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HomeMy WebLinkAboutCC_2026_01_13_AgendaPacket https://us02web.zoom.us/webinar/register/WN_ZwJ7a031S3KXauEym9ehaA 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 AGENDA 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, 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: 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 administrative record. To ensure distribution to the City Council before consideration of an item, please submit comments not later than 12:00 p.m. the day of the meeting. 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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 CITY OF ATASCADERO REGULAR CITY COUNCIL MEETING AGENDA Tuesday, January 13, 2026, 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 Mayor Pro Tem Dariz 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 Draft Minutes - December 9, 2025, Regular Meeting 4 Recommendation: Council approve the December 9, 2025, City Council Regular Meeting minutes. [City Clerk] 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.ADU Ordinance Update 8 Fiscal Impact: Consistency with State law requires that the City allow ADUs on multi-family zoned properties prior to buildout. ADUs, per State law, pay no or reduced development impact fees. Allowing ADUs prior to, and in many cases instead of, the construction of primary units will result in less funds paid toward the City’s Development Impact Fees which may impact our ability to provide services and infrastructure. Under existing State law, the City does not have any alternatives to this requirement Recommendation: Planning Commission recommends Council: Introduce an ordinance for first reading, by title only, to amend Title 9, Planning & Zoning revising Chapter 5, Accessory Dwelling Units (ZCH25-0064), for consistency with State law and clarity related to development standards, and determining this ordinance is exempt from review under the California Environmental Quality Act. [Community Development] 2.4543 Yerba Avenue Nuisance Abatement Cost Recovery Hearing 27 Fiscal Impact: City incurred expenses in the amount of $7,269.60 plus County recording costs will be collected through the property tax rolls Recommendation: Council adopt Draft Resolution confirming abatement costs and authorizing the placement of a lien and levy of a special assessment to recover costs [City Attorney] H.MANAGEMENT REPORTS 1.Approval of Fiscal Year 2025 Annual Road Report 54 Fiscal Impact: Distribution of the 2025 Community Road Report is estimated to cost about $5,000 in budgeted General Funds. Recommendation: The Citizens’ Sales Tax Oversight Committee recommends Council: 1. Approve the Fiscal Year 2025 Annual Road Report. 2. Approve the 2025 Community Road Report. [Administrative Services/Public Works] 2.San Luis Obispo Council of Governments Draft Transportation Expenditure Plan for Potential Transportation Sales Tax Measure 77 Fiscal Impact: There is no immediate fiscal impact associated with this action. Recommendation: Council review and comment on San Luis Obispo Council of Governments Draft Transportation Expenditure Plan for potential transportation sales tax measure. [Public Works] 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 Page 2 of 92 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 2. City Clerk 3. City Treasurer 4. City Attorney 5. City Manager K.ADJOURNMENT Page 3 of 92 01/13/26 | Item D1 Atascadero City Council December 09, 2025 Page 1 of 4 CITY OF ATASCADERO CITY COUNCIL MEETING DRAFT MINUTES December 9, 2025, 6:00 p.m. City Hall Council Chambers, Fourth Floor 6500 Palma Avenue, Atascadero, California _____________________________________________________________________ A. REGULAR SESSION - CALL TO ORDER Mayor Bourbeau called the meeting to order at 6:00 P.M. B. PLEDGE OF ALLEGIANCE Mayor Bourbeau led the Pledge of Allegiance. C. ROLL CALL Present: Mayor Bourbeau, Mayor Pro Tem Dariz, Council Member Funk, Council Member Newsom, Council Member Peek 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. CONSENT CALENDAR 1. City Council Draft Minutes - November 12, 2025, Regular Meeting Recommendation: Council approve the November 12, 2025, City Council Regular Meeting minutes. [City Clerk] Page 4 of 92 01/13/26 | Item D1 Atascadero City Council December 09, 2025 Page 2 of 4 2. October 2025 Accounts Payable and Payroll Fiscal Impact: $ 5,493,155.68 Recommendation: Council approve certified City accounts payable, payroll and payroll vendor checks for October 2025. [Administrative Services] 3. September 2025 Investment Report Fiscal Impact: None Recommendation: Council receive and file the City Treasurer's report for quarter ending September 30, 2025 [Administrative Services] 4. City Council 2026 Meeting Schedule Fiscal Impact: None Recommendation: Council approve the City Council meeting schedule for 2026. [City Clerk] Mayor Bourbeau opened the Public Comment period. The following persons spoke on this item: None Mayor Bourbeau closed the Public Comment period. MOTION BY: Funk SECOND BY: Dariz 1. Approve Consent Calendar AYES (5): Bourbeau, Dariz, Funk, Newsom, and Peek Passed 5-0 E. UPDATES FROM THE CITY MANAGER City Manager Lewis gave an update on projects and issues within the City. F. COMMUNITY FORUM The following persons spoke: Wendy Lewis, Jeff Buckingham, Ron Barber, William Arkfeld G. PUBLIC HEARINGS 1. Fireworks; Social Host Ordinance Fiscal Impact: The Ordinance would require some administrative costs related to the processing and data entry of citations and payments collected on behalf of this Ordinance as well as education about the Ordinance. These costs are not known at this time but likely to be minimal. Citations/fines issued to violators would likely offset these costs to the City related to enforcement of the Ordinance and illegal fireworks activity in general. Page 5 of 92 01/13/26 | Item D1 Atascadero City Council December 09, 2025 Page 3 of 4 Recommendation: Council adopt, by four-fifths vote, an Urgency Ordinance amending title 4 (public safety) of the Atascadero Municipal Code to add chapter 8 (Fireworks Social Host Liability) to regulate social hosts who allow illegal fireworks. [Police Department] Police Chief Dan Suttles gave the presentation and answered questions from the City Council. Mayor Bourbeau opened the Public Comment period. The following persons spoke on this item: Stephen Owechko Mayor Bourbeau closed the Public Comment period. MOTION BY: Funk SECOND BY: Dariz 1. Council adopt, by four-fifths vote, Urgency Ordinance No. 690 amending title 4 (public safety) of the Atascadero Municipal Code to add chapter 8 (fireworks social host liability) to regulate social hosts who allow illegal fireworks. AYES (5): Bourbeau, Dariz, Funk, Newsom, and Peek Passed 5-0 H. 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 Council Member Funk 1. Homeless Services Oversight Council Council Member Newsom 1. City / Schools Committee 2. League of California Cities – Council Liaison 3. SLO Council of Governments (SLOCOG) Page 6 of 92 01/13/26 | Item D1 Atascadero City Council December 09, 2025 Page 4 of 4 Council Member Peek 1. City/Schools Committee I. INDIVIDUAL DETERMINATION AND / OR ACTION: 1. City Council a. Council Member Funk – Happy Hanukkah! b. Mayor Bourbeau noted there would be no 2nd meeting in December. J. ADJOURNMENT Mayor Bourbeau adjourned the meeting at 7:04 p.m. MINUTES PREPARED BY: ______________________________________ Alyssa Slater Deputy City Clerk APPROVED: Page 7 of 92 CITY OF ATASCADERO CITY COUNCIL STAFF REPORT Item G1 TO: PHIL DUNSMORE, COMMUNITY DEVELOPMENT DIRECTOR FROM: KELLY GLEASON, PLANNING MANAGER PREPARED BY: KELLY GLEASON, PLANNING MANAGER SUBJECT: ADU Ordinance Update RECOMMENDATION: Planning Commission recommends Council: Introduce an ordinance for first reading, by title only, to amend Title 9, Planning & Zoning revising Chapter 5, Accessory Dwelling Units (ZCH25-0064), for consistency with State law and clarity related to development standards, and determining this ordinance is exempt from review under the California Environmental Quality Act. DISCUSSION: BACKGROUND The City adopted an Accessory Dwelling Unit (ADU) ordinance in 2003. State law related to ADU’s constantly evolves and the City performed a comprehensive update to the ADU code text in January 2025. That update was sent to the State Department of Housing and Community Development (HCD) shortly following adoption. The State recently contacted the City after their review of the ordinance and has requested a number of minor changes for clarity. In addition, the State recently passed AB1154 which requires updates to regulations governing JADUs. Most other communities in our region have received similar letters from HCD requesting additional clarification and alignment with State law determinations. The Planning Commission reviewed this item on December 16, 2025, and recommended that the Council consider additional amendments to the allowable height of ADUs for flexibility on sloped lots, as discussed below. ANALYSIS The proposed text amendment would make minor modifications to the City’s ADU regulations intended to improve the ordinance’s clarity, efficacy, and consistency with State law. Most notably, the State has required an amendment to the municipal code section related to ADU’s developed on multi-family properties and setbacks for ADUs on both single-family and multi- family properties. Department: Community Development Date: 01/13/2026 Placement: Public Hearing Page 8 of 92 01/13/26 | Item G1 | Staff Report ADUs IN MULTI-FAMILY DISTRICTS The Municipal Code currently allows for ADU’s to be constructed on a multi-family zoned property only once the maximum site density has been achieved. The State has determined that the intent of State law is to allow ADU’s on any multi-family zoned site regardless of whether the site is built to maximum density. This would allow properties zoned multi-family to develop ADU’s prior to building out a site with its intended maximum density. New state law also allows the same number of ADUs to be built on a site as the existing number of primary (or standard multi-family units) units, up to a maximum of 8 per site. SETBACKS The existing ADU ordinance requires a minimum 10-foot side and rear setback if the ADU exceeds 1,000 square feet. The City adopted this to ensure neighborhood compatibility, especially on larger lots in our more rural areas. The State has reviewed this section and found it to be in conflict with the intent of State law, which has allowances for a 4-foot minimum side and rear setback. Draft AMC sections 9-5.050(a)(1) and 9-5.050(f) reflect the state mandates. JADU REGULATIONS (SB1154) SB1154 was passed in July 2025 and goes into effect January 1, 2026. This law eliminates the owner occupancy requirement for JADUs unless sanitation facilities are shared with the primary residence. Draft AMC section 9-5.060(e) and references in 9-5.050(i) illustrate these amendments. MINOR AMENDMENTS The proposed code text amendment includes minor changes intended to improve the clarity of the ordinance and its consistency with State law. Minor changes include:  Updating State law sections for cross reference.  Modifications to the section requiring deed notifications to eliminate language inconsistent with State law.  Added clarification that the addition of an ADU to a property does not trigger sprinkler requirements for the existing primary residence. PLANNING COMMISSION HEIGHT RECOMMENDATION The City’s ADU regulations directly adopt State law height standards for ADU’s. These heights are different than what is currently allowed on residential properties in Atascadero. Current code allows single-family residences to be built to a maximum height of 30 feet and multi-family buildings to be built to a maximum height of 35 feet. State ADU law sets the minimum height for ADU’s at:  16 feet for ADU’s on Single-family zoned properties and 18 feet for ADU’s on multi-family properties that do not meet standard setbacks  20 feet for ADU’s in single-family zones that meet standard setbacks  25 feet for ADU’s attached to an existing primary residence In addition, the City allows for ADU’s to be up to 25 feet in height if side and rear setbacks are increased to 15-feet. Page 9 of 92 01/13/26 | Item G1 | Staff Report The City’s current method of measuring height uses the maximum height of the structure measured from the average finished grade. Therefore, if a lot is steeply sloped, additional height may be needed to accommodate a standard 2-story structure. The Planning Commission did not make a formal recommendation but rather wanted Council to explore options for flexibility. 1. Measure height from the highest natural grade: This method would not look at the downhill elevation of the structure and only look at the uphill side to determine height. 2. Increase height by a set value for ADU’s on slopes over 20%: This would provide an increase in the measured height for ADU’s proposed on areas where the slope is 20% or greater. Height measurements would be calculated using existing code methodology. Per staff analysis, an increase of 5-feet would allow for a detached 2 story ADU on sloped areas. If the Council wants to consider increased height allowances for ADU’s on sloped areas, staff recommends maintaining the height measurement standard outlined in the existing code and increasing the allowed height by 5-feet. Code text could be added to section 9-5.050(e)(4) as follows: (4) Twenty-Five feet for any detached ADU that complies with the setbacks of the underlying zoning district and where the footprint of the unit is located on a slope of 20% or greater. CONCLUSION The proposed text amendment to the City’s ADU ordinance aims to ensure that local regulations align with State law. These updates address requirements for multifamily ADU development, setbacks, updated JADU requirements, while adding various minor changes for consistency and readability. 20% slope 30% slope Page 10 of 92 01/13/26 | Item G1 | Staff Report ENVIRONMENTAL DETERMINATION This Project is exempt from the California Environmental Quality Act (CEQA), Public Resources Code Section 21000 et seq., because it can be seen with certainty that there is no possibility that the enactment of this Ordinance would have a significant effect on the environment (Pub. Resources Code § 21065; CEQA Guidelines §§ 15378(b)(4), 15061(b)(3). FINDINGS To approve of a zone text amendment, the City Council must make the following findings. These findings and the facts to support these findings are included in the attached resolution. 1. The Planning and Zoning Text Change is consistent with General Plan policies and all other applicable ordinances and policies of the City; 2. This Amendment of the Zoning Ordinance will provide for the orderly and efficient use of lands where such development standards are applicable; 3. The Text Change will not, in itself, result in significant environmental impacts. ALTERNATIVES TO THE STAFF RECOMMENDATION: 1. The City Council may make modifications to the proposed code amendments. 2. The City Council may determine that more information is needed on some aspect of the amendments and may refer the item back to staff to develop the additional information. The Commission should clearly state the type of information that is required and move to continue the item to a future date. FISCAL IMPACT: Consistency with State law requires that the City allow ADU’s on multi-family zoned properties prior to buildout. ADU’s, per State law, pay no or reduced development impact fees. Allowing ADUs prior to, and in many cases instead of, the construction of primary units will result in less funds paid toward the City’s Development Impact Fees which may impact our ability to provide services and infrastructure. Under existing State law, the City does not have any alternatives to this requirement. REVIEWED BY OTHERS: This item has been reviewed by the Community Development Director and the City Attorney. REVIEWED AND APPROVED FOR COUNCIL AGENDA James R. Lewis, City Manager ATTACHMENT(S): 1. Draft Ordinance Page 11 of 92 01/13/26 | Item G1 | Attachment 1 DRAFT ORDINANCE ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, AMENDING TITLE 9, PLANNING & ZONING, TO REVISE CHAPTER 5, ACCESSORY DWELLING UNITS, FOR CONSISTENCY WITH STATE LAW AND CLARITY RELATED TO DEVELOPMENT STANDARDS, AND DETERMINING THIS ORDINANCE IS EXEMPT FROM REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT ACCESSORY DWELLING UNITS (ZCH25-0064) WHEREAS, the City of Atascadero is considering Zoning Code Text Change Amendments to Title 9 of the Atascadero Municipal Code for consistency with newly enacted State laws and HCD comments regarding existing ordinance consistency with State law; and WHEREAS, the State of California has adopted revisions, repeals, and amendments to Government Code Sections 66314 through 66323, in addition to Government Code Sections 66311.5, 66333, within the provisions of Assembly Bill 1154 and Senate Bill 543, which requires an update to existing City ordinances for consistency; and WHEREAS, ADUs and Junior ADUs do not count as additional residential density per State law for the purposes of zoning compliance and CEQA; and WHEREAS, the Planning Commission has determined that it is in the best interest of the City to enact these amendments to Chapter 5 of Title 9, Planning and Zoning, of the Municipal Code for consistency with State law and to maintain a clear and legible set of Zoning Regulations that is easily interpreted by the public and staff; and WHEREAS, the Planning Commission has determined that it is in the best interest of the City to enact these amendments to Chapter 5 of Title 9, Planning and Zoning, of the Municipal Code for consistency with State law and to maintain a clear and legible set of Zoning Regulations that is easily interpreted by the public and staff; and WHEREAS, a timely and properly noticed Public Hearing upon the subject Planning and Zoning Text Amendment application was held by the City Council of the City of Atascadero at which hearing evidence, oral and documentary, was admitted on behalf of said Planning and Zoning Text Amendment; and WHEREAS, the laws and regulations relating to the preparation and public notice of environmental documents, as set forth in the State and local guidelines for implementation of the California Environmental Quality Act (CEQA) have been adhered to; and Page 12 of 92 01/13/26 | Item G1 | Attachment 1 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ATASCADERO HEREBY ORDAINS AS FOLLOWS: SECTION 1. Recitals. The above recitals are true and correct and incorporated herein as if set forth in full. SECTION 2. Planning Commission Recommendation. The Planning Commission of the City of Atascadero, on December 16, 2025, held a timely and properly noticed Public Hearing upon the subject Zoning Text Amendment and associated actions, at which hearing evidence, oral and documentary, was admitted on behalf of said Amendment, and the Planning Commission recommended that City Council approve said Amendment. SECTION 3. Public Hearing. The City Council of the City of Atascadero, in a regular session assembled on January 13, 2026, resolved to approve a Zoning Code Text Amendment to update Title 9, Chapter 5, Accessory Dwelling Units, for consistency with State law and clarity relating to development standards (ZCH25-0064). SECTION 4. Findings. The City Council makes the following findings and determinations for approval of the proposed Zoning Text Amendment: 1. The Planning and Zoning Text Change is consistent with General Plan policies and all other applicable ordinances and policies of the City; Fact: The proposed amendment updates an existing chapter for consistency with State law. The updates are consistent with the City’s Housing Element and are intended to implement revisions to the Government Code associated with Senate Bill 543 and Assembly Bill 1154. 2. This Amendment of the Zoning Ordinance will provide for the orderly and efficient use of lands where such development standards are applicable; Fact: The proposed amendment will result in consistency with State law and clarify development standards for ease of understanding and implementation. Regulations in the Atascadero Municipal Code will continue to provide for the safe and orderly development of Accessory and Junior Accessory Dwelling Units consistent with State law. 3. The Text Change will not, in itself, result in significant environmental impacts. Fact: The State of California does not recognize accessory or junior accessory dwelling units as primary units for the purposes of determining density nor as projects for the purposes of environmental review. Standards in the Atascadero Municipal Code intended to minimize the environmental impact of ADU development are not proposed to be modified as part of this amendment. Page 13 of 92 01/13/26 | Item G1 | Attachment 1 SECTION 5. CEQA. This ordinance is exempt from the California Environmental Quality Act (CEQA), Public resources Code Section 21000 et seq., because it can be seen with certainty that there is no possibility that the enactment of this Ordinance would have a significant effect on the environment (Pub. Resources Code § 21065; CEQA Guidelines §§ 15378(b)(4), 15061(b)(3). SECTION 6. Approval. The City Council of the City of Atascadero, in a regular session assembled on January 13, 2026, introduces, for first reading by title only, an Ordinance that would amend Title 9, Chapter 5 of the Atascadero Municipal Code consistent with the following: EXHIBIT A: Amendments to Title 9, Chapter 5 SECTION 7. Interpretation. This Ordinance must be broadly construed in order to achieve the purposes stated in this Ordinance. It is the City Council’s intent that the provisions of this Ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Ordinance. SECTION 8. Preservation. Repealing of any provision of the Atascadero Municipal Code or of any previous Code Sections, does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this Ordinance’s effective date. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Ordinance. SECTION 9. Effect of Invalidation. If this entire Ordinance or its application is deemed invalid by a court of competent jurisdiction, any repeal or amendment of the Atascadero Municipal Code or other City Ordinance by this Ordinance will be rendered void and cause such previous Atascadero Municipal Code provision or other City Ordinance to remain in full force and effect for all purposes. SECTION 10. Severability. If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable. SECTION 11. Notice. The City Clerk is directed to certify the passage and adoption of this Ordinance, cause it to be entered into the City of Atascadero’s book of original ordinances, make a note of the passage and adoption in the records of this meeting and within fifteen (15) days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law. SECTION 12. Effective Date. This Ordinance will take effect on the 30th day following its final passage and adoption. Page 14 of 92 01/13/26 | Item G1 | Attachment 1 INTRODUCED at a regular meeting of the City Council held on January 13, 2026, and PASSED, APPROVED and ADOPTED by the City Council of the City of Atascadero, State of California, on ______________________. CITY OF ATASCADERO: ______________________________ Charles Bourbeau, Mayor ATTEST: ______________________________ Lara K. Christensen, City Clerk APPROVED AS TO FORM: ______________________________ Dave Fleishman, City Attorney Page 15 of 92 (a) The purpose of this chapter is to prescribe objective development and site regulations that apply, except where specifically stated, to accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs). This chapter is intended to implement Government Code Sections 66310 to 66342, as amended from time to time. Implementation of this chapter is meant to expand housing opportunities by increasing the number of smaller units available within existing neighborhoods while meeting Statewide housing goals and responding to wildfire and wastewater constraints. (b) The City recognizes opportunities to implement policies and programs of the Atascadero General Plan housing element providing for, and regulating, expanded housing opportunities for all persons within the community. (c) Implementation of this chapter is meant to expand housing opportunities for very low-, low- and moderate-income and/or elderly households by increasing the number of affordable by design and rental units available within existing neighborhoods. (d) As mandated in Section 66314 and 66319 of the Government Code, units that comply with this chapter are considered not to exceed the density limits prescribed by the General Plan and/or this title from residential zoning districts. § 9-5.020 Definitions. As used in this chapter: Accessory Dwelling Unit (ADU). ADUs are defined by Government Code Section 66313 to mean an attached or detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. ADUs shall include permanent provisions for living, sleeping, eating, cooking, and shall have a bathroom, and shall be located on the same parcel as the single family or multifamily dwelling per the standards set forth in this section. An accessory dwelling unit also includes an efficiency unit as defined in Section 17958.1 of the Health and Safety Code and a manufactured home as set forth in Section 18007 of the Health and Safety Code. Existing Structure. 1/13/26 | Item G1 | Attachment 1 | Exhibit A Amend Sections 9-5.010 through 9-5.070 as follows: § 9-5.010 Purpose. Page 16 of 92 residenceinternal to an existing or new primary dwelling unit that provides complete independent living facilities for one or more persons. A junior accessory dwelling unit may include separate sanitation facilities, or may share sanitation facilities with the existing structure. JADUs shall include permanent provisions for living and shall be located on the same parcel and within the same structure as the single-family dwelling. A JADU also includes an efficiency unit as defined in Section 17958.1 of the Health and Safety Code. Livable Space. A space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation. Primary Dwelling Unit. A primary dwelling unit (primary unit) is a principal or urban dwelling unit. Principal Dwelling Unit. An existing or new proposed dwelling unit on a residential zoned legal lot of record permitted as allowed by the City's zoning and allowed density of the parcel and not constructed under the provisions for Chapter 5 or Chapter 18 of this title. Any additional existing units above the base residential density shall be considered an ADU or UDU. New units built as part of an SB9 lot split shall not be considered a principal dwelling unit if a principal unit already exists on the parent parcel or new parcel that is created from the lot split. Residential Multifamily Development. 1/13/26 | Item G1 | Attachment 1 | Exhibit A For the purposes of this chapter and implementation of Government Code Section 66314, an existing accessory structure or existing primary structure is defined as a structure, or the confines of a structure, that has received a passed final inspection prior to January 1, 2020. Guesthouse. Guesthouses are defined as residential occupancy construction (R) structures permitted prior to 2004 with a full bathroom, partial kitchen, and are the same as a residential dwelling unit for the purposes of defining use and calculating fees. Junior Accessory Dwelling Unit (JADU). JADUs are defined by Government Code Section 66313 to mean a residential dwelling unit that is no more than 500 square feet in size and contained entirely within a single-family Page 17 of 92 1/13/26 | Item G1 | Attachment 1 | Exhibit A A residential multifamily property zoned for multiple principal dwelling units that has been developed with multi-family units as allowed by City zoning to the maximum allowed density and which shares access, parking, and/or amenities regardless of the number of underlying parcels. This may include, but is not limited to, attached or detached residential units, common interest subdivisions, and related residential development on a single or multiple lots developed as a single development project with a developable density of at least 10 units per acre. Residential Single-Family Property. A property zoned for single-family development with a base density of one dwelling unit per parcel. Short-Term Rental. Short-term rentals (vacation rental) shall be defined as rental units with stays of 30 consecutive calendar days or less per individual or party. Small-Lot Single-Family Subdivision. A subdivision with private side and rear yard areas built to a density of less than or equal to nine dwelling units per acre. Urban Dwelling Unit (UDU). A primary dwelling unit established or proposed to be developed in accordance with the standards, procedures, and requirements set forth under Government Code Section 65852.21 and Chapter 18 of Title 9, either as a primary or secondary primary unit on a parcel. § 9-5.030 General requirements. (a) Building Permit Required. A building permit application shall be required for the construction, occupancy, or conversion of any ADU or JADU. (b) Ministerial Review Process. An application for development of an ADU or JADU will be reviewed as a ministerial permit, without discretionary review or a hearing, if it meets all the requirements set forth in this section, does not impact environmental (including historic) resources, and after payment of all applicable submittal fees. (c) Garage Demolition. A demolition permit for a detached garage that is to be replaced with an ADU shall be reviewed with the application for the accessory dwelling unit and issued at the same time. Page 18 of 92 1/13/26 | Item G1 | Attachment 1 | Exhibit A (d) Water Service. All habitable dwelling units shall be served by a public water system. (e) Wastewater Service. To avoid health and safety impacts to ground water quality and nitrogen loading, ADUs shall be served by the City sanitary sewer system subject to one of the following exceptions: (1) The parcel is three-quarters (0.75) gross acres or greater and all of the following criteria can be met: (i) It can be demonstrated that all properties within a one-quarter mile radius are of sufficient size, considering possible future lot splits and full development potential, to provide a minimum density of at least one-half (0.5) acres per unit within the one quarter mile radius. (ii) It shall be demonstrated that a new or expanded on-site wastewater disposal system can accommodate the additional unit while meeting requirements of the City's Local Area Management Plan (LAMP). (2) The parcel contains a gross lot area of 0.5 acres per unit or greater, including existing units and all units proposed at the time of application. (i) For the purposes of this paragraph, "units" means all primary and accessory dwelling units, but shall not include Junior ADUs. (3) ADUs that do not meet the above requirements and do not have the ability to connect to City sewer must be served by an on-site wastewater system that includes pre-treatment and shall be subject to the approval of the City Engineer. These systems must be approved and constructed in accordance with the City's LAMP standards. (f) Design. The design of an ADU and/or JADU shall be consistent with any objective design standards listed in this chapter. (g) Short-Term Rental Prohibited. ADUs and JADUs developed in accordance with Government Code Sections 66314 to 66339 shall not be rented for terms of less than 30 days or less. (h) Illegal Unit. The construction, establishment, or occupancy of an ADU and/or JADU that has not received a valid construction permit and is contrary to the provisions of this chapter is declared to be unlawful and shall constitute a misdemeanor and a public nuisance. (i) Deed Notification Agreement Required. Prior to issuance of a building permit for the ADU, the property owner shall submit to the City an agreement deed covenant for Page 19 of 92 1/13/26 | Item G1 | Attachment 1 | Exhibit A recordation with the County Recorder in a form approved by the Community Development Director, which shall run with the land and include at a minimum the following provisions: (1) A prohibition on the sale of the ADU separate from the sale of the principal dwelling unit, unless specifically authorized by State law or a subsequent lot split is approved and recorded. (2) A restriction on the size and attributes of the ADU that conforms with Government code 6585266314. (3) (1) A prohibition on using the ADU as a short-term rental for periods of less than 30 days, as authorized by Government Code Section 66315 or less. (4) (2) Owner occupancy requirements for properties constructing or containing a JADU that shares sanitation facilities with the primary residence, as applicable. (5) (2) A statement that the restrictions shall be binding upon any successor owner of the property and that failure to comply with the restrictions shall result in legal action against the owner. § 9-5.040 Applicability. (a) Permitted Zoning Districts. Accessory and junior accessory dwelling units shall be allowed in all areas zoned to allow single-family or multifamily dwellings consistent with the standards of this section. ADUs shall not be allowed within the following locations: (1) Pursuant to the authority provided by Section 65852.21(f) of the Government Code, no accessory dwelling unit or junior accessory dwelling unit shall be permitted on any lot in a single-family zoning district if: (i) an urban lot split has been approved pursuant to Title 11; and (ii) two units (primary dwelling unit, UDU, ADU, or JADU) already exist or are approved for construction. (2) No ADUs shall be allowed inconsistent with the Title 14 California Code of Regulations Section 1273.08. (3) No ADU may be established in a commercial district unless all of the following conditions have been met: (i) The ADU is part of an approved mixed-use development; and (ii) The ADU is built above the ground floor.; and Page 20 of 92 1/13/26 | Item G1 | Attachment 1 | Exhibit A (iii) The ADU is within a mixed-use development that has reached its maximum allowable residential density. (4) No ADU may be established on a lot subdivided pursuant to Government Code Section 66499.41 ("the Starter Home revitalization Act Senate Bill 684"), as amended from time to time. § 9-5.050 Objective design standards for accessory dwelling units. Standards for the development of Accessory Dwelling Units (ADUs) shall be governed by this section. Each ADU shall be subject to compliance with the California Building Code and the following standards: (a) Maximum Floor Area. ADUs shall have a maximum floor area of 1,000 square-feet, except as follows: (1) A garage or other unconditioned space may be attached to an ADU provided any attached space with a non-R occupancy shall be limited to 300 square-feet, or 500 square-feet on lots one acre or greater. Any non-R occupancy space may be up to 500 square-feet if it is on a different level than the ADU and used for vehicle parking and the entirety of the ADU is located on a different floor with the exception of an entry and stairs. If an existing accessory structure is converted to an ADU and the size of the unconditioned space exceeds the maximum limit, the existing space may remain but shall not be expanded. (2) Properties may have a detached ADU up to 1,200 square feet when all of the following are met: (i) The property is a minimum of one gross acre; and (ii) The ADU has a setback of at least 10 feet from side and rear property lines; and (iii) The ADU height is limited to 18 feet; and (iv) All other property development standards applicable to the zoning district shall apply, unless specifically modified by State law. (3) Any dwelling unit other than the principal dwelling unit, that was established on the lot prior to the submittal of a complete application for a development pursuant to this chapter, may not be altered or expanded to a size greater than allowed by this chapter. No additional unconditioned space can be added if greater than the Page 21 of 92 or on the site of a designated historic property within a one-mile walking distance to public transit. (3) No parking shall be required when the ADU is part of a proposed or existing primary residence or a converted existing accessory structure. (4) No parking shall be required when there is a car-share vehicle available to the tenant of the ADU and located within one block of the ADU. (5) No parking shall be required when a permit application for an accessory dwelling unit is submitted concurrently with a permit application to create a new single- family dwelling or a new multifamily dwelling on the same lot, provided that the accessory dwelling unit and the parcel satisfy all other criteria listed in this chapter. (c) Replacement Parking. No replacement parking shall be required when a garage, carport, covered parking structure, or uncovered parking space is demolished in conjunction with the construction of an accessory dwelling unit or converted to an accessory dwelling unitparking spaces are removed or demolished to accommodate the construction of an ADU. (d) Accessory Structure Conversion. ADUs may be constructed within existing accessory structures subject to the following: (1) The size of the ADU shall comply with the size limitations set forth in subsection (a) above. (2) Any portions of the accessory structure not utilized for the ADU shall remain as non-habitable accessory space and shall be separated with a permanent wall from the interior space of the ADU. Any openings (doors) between the ADU and non- habitable space shall comply with building and fire code standards. (3) Conversions of existing legal accessory structures built prior to January 1, 2020, may be subject to different standards, consistent with Government Code Section 66323. 1/13/26 | Item G1 | Attachment 1 | Exhibit A maximum allowances described in subsection (a)(1) above. If existing units exceed the maximum size thresholds, no expansion or additions shall occur. (b) Required Parking. One off-street parking space (standard or tandem within a driveway) shall be required for each ADU, with the following exceptions: (1) No parking shall be required if the ADU is within one-half mile walking distance of public transit. (2) No parking shall be required when the ADU is within a designated historic district Page 22 of 92 1/13/26 | Item G1 | Attachment 1 | Exhibit A (e) Height. The maximum height of an ADU shall be as follows: (1) Sixteen feet for any detached ADU where the setback is less than the minimum required setbacks for the underlying zoning district. (2) Eighteen feet in a multifamily zone for any detached ADU where the setback is less than the required minimum setbacks for the zoning district if the multifamily dwelling on the same site is multi-story. (3) Twenty feet for any detached ADU that complies with the setbacks of the underlying zoning district. (4) Twenty-five feet if setbacks are increased to 15 feet from the side and rear property lines. (54) Twenty-five feet for an ADU that is attached to a primary dwelling. (65) No ADU shall exceed two stories. (f) Setbacks. An ADU shall maintain the following setbacks consistent with each zoning district and consistent with the California Building Code and Fire Code, unless reduced setbacks apply, consistent with Govt Code section 66321 66314 (d) (7). (1) Side Setback. A minimum of five feet except for the following: (i) ADUs that are 16 feet or less in height located on a lot with a proposed or existing primary residence may be set back a minimum of four feet from the side property line; (ii) ADUs that exceed 20 feet in height shall increase the side setback to 15 feet; (iii) ADUs that are 18 feet or less in height located on a lot with a proposed or existing multi-story multifamily building may be set back a minimum of four feet from the side property line. (2) Primary Street Frontage. Twenty-five feet for single-family properties, 15 feet for multifamily properties. (3) Corner Street Frontage. Ten feet. (4) Secondary Street Frontage. One half the front setback. (5) Rear. A minimum of 10 feet except for the following: Page 23 of 92 1/13/26 | Item G1 | Attachment 1 | Exhibit A (i) ADUs that are 16 feet or less in height located on a lot with a proposed or existing single-story primary residence may be setback a minimum of four feet from the rear property line. (ii) ADUs that exceed 20 feet in height shall increase the rear setback to 15 feet. (iii) ADUs that are 18 feet or less in height located on a lot with a proposed or existing multi-story multifamily building may be set back a minimum of four feet from the rear property line. (6) Access Way (Flag or Easement). Ten feet. (1) (7) No setback is required for an existing permitted structure or a structure constructed in the same location and to the same dimensions as an existing permitted structure that is converted to an accessory dwelling unit or to a portion of an accessory dwelling unit. (g) Building Separations. A minimum separation of five feet shall be maintained between a primary dwelling unit and a detached accessory dwelling unitMinimum fire and building code separations shall be maintained between primary and secondary units. (h) Fire Sprinklers. (1) An ADU shall comply with all applicable fire safety provisions of State law, as well as locally adopted building and fire codes under Chapter 4-7 and Title 8 of this code. (2) A detached ADU shall be required to be equipped with fire sprinklers unless the primary dwelling unit is not required to be sprinklered. The construction of an accessory dwelling unit shall not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling. (3) An attached ADU shall provide fire sprinklers per the standards for residential additions. (i) Number of ADUs Permitted. (1) Single-Family Zoned Parcels and Small-Lot Single-Family Subdivisions shall be allowed to construct accessory dwelling units consistent with Govt Code 66323 and section 9-5.060(c) of this Chapter. One ADU per parcel shall be permitted. If a lot contains the maximum number of allowed dwelling units no additional ADU or JADU shall be allowed. Page 24 of 92 1/13/26 | Item G1 | Attachment 1 | Exhibit A (2) Residential Multifamily/Mixed-Use Developments. ADUs shall be permitted in multifamily and mixed-use developments subject to the following: (i) Portions of an existing multifamily building not used as livable space may be converted to one or more ADUs at a maximum ratio of 25% of the existing on-site units above the permitted site density. (ii) In addition to the units authorized by subsection (i)(2)(i) above, additional detached accessory dwelling units above the permitted site density shall be permitted within a multifamily or mixed-use development at the following quantities: a. On a lot with an existing multifamily dwelling, eight detached accessory dwelling units, or a quantity equal to the number of existing principal dwelling units on the lot, whichever is fewer. b. On a lot with a proposed multifamily dwelling, not more than two detached accessory dwelling units. (iii) All residential units in a mixed-use development must meet the provisions of the underlying zoning district, except as provided for by Government Code Sections 66310 to 6643266342, and must be consistent with all land use definitions for such development. (3) If a site proposed for development contains one or more residential units that were constructed prior to designation as an ADU, JADU or UDU, and that site now exceeds its zoned density, those units must be designated as one of the permitted housing unit types prior to further development of the property. (j) Nothing in this section shall prohibit the construction of an ADU in accordance with Government Code Sections 66321(b)(3), 66321(b)(4)(B), 66321(b)(4)(C), and 66323. To the extent anything in this section conflicts with the provisions of the above-referenced Government Code sections, those Government Code sections shall control. § 9-5.060 Objective design standards for junior accessory dwelling units. Standards for the development of Junior Accessory Dwelling Units (JADUs) shall be governed by this section. Each JADU shall be subject to compliance with the California Building Code and the following standards: (a) Maximum Floor Area. Each JADU shall be constructed within the walls of an existing or proposed primary dwelling unit and shall be a maximum of 500 square feet. Page 25 of 92 1/13/26 | Item G1 | Attachment 1 | Exhibit A (b) Septic Systems. JADUs may be served by the system serving an existing or proposed primary unit or a secondary septic system, subject to the approval of the City Engineer and provisions of the City's LAMP. (c) Number of JADUs Permitted. One JADU is permitted per single-family residential property or small-lot single-family residential subdivision parcel. If a lot contains the maximum number of allowed dwelling units, no additional ADU or JADU shall be allowed. (d) Design Standards. (1) Each JADU may contain separate sanitation facilities or may share sanitation facilities with the principal dwelling unit. (2) Each JADU shall include a separate entrance from the main entrance to the existing or proposed principal dwelling unit and may include an interior entry to the main living area. (3) Each JADU shall, at a minimum, include an efficiency kitchen as defined by the building code and Government Code Section 66333(f)(1). (e) Owner Occupancy. The property owner shall reside on site and maintain primary residency in either a primary dwelling unit, ADU, or the JADU if the JADU shares sanitation facilities with the primary residence. (f) Nothing in this section shall prohibit the construction of a JADU in accordance with Government Code Section 66323. To the extent anything in this section conflicts with the provisions of Government Code Section 66323, Section 66323 shall control. § 9-5.070 Development fees. Accessory units, whether attached or detached, shall be exempt from development impact fees when the gross floor area is less than 750 square feet. Units 750 square feet and larger shall be subject to the City's adopted development impact fee schedule. Page 26 of 92 CITY OF ATASCADERO CITY COUNCIL STAFF REPORT Item G2 Department: City Attorney Date: January 13, 2026 Placement: Public Hearing TO: James R. Lewis, City Manager FROM: Dave Fleishman, City Attorney PREPARED BY: Taylor Foland, Assistant City Attorney SUBJECT: 4543 Yerba Avenue Nuisance Abatement Cost Recovery Hearing RECOMMENDATION: Council adopt Draft Resolution confirming abatement costs and authorizing the placement of a lien and levy of a special assessment to recover costs. DISCUSSION: The City Council is being asked to confirm the costs of abating the public nuisance located at 4543 Yerba Avenue, Assessor’s Parcel No. 028-151-017 (“Property”), and authorize the placement of a lien and levy of a special assessment to recover the City’s costs of abatement. BACKGROUND The Property has been the subject of numerous citizen complaints and enforcement actions beginning in around September 2020 regarding various local and state law violations, including, but not limited to unlawful outdoor accumulation of debris and waste, improper storage of abandoned and inoperative vehicles, accumulation and storage of combustible materials constituting a fire, health or safety hazard and failure to maintain safe, continuous and unobstructed paths of travel to and from the building. Notably, there have been two fires on the Property, one in March 2008 and another in September 2022, and several reports of illegal burning in 2023 and 2024. The City issued the property owner, Ms. Terri Stinson, multiple warning letters and several administrative citations related to the code violations and fire hazards. In addition, Code Enforcement Officer Ayla Tomac attempted to work with Ms. Stinson over the past several years to remedy these violations by setting up weekly meetings and inspections to encourage forward progress. Despite these efforts, the Property remained in violation of the Municipal Code, California Health and Safety Code, the International Property Maintenance Code and the California Fire Code. Page 27 of 92 01/13/2026 | Item G2 | Staff Report The property owner failed to timely abate the nuisance, so the City abated the nuisance conditions on the Property. Staff now seeks the City Council’s confirmation of abatement costs and authorization to place a lien and special assessment on the Property to recover those costs. NUISANCE ABATEMENT PROCESS As a brief review, Chapter 9-8 (Enforcement) of the City’s Municipal Code governs nuisance abatement procedures in the City. First, Section 9-8.107 requires the Enforcement Officer to determine that a nuisance exists and serve a Notice of Nuisance Abatement upon the property owner. This initial notice describes the nuisance condition(s) and orders completion of abatement within 30 days. (See AMC § 9-8.107(a)). If nuisance abatement is not completed at the end of the 30 days, the City may schedule a nuisance abatement hearing before the City Council. At the hearing, the City Council may determine the existence of a public nuisance, order the abatement of such nuisance within a reasonable time, and authorize the Enforcement Officer to abate the nuisance in the event abatement is not completed in accordance with the terms set by the Council at the hearing. On May 27, 2025, the City Council adopted Resolution No. 2025-028 declaring that a public nuisance exists on the Property and ordering the abatement thereof within 45 days of the property owner receiving the order of abatement. Under that Resolution, If the nuisance conditions were not abated by the property owner within this time, the City Council authorized the City to abate the nuisance conditions and assess the reasonable cost and expense of abating the nuisance against the Property as a lien, or as a special assessment. On August 20, 2025, the Court granted the City an abatement warrant authorizing the City to enter the Property “to remove debris and waste, inoperative vehicles, and combustible material in the front driveway, front yard and porch, side yards and back yard located on the parcel for the purpose of abating a public nuisance.” (See Exhibit A to Attachment 3). Under the authority of the warrant and after proper notice, the City contracted with Coyote Tractor Services LLC to abate the nuisance conditions on the Property on September 2-3, 2025. On September 9, 2025, the City filed a return of abatement warrant with the Court. (Attachment 3). Notice of this hearing has been provided to the property owner, which notice contained the required information under AMC §9-8.107(e), including the nature of the work done, an itemized account of the costs and receipts for the work, the amount of the proposed assessment, and a statement that the Council will hear and consider objections and protests to the proposed assessment. A copy of the notice is attached as Attachment 4. Upon confirmation of an assessment by the City Council, the Enforcement Officer will prepare and record a lien with the County Recorder. The Notice of Lien then will be delivered to the County Auditor who will enter the amount of the lien on the assessment roll as a special assessment, to be collected at the same time and in the same manner as ordinary County taxes. COSTS OF ABATEMENT Abatement involved the removal of trash, debris, scrap, junk, solid waste, recyclable materials, organic materials, combustible waste and vegetation, rodent harborages, stagnant water and similar materials and conditions. Page 28 of 92 01/13/2026 | Item G2 | Staff Report In total, the cost of abating the nuisance amounted to $7,269.60 based on the following itemized account of costs set forth in Attachment 2: Abatement Activity Amount Coyote Tractor Services; Remove debris and haul to dump $1,625.00 Coyote Tractor Services; Day 1 removal of debris by 3 Laborers ($45.00 per hour per Laborer) $1,215.00 Coyote Tractor Services; Day 2 removal of debris by 2 laborers ($45 per hour per Laborer) $810.00 Coyote Tractor Services; Rental of 2nd dump trailer for 2 days ($200 per day) $400.00 City of Atascadero; Code Enforcement Officer supervision of abatement ($160.98 per hour) (Sept. 2, 2025 – 10.25 hours; Sept. 3, 2025 – 9.75 hours) $3,219.60 In addition to these costs, there also may be County Fees for recording the lien. Staff recommends the City Council confirm a total amount of $7,269.60, plus any additional fees imposed by the County, to be included in the Notice of Lien. ALTERNATIVES TO THE STAFF RECOMMENDATION: 1. The City Council may modify the costs of abatement and authorize the modified amount be placed as a lien on the Property and levied as a special assessment. 2. The City Council may determine that no costs of abatement shall be placed as a lien on the Property and levied as a special assessment. FISCAL IMPACT: City incurred expenses in the amount of $7,269.60 plus County recording costs will be collected through the property tax rolls. REVIEWED BY OTHERS: This item has been reviewed by the Administrative Services Director and Assistant City Manager. REVIEWED AND APPROVED FOR COUNCIL AGENDA James R. Lewis, City Manager ATTACHMENT(S): 1.Draft Resolution 2.Receipt from Coyote Tractor Services LLC 3.Return of Abatement Warrant 4.Notice of hearing for imposition of lien Page 29 of 92 1/13/26 | Item G2 | Attachment 1 DRAFT RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA CONFIRMING THE COSTS EXPENDED IN THE ABATEMENT OF A PUBLIC NUISANCE AT 4543 YERBA AVENUE, ATASCADERO, CALIFORNIA 93422 (ASSESSOR PARCEL NUMBER 028-151-017) AND AUTHORIZING THE PLACEMENT OF LIEN AND SPECIAL ASSESSMENT TO RECOVER COSTS WHEREAS, from approximately September 2020 to present, City Code Enforcement Officers have responded to citizen complaints and conducted inspections of the property located at 4543 Yerba Avenue, Atascadero, California 93422 (APN 028-151-017) (“Property”); and WHEREAS, the legal owner of record of the Property is Ms. Terri Stinson (“Property Owner”); and WHEREAS, the City has issued the Property Owner multiple warning letters and administrative citations due to various Atascadero Municipal Code and adopted code violations related to the unlawful accumulation of debris and waste, improper storage of inoperative vehicles, accumulation and storage of combustible material constituting a fire, health or safety hazard, and failure to maintain safe, continuous and unobstructed paths of travel to and from the building; and WHEREAS, despite efforts by the City to engage with the Property Owner, the Property remained in violation of the Atascadero Municipal Code, the California Health and Safety Code, the International Property Maintenance Code and the California Fire Code; and WHEREAS, the Atascadero Municipal Code Section 9-8.106 defines a public nuisance as “Any condition declared by statute of the State or ordinance by the City to be a nuisance; Any public nuisance known at common law or equity; Any condition dangerous to human life, unsafe, or detrimental to the public health or safety; Any use of land, buildings, or premises established, operated, or maintained contrary the provisions of this title”; and WHEREAS, the Atascadero Municipal Code Section 12-1.02 provides that “any condition caused or permitted to exist in violation of any of the provisions of this Code, or its adopted Codes, shall be deemed a public nuisance…”; and WHEREAS, City Code Enforcement determined that a nuisance existed on the Property and on April 8, 2025, Code Enforcement personally served the Property Owner and posted conspicuously on the Property a Notice of Nuisance Abatement describing the nuisance conditions on the Property and ordering such conditions be abated within 30 days pursuant to Atascadero Municipal Code Section 9-8.107(a); and WHEREAS, on May 12, 2025, Code Enforcement inspected the Property and found the nuisance conditions had not been abated and personally served the Property Owner and posted conspicuously on the Property a Notice of Nuisance Abatement Hearing pursuant to Atascadero Municipal Code Section 9-8.107(b) notifying the Property Owner of a hearing before the City Page 30 of 92 1/13/26 | Item G2 | Attachment 1| Exhibit A Council on May 27, 2025 to determine the existence of a nuisance and order abatement thereof; and WHEREAS, on May 27, 2025, the City Council adopted Resolution No. 2025-028 declaring a public nuisance at the Property, ordering abatement thereof within 45 days of service of the Order to Abate, and authorizing the City to abate the nuisance if abatement is not timely completed; and WHEREAS, on June 11, 2025, the City served the Order to Abate on the Property Owner via certified mail and on July 31, 2025 after the 45-day abatement period had expired, Code Enforcement inspected the Property and found the nuisance conditions had not been abated; and WHEREAS, the City applied for and received an abatement warrant from the Superior Court of San Luis Obispo County to enter the Property to remove debris and waste, inoperative vehicles, and combustible material in the front driveway, front yard and porch, side yards and back yard located on the parcel for the purpose of abating a public nuisance; and WHEREAS, under the authority of the abatement warrant and after posting a copy of the warrant at the Property at least 24-hours before executive of the warrant and mailing a copy of the warrant to the Property Owner at least four days in advance of the warrant’s execution, the City’s contractor, Coyote Tractor Services LLC, abated the nuisance conditions on the Property on September 2 and 3, 2025; and WHEREAS, on December 8, 2025, the City sent a Notice of Hearing on Account of Costs and Proposed Levy of Nuisance Abatement Lien and Special Assessment to the Property Owner pursuant to Atascadero Municipal Code Section 9-8.107(e). The Notice contained an itemized account of the costs and receipts of performing the nuisance abatement work; and WHEREAS, pursuant to Atascadero Municipal Code Section 9-8.107(f), the City Council of the City of Atascadero conducted a public hearing regarding the costs of abatement and the placement of a lien and levy of special assessment to recover such costs at its duly noticed regularly scheduled meeting on January 13, 2026. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Atascadero: SECTION 1. The above recitals are true and correct and incorporated herein as factual findings in support of the action taken by this Resolution. SECTION 2. The itemized costs including incidental expenses of abating the Property as set forth in Exhibit A, attached hereto and incorporated herein by this reference, in the amount of $7,269.60 is confirmed as the total cost incurred by the City in abating the public nuisance. SECTION 3. The costs of abatement, plus any additional fees imposed by the County of San Luis Obispo, shall become a lien on the Property. The City Clerk, or their designee, shall Page 31 of 92 1/13/26 | Item G2 | Attachment 1| Exhibit A prepare and record a Notice of Lien with the County Clerk-Recorder of the County of San Luis Obispo. SECTION 4. The City Clerk, or their designee, shall transmit a copy of this Resolution together with the Notice of Lien and any other required documentation to the San Luis Obispo County Auditor so the amount of the lien can be entered upon the Property on the assessment roll as a special assessment. SECTION 5. The City Clerk shall certify to the adoption of this Resolution and hereafter the same shall be in full force and effect. PASSED AND ADOPTED at a regular meeting of the City Council held on the 13th day of January 2026. On motion by __________ and seconded by __________, 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 92 1/13/26 | Item G2 | Attachment 1| Exhibit A EXHIBIT A COSTS OF ABATING NUISANCE 4543 YERBA AVE, ATASCADERO, CA 93422 APN 028-151-017 Abatement Activity Amount Coyote Tractor Services; Remove debris and haul to dump $1,625.00 Coyote Tractor Services; Day 1 removal of debris by 3 Laborers ($45.00 per hour per Laborer) $1,215.00 Coyote Tractor Services; Day 2 removal of debris by 2 Laborers ($45 per hour per Laborer) $810.00 Coyote Tractor Services; Rental of 2nd dump trailer for 2 days ($200 per day) $400.00 City of Atascadero; Code Enforcement Officer supervision of abatement ($160.98 per hour) (Sept. 2, 2025 – 10.25 hours; Sept. 3, 2025 – 9.75 hours) $3,219.60 Administrative Costs Amount Pass through of County Fees TBD Total Amount to be Confirmed for the Lien $7,269.60 + County Fees Page 33 of 92 INVOICE Coyote Tractor Services llc 14680 Old Morro Road West atascadero, CA 93422-4697 coyotetractorservices@gmail.com +1 (805) 712-2812 http://www.coyotetractorservices.co m Bill to Atascadero Police Dept - Code Enforcement 5505 El Camino Real Atascadero Ca 93422 Ship to Atascadero Police Dept - Code Enforcement 5505 El Camino Real Atascadero Ca 93422 Invoice details Invoice no.: 1065 Terms: Net 15 Invoice date: 09/19/2025 Due date: 10/04/2025 #Product or service Description Qty Rate Amount 1.Dispossl Remove debris - haul to dump 13 $125.00 $1,625.00 2.Hours 3 Laborers to remove debris 1st day 9 hrs each 27 $45.00 $1,215.00 3.Hours 2 workers 2nd day 18 $45.00 $810.00 4.Dump Trailer Rental of 2nd dump trailer $200 per day 2 $200.00 $400.00 Ways to pay Total $4,050.00 Payment -$4,050.00 Balance due $0.00 Paid in Full 1/13/26 | Item G2 | Attachment 2 Page 34 of 92 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RETURN OF ABATEMENT WARRANT RICHARDS, WATSON & GERSHON A Professional Corporation DAVID M. FLEISHMAN, City Attorney (BAR NO. 156695) TAYLOR K. FOLAND (BAR NO. 333673) dfleishman@rwglaw.com 847 Monterey Street San Luis Obispo, California 93401 Telephone: 805.706.0962 Facsimile: 213.626.0078 Attorneys for Real Party in Interest, CITY OF ATASCADERO SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF SAN LUIS OBISPO IN THE MATTER OF THE APPLICATION OF THE CITY OF ATASCADERO FOR A WARRANT TO ABATE A PUBLIC NUISANCE AT 4543 YERBA AVENUE, ASSESSOR'S PARCEL NUMBER 028-151-017, ATASCADERO, CALIFORNIA, Real Party in Interest. Case No. 25CVP-0313 RETURN OF ABATEMENT WARRANT TO ENTER PROPERTY TO ABATE A PUBLIC NUISANCE [Report of Ayla Tomac and Warrant filed concurrently herewith] [Exempt from filing fees pursuant to Govt. Code § 6103] TO THIS HONORABLE COURT: The City of Atascadero (“City”) makes its return of the Abatement Warrant authorizing entry onto the real property at 4543 Yerba Avenue, Atascadero, California, Assessor’s Parcel No. 028-151-017, in the City of Atascadero, California for the purpose of abating nuisances thereon. The warrant is attached hereto as Exhibit A. On August 20, 2025, the Court granted the abatement warrant in this matter. As detailed in the attached report of City Code Enforcement Officer Ayla Tomac, under the authority of the warrant and after proper notice, and during the fourteen (14) day period that the warrant was valid, employees of the City and contractors entered the Property for the purpose of abating violations of the City of Atascadero Municipal Code. . 1/13/26 | Item G2 | Attachment 3 Page 35 of 92 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -2- RETURN OF ABATEMENT WARRANT Dated: September 4, 2025 RICHARDS, WATSON & GERSHON A Professional Corporation By: DAVID M. FLEISHMAN, City Attorney Attorneys for Real Party in Interest, CITY OF ATASCADERO 1/13/26 | Item G2 | Attachment 3 Page 36 of 92 1/13/26 | Item G2 | Attachment 3 Page 37 of 92 EXHIBIT A 1/13/26 | Item G2 | Attachment 3 Page 38 of 92 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -1- [PROPOSED] ABATEMENT WARRANT RICHARDS, WATSON & GERSHON A Professional Corporation DAVID M. FLEISHMAN, City Attorney (BAR NO. 156695) TAYLOR K. FOLAND (BAR NO. 333673) dfleishman@rwglaw.com 847 Monterey Street San Luis Obispo, California 93401 Telephone: 805.706.0962 Facsimile: 213.626.0078 Attorneys for Real Party in Interest, CITY OF ATASCADERO SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF SAN LUIS OBISPO IN THE MATTER OF THE APPLICATION OF THE CITY OF ATASCADERO FOR A WARRANT TO ABATE A PUBLIC NUISANCE AT 4543 YERBA AVENUE, ASSESSOR'S PARCEL NUMBER 028-151-017, ATASCADERO, CALIFORNIA, Real Party in Interest. Case No. [PROPOSED] ABATEMENT WARRANT [Filed concurrently with Application for Abatement Warrant; Declarations of David M. Fleishman and Ayla Tomac in support thereof] [Exempt from filing fees pursuant to Govt. Code § 6103] TO THE PEOPLE OF CALIFORNIA, CITY OF ATASCADERO, AND THEIR AGENTS: Upon application of the City of Atascadero (“City”) and for good cause shown: YOU AND YOUR AGENTS ARE HEREBY AUTHORIZED to enter on the real property at 4543 Yerba Avenue, Atascadero, Assessor’s Parcel Number 028-151-017 in Atascadero, California (the “Property”), to remove debris and waste, inoperative vehicles, and combustible material in the front driveway, front yard and porch, side yards and back yard located on the parcel for the purpose of abating a public nuisance. You may execute this warrant after posting a copy of the warrant at the Property at least twenty-four (24) hours before execution of the warrant and after a copy of the warrant is sent to the owner of the Property by first class mail to the owner’s mailing address at 1/13/26 | Item G2 | Attachment 3 Page 39 of 92 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -2- [PROPOSED] ABATEMENT WARRANT least four calendar days in advance of the warrant’s execution. After notice is provided as set forth herein, you may execute this warrant at any time between the hours of 8:00 a.m. and 6:00 p.m. The Property owner and any occupants of the Property need not be present when you execute this warrant. If present, they may not interfere with your abatement activities. This warrant is valid for fourteen (14) days following its issuance, unless extended or renewed by the judge whose signature is affixed below, based on the judge’s finding that such extension or renewal is in the public interest. The warrant shall be returned to the signing judge. Dated _______________________, 2025 ________________________________ JUDGE OF THE SUPERIOR COURT 1/13/26 | Item G2 | Attachment 3 Page 40 of 92 EXHIBIT B 1/13/26 | Item G2 | Attachment 3 Page 41 of 92 1/13/26 | Item G2 | Attachment 3 Page 42 of 92 1/13/26 | Item G2 | Attachment 3 Page 43 of 92 1/13/26 | Item G2 | Attachment 3 Page 44 of 92 1/13/26 | Item G2 | Attachment 3 Page 45 of 92 1/13/26 | Item G2 | Attachment 3 Page 46 of 92 1/13/26 | Item G2 | Attachment 3 Page 47 of 92 1/13/26 | Item G2 | Attachment 3 Page 48 of 92 1/13/26 | Item G2 | Attachment 3 Page 49 of 92 1/13/26 | Item G2 | Attachment 3 Page 50 of 92 1/13/26 | Item G2 | Attachment 3 Page 51 of 92 City of Atascadero POLICE DEPARTMENT Ayla Tomac Code Enforcement Officer NOTICE OF HEARING ON ACCOUNT OF COSTS AND PROPOSED LEVY OF NUISANCE ABATEMENT LIEN AND SPECIAL ASSESSMENT DELIVERED VIA POSTING ON NUISANCE PROPERTY AND PERSONAL SERVICE TO LEGAL OWNER OF PROPERTY [Issued Pursuant to Atascadero Municipal Code Section 9-8.107(f)] Date: December 8, 2025 Nuisance Property: 4543 Yerba Avenue Atascadero, CA 93422 APN 028-151-017 Issuing Agency: City of Atascadero Code Enforcement Ayla Tomac, Certified Code Enforcement Officer 5505 El Camino Real Atascadero, CA 93422 (805) 470-3191 Legal Owner: Terri Stinson This Legal Notice is issued pursuant to Chapter 9-8 of the Atascadero Municipal Code. On May 27, 2025, the City Council adopted Resolution No. 2025-028 declaring that a public nuisance exists on the Nuisance Property and ordering abatement thereof. On September 2, 2025 and September 3, 2025, under the authority of an abatement warrant issued by the Superior Court of San Luis Obispo County, the City and its contractor, Coyote Tractor Services LLC, abated the nuisance. Abatement of the nuisance involved removal of trash, debris, scrap, junk, solid waste, recyclable materials, organic materials, combustible waste and vegetation, rodent harborages, stagnant water and similar materials and conditions from the Nuisance. The total amount of assessment proposed to be levied is $7,269.60, plus County Fees based on the following itemized account of the costs and receipts of performing the abatement: 1/13/26 | Item G2 | Attachment 4 Page 52 of 92 Abatement Activity Amount Coyote Tractor Services*; Remove debris and haul to dump $1,625.00 Coyote Tractor Services*; Day 1 removal of debris by 3 Laborers ($45.00 per hour per Laborer) $1,215.00 Coyote Tractor Services*; Day 2 removal of debris by 2 laborers ($45 per hour per Laborer) $810.00 Coyote Tractor Services*; Rental of 2nd dump trailer for 2 days ($200 per day) $400.00 City of Atascadero; Code Enforcement Officer supervision of abatement ($160.98 per hour) (Sept. 2, 2025 – 10.25 hours; Sept. 3, 2025 – 9.75 hours) $3,219.60 * A copy of the receipt from Coyote Tractor Services for the performance of nuisance abatement on the Property is attached to this Notice. Administrative Costs Amount Pass through of County Fees TBD Total Abatement Costs $7,269.60 + County Fees YOU ARE HEREBY NOTIFIED that a hearing before the City Council shall occur on January 13, 2026 at 6:00 p.m. at 6500 Palma Avenue, Atascadero, California 93422 to confirm the costs of abating the nuisance and levy such costs as a special assessment. At this hearing the City Council will hear and consider objections and protests to said costs and the proposed assessment. Note that special assessments may be collected at the same time and in the same manner as is provided for the collection of ordinary taxes pursuant to Government Code Section 38773.5. Special assessments shall be subject to the same penalties, interest and procedures of foreclosure and sale in the case of delinquency as is provided for ordinary taxes. If you have any questions regarding this Notice of Hearing on Account of Costs and Proposed Levy of Nuisance Abatement Special Assessment, you may contact the Issuing Agency. 1/13/26 | Item G2 | Attachment 4 Page 53 of 92 CITY OF ATASCADERO CITY COUNCIL STAFF REPORT Item H1 Department: Administrative Services Date: 01/13/26 Placement: Management Report TO: JAMES R. LEWIS, CITY MANAGER FROM: JERI RANGEL, DIRECTOR OF ADMINISTRATIVE SERVICES PREPARED BY: CINDY CHAVEZ, DEPUTY DIRECTOR OF ADMINISTRATIVE SERVICES SUBJECT: Approval of Fiscal Year 2025 Annual Road Report RECOMMENDATIONS: The Citizens’ Sales Tax Oversight Committee recommends Council: 1. Approve the Fiscal Year 2025 Annual Road Report. 2. Approve the 2025 Community Road Report. DISCUSSION: On July 8, 2014, the Atascadero City Council adopted Ordinance No. 581, imposing a transactions and use tax. This Ordinance became operative when the majority of Atascadero voters approved it in November 2014. The additional half-cent started being collected on April 1, 2015, and the tax was set to expire on March 31, 2027, but the City Council placed a ballot measure on the November 2024 ballot to extend the current ½ cent per dollar sales tax and over 70% of the voting public voted Yes. Ordinance No. 581 outlines annual reporting requirements related to Measure F-14, among other items. Section 15 of the Ordinance requires the preparation of an Annual Road Report by the City to the Citizens’ Sales Tax Oversight Committee (CSTOC) for review. Section 15 of Ordinance No. 581 reads as follows: Section 15. ANNUAL ROAD REPORT. An Annual Road Report shall be prepared by the City no later than the last day of the sixth month following the end of each City fiscal year. The Report shall be submitted to the Citizens’ Oversight Committee for review. The Committee will submit Page 54 of 92 1/13/26 | Item H1 | Staff Report their findings and conclusions to the City Council. The Report will also be made available to the public. The Annual Road Report shall detail the prior fiscal year’s activities related to the retail transaction and use tax. The Report shall include revenues generated by the Transaction and Use Tax, expenditures (in summary form), funds carried over from previous fiscal years, and any remaining funds to be carried over for expenditure in subsequent fiscal years. In accordance with the Ordinance, the attached 2025 Annual Road Report was reviewed and approved by CSTOC at their December 10, 2025 meeting. CSTOC recommends that the City Council approve the 2025 Annual Road Report. 2025 COMMUNITY ROAD REPORT City staff created a Community Road Report (CRR) brochure that summarizes the F-14 Sales Tax Measure and background on how the City is proceeding with implementing the Measure. This brochure/handout is designed to complement the Annual Road Report. A summary of roadway work that occurred for the reporting period, as well as programmed work for the following year, is included in the CRR. Financials from the Annual Road Report are also summarized in the CRR. CSTOC reviewed the Community Road Report and recommends it be distributed via US mail to all properties in the City. The brochure will also be made available at City Hall and on the City’s website. FISCAL IMPACT: Distribution of the 2025 Community Road Report is estimated to cost about $5,000 in budgeted General Funds. REVIEWED BY OTHERS: This item has been reviewed by the Director of Administrative Services and the Public Works Director. REVIEWED AND APPROVED FOR COUNCIL AGENDA James R. Lewis, City Manager ATTACHMENTS: 1. Fiscal Year 2025 Annual Road Report 2. 2025 Community Road Report Page 55 of 92 Working together to serve, build community and enhance quality of life. City of Atascadero Citizens’ Sales Tax Oversight Committee Annual Road Report Fiscal Year 2025 1/13/26 | Item H1 | Attachment 1 Page 56 of 92 Working together to serve, build community and enhance quality of life. City of Atascadero ELECTED OFFICIALS Charles Bourbeau, Mayor Mark Dariz, Mayor Pro Tempore Susan Funk, Council Member Heather Newsom, Council Member Seth Peek, Council Member Jeri Rangel, City Treasurer CITIZENS’ SALES TAX OVERSIGHT COMMITTEE MEMBERS Robert “Grigger” Jones, Atascadero Chamber of Commerce, Chairperson Anton Kaul, Atascadero Little League Ellen Beraud, Atascadero Land Preservation Society Gary Elliott, Atascadero Veterans Memorial Foundation Dick Avery, Atascadero Pickleball Club Sharon Turner, Friends of Atascadero Library Vickie Rabourn, Atascadero Senior Center Natalie Harnett, At-Large Member Cate Norton, At-Large Member i 1/13/26 | Item H1 | Attachment 1 Page 57 of 92 Measure F-14 Sales Tax Projects Fund* Executive Summary……………………………………………………………………………………1 Financial Statements…………………………………………………………………………………..6 Certification of Citizens' Sales Tax Oversight Committee Chairperson…………………………7 Balance Sheet…………………………………………………………………………………………...…………………………..8 Statement of Revenues, Expenses, and Changes in Fund Balance………………………………………………...……...………………………………………..9 Detailed Statement of Revenues, Expenses, and Changes in Fund Balance- Fiscal Years 2015 through 2025………………………………………………...……...……………………………………….. 10 Revenues Summary………………………...………………………………………………………………………………16 Backup documentation available for inspection upon request *This fund is a sub-account of the General Fund and will be included with the General Fund audited financial statements. CITY OF ATASCADERO TABLE OF CONTENTS June 30, 2025 ii 1/13/26 | Item H1 | Attachment 1 Page 58 of 92 Executive Summary Revenues In November 2014, Atascadero voters approved Sales Tax Measure F-14, increasing the City sales tax rate by 0.5%. The additional half-percent sales tax revenue is the subject of this Annual Report. Retailers within the City limits of Atascadero began collecting the approved 0.5% sales tax on April 1, 2015. Measure F-14 was approved with a 12-year sunset clause, meaning it expires March 31, 2027. To continue the road improvements made possible with Measure F-14 funds, Measure L-24 was put on the ballot in November 2024. Atascadero residents approved Measure L-24, the Local Roads and Vital Services Funding Extension, with 71% voter approval. Measure L-24 will continue the half-cent sales tax originally approved through Measure F-14. Revenue collection from Measure L-24 will begin in 2027, when Measure F-14 sunsets. Retailers collect and submit sales tax revenues directly to the California Department of Tax and Fee Administration (CDTFA) on a monthly, quarterly, or annual reporting basis (as determined by the State). After the CDTFA has processed the payments and reports from the Retailers, the CDTFA remits payment to the City. The City generally receives these payments from the CDTFA about 60 days after the end of the month in which the sales took place. Although the flow of the cash does take extra time to get to the City’s account, the sales tax revenue is counted in the period when the sales took place. For example, the City received a sales tax payment from the CDTFA in late September 2024 for the sales that took place during the month of July 2024. The City counts that as July revenue, although it was received much later. The total Measure F-14 Sales Tax Revenue that was earned for the period July 2024 – June 2025 was $3,265,637. Expenditures Expenditures for repairing and maintaining neighborhood roads and other roadways involve a process designed to provide transparency and fairness. To achieve this, the City has implemented a “Critical Point Management” methodology that assists with the selection of road segments whose conditions are such that if repairs or maintenance is not performed in the near future, the road will deteriorate into a condition that will require more extensive and costly repairs. By repairing these roads now, the City is able to stretch the funding to repair and maintain additional neighborhood roads. The end result of Critical Point Management is prioritization of road repairs and maintenance with the objective of providing the lowest life cycle costs and optimizing the overall pavement conditions of the roadway system. Additionally, the Critical Point Management method identifies recommended periodic maintenance of roadways reconstructed on previous Measure F-14 projects. This maintenance typically includes crack sealing and resurfacing within 5-10 years, with the goal of ensuring that previous investments made in pavement replacement are maximized. Once selected, road segments are compiled into resurfacing or rehabilitation projects, which are designed and then advertised for construction to local contractors and throughout California in accordance with public contracting laws. Sealed bid proposals are received and evaluated, and then a contract is awarded to the lowest responsive bidder. Council approves contracts, if necessary, per the City’s purchasing policy. The contracts are executed and bonds and insurance provided by the Contractor. Construction begins and City staff provides project inspection and oversight. Once the project is ready to be publicly bid, construction typically begins approximately 60 to 90 days later. 1 1/13/26 | Item H1 | Attachment 1 Page 59 of 92 Executive Summary (continued) Expenditures (continued) A total of $5,522,365 was spent on five projects during the 2024-2025 fiscal year (7/1/24 to 6/30/25). It is difficult to have all costs for individual projects to occur during a single fiscal period given the time needed to design, bid, and construct roadway projects. In addition, the fiscal year ends June 30th during the middle of peak roadway construction season, which typically splits construction costs over two fiscal periods. A summary of the projects that incurred costs during the reporting period are included below. 2024 Pavement Rehabilitation Project This project incurred $4,797,729 in expenditures during the reporting period and includes the following road segments totaling 3.28 centerline miles: Road Segments in Measure F-14 2024 Rehabilitation Project Expenditures during this reporting period were related to the construction phase of the project, specifically the primary construction contract, contracted construction management and materials quality assurance, and survey monument perpetuation. Project design services were completed during the previous two reporting periods. Road Segment From To Length (ft) Width (ft.) Area (sf) PCI Before PCI After Ash St Catalpa St El Camino Real 447 30 13,410 22 100 Bella Vista Rd San Marcos Rd End 3,080 20 61,600 16 100 Birch St Catalpa St End 266 30 7,980 28 100 Carmelita Ave San Andres Ave Curbaril Ave 2,550 21 53,550 38 100 Catalpa St North End San Rafael Ct 1,225 30 36,750 27 100 Cuesta Ct San Rafael Rd End 720 33 23,760 31 100 Flores Rd Santa Lucia Rd Los Gatos Rd 1,102 20 22,040 20 100 Hermosa Ave Navarette Ave San Clemente Ave 1,010 19 19,190 29 100 Las Lomas Ave Principal Ave El Bordo Ave 1,480 22 32,560 30 100 Maple St Catalpa St El Camino Real 447 30 13,410 26 100 Monita Rd San Gabriel Rd Seirra Vista Rd 1,019 29 26,551 42 100 Montecito Ave East Front St El Camino Real 510 26 13,260 41 100 Montecito Ave El Camino Real Las Lomas Ave 355 26 9,230 38 100 Pinewood Ct Catalpa St End 244 30 7,320 22 100 San Diego Way El Camino Real US 101 NB Off Ramp 1,268 28 35,504 42 100 San Gabriel Rd East Front St El Camino Real 615 25 15,375 31 100 San Rafael Ct West End El Camino Real 650 33 21,450 49 100 Sierra Vista Rd San Marcos Rd Monita Rd 1,510 33 49,830 45 100 Willow Ct West End El Camino Real 150 33 4,950 20 100 Total 467,720 2 1/13/26 | Item H1 | Attachment 1 Page 60 of 92 Executive Summary (continued) Expenditures (continued) This project was predominantly full roadway rehabilitation (full section reconstruction). Portions of Las Lomas Avenue and Montecito Avenue were determined to be in generally good condition, which allowed for the use of resurfacing (crack sealing and cape sealing), as well as localized pavement dig outs and repairs, to extend the pavement life. Portions of Carmelita Avenue, Monita Road, San Diego Way, San Rafael Court, and Sierra Vista Road were determined to be only moderately degraded which allowed for the use of light rehabilitation (milling & overlaying), as well as localized pavement dig outs and repairs, to extend the pavement life. The 2023-2025 adopted City budget listed a total of 3.74 miles of roadway as part of the 2024 F-14 Rehab Project, which included two additional segments: Via Avenue from Traffic Way to Ensenada Avenue, and Ensenada Avenue from Via Avenue to Capistrano Avenue. However, the completion of the Via Avenue Bridge Project and work on nearby streets as part of the 2023 F-14 Rehab Project resulted in Council authorizing the Via Avenue and Ensenada Avenue segments being included with the 2023 F-14 Rehab Project for efficiency, and removed from the 2024 F-14 Project streets list above. Project design included pavement testing and geotechnical engineering recommendations, completed in September 2023, with engineering design commencing in November 2023 and completed by June 2024. A public bid opening occurred on June 20, 2024, and three bids were received ranging from $4,250,000 to $6,651,651, with the low bid submitted by Cen-Cal Construction of Bakersfield. The original 2023– 2025 project budget was $4,050,000; however, due to rising construction costs industry-wide, all bids exceeded the budget. Initially, staff considered rejecting the bids and reducing the project scope, but after further analysis, it was determined that proceeding with the full project was more cost-effective than delaying and facing even higher costs in the future. The bid from Cen-Cal was competitive and submitted by a reputable firm. Given the availability of fund balance in the Measure F-14 account, the City Council approved a $1,430,000 budget amendment on July 9, 2024, bringing the revised project budget to $5,480,000. The Council awarded the construction contract to Cen-Cal Construction on the same date, and work began in mid-August 2024. Construction for the 2024 F-14 Pavement Rehabilitation Project was completed in April 2025 and final construction costs totaled $4,518,829, or $268,829 more than the contract award price, but within the authorized project total with contingency. The total project cost, including design, construction, and construction contingency and management, was $5,242,789 and within the revised project budget of $5,480,000. 2024 Pavement Resurfacing Project This project incurred $451,653 in expenditures during the reporting period and includes the following road segments totaling 1.37 centerline miles: 3 1/13/26 | Item H1 | Attachment 1 Page 61 of 92 Executive Summary (continued) Expenditures (continued) Road Segments in Measure F-14 2024 Resurfacing Project Road Segment From To Length (ft) Width (ft.) Area (sf) PCI Before PCI After Capistrano Ave Lewis Ave Highway 41 744 34 25,296 84 95 Country Club Dr Capistrano Ave End 650 18 11,780 61 85 Del Rio Rd Potrero Rd San Anselmo Rd 4,075 25 101,875 64 85 San Andres Ave San Marcos Rd Santa Ynez Ave 797 22 17,534 76 90 San Andres Ave Santa Ynez Ave Highway 41 958 22 21,076 72 90 Total 177,561 Expenditures during this reporting period include design work & the preparation of plans and specifications, which were all performed in-house by City staff. A public bid opening occurred on July 25, 2024, and four bids were received ranging from $376,441 to $445,325 with the low bid received by Souza Construction, Inc. of San Luis Obispo. The City Council awarded a construction contract to Souza Construction, Inc. on August 13, 2024, and authorized an additional $50,000 of F-14 funds for a total project budget amount of $450,000. Construction began in mid-October 2024 and was completed in January of 2025. The total project cost, including design, construction, and construction contingency and management, was $457,406.90. This total slightly exceeded the revised project budget of $450,000 due to the damage condition of the roads being more severe in certain areas than was included in the initial bid document. This project included resurfacing (crack sealing and micro-surfacing), as well as localized pavement dig outs and repairs, to extend the pavement life of roadways that are generally in good condition. 2025 Pavement Rehabilitation Project This project incurred $271,315 in expenditures during the reporting period and includes the following road segments totaling 1.59 centerline miles: Road Segments in Measure F-14 2025 Rehabilitation Project Road Segment From To Length (ft) Width (ft.) Area (sf) PCI Before PCI After Los Osos Rd Old Morro Rd E San Rafael Rd 6,005 21 126,105 28 100 San Andres Ave Atascadero Ave Marchant Ave 1,470 24 35,280 43 100 San Dimas Rd Los Osos Rd Toloso Rd 940 22 20,680 41 100 Total 182,065 4 1/13/26 | Item H1 | Attachment 1 Page 62 of 92 Executive Summary (continued) Expenditures (continued) Expenditures during this reporting period are related to soliciting and reviewing proposals for professional engineering services to perform geotechnical testing and final design and prepare construction plans and specifications as well as a small portion of the construction of the project, which began in the last month of the fiscal year. The request for proposals was issued in June 2024, and the City Council approved a professional services agreement with Rick Engineering of San Luis Obispo on July 9, 2024, for $208,950 to perform this work. Construction plans and specifications were completed in April 2025 and issued for public bid solicitation. A public bid opening occurred on May 8, 2025, and five bids were received ranging from $1,843,967 to $3,061,890 with the low bid received by Souza Construction, Inc. of San Luis Obispo. The City Council awarded a construction contract to Souza Construction, Inc. on May 27, 2025. Construction work began in June of 2025 and was substantially completed by October of 2025. 2025 Pavement Resurfacing Project This project incurred $1,517 in expenditures during the reporting period and includes the following road segments totaling 3.22 centerline miles: Road Segments in Measure F-14 2025 Resurfacing Project Road Segment From To Length (ft) Width (ft.) Area (sf) 2024 PCI Carmelita Rd Curbaril Ave Portola Rd 1,659 25 41,475 92 Carmelita Rd Portola Rd San Gabriel Rd 2,647 21 55,587 90 Colorado Ave San Rafael Rd San Diego Way 2,634 21 55,314 68 Lake View Drive Portola Rd Santa Rosa Rd 2,975 24 71,400 78 Monterey Rd Graves Creek Rd San Anselmo Ave 3,866 32 123,712 82 Navajoa Ave Atascadero Ave San Andres Ave 590 30 17,700 73 San Andres Ave Santa Lucia Rd San Marcos Rd 1,750 22 38,500 85 Serra Ave Atascadero Ave San Andres Ave 870 20 17,400 68 Total 421,088 Expenditures during this reporting period were all attributable to City staff preparing design plans in- house. This project was originally scheduled for construction during FY 24/25, but during the preparation of the 2025-2027 budget, City staff identified the opportunity to decrease project costs by bidding it in a package with several other resurfacing projects scheduled to be constructed in FY 26/27. The project is scheduled to be bid in Spring of 2026 and completed by Fall of 2026. Fund Balance The amount of $1,189,066 remained in the Measure F-14 Sales Tax Projects Fund at the end of the fiscal year and will carry forward to the 2025-2026 fiscal year. Fund balance reserves from completed projects and higher than expected revenues are programmed to future roadway projects on the 5-Year Capital Improvement Program (CIP). The CIP is updated in conjunction with the budget process every two years. Estimated costs for CIP projects are updated and additional roadway segments are selected with any remaining fund balance. All Measure F-14 revenue is to be spent on roadway project costs. 5 1/13/26 | Item H1 | Attachment 1 Page 63 of 92 CITY OF ATASCADERO MEASURE F-14 SALES TAX PROJECTS FUND* FINANCIAL STATEMENTS June 30, 2025 *This fund is a sub-account of the General Fund and will be included with the General Fund audited financial statements. 6 1/13/26 | Item H1 | Attachment 1 Page 64 of 92 7 1/13/26 | Item H1 | Attachment 1 Page 65 of 92 2025 2024 ASSETS Cash and investments 706,243$ 2,866,374$ Receivables: Due from State of California 512,885 531,161 Interest receivable 2,787 18,012 Total assets 1,221,915 3,415,547 LIABILITIES Accounts payable 32,849 74,035 Total liabilities 32,849 74,035 FUND BALANCE Assigned 1,189,066 3,341,512 Total fund balance 1,189,066$ 3,341,512$ *This fund is a sub-account of the General Fund and will be included with the General Fund audited financial statements. CITY OF ATASCADERO BALANCE SHEET MEASURE F-14 SALES TAX PROJECTS FUND* June 30, 2025 and 2024 8 1/13/26 | Item H1 | Attachment 1 Page 66 of 92 2025 2024 Revenues: Sales tax 3,265,637$ 3,248,486$ Use of money and property 104,282 194,636 Total revenues 3,369,919 3,443,122 Expenditures: Capital Outlay: 2022 Pavement Rehabilitation - 235 2023 Pavement Rehabilitation - 3,659,149 2024 Pavement Rehabilitation 4,797,729 443,951 2024 Pavement Resurfacing 451,653 5,754 2025 Pavement Rehabilitation 271,315 2,848 2025 Pavement Resurfacing 1,517 - 2026 Pavement Rehabilitation 151 - Total expenditures 5,522,365 4,111,937 (2,152,446) (668,815) Fund balance - beginning of fiscal year 3,341,512 4,010,327 Fund balance - end of fiscal year 1,189,066$ 3,341,512$ *This fund is a sub-account of the General Fund and will be included with the General Fund in the City's audited financial statements. Net change in fund balance MEASURE F-14 SALES TAX PROJECTS FUND* CITY OF ATASCADERO For the Fiscal Years Ended June 30, 2025 and 2024 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE 9 1/13/26 | Item H1 | Attachment 1 Page 67 of 92 2015 - 2021 2022 2023 2024 2025 Total as of June 30, 2025 Revenues: Sales tax 14,660,490$ 3,212,014$ 3,177,914$ 3,248,486$ 3,265,637$ 27,564,541$ Interest Income 264,074 41,533 59,127 119,590 54,358 538,682 Adjustment to Fair Market Value 52,964 (157,734) (19,806) 75,046 49,924 394 Total revenues 14,977,528 3,095,813 3,217,235 3,443,122 3,369,919 28,103,617 Expenditures: Alamo Avenue (Rosario Ave to Barrenda Ave)40,181 - - - - 40,181 Honda Avenue (Traffic Way to Barrenda Ave)41,096 - - - - 41,096 2016 Pavement Resurfacing Arena Road (San Benito Rd to San Anselmo Rd)88,460 - - - - 88,460 Arena Road (San Anselmo Rd to Yerba Ave)31,603 - - - - 31,603 Castano Avenue (Curbaril Ave to Palomar Ave)44,650 - - - - 44,650 San Vicente Avenue (San Jacinto Ave to North end)27,683 - - - - 27,683 Yerba Avenue (Estrada Ave to Dolores Ave)35,191 - - - - 35,191 2016 Pavement Rehabilitation Cascabel Rd (North end to Santa Lucia Rd)505,309 - - - - 505,309 Los Gatos Rd (Santa Lucia Rd to San Marcos Rd)438,911 - - - - 438,911 San Andres Ave (Santa Lucia Rd to San Marcos Rd)282,700 - - - - 282,700 San Clemente Ave (Portola Rd to San Marcos East)287,905 - - - - 287,905 Valle Ave (Curbaril Ave to Palomar Ave)224,677 - - - - 224,677 2017 Pavement Resurfacing Colorado Ave (San Rafael Rd to San Diego Wy)44,007 - - - - 44,007 Estrada Ave (San Anselmo Rd to San Jacinto Ave)31,028 - - - - 31,028 La Linia Ave (West end to El Dorado Rd)41,669 - - - - 41,669 Navajoa Ave (Santa Ynez Ave to Curbaril Ave)101,174 - - - - 101,174 Serra Ave (Atascadero Ave to San Andres Ave)13,843 - - - - 13,843 Sycamore Rd (Hidalgo Ave to Miramon Ave)11,695 - - - - 11,695 Alcantara Ave (Marchant Ave N to Marchant Ave S)139,466 - - - - 139,466 CITY OF ATASCADERO MEASURE F-14 SALES TAX PROJECTS FUND* STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE Fiscal Years Ended June 30, 2015 through June 30, 2025 *This fund is a sub-account of the General Fund and will be included with the General Fund in the City's audited financial statements. 1/13/26 | Item H1 | Attachment 1 Page 68 of 92 2015 - 2021 2022 2023 2024 2025 Total as of June 30, 2025 Expenditures (continued): 2017 Pavement Resurfacing (continued) Carmelita Road (Curbaril Ave to Portola Rd)226,543$ -$ -$ -$ -$ 226,543$ Carmelita Road (Portola Road to San Gabriel Rd)391,971 - - - - 391,971 Cortez Ave (Maleza Ave to Curbaril Ave)98,058 - - - - 98,058 Monterey Road (Campo Rd to San Anselmo Rd)673,875 - - - - 673,875 2018 Pavement Rehabilitation Capistrano (Sycamore to West Mall) Resurface 192,077 - - - - 192,077 Nogales Ave (Dolores Ave to San Jacinto Ave)257,159 - - - - 257,159 Nogales Ave (San Jacinto Ave to Dulzura Ave)42,270 - - - - 42,270 Rosario Ave (Traffic Way to Alamo)53,147 - - - - 53,147 Rosario Ave (Alamo Ave to Gancho Ave)232,898 - - - - 232,898 Rosario Ave (Gancho Ave to Bajada Ave)151,432 - - - - 151,432 Rosario Ave (Bajada Ave to Fresno Ave)45,480 - - - - 45,480 Rosario Ave (Fresno Ave to Olmeda Ave)36,231 - - - - 36,231 Rosario Ave (Olmeda Ave to El Camino Real)81,950 - - - - 81,950 San Benito Road (Colima Road to Traffic Way)167,742 - - - - 167,742 Tunitas Ave (Bajada Ave to Traffic Way)210,325 - - - - 210,325 2019 Pavement Rehabilitation Balboa Road (San Fernando Rd to Graves Creek Rd)938,025 - - - - 938,025 Garcia Road (Santa Cruz Rd to San Gregorio Rd)473,903 - - - - 473,903 Monterey Road (Del Rio Rd to Campo Rd)181,604 - - - - 181,604 Navarette Ave (Santa Lucia Rd to San Marcos Rd)487,007 - - - - 487,007 Del Rio Road (Monterey Rd to San Gregorio Rd)122,726 - - - - 122,726 San Gregorio Road (Del Rio Rd to Garcia Rd)91,443 - - - - 91,443 2020 Pavement Rehabilitation Gabarda Road (Curbaril Ave to Tampico)157,425 555 - - - 157,980 Gabarda Road (Tampico to End)120,524 401 - - - 120,925 Junipero Avenue (El Camino Real to End)305,841 1,444 - - - 307,285 CITY OF ATASCADERO MEASURE F-14 SALES TAX PROJECTS FUND* STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE (continued) Fiscal Years Ended June 30, 2015 through June 30, 2025 *This fund is a sub-account of the General Fund and will be included with the General Fund in the City's audited financial statements. 1/13/26 | Item H1 | Attachment 1 Page 69 of 92 2015 - 2021 2022 2023 2024 2025 Total as of June 30, 2025 Expenditures (continued): 2020 Pavement Rehabilitation (continued) Palomar Avenue (El Camino Real to Castano Ave)368,902$ 1,614$ -$ -$ -$ 370,516$ Pueblo Avenue (El Camino Real to Sombrilla Ave)199,211 597 - - - 199,808 Robles Avenue (Santa Ysabel Ave to Sombrilla Ave)87,072 177 - - - 87,249 Sinaloa Avenue (Pueblo Ave to Curbaril Ave)147,541 505 - - - 148,046 Sombrilla Avenue (Robles Ave to End)192,398 560 - - - 192,958 Sombrilla Avenue (Robles Ave to Curbaril)253,582 785 - - - 254,367 Sonora Avenue (Valle Ave to Pinal Ave)234,709 416 - - - 235,125 Valle Avenue (North End to Escarpa Ave)228,145 555 - - - 228,700 Valle Avenue (Escarpa Ave to Curbaril Ave)359,097 1,333 - - - 360,430 2021 Pavement Rehabilitation Alegre Ave (Atascadero Ave to End)4,986 54,709 - - - 59,695 Coromar Ave (Marchant Ave to Curbaril Ave)5,084 34,916 - - - 40,000 Coromar Ave (Curbaril Ave to Via Tortuga)19,061 130,929 - - - 149,990 Coromar Ave (Via Tortuga to Portola Rd)17,016 116,879 - - - 133,895 La Paz Ln (Atascadero Rd to End)21,192 198,259 - - - 219,451 Marchant Way (Pismo Ave to Santa Rosa Rd)24,845 442,466 - - - 467,311 Marchant Ave (Coromar Ave to Curbaril Ave)10,369 43,455 - - - 53,824 Marchant Ave (Curbaril Ave to Atascadero Ave)11,935 50,039 - - - 61,974 Old Morro Rd East (Hwy 41 West to Hwy 41 East)30,853 296,491 - - - 327,344 Pismo Ave (Hwy 41 to Marchant Way)10,408 205,006 - - - 215,414 San Diego Rd (Atascadero Ave to Colorado Rd)12,094 227,619 1,770 - - 241,483 San Diego Rd (Colorado Rd to Hwy 101 On Ramp)23,269 437,933 1,769 - - 462,971 San Guillermo Ln (San Gabriel Rd to End)9,960 138,716 - - - 148,676 San Rafael Rd (San Gabriel Rd to Los Osos Rd)27,850 286,119 - - - 313,969 MEASURE F-14 SALES TAX PROJECTS FUND* STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE (continued) Fiscal Years Ended June 30, 2015 through June 30, 2025 CITY OF ATASCADERO *This fund is a sub-account of the General Fund and will be included with the General Fund in the City's audited financial statements. 1/13/26 | Item H1 | Attachment 1 Page 70 of 92 2015 - 2021 2022 2023 2024 2025 Total as of June 30, 2025 Expenditures (continued): 2021 Pavement Resurfacing El Dorado Rd (Santa Fe Rd to La Lina Ave)50$ 57,615$ -$ -$ -$ 57,665$ Halcon Rd (Viejo Camino to Calle Milano)158 39,856 - - - 40,014 Las Lomas Ave ( North End to Principal Ave)76 67,925 918 - - 68,919 Mountain View Dr (Portola Rd to Santa Rosa Rd)146 56,403 - - - 56,549 Plata Ln (West End to ECR)64 14,843 - - - 14,907 Pueblo Ave (San Luis to ECR)54 55,847 - - - 55,901 San Gabriel (Atascadero Rd to West Front Rd)120 53,419 - - - 53,539 San Luis Ave (Pueblo Ave to Curbaril Ave)108 33,393 - - - 33,501 San Rafael Rd (Atascadero Ave to West Front Rd)218 53,081 - - - 53,299 Solano Ave (ECR to La Lina Ave)62 14,375 - - - 14,437 2022 Pavement Rehabilitation Ardilla Rd (North End to Balboa)4,354 29,343 521,083 - - 554,780 Balboa Rd (Santa Ana to San Fernando)8,513 57,374 915,845 - - 981,732 Cebada Rd (Santa Ana to End)4,381 29,523 271,594 - - 305,498 Cenegal Rd (End to Laurel Rd)9,384 63,223 1,010,585 235 - 1,083,427 Corriente Rd (San Fernando to Santa Ana)4,499 30,322 438,976 - - 473,797 2023 Pavement Rehabilitation Cabrillo Ave (Ensenada to Capistrano)- 3,391 24,823 369,795 - 398,009 Capistrano Ave (West Mall to Lewis)- 4,638 33,929 311,718 - 350,285 Dolores Ave (San Anselmo to San Jacinto)- 4,934 36,114 751,163 - 792,211 Ensenada Ave (North End to Capistrano)- 3,050 22,317 415,268 - 440,635 Ensenada Ave (Via to Capistrano)- 987 7,220 56,120 - 64,327 Magdelena Ave (End to End)- 1,943 14,216 243,239 - 259,398 Magnolia Ave (Capistrano to End)- 2,557 18,720 240,195 - 261,472 Mercedes Ave (Capistrano to Highway 41)- 1,672 12,228 152,265 - 166,165 Navidad Ave (El Verano to San Jacinto)- 2,375 17,381 315,926 - 335,682 Palma Ave (Traffic Way to Rosario)- 1,532 11,201 193,554 - 206,287 San Ardo Ave (Arena to Dolores)- 2,158 15,791 248,193 - 266,142 Sycamore Rd (Miramon South to Capistrano)- 1,033 7,562 21,030 - 29,625 CITY OF ATASCADERO MEASURE F-14 SALES TAX PROJECTS FUND* STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE (continued) Fiscal Years Ended June 30, 2015 through June 30, 2025 *This fund is a sub-account of the General Fund and will be included with the General Fund in the City's audited financial statements. 1/13/26 | Item H1 | Attachment 1 Page 71 of 92 2015 - 2021 2022 2023 2024 2025 Total as of June 30, 2025 Expenditures (continued): 2023 Pavement Rehabilitation (continued) Valentina Ave (Dolores to Alamo)-$ 1,879$ 13,752$ 81,316$ -$ 96,947$ Via Ave (Traffic Way to Ensenada)- 2,104 15,402 259,368 - 276,874 2024 Pavement Rehabilitation Ash St (Catalpa to ECR)- - 32 12,701 149,704 162,437 Bella Vista Rd (San Marcos to End)- - 146 58,364 724,123 782,633 Birch St (Catalpa to End)- - 19 7,557 71,009 78,585 Carmelita Ave (San Andres to Curbaril)- - 127 50,719 436,114 486,960 Catalpa St (North End to San Rafael)- - 87 34,806 442,763 477,656 Cuesta Ct (San Rafael to End)- - 57 22,506 230,705 253,268 Flores Rd (Santa Lucia to Los Gatos)- - 46 18,980 295,442 314,468 Hermosa Ave (Navarette to San Clemente)- - 45 18,176 246,876 265,097 La Lomas Ave (Principal to El Bordo)- - 76 30,840 407,846 438,762 Maple St (Catalpa to ECR)- - 32 12,701 127,246 139,979 Monita Rd (San Gabriel to Sierra Vista)- - 70 27,988 248,547 276,605 Montecito Ave (East Front to ECR)- - 31 12,557 126,169 138,757 Montecito Ave (ECR to Las Lomas)- - 23 8,739 87,816 96,578 Pinewood Ct (Catalpa to End)- - 17 6,931 130,799 137,747 San Diego Way (ECR TO US 101 NB Ramp)- - 84 33,626 327,260 360,970 San Gabriel Rd (East Front to ECR)- - 37 14,562 236,192 250,791 San Rafael Ct (West End to ECR)- - 52 20,314 153,227 173,593 Sierra Vista Rd (San Marcos to Monita)- - 117 47,197 290,065 337,379 Willow Ct (West End to ECR)- - 12 4,686 65,826 70,524 2024 Pavement Resurfacing Capistrano Ave (Lewis to Hwy 41)- - - 820 120,494 121,314 Country Club Dr (Capistrano to End)- - - 381 18,836 19,217 Del Rio Rd (Portrero to San Anselmo)- - - 3,303 219,961 223,264 San Andres Ave (San Marcos to Santa Ynez)- - - 568 50,909 51,477 San Andres Ave (Santa Ynez to Hwy 41)- - - 682 41,453 42,135 CITY OF ATASCADERO MEASURE F-14 SALES TAX PROJECTS FUND* STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE (continued) Fiscal Years Ended June 30, 2015 through June 30, 2025 *This fund is a sub-account of the General Fund and will be included with the General Fund in the City's audited financial statements. 1/13/26 | Item H1 | Attachment 1 Page 72 of 92 2015 - 2021 2022 2023 2024 2025 Total as of June 30, 2025 Expenditures (continued): 2025 Pavement Rehabilitation Los Osos Rd (Old Morro E to San Rafael)-$ -$ -$ 1,968$ 187,482$ 189,450$ San Andres Ave (Atascadero to Marchant)- - - 556 52,967 53,523 San Dimas Rd (Los Osos to Toloso)- - - 324 30,866 31,190 2025 Pavement Resurfacing Carmelita Rd (Curbaril to Portola)- - - - 149 149 Carmelita Rd (Portola to San Gabriel)- - - - 200 200 Colorado Ave (San Rafael to San Diego)- - - - 199 199 Lake View Dr (Portola to Santa Rosa)- - - - 257 257 Monterey Rd (Graves Creek to San Anselmo)- - - - 446 446 Navajoa Ave (Atascadero to San Andres)- - - - 64 64 San Andres Ave (Santa Lucia to San Marcos)- - - - 139 139 Serra Ave (Atascadero to San Andres)- - - - 63 63 2026 Pavement Rehabilitation Andrita Rd (Casanova to Sierra Vista)- - - - 16 16 Graves Creek (Monterey to San Fernando)- - - - 67 67 Graves Creek (San Fernando to Santa Ana)- - - - 22 22 Monterey Ct (Monterey Rd to End)- - - - 11 11 Ramage Dr (Portola to End)- - - - 7 7 Santa Ynez Ave (Atascadero to San Andres)- - - - 18 18 Venado Ave (Ardilla to Chauplin)- - - - 10 10 10,502,670 3,363,273 3,414,306 4,111,937 5,522,365 26,914,551 Net change in fund balance 4,474,858 (267,460) (197,071) (668,815) (2,152,446) 1,189,066 Fund Balance- beginning of year - 4,474,858 4,207,398 4,010,327 3,341,512 - Fund Balance- end of year 4,474,858$ 4,207,398$ 4,010,327$ 3,341,512$ 1,189,066$ 1,189,066$ CITY OF ATASCADERO MEASURE F-14 SALES TAX PROJECTS FUND* STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE (continued) Fiscal Years Ended June 30, 2015 through June 30, 2025 *This fund is a sub-account of the General Fund and will be included with the General Fund in the City's audited financial statements. 1/13/26 | Item H1 | Attachment 1 Page 73 of 92 Sales Check Check Month Date Amount July 2024 9/24/2024 306,915$ August 2024 10/24/2024 211,740 September 2024 11/22/2024 258,593 October 2024 12/24/2024 328,756 November 2024 1/24/2025 233,878 December 2024 2/25/2025 311,581 January 2025 3/21/2025 301,183 February 2025 4/24/2025 212,785 March 2025 5/27/2025 265,207 April 2025 6/23/2025 322,113 May 2025 7/24/2025 287,291 June 2025 8/26/2025 225,595 Total Revenue 3,265,637$ Measure F-14 Sales Tax Revenue Summary 16 1/13/26 | Item H1 | Attachment 1 Page 74 of 92 City of Atascadero6500 Palma AvenueAtascadero CA 93422POSTAL CUSTOMERPresorted StandardU.S. POSTAGEAtascadero, CAPermit No. 79PAIDECRWSSMeasure F-14 Funds 2026 F-14 Rehabilitation Project $1,810,000 2025 F-14 Resurfacing Project $1,100,000 Del Rio Road LEGEND: 2026 F-14 PROJECTS 2016 - 2025 F-14 PROJECTS 2026 NON F-14 PROJECTS Traffic WayCurbaril Ave.El Ca mi no Re alAt a s ca d e r o Ave .Port ol a Rd. C i t y o f A t a s c a d e r o 2 0 2 5 C O M M U N I T Y R O A D R E P O R T A p p r o v e d J a n u a r y 2 0 2 6For more information visit: www.atascadero.org/measure-f14 W H A T T O E X P E C T I N 2 0 2 6 Carmelita Rd. - Curbaril Ave. to Portola Rd. Carmelita Rd. - Portola Rd. to San Gabriel Rd. Colorado Ave. - San Rafael Rd. to San Diego Way Lake View Dr. - Portola Rd. to Santa Rosa Rd. Monterey Rd. - Graves Creek Rd. to San Anselmo Ave. Navajoa Ave. - Atascadero Ave. to San Andres Ave. Andrita Rd. - Casanova Ave. to Sierra Vista Rd. Monterey Ct. - Monterey Rd. to End Ramage Dr. - Portola Rd. to End Santa Ynez Ave. - Atascadero Ave. to San Andres Ave. Venado Ave. - Ardilla Ave. to Chauplin Ave. San Andres Ave. - Santa Lucia Rd. to San Marcos Rd. Serra Ave. - Atascadero Ave. to San Andres Ave. 1/13/26 | Item H1 | Attachment 2 Page 75 of 92 50+ centerline miles paved, representing 39% of all city maintained roads. 105+ neighborhood road segments have been repaired. $26.9M in neighborhood road repairs. Drainage & roadside slope improvements. 0817 After 2025 Pavement Rehabilitation - 1.59 miles Net Change in fund balance 4,010,327 (668,815)(2,152,446)1,189,066 Fund Balance - beginning of year - 4,010,327 3,341,512 - Fund Balance - end of year $ 4,010,327 $ 3,341,512 $ 1,189,066 $ 1,189,066 Los Osos Rd. - Old Morro Rd. E to San Rafael Rd. San Andres Ave. - Atascadero Ave. to Marchant Ave. A T A S C A D E R O R O A D SMEASURE F-14 BACKGROUND F I N A N C I A L S T A T E M E N T A N D P R O J E C T S U M M A R Y Sa n D imas Roa d City-maintained roads have a PCI of 56. Without Measure F-14, the estimated PCI would have been 30. Roads considered excellent and good, have increased by 15%. Roads considered poor have decreased by 18%. When pavement conditions deteriorate, the cost to fix roadways increases substantially. Replacement of a failed street can cost 30-40 times the amount required to maintain a road in good condition. Road repairs save on wear and tear of vehicles and improve safety for bicyclists. QU ICK FACTS The City of Atascadero owns and maintains approximately 145 center- line miles of public roadways. This extensive network ensures access for emergency response and is the backbone of housing, commerce and recreation within the community and its repair and maintenance is a top priority. Each road is inspected and assigned a Pavement Condition Index (PCI) number, from 0 to 100. The higher the PCI number, the better condition of the road. In 2014, Atascadero voters approved a ballot measure (F-14) which authorized the City to increase its sales tax rate by a ½ percent for a term of 12 years, together with a measure (E-14) advising that the funds be primarily utilized for maintaining and repairing neighborhood roads. While the City will continue to maintain and improve arterial roadways, funds approved under Measure F-14 are specifically earmarked for the improvements of neighborhood roads. The measure includes a nine-member Citizen Oversight Committee tasked with reviewing revenues, expenditures, and the annual road report. F-14 REVENUES ARE IMPROVING OUR ROADS EX P EN D I T UR E S RE VE N UE S Prior Years 2015-2023 FY 2024 FY 2025 Totals as of June 30, 2025 Sales Tax $ 21,050,418 $ 3,248,486 $ 3,265,637 $ 27,564,541 Interest Income 364,734 119,590 54,358 538,682 Adjustment to Fair Market Value (124,576)75,046 49,924 394 Total Revenues 21,290,576 3,443,122 3,369,919 28,103,617 Total expenditures 17,280,249 4,111,937 5,522,365 26,914,551 Los O s o s Ro a d R e ha b ilit a tion Before In 2024, voters approved Ballot Measure L-24, extending the Measure F-14 ½ percent sales tax rate for repairing neighborhood roads, infrastructure and other vital general government needs, until ended by voters. Be for e AfterRehabilitation San Dimas Rd. - Los Osos Rd. to Toloso Rd. 1/13/26 | Item H1 | Attachment 2 Page 76 of 92 CITY OF ATASCADERO CITY COUNCIL STAFF REPORT Item H2 Department: Public Works Date: 01/13/26 Placement: Management Report TO: JAMES R. LEWIS, CITY MANAGER FROM: NICK DE BAR, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER PREPARED BY: RYAN BETZ, PUBLIC WORKS ANALYST SUBJECT: San Luis Obispo Council of Governments Draft Transportatfon Expenditure Plan for Potentfal Transportatfon Sales Tax Measure RECOMMENDATION: Council review and comment on San Luis Obispo Council of Governments Draft Transportatfon Expenditure Plan for potentfal transportatfon sales tax measure. DISCUSSION: The San Luis Obispo Council of Governments (SLOCOG) is the regional transportatfon planning agency responsible for long-range regional transportatfon planning, funding allocatfon, and coordinatfon among the County and the seven incorporated citfes, including Atascadero. SLOCOG is evaluatfng a potentfal ½-cent transportatfon sales tax measure for the November 2026 ballot to establish a long-term, locally controlled revenue source for transportatfon improvements. SLOCOG pursued a very similar effort in 2016 (Measure J16) that fell short of the 66.7% threshold by approximately 450 votes. After completfng extensive regional engagement including more than 70 presentatfons, focus groups, workshops, online surveys, website engagement, and coordinatfon with local jurisdictfons, SLOCOG has developed a Draft Transportatfon Expenditure Plan (Plan) and Implementatfon Guidelines associated with the potentfal ½-cent transportatfon sales tax measure. The Plan is intended to address a region-wide transportatfon funding shortiall, respond to public feedback collected through regional engagement efforts and establish an equitable distributfon of new transportatfon revenues should the ballot be placed on the November 2026 ballot and approved by voters. As part of SLOCOG’s public outreach and review process, the agency is presentfng the Draft Plan to all seven citfes and the County Board of Supervisors to gather input prior to final Board consideratfon in early 2026. SLOCOG staff will provide an overview of the Draft Plan at tonight’s meetfng and are seeking comments from the City Council. Page 77 of 92 1/13/26 | Item H2| Staff Report The draft expenditure plan is projected to generate approximately $35 million annually (2024 estfmate) and expected to escalate each year. These revenues would be distributed across four primary categories:  55% — Local Road Repairs, Safety, and Improvements (allocated to each jurisdictfon based on populatfon)  40% — Regional Corridor Improvements (allocated to four subregions by populatfon share)  4% — Senior/Disabled/Veterans’ Mobility Improvements  1% — Administratfve Costs (maximum) The plan emphasizes transparency, local control, subregional equity, and accountability through safeguards such as a Citfzens’ Oversight Committee, maintenance-of-effort requirements, regular audits, and multf-year implementatfon plans. As per the current expenditure plan, while staff feels strongly about the importance of transparency, audits, and reportfng, staff has concerns that the existfng maintenance of effort and reportfng language in the plan may be onerous, generate significant impacts on staff, and create more layers of bureaucracy than needed. Staff will contfnue to work with SLOCOG staff to ensure that existfng reports already maintained by the City, such as the Pavement Management Plan, audits, and the Capital Improvement Program are sufficient and that reportfng align with work already done for state and other reportfng. Assuring use of these reports will make the reportfng process more efficient and less costly for all agencies. SLOCOG is seeking feedback from all jurisdictfons regarding the distributfon methodology, project categories, funding prioritfes, and implementatfon policies. Under the Draft Plan, Atascadero would receive an estfmated $2,029,354 annually from the Local Road Repair category (55% share) as shown in Table 1 below. Additfonal funds are guaranteed to fund regional project improvements in the North County through the Regional Corridor Improvements category. Table1: 1-Year Distribution of $35M 55% for Local Road Repairs, Safety and Improvements $ 19,250,000 Arroyo Grande $ 1,256,955 Atascadero $ 2,029,354 Grover Beach $ 865,712 Morro Bay $ 733,207 Paso Robles $ 2,146,387 Pismo Beach $ 550,195 San Luis Obispo $ 3,207,856 Unincorporated $ 8,460,335 40% for Regional Corridor Improvements $ 14,000,000 North County $ 4,923,893 South County $ 4,001,218 Page 78 of 92 1/13/26 | Item H2| Staff Report Central County $ 3,085,830 North Coast $ 1,989,059 4% for Senior/Disabled/Veterans’ Mobility Improvements $ 1,400,000 1% Administration Costs (Maximum) $ 350,000 Total Estimate $ 35,000,000 The purpose of this agenda item is for the Atascadero City Council to review the material, receive the associated background informatfon, and provide feedback on the potentfal measure, draft Expenditure Plan, and related implementatfon elements. This item does not request formal actfon by the City Council, nor does it seek endorsement or approval of any component of the draft measure. Input provided at this meetfng will be summarized and transmitted to SLOCOG as part of its regional review and refinement process. Following presentatfons to all city councils and the County Board of Supervisors in December 2025 and January 2026, SLOCOG will compile jurisdictfonal comments and present a refined plan to the SLOCOG Board on February 4, 2026. FISCAL IMPACT: There is no immediate fiscal impact associated with this actfon. REVIEWED BY OTHERS: This item has been reviewed by the Administratfve Services Director. REVIEWED AND APPROVED FOR COUNCIL AGENDA James R. Lewis, City Manager ATTACHMENT: 1. SLOCOG Draft Transportatfon Expenditure Plan Page 79 of 92 Draft 11/20/25 pg. 1 San Luis Obispo County Transportation Expenditure Plan Introduction San Luis Obispo County’s transportation system is essential to the safety, mobility, and economic vitality of its residents, businesses, and visitors. Yet existing state and federal revenues are inadequate to maintain local streets and roads, operate reliable transit, and deliver major regional improvements. This Transportation Expenditure Plan establishes a dedicated local funding source — a voter-approved ½-cent transactions and use tax — projected to generate approximately $35 million per year. All revenues will remain in San Luis Obispo County and may only be used for transportation purposes. The Plan emphasizes geographic equity, fairness, transparency, and strong taxpayer safeguards while ensuring flexibility to leverage state and federal funds. Revenue Distribution Annual revenues shall be allocated as follows: • 55% Local Road Repairs, Safety, and Improvements distributed by population to cities and the County. (Reviewed every ten years based on census data1). • 40% Regional Corridor Improvements distributed by subregion population within the areas defined as shown. • 4% Seniors, Veterans, and Mobility Challenged Transportation Services, regionwide. • 1% Administration 1 Should a new city become incorporated, the percentages would be adjusted to reflect the updated population distribution. 1/13/26 | Item H2 | Attachment 1 Page 80 of 92 Draft 11/20/25 pg. 2 Eligible Uses of Funds Local Road Repairs, Safety, and Improvements (55%) Funds are distributed by population and may be used for: • Local road maintenance, rehabilitation, and repair. • Safe Routes to School and Safe Routes to College programs. • Bicycle and pedestrian improvements (sidewalks, crosswalks, multi-use paths). • Bridge safety and seismic retrofits. • Local intersection, operational, and traffic safety improvements. • Community enhancements tied to transportation (streetscape, lighting, landscaping, wayfinding). • Signal synchronization. • Piers, walkways and other pedestrian or bike paths in and around waterfront and river areas. • Transit services including local trolley services may be funded if desired by a Jurisdiction. Regional Corridor Improvements (40%) Regional project funds shall be distributed among subregions and may be used for: • Highway and major corridor congestion relief improvements and including van or carpool lanes or other congestion relief measures. • Safety and interchange improvements. • Regional bicycle and pedestrian connectors between communities like the Bob Jones Trail. • Interagency Transit access and improvements and efficiency programs • Mitigation impacts for proposed improvements. • Other projects consistent with the adopted Regional Transportation Plan (RTP). Seniors, Veterans and Mobility Challenged Transportation Services (4%) Project funds shall support expansion and improvements to mobility programs that prioritize services for seniors, veterans, and mobility challenged regionwide. Administration (1%) 1/13/26 | Item H2 | Attachment 1 Page 81 of 92 Draft 11/20/25 pg. 3 SLOCOG shall allocate no more than 1% of annual revenues for administration, planning, reporting, auditing, and program oversight. Maintenance of Effort (MOE) The enabling legislation in Public Utilities Code PUC 180001(e) states: It is the intent of the Legislature that funds generated pursuant to this division be used to supplement and not replace existing local revenues used for transportation purposes. Each Agency receiving revenues for “Local Projects” shall annually maintain, at a minimum, the same level of local fully discretionary general fund revenues that were expended on average for fiscal years 2023/24, 2024/25 and 2025/26, for transportation purposes. Dedicated funds for transportation such as gas tax revenues are not counted as general fund revenues. Transfers into the general fund will not be counted as general fund revenues. Grant awards and general fund revenues used as matching funds for grant awards will not be counted as general fund revenues. Unusual one-time general fund allocations that have been expended for transportation purposes may be exempted prior to determining the Agency’s average expenditure for the three fiscal years noted above at the discretion of the SLOCOG Governing Board. An agency petitioning for an exemption under this provision must supply evidence of the need for special consideration and the petition must be approved by a majority vote of the SLOCOG Governing Board. The Authority shall not allocate any Net Revenues to any jurisdiction for any fiscal year until that jurisdiction has certified to the Authority that it has included in its budget for that fiscal year an amount of local discretionary funds for streets and roads purposes at least equal to the level of its maintenance of effort requirement. An annual independent audit will be conducted by the Authority to verify that the maintenance of effort requirements are being met by the jurisdiction. Any Net Revenues not allocated pursuant to the maintenance of effort requirement shall be allocated to the remaining eligible jurisdictions according to the formula described in the Ordinance. Exceptions Subject to Authority approval, if any local jurisdiction had extraordinary local discretionary fund expenditures during any fiscal year it may determine that year’s minimum expenditure base level of local discretionary funds by: 1/13/26 | Item H2 | Attachment 1 Page 82 of 92 Draft 11/20/25 pg. 4 (a) subtracting those extraordinary expenses funding, assessment district contributions, development impact funds, redevelopment agency contributions, or other non-recurring contributions) from its total expenditures; or (b) petitioning the Authority for special consideration. It is possible that a local jurisdiction may need to revise its minimum expenditure base beyond the subtraction of extraordinary expenses. In this instance, the Authority may allow the establishment of a new base for that jurisdiction's Maintenance of Effort requirement. A local jurisdiction petitioning the Authority under this provision must supply evidence of the need for special consideration and the petition must be approved by a majority vote of the Authority. Requirements For Eligible Jurisdictions In order to be eligible to receive Net Revenues, a jurisdiction shall satisfy and continue to satisfy the following requirements. 1. Mitigation Fee Program. Assess traffic impacts of new development and require new development to pay a fair share of necessary transportation improvements attributable to the new development. 2. Circulation Element. Adopt and maintain a Circulation Element as part of the jurisdiction’s General Plan, 3. Capital Improvement Program. Adopt and update a minimum Five-Year Capital Improvement Program (CIP). The CIP shall include all capital transportation projects, including projects funded by Net Revenues, and shall include transportation projects required to demonstrate compliance with pavement management requirements. 4. Pavement Management Plan. Adopt and update a Pavement Management Plan, and issue, using a common format approved by the Authority, regular reporting on the status of road pavement conditions and implementation of the Pavement Management Plan. 5. Expenditure Report. Adopt an Expenditure Report to account for Net Revenues, developer/traffic impact fees, and funds expended by the Eligible Jurisdiction which satisfy the Maintenance of Effort requirements. The Expenditure Report shall be submitted by the end of six (6) months following the end of the jurisdiction’s fiscal year and include the following: a. All Net Revenue fund balances and interest earned. 1/13/26 | Item H2 | Attachment 1 Page 83 of 92 Draft 11/20/25 pg. 5 b. Expenditures identified by type (i.e., capital, operations, administration, etc.), and program or project. 6. Project Final Report. Provide Authority with a Project Final Report within six months following completion of a project funded with Net Revenues. 7. Time Limits for Use of Net Revenues. a. Agree that Net Revenues for Regional Projects shall be expended or encumbered no later than the end of the fiscal year for which the Net Revenues are programmed. A request for extension of the encumbrance deadline for no more than twenty-four months may be submitted to the Authority no less than ninety days prior to the deadline. The Authority may approve one or more requests for extension of the encumbrance deadline. b. In the event the time limits for use of Net Revenues are not satisfied then any retained Net Revenues that were allocated to an Eligible Jurisdiction and interest earned thereon shall be returned to the Authority and these Net Revenues and interest earned thereon shall be available for allocation to any project within the same source program. 8. No Supplanting of Funds. Agree that Net Revenues shall not be used to supplant developer funding which has been or will be committed for any transportation project. 9. Public Notice of Use of Measure Funds. Member agencies will provide the public with planned use of measure funding as part of its annual or biennial budget process. This includes each City and each Community Advisory Council will receive at a minimum, twice yearly presentations from the jurisdiction to review proposed investments prior to annual allocations. Determination of Non-Eligibility A determination of non-eligibility of a jurisdiction shall be made only after a hearing has been conducted and a determination has been made by the Authority’s Board of Directors that the jurisdiction is not an Eligible Jurisdiction as provided hereinabove. Taxpayer Safeguards 1. A transportation special revenue fund (the “Local Transportation Authority Special Revenue Fund”) shall be established to maintain all Revenues. 1/13/26 | Item H2 | Attachment 1 Page 84 of 92 Draft 11/20/25 pg. 6 2. Accounting Receipt, maintenance and expenditure of Net Revenues shall be distinguishable in each jurisdiction’s accounting records from other funding sources, and expenditures of Net Revenues shall be distinguishable by program or project. Interest earned on Net Revenues allocated pursuant to the Ordinance shall be expended only for those purposes for which the Net Revenues were allocated. 3. No Net Revenues shall be used by a jurisdiction for other than transportation purposes authorized by the Ordinance. Any jurisdiction which violates this provision must fully reimburse the Authority for the Net Revenues misspent and shall be deemed ineligible to receive Net Revenues for a period of five (5) years. 4. A Taxpayer Oversight Committee (“Committee”) shall be established to provide an enhanced level of accountability for expenditure of Revenues under the Ordinance. The Committee will help to ensure that all voter mandates are carried out as required. The roles and responsibilities of the Committee, the selection process for Committee members and related administrative procedures shall be carried out as described below. 5. A performance assessment shall be conducted at least once every three years to evaluate the efficiency, effectiveness, economy and program results of the Authority in satisfying the provisions and requirements of the Investment Summary of the Plan, the Plan and the Ordinance. A copy of the performance assessment shall be provided to the Committee. 6. Regular status reports regarding the major projects detailed in the Plan shall be brought before the Authority in public meetings. 7. Annual Report Annually the Authority shall publish a report on how all Revenues have been spent and on progress in implementing projects in the Plan and shall publicly report on the findings and posted on the agency website. Ten-Year Comprehensive Program Review At least every ten years the Authority shall conduct a comprehensive review of all projects and programs implemented under the Plan to evaluate the performance of the overall program and may revise the Plan to improve its performance. The review shall include consideration of changes to local, state and federal transportation plans and policies; changes in land use, travel and growth projections; changes in project cost estimates and revenue projections; right-of-way constraints and other project constraints; level of public support for the Plan; and the progress of the Authority and jurisdictions in implementing the Plan. The Authority may amend the Plan based on its comprehensive review, subject to the requirements of Plan Update, Approval Process, and Expenditure Plan Amendments section of this plan. 1/13/26 | Item H2 | Attachment 1 Page 85 of 92 Draft 11/20/25 pg. 7 Governing Board and Organizational Structure The San Luis Obispo Council of Governments (SLOCOG) serves as the designated Local Transportation Authority for San Luis Obispo County and is responsible for administering the Transportation Measure in compliance with Public Utilities Code (PUC) 180000 et seq. Upon voter approval of the Transportation Measure, the Board of Directors of SLOCOG will serve as the Authority Board and will oversee its implementation in accordance with the plans and programs detailed in this and future updates of the Expenditure Plan. This Expenditure Plan provides for the creation of a Citizens’ Oversight Committee to ensure transparency and accountability. Details regarding the Committee are contained in this plan. The Biannual Implementation Plan will be prepared and updated by SLOCOG staff and approved by both the SLOCOG Policy Board and the Local Transportation Authority. Per PUC 180000, the Authority’s governing board will include representation as follows: • Five (5) members of the San Luis Obispo County Board of Supervisors • One (1) member representing each incorporated city within San Luis Obispo County—Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, and San Luis Obispo—appointed by their respective city councils. Alternates to the regular members may participate in accordance with SLOCOG bylaws. Should another city become incorporated, it will have one seat on the steering committee. Plan Update, Approval Process, and Expenditure Plan Amendments Three primary documents guide plan administration: 1. Expenditure Plan – Approved by voters and amendable once per year, following the process described below. 2. Annual Report – Prepared each year by the Citizens’ Oversight Committee to review expenditures and communicate results to the public. 3. Biennial Implementation Plan – Prepared every two years to outline project expenditures and coordinated with the development schedule of the State Transportation Improvement Program (STIP). In compliance with state and federal requirements, SLOCOG regularly prepares a Regional Transportation Plan (RTP)that identifies priority projects across all transportation modes, including highways, local roads, public transit, bikeways, and aviation. Should funds 1/13/26 | Item H2 | Attachment 1 Page 86 of 92 Draft 11/20/25 pg. 8 become available for projects not listed in this Expenditure Plan, they may be drawn from the RTP project list. SLOCOG will have the option to issue bonds to accelerate project delivery, thereby reducing overall costs by advancing construction timelines. All updates to the Expenditure Plan will undergo public review and hearings. Candidate projects and priorities may evolve, but the county’s extensive transportation needs will ensure robust use of all available funding, including sales tax revenues. During each update, a balanced approach across transportation modes will be emphasized to ensure efficiency and equity in addressing mobility needs throughout San Luis Obispo County. Amendment Process As specified in PUC Section 180207: • (a) Once per calendar year, the Authority may review and propose amendments to the county’s transportation expenditure plan to incorporate additional revenues, account for unanticipated funds, or respond to unforeseen circumstances. Amendments adopted late in the year will not preclude additional amendments in the following year. • (b) The Authority must notify the County Board of Supervisors and each city council, providing copies of proposed amendments for their review. • (c) Amendments become effective 45 days after notification. Changes to funding categories or overall allocation formulas require voter approval. Biennial Implementation Plan At least once every two years, SLOCOG will prepare and adopt a Transportation Measure Implementation Plan. This plan will include a financial component consistent with both the Regional Transportation Improvement Program (RTIP) and the STIP. Process steps include: • SLOCOG staff, working with member agencies and stakeholders, will draft and update the Implementation Plan biennially. • The SLOCOG Policy Board will review the Draft Implementation Plan, hold public hearings, and incorporate feedback. • Following review, the Policy Board formally adopts the Implementation Plan. Bonding Authority The Authority shall have the power to sell or issue, at any time, and from time to time, 1/13/26 | Item H2 | Attachment 1 Page 87 of 92 Draft 11/20/25 pg. 9 including on or before the collection of the taxes authorized by this Ordinance, bonds, notes or other evidences of indebtedness, including capital appreciation bonds, payable from and secured by the proceeds from the sales taxes authorized by this Ordinance and from the proceeds of the existing Measure (TBD) sales taxes, in order to finance and refinance the transportation projects identified in the Transportation Expenditure Plan. Bonding indebtedness shall be limited to 35% of net sales measured at the end of the 30- year program. An additional bonds test (ABT) no lower than 1.5x Maximum Annual Debt Service will be measured against revenues for any consecutive 12-month period in the prior 18 months. Allocation of Excess Revenues If revenues exceed projections or contingency needs, excess funds will first be used to complete projects listed in this Plan. Secondary priority may be given to additional RTP- consistent projects, following an amendment process. Independent Financial Audits If the Transportation Measure is approved by the voters, the San Luis Obispo Council of Governments (SLOCOG) will conduct independent financial audits of all revenues and expenditures associated with the measure in accordance with Public Utilities Code 180000 et seq. These audits will ensure full transparency and accountability in the use of voter-approved sales tax revenues. The results of the audits will be presented annually to the SLOCOG Policy Board and made available to the public, reinforcing confidence in the administration of the Transportation Measure. Findings will also be shared with the Citizens’ Oversight Committee to support their independent review of expenditures and compliance with the Expenditure Plan. Administration Program – 1% of Measure Revenues To effectively manage and implement the Transportation Measure, SLOCOG will cap administration costs at no more than 1% of annual sales tax revenues to administrative activities. This allocation supports the necessary planning, oversight, and program development functions required for successful execution of the measure. Key administrative responsibilities of SLOCOG include: • Annual Work Program and Budget Prepare and adopt an annual work program and budget outlining planned expenditures, oversight activities, and administrative costs. • Allocation Program Requirements and Focused Studies Develop requirements for each funding program established by the Expenditure 1/13/26 | Item H2 | Attachment 1 Page 88 of 92 Draft 11/20/25 pg. 10 Plan and undertake specialized studies needed to implement those programs effectively. • Biennial Implementation Plan Prepare and update the Transportation Measure Implementation Plan every two years, aligning it with the Regional Transportation Improvement Program (RTIP) and State Transportation Improvement Program (STIP)schedules. • Project Prioritization Establish and update priority lists for regional capacity-enhancing and rehabilitation projects, in coordination with member jurisdictions and consistent with Expenditure Plan goals. • Independent Annual Audit Conduct an independent audit of all Transportation Measure funds to ensure compliance, fiscal integrity, and accountability to the public. • Public Outreach and Communication Carry out ongoing outreach and public education efforts to keep residents informed about project progress, financial performance, and planned updates. • Bond Issuance for Accelerated Delivery Issue bonds when appropriate to expedite project delivery, reducing overall project costs by leveraging future revenues for near-term improvements. • Revenue Allocation to Local Jurisdictions Distribute Transportation Measure proceeds to incorporated cities and the county in accordance with the formulas and criteria established in the Expenditure Plan. • Support for Oversight Committees and Related Technical Assistance Provide staff support to advisory committees and furnish technical assistance to member jurisdictions to ensure consistent, equitable, and effective program implementation. Citizens’ Oversight Committee Committee Purpose • To provide oversight on the implementation of the Transportation Expenditure Plan and advise the SLOCOG Policy Board when the Plan needs to be updated or augmented, ensuring that funds are spent in accordance with the approved Plan. • To inform the public and confirm that revenues and expenditures from the Transportation Measure are spent as promised to San Luis Obispo County voters. Committee Formation • The Committee will be formed within six (6) months following voter approval of the Transportation Measure in San Luis Obispo County. • The Committee shall be a permanent component of the Expenditure Plan and cannot be eliminated by amendment. 1/13/26 | Item H2 | Attachment 1 Page 89 of 92 Draft 11/20/25 pg. 11 • Meetings will begin when Transportation Measure revenues are recommended for expenditure, including Implementation Plan updates. Selection and Duties of Committee Chair and Vice Chair • The Committee will select a Chair and Vice Chair from among its members, each serving a one-year term. • Chair Duties: Call meetings, set agendas, and preside over meetings. • Vice Chair Duties: Perform the Chair’s duties in the Chair’s absence. Committee Meetings • The Committee will hold at least two formal meetings annually, with additional meetings scheduled as needed. • All meetings will comply with the Brown Act (open meeting requirements). • Meetings will be conducted in accordance with Robert’s Rules of Order. Subcommittee Requirements • The Committee may form subcommittees to address specific tasks or focus areas. • All subcommittees will consist of an odd number of members to ensure clear decision-making. Committee Membership, Selection, and Quorum The Committee will reflect the geographic and demographic diversity of San Luis Obispo County and consist of 12 members. Each represented organization will nominate its representative, with final appointments approved by the SLOCOG Policy Board. Membership Composition: • One resident representative appointed by each incorporated city (Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, San Luis Obispo) and one member from each of San Luis Obispo County’s Supervisorial District’s within the unincorporated areas. (Total of 12) The SLOCOG Policy Board will review and appoint these members. If any jurisdiction is unable to appoint a representative, SLOCOG may fill the position through an open application process. Should a new City become incorporated, a representative from that jurisdiction shall be appointed by the City. Quorum • A quorum will consist of no fewer than seven (7) members. 1/13/26 | Item H2 | Attachment 1 Page 90 of 92 Draft 11/20/25 pg. 12 • Actions may be approved by a simple majority of members present, provided the quorum is met. Term of Membership • Members serve two-year terms, with a maximum of eight consecutive years of service. • To establish staggered terms, the initial appointments will be divided so that half serve one-year terms and half serve two-year terms, determined by random selection. • Proxy voting is not permitted. Eligibility • Must be a U.S. citizen, 18 years or older, and a resident of San Luis Obispo County. • Cannot be an elected official of San Luis Obispo County or its cities. • Cannot be an employee of state, county, or city government agencies within San Luis Obispo County (except employees of educational institutions). Staffing • SLOCOG staff will provide technical and administrative support, including preparation of agendas, meeting materials, and public communications. • Administrative costs for staffing will be funded through the Transportation Measure’s administrative allocation. • Expert staff and consultants may be invited to present information or analyses as needed. Responsibilities The Committee will review and provide recommendations on financial and programmatic aspects of the Transportation Measure, including: • Reviewing and commenting on independent financial and performance audits of Measure funds. • Reviewing periodic reports, studies, and plans related to Measure revenues and expenditures. • Ensuring that expenditures are consistent with the Expenditure Plan. • Conducting an annual review of sales tax revenue use and publicly reporting findings. • Presenting recommendations and findings in a formal annual report to the public and SLOCOG Policy Board. 1/13/26 | Item H2 | Attachment 1 Page 91 of 92 Draft 11/20/25 pg. 13 • Accessing information from SLOCOG’s independent auditor and requesting additional information as necessary to fulfill oversight responsibilities. • Remaining informed of advancements in transportation planning and finance to ensure oversight remains relevant and effective through the duration of the Measure. Measure Duration This Transportation Expenditure Plan shall remain in effect for 30 years as approved by San Luis Obispo County voters. 1/13/26 | Item H2 | Attachment 1 Page 92 of 92