09/21/28 Merrick Bank
South Jordan, UT
249,0004.50%n/aCertificate of Deposit09/21/23 249,000n/a 252,673 3,673
09/27/28 Legacy Bank & Trust
Mountain Grove, MO
249,0004.50%n/aCertificate of Deposit09/27/23 249,000n/a 252,685 3,685
09/29/28 Star Bank
Maple Lake, MN
244,0004.65%n/aCertificate of Deposit09/29/23 244,000n/a 248,558 4,558
10/17/28 Southern First Bank
Greensville, SC
244,0004.85%n/aCertificate of Deposit10/26/23 244,000n/a 250,734 6,734
10/23/28 Federal Home Loan Bank
CUSIP #3130AXLQ9
500,0004.89%AaaGovernment Security10/25/23 2,095 502,095 517,925 15,830
10/27/28 Iowa State Bank
Clarksville, IA
249,0004.70%n/aCertificate of Deposit10/27/23 249,000n/a 254,289 5,289
11/14/28 Wells Fargo Bank
Sioux Falls, SD
248,0005.05%n/aCertificate of Deposit11/14/23 248,000n/a 256,053 8,053
11/16/28 Federal Home Loan Bank
CUSIP #3130AFFX0
500,0004.29%AaaGovernment Security12/12/23 (16,166) 483,834 493,185 9,351
12/01/28 Sulphur Springs CA Uni Sch District
CUSIP #865485EL6
110,0004.58%A2Municipal Security12/07/23 (8,966) 101,034 101,994 960
12/04/28 Federal Agricultural Mtge Corp
CUSIP #31424WCR1
750,0004.33%n/aGovernment Security12/12/23 1,028 751,028 762,713 11,685
12/04/28 Federal Farm Credit Bank
CUSIP #3133EHZ48
194,0004.49%AaaGovernment Security05/08/24 (10,530) 183,470 187,187 3,717
01/18/29 Federal Farm Credit Bank
CUSIP #3133EPW84
750,0004.04%AA+Government Security01/19/24 (3,988) 746,012 749,243 3,231
01/26/29 Old Dominion National Bank
North Garden, VA
249,0003.85%n/aCertificate of Deposit01/26/24 249,000n/a 247,521 (1,479)
10/14/25 | Item D2 | Attachment 1
4.40%
4.90%
4.50%
4.55%
4.55%
4.50%
4.50%
4.65%
4.85%
5.03%
4.70%
5.05%
3.25%
1.97%
4.38%
2.77%
3.88%
3.85%
Page 21 of 116
MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/COST OF MARKET UNREALIZED
DATE (ISSUER)DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT)INVESTMENT VALUE GAIN / (LOSS)
City of Atascadero
Investment Report
June 30, 2025
01/26/29 Parkside Financial Bank
Clayton, MO
01/26/24 Certificate of Deposit n/a 3.85%3.85%249,000$ n/a 249,000$ 247,521$ (1,479)$
02/13/29 Federal Farm Credit Bank
CUSIP #3133EP3B9
02/14/24 Government Security AA+4.13%4.28%1,250,000 (6,217) 1,243,783 1,259,250 15,467
03/09/29 Federal Home Loan Bank
CUSIP #3130AVBD3
04/10/24 Government Security AA+4.50%4.47%1,000,000 880 1,000,880 1,024,940 24,060
04/10/29 Federal Farm Credit Bank
CUSIP #3133ERAK7
04/17/24 Government Security AA+4.38%4.71%1,000,000 (11,371) 988,629 1,016,330 27,701
05/01/29 Pasadena CA Ref Taxable
CUSIP #70227RBQ2
05/03/24 Municipal Security Aaa 2.30%4.95%330,000 (30,292) 299,708 308,349 8,641
05/15/29 Federal National Mortgage Assn
CUSIP #31359MEU3
05/16/24 Government Security AA+6.25%4.36%750,000 50,046 800,046 816,825 16,779
06/08/29 Federal Home Loan Bank
CUSIP #3130B1BC0
06/11/24 Government Security Aaa 4.63%4.49%1,000,000 4,688 1,004,688 1,031,180 26,492
06/12/29 Morgan Stanley Private Bank
National Association
06/12/24 Certificate of Deposit n/a 4.70%4.70%244,000 n/a 244,000 249,668 5,668
07/05/29 Federal Farm Credit Bank
CUSIP #3133ERKJ9
07/11/24 Government Security Aaa 4.38%4.18%1,000,000 7,085 1,007,085 1,016,470 9,385
07/17/29 BNY Mellon
National Association
07/17/24 Certificate of Deposit n/a 4.15%4.15%244,000 n/a 244,000 244,871 871
08/01/29 Federal Farm Credit Bank
CUSIP #3133ERNC1
08/14/24 Government Security Aaa 4.13%3.66%1,000,000 17,647 1,017,647 1,007,690 (9,957)
08/21/29 The Citizens Bank
Batesville, AR
08/21/24 Certificate of Deposit n/a 4.60%4.60%249,000 n/a 249,000 249,065 65
09/01/29 California State
CUSIP #13063EBP0
09/18/24 Municipal Security Aa2 5.13%3.59%500,000 29,535 529,535 520,735 (8,800)
01/31/30 US Treasury Notes
CUSIP #91282CMG3
02/21/25 Government Security Aaa 4.25%4.32%1,000,000 (2,671) 997,329 1,019,730 22,401
01/31/30 US Treasury Notes
CUSIP #91282CMG3
03/12/25 Government Security Aaa 4.25%3.97%1,000,000 11,582 1,011,582 1,019,730 8,148
03/31/30 US Treasury Notes
CUSIP #91282CGS4
04/09/25 Government Security Aaa 3.63%3.86%1,000,000 (10,172) 989,828 992,850 3,022
04/30/30 US Treasury Notes
CUSIP #91282CGZ8
05/07/25 Government Security Aaa 3.50%3.91%1,000,000 (17,925) 982,075 987,150 5,075
74,139,440 (413,593) 73,725,847 73,768,003 42,156
10/14/25 | Item D2 | Attachment 1
Total Funds Managed by the City
Page 22 of 116
10/14/25 | Item D2 | Attachment 1
Page 23 of 116
City of Atascadero
Investments by Type
June 30, 2025
Investment June 30, 2025
LAIF 6,210,574$
Money Market 13,609,866
Certificates of Deposit 15,681,844
Government Securities 28,767,552
Municipal Securities 8,448,754
Supranational Securities 1,007,257
Cash with Fiscal Agent 23,482 Other
73,749,329$
LAIF
8%
Money Market
19%
Certificates of Deposit
21%Government Securities
39%
Municipal Securities
11%
Supranational
Securities
1%
Cash with
Fiscal Agent
<1%
LAIF Money Market Certificates of Deposit Government Securities
Municipal Securities Supranational Securities Cash with Fiscal Agent
10/14/25 | Item D2 | Attachment 1
Page 24 of 116
City of Atascadero
Investments by Maturity *
June 30, 2025
Investment June 30, 2025
On Demand 19,820,440$
Within One Month 605,011
One Month to One Year 8,800,833
One to Five Years 44,499,563
73,725,847$
* Cash with fiscal agent is not included in the totals for this graph because the amounts are restricted based on
bond covenants, and therefore, the City doesn't retain the option to liquefy these funds at will.
On Demand
27%
Within One Month
1%
One Month to One Year
12%
One to Five Years
60%
On Demand Within One Month One Month to One Year One to Five Years
10/14/25 | Item D2 | Attachment 1
Page 25 of 116
City of Atascadero
Investments by Custodial Agent
June 30, 2025
Custodial Agent June 30, 2025
State of California 6,210,574$
US Bank 53,905,407
Bank of New York 23,482
Mechanics Money Market 13,609,866 Other
73,749,329$
State of California
8%
US Bank
73%
Bank of New York
1%Mechanics Money
Market
18%
State of California US Bank Bank of New York Mechanics Money Market
10/14/25 | Item D2 | Attachment 1
Page 26 of 116
City of Atascadero
Investment Yield vs. 2-Year Treasury Yield
For the Quarter Ended June 30, 2025
City Yield
2-Yr Treasury
Weighted
Portfolio Yield
June 2023 2.68%3.17%
September 2023 2.95%3.20%
December 2023 3.12%3.10%
March 2024 3.23%3.20%
June 2024 3.68%3.67%
September 2024 3.53%3.39%
December 2024 3.52%3.48%
March 2025 3.69%3.67%
June 2025 3.76%3.73%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
City Yield 2-Yr Treasury Weighted Portfolio Yield
10/14/25 | Item D2 | Attachment 1
Page 27 of 116
CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item D3
Department: Public Works
Date: 10/14/25
Placement: Consent
TO: JAMES R. LEWIS, CITY MANAGER
FROM: NICK DE BAR, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
PREPARED BY: RYAN HAYES, DEPUTY DIRECTOR OF PUBLIC WORKS
SUBJECT: Declaration of Intent and Setting a Public Hearing to Vacate a Portion of
Public Right-of-Way at 11285 San Marcos Road
RECOMMENDATION:
Council adopt Draft Resolution declaring its intention to order the vacation of a portion of San
Marcos Road right-of-way and setting a public hearing on the proposed street vacation at the
regularly scheduled City Council meeting on November 12, 2025.
DISCUSSION:
BACKGROUND
As a result of the January 2023 storms, a FHWA-funded soldier pile retaining wall and roadway
reconstruction project was completed in late 2023. City staff have been in discussions with the
owners of the adjacent 11285 San Marcos Road property to adjust the right-of-way to reflect the
roadway alignment and allow for future access to and maintenance of the retaining wall. The
right-of-way adjustment includes abandonment of approximately 1,265 square feet of existing
unused right-of-way to the property owner, in exchange for dedication of an approximately 1,190
square foot permanent access easement. A vicinity map of this site is shown below.
Page 28 of 116
10/14/25 | Item D3 | Staff Report
ANALYSIS
Pursuant to the Streets and Highways Code Sections 8320 et sq., the City may initiate proceedings
to vacate excess right-of-way through a resolution of the City Council declaring its intention to
order to vacation of the right-of-way, establishment of a public hearing on the proposed street
vacation, and a proper noticing of the public hearing.
Working with the owners of 11285 San Marcos Road, staff has identified a portion of right-of-way
that will not restrict public access or future improvements if relinquished, and a portion of the
private parcel over which a permanent easement will be established. These approximate areas
are shown in the exhibit below.
Page 29 of 116
10/14/25 | Item D3 | Staff Report
The portion of San Marcos Road to be vacated would become part of the adjacent property of
11285 San Marcos Road. In exchange, the City would receive an easement from 11285 San
Marcos Road that is needed to gain access to the downgradient side (opposite from street) of the
soldier pile wall for inspection and maintenance purposes. This easement will also prevent any
private grading or excavating work adjacent to the wall that could undermine the wall. There is
sufficient right-of-way width at the proposed vacation, and no public utilities exist or need this
excess right-of-way. Furthermore, the Fire Department has no objection to the right-of-way
abandonment and does not consider this right-of-way to be necessary for current or future
evacuation needs.
ALTERNATIVES TO THE STAFF RECOMMENDATION:
Council may decide not to vacate this portion of San Marcos Road right-of-way, but it is possible
that the adjacent property owner may not grant the City the easement adjacent to the soldier
pile wall. Staff does not recommend this alternative because the right-of-way considered for
vacation is excess and not needed for existing roadway improvements and public utilities, and in
doing so will allow the City to obtain the easement for inspecting and maintaining the soldier pile
wall.
FISCAL IMPACT:
None
REVIEWED BY OTHERS:
This item has been reviewed by the City Attorney and City Clerk.
REVIEWED AND APPROVED FOR COUNCIL AGENDA
James R. Lewis, City Manager
ATTACHMENT:
1. Draft Resolution
Page 30 of 116
10/14/25 | Item D3 | Attachment 1
DRAFT RESOLUTION
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, DECLARING ITS INTENTION TO
ORDER THE VACATION OF A PORTION OF PUBLIC RIGHT-OF-WAY
AT 11285 SAN MARCOS ROAD
WHEREAS, the subdivision map recorded in San Luis Obispo County Book of Maps
3AC, Page 86 dedicated San Marcos Road as a 40-foot-wide public right-of-way, which right-of-
way was assumed by the City of Atascadero upon incorporation; and
WHEREAS, since the dedication of San Marcos Road, geologic conditions have
necessitated a realignment of a portion of the roadway; and
WHEREAS, to complete the realignment, the City will obtain an easement for public
right-of-way from a private property owner comprising approximately 1,190 square feet in
exchange for the City’s vacation of a portion of its right-of-way comprising approximately 1,265
square feet; and
WHEREAS, pursuant to Streets and Highways Code Sections 8320 et sq., the City of
Atascadero may initiate proceedings to vacate excess right-of-way; and
WHEREAS, the proposed vacated area is legally described in Exhibit A and is shown on
Exhibit B, attached hereto and incorporated herein by reference, and is on file in the Department
of Public Works; and
WHEREAS, City staff have confirmed no City utility facilities currently exist within the
portion of San Marcos Road to be vacated; and
WHEREAS, the vacation proceeding for said proposed vacated area is and will be
conducted pursuant to the requirements of Streets and Highways Code Sections 8320, et seq.; and
WHEREAS, the proposed vacation is categorically exempt from environmental review
under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3)
of the CEQA Guidelines as it can be seen with certainty that there is no possibility that the activity
in question may have a significant effect on the environment; and
WHEREAS, pursuant to Government Code Section 65402(a), the vacation of the proposed
vacated area is required to facilitate a realignment of San Marcos Road that is minor in nature, and
as such, referral of the vacation to the City’s planning commission pursuant to Section 65402(a)
shall not be required, as the proposed vacation is consistent with the City’s general plan; and
WHEREAS, the area proposed for vacation is no longer needed for public right-of-way
purposes, and the vacation is in the public interest.
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of
Atascadero:
Page 31 of 116
10/14/25 | Item D3 | Attachment 1
SECTION 1. The above recitals are true and correct.
SECTION 2. The City Council hereby declares its intention to vacate the above proposed
area.
SECTION 3. The City Council sets November 12, 2025 as the date of the public hearing
on the proposed street vacation. The public hearing will be held at 6:00 p.m. or as soon thereafter as
practicable, in the City of Atascadero Council Chambers, 6500 Palma Ave., Atascadero, California
93422. All persons interested in the vacation are invited to attend and give testimony if desired.
After the close of the public hearing, the Council will consider the adoption of a resolution that
declares the portion of San Marcos Road to be unnecessary for present or prospective public street
purposes and orders the vacation. Said resolution shall provide that the vacation is subject to
recordation of a right-of-way easement in favor of the City for the approximate 1,190 square foot
area shown on Exhibit B.
SECTION 4. The City Clerk is directed to give notice of the public hearing as required by
Streets and Highways Code Section 8322.
SECTION 5. The Director of Public Works is directed to conspicuously post not less than
three notices of vacation along San Marcos Road at the location proposed to be vacated pursuant
to Streets and Highways Code Section 8323. The notices shall be posted not more than 300 feet
apart.
PASSED AND ADOPTED at a regular meeting of the City Council held on the ____ day of
_____ _, 2025.
On motion by Council Member _________ and seconded by Council Member _______,
the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF ATASCADERO
_______________ ____________________
Charles Bourbeau, Mayor
ATTEST:
___________________________________
Lara K. Christensen, City Clerk
Page 32 of 116
EXHIBIT "A"
Legal Description
A portion of San Marcos Road lying easterly of Lot 9 in Block 60, of the Atascadero
Colony, in the City of Atascadero, County of San Luis Obispo, State of California, as
shown the map recorded in Book 3AC, at Page 86 of Maps, in the Office of the
Recorder of said County, described as follows:
All that portion of said Road lying westerly of the following described line:
Commencing at a 1/2 inch rebar with the remains of a yellow plastic cap marking the
northerly terminus of that certain course in the centerline of San Marco Road shown on
the map recorded in Book 50, at Page 3 of Records of Surveys, in the Office of the
Recorder of said County, noted to be N 28˚13’11” E 98.67’ feet;
thence, along said centerline, S 28˚19’16” W 98.59 feet to 1/2 inch rebar, with the
remains of a yellow plastic cap, per said Record of Survey, said rebar marking the
intersection of said centerline with the prolongation southeasterly of the southwest line
of said Lot 9;
thence, leaving said centerline, along said prolongation of said lot line,
N 44˚50’39” W 20.90 feet to the westerly right-of-way of San Marcos Road;
thence, along said westerly right-of-way, N 28˚19’16” E 21.13 feet to the True Point of
Beginning;
thence, leaving said right-of-way, N 21˚22’23” E 64.23 feet to the beginning of a curve
concave westerly, having a radius of 434.00 feet;
thence, along said curve, through a central angle of 15˚36’24” a distance of 118.22 feet;
thence N 5˚45’59 E 19.44 feet to the beginning of a curve concave easterly, having a
radius of 166.00 feet;
thence, along said curve, through a central angle of 35˚44’24” a distance of 103.55 feet;
thence N 41˚30’23” E 4.74 feet to the prolongation southeasterly of the northeast line of
said Lot 9, distant thereon N 59˚49’27” W 12.98 feet from a 1/2 inch rebar with the
remains of a yellow plastic cap per said Record of Survey.
End of description.
___________________
JoAnn B. Head
10/14/25 | Item D3 | Attachment 1| Exhibit A
Page 33 of 116
10/14/25 | Item D3 | Attachment 1| Exhibit B
Page 34 of 116
CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item D4
Department: Public Works
Date: 10/14/25
Placement: Consent
TO: JAMES R. LEWIS, CITY MANAGER
FROM: NICK DE BAR, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
PREPARED BY: RYAN HAYES, DEPUTY PUBLIC WORKS DIRECTOR
SUBJECT: Wastewater Inflow and Infiltration Study Award
RECOMMENDATIONS:
Council:
1. Approve a sole-source procurement of professional services for the Wastewater Inflow and
Infiltration Study due to extenuating circumstances.
2. Approve a contract amendment with Carollo for $239,700 for the Wastewater Inflow and
Infiltration Study.
DISCUSSION:
BACKGROUND
The City contracted with Carollo in 2023 for the Collection System Master Plan Update. Working closely
with City Public Works and Community Development staff, Carollo utilized anticipated land use data
from the ongoing General Plan Update to inform City buildout projections and completed the draft
Collection System Master Plan in March of 2025. The Collection System Master Plan utilizes current
wastewater flows and loads to model anticipated future wastewater flows in order to analyze the
capacity of all system components. Combining the capacity evaluation with a system condition
assessment, the Collection System Master Plan identified a 10-Year Capital Improvement Program (CIP).
During the preparation of the Collection System Master Plan, it became apparent that a significant
percentage of the wastewater flows during winter months are the result of Inflow and Infiltration (I&I).
Infiltration is defined as storm water or groundwater flows entering the sewer system through defects
in the pipelines, manholes and joints. Inflow is storm water that enters the sewer system via storm drain
cross connections (roof drains connected to the sewer, etc.) and unsealed manhole covers. State
regulations require the City to appropriately size the wastewater system to avoid system overflows,
which are most common during large storm events and are typically the result of high I&I. Decreasing
I&I in the system can have outsized impacts on minimizing CIP costs by reducing the need to upsize sewer
mains otherwise in good physical condition, and significantly lowering the volume of wastewater treated
at the Water Reclamation Facility.
ANALYSIS
Following completion of the Collection System Master Plan, City staff and Water Systems Consulting, the
City’s Water Reclamation Facility (WRF) Project program manager, determined that there are significant
Page 35 of 116
10/14/25 | Item D4 | Staff Report
potential capital cost savings through I&I mitigation. An I&I study was previously completed in
conjunction with the 2016 Collection System Master Plan update, but the scope of the study was limited
and was intended to identify larger areas of concern as opposed to specific problem spots for repair or
replacement. The I&I study currently proposed includes an initial stage of installing and monitoring flow
meters at the downstream terminus of thirteen separate sewersheds, followed by a relocation of the
meters to specific locations within the sewersheds with highest measured I&I volumes to identify specific
I&I “hotspots.” This data will then be input back into the sewer model to identify high priority CIP
projects, with a cost-benefit evaluation and updated recommended CIP list.
Pursuant to the City’s purchasing policy, contracts for professional services exceeding $100,000 must be
awarded by City Council following a Formal Request for Proposal (RFP). However, given the Collection
System Master Plan work recently done by Carollo, City staff is recommending that the I&I work scope
be awarded as a sole-source procurement of professional services through an amendment to Carollo’s
original Collection System Master Plan contract. I&I data will be most efficiently incorporated into the
model already created by Carollo and demands on staff time will be minimal. Issuing a formal RFP and
switching to another consultant would require transferring over all infrastructure data, rerunning
models, and would be a significant draw on City staff time. As a result of the additional data
requirements, research on models, etc. Another vendor would likely also be more expensive. As such,
staff believes that award of this work to Carollo would qualify for an exception to the formal RFP process
under purchasing policy section V.3.1.f..2 and 3:
The formal RFP/RFQ process may be bypassed in the following... instances:
2. When one known service provider is available, the Department Head shall prepare a report for
Council approval requesting an exemption from the formal RFP/RFQ procedures and if applicable
awarding the bid to the “sole source”.
3. When there are extenuating circumstances that would make the formal RFP/RFQ process not
the most cost-effective approach. This often relates to qualitative, artistic, or proprietary
software/technological issues. The appropriate Department Head shall prepare a report to
Council requesting an exemption from the formal bidding procedures.
Additionally, it is preferable to initiate the I&I study as soon as possible in order to collect data during
the upcoming rainy season, as well as using this information in determining capacity requirements for
the WRF Project design currently underway. By identifying and reducing I&I in the collection system, the
treatment plant design capacity can be reduced for wet weather flows, potentially saving $10+ million
dollars in construction costs. It is important to note that the majority of the costs associated with the
I&I study are due to placing, monitoring and resetting the wastewater flow meters. This work is fairly
standard in nature and it is not expected that costs would vary significantly by vendor.
City staff has reviewed the submitted fee for this work and finds it to be reasonable and fair given the
scope of work.
FISCAL IMPACT:
Awarding the contract amendment for the I&I Study will result in the expenditure of $239,700 in
budgeted wastewater enterprise funds. This project is included in the adopted FY 2025-2027 budget
and includes $250,000 in wastewater funds. There are several tasks that may not be necessary
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10/14/25 | Item D4 | Staff Report
depending upon the outcome of the original data collected, with any unused funds remaining in the
wastewater enterprise fund.
ALTERNATIVES:
The City Council may choose to direct staff to not proceed with the I&I Study or issue a formal RFP for
the work. Staff does not recommend either alternative, as the I&I Study has potential to significantly
reduce overall wastewater capital costs by identifying cost-effective mitigation projects, and the process
of preparing and issuing a formal RFP will delay the work and may result in missing the winter 2025
monitoring window.
REVIEWED BY OTHERS:
This item has been reviewed by the Administrative Services Director.
REVIEWED AND APPROVED FOR COUNCIL AGENDA
James R. Lewis, City Manager
Page 37 of 116
CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item G1
Department: Public Works
Date: 10/14/25
Placement: Public Hearing
TO: JAMES R. LEWIS, CITY MANAGER
FROM: NICK DE BAR, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
PREPARED BY: RYAN HAYES, DEPUTY DIRECTOR OF PUBLIC WORKS
SUBJECT: Adopting Wastewater Capacity Charges
RECOMMENDATION:
Council adopt Draft Resolution setting Sewer Capacity Charges for the Wastewater Division.
DISCUSSION:
BACKGROUND
The Atascadero Municipal Code provides a mechanism to adjust sewer capacity charges for new
connections to the wastewater system, or existing connections where changes from development or
occupancy require increased capacity (e.g. commercial unit changing from office to restaurant capacity).
Wastewater capacity charges were last established in 2019, with annual adjustments since that time
based upon the increase in the published Engineering News Record Construction Cost Index (ENR-CCI).
ANALYSIS
California Government Code (CGC) Section 66013 codified the term “capacity charge” to be applied to
new connections for capacity charges that are one-time charges paid by new customers as a capital
contribution for capacity in the wastewater system. These charges are similar to development impact
fees and can be assessed to existing wastewater customers requiring increased capacity to serve changes
in their development or use occupancy. The proceeds from capacity charges are a financing source for
future wastewater facilities. Capacity charges allow new connections to “pay their fair share” of past
capital costs that provide capacity in the wastewater system and to finance future upgrades and
construction is a proportionate benefit to the person or property being charged. Another similar analogy
is the meter fee charged by Atascadero Mutual Water Company for new or upsized connections.
Similar to the wastewater service charge, sewer capacity charges are based upon Equivalent Dwelling
Units (EDUs), where one EDU is the basis for a single-family residence (SFR) service charge, based upon
an estimated average daily flow of 240 gallons of wastewater and wastewater strength. Other
connection users are assigned a multiple or fraction of an EDU based upon expected peak daily flow and
strength of wastewater compared to that of SFR. This fixed rate methodology is used since the City is
not the water supplier and does not have access to individual customer water consumption data.
The Council reviewed the 2025 Wastewater Rate Study at a regular meeting on April 22, 2025.
Wastewater rates are comprised of sewer service charges and sewer capacity charges. The Rate Study
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provided a determination of proposed wastewater rates to support the $150+ million worth of
wastewater capital costs planned in the next ten years or so.
The Rate Study recommends a capacity charge of $8,856 per Single Family Residence (SFR), which
equates to one Equivalent Dwelling Unit (EDU). This amount was determined by using industry standard
methods and is based on the current value of the City’s existing wastewater facilities and includes the
cost of future replacement facilities and future facilities that serve new development and connections.
Table 14 from the Rate Study is included below and details the capacity charge for a SFR (EDU).
Using the SFR Sewer Capacity Charge of $8,856 (rounded down) as the base value per EDU, the schedule
of sewer capacity charges for other customer classifications can be determined. A comparison of the
current and proposed sewer capacity charges can be found in Exhibit A to the Draft Resolution.
The proposed sewer capacity charges provide a reasonable and equitable cost allocation to the owners
of new connections to the wastewater system and existing customers that require increased capacity
due to changes from use or occupancy. Furthermore, the proposed sewer capacity charges provide a
proportionate benefit to the person or property being charged for capacity in the wastewater system.
The proposed capacity charge increase for the City of Atascadero was compared to neighboring
communities in San Luis Obispo County as of July 2025. The proposed capacity charge remains very
competitive relative to the other communities within San Luis Obispo County, as shown below.
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The Rate Study also recommends an annual adjustment to the capacity charge based upon the
Engineering News Record Construction Cost Index (ENR-CCI). ENR publishes both a Construction Cost
Index (CCI) and a Building Cost Index (BCI) that are widely used in the construction industry. The CCI is
best used where labor costs are a high proportion of total costs, while the BCI is more applicable for
structures. Section 3 of the Draft Resolution discusses the procedure and formula to calculate the annual
adjusted capacity charge using the ENR-CCI publications.
The City Manager’s Task Force on Wastewater recently held a series of four meetings to learn about the
wastewater system and challenges with new regulatory mandates, capacity issues, financial impacts, and
funding challenges for the municipal wastewater treatment and collection systems. The Task Force
recommended that the City should move forward with the sewer capacity charge increase and further
adopted as one of its findings that new development should pay its fair share and not impact existing
customers. Increasing this fee is consistent with this direction. Over the next one and one-half years,
the City is planning to complete a Customer User Classification Study, perform preliminary engineering
design for the WWPT Secondary Improvements Project, understand if regional partnerships are possible
(ASH, Templeton CSD), and perform a wastewater rate study that incorporates information from these
efforts including updated user classification schedules and cost estimates. The new wastewater rate
study (estimated completion March 2027) will include new analysis for setting sewer capacity and service
charge rates.
Regarding the City Manager’s Task Force on Wastewater, a more detailed report on their proceedings
and findings will be given to the City Council in November 2025.
Page 40 of 116
10/14/25 | Item G1 | Staff Report
FISCAL IMPACT:
Adopting the Draft Resolution will have a significant positive fiscal impact on the Wastewater Fund. The
Wastewater Rate Study assumes 35 new EDU connections annually, which equates to an increase of
roughly $310,000 in additional capacity charges collected each year if the proposed sewer capacity rates
are implemented. This additional revenue is restricted and can only be used for upgrades and expansion
of wastewater facilities.
It is important to note that the City is currently in negotiations with Atascadero State Hospital (ASH) for
ASH to connect to the City’s Wastewater Treatment Facility. Although not yet secured, if an agreement
is reached, one element of the compensation will be for ASH to pay the sewer capacity charges in effect
at that time.
ALTERNATIVES:
The City Council could choose not to set new Sewer Capacity Charges for the Wastewater Division. Staff
does not recommend this alternative because of the significant impact in recuperating costs for past
wastewater capital projects and future-needed upgrades. The proceeds from capacity charges are a
critical financing source to upgrade wastewater facilities in order to meet existing and future system
capacity needs and comply with new State regulations.
REVIEWED BY OTHERS:
This item has been reviewed by the Administrative Services Director.
REVIEWED AND APPROVED FOR COUNCIL AGENDA
James R. Lewis, City Manager
ATTACHMENT(S):
1. Draft Resolution
Page 41 of 116
10/14/25 | Item G1 | Attachment 1
DRAFT RESOLUTION
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, SETTING SEWER CAPACITY
CHARGES FOR THE WASTEWATER DIVISION
WHEREAS, the City of Atascadero owns and operates a municipal wastewater collection
and treatment system for the safe and reliable disposal of wastewater in accordance with applicable
regulations; and
WHEREAS, the City of Atascadero levies and imposes one-time Sewer Capacity Charges
(Sewer Connection Charges) to new customers connecting to the wastewater system and existing
customers that require increased capacity due to changes from development, use or occupancy,
as a capital contribution for new wastewater facilities to be acquired or constructed in the future
that are of proportionate benefit to the person or property being charged for capacity in the
wastewater system; and
WHEREAS, the current sewer connection charges associated with capacity charges were
last adjusted in 2019, with subsequent annual increases based upon construction cost inflation; and
WHEREAS, a Wastewater Rate Study (“Rate Study”), dated April 2025, was prepared by
Tuckfield & Associates for the City of Atascadero’s Wastewater Division that recommends
increases to wastewater rates (sewer service fees and sewer capacity charges) to meet the on-going
operational needs of the enterprise and needed funding for existing and future capital infrastructure
requirements; and
WHEREAS, the Atascadero City Council reviewed the Wastewater Rate Study at their
regular meeting on April 22, 2025, and set a Public Hearing for their regular meeting on
June 10, 2025, at which time the Council adopted Resolution No. 2025-034 establishing revised
Sewer Service Charges for the Wastewater Division; and
WHEREAS, the Rate Study evaluated Sewer Capacity Charges using industry standard
methods and are based on the current value of the City’s existing wastewater facilities and include
the cost of future replacement facilities and future facilities that serve new development and
connections; and
WHEREAS, the Rate Study developed the Proposed Sewer Capacity Charges using a
combination methodology; a combination of the buy-in and incremental costs whereby the charges
are based on the value of existing capacity and value of Capital Improvement Program replacement
and growth-related projects; and
WHEREAS, the Proposed Sewer Capacity Charges set forth in this Resolution provide a
reasonable and equitable cost allocation to the owners of new connections to the wastewater
system and existing customers that require increased capacity due to changes from development,
use, or occupancy, and provide a proportionate benefit to the person or property being charged for
capacity in the wastewater system; and
WHEREAS, the Atascadero City Council conducted a duly noticed public hearing for
setting Proposed Sewer Capacity Charges on October 14, 2025, to receive public comment and to
consider proposed increases in capacity charges.
Page 42 of 116
10/14/25 | Item G1 | Attachment 1
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:
SECTION 1. Recitals. The above recitals are true and correct and are hereby incorporated
by reference.
SECTION 2. Sewer Capacity Charges Established. The Proposed Sewer Capacity
Charges as set forth in Exhibit A, attached hereto and incorporated herein by this reference, are
hereby approved and shall become effective as specified in Section 6 below in accordance with
California Government Code Section 66016.
SECTION 3. Sewer Capacity Charges Adjusted Annually. The Proposed Sewer Capacity
Charges as set forth in Exhibit A shall be adjusted annually and become effective on July 1 each
year by the percentage change in the Engineering News Record Construction Cost Index (ENR-
CCI) from the first ENR publication in April of the previous year to the first ENR publication in
April of the current calendar year.
Adjusted Capacity Charge = (Current Charge) x (ENR-CCI from April current year)
(ENR-CCI from April prior year)
SECTION 4. Previous resolutions and ordinances establishing Sewer Capacity Charges
(Sewer Connection Charges) are superseded upon the effective date of the Sewer Capacity Charges
as established in Section 2 above and are hereby rescinded and rendered moot.
SECTION 5. Constitutionality. If any portion of this Resolution is declared invalid or
unconstitutional then it is the intention of the City Council to have passed the entire Resolution
and all its component parts, and all other sections of this Resolution shall remain in full force and
effect.
SECTION 6. Effective Date. This Resolution shall become effective immediately upon
adoption, but the Sewer Capacity Charges shall become effective 60 calendar days from the date
of adoption of this Resolution, on December 14, 2025, and shall remain in effect, until revised by
the City Council.
PASSED AND ADOPTED at a regular meeting of the City Council held on the __day of
____, 2025.
On motion by Council Member ____ and seconded by Council Member _____, the foregoing
Resolution is hereby adopted in its entirety on the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF ATASCADERO
________________________________
Charles Bourbeau, Mayor
ATTEST:
Lara K. Christensen, City Clerk
Page 43 of 116
10/14/25 | Item G1 | Attachment 1| Exhibit A
EXHIBIT A
Current1 Proposed2
Residential
Single Family 1.00 Dwelling Unit 6,769.00$ 8,856.00$
Apartment, Condo 0.75 Dwelling Unit 5,076.75$ 6,642.00$
Mobile Home 0.60 Spaces 4,061.40$ 5,313.60$
Senior Apartment Unit 0.35 Dwelling Unit 2,369.15$ 3,099.60$
Non-Residential -$
Bars 1.50 Unit 10,153.50$ 13,284.00$
Carwash 7.50 Unit 50,767.50$ 66,420.00$
Churches/Meeting Halls
< 150 seats 1.33 Seats 9,002.77$ 11,778.48$
150 to 250 seats 2.66 Seats 18,005.54$ 23,556.96$
> 250 seats 3.00 Seats 20,307.00$ 26,568.00$
Commercial Unit 1.00 Unit 6,769.00$ 8,856.00$
Financial Institutions 2.00 Unit 13,538.00$ 17,712.00$
Funeral Home 9.00 Unit 60,921.00$ 79,704.00$
Gas Station 2.00 Unit 13,538.00$ 17,712.00$
Grocery Store > 10,000 sq. ft.8.00 1,000 sq. ft.54,152.00$ 70,848.00$
Gymnasium 10.00 Unit 67,690.00$ 88,560.00$
Laundry 9.00 Unit 60,921.00$ 79,704.00$
Motel (per room)0.33 Room 2,233.77$ 2,922.48$
Office Unit 1.00 Unit 6,769.00$ 8,856.00$
Rest Home (per bed)0.35 Bed 2,369.15$ 3,099.60$
Restaurants
< 40 seats 4.00 Seats 27,076.00$ 35,424.00$
40 to 60 seats 6.00 Seats 40,614.00$ 53,136.00$
61 to 100 seats 8.00 Seats 54,152.00$ 70,848.00$
> 100 seats 10.00 Seats 67,690.00$ 88,560.00$
Schools (per student on Mar. 1)0.05 Student 338.45$ 442.80$
Theater 4.00 Unit 27,076.00$ 35,424.00$
Veterinarians 3.00 Unit 20,307.00$ 26,568.00$
Unlisted Uses3 (EDU Unit Rate)1.00 Unit 6,769.00$ 8,856.00$
calculating fixture units from the California Plumbing Code or other methods.
4 EDU = Equivalent Dwelling Unit is the average daily flow of wastewater discharge from a single family
(240 gallons per day, max. flow).
1 Effective July 1, 2025
2 Effective December 14, 2025
3 Unlisted uses or are determined by means deemed appropriate by the City Engineeruse, which may include
CITY OF ATASCADERO
CURRENT AND PROPOSED SEWER CAPACITY CHARGES
Classification Description
EDU4
Multiple
Unit of
Measure
Capacity Charge
Page 44 of 116
CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item H1
Department: Community
Development
Date: 10 /14/2025
Placement: Management
Report
TO: JAMES R. LEWIS, CITY MANAGER
FROM: PHIL DUNSMORE, COMMUNITY DEVELOPMENT DIRECTOR
PREPARED BY: PHIL DUNSMORE, COMMUNITY DEVELOPMENT DIRECTOR
SUBJECT: Cannabis Land Use Update Discussion
RECOMMENDATION:
Council receive an overview of the Cannabis Zoning Code, an update on the retail industry, and
provide staff direction on consideration of adding a retail land use to the list of conditionally
allowed uses in Atascadero.
DISCUSSION:
BACKGROUND
During the City Council Goal Setting meeting on Saturday, February 22, 2025, City Council asked
staff to bring forward a discussion regarding the potential for retail cannabis sales within
appropriate commercial zones in the City. The City of Atascadero completed a comprehensive
update to the Cannabis chapter of the Zoning Code (Title 9, Chapter 17) in 2017. This was done
in response to Proposition 64 which created significant change to state law, thereby allowing
Cities to adopt policies for cannabis retail sales, manufacturing, and cultivation. In May of 2021,
the City completed a second round of zoning edits creating a comprehensive set of standards that
apply to commercial cannabis land uses, including design, operations, and security standards
(Attachment 1), however, storefront retail sales were not adopted into the allowed uses list at
that time. The updates included the adoption of a local cannabis tax. The current tax rate for
cannabis retail sales in Atascadero is 4% of gross receipts, and the maximum tax rate approved
by the voters is 6% of gross receipts. (Title 3, Chapter 18). Because the tax was approved as a
voter initiative, the tax rate cannot be increased beyond 6% without a subsequent ballot measure.
It can be changed, however, by action of the Council without a vote of the people, provided the
tax rate does not exceed 6%.
EXISTING CITY CANNABIS REGULATIONS
The existing Cannabis regulations in the City’s zoning code already provide a comprehensive
framework that addresses many of the topics associated with Cannabis land uses (retail,
manufacturing, testing, delivery, etc.). Each commercial land use is subject to a comprehensive
set of development and performance standards that are already within the City code and are
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augmented by state law. The City currently allows for two commercial land uses: testing facilities
and non-storefront delivery services. Since code adoption, neither of these land uses have
operated in Atascadero. However, there are cannabis delivery services that originate outside of
the City and make deliveries to Atascadero residents. The City collects tax from these delivery
services averaging approximately $32,000 per year.
ANALYSIS
Status of the Industry in California and the Central Coast
In California the retail cannabis industry is in a state of flux, marked by financial struggles for legal
businesses, intense competition from a thriving illicit market, and shifting tax policies. While the
legal market continues to grow in terms of production and units sold, sales revenue is declining,
leading to consolidation and business failures.
Declining sales and falling prices
Lowest quarterly sales: The first quarter of 2025 saw California's lowest quarterly legal
cannabis sales in five years, down 30% from the market's peak in early 2021 (Attachment
2).
Lower prices, not volume: Despite an increase in the number of units sold, total sales
revenue has decreased, indicating that consumers are purchasing cheaper products.
Michigan surpasses California: California's once-dominant position as the largest legal
market is being challenged. In 2024, Michigan sold more cannabis products per month
than California.
San Luis Obispo County sales are mixed: San Luis Obispo City and Grover Beach have seen
a decline in overall tax revenue year over year, while Morro Bay had its largest year so far.
o San Luis Obispo has two storefronts and averages $1 Million per year in tax
revenue.
o Grover Beach has four storefronts and averages between $1 and $1.2 Million per
year in tax revenue.
o Morro Bay has two storefronts and averages around $500,000 per year but states
that 2025 is likely to be highest year at $536,185.
The dominant illicit market
Outselling legal products: The black market for cannabis continues to outsell the legal
market by a significant margin. The March 2025 report (Attachment 3) estimated that
unlicensed cannabis sales accounted for 60% of consumption in California in 2024.
High prices for legal goods: High taxes, fees, limited availability, and compliance costs in
the legal market drive up consumer prices, making illicit products more attractive. For
example, in Los Angeles, which has a 10% tax rate, illegal shops are thriving while legal
businesses struggle to compete.
Enforcement has limited effect: While the state's Unified Cannabis Enforcement Task
Force has seized hundreds of millions in unlicensed cannabis, it only represents a small
fraction of the total illegal production.
High taxes and fees
Excise tax hike: The state excise tax increased from 15% to 19% on July 1, 2025. This was
opposed by the industry and is expected to further harm legal businesses by driving up
consumer costs. Governor Newsom expressed support for halting the tax increase and a
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recent proposal reached his desk that would repeal the tax increase, effective October 1,
2025 setting state taxes back to 15%.
High local taxes: Some of the largest retail markets in the state, such as Los Angeles and
San Jose, have local tax rates as high as 10%. San Luis Obispo has a 6% tax rate, Morro Bay
and Grover Beach are 5%.
Regulatory and market challenges
Business failures and consolidation: The challenging market conditions have led to
widespread business failures and consolidation, with thousands of licensed companies
going out of business.
Limited retail access: Many cities and counties still prohibit cannabis businesses, creating
a patchwork of access for consumers and potentially encouraging the black market.
Regulatory maze: Complex and continuously evolving regulations, along with federal
prohibition, create hurdles for business owners seeking capital, locations, and stable
operations.
The market is still resilient
Recent policy changes: The state eliminated the cultivation tax in 2022 and shifted the
excise tax collection point to retailers, an effort to simplify administration.
Support for social equity: State initiatives are aimed at lowering barriers to entry for new
business, including fee waivers and deferrals.
Some businesses succeed: Despite the overall trend, some businesses are adapting and
surviving by focusing on consolidation and competitive pricing. Some craft cannabis
dispensaries have even expanded.
Licensed market still growing: In 2024, licensed cannabis production and units sold
increased despite the decrease in overall revenue, suggesting the legal market is still
expanding in terms of volume.
Crime and Security plans
Staff interviewed planning and police department staff from Morro Bay, San Luis Obispo, and
Grover Beach. None of the Cities reported any issues with significant changes in criminal activity
due to the presence of retail storefronts. All of the Cities noted that the high level of security
required for each storefront is a good deterrent to criminal issues and is an important design
requirement. All the cities interviewed require that retailers provide and maintain a
comprehensive security plan that includes cameras, on-site security, ID checks, and secure areas
where product deliveries occur. These secure areas typically include a fenced carport or vehicle
garage that is attached to each retailer where deliveries are handled.
The City of Atascadero has already adopted a set of requirements for crime prevention in the
existing cannabis ordinance. If a retail land use is added, the Police Chief and City Attorney should
evaluate the existing code to see if additional security provisions are needed. During the
conditional use permit process, security provisions may also be added or enhanced, and each
store would need to submit a security plan to the satisfaction of the City.
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Signs and Advertising
Each of the Cities regulate commercial signage in a similar fashion with size limitations,
illumination restrictions, and restrictions on temporary signs. Atascadero already has a sign
regulation specific to cannabis (AMC 9-17.006):
Signage. On-site signage for a commercial cannabis activity that is viewable from the
exterior of the premises shall comply with all local signage laws applicable to the permitted
and licensed premises, including Chapter 9-15 of this code. Signage may not be designed
to appeal to children, or contain any false or misleading statements, or make any
misrepresentations.
Since it is assumed that any cannabis retailer would also be subject to a conditional use permit,
additional sign criteria can be added based on each potential location. As an option, the sign
criteria noted above can also be amended to provide additional restrictions to prohibit
illumination, restrict imagery, restrict freeway facing signs, or limit the size and number.
Where could a retail land use exist in Atascadero and how many retail stores?
Consistent with State law, the Atascadero Municipal Code already limits the locations of
commercial cannabis activities as follows:
AMC 9-17.006 Distance. Commercial Cannabis activities shall be prohibited within 600
feet of schools, parks, youth centers, or day care centers. All distances specified in this
section shall be measured in a straight line, without regard to intervening structures or
topography, from the nearest point of the building or structure in which the commercial
cannabis activity is, or will be located, to the nearest property line of the parcel where such
use is located. If the commercial cannabis activity is, or will be located, in a multi-unit
building, the distances shall be measured from the nearest point of the suite in which the
cannabis business is or will be located.
Based on the distance criteria, commercial cannabis land uses would be restricted to several
locations along the commercial corridor along El Camino Real. Staff has created a set of maps that
indicate where there are commercial zoned properties that are outside of the restricted areas
already established by the code (Attachment 3). Unrestricted areas include the retail district on
El Camino Real south of the Vons Shopping Center and north of Curbaril Avenue as well as other
locations on north El Camino Real. The City Council would need to determine what zoning districts
are appropriate and if any additional location limitations should apply.
What other provisions should be considered in a code update?
Community Benefit Program
Most communities require that cannabis businesses provide a community benefit program that
mitigates the potential use of cannabis in the community. These programs are typically negotiated
with each City through the Conditional Use Permit process. In the City of Atascadero, our code
already has a provision that suggests such mitigation:
9-17.008 Conditions of approval may require that a commercial cannabis activity be
subject to conditions that mitigate potential impacts of the sale of cannabis products in
the community.
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This provision can be used to ensure that a cannabis retailer funds a specific program in the City
that furthers specific activities such as youth programs, parks, or related health programs that
may have a nexus to the impact of cannabis products.
Staffing Impacts
The Police Chief is currently evaluating potential impacts to staffing based on the potential
addition of a retail land use. Retail land use is not assumed to result in substantial increases in
crime but instead results in the need for additional law enforcement collaboration and
monitoring. Additionally, the business review and processing of Use Permits along with
monitoring and annual review will also result in staffing impacts to the Planning Division. For
example, the review and monitoring of security programs, background checks for new businesses
and employees will need to mitigated through the required community benefit program or
through the introduction of a new fee for a Cannabis business License. Other Cities use such a
nexus to charge fees in excess of $80,000 for such a permit. The City of San Luis Obispo has a full
time liaison that is responsible for the handling of cannabis businesses. The overall impact and
cost of additional staff has not been determined at this time, but a full analysis can be completed,
should the City Council vote to ask staff to pursue the code update.
Selection and Location Determination Process
Some cities, such as San Luis Obispo and Morro Bay, have limitations on the number of Cannabis
retailers that may be allowed in their City. In order to vet a qualified retailer, these Cities have
ranking criteria that evaluates the retailer (Attachment 4). These rankings allow City staff to fairly
select a retailer based on specific items that are important to the City, such as community benefit,
experience, and other factors. Such a ranking is not mandated by state law and is not a critical
component of a code update, but is one option to consider should the City restrict the number of
retailers. One of the factors to consider with a ranking process, however is that it has the potential
to result in legal challenges with the City being accused of unfairly ranking one business over the
other. Such was the case in San Luis Obispo, where legal challenges to the ranking process resulted
in lawsuits.
Another way to refine the number of retail establishment would be to adopt one or more specific
overlay zones where cannabis retailers may establish. Within such a zone, the City could adopt
distance criteria between each store that may help to automatically limit the overall number of
retail outlets without having a merit or selection process. This overlay zone could be applied to
certain locations along El Camino Real within the retail zone south of the Morro Road Intersection,
or the area in the CPK zone north of downtown. This method can also more precisely control the
location of retail stores.
What tax revenue could be anticipated in Atascadero?
Staff interviewed local cities to determine current sales tax revenues (Attachment 5). San Luis
Obispo and Grover Beach are averaging roughly $1 million per year each while Morro Bay is
averaging roughly half a million dollars per year. Assuming Atascadero may be the only retailer in
the North County, revenues could be on par with Grover Beach or Morro Bay. However,
Atascadero currently has the lowest tax rate in the County at 4%, while Grover and Morro Bay are
at 5% and SLO is at 6%. Megan from Megan’s Market in SLO reports that 40% of her sales are from
the North County, with 15% of sales specifically from Atascadero. It is also likely that some
Atascadero residents are currently using delivery services, and some are shopping in Morro Bay
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or Grover Beach. Atascadero’s low tax rate may help increase sales, but may also result in overall
reduced tax revenue based on gross sales. In any case, the market is not likely to increase in our
region by the addition of retail in the North County, it will only be further diluted amongst the
participating communities.
What would be the process if Atascadero wants to allow a retail land use?
In order to amend the code to allow for retail sales, the City would need to amend title 9, Chapter
17 of the Zoning Code. The amendments would add a retail storefront land use to the list of
conditionally allowed uses, decide which districts are appropriate, and decide whether there
needs to be additional location, design, and security characteristics that are not already within
the code. Lastly, the City will need to decide (or not) on a maximum number of retail stores and
the criteria by which to select authorized retailers. Several other communities in the County,
including Morro Bay, Grover Beach, and San Luis Obispo, have similar provisions.
Specifically, the City would need (or may desire) to amend the following:
1. 9-17.003: Add a definition of retail sales
2. Table 17-1: add a retail land use
3. Delete section 9-17.006 (1) which prohibits on-site retail sales
4. 9-17.006 (3): Provide additional sign/advertising standards as desired by Council.
5. 9-17.009 add operational standards, as desired by Council.
Next Steps
If the City Council votes to direct staff to begin the preparation of a code update, City staff would
want to prepare additional public outreach similar to what was done with the Cannabis Code
update in 2021. This outreach would include social media, a potential community survey, or even
an in-person workshop. Staff would then bring draft code options back to City Council for a
preliminary review, prior to bringing a code update through the regular adoption process
(Planning Commission, City Council, second reading). This process could take place after the
adoption of the General Plan update early next year.
CONCLUSION
The Cannabis retail market continues to adapt and refine. In general, cannabis retail sales appear
to be waning due to the market factors noted in the report. There is still space for a retail market
in Atascadero. However, other Cities such as Paso Robles are beginning to evaluate options to
accommodate retail cannabis, therefore the market may be reduced as retail options expand. The
assumed “problems” with the retail industry such as crime and other factors do not appear to be
present in the local communities that surround us. There are health factors with cannabis use
that are not explored with this report, however these factors are similar with other products such
as alcohol and tobacco. The City Police Chief and Fire Chief did not have available data on medical
calls associated with cannabis use. Since cannabis is already available by delivery and available in
surrounding communities, this factor may not be expanded by the placement of a retail store.
FISCAL IMPACT:
It is expected that the sales tax revenue from the addition of one or more retail cannabis stores
in Atascadero could potentially reach $500,000 in annual tax revenue. However, some additional
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costs would be incurred due to increased staff time, monitoring of security provisions and other
details that have not yet been fully explored.
REVIEWED BY OTHERS:
This item has been reviewed by the Police Chief and Administrative Services Director.
REVIEWED AND APPROVED FOR COUNCIL AGENDA:
James R. Lewis, City Manager
ATTACHMENT(S):
1. Title 9, Chapter 17, Atascadero Cannabis regulations
2. Condition and Health of the Cannabis Industry
3. 600’ buffer maps for Atascadero retail zones
4. City of SLO Merit Criteria
5. Evaluation of SLO County Cannabis Retailers
Page 51 of 116
(a)
(b)
(c)
Title 9. Planning and Zoning
Chapter 17. CANNABIS ACTIVITIES AND REGULATIONS
§ 9-17.001. Title.
This chapter shall be known as the cannabis regulations of the City of Atascadero.
(Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
§ 9-17.002. Purpose and intent.
Purpose. It is the purpose and intent of this chapter to implement the provisions of the Medicinal
and Adult Use Cannabis Regulation and Safety Act ("MAUCRSA") and to provide access to adult-
use of cannabis for persons over the age of 21 as authorized by "Proposition 64" passed by
California voters in 2016, while imposing sensible reasonable regulations on the use of land to
protect the City's residents, neighborhoods, and businesses from disproportionately negative
impacts. As such, it is the purpose and intent of this chapter to regulate the cultivation, processing,
manufacturing, testing, sale, delivery, distribution, and transportation of medicinal and adult-use
cannabis and cannabis products in a responsible manner to protect the health, safety, and welfare
of the residents of Atascadero and to enforce rules and regulations consistent with State law.
Non-Conflicting Enactment. Nothing in this chapter is intended to authorize the possession, use or
provision of cannabis for purposes that violate State or Federal law.
Additional Provisions. The provisions of this chapter are in addition to any other permits, licenses
and approvals which may be required to conduct business in the City, and are in addition to any
permits, licenses, and approval required under State, County, or other law.
(Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
§ 9-17.003. Definitions.
For the purposes of this chapter, the following definitions shall apply:
Accessory Structure. An accessory structure is a detached structure with a "u" occupancy that is
accessory to and subordinate to the primary residential use.
Cannabis. "Cannabis" has the meaning set forth in Business and Professions Code Section 26001(f),
which includes all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis,
whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part
of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its
seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from
cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil
or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture,
or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the
sterilized seed of the plant which is incapable of germination. For the purpose of this chapter, "cannabis"
does not mean "industrial hemp" as defined by Section 11018.5 of the Health and Safety Code.
City of Atascadero, CA CANNABIS ACTIVITIES AND REGULATIONS
10/14/25 | Item H1 | Attachment 1
Page 52 of 116
Cannabis Canopy. All areas occupied by any portion of a cannabis plant, encompassing all vertical
planes (i.e., stacking of plants), whether contiguous or noncontiguous on any one site. "Cannabis
canopy" shall be measured by taking the longest length and widest width of existing plants (including all
gaps and open areas between plants) and multiplying the length and width to get square footage.
Cannabis Greenhouse. A fully enclosed permanent structure that is clad in transparent material.
Cannabis cultivation within an enclosed, non-transparent greenhouse is considered indoor cultivation.
Cannabis Hoop Structure. A readily removable plastic covered hoop structure without in-ground footings
or foundations, which are not more than 12 feet in height and do not have vertical sides that exceed four
feet in height. Cannabis hoop structures are accessory uses on residential land use categories which
shall not exceed 120 square-feet. Cannabis cultivation within hoop structures is considered outdoor
cultivation.
Cannabis Operating License. An annual cannabis operating license as may be required by the City of
Atascadero pursuant to Title 3 of this code to operate a commercial activity within the City whether the
business is located within the City or not.
Cannabis Testing Facility. A facility, entity, or site that offers or performs testing of cannabis or cannabis
products and that is both accredited by an accrediting body that is independent from all other persons
involved in the cannabis industry in the State, and registered with and licensed by the California State
Department of Public Health.
Commercial Cannabis Activity. "Commercial cannabis activity" has the meaning set forth in Business
and Professions Code Section 26001(k), which includes the cultivation, possession, manufacture,
distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale
of cannabis or cannabis products as provided in MAUCRSA (Business and Professions Code Section
26000 et seq.) and for which a State license is required. Commercial cannabis activity shall also include
the sale or distribution of cannabis and/or cannabis products, in exchange for compensation in any
form, for medicinal purposes under Health and Safety Code Sections 11362.5 and 11362.7 et seq.
Cultivation. "Cultivation" has the meaning set forth in Business and Professions Code Section 26001(l),
which includes any activity involving the planting, growing, harvesting, drying, curing, grading, or
trimming of cannabis.
Day Care Center. "Day care center" has the same meaning as Health and Safety Code Section
1596.76, which means any child day care facility other than a family day care home, and includes infant
centers, preschools, extended day care facilities, and school-age child care centers.
Fully Enclosed Structure. A fully enclosed space within a building or separate structure that complies
with the California Building Code (CBC), as adopted by the City of Atascadero, or if exempt from the
permit requirements of the CBC, that has a complete roof, foundation, slab, or equivalent base to which
the floor is secured by bolts or similar attachments, and nontransparent walls on all sides.
Indoor Cultivation. Cultivation, as defined in subsection (i), of this section, within a fully enclosed
structure, as defined in subsection (k) of this section.
Outdoor Cultivation. Any location within the City of Atascadero that is not within a fully enclosed
structure, or cannabis green house, as defined in subsection (d) of this section.
Personal Cultivation. Cultivation of cannabis at a private residence, as defined by subsection (o) of this
section, for noncommercial cannabis activities, which is defined in subsection (h).
Private Residence. A house, apartment unit, mobile unit, or other similar dwelling unit that is legally
permitted within the City of Atascadero, and is considered a residential occupancy type in the California
Building Code, as adopted by the City of Atascadero.
City of Atascadero, CA CANNABIS ACTIVITIES AND REGULATIONS
10/14/25 | Item H1 | Attachment 1
Page 53 of 116
(a)
(b)
(1)
(2)
(c)
(1)
(2)
(3)
Retail Nonstorefront Facility. A "retail nonstorefront facility" is a commercial cannabis facility that
operates out of a State and City licensed commercial business location which sells cannabis goods to
customers exclusively through delivery with no on-site customer services of any kind.
School. A private or public educational facility providing instruction in kindergarten or grades one
through 12.
State Cannabis Laws. "State Cannabis Laws" means and include California Health and Safety Code
Sections 11362.1 through 11362.45; California Health and Safety Code Section 11362.5
(Compassionate Use Act of 1996); California Health and Safety Code Sections 11362.7 to 11362.83
(Medical Marijuana Program Act); California Health and Safety Code Sections 26000 through 26211
(Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA")); California Health and
Safety Code Sections 26220 through 26231.2; the California Attorney General's Guidelines for the
Security and Non-Diversion of Marijuana Grown for Medical Use issued in August, 2008, as such
guidelines may be revised from time to time by action of the Attorney General; California Labor Code
Section 147.5; California Revenue and Taxation Code Sections 31020 and 34010 through 34021.5;
California Fish and Game Code Section 12029; California Water Code Section 13276; all State
regulations adopted pursuant to MAUCRSA; and all other applicable laws of the State of California.
Youth Center. "Youth center" has the same meaning as Health and Safety Code Section 11353.1, which
includes any public or private facility that is primarily used to host recreational or social activities for
minors, including, but not limited to, private youth membership organizations or clubs, social service
teenage club facilities, video arcades, or similar amusement park facilities.
(Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
§ 9-17.004. Personal cannabis cultivation.
The following regulations pertain to the personal cultivation of cannabis.
All cannabis cultivation is prohibited within the City except that no more than six living cannabis
plants may be planted, cultivated, harvested, dried, or processed within a single private residence,
or upon the grounds of that private residence, at one time. In no instance may personal cultivation
occur on vacant property.
Indoor Cultivation Regulations. Indoor cultivation on residential properties is subject to the following
regulations:
Indoor cannabis cultivation shall only occur inside a private residence or an accessory
structure to a private residence that is fully enclosed and secured against unauthorized entry.
Sleeping Rooms within Residential Occupancies. Indoor cultivation may not occur inside
rooms designed for sleeping. Sleeping rooms are defined by the California Building Code for
residential occupancies.
Outdoor Cultivation. Outdoor cultivation on residential properties is subject to the following
regulations:
Visibility. Outdoor cannabis cultivation shall not be visible from public rights-of-way or
neighboring properties.
Screening. Outdoor cannabis cultivation must be completely screened with permanent fencing
and/or landscaping. Fencing must be compatible with the neighborhood and be constructed of
wood pickets, block, or other typical fencing materials.
Prohibited Fence Types. Electrical fencing, razor wire fencing, chain link fencing, barbwire,
plywood, and other unfinished materials. Shade cloth, plastic, plywood, OSB and other
temporary screening materials shall not be allowed.
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(4)
(d)
(1)
(2)
(3)
(e)
(1)
(2)
(f)
(g)
(h)
(i)
(1)
(2)
Fencing Height. Fencing for screening of outdoor cannabis cultivation must not exceed seven
feet in height, measured from natural grade. Additional plastic or other materials attached,
suspended, or supported beyond the seven foot height limitation shall be prohibited.
Setbacks. Personal cannabis cultivation shall be subject to the following setback requirements:
Property line. Cannabis greenhouses, cannabis hoop-structures, and all outdoor cannabis
cultivation must be located 15 feet or more from the edge of property lines.
Distance from Adjacent Residences. Cannabis greenhouses, cannabis hoop-structures, and all
outdoor cannabis cultivation must be located 25 feet or more from the nearest adjacent
residence.
Front Setback. No cannabis cultivation may occur within a designated front setback as defined
in Section 9-4.106 of this title.
Total Coverage of Personal Cannabis Cultivation.
Indoor Cannabis Cultivation. Indoor cannabis cultivation shall not take up more than 120
square feet of indoor residential space.
Outdoor Cannabis Cultivation. Outdoor cannabis cultivation shall not take up more than 120
square feet of cannabis canopy coverage.
Property Owner Consent. Where a private residence is not occupied or inhabited by the owner of
the residence, the owner of the property must provide written consent expressly allowing cannabis
cultivation to occur at said private residence.
Applicability of Adopted Building Codes. All personal cannabis cultivation at a private residence
shall comply with applicable Building Code requirements set forth in the Atascadero Municipal Code
Title 8.
Use of Solvents. There shall be no use of gas products (CO2, butane, propane, natural gas, etc.)
on a property for purposes of cannabis cultivation.
Waste Disposal. The following regulations apply to the disposal of cannabis waste on residential
property:
Cannabis and cannabis infused products must be disposed in a secure waste receptacle
located on the residential property.
Cannabis plants and products must be rendered unusable and unrecognizable by grinding and
incorporating cannabis waste with any non-consumable solid waste with a resulting mixture of
at least 50% non-cannabis waste.
(Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
§ 9-17.005. Commercial cannabis activities.
All commercial cannabis activities are prohibited unless specifically allowed in this Table 17-1. It is
unlawful for any person to commence, operate, engage in, to conduct, or carry on (or to permit to be
commenced, operated, engaged in, conducted or carried on) in or upon any property located within the
City, a commercial cannabis activity unless that person does so in strict compliance with State Cannabis
Laws, this section, and all applicable Municipal Code provisions.
Business License Tax Certificate and Payment of Cannabis Business Tax Required. No person shall
commence, operate, engage in, conduct, or carry on a commercial cannabis activity, whether doing so
from a fixed location in the City or coming into the City from an outside location to engage in such
activities, without obtaining and continuously maintaining a business license tax certificate pursuant to
Title 3, Chapter 18 of this code (Cannabis Business Taxes) and remitting timely payments of applicable
taxes pursuant to Title 3, Chapter18 of this code.
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(a)
(a)
(1)
(2)
(3)
(b)
(1)
(2)
Table 17-1 identifies the uses of commercial cannabis activities that are permitted in non-residential
districts, and the planning permit required to establish each use, in compliance with Chapters 9-1
and 9-2 of this code. All other commercial cannabis uses not otherwise lists in Table 17-1 shall be
prohibited
Table 17-1 – Commercial Cannabis Use Table
Allowed Land Uses
and Permit
Requirements A
CUP
AUP
(blank)
Allowed Use, Zoning Clearance Required
Conditional Use Permit Required
Administrative Use Permit Required
Not Permitted
Non-Residential
Zones
Use
Permitted Uses By Zones
CN CP CR CS CT CPK DC DO IP I
Commercial Cannabis Activity
Testing Facility CUP CUP AUP AUP AUP AUP
Retail Non-storefront
Facility
CUP CUP CUP CUP
(Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
§ 9-17.006. Commercial cannabis activities development
standards.
The following are development standards for permitted commercial cannabis activities:
On-Site Sales. Retail or wholesale sales to the public are prohibited.
Distance. Commercial Cannabis activities shall be prohibited within 600 feet of schools, parks,
youth centers, or day care centers. All distances specified in this section shall be measured in
a straight line, without regard to intervening structures or topography, from the nearest point of
the building or structure in which the commercial cannabis activity is, or will be located, to the
nearest property line of the parcel where such use is located. If the commercial cannabis
activity is, or will be located, in a multi-unit building, the distances shall be measured from the
nearest point of the suite in which the cannabis business is or will be located.
Signage. On-site signage for a commercial cannabis activity that is viewable from the exterior
of the premises shall comply with all local signage laws applicable to the permitted and
licensed premises, including Chapter 9-15 of this code. Signage may not be designed to
appeal to children, or contain any false or misleading statements, or make any
misrepresentations.
Cannabis Deliveries. The following standards apply to licensed, permitted retail non-storefront
facilities:
Deliveries within Incorporated City Limits. State-licensed retail non-storefront facilities may
deliver cannabis and cannabis products to individuals located at private residences within the
City, provided that such deliveries are in strict compliance with State cannabis laws and the
Municipal Code and said retailer has obtained a business license tax certificate, is paying the
applicable business license tax under Municipal Code Chapter 3-5, and is paying the
applicable cannabis business tax under Title 3 Chapter 18 of this title (Cannabis Business Tax).
All other deliveries of cannabis and/or cannabis products are prohibited.
Vehicle Advertising. Vehicles used in the delivery process must be unmarked without any
designation or logo that identifies the vehicle as a cannabis delivery vehicle.
(Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
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(a)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
§ 9-17.007. Commercial cannabis application and procedures.
Application Requirements. Any person applying for an AUP or CUP for a licensed, permitted
commercial cannabis activity, as allowed under this chapter, must submit the following information
with their application:
The name of the proposed commercial cannabis activity including, if applicable, the name on
file with the California Secretary of State and any fictitious business names and/or DBAs.
The location of the proposed commercial cannabis activity (must comply with the zoning and
location restrictions set forth above).
The names, addresses, and contact information for each owner of the proposed commercial
cannabis activity.
If the proposed commercial cannabis activity is incorporated, the names, titles, addresses, and
contact information of each corporate officer, the name, address, and contact information of the
agent for service of process, a certified copy of the articles of incorporation, and copy of the
bylaws.
If the proposed commercial cannabis activity is a partnership, the names, addresses, and
contact information for each partner and the agent for service of process.
The name and contact information for each manager of a proposed commercial cannabis
business, establishment, or facility. If such information is not available at the time the
application is submitted, the proposed commercial cannabis business, establishment, or facility
shall submit such information to the Community Development Department as soon as it
becomes available.
For each owner, corporate officer, partner, manager, employee, or volunteer, a criminal history
("LiveScan") prepared not more than two weeks prior to the date of submitting the application
demonstrating that there are no pending charges or convictions for any crime (including,
without limitation, theft, fraud, deceit, or assault) within the previous 10 years, and that the
subject is not currently on parole or probation for the sale, possession for sale, manufacture,
transportation, cultivation, or distribution of a controlled substance. For each owner, corporate
officer, partner, manager, employee, or volunteer who becomes part of a commercial cannabis
facility after the required permit is issued, the commercial cannabis facility must submit the
required criminal history to the Community Development Department within two weeks of the
new owner, corporate officer, partner, manager, employee, or volunteer joining the operation.
A site plan and operations plan that demonstrate how the proposed commercial cannabis
activity has already complied or will comply with the requirements of this chapter.
A copy of all required permits and certificates under Title 8 (Buildings Code) of this code or an
acknowledgment that the proposed commercial cannabis activity will obtain all required permits
and certificates under Title 8 prior to its opening, establishment, operation, and/or
commencement.
The name, address, and contact information for the owner of the property on which the
proposed commercial cannabis activity will be located.
An agreement signed by the owner of the property on which the proposed commercial
cannabis activity is located consenting to use of the property for a commercial cannabis activity
and agreeing to indemnify, defend (with an attorney selected by the City), and hold harmless
The City of Atascadero from any claims, damages, legal or enforcement actions arising from
the use of the property for a commercial cannabis activity.
Any supplemental information requested by the Community Development Director or designee
to establish compliance with the requirements of this chapter.
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(a)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(b)
(1)
(Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
§ 9-17.008. Commercial cannabis application approval or denial
of entitlement.
Criteria for Issuance or Denial of Permit. In addition to the criteria for land use permits set forth in
this title, the Planning Commission, or the City Council on appeal, shall consider the following
criteria in determining whether to grant or deny a land use permit for a commercial cannabis
activity:
That the proposed location of the commercial cannabis activity is not identified by the City
Chief of Police, or designee, as an area of increased or high crime activity.
For those applicants who have operated other businesses within the City, that there have not
been significant numbers of calls for police service, crimes, or arrests in the area of the
applicant's other business.
That the location is not prohibited by the provisions of this section or any local or State law,
statute, rule, or regulation, and no significant nuisance issues or problems are likely or
anticipated, and that compliance with other applicable requirements of the City's Zoning
Ordinance will be accomplished.
That the operations plan and site plan have incorporated features necessary to assist in
reducing potential crime-related problems and as specified in the operating requirements
section. These features may include, but are not limited to, on-site security; procedure for
allowing entry; openness to surveillance and control of the premises; the perimeter and
surrounding properties; reduction of opportunities for congregating and obstructing public ways
and neighboring property; illumination of exterior areas; and limiting furnishings and features
that encourage loitering and nuisance behavior.
That all reasonable measures have been incorporated into the operations plan and site plan or
consistently taken to successfully control and/or prevent disturbances, vandalism, traffic
problems, cannabis use in public, public or private nuisances, or interference in the operation
of another business.
That the commercial cannabis activity is likely to have no potentially adverse effect on the
health, peace, or safety of persons living or working in the surrounding area, overly burden a
specific neighborhood, or contribute to a public nuisance.
That any provision of the Municipal Code or condition imposed by a City-issued permit, or any
provision of any other local or State law, regulation, or order, or any condition imposed by
permits issued in compliance with those laws, will not be violated.
That the applicant has not made a false statement of material fact or has omitted to state a
material fact in the application for a permit.
That the applicant has not engaged in unlawful, fraudulent, unfair, or deceptive business acts
or practices with respect to the operation of another business.
Conditions of approval may require that a commercial cannabis activity be subject to
conditions that mitigate potential impacts of the sale of cannabis products in the community.
Indemnification. The applicant or its legal representative shall:
Indemnify and hold the City harmless from any and all claims, damages, legal or enforcement
actions, including, but not limited to, any actions or claims associated with violation of Federal
law associated with the operation of the commercial cannabis activity; defend, at its sole
expense, any action against the City, its agents, officers, and employees related to the
approval of an entitlement for or the operation of the commercial cannabis activity; reimburse
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(2)
(a)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(i)
(ii)
(iii)
the City for any court costs and attorney fees that the City may be required to pay as a result of
any legal challenge (or Federal enforcement action) related to the City's approval of an
entitlement for or the operation of the commercial cannabis activity.
Maintain insurance in the amounts and of the types that are acceptable to the City pursuant to
guidelines and policies set forth by the local licensing authority and name the City as an
additionally insured on all City-required insurance policies.
(Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
§ 9-17.009. Commercial cannabis operational requirements.
Operational Requirements.
A cannabis testing facility permitted under this section may only operate between the hours of
7:00 a.m. and 8:00 p.m. Pacific Time.
A retail non-storefront delivery facility permitted under this section may only operate between
the hours of 6:00 a.m. and 10:00 p.m. Pacific Time.
Any commercial cannabis activity permitted under this chapter must comply with all applicable
State cannabis laws, including, but not limited to, the requirement of a valid State license to
operate a commercial cannabis activity.
A commercial cannabis activity permitted under this chapter must comply with all applicable
provisions of Titles 5 and 8 of this code.
A commercial cannabis activity permitted under this section may not employ any person who is
not at least 18 years of age.
A commercial cannabis activity permitted under this section shall not conduct or engage in the
commercial or retail sales of any cannabis or cannabis products on the premises of the
cannabis facility.
No cannabis cultivation may occur on the property of a commercial cannabis activity permitted
under this chapter.
A commercial cannabis activity permitted under this chapter may not allow or permit the use,
inhalation, smoking, eating, ingestion, or consumption of cannabis or cannabis products on the
property of the commercial cannabis activity, including in the parking areas of such property.
Criminal Background Requirements.
All owners, corporate officers, partners, managers, employees, or volunteers of a
commercial cannabis activity permitted under this chapter shall comply with background
criminal history requirements under State law. No person who is currently charged with or
has been convicted within the previous ten years of a felony or misdemeanor involving
moral turpitude or any crime involving the sale, possession for sale, manufacture,
transportation, cultivation, or distribution of a controlled substance shall be employed by a
cannabis business in the City.
Prior to commencing any work within or on behalf of a commercial cannabis facility
permitted under this chapter, each owner, corporate officer, partner, manager, employee,
and volunteer must complete a current criminal history background check that
demonstrates compliance with subsection (a)(9)(i). Each criminal history background
check must be updated every 12 months.
A commercial cannabis activity permitted under this section shall maintain a complete
register of each owner, corporate officer, partner, manager, employee, and volunteer
working for and/or associated with the commercial cannabis activity, including a copy of
each required criminal history background check. The register and required records must
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(iv)
(v)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(i)
(ii)
be made available for inspection by any city officer or official for purposes of determining
compliance with this chapter.
A commercial cannabis activity permitted under this chapter shall notify the city in writing
of any disqualifying conviction described in subsection (a)(9)(i) for an owner, corporate
officer, partner, manager, employee, or volunteer within 10 days of the conviction.
A commercial cannabis activity permitted under this chapter may submit to the Police
Chief a written request for a waiver of the prohibition in subsection (a)(9)(i) with regard to a
particular owner, corporate officer, partner, manager, employee, or volunteer, on the
ground that such person's involvement with the commercial cannabis activity will not pose
a threat to public safety. The Police Chief, in his or her unfettered discretion, may deny
such a written request, subject to the appeal procedures set forth in Municipal Code
Sections 1-2.13 through 1-2.16.
A commercial cannabis activity permitted under this chapter shall provide the name, phone
number, facsimile number, and e-mail address of a manager or representative who can be
reached 24 hours a day in the event that the city decides to provide notice of an operating
problem associated with the commercial cannabis facility.
Disposal of chemical, dangerous, or hazardous waste must be conducted in a manner
consistent with Federal, State and local laws, regulations, rules or other requirements.
Cannabis waste must be made unusable and unrecognizable prior to leaving the licensed
premises by grinding it and incorporating it with 50% non-cannabis waste.
A commercial cannabis activity permitted under this chapter must pay any applicable taxes
pursuant to Federal, State, and local law.
A commercial cannabis activity permitted under this chapter shall provide a secured storage
area on-site. All cannabis and cannabis products shall be stored in this area during non-
business hours.
A commercial cannabis activity permitted under this chapter may be required to provide a
video surveillance system that is accessible by the City of Atascadero.
A commercial cannabis activity permitted under this chapter may be required to provide a
security plan that outlines private security services on site for 24 hours a day.
A retail non-storefront facility location in the City of Atascadero shall include an on-site
concealed location within the building where all cannabis products and cash are loaded onto or
unloaded from a delivery vehicle. The concealed location shall be within an enclosed area not
visible or accessible to the public.
A commercial cannabis business location permitted under this chapter shall be required to
maintain a backup power source to maintain security features in the event of a power failure.
The premises of a commercial cannabis activity must be equipped with an odor absorbing
ventilation and exhaust system so that odor generated inside the premises that is distinctive to
the operation of the commercial cannabis activity is not detected outside the premises,
anywhere on adjacent property or public rights-of-way, on or about any exterior or interior
common area walkways, hallways, breeze-ways, foyers, lobby areas, or any other areas
available for common use by tenants or the visiting public, or within any other unit located
within the same building as the commercial cannabis activity. As such, a commercial cannabis
activity must install and maintain the following equipment or any other equipment which local
licensing authority determines has the same or better effectiveness:
An exhaust air filtration system with odor control that prevents internal odors from being
emitted externally; or
An air system that creates negative air pressure between the premises' interior and
exterior so that the odors generated inside the premises are not detectable outside the
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(a)
(1)
(2)
(3)
premises.
(Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
§ 9-17.010. Suspension and revocation of entitlement.
Suspension, Modification and Revocation.
Authority to Suspend or Revoke. Any permit issued for a commercial cannabis activity facility
may be suspended, modified or revoked by the Planning Commission if it shall appear to the
Commission that the permittee has violated any of the requirements of this chapter or the
Municipal Code, the permittee is operating in a manner which violates the operational
requirements or operational plan required by this chapter, the permittee is operating in violation
of any conditions of approval applicable set forth in the use permit approval, the permittee is
operating in a manner which constitutes a nuisance, the permittee's State license under
MAUCRSA has been suspended, revoked, or terminated, or the permittee is operating in a
manner which conflicts with State or Federal law.
Annual Review of Permitted Commercial Cannabis. The Community Development Department
and the Police Department are hereby authorized to conduct an annual review of the operation
of each permitted commercial cannabis activity within the City for full compliance with the
business license regulations, cannabis tax collection requirements, operational recordkeeping,
nuisance and all other requirements of this chapter, the Atascadero Municipal Code, and State
licensing. A fee in an amount set by resolution of the City Council may be established in order
to reimburse the City for the time involved in the annual review process. The staff may initiate a
permit suspension or revocation process for any commercial cannabis activity which, upon
completion of an annual review, is found not to be in compliance with the requirements of this
chapter or which is operating in a manner which constitutes a public nuisance. Staff may,
based upon its annual review of the operation of a commercial cannabis activity, place on a
Planning Commission meeting agenda, a proposal to suspend or revoke a commercial
cannabis activities permit.
Except as otherwise provided in this chapter, no permit shall be revoked or suspended by the
Planning Commission under the authority of this section until written notice of the intent to
consider revocation or suspension of the permit has been served upon a permittee at least 10
days prior to the date set for such review hearing. Such revocation or suspension notice shall
state the specific reasons for the proposed suspension or revocation and must have been
provided to the permittee in writing prior to the hearing. Such notice shall contain a brief
statement of the grounds to be relied upon for revoking or suspending such permit. Notice may
be given either by personal delivery to the permittee, or by depositing such notice in the U.S.
mail in a sealed envelope, postage prepaid (via regular mail and return receipt requested),
addressed to the person to be notified at his or her address as it appears in his or her
application for a permit.
(Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
§ 9-17.011. Enforcement.
The City may enforce this chapter in any manner permitted by law. Any violation of this chapter shall be
and is hereby declared to be a public nuisance and contrary to the public interest and shall, at the
discretion of the City, create a cause of action for injunctive relief.
(Ord. 612 § 2, 2017; Ord. 647 § 5, 2021)
§ 9-17.012. Limitation on liability.
To the fullest extent permitted by law, the City shall not assume any liability, whatsoever, with respect to
approving any entitlement or permit pursuant to this chapter or the operation of any commercial
City of Atascadero, CA CANNABIS ACTIVITIES AND REGULATIONS
cannabis activity approved for such permit pursuant to this chapter
(Ord. 647 § 5, 2021)
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Health of the Cannabis Industry in California
Page 1 of 37
Condition and Health of the
Cannabis Industry in California
Supplemental Report
Gavin Newsom, Governor State of California
Tomiquia Moss, Secretary
Business, Consumer Services and Housing Agency
Nicole Elliott, Director Department of Cannabis Control
Published March 3, 2025
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Health of the Cannabis Industry in California
Page 2 of 37
Executive Summary
The State of California began regulating commercial cannabis activity on January 1,
2018, in parallel with the start of adult use (non-medical) cannabis sales. The last
seven years have been marked by economic adjustments, including as pre-existing
cannabis businesses transitioned into the regulatory and licensing framework.
Licensed cannabis market
During this transitionary period, the licensed cannabis market has seen both positive
momentum as well as challenges.
The challenges include:
• Taxes, fees and other compliance costs can make it expensive to produce
licensed cannabis.
• Wholesale prices for harvested cannabis have been declining since the fourth
quarter of 2020, and retail sales revenues have been decreasing since 2021.
• Some businesses are consolidating or exiting the market, consistent with other
emerging markets.
Externalities exacerbate these conditions. Licensed businesses compete with illegal
cannabinoid products, including those chemically altered to mimic the intoxicating
effects of cannabis products. Federal prohibition of cannabis and treatment under
the Internal Revenue Code continue to restrict cannabis businesses and limit
opportunities for financing and investment utilized routinely and by other markets
during periods of economic change.
Despite these challenges, the California licensed market continues to grow:
• Licensed production of cannabis plants is increasing, and wholesale prices are
stabilizing.
• Retail sales volume (units sold) in licensed stores is increasing.
• Licensed retail is expanding in some local jurisdictions which, as of two years
ago, offered no local consumer access to the regulated market.
Cannabis consumption in California
Cannabis use rates in California are consistent with other states that have legalized.
The share of Californians that use cannabis has been increasing for more than a
decade, beginning in 2011 and continuing through adult-use legalization, consistent
with national trends.
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Health of the Cannabis Industry in California
Page 3 of 37
Approximately 40% of the cannabis consumed in California is obtained from the
licensed, regulated marketplace. The share of licensed consumption has increased
from 25% in 2019 and in parallel with greater enforcement, public awareness
campaigns and policy changes to create greater legal market access.
Continuing to move a greater share of consumers away from illicit sources and into
the licensed market is critically important, because cannabis purchased from illicit
sources poses serious public health and safety risks.
Unlicensed cannabis market
The size of the illicit market in California does not appear to be increasing, and the
amount of cannabis illicitly grown and produced in California is estimated to be
relatively stable today compared to production levels prior to adult-use legalization.
However, a qualitative review of the data suggests that the size of the illicit market
may be on the lower end of the estimated range. The State of California’s multi-
agency enforcement efforts, including those co-led by the Department as a part of
California’s Unified Cannabis Enforcement Task Force, appear to be restraining
expansions of the illicit market.
As long as there is a patchwork of legalization across the country and high demand
for California-grown cannabis, there will be an illicit cannabis market. The most
effective ways to eliminate the illicit market include:
• Decreasing costs for licensed businesses
• Increasing costs for illicit cannabis
• Shifting more consumers from unregulated to licensed cannabis
Overall outlook
Despite the challenges the California cannabis market faces, 2024 saw the most
licensed cannabis produced and a steady increase of the volume of licensed
cannabis sold since the introduction of the cannabis regulatory framework in January
2018. The share of total cannabis consumption supplied by the licensed market
remains stable at around 40 percent.
Cost reductions or avoided cost increases for licensed businesses, a strong regulatory
system, targeted policy reforms, and continued enforcement and consumer
education can support further shifts in consumer demand and promote market
stability.
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Health of the Cannabis Industry in California
Page 4 of 37
About This Report
This report is submitted in accordance with California Revenue and Taxation Code
Division 2 Part 14.5 Chapter 3 §34020.1. It provides an overview of the condition and
health of California’s cannabis industry. This reporting requirement was established
by Assembly Bill 195 (Committee on Budget), a trailer bill implementing the Budget
Act of 2022.
The report includes the following information:
(1) How many local jurisdictions have permitted commercial cannabis activity
(2) How many local jurisdictions have not permitted commercial cannabis activity
(3) Information or analysis concerning the potential expansion or contraction of
the cannabis market in the state, which may include information concerning
any increase in retail cannabis sales and activity in the illicit market
(4) How many equity licensees have been approved by the Department of
Cannabis Control
(5) In what counties the state equity licensees are located
(6) The health of the Cannabis Tax Fund, and any future projections of Cannabis
Tax Fund revenues
(7) Information on the viability of cannabis businesses in the state, and the ability
to continue to operate cannabis businesses in the state, from a general and
equity licensee standpoint
(8) The impacts of the suspension of the cultivation tax, including whether that
suspension resulted in a decrease in retail cannabis prices or increased
participation in the legal cannabis market
The Department of Cannabis Control recently commissioned a cannabis market
report (California Cannabis Market Outlook Executive Summary and California
Cannabis Market Outlook Full Report), which is submitted in fulfillment of the
requirements for items 3, 7, and 8. This report includes additional information and
recommendations to strengthen the state’s legal cannabis market.
This supplement contains additional data and insights addressing the remaining
reporting requirements (items 1, 2, 4, 5, and 6).
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Health of the Cannabis Industry in California
Page 5 of 37
Supplemental Report on the Health of the
Cannabis Industry in California
Local Regulation of Cannabis Businesses
Cannabis businesses in California are regulated at the state and local level. State law
designates local jurisdictions as either the city or county in which the business is
physically located:
• Businesses located in an incorporated city are regulated by the city.
• Businesses located in an unincorporated portion of a county are regulated by
the county.
The city or county can decide whether to license all cannabis business types, license
some types but prohibit others, or prohibit all cannabis businesses.
The Department has an online data tool which shows where cannabis business are
allowed within the state. Overall:
• 46% of cities and counties allow at least one type of cannabis business
• 54% of cities and counties do not allow any type of cannabis business
• 57% of cities and counties do not allow any retail cannabis businesses
(1) How many local jurisdictions have permitted commercial cannabis activity
As of July 2024:
Jurisdiction Type Number that allow at least one type of
commercial cannabis activity
Percent
Cities 220 out of 481 46%
Counties 30 out of 58 52%
Total 250 out of 539 46%
*San Francisco, which is both a city and county, is included in this
data as a county.
See Exhibit 1 for a detailed listing.
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Health of the Cannabis Industry in California
Page 6 of 37
(2) How many local jurisdictions have not permitted commercial cannabis
activity
As of July 2024:
Jurisdiction Type Number that prohibit all commercial
cannabis activity
Percent
Cities 261 out of 481 54%
Counties 28 out of 58 48%
Total 289 out of 539 54%
*San Francisco, which is both a city and county, is included in this data
as a county.
See Exhibit 1 for a detailed listing.
Equity Cannabis Business Licensing
The criminalization of cannabis has had a profound and lasting impact on
Californians and communities across the country. The long-term consequences of
cannabis prohibition continue to affect individuals with past cannabis convictions,
their families, and the communities in which they live.
Starting a cannabis business presents challenges for all entrepreneurs, but it can be
particularly difficult for those who have been harmed by cannabis criminalization. To
address these disparities, California’s cannabis equity initiatives are designed to
reduce barriers to enter the cannabis industry for those most impacted by the War
on Drugs.
An equity business can be recognized by the Department if 50% of their ownership:
• Meet state equity criteria, which includes cannabis-related arrests or
convictions, household income, or residency in areas disproportionately
impacted by the War on Drugs
• Attest to their participation in a local jurisdiction’s cannabis equity program
Statewide counts of cannabis equity businesses can be challenging because
businesses may qualify under one or both of the criteria above, and not all
participants in local equity programs seek recognition as an equity business at the
state level.
The Department provides financial assistance to cannabis equity businesses through
state license fee waivers and deferrals. Waivers became available starting January 1,
2022, but funding was exhausted in February 2024. Deferrals, which began on
January 1, 2023, continue to remain available.
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Health of the Cannabis Industry in California
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Although license fee waiver funding is depleted, the Department of Cannabis Control
continues to review waiver requests to determine eligibility for two state programs
that provide financial assistance for cannabis equity businesses:
• The Vendor Compensation Program, administered by the California
Department of Tax and Fee Administration, allows cannabis equity retailers to
retain 20% of the cannabis excise tax they have collected on retail sales. This
program ends on December 31, 2025.
• The Cannabis Equity Tax Credit, administered by the Franchise Tax Board,
allows cannabis equity businesses to receive a $10,000 tax credit. This tax
credit is available through the 2027 calendar year.
(4) How many equity licensees have been approved by the Department of Cannabis Control.
As of February 3, 2025, there are 2,103 active equity licenses across 42 counties. This
total includes 8 cannabis event organizer licenses, which are not associated with a
specific local jurisdiction.
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Health of the Cannabis Industry in California
Page 8 of 37
(5) In what counties the state equity licensees are located.
County Number of
Equity Licenses
Alameda 114
Butte 2
Calaveras 17
Contra Costa 4
Del Norte 2
El Dorado 2
Fresno 4
Humboldt 487
Imperial 2
Inyo 3
Kern 12
Kings 1
Lake 35
Lassen 1
Los Angeles 567
Marin 2
Mendocino 267
Merced 1
Mono 2
Monterey 18
Napa 2
Nevada 56
County Number of
Equity Licenses
Orange 6
Riverside 15
Sacramento 77
San Bernardino 10
San Diego 3
San Francisco 67
San Joaquin 1
San Luis Obispo 4
San Mateo 1
Santa Barbara 2
Santa Cruz 28
Shasta 4
Solano 3
Sonoma 32
Stanislaus 6
Tehama 1
Trinity 222
Tulare 2
Ventura 3
Yolo 7
No County Listed* 8
Total 2,103
*“No County Listed” refers to cannabis event organizer licenses, which are not
associated with a specific local jurisdiction.
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Health of the Cannabis Industry in California
Page 9 of 37
Cannabis Taxes
(6) The health of the Cannabis Tax Fund, and any future projections of
Cannabis Tax Fund revenues.
The Department of Cannabis Control does not manage California’s cannabis taxes,
however, the information provided here is the result of consultation with the
Department of Finance and California Department of Tax and Fee Administration
(CDTFA).
Cannabis Tax Fund
The Governor’s proposed budget, published in January 2025, describes estimated
revenues and expenditure allocations for the California Cannabis Tax Fund (3314).
Exhibit 2 includes a detailed accounting for fiscal years 2023-24, 2024-25, and 2025-
26, and below is a summary:
2023-24 2024-25 2025-26
Beginning Balance $469,563 $538,434 $468,205
Annual Cannabis Tax
Revenue**
$629,373 $603,741 $761,903
Total Revenues $1,098,936 $1,142,175 $1,230,108
Total Expenditures $560,502 $673,970 $468,205
Balance of Tax
Receipts
$538,434 $468,205 $619,947
*All figures are in millions
** These figures include costs associated with the Vendor
Compensation Program for cannabis equity retailers.
Cannabis Tax Revenues
CDTFA publishes data related to cannabis tax revenues through an open data portal.
This data is available on a quarterly basis and is displayed below:
10/14/25 | Item H1 | Attachment 2
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Health of the Cannabis Industry in California
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Summary of trends:
• Cannabis tax revenue began to rise as businesses became licensed under the
state’s regulatory framework in 2018 and continued throughout 2019.
• During the pandemic, cannabis tax revenues saw a temporary surge, peaking
at over $800 million in fiscal year 2021-22. This increase aligned with
nationwide trends for cannabis and other discretionary adult-use products
and was further fueled by Americans receiving multiple stimulus checks.
• This tax revenue surge has since subsided. Tax revenues have decreased closer
to pre-pandemic levels due to a variety of factors, including lower retail sales
prices.
• The Governor's Budget projects that cannabis tax revenues will be $762 million
in fiscal year 2025-26, approximately 6 percent lower than the peak revenues
seen in fiscal year 2021-22. This figure includes the Vendor Compensation
Program for equity retailers and reflects the assumption that the cannabis
excise tax rate will increase to 19 percent as of July 1, 2025.
Cannabis Tax Policy
California’s cannabis tax policy has evolved over time to simplify administration and
enhance industry compliance. Key changes include:
• Effective July 1, 2022, the cultivation tax, which taxed cannabis flowers, leaves,
and fresh cannabis plants at various rates per ounce, was eliminated.
• As of January 1, 2023, the point of taxation for cannabis products was
permanently moved from wholesale to retail, meaning the 15% cannabis excise
tax is now collected directly by retailers.
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
2018 2019 2020 2021 2022 2023 2024
Cannabis Market Tax Revenues
Cannabis Tax
10/14/25 | Item H1 | Attachment 2
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Health of the Cannabis Industry in California
Page 11 of 37
• The cannabis excise tax was established at rate of 15% for three fiscal years,
beginning in 2023. Starting July 1, 2025, CDTFA must adjust the excise tax rate
every two years, but the new rate may not exceed 19%.
10/14/25 | Item H1 | Attachment 2
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Health of the Cannabis Industry in California
Page 12 of 37
APPENDIX
10/14/25 | Item H1 | Attachment 2
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Health of the Cannabis Industry in California
Page 13 of 37
Exhibit 1
Where cannabis businesses are allowed and prohibited throughout the
state
10/14/25 | Item H1 | Attachment 2
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Health of the Cannabis Industry in California
Page 14 of 37
County and City Ordinances on Cannabis Business Activity
Alameda County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Alameda
County Allowed Allowed Allowed Allowed Allowed Allowed
Alameda Allowed Allowed Allowed Allowed Limited Allowed
Albany Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Berkeley Allowed Allowed Allowed Allowed Allowed Allowed
Dublin Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Emeryville Allowed Allowed Allowed Allowed Prohibited Allowed
Fremont Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Hayward Allowed Allowed Allowed Allowed Allowed Allowed
Livermore Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Newark Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Oakland Allowed Allowed Allowed Allowed Allowed Allowed
Piedmont Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Pleasanton Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
San Leandro Allowed Allowed Allowed Allowed Prohibited Allowed
Union City Limited Limited Limited Limited Limited Limited
Alpine County
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Alpine County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Amador County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Amador
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Amador City Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Ione Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Jackson Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Plymouth Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Sutter Creek Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
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Health of the Cannabis Industry in California
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Butte County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Butte County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Biggs Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Chico Allowed Allowed Allowed Allowed Prohibited Allowed
Gridley Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Oroville Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Paradise Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Calaveras County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Calaveras County Allowed Prohibited Allowed Prohibited Allowed Allowed
Angels Camp Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
City and County of San Francisco
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
City and
County of San
Francisco
Allowed Allowed Allowed Allowed Allowed Allowed
Colusa County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Colusa County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Colusa Allowed Allowed Allowed Allowed Allowed Allowed
Williams Prohibited Prohibited Allowed Allowed Allowed Allowed
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Health of the Cannabis Industry in California
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Contra Costa County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Contra Costa
County Limited Allowed Allowed Allowed Limited Allowed
Antioch Allowed Allowed Allowed Allowed Allowed Allowed
Brentwood Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Clayton Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Concord Limited Limited Limited Limited Prohibited Allowed
Danville Prohibited Limited-
Medical Only Prohibited Prohibited Prohibited Prohibited
El Cerrito Allowed Prohibited Prohibited Prohibited Prohibited Prohibited
Hercules Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Lafayette Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Martinez Limited Limited Limited Limited Prohibited Limited
Moraga Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Oakley Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Orinda Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Pinole Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Pittsburg Prohibited Prohibited Allowed Allowed Prohibited Allowed
Pleasant Hill Prohibited Limited-
Medical Only Prohibited Prohibited Prohibited Prohibited
Richmond Allowed Allowed Allowed Allowed Allowed Allowed
San Pablo Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
San Ramon Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Walnut Creek Prohibited Limited Prohibited Prohibited Prohibited Prohibited
Del Norte County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Del Norte
County Allowed Prohibited Prohibited Allowed Allowed Prohibited
Crescent City Allowed Allowed Allowed Allowed Limited Allowed
El Dorado County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
El Dorado
County Allowed Allowed Allowed Allowed Allowed Allowed
Placerville Allowed Allowed Allowed Prohibited Prohibited Allowed
South Lake
Tahoe Allowed Allowed Allowed Allowed Allowed Allowed
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Health of the Cannabis Industry in California
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Fresno County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Fresno
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Clovis Prohibited Prohibited Prohibited Prohibited Prohibited Allowed
Coalinga Allowed Allowed Allowed Allowed Allowed Allowed
Firebaugh Allowed Allowed Allowed Allowed Allowed Allowed
Fowler Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Fresno Allowed Allowed Allowed Allowed Limited Allowed
Huron Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Kerman Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Kingsburg Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Mendota Allowed Allowed Allowed Allowed Allowed Allowed
Orange Cove Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Parlier Allowed Allowed Allowed Allowed Allowed Allowed
Reedley Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
San Joaquin Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Sanger Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Selma Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Glenn County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Glenn County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Orland Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Willows Allowed Allowed Prohibited Prohibited Prohibited Prohibited
Humboldt County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Humboldt
County Allowed Allowed Allowed Allowed Allowed Allowed
Arcata Limited Limited Allowed Allowed Allowed Allowed
Blue Lake Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Eureka Allowed Allowed Allowed Allowed Allowed Allowed
Ferndale Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Fortuna Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Rio Dell Allowed Allowed Allowed Allowed Allowed Allowed
Trinidad Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
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Health of the Cannabis Industry in California
Page 18 of 37
Imperial County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Imperial
County Allowed Allowed Allowed Allowed Allowed Allowed
Brawley Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Calexico Allowed Allowed Allowed Allowed Limited Allowed
Calipatria Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
El Centro Allowed Prohibited Prohibited Prohibited Prohibited Prohibited
Holtville Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Imperial Allowed Prohibited Prohibited Prohibited Prohibited Prohibited
Westmorland Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Inyo County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Inyo County Allowed Allowed Allowed Allowed Allowed Allowed
Bishop Allowed Allowed Prohibited Prohibited Prohibited Prohibited
Kern County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Kern County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Arvin Prohibited Allowed Allowed Allowed Limited Allowed
Bakersfield Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
California City Allowed Allowed Allowed Allowed Allowed Allowed
Delano Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Maricopa Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
McFarland Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Ridgecrest Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Shafter Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Taft Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Tehachapi Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Wasco Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
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Health of the Cannabis Industry in California
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Kings County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Kings County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Avenal Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Corcoran Limited Limited Prohibited Prohibited Prohibited Limited
Hanford Limited Limited Allowed Allowed Limited Allowed
Lemoore Allowed Allowed Allowed Allowed Allowed Allowed
Lake County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Lake County Allowed Prohibited Allowed Allowed Allowed Allowed
Clearlake Allowed Allowed Allowed Allowed Allowed Allowed
Lakeport Prohibited Allowed Allowed Allowed Limited Allowed
Lassen County and Incorporated Cities
Jurisdiction Retail (Storefront) Retail (Delivery) Distribution Manufacturing Cultivation Testing
Lassen
County Allowed Prohibited Prohibited Prohibited Prohibited Allowed
Susanville Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Los Angeles County and Incorporated Cities
Jurisdiction Retail (Storefront) Retail (Delivery) Distribution Manufacturing Cultivation Testing
Los Angeles
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Agoura Hills Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Alhambra Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Arcadia Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Artesia Prohibited Allowed Prohibited Prohibited Prohibited Prohibited
Avalon (Catalina
Island)
Prohibited Limited-
Medical Only Prohibited Prohibited Prohibited Prohibited
Azusa Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Baldwin Park Allowed Prohibited Allowed Allowed Limited Prohibited
Bell Prohibited Prohibited Limited-
Medical Only
Limited-Medical
Only
Limited-
Medical Only
Limited-
Medical Only
Bell Gardens Limited Prohibited Prohibited Prohibited Prohibited Prohibited
Bellflower Allowed Allowed Allowed Allowed Allowed Allowed
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Health of the Cannabis Industry in California
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Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Beverly Hills Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Bradbury Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Burbank Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Calabasas Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Carson Prohibited Prohibited Allowed Allowed Limited Allowed
Cerritos Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Claremont Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Commerce Prohibited Allowed Allowed Allowed Limited Allowed
Compton Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Covina Limited Prohibited Prohibited Prohibited Prohibited Limited
Cudahy Prohibited Limited-
Medical Only
Limited-
Medical Only
Limited-Medical
Only
Limited-
Medical Only
Limited-
Medical Only
Culver City Allowed Allowed Allowed Allowed Limited Allowed
Diamond Bar Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Downey Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Duarte Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
El Monte Allowed Allowed Allowed Allowed Limited Allowed
El Segundo Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Gardena Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Glendale Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Glendora Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Hawaiian
Gardens Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Hawthorne Limited Limited Allowed Allowed Allowed Allowed
Hermosa
Beach Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Hidden Hills Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Huntington
Park
Limited-
Medical Only Allowed Prohibited Allowed Allowed Prohibited
Industry Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Inglewood Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Irwindale Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
La Cañada Flintridge Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
La Habra
Heights Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
La Mirada Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
La Puente Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
La Verne Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Lakewood Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Lancaster Allowed Allowed Allowed Allowed Allowed Allowed
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Health of the Cannabis Industry in California
Page 21 of 37
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Lawndale Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Lomita Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Long Beach Allowed Allowed Allowed Allowed Allowed Allowed
Los Angeles Allowed Allowed Allowed Allowed Allowed Allowed
Lynwood Prohibited Allowed Allowed Allowed Limited Allowed
Malibu Allowed Allowed Prohibited Prohibited Prohibited Prohibited
Manhattan
Beach Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Maywood Allowed Allowed Allowed Allowed Limited Allowed
Monrovia Prohibited Prohibited Prohibited Prohibited Prohibited Allowed
Montebello Prohibited Allowed Allowed Allowed Allowed Allowed
Monterey
Park Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Norwalk Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Palmdale Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Palos Verdes
Estates Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Paramount Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Pasadena Allowed Allowed Allowed Allowed Allowed Allowed
Pico Rivera Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Pomona Allowed Allowed Allowed Allowed Limited Allowed
Rancho Palos
Verdes Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Redondo
Beach Limited Prohibited Prohibited Prohibited Prohibited Prohibited
Rolling Hills Prohibited Limited-
Medical Only
Limited-
Medical Only Prohibited Prohibited Prohibited
Rolling Hills
Estates Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Rosemead Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
San Dimas Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
San Fernando Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
San Gabriel Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
San Marino Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Santa Clarita Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Santa Fe
Springs Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Santa Monica Limited Prohibited Prohibited Prohibited Prohibited Prohibited
Sierra Madre Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Signal Hill Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
South El Monte Limited Prohibited Prohibited Prohibited Prohibited Prohibited
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Health of the Cannabis Industry in California
Page 22 of 37
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
South Gate Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
South
Pasadena Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Temple City Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Torrance Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Vernon Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Walnut Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
West Covina Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
West
Hollywood Allowed Allowed Prohibited Prohibited Prohibited Prohibited
Westlake
Village Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Whittier Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Madera County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Madera
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Chowchilla Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Madera Allowed Allowed Allowed Allowed Allowed Allowed
Marin County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Marin County Prohibited Limited-
Medical Only Prohibited Prohibited Prohibited Prohibited
Belvedere Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Corte Madera Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Fairfax Limited-
Medical Only Allowed Prohibited Prohibited Prohibited Prohibited
Larkspur Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Mill Valley Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Novato Prohibited Allowed Allowed Allowed Limited Allowed
Ross Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
San Anselmo Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
San Rafael Prohibited Allowed Allowed Allowed Prohibited Allowed
Sausalito Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Tiburon Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
10/14/25 | Item H1 | Attachment 2
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Health of the Cannabis Industry in California
Page 23 of 37
Mariposa County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Mariposa
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Mendocino County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Mendocino County Allowed Allowed Allowed Allowed Allowed Allowed
Fort Bragg Limited Allowed Limited Limited Limited Limited
Point Arena Allowed Prohibited Allowed Allowed Allowed Allowed
Ukiah Allowed Allowed Allowed Allowed Allowed Allowed
Willits Allowed Allowed Allowed Allowed Allowed Allowed
Merced County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Merced
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Atwater Allowed Allowed Allowed Allowed Limited Allowed
Dos Palos Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Gustine Allowed Allowed Allowed Allowed Limited Prohibited
Livingston Prohibited Prohibited Prohibited Allowed Limited Allowed
Los Banos Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Merced Limited Allowed Allowed Allowed Limited Allowed
Modoc County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Modoc
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Alturas Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Mono County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Mono County Allowed Prohibited Allowed Allowed Allowed Allowed
Mammoth
Lakes Allowed Allowed Allowed Limited Limited Allowed
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Health of the Cannabis Industry in California
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Monterey County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Monterey
County Allowed Prohibited Allowed Allowed Allowed Allowed
Carmel-by-
the-Sea Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Del Rey Oaks Limited Allowed Allowed Allowed Limited Allowed
Gonzales Prohibited Prohibited Prohibited Limited-Medical
Only
Limited-
Medical Only Prohibited
Greenfield Allowed Allowed Allowed Allowed Limited Allowed
King City Allowed Allowed Allowed Allowed Limited Allowed
Marina Allowed Allowed Allowed Allowed Allowed Allowed
Monterey Limited Limited Limited Prohibited Prohibited Limited
Pacific Grove Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Salinas Allowed Allowed Allowed Allowed Limited Allowed
Sand City Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Seaside Allowed Allowed Allowed Allowed Allowed Allowed
Soledad Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Napa County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Napa County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
American
Canyon Prohibited Allowed Allowed Allowed Limited Allowed
Calistoga Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Napa Limited Limited Prohibited Limited Prohibited Prohibited
St. Helena Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Yountville Prohibited Allowed Prohibited Prohibited Prohibited Prohibited
Nevada County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Nevada
County Prohibited Prohibited Allowed Prohibited Limited-
Medical Only Prohibited
Grass Valley Allowed Allowed Allowed Allowed Limited Allowed
Nevada City Allowed Allowed Allowed Allowed Limited Allowed
Truckee Prohibited Allowed Prohibited Prohibited Prohibited Prohibited
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Health of the Cannabis Industry in California
Page 25 of 37
Orange County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Orange
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Aliso Viejo Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Anaheim Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Brea Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Buena Park Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Costa Mesa Allowed Allowed Allowed Allowed Prohibited Allowed
Cypress Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Dana Point Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Fountain
Valley Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Fullerton Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Garden Grove Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Huntington
Beach Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Irvine Prohibited Prohibited Prohibited Prohibited Prohibited Allowed
La Habra Prohibited Allowed Allowed Prohibited Prohibited Allowed
La Palma Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Laguna
Beach Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Laguna Hills Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Laguna
Niguel Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Laguna Woods Allowed Prohibited Prohibited Prohibited Prohibited Prohibited
Lake Forest Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Los Alamitos Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Mission Viejo Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Newport
Beach Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Orange Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Placentia Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Rancho Santa
Margarita Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
San Clemente Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
San Juan Capistrano Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Santa Ana Allowed Allowed Allowed Allowed Allowed Allowed
Seal Beach Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Stanton Allowed Allowed Allowed Allowed Limited Allowed
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Health of the Cannabis Industry in California
Page 26 of 37
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Tustin Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Villa Park Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Westminster Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Yorba Linda Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Placer County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Placer County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Auburn Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Colfax Allowed Allowed Allowed Allowed Limited Allowed
Lincoln Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Loomis Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Rocklin Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Roseville Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Plumas County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Plumas
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Portola Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Riverside County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Riverside
County Allowed Allowed Allowed Allowed Limited Allowed
Banning Allowed Prohibited Allowed Allowed Limited Allowed
Beaumont Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Blythe Allowed Prohibited Allowed Allowed Allowed Allowed
Calimesa Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Canyon Lake Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Cathedral City Allowed Allowed Allowed Allowed Allowed Allowed
Coachella Limited Allowed Allowed Allowed Allowed Allowed
Corona Allowed Allowed Allowed Allowed Prohibited Allowed
Desert Hot
Springs Allowed Allowed Allowed Allowed Allowed Allowed
Eastvale Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
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Health of the Cannabis Industry in California
Page 27 of 37
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Hemet Allowed Allowed Allowed Allowed Limited Allowed
Indian Wells Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Indio Allowed Limited Prohibited Prohibited Prohibited Prohibited
Jurupa Valley Allowed Prohibited Allowed Allowed Limited Allowed
La Quinta Prohibited Limited-
Medical Only Prohibited Prohibited Prohibited Prohibited
Lake Elsinore Allowed Prohibited Allowed Allowed Limited Allowed
Menifee Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Moreno Valley Allowed Allowed Allowed Allowed Allowed Allowed
Murrieta Prohibited Prohibited Prohibited Prohibited Prohibited Allowed
Norco Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Palm Desert Allowed Allowed Allowed Allowed Allowed Allowed
Palm Springs Allowed Allowed Allowed Allowed Allowed Allowed
Perris Allowed Allowed Allowed Allowed Limited Allowed
Rancho
Mirage Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Riverside Allowed Allowed Allowed Allowed Prohibited Allowed
San Jacinto Allowed Prohibited Allowed Allowed Allowed Allowed
Temecula Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Wildomar Allowed Allowed Allowed Allowed Allowed Allowed
Sacramento County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Sacramento
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Citrus Heights Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Elk Grove Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Folsom Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Galt Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Isleton Allowed Allowed Allowed Allowed Limited Allowed
Rancho Cordova Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Sacramento Allowed Allowed Allowed Allowed Limited Allowed
San Benito County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
San Benito
County Limited Allowed Allowed Allowed Allowed Allowed
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Health of the Cannabis Industry in California
Page 28 of 37
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Hollister Allowed Allowed Allowed Allowed Allowed Allowed
San Juan
Bautista Allowed Allowed Allowed Allowed Allowed Allowed
San Bernardino County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
San Bernardino
County
Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Adelanto Allowed Allowed Allowed Allowed Allowed Allowed
Apple Valley Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Barstow Allowed Allowed Allowed Allowed Limited Allowed
Big Bear Lake Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Chino Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Chino Hills Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Colton Prohibited Prohibited Prohibited Allowed Limited Allowed
Fontana Limited Limited Prohibited Prohibited Prohibited Prohibited
Grand Terrace Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Hesperia Prohibited Limited-
Medical Only Prohibited Prohibited Prohibited Prohibited
Highland Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Loma Linda Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Montclair Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Needles Allowed Allowed Allowed Allowed Allowed Allowed
Ontario Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Rancho
Cucamonga Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Redlands Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Rialto Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
San Bernardino Allowed Limited Limited Limited Limited Limited
Twentynine
Palms Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Upland Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Victorville Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Yucaipa Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Yucca Valley Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
10/14/25 | Item H1 | Attachment 2
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Health of the Cannabis Industry in California
Page 29 of 37
San Diego County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
San Diego
County Allowed Prohibited Allowed Allowed Allowed Prohibited
Carlsbad Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Chula Vista Allowed Limited Allowed Allowed Limited Allowed
Coronado Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Del Mar Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
El Cajon Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Encinitas Allowed Allowed Allowed Allowed Allowed Prohibited
Escondido Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Imperial
Beach Allowed Allowed Prohibited Prohibited Prohibited Prohibited
La Mesa Allowed Prohibited Allowed Allowed Allowed Allowed
Lemon Grove Allowed Allowed Allowed Allowed Allowed Prohibited
National City Allowed Allowed Allowed Allowed Allowed Allowed
Oceanside Prohibited Limited Allowed Allowed Allowed Allowed
Poway Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
San Diego Allowed Limited Allowed Allowed Limited Allowed
San Marcos Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Santee Limited Limited Limited Limited Limited Limited
Solana Beach Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Vista Allowed Prohibited Allowed Allowed Prohibited Allowed
San Joaquin County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
San Joaquin
County Prohibited Allowed Allowed Allowed Allowed Allowed
Escalon Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Lathrop Allowed Prohibited Prohibited Prohibited Prohibited Prohibited
Lodi Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Manteca Limited Prohibited Prohibited Prohibited Prohibited Prohibited
Ripon Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Stockton Allowed Allowed Allowed Allowed Limited Allowed
Tracy Limited Allowed Allowed Allowed Limited Allowed
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Health of the Cannabis Industry in California
Page 30 of 37
San Luis Obispo County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
San Luis
Obispo
County
Prohibited Allowed Allowed Allowed Limited Allowed
Arroyo
Grande Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Atascadero Prohibited Allowed Prohibited Prohibited Prohibited Allowed
Grover Beach Allowed Allowed Allowed Allowed Allowed Allowed
Morro Bay Allowed Allowed Allowed Prohibited Prohibited Prohibited
Paso Robles Prohibited Limited Prohibited Prohibited Prohibited Prohibited
Pismo Beach Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
San Luis Obispo Allowed Allowed Allowed Allowed Limited Allowed
San Mateo County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
San Mateo
County Prohibited Prohibited Prohibited Prohibited Limited Prohibited
Atherton Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Belmont Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Brisbane Prohibited Allowed Allowed Allowed Prohibited Allowed
Burlingame Prohibited Allowed Prohibited Prohibited Prohibited Prohibited
Colma Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Daly City Allowed Allowed Prohibited Prohibited Prohibited Allowed
East Palo Alto Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Foster City Prohibited Prohibited Prohibited Prohibited Prohibited Allowed
Half Moon
Bay Prohibited Prohibited Prohibited Prohibited Limited Prohibited
Hillsborough Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Menlo Park Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Millbrae Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Pacifica Allowed Allowed Allowed Allowed Prohibited Allowed
Portola Valley Prohibited Prohibited Prohibited Prohibited Limited Prohibited
Redwood City Allowed Allowed Prohibited Prohibited Limited Prohibited
San Bruno Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
San Carlos Prohibited Prohibited Allowed Allowed Allowed Allowed
San Mateo Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
South San
Francisco Prohibited Allowed Allowed Allowed Limited Allowed
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Health of the Cannabis Industry in California
Page 31 of 37
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Woodside Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Santa Barbara County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Santa
Barbara County Allowed Allowed Allowed Allowed Allowed Allowed
Buellton Prohibited Prohibited Prohibited Prohibited Prohibited Allowed
Carpinteria Prohibited Limited Limited Limited Prohibited Limited
Goleta Limited Allowed Allowed Allowed Limited Allowed
Guadalupe Allowed Allowed Allowed Allowed Limited Allowed
Lompoc Allowed Allowed Allowed Allowed Limited Allowed
Santa
Barbara Limited Limited Limited Limited Limited Limited
Santa Maria Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Solvang Limited-
Medical Only
Limited-
Medical Only
Limited-
Medical Only
Limited-Medical
Only
Limited-
Medical Only
Limited-
Medical Only
Santa Clara County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Santa Clara
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Campbell Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Cupertino Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Gilroy Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Los Altos Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Los Altos Hills Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Los Gatos Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Milpitas Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Monte Sereno Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Morgan Hill Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Mountain View Allowed Allowed Prohibited Prohibited Prohibited Prohibited
Palo Alto Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
San Jose Allowed Allowed Allowed Allowed Limited Allowed
Santa Clara Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Saratoga Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Sunnyvale Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
10/14/25 | Item H1 | Attachment 2
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Health of the Cannabis Industry in California
Page 32 of 37
Santa Cruz County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Santa Cruz
County Allowed Allowed Allowed Allowed Allowed Prohibited
Capitola Allowed Prohibited Prohibited Prohibited Prohibited Allowed
Santa Cruz Allowed Allowed Allowed Allowed Allowed Allowed
Scotts Valley Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Watsonville Allowed Allowed Allowed Allowed Allowed Allowed
Shasta County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Shasta
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Anderson Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Redding Limited Limited Allowed Allowed Limited Allowed
Shasta Lake Allowed Allowed Allowed Allowed Limited Allowed
Sierra County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Sierra County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Loyalton Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Siskiyou County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Siskiyou County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Dorris Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Dunsmuir Allowed Allowed Allowed Allowed Limited Allowed
Etna Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Fort Jones Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Montague Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Mount Shasta Allowed Limited-
Medical Only Allowed Allowed Allowed Allowed
Tulelake Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Weed Allowed Allowed Prohibited Prohibited Limited Prohibited
Yreka Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
10/14/25 | Item H1 | Attachment 2
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Health of the Cannabis Industry in California
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Solano County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Solano
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Benicia Allowed Allowed Allowed Allowed Limited Allowed
Dixon Allowed Allowed Prohibited Allowed Limited Allowed
Fairfield Allowed Allowed Prohibited Allowed Prohibited Allowed
Rio Vista Allowed Allowed Allowed Allowed Limited Allowed
Suisun City Allowed Allowed Allowed Allowed Limited Allowed
Vacaville Allowed Allowed Allowed Allowed Prohibited Allowed
Vallejo Allowed Allowed Allowed Allowed Allowed Allowed
Sonoma County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Sonoma
County Allowed Allowed Allowed Allowed Allowed Allowed
Cloverdale Allowed Allowed Allowed Allowed Allowed Allowed
Cotati Allowed Allowed Allowed Allowed Allowed Allowed
Healdsburg Limited Allowed Allowed Allowed Prohibited Allowed
Petaluma Prohibited Allowed Allowed Allowed Prohibited Allowed
Rohnert Park Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Santa Rosa Allowed Allowed Allowed Allowed Limited Allowed
Sebastopol Allowed Allowed Allowed Allowed Limited Allowed
Sonoma Allowed Allowed Allowed Allowed Prohibited Allowed
Windsor Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Stanislaus County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Stanislaus
County Allowed Allowed Allowed Allowed Allowed Allowed
Ceres Allowed Allowed Allowed Allowed Limited Allowed
Hughson Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Modesto Allowed Limited Allowed Allowed Limited Allowed
Newman Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Oakdale Allowed Prohibited Allowed Allowed Allowed Allowed
Patterson Allowed Prohibited Allowed Allowed Limited Allowed
Riverbank Allowed Allowed Allowed Allowed Allowed Allowed
Turlock Limited Limited Allowed Allowed Limited Allowed
10/14/25 | Item H1 | Attachment 2
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Health of the Cannabis Industry in California
Page 34 of 37
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Waterford Allowed Allowed Allowed Allowed Allowed Allowed
Sutter County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Sutter County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Live Oak Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Yuba City Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Tehama
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Corning Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Red Bluff Limited Limited Limited Limited Limited Limited
Tehama Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Trinity County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Trinity County Prohibited Allowed Allowed Allowed Allowed Allowed
Tulare County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Tulare County Limited-
Medical Only Prohibited Prohibited Prohibited Limited-
Medical Only Prohibited
Dinuba Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Exeter Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Farmersville Allowed Allowed Allowed Allowed Limited Allowed
Lindsay Allowed Allowed Allowed Allowed Limited Allowed
Porterville Allowed Allowed Prohibited Prohibited Prohibited Prohibited
Tulare Allowed Prohibited Prohibited Prohibited Prohibited Prohibited
Visalia Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Woodlake Allowed Allowed Allowed Allowed Limited Allowed
Tuolumne County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Tuolumne
County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Sonora Allowed Allowed Prohibited Allowed Prohibited Allowed
10/14/25 | Item H1 | Attachment 2
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Health of the Cannabis Industry in California
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Ventura County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Ventura
County Prohibited Prohibited Allowed Prohibited Limited Prohibited
Camarillo Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Fillmore Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Moorpark Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Ojai Allowed Allowed Prohibited Allowed Prohibited Allowed
Oxnard Allowed Prohibited Allowed Allowed Limited Allowed
Port Hueneme Allowed Allowed Allowed Allowed Limited Allowed
Santa Paula Prohibited Prohibited Prohibited Prohibited Prohibited Allowed
Simi Valley Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Thousand
Oaks
Limited-
Medical Only Prohibited Prohibited Prohibited Prohibited Allowed
Ventura Allowed Allowed Allowed Allowed Prohibited Allowed
Yolo County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Yolo County Allowed Allowed Allowed Allowed Allowed Allowed
Davis Allowed Allowed Allowed Allowed Prohibited Allowed
West
Sacramento Allowed Allowed Allowed Allowed Limited Allowed
Winters Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Woodland Limited Prohibited Limited Limited Prohibited Limited
Yuba County and Incorporated Cities
Jurisdiction Retail
(Storefront)
Retail
(Delivery) Distribution Manufacturing Cultivation Testing
Yuba County Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
Marysville Allowed Allowed Allowed Allowed Limited Allowed
Wheatland Prohibited Prohibited Prohibited Prohibited Prohibited Prohibited
10/14/25 | Item H1 | Attachment 2
Page 96 of 116
Health of the Cannabis Industry in California
Page 36 of 37
Exhibit 2
California Cannabis Tax Fund (3314) estimated revenues and
expenditure allocation
10/14/25 | Item H1 | Attachment 2
Page 97 of 116
Health of the Cannabis Industry in California
Page 37 of 37
California Cannabis Tax Fund (3314) Estimated Revenues and Expenditure
Allocations
2025-26 GOVERNORS BUDGET – GOP 24 GOVERNMENT OPERATIONS
7600 California Department of Tax and Fee Administration - Continued
California Cannabis Tax Fund (3314) Estimated Revenues & Expenditure Allocations
REVENUES: 2023-24* 2024-25* 2025-26*
Beginning Balance $469,563 $538,434 $468,205
Cannabis Tax 629,373 603,741 761,903 Total Revenues $1,098,936 $1,142,175 $1,230,108
Allocation 1: Regulatory and Administrative
Governor's Office of Business and Economic Development (Equity Program) 15,758 15,765 15,766
Department of Fish and Wildlife - 10,681 9,456
Department of Pesticide Regulation - 2,752 2,752
State Water Resources Control Board - 17,739 17,768
Employment Development Department - 1,637 1,637
Department of Tax and Fee Administration - 10,666 10,698
State Controller's Office - 489 489 Statewide General Administration 13,181 13,807 21,390
Total Allocation 1 $28,939 $73,536 $79,956
Allocation 2: Specified Allocations for Research and Other Programs
Public University/Universities in California 10,000 10,000 10,000 Governor’s Office of Business and Economic Development 50,000 50,000 50,000 University of San Diego Center for Medicinal Cannabis Research 2,000 2,000 2,000
Total Allocation 2 $62,000 $62,000 $62,000
Allocation 3: Percentage of Remaining Revenue Collection
Youth Education Prevention, Early Intervention and Treatment Account 371,737 323,060 280,923
Environmental Restoration and Protection Account 123,913 107,687 93,641 State and Local Government Law Enforcement Account 123,913 107,687 93,641 Total Allocation 3 $619,563 $538,434 $468,205
Based on prior year actual tax collection
Less Funding Provided by General Fund per RTC 34019.1 -150,000
-
-
Total Expenditures $560,502 $673,970 $610,161
Balance of Tax Receipts $538,434 $468,205 $619,947
Note: Cannabis Tax Revenue includes an estimated reduction of $4.4 million in 2023-24, $4.1 million in 2024-25, and $2 million in 2025-
26 related to equity retailer relief.
* Dollars in thousands, except in Salary Range. Numbers may not add or match to other statements due to rounding of budget details
10/14/25 | Item H1 | Attachment 2
Page 98 of 116
El C
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Page 100 of 116
S a n J a c in to A v eSan Anselmo RdWest MallHighway 101
Highway 101
Highway 101
El C
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Morro RdE
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Highway 101
Highway 101
Ata
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Ardilla Rd
10/14/25 | Item H1 | Attachment 3
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P o r t o la R dSanta Ro s aRdCurbarilAveSanta Rosa Rd10/14/25 | Item H1 | Attachment 3
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10/14/25 | Item H1 | Attachment 3
Page 104 of 116
July 2025
Cannabis Business Operator Permit Scoring Guidelines
Automatic Fail Criteria:
1. Application is received after the final filing date.
2. Application is incomplete or inaccurate.
3. Facility does not meet the City's business licensing standards.
4. Only one license application is allowed per location. Applicants must ask potential landlords if they have existing, competing business applicants.
Definitions:
All applicable definitions regarding the Commercial Cannabis Business Operator Permit Application can be found in 9.10 Cannabis Regulations of the
City’s Municipal Code. It is the responsibility of the applicant to understand and comply with all definitions of the Municipal Code and accurately present
information reflecting the applicable definitions specified in the Municipal Code in the Commercial Cannabis Business Operator Permit Application. It is
the obligation of the Applicant to request any necessary clarifications in writing to the City in advance of submission of an application. The failure of the
Applicant to request such clarification that results in the submission of false or misleading information in the application process shall subject the
Application to disqualification or other penalties as set forth in the Municipal Code.
Notice: All applications for a specific permit type will be evaluated using the merit criteria outlined below. Applicants must submit
supplemental documentation and / or references with the application that support the statements below for review by the City.
1
10/14/25 | Item H1 | Attachment 4
Page 105 of 116
July 2025
Total Potential Points Available 138 73 103 73
35 35 35 35
1.A Applicant demonstrates a commitment to the City through local hiring and community support. Retail
Storefront
Retail Non-
Storefront
(Delivery)
Cultivation Distribution,
Manufacturing
1.A.1
Over 90% of employees will be San Luis Obispo County residents. (10 points); OR
60% - 90% of employees will be San Luis Obispo County residents. (5 points); OR
Under 60% of employees will be San Luis Obispo County residents. (0 points)
0, 5, or 10 0, 5, or 10 0, 5, or 10 0, 5, or 10
1.A.2
Over 80% of supply and equipment expense (non-labor, non-rent expense) will be sourced from businesses
within 90 miles. (10 points); OR
50% - 80% of supply and equipment expense (non-labor, non-rent expense) will be sourced from local
businesses within 90 miles. (5 points); OR
Under 50% of supply and equipment expense (non-labor, non-rent expense) will be sourced from local
businesses within 90 miles. (0 points)
0, 5, or 10 0, 5, or 10 0, 5, or 10 0, 5, or 10
1.B Continued support of community programs in San Luis Obispo (i.e. park cleanups, facility improvements,
donating supplies / equipment to youth programs).
Retail
Storefront
Retail Non-
Storefront
(Delivery)
Cultivation Distribution,
Manufacturing
1.B.1
Providing over 20 hours per month of community support. (5 points); OR
Providing 10-20 hours per month of community support. (2 points); ORProviding less than 10 hours per month of community support. (0 points).0, 2, or 5 0, 2, or 5 0, 2, or 5 0, 2, or 5
1.B.2 Provide over $1,000 per month for community support. (5 points); OR
Provide up to $1,000 per month for community support. (2 points)2 or 5 2 or 5 2 or 5 2 or 5
1.B.3 Applicant can demonstrate a history of supporting local community programs for the past one years. (5 points)5 5 5 5
18 18 18 18
2.A
Applicant commits to equity ownership and competitive compensation in comparison to other
mainstream commercial businesses. Applicants commitment will be confirmed during annual permit
renewal process.
Retail
Storefront
Retail Non-
Storefront
(Delivery)
Cultivation Distribution,
Manufacturing
2.A.1
Applicant includes 3 or more principals with 2% equity or higher who have earned at or below the median
household income at the time of application. (8 points); OR
Applicant includes 1 or 2 primary principals who have earned at or below the median household income at the
time of application. (4 points); OR
Application includes 0 Primary Principals who have earned at or below the median household income at the time
of submittal. (0 points).
0, 4, or 8 0, 4, or 8 0, 4, or 8 0, 4, or 8
2.A.2
Business will have an average pay rate for entry and mid-level positions of at least 40% more than the median
local income for similar positions in other mainstream businesses. (8 points); OR
Business will have an average pay rate for entry and mid-level positions of at least 20% more than the median
local income for similar positions in other mainstream businesses. (4 points)
4 or 8 4 or 8 4 or 8 4 or 8
2.A.3 Base wages of employees exceed the State of California's minimum wage by at least $3.00/hr.0 to 2 0 to 2 0 to 2 0 to 2
Merit Criteria 1: Community Benefit (Potential Points)
Merit Criteria 2: Equity and Labor (Potential Points)
2
10/14/25 | Item H1 | Attachment 4
Page 106 of 116
July 2025
20 20 20 20
3.A Applicant has plans and capital to support a vibrant business within the City.Retail
Storefront
Retail Non-
Storefront
(Delivery)
Cultivation Distribution,
Manufacturing
3.A.1 Applicant demonstrates financial capacity to capitalize, start up, and sustain business operations 1 to 10 1 to 10 1 to 10 1 to 10
3.A.2 Applicant commits to develop raw land or major improvements, including façade rehabilitation, building
expansion, site improvements and/or other investments in an underutilized/underdeveloped site.1 to 10 1 to 10 1 to 10 1 to 10
35 0 0 0
4.A
Applicant has previous record of operating a compliant cannabis operation (including medical). A
compliant operation is defined as having a substantially compliant record (may have some minor
resolved/corrected violations) without a documented history of unresolved local or state level violations
relating, but not limited to: business code, public safety, environmental impacts, employment, and
financial payments.
Retail
Storefront
Retail Non-
Storefront
(Delivery)
Cultivation Distribution,
Manufacturing
4.A.1
91% to 100% of the Primary Principals have operated a local compliant cannabis operation for 5 or more years
(35 Points); OR
81% to 90% of the Primary Principals have operated a local compliant cannabis operation for 5 or more years (30
points); OR
71% to 80% of the Primary Principals have operated a local compliant cannabis operation for 5 or more years (25
points); OR
61% to 70% of the Primary Principals have operated a local complaint cannabis operation for 5 or more years (20
points); OR
51% to 60% of the Primary Principals have operated a local compliant cannabis operation for 5 or more years (15
points); OR
10-50% of the Primary Principals operated a compliant cannabis operation outside of SLO County for 5 or more
years (10 points); OR
10-50% of the Primary Principals operated a compliant cannabis operation outside of SLO County for less than 5
years (5 points).
5 to 35 0 0 0
10 0 0 0
5.A Applicant commits to responsible use messaging practices.Retail
Storefront
Retail Non-
Storefront
(Delivery)
Cultivation Distribution,
Manufacturing
5.A.1 Business articulates strategy to keep cannabis from being diverted to minors including advertising that is
appropriately targeted to adult audiences.1 to 5 0 0 0
5.A.2
Business promotes responsible use including messaging on packaging, offering lower dose THC product options,
offering to track use via "user determined quotas", posting information on cannabis use disorder and cautions re:
development of the adolescent brain.
1 to 5 0 0 0
Merit Criteria 4: Experience (Potential Points)
Merit Criteria 5: Messaging (Potential Points)
Merit Criteria 3: Financial Investment (Potential Points)
3
10/14/25 | Item H1 | Attachment 4
Page 107 of 116
July 2025
10 0 0 0
6.A
Applicant demonstrates control of a site to ensure a successful and timely transition from being awarded
a license to opening the business. Incomplete purchase or lease agreements do not constitute site
control.
Retail
Storefront
Retail Non-
Storefront
(Delivery)
Cultivation Distribution,
Manufacturing
6.A.1
Majority ownership in site property (10 points); OR
Minority ownership in site property (8 points): OR
10+ years future lease of site property (8 points); OR
5-10 years future lease of site property (5 points); OR
2-5 years future lease of site property (3 points); OR
Less than 2 years future lease of site property (1 point).
1 to 10 0 0 0
10 0 10 0
7.A Medical Retail Commitment Retail
Storefront
Retail Non-
Storefront
(Delivery)
Cultivation Distribution,
Manufacturing
7.A.1 Applicant commits to retain a California state medicinal cannabis cultivation license.0 or 10 0 0 or 10 0
0 0 20 0
8.A
Applicant demonstrates past experience in and / or commits to sustainable and environmental business
or building practices utilizing recognized industry standards. Applicants actions will be confirmed during
annual permit renewal process.
Retail
Storefront
Retail Non-
Storefront
(Delivery)
Cultivation Distribution,
Manufacturing
8.A.1 Applicant will recycle waste water (utilize purple pipe when available).0 0 5 0
8.A.2 Applicant will utilize certified organic practices.0 0 3 0
8.A.3 Applicant will utilize carbon free power sources for majority of power.0 0 5 0
8.A.4 Applicant will utilize energy efficient lighting.0 0 4 0
8.A.5 Applicant has plan to reduce water waste.0 0 3 0
Total Potential Points Available 138 73 103 73
Merit Criteria 6: Property Control (Potential Points)
Merit Criteria 7: Medical Retail Commitment (Potential Points)
Merit Criteria 8: Sustainability (Potential Points)
4
10/14/25 | Item H1 | Attachment 4
Page 108 of 116
10/14/25 | Item H1 | Attachment 5
SLO County Cannabis Retail Data
CANNABIS SALES TAX REVENUE BY CITY
FY ’20-‘21 FY ’21-‘22 FY ’22-‘23 FY ’23-‘24 FY ’24-‘25
S.L.O. $844,939 $998,874 $1,127,744 $1,116,495 $713,841*
GROVER BEACH $1,936,729 $2,424,900 $1,515,600 $1,198,037 $1,066,489
MORRO BAY $220,353 $512,944 $502,149 $469,133 $536,185
*The City of San Luis Obispo’s FY ’24-’25 revenue reflects the first three quarters of the fiscal year. They expect
audited fiscal year cannabis tax revenue to be approximately $1 to $1.1 million.
OPERATING FEES AND TAXES BY CITY
SAN LUIS OBISPO GROVER BEACH MORRO BAY
Number of retail
storefronts
2 4 2
Allowed storefronts 3 4 2
Sales tax percent 6% 5% 5%
Licensing fees
Operator Permit $26,537 $500 $10,416
Use Permit $11,260 Existing Structure: $2500
New Structure: $4000
$15,990
Annual Fees $52,212 $25,000 $6,102
SALES TO NORTH COUNTY RESIDENTS BY STOREFRONT
Sales to Atascadero
Residents
Sales to North County
Residents
SAN LUIS OBISPO
Megan’s Organic
Market
15% 40%
SLO Cal Roots A “meaningful” percentage of receipts and “steady
demand.” GROVER BEACH SLO Cal Roots
Urbn Leaf Not for public release Not for public release
Natural Healing
Center
Not for public release Not for public release
Catalyst Not for public release Not for public release
MORRO BAY Natural Healing
Center
Not for public release Not for public release
Perfect Union +/-10% +/-27%
Page 109 of 116
10/14/25 | Item H1 | Attachment 5
SLO County Cannabis Retail Data
ZONING REQUIREMENTS BY CITY
SAN LUIS OBISPO GROVER BEACH MORRO BAY
Zoning Only allowed within a cannabis
business overlay zone (CBZ).
Only allowed in
industrial zones.
Only allowed in two
commercial zones –
analogous to Atascadero’s
DC and CPK zones – and the
City’s general industrial
zone.
Additional
Location
Limits*
Must front an arterial. Must be
1,000 feet from any school,
playground, or other cannabis
storefront, 600 feet from any day
care, and 300 feet from any
residence located within the CBZ.
Must be 100 feet
from residential
zones.
Must be 600 feet from day
cares and youth centers.
Must be 100 feet from any
other retail cannabis site.
Approval
Process
Requires a use permit and
commercial cannabis permit. The
cannabis permit process uses a
merit criteria system where
applicants are scored on
community benefits, competitive
wage practices, financial ability,
cannabis business experience,
responsible cannabis use
messaging, and site ownership.
Allowed with
approval of a use
permit and
commercial
cannabis permit.
City Manager
review required for
final approval.
Uses a 3-step process:
1. Review by the
Community
Development Director
for compliance with
State and local law.
2. Review by the cannabis
permit committee under
a merit-based scoring
system similar to San
Luis Obispo.
3. City Manager review.
Exterior
Signage
No oversized or noncompliant
signage (i.e., no exception
process). No cannabis plant
imagery on signs.
Signage cannot obstruct storefront entrance,
cameras, or windows.
Hours of
Operation
7:00 a.m. to 9:00 p.m. 9:00 a.m. to 7:00
p.m.
Hours may be
extended to 7:00
a.m. to 9:00 p.m.
subject to
8:00 a.m. to 9:00 p.m.
Page 110 of 116
10/14/25 | Item H1 | Attachment 5
SLO County Cannabis Retail Data
enhanced security
requirements.
*In addition to the local requirements listed, California Health and Safety Code § 11362.768 prohibits cannabis
storefronts in the State from locating within a 600-foot radius of a school.
SECURITY REQUIREMENTS BY CITY
SAN LUIS OBISPO* GROVER BEACH MORRO BAY
Access The City of San Luis
Obispo does not
have granular
security
requirements in its
Municipal Code,
instead requiring
cannabis
storefronts’ security
plans to be
reviewed to the
satisfaction of the
Police Chief and City
Manager.
Must be locked and
guarded. Limited to one
customer entrance.
Must be locked and guarded.
Storage All products, besides a limited amount used for display
purposes, must be stored in a locked and secure area.
Cameras Must be in color and
HD.
Police Department
must have live access
to video footage.
Video records must be
maintained for a
minimum of 90 days.
Cameras must cover
all interior customer
areas and entrances /
exits to employee
areas.
Must be in color and HD.
Police Department must
have live access to video
footage.
Video records must be
maintained for a minimum
of 30 days.
Cameras must cover all
storage areas, customer
areas, doors and windows,
parking lot(s), and exterior
sides of the property
adjacent to ROW.
Alarms Alarm system must be professionally installed by a provider
capable of immediate notification to the Police Department.
Panic buttons must be installed. Alarm contractor must be
properly licensed.
Miscellaneous Guards are prohibited
from carrying
firearms.
Windows must have
shatter-proof
laminate.
Windows must be secured
against entry from the
outside.
Minimum exterior lighting of
one foot-candle over the
entire site.
Noted
Security/PD
Issues
No issues noted by
PD.
A few break-ins noted by
PD. They have since
strengthened security
requirements.
An occasional fake ID. No major
issues.
Noted Code
Enforcement
Issues
No issues associated with commercial retail storefronts have been reported by any
jurisdiction.
Page 111 of 116
H1
CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item H2
Department: Community
Development
Date: 10/14/2025
Placement: Management
Report
TO: JAMES R. LEWIS, CITY MANAGER
FROM: PHIL DUNSMORE, COMMUNITY DEVELOPMENT DIRECTOR
PREPARED BY: ERICK GOMEZ, ASSOCIATE PLANNER
SUBJECT: Authorization of Inclusionary Housing Funds for Del Rio Ridge
RECOMMENDATION:
Council:
1. Authorize the Director of Administrative Services to appropriate $527,573 of In Lieu
Low/Moderate Income Housing Funds for the Peoples’ Self-Help Housing Del Rio Ridge
Affordable Housing Project Loan.
2. Direct staff to bring back a loan agreement for Council approval at a future date.
DISCUSSION:
Peoples’ Self-Help Housing Corporation (PSHHC) is requesting a commitment of $527,573 of In Lieu
affordable Housing Funds to facilitate the development of the Del Rio Ridge Multifamily
Development, a 42-unit affordable housing project at 2455 El Camino Real (APN 049-151-056). The
City already authorized a commitment of $400,000 in 2020, therefore the additional amount would
bring the total funding to $927,573. The funding will be utilized to pay for development impact and
permit fees. PSHH originally expected to receive traditional state funding, which requires a 15-year
affordability compliance period as a prerequisite to refinancing or restructuring debt, and would
have allowed them to participate in the City’s Development Impact Fee Deferment Program.
However, the State has awarded the project funding with a 20-year period prior to refinancing or
restructuring the debt, necessitating a loan with a term longer than 17-years. Thus, financial
assistance is now being requested through the issuance of a 22-year soft loan from the City’s
affordable Housing Funds. The 22-year repayment term would begin after Certificates of
Occupancy are issued. This alternative offers virtually the same incentive as the deferment policy,
but allows the City’s timelines to better coincide with the stipulations of the awarded state funding.
BACKGROUND
The site is identified in the City’s General Plan Housing Element (Appendix 1, Table V-45) as a
designated site for “by-right” development that could be developed without discretionary approval,
subject to design review. This project was reviewed and endorsed by the Design Review Committee
on September 25, 2019. The applicant team is in the process of finalizing construction documents
Page 112 of 116
10/14/2025 | Item H2 | Staff Report
for permit issuance. This final City funding allocation will allow the project to move forward with
permit issuance by the end of the year. All units, except for the manager’s unit, will be deed-
restricted to low, very low, and extremely low-income households. These housing units will
contribute to meeting the City’s Regional Housing Needs Allocation (RHNA) as assigned by the State.
The City’s In Lieu (affordable) Low/Moderate Income Housing Fund is expected to have an
available balance of approximately $1.3 million as of June 30, 2025. Affordable housing in-lieu fees
are collected from applicable residential projects that are subject to the City inclusionary housing
policy. Additionally, the City deposits equity sharing from the sale of moderate-income units into
the fund. The City can use these funds to support affordable housing projects, rehabilitate existing
affordable housing units, and support administering the City’s affordable housing programs.
ANALYSIS
The project includes forty-two (42) apartments, forty-one (41) of which will be deed-restricted
for qualifying affordable households with one (1) unit reserved as a manager’s unit. The
development will incorporate a mix of one, two, and three-bedroom apartments. The unit mix
and income levels are as follows:
UNIT TYPE Very Low & Extremely Low Income Low Income* TOTAL UNITS 30% AMI 45% AMI 50% AMI 55% AMI 60% AMI
1 Bedroom 6 0 0 0 0 6
2 Bedroom 3 9 0 4 8 24
3 Bedroom 4 0 3 1 3 11
Manager’s Unit - - - - - 1
TOTAL UNITS 13 9 3 5 11 42
*Low-income is defined as 80% of AMI. Units listed at 60% of AMI will count as low-income units for the city’s RHNA.
The project will include amenities including a clubhouse, a centralized courtyard with play
equipment, and enhanced energy efficiency. PSHH will be managing the property and the
Resident Services Coordinator will provide case management services. PSHH is the largest
nonprofit affordable housing developer on the Central Coast and was established in 1970. All
funds would be provided in the form of a soft loan for a term of 22-years at 3% simple interest.
The commitment of funds from the City allows PSHH to proceed to construction. The total
amount allocated to PSHH for this project would be $927,573 ($22,085.07 per unit).
REGIONAL HOUSING NEEDS ALLOCATION
When constructed, this affordable housing project will increase the City’s affordable housing
inventory and promote General Plan policies related to housing. Increasing affordable housing
will advance the City’s goals with regard to the General Plan Housing Element Regional Housing
Needs Assessment (RHNA), pursuant to state policy. For the current cycle (2019-2028), the City
has a remaining RHNA balance of 307 units: 203 extremely low/very low-income units, 8 low-
income units, 7 moderate-income units, and 89 market-rate units. The proposed project will
Page 113 of 116
10/14/2025 | Item H2 | Staff Report
provide 42 new units, 25 of which will count toward the extremely low/very low-income housing
allocation, 16 of which will count toward the low-income allocation, and one which will count
toward the moderate-income rate as an affordable by design unit.
ALTERNATIVE:
1. The City Council may recommend alternative amount and/or terms of agreement.
2. The City Council may request additional information and continue the item to a future
meeting.
3. The City Council may deny the use of additional inclusionary funds for the Del Rio Ridge
project.
FISCAL IMPACT:
PSHH is requesting an allocation of $527,573 from In Lieu Low/Moderate Income Housing Funds
in the form of a soft loan. The soft loan requested would be for a term of 22 years and at simple
interest rate of 3%. Allocation of these funds for the Del Rio Ridge project will leave a remaining
fund balance sufficient to cover on-going costs associated with the administration of the City’s
affordable housing program.
REVIEWED BY OTHERS:
This item has been reviewed by the City Attorney, Planning Manager, Community Development
Director, and Administrative Services Director.
REVIEWED AND APPROVED FOR COUNCIL AGENDA
____________________________________
James R. Lewis, City Manager
ATTACHMENT(S):
1. Funding Request Letter from PSHHC dated 09/26/2025
Page 114 of 116
10/14/2025 | Item H2 | Attachment 1
1060 Kendall Road, San Luis Obispo, CA 93401
Phone: (805) 781-3088 • Fax: (805) 544-1901
info@pshhc.org • pshhc.org
People’s Self-Help Housing Corporation
1060 Kendall Road
San Luis Obispo, CA 93401
October 8, 2025
Phil Dunsmore
Community Development Director
City of Atascadero
6500 Palma Ave
Atascadero, CA 93422
Subject: Request for City In-lieu and Deferred Impact Fee Loan Funds – Del Rio Ridge
Dear Mr. Dunsmore,
Peoples’ Self-Help Housing (PSHH) purchased the property at 2455 El Camino Real (APN 049-151-056) in June 2019.
The 1.95-acre site is planned for development into forty-two (42) affordable apartments serving households at or
below 60% of San Luis Obispo County’s area median income (AMI). The proposed development will provide a mix
of one-, two-, and three-bedroom units, including a resident manager’s unit, and will feature a community building
with resident services and amenities.
To support this important project, PSHH respectfully requests an allocation of both the City’s In-lieu Loan funds in
the amount of $400,000 and the Deferred Impact Fee (DIF) Loan funds in the amount of $527,573. Together, these
City resources, nearly $1 million in total, are critical to the financial feasibility of Del Rio Ridge. Commitment of
these local funds will demonstrate community support and provide the leverage necessary to secure significant
additional resources from state, federal, and private partners.
As you know, Del Rio Ridge has already been awarded CDBG-DR MHP Accelerator funding, which is structured
differently than our traditional tax credit projects. The City’s participation through the In-lieu and DIF loans will
ensure we can complete the project’s financing stack and move forward to deliver high-quality, affordable housing
in Atascadero.
Allocating these funds will directly support the City’s General Plan Housing Element goals and advance the Regional
Housing Needs Allocation (RHNA) requirements by producing 42 new affordable units—representing approximately
26% of the City’s Very Low and Low-income RHNA allocation from the most recent Housing Element cycle.
Our anticipated unit mix and income levels are as follows:
Unit Type 30% AMI 45% AMI 50% AMI 55% AMI 60% AMI Total
1 Bedroom 6 0 0 0 0 6
2 Bedroom 3 9 0 4 8 24
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10/14/2025 | Item H2 | Attachment 1
1060 Kendall Road, San Luis Obispo, CA 93401
Phone: (805) 781-3088 • Fax: (805) 544-1901
info@pshhc.org • pshhc.org
Unit Type 30% AMI 45% AMI 50% AMI 55% AMI 60% AMI Total
3 Bedroom 4 0 3 1 3 11
Manager’s -- -- -- -- -- 1
Total 13 9 3 5 11 42
In addition to providing deeply affordable units, Del Rio Ridge will dedicate:
5 units serving veterans
11 units serving homeless veterans
5 units serving homeless households
This project will also provide long-term community benefits through its resident services program, green building
features, and family-oriented amenities.
We respectfully request that both the In-lieu Loan and DIF Loan funds be allocated in the form of soft loans
requiring annual residual receipts payments, with standard affordable housing terms (55 years, 3% simple interest).
These commitments will provide the critical local investment needed to ensure the project’s success.
Thank you for your continued support of affordable housing in Atascadero. Please feel free to contact me at (805)
699-7239 or wills@pshhc.org if you have any questions or need additional information.
Sincerely,
Will Sholy
Senior Project Manager
Peoples’ Self-Help Housing
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