Council adopts ADU/lot‑split updates, authorizes energy audit and accepts staffing report

San Luis Obispo City Council on March 4 approved a package of zoning and subdivision ordinance updates to implement new state laws on accessory dwelling units (ADUs), ministerial urban lot splits and related housing changes; authorized a work order to PG&E to complete an investment‑grade audit for municipal facility electrification; and received a state‑required presentation on city staffing and recruitment.

ADU and lot‑split ordinance

The council adopted amendments to Titles 16 (subdivision) and 17 (zoning) to comply with state guidance and a letter from the Department of Housing and Community Development. Key changes include removal of a one‑ADU‑per‑property limit, allowance of a combination of 1 detached ADU plus 1 attached junior ADU (JADU) under 500 square feet and one ADU converted from existing space on single‑family lots, and expanded ADU allowances on multifamily properties. For properties with existing multifamily buildings, the city will allow up to the number of existing units in ADUs (up to eight ADUs in the city’s example) provided they meet objective setback and development standards; ADUs on multifamily parcels must be detached from the primary structure per state law. The update also creates definitions and procedures for “minor” and “major” urban lot splits that implement the array of state lot‑split laws, including SB 9 and later amendments: major lot splits can apply to qualifying multifamily and certain vacant single‑family parcels and may create multiple lots or units (the ordinance references limits such as a maximum of 10 lots/dwellings and minimum lot sizes by context).

Staff said the code removes subjective design requirements — such as a mandate that ADUs match the primary residence in style — because state law requires objective ministerial review standards. Staff will publish an ADU and lot‑split handbook explaining allowed combinations, minimums and permitting steps. A public commenter asked the council to let ADU heights default to underlying zone heights rather than the proposed 25‑foot cap in some cases; staff said it will study that suggestion and bring further refinements later. The council adopted the ordinance on a 5‑0 vote.

Authorizing PG&E sustainable solutions turnkey (SST) investment‑grade audit

Council authorized the city to enter PG&E’s Sustainable Solutions Turnkey (SST) program procurement approach under Government Code section 4217 and to issue a work order for an investment‑grade audit. PG&E’s procurement selected Willdan as the recommended energy‑services contractor; the city will pay an estimated $75,000 to PG&E to run the audit, with staff seeking an EACBG federal grant that could reimburse that expense. The audit will provide detailed engineering and cost estimates for proposed electrification and efficiency work at priority municipal facilities (including technically challenging items such as pool electrification). If council opts to implement projects after the audit, a second work order and project‑by‑project budget decisions will be required. Council approved the authorization 5‑0.

AB 2561 staffing report

Under Assembly Bill 2561, the council received a required annual presentation on vacancies, recruitment and retention. Human Resources reported the city had 481 budgeted positions and, at the end of calendar year 2024, 36 vacancies (about 7.5%); the most recent February snapshot showed 27 vacancies (about 5.6%). The median time to fill a regular vacancy in 2024 was 71 days. The city’s Employee Opportunity Program met its internal promotion goal: 43% of vacancies in 2024 were filled via internal promotion. HR staff said the city does not identify policy obstacles that require change now but continues to offer hiring incentives, tuition reimbursement, training, telework options and other retention tools. Council voted to adopt the staff recommendation for a policy clarifying the AB 2561 hearing and received the report 5‑0.

Other brief votes

The council approved the consent agenda (routine items) and voted on the above actions during the March 4 meeting; all roll call votes on substantive ordinances, the PG&E authorization and staffing policy passed unanimously.

Ending

Staff said the ADU and lot‑split updates will be followed by practical guidance materials for property owners and by additional refinements if state feedback requires it. The investment‑grade audit from PG&E is expected in fall 2025; implementation decisions and capital allocation would return to council for separate approvals.