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HomeMy WebLinkAboutAgenda Packet 021307• CITY OF ATASCADERO CITY COUNCIL "SPECIAL STUDY SESSION" AGENDA Tuesday, February 13, 2007 5:30 P.M. City Hall Council Chambers 6907 El Camino Real Atascadero, California • ROLL CALL: Mayor Luna Mayor Pro Tem Brennler Council Member Beraud Council Member Clay Council Member O'Malley A. MANAGEMENT REPORTS: 1. Downtown Commercial Zoning Text Amendment, Zone Change 2006-0124 Study Session (Atascadero Redevelopment Agency) The Atascadero Main Street Organization has requested a study session to discuss the following Downtown zoning issues: 1. A potential change in the zoning ordinance to restrict office, research & development, and health care uses on the first floor within the Downtown Commercial (DC) zoning district, in order to promote more retail and pedestrian -oriented business within the Downtown Commercial (DC) zoning district; and 2. A potential change in the zoning ordinance to require Planning Commission review of all downtown construction projects including those of less than 10,000 square feet. B. ADJOURNMENT: • Please note: Should anyone challenge any proposed development entitlement listed on this Agenda in court, that person may be limited to raising those issues addressed at the public hearing described in this notice, or in written correspondence delivered to the City Council at or prior to this public hearing. Correspondence submitted at this public hearing will be distributed to the Council and available for review in the City Clerk's office. I, Shannon Sims, Deputy City Clerk of the City of Atascadero, declare under the penalty of perjury that the foregoing agenda for the February 13, 2007 Special Study Session of the Atascadero City Council was posted on February 6, 2007 at the Atascadero City Hall, 6907 EI Camino Real, Atascadero, CA 93422 and was available for public review in the Customer Service Center at that location. Signed this 6`h day of February, 2007 at Atascadero, California. -a am lullv) �&, lynb— Shannon Sims, Deputy City Clerk City of Atascadero 2 • ITEM NUMBER: SS A- 1 DATE: 02/13/07 Atascadero City Council Community Development Department - Study Session Downtown Commercial Zoning Text Amendment Zone Change 2006-0124 Study Session (Atascadero Redevelopment Agency) SUBJECT: The Atascadero Main Street Organization has requested a study session to discuss the following Downtown zoning issues: • 1. A potential change in the zoning ordinance to restrict office, research & development, and health care uses on the first floor within the Downtown Commercial (DC) zoning district, in order to promote more retail and pedestrian - oriented business within the Downtown Commercial (DC) zoning district; and 2. A potential change in the zoning ordinance to require Planning Commission review of all downtown construction projects including those of less than 10,000 square feet. REPORT -IN -BRIEF: In June 2006 the Atascadero Main Organization contacted the City and requested the Downtown zoning ordinance be reconsidered to restrict office uses and require additional design review of new buildings. The Atascadero Redevelopment Agency was determined to be the appropriate applicant to sponsor the request. The City Council requested that Main Street contact downtown property owners and tenants to gauge their position on a possible code text change. This did not occur and in September 2006 Main Street sent the City a letter requesting that the City hold a study session to discuss issue with the public (refer to Attachment 2). 3 ITEM NUMBER: SS A - 1 DATE: 02/13/07 DISCUSSION: Background: On July 25, 2000, the City Council adopted the Atascadero Downtown 40 Revitalization Plan that established the Downtown Zoning District in order to promote development of a lively pedestrian environment by locating shops and restaurants along sidewalks that would attract customers. At that time, the code restricted first floor office uses (professional and similar office & service uses) and residential uses to the second and third floors of buildings. On April 15, 2003, at the Atascadero Main Street Organization's request, the Planning Commission forwarded a recommendation to the City Council to approve a Draft Ordinance amendment of the Downtown Commercial Zoning District to accommodate non - retail uses in occupying ground floor, storefront locations as a way to address vacancies occurring within the downtown commercial district. On June 10, 2003, the City Council approved office, health care, and research & development uses on the first floor within the Downtown Commercial (DC) zoning district. At present, the Atascadero Main Street Organization has requested a change in the zoning ordinance to restrict office, research & development, and health care uses on the first floor within the Downtown Commercial (DC) zoning district, citing a changing interest in promoting more active retail -oriented business interest and investment within the Downtown Commercial (DC) zoning district; and require Planning Commission review of all downtown construction projects including those of less than 10,000 square feet. Analysis: • Downtown Use Restrictions The first Main Street recommendation is to restrict office, research & development, and health care uses on the first floor. There are two ways this can be accomplished. The first option would be to restrict these uses to the second floor as the original code provided for in 2000. The second option would be to make these uses "conditional uses". Conditional use would trigger a Conditional Use Permit (CUP) process with a public hearing and Planning Commission review. This would provide ability for the Commission to approve uses that fit in the Downtown and deny those that were incompatible with the Downtown. However, past experience demonstrates that these are difficult decisions for the Planning Commission to make. New Construction CUP's The second proposed amendment would result in replacing the 10,000 square foot CUP requirement for all new development with a requirement that all new Downtown development, regardless of square footage require a CUP. Staff notes that the term "all new development" would require a specific definition of what constitutes new development. The following items may or may not be included in this definition: • New Construction where no construction currently exists. • Major Remodeling where a large percentage of existing construction is altered; • Minor Remodeling where a small percentage of existing construction is altered; 40 Ll ITEM NUMBER: SS A - 1 DATE: 02/13/07 • Fagade Improvement where exterior building elevations visible to the public are • altered; and • Building Maintenance where existing materials require regularly scheduled maintenance to include minor material replacement, patching or painting. Summary of Issues Staff has identified the following downtown business community and property owner issues and concerns: (1) Downtown is beginning to develop and requires more active retail uses. A primary goal of the Downtown Revitalization Plan is to create a lively and interesting pedestrian experience along Downtown sidewalks. Uses such as offices, health care and research & development do not depend on sidewalk exposure to attract customers. Consequently, these uses have less incentive to create an interesting pedestrian experience and would likely detract from an interesting pedestrian environment, resulting in less space for prospective retailers and less incentive for property owners to develop retail -oriented projects downtown. . (2) More stringent zoning requirements could create unnecessary vacancies within downtown buildings. In the past, property owners in the downtown area and the Main Street organization expressed a number of concerns relative to the idea of restricting office uses. The primary concern is that restricting offices creates a higher vacancy rate within the downtown and it is better to have office -type uses rather than no uses. (3) Importance of quality architecture and pedestrian scale The Downtown Design Guidelines were adopted to promote the conservation and reuse of existing buildings with preferred design quality. The issue of how to implement these guidelines in the form of appearance review for permitted office -type uses and new construction continues to be of concern to the Mainstreet Organization. At present, the Mainstreet organization reviews office -type uses for first floor locations. However, there is no public review opportunity of new development less than 10,000 square feet or for the remodeling of existing commercial buildings. Consequently, Mainstreet is requesting more opportunity for public review and input into the appearance review process through the Conditional Use Permit (CUP) process which would require Planning Commission review and public hearing(s). Another concern of the Mainstreet Organization is quality control of downtown projects. The CUP process would contain adopted Planning Commission Exhibits and Conditions of Approval that could be easily monitored and enforced by staff, assuring that important design details (architectural features, materials and colors) are implemented during the building permit and inspection process. • 5 ITEM NUMBER: SS A - 1 DATE: 02/13/07 (4) CUP requirements create additional processing time and cost. There are two types of Conditional Use Permits (CUPs) as follows: (1) Major CUP costs $3,205 plus notification fees. Processing time varies with the complexity of each proposed project. Staff processing time typically requires 3 to 6 months depending on the project complexity. (2) Minor CUP costs $1,115 plus notification fees. Processing time requires 2 to 3 months varying with the complexity of each proposed project. ATTACHMENTS: Attachment 1: Downtown Zoning District Attachment 2: Main Street Letter 1.1 • • is • • • ITEM NUMBER: SS A - 1 DATE: 02/13/07 ATTACHMENT 1: Location Map (General Plan / Zoning) ITEM NUMBER: SS A - 1 DATE: 02/13/07 ATTACHMENT 2: Main Street Request Letter ATASCADERO MiMNSTREET To: Marcia Torgerson Cc: Board of Directors Fr: Steve Martin Re; Board requests D L: 9/21/06 This will fornmli7z the board's requests directed to you during last night's board meeting. 1) nic board requests the city schedule a study session to discuss: a. Reversion of first floor zoning to Prcvi o us ordinance standards (before the allowance of mixed use Oil the first floor) b, Requiring Planning Commission review of all downtown construction projects including those of less than 10,000 square feet, 2) Holiday lighting issues: No street construction/lig g a. -,htiii, installation during (lie holiday season , b. provision ol'tomporary street lighting on Palma, Entrada and Traffic Way during the cvening Wine Sn' Wassail event planned for Dec. 6 Pleasc let me know as soon as possible the council's direction on these items. Thank you. 5735 Rl Camino Real — P.0, Box 3090 — Atzscadero, CA 93422 (905) 462-0177 F�Lx: (805) 462-0173 — cni,!11: info(u atascadcromainstreet.org 'rk- +—.— --i—A k, = I CA Y— — f— --, C.....+...... 6N 11k..—. -G -- 0 9 • CITY OF ATASCADERO COMMUNITY REDEVELOPMENT AGENCY AGENDA Tuesday, February 13, 2007 6:30 P.M. City Hall Council Chambers 6907 EI Camino Real Atascadero, California REGULAR SESSION: 6:30 P.M. ROLL CALL: Chairperson O'Malley Vice Chairperson Beraud Board Member Brennler Board Member Clay Board Member Luna APPROVAL OF AGENDA: Roll Call COMMUNITY FORUM: (This portion of the meeting is reserved for persons wanting to address the Board on any matter not on this agenda and over which the Board has jurisdiction. Speakers are limited to five minutes. Please state your name and address for the record before making your presentation. The Board may take action to direct the staff to place a matter of business on a future agenda. A maximum of 30 minutes will be allowed for Community Forum, unless changed by the Board.) • BOARD ANNOUNCEMENTS AND REPORTS: (On their own initiative, the Board Members may make a brief announcement or a brief report on their own activities. Board 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 Board may take action on items listed on the Agenda.) 1 A. CONSENT CALENDAR: • 1. Community Redevelopment AgencV Minutes — JanuarV 9, 2007 ■ Board Secretary Recommendation: Board approve the Community Redevelopment Agency minutes of January 9, 2007. [Board Secretary] B. MANAGEMENT REPORTS: 1. Fiscal Year 2005-2006 Audit ■ Fiscal Impact: None. ■ Recommendation: Board review and accept the financial audit for the period ended June 30, 2006. [Executive Director] C. EXECUTIVE DIRECTOR REPORT: Wade McKinney, Executive Director D. ADJOURNMENT 2 • ITEM NUMBER: RA A-1 DATE: 02/13/07 �1V❑1❑i l'��i CITY OFATASCADER0COMMUNITY REDEVELOPMENT AGENCY DRAFT MINUTES Tuesday, January 9, 2007, 6:30 P.M. REGULAR SESSION: 6:30 P.M. Chairperson O'Malley called the meeting to order at 6:30 p.m. ROLL CALL: Present: Board Members Brennler, Clay, Luna, Beraud, and Chairperson • O'Malley Absent: None Others Present: Board Secretary Marcia McClure Torgerson Staff Present: Deputy Executive Director Jim Lewis and City Attorney Patrick Enright. 0 APPROVAL OF AGENDA: MOTION: By Board Member Clay and seconded by Board Member Luna to approve the agenda. Motion passed 5:0 by a roll -call vote. COMMUNITY FORUM: None RDA Draft Minutes 01/09/07 Page 1 of 2 3 BOARD ANNOUNCEMENTS AND REPORTS: 101154=1 A A. CONSENT CALENDAR: 1. Community Redevelopment Agency Minutes — November 28, 2006 ■ Board Secretary Recommendation: Board approve the Community Redevelopment Agency minutes of November 28, 2006. [Board Secretary] MOTION: By Board Member Luna and seconded by Board Member Clay to approve Item #A-1. Motion passed 3:0 by a roll -call vote. (Brennler, Beraud abstained) B. EXECUTIVE DIRECTOR REPORT: Wade McKinney, Executive Director Deputy Executive Director Jim Lewis gave an update on the construction of the Lewis Avenue Bridge. :7 C. ADJOURNMENT 0 Chairperson O'Malley adjourned the meeting at 6:33 p.m. MINUTES PREPARED BY: Grace Pucci, Recording Secretary RDA Draft Minutes 01/09/07 Page 2 of 2 V • ITEM NUMBER: RA B-1 DATE: 02/13/07 Community Redevelopment Agency of Atascadero Staff Report — Executive Director Fiscal Year 2005-2006 Audit RECOMMENDATION: Board review and accept the financial audit for the period ended June 30, 2006. REPORT -IN -BRIEF: The audit firm of Glenn, Burdette, Phillips and Bryson performed a full audit of the Redevelopment Agency financial statements and found that the Agency presented fairly • and accurately the Agency's financial position, and further that the reporting was in conformity with generally accepted accounting standards. DISCUSSION: The Redevelopment Agency has four funds: the Redevelopment Agency (General) Fund, the 2005 Redevelopment Bond Project Fund, the 2005 Redevelopment Bond Debt Service Fund, and the Low/Moderate Income Housing Redevelopment Fund. The following discussion will give an overview of the financial status of each fund. Redevelopment Agency (General) Fund The Redevelopment Agency Fund revenues exceeded expenditures by $1,502,228 for fiscal year 2005-2006. This is primarily due to increased property taxes and expenditures which came in significantly below budget. Budgeted projects such as the Underground Utility Project ($60,000) and the expansion of the Historic Cityhall Parking Lot Project ($190,000) were not completed in the current year and the budget will be carried over to the next fiscal year. Another capital project, Acquisition of Property/Easements, was not realized causing a significant budget savings of $1,679,900. 2005 Redevelopment Bond Project Fund In this fiscal year, the Sunken Gardens Enhancement Project and the Creek Building • Rehabilitation Projects were completed. Several other projects such as the Creek Bank Restoration Project, the Maiden Statue Restoration Project, the Youth Center Project and the Downtown Streetscape II Project were started in the current year and will be carried forward into the next fiscal year. 5 ITEM NUMBER: RA B-1 DATE: 02/13/07 2005 Redevelopment Bond Debt Service Fund • Debt service payments on the 2005 Redevelopment Bond of $574,043 were paid from capital reserves, and will continue to be paid in this manner through September 2007. These are interest only payments. Following the September 2007 payment, debt service payments will be made from the Redevelopment Agency (General) Fund. Payments on the principle will commence in September 2009. Low/Moderate Income Housing Redevelopment Fund Revenues also exceeded expenditures in the Low/Moderate Income Housing Fund, increasing that fund's balance by $654,025. The Agency has reserved $142,918 for encumbrances to SLO County Housing Trust and has committed an additional $395,000 to Habitat for Humanity. FISCAL IMPACT: None. ATTACHMENTS: Fiscal Year 2005-2006 Audited Financial Statement (available for public viewing at the City Clerk's Office). • I 0 CITY OF ATASCADERO CITY COUNCIL AGENDA Tuesday, February 13, 2007 7:00 P.M. City Hall Council Chambers 6907 EI Camino Real Atascadero, California • STUDY SESSION: 5:30 P.M. Downtown Commercial Zoning Text Amendment, Zone Change 2006-0124 (Atascadero Redevelopment Agency) The Atascadero Main Street Organization has requested this study session to discuss the following Downtown zoning issues: 1. A potential change in the zoning ordinance to restrict office, research & development, and health care uses on the first floor within the Downtown Commercial (DC) zoning district, in order to promote more retail and pedestrian - oriented business within the Downtown Commercial (DC) zoning district; and 2. A potential change in the zoning ordinance to require Planning Commission review of all downtown construction projects including those of less than 10,000 square feet. REDEVELOPMENT AGENCY: 6:30 P.M. 1 CLOSED SESSION: (Immediately following Redevelopment Agency Meeting) 1. PUBLIC COMMENT — CLOSED SESSION • 2. CALL TO ORDER a. CONFERENCE WITH LABOR NEGOTIATORS (Govt. Code Sec. 54957.6) Agency Designated Representatives: City Manager Wade McKinney, Assistant City Manager Jim Lewis Employee Organizations: Department Heads, Confidential, Atascadero Police Association, Atascadero Professional Fire Fighters Association Local 3600 3. ADJOURN REGULAR SESSION: 7:00 P.M. PLEDGE OF ALLEGIANCE: Council Member Beraud ROLL CALL: Mayor Luna • Mayor Pro Tem Brennler Council Member Beraud Council Member Clay Council Member O'Malley 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 five minutes. Please state your name for the record before making your presentation. The Council may take action to direct the staff to place a matter of business on a future agenda. A maximum of 30 minutes will be allowed for Community Forum, unless changed by the Council.) APPROVAL OF AGENDA: Roll Call PRESENTATIONS: 1. Boy Scouts of America, A Report on the Impact of Scouting in Atascadero. 2. Proclamation declaring Tuesday, February 27, 2007 as "Spay Day USA." 3. Proclamation recognizing Atascadero High School Community Challenge Days as March 12-13, 2007. 2 • COUNCIL ANNOUNCEMENTS AND REPORTS: (On their own initiative, Council Members may make a brief announcement or a brief report on their own activities. • 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. Reconsideration - of City Council direction to staff on January 23, 2007, concerning Strategy and Timeline for Big Box Ordinance. (Mayor George Luna) 2. Controversial agenda items — Request to discuss placing controversial agenda items at the beginning of agendas to accommodate the participating public. (Council Member Clay) 3. Length of City Council meetings — Request to consider options. (Council Member Beraud) A. CONSENT CALENDAR: (All items on the consent calendar are considered to be routine and non -controversial by City staff and will be approved by one motion if no member of the Council or public wishes to comment or ask questions. If comment or discussion is desired by anyone, the item will be removed from the consent calendar and will be considered in the listed sequence with an opportunity for any member of the public to address the Council concerning the . item before action is taken.) 1. City Council Meeting Minutes — January 9, 2007 ■ City Clerk Recommendation: Council approve the City Council meeting minutes of January 9, 2007. [City Clerk] 2. December 2006 Accounts Payable and Payroll ■ Fiscal Impact: $1,980,937.87. ■ Recommendation: Council approve certified City accounts payable, payroll and payroll vendor checks for December 2006. [Administrative Services] 3. Chico Road — Traffic Way Drainage Improvement Project (Change Order #1 ■ Description: Request for approval of additional funding for drainage improvements at the intersection of Traffic Way and Chico Road. ■ Fiscal Impact: Expenditure of $3,556.53 in previously allocated Drainage Improvement funds. ■ Recommendation: Council authorize the Administrative Services Director to approve Change Order #1 for the Chico Road — Traffic Way Drainage Improvement project to Ajay Excavating, Inc. in the amount of $3,556.53. [Public Works] • 3 B. 0 4. Temporary Road Closure — Coromar Avenue (Paladini) ■ Description: Approval would grant the two-day day -time road closure • request of Coromar Avenue to allow a new home to connect to the public sewer main. ■ Fiscal Impact: None. ■ Recommendation: Council approve the temporary road closure request by Pamela Paladini to close Coromar Avenue on February 21St — 22"d, 2007, from 9:00 a.m. — 4:30 p.m. [Public Works] 5. Historic Banker House Planned Development / ZCH 2005-0109 (5715/5735 Rosario Ave. / Ravatt) ■ Description: Project approval would allow a 10 -unit residential planned development on a project site that is currently developed with a single family residence that has been identified as a Colony Home. ■ Fiscal Impact: Based on the revenue projections from the Taussig Study, the City has developed standard conditions of approval for new development projects that require the cost of maintenance and emergency services to be funded by the project through a combination of road assessment districts, landscape and lighting districts and community facilities districts or other approved means. ■ Recommendations: Council: 1. Adopt on second reading, by title only, Draft Ordinance A approving Zone Change 2006-0128 based on findings to establish Planned Development Overlay Zone #28; and, 2. Adopt on second reading, by title only, Draft Ordinance B approving • Zone Change 2005-0109 based on findings. [Community Development] PUBLIC HEARINGS: 1. Road Abandonment 2006-0017 / Request to Summarily Vacate an Undeveloped Portion of East Front Road (Jacobson/Patel) ■ Description: Upon approval, the City would abandon a 5400 square foot undeveloped portion of East Front Road to accommodate the construction of an 80 room, four story hotel. ■ Disclosure of Ex Parte Communications ■ Fiscal Impact: No significant fiscal impact is anticipated with this road abandonment. ■ Recommendations: Planning Commission Recommends Council: 1. Adopt Draft Resolution A summarily vacating an undeveloped portion of East Front Road right-of-way based on findings and subject to conditions of approval; and, 2. Seek market rate compensation for the undeveloped portion of East Front Road Right of Way. [Public Works] C7 C. MANAGEMENT REPORTS: • 1. Broadcasting of City Council Meetings ■ Description: Request for Council direction concerning the broadcasting of City Council meetings. ■ Fiscal Impact: The cost for implementing the staff recommendation will range from approximately $34,000-49,000 annually depending on the desired options. In addition to this annual cost, $30,000-$40,000 will be required to set up the in-house camera system, which can be covered by PEG fee revenue. ■ Recommendations: Council direct staff to: 1. Begin negotiations with Charter Communications regarding the implementation of a PEG fee with the proceeds to be used for installation of cameras and related recording and transmission equipment in the City Council Chamber; and, 2. Design an appropriate in-house audio and video recording system; and, 3. Implement live broadcasts of City Council meetings on Charter Cable channel 20, live web streaming over the Internet and a video -on - demand archive system; and, 4. Solicit bids from broadcasting and web streaming companies; and, 5. Enter into agreement with AGP Video of Morro Bay to broadcast Council meetings until the permanent in-house system and vendor are established. [City Manager] • 2. City Council Strategic Planning ■ Description: The City Council will discuss, and receive public input, on potential issues to be considered at their Strategic Planning Workshop. ■ Fiscal Impact: None. ■ Recommendations: Council: 1. Invite community input regarding potential strategic planning issues for the February 23-24, 2007 workshop (there will be additional opportunities at the workshop); and, 2. Add potential strategic planning issues from Council Members (there will be additional opportunities at the workshop); and, 3. Review meeting logistics. [City Manager] 3. Fiscal Year 2005-2006 Audit ■ Fiscal Impact: None. ■ Recommendation: Council review and accept the financial audit for the period ended June 30, 2006. [Administrative Services] 4. Financial Reserve Policy ■ Description: This report has been complied, in preparation for the upcoming budget cycle, to assist in evaluating the City's fiscal position and the level of appropriate reserves. ■ Fiscal Impact: None. ■ Recommendation: Council review and accept the financial reserve policy. [Administrative Services] 5 0 93 E. COMMITTEE REPORTS: (The following represent standing committees. • Informative status reports will be given, as felt necessary): Mayor Luna 1. County Mayor's Round Table 2. Finance Committee 3. S.L.O. County Flood Control & Water Conservation District Water Resources Advisory Committee 4. Nacimiento Water Purveyors' Contract Technical Advisory Group 5. North County Water Purveyors Group Mayor Pro Tem Brennler 1. Air Pollution Control District (APCD) 2. Economic Opportunity Commission (EOC) 3. Atascadero Youth Task Force Council Member Beraud 1. Integrated Waste Management Authority (IWMA) 2. City / Schools Committee Council Member Clay 1. City / Schools Committee Council Member O'Malley • 1. S.L.O. Council of Governments (SLOCOG) / S.L.O. Regional Transit Authority (SLORTA) 2. Finance Committee 3. Economic Vitality Corporation, Board of Directors (EVC) 4. League of California Cities — Council Liaison INDIVIDUAL DETERMINATION AND/OR ACTION: 1. City Council 2. City Clerk 3. City Treasurer 4. City Attorney 5. City Manager ADJOURNMENT: 0 Please note: Should anyone challenge any proposed development entitlement listed on this Agenda in court, that • person may be limited to raising those issues addressed at the public hearing described in this notice, or in written correspondence delivered to the City Council at or prior to this public hearing. Correspondence submitted at this public hearing will be distributed to the Council and available for review in the City Clerk's office. I, Shannon Sims, Deputy City Clerk of the City of Atascadero, declare under the penalty of perjury that the foregoing agenda for the February 6, 2007 Regular Session of the Atascadero City Council was posted on February 13, 2007 at the Atascadero City Hall, 6907 EI Camino Real, Atascadero, CA 93422 and was available for public review in the Customer Service Center at that location. Signed this 6th day of February, 2007 at Atascadero, California. aAlM �,J-ZnU) Shannon Sims, Deputy City Clerk City of Atascadero • • 7 City of Atascadero WELCOME TO THE ATASCA DERO CITY COUNCIL MEETING The City Council meets in regular session on the second and fourth Tuesday of each month at 7:00 p.m., at the City Hall• Council Chambers, 6907 EI Camino Real, Atascadero. Matters are considered by the Council in the order of the printed Agenda. 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 during City Hall business hours at the Central Receptionist counter and on our website, www.atascadero.org. An agenda packet is also available for public review at the Atascadero Library, 6850 Morro Road. 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 either read into the record or referred to in their statement will be noted in the minutes and available for review in the City Clerk's office. Council meetings are recorded and may be reviewed by the public. Copies of meeting recordings are available for a fee. Contact the City Clerk for more information (470-3400). In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting or other services offered by this City, please contact the City Manager's Office or the City Clerk's Office, both at (805) 470-3400. Notification at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. TO SPEAK ON AGENDA ITEMS Members of the audience may speak on any item on the agenda. The Mayor will identify the subject, staff will give their report, and the Council will ask questions of staff. The Mayor will announce when the public comment period is open and will request anyone interested to address the Council regarding the matter being considered to step up to the podium. If you wish to speak for, against or comment in any way: • You must approach the podium and be recognized by the Mayor • Give your name and address (not required) • Make your statement • • All comments should be made to the Mayor and Council • No person shall be permitted to make slanderous, profane or negative personal remarks concerning any other individual, absent or present • All comments limited to 5 minutes (unless changed by the Council) • No one may speak for a second time until everyone wishing to speak has had an opportunity to do so, and no one may speak more than twice on any item. If you wish to use a computer presentation to support your comments, you must notify the City Clerk's office at least 24 hours prior to the meeting. Access to hook up your laptop to the City's projector will be provided. You are required to submit to the City Clerk a printed copy of your presentation for the record. Please check in with the City Clerk before the meeting begins to announce your presence and turn in the printed copy. The Mayor will announce when the public comment period is closed, and thereafter, no further public comments will be heard by the Council. TO SPEAK ON SUBJECTS NOT LISTED ON THE AGENDA Under Agenda item, "COMMUNITY FORUM", the Mayor will call for anyone from the audience having business with the Council to: • Please approach the podium and be recognized • Give your name and address (not required) • State the nature of your business This is the time items not on the Agenda may be brought to the Council's attention. A maximum of 30 minutes will be allowed for Community Forum (unless changed by the Council). TO HAVE ITEMS PLACED ON AGENDA All business matters to appear on the Agenda must be in the Office of the City Manager 14 days preceding the Council • meeting. Should you have a matter you wish to bring before the Council, please mail or bring a written communication to the City Manager's office in City Hall prior to the deadline. 0 ITEM NUMBER: A - 1 DATE: 02/13/07 CITY OF ATASCADERO CITY COUNCIL DRAFT MINUTES Tuesday, January 9, 2007, 7:00 P.M. REGULAR SESSION: 7:00 P.M. Mayor Luna called the meeting to order 7:00 p.m. and led the Pledge of Allegiance. ROLL CALL: Present: Council Members Beraud, Clay, O'Malley, Brennler, and Mayor Luna Absent: None Others Present: City Clerk / Assistant to City Manager Marcia McClure Torgerson Staff Present: Assistant City Manager Jim Lewis, Administrative Services Director Rachelle Rickard, Public Works Director Steve Kahn, Community Development Director Warren Frace, Fire Chief Kurt Stone, Police Chief John Couch and City Attorney Patrick Enright. COMMUNITY FORUM: Pastor Tom Gaddis led those present in prayer. Raymond Jansen spoke about the Lewis Group Report regarding health care for Californians, and asked for a resolution of endorsement for the Health Care for All Californian's Plan. Ann Ketcherside presented a plaque to Tom and Lee Cormar for the work they did during the election. She spoke about the uniqueness of Atascadero and the importance of maintaining that uniqueness while the community grows. CC Draft Minutes 01/09/07 Page 1 of 11 7 David Broadwater distributed a handout to the Council regarding televising City Council meetings (Exhibit A), made three recommendations for broadcasting those meetings on Charter Cable channels, and requested placing this on the next Council agenda. Richard Mullin spoke about a new store in the Mission Oaks Annex, asked if a new commercial complex on Santa Rosa Road would have traffic lights installed prior to the completion of the project, and suggested a new high school or junior high school be built near the Del Rio project to free the downtown area for more commercial development. Eric Greening expressed his agreement with the comments made by Mr. Broadwater, and urged the city to include web streaming for Council meetings. He expressed concern that the city will be using the services of Dr. William Mathis to facilitate the upcoming strategic planning session, as he feels this may limit public participation in the meeting and because his fees are high. Joan O'Keefe spoke about her concerns for the Printery building including its not being maintained in good condition and the lack of the state required written preservation statement, and urged that a copy of the grant deed be placed in the file. She also spoke in support of televising Council meetings. Maria Hooper expressed concern that the deed restrictions for the Printery building are not being followed. She is concerned that she is witnessing demolition by neglect, and asked what the city is planning to do to prevent this. is Community Development Director Warren Frace addressed the concerns raised by Ms. Hooper and Mrs. O'Keefe and answered questions of Council. Council Members expressed concern that the tapestries be protected and the broken windows boarded up as soon as possible. Marilyn Brown spoke in support of televising and web streaming City Council meetings. Lee Perkins thanked those who had facilitated the skating rink in the Sunken Gardens and questioned what will become of the Annex at Del Rio Road. She asked that larger facilities be considered for future public workshops, and expressed her support for televising Council meetings. Tom Comar recommended that the issue of televising City Council meetings be placed on the next Council agenda, and explained why the Oppose Wal Mart group did not oppose the new Dollar Store in the Annex. Joanne Main stated that it was sad to see so many businesses closing at the new Mission Annex at the Oaks, and urged the Oppose Wal Mart group to go and speak with those businesses to see what they feel about having a Wal Mart nearby. She urged Council to not create another restrictive ordinance on business. CC Draft Minutes 01/09/07 10 Page 2 of 11 Steve Mathew, CEO of AGP Video Incorporated, made himself available to Council for is any questions they might have regarding meeting documentation by Internet or television. Joan O'Keefe stated it would be helpful to know if the current owner of the Printery will be continuing with his plans for the building as he has it listed for sale. She spoke in favor of expanding the public process for strategic planning. David Broadwater made several protocol suggestions for the public comment period during Council meetings. Mayor Luna closed the Community Forum period. Acting City Manager Jim Lewis reviewed the agenda for the Council Meeting on January 23`d, and spoke about the process for utilizing PEG fees. There was Council consensus to direct staff to negotiate with a local provider for free televising of the next City Council meeting and to come back at the February 13th meeting with a report focusing on PEG fees and the process to move that forward. APPROVAL OF AGENDA: 10 MOTION: B Council Member O'Malley and seconded by Council Y Y Member Clay to approve the agenda. Motion passed 5:0 by a roll -call vote. PRESENTATIONS: 1. Presentations to outgoing Commissioners. Mayor Luna presented awards to outgoing Planning Commissioners Tom Jones and Greg Porter. Mr. Jones thanked the city for the privilege of serving and staff for their great work, and presented the city with a check from PG&E's Economic Development Fund for $3,500 as a down payment on the city's Way Finding Program. Mr. Porter thanked the Council, stated it was a pleasure to serve the community, and thanked staff for their patience and help. 2. Presentation of California Firefighter Joint Apprenticeship Committee (CFFJAC) training plaques by Fire Chief Stone. Chief Stone presented the plaques to Matt Vieira, Matt Miranda, Tom Way, and Tom Birkenfeld and spoke about the training and in-service work experience required for this recognition. COUNCIL ANNOUNCEMENTS AND REPORTS: CC Draft Minutes 01/09/07 Page 3 of 11 Council Member Beraud commented about a survey she had received which was done by the Chico Economic Planning Corporation and stated she did not find it to be a valid or adequate analysis. Council Member Clay asked the City Attorney for clarification of "serial meetings", and spoke about weed abatement, the history of the property across from the Outlets, and the results of his research on Wal Mart. Mayor Luna gave a State of the City address. A. CONSENT CALENDAR: 1. City Council Meeting Minutes — November 28. 2006 ■ City Clerk Recommendation: Council approve the City Council meeting minutes of November 28, 2006. [City Clerk] 2. September 2006 Investment Report ■ Fiscal Impact: None. ■ Recommendation: Council approve the City Treasurer's report for September 2006. [City Treasurer] 3. November 2006 Accounts Payable and Payroll ■ Fiscal Impact: $2,002,842.46. 0 ■ Recommendation: Council approve certified City accounts payable, payroll and payroll vendor checks for November 2006. [Administrative Services] 4. Amendment to Municipal Code on Relationship of Council and Commissioners to Staff ■ Description: Request for approval of the Draft Ordinance, adding language to the Atascadero Municipal Code setting guidelines for Council and Commissions on their relationship with staff. ■ Fiscal Impact: None. ■ Recommendation: Council adopt on second reading, by title only, Draft Ordinance A approving amendment to Municipal Code on relationship of Council and Commissioners to Staff. [City Attorney] • CC Draft Minutes 01/09/07 12 Page 4 of 11 5. Final Map 2006-0134 (Tract 2569) 9500 Las Lomas (TTM 2002-0021) (Barnhard ■ Description: Project approval creates a 28 unit development with a commercial -office building. ■ Fiscal Impact: None. ■ Recommendations: Council: 1. Adopt and Approve Final Map 2006-0134 (Tract 2569); and, 2. Reject, without prejudice to future acceptance on behalf of the public, the offers of dedication for Streets, Open -Space, and Public Utility Easements and authorize and direct City Clerk to endorse for the City Council; and, 3. Authorize City Manager to sign a Subdivision Improvement Agreement for improvements associated with Final Map 2006-0134. [Public Works] 6. Final Map 2006-0137 (Tract 2694) 6750 San Gabriel Road (TTM 2004- 0061) (Larsen) ■ Description: Project approval consists of the division of 8.41 gross acres into two (2) lots ranging in area from 4.85 to 3.56 acres. ■ Fiscal Impact: None. ■ Recommendation: Council accept Final Tract Map 2006-0137 (Tract 2694). [Public Works] 7. Final Map 2004-0099 Tract 2608 11555 Halcon Road TTM 2004-0047 (R.W. Hertel & Sons) ■ Description: Project approval of previously approved Final Map 2004- 0099 with slight modifications to clarify editorial content and offer of dedication information. ■ Fiscal Impact: None. ■ Recommendations: Council: 1. Adopt and Approve Final Map 2004-0099 (Tract 2608); and, 2. Reject, without prejudice to future acceptance on behalf of the public, the offers of dedication shown on the map for Access Easements over Lots 39, 40, 41, and over Ranada Circle (private street); Sanitary Sewer; Storm Drain; and Public Utility Easements. [Public Works] 8. Increase in Part-time Salaries to Comply with Chancles to the Minimum Waste ■ Description: Request for approval of the hourly minimum wage increase approved on January 1, 2007 from $6.75 per hour to $7.50 per hour.) ■ Fiscal Impact: Approximately $9,000.00 a year. ■ Recommendation: Council approve the new wage schedule for part-time employees incorporating the new California minimum wage of $7.50 per hour effective January 1, 2007. [City Manager] CC Draft Minutes 01/09/07 Page 5 of 11 13 Mayor Luna pulled Items #A-6 and 7, explaining that the tax bonds were not ready. Items pulled for discussion: Council Member Clay, Item #A-4. MOTION: By Council Member O'Malley and seconded by Council Member Clay to approve Items #A-1, 2, 3, 5 and 8. Motion passed 5:0 by a roll -call vote. (Beraud, Brennler abstained on Item #A-1) (Item #A-5.3 Contract No. 2007-001) Item #A-4: Council Member Clay referred to page number 43, (d) and suggested the adding the following: "Unless the third party requests that a specific Commissioner or Council Member be present." There was Council discussion and agreement that the language would remain the same and that it would be appropriate to work through the City Manager if there is such a request. MOTION: By Council Member Clay and seconded by Council Member Beraud to approve Item #A-4. Motion passed 5:0 by a roll -call vote. (Ordinance No. 504) B. MANAGEMENT REPORTS: 0 1. Office of Traffic SafetY (OTS) Grant /Authorization to Purchase Auto Extrication Equipment ■ Description: Authorization will allow replacement of outdated equipment as well as provide agencies with new rescue capabilities. ■ Fiscal Impact: None. ■ Recommendations: Council: 1. Authorize the purchase of auto extrication equipment from L.N. Curtis & Sons totaling $215,443; and, 2. Authorize the purchase of equipment from Diamondback Fire & Rescue totaling $25,365. [Fire] Fire Chief Kurt Stone gave the report. PUBLIC COMMENT — None MOTION: By Council Member O'Malley and seconded by Council Member Clay to Authorize the purchase of auto extrication equipment from L.N. Curtis & Sons totaling $215,443; and, Authorize the purchase of equipment from Diamondback Fire & Rescue totaling $25,365. Motion passed 5:0 by a roll -call vote. CC Draft Minutes 01/09/07 14 Page 6 of 11 2. Downtown Streetscape Phase II: Public Process ■ Description: Request for direction on public process for potential Downtown Streetscape Phase II improvements. ■ Fiscal Impact: Staff time and advertising costs. ■ Recommendation: Council provide direction on the public review and input process for potential Downtown Streetscape Phase II Improvements. [Public Works] Deputy Public Works Director David Athey gave the staff report and with Public Works Director Steve Kahn answered questions of Council. PUBLIC COMMENT Eric Greening expressed support for the idea of a walking tour followed by a town hall meeting and questioned the roll of the Main Street Design Committee in this process. Steve Martin, Executive Director Atascadero Main Street, spoke in favor of continuing with the improvements in the downtown and reported that the Design Committee and Board would like to be in the forefront of input for the next phase of the revitalization plan. Bruce Bevans stated his concerns with the timeframe for this plan given the Highway 101/41 interchange project. Mayor Luna closed the Public Comment period. There was Council consensus to begin the process by involving the Main Street Design Committee, move into a walking tour, then have a town hall meeting which, at the Mayor's discretion working with the Planning Commission and Parks and Recreation Commission Chair's, may be a joint session, then after public input to come back to Council for a decision on when and what will be built. Mayor Luna recessed the hearing at 9:10 p.m. Mayor Luna called the meeting back to order at 9:15 p.m. 3. Atascadero Road Program ■ Description: An update report on the Atascadero Road Program. ■ Fiscal Impact: None. ■ Recommendation: Council receive this report on the Atascadero Road Program. [Public Works] Public Works Director / City Engineer Steve Kahn gave the staff report and answered questions of Council. CC Draft Minutes 01/09/07 Page 7 of 11 15 PUBLIC COMMENT Eric Greening spoke in favor of being aware of pedestrian and bicycle circulation modes during the planning process. Mayor Luna closed the Public Comment period. 4. Temporary Banner Policy for Sunken Gardens and Atascadero Lake Park • Description: Request for approval of the proposed temporary banner policy. ■ Fiscal Impact: None. • Recommendation: Council review and approve the proposed temporary banner policy, modify as may be appropriate. [Community Services] Community Services Director Brady Cherry gave the staff report and answered questions of Council. Council Member Clay expressed concern with Procedure #5 because youth groups such as Little League and Youth Basket ball have traditionally used the banners in these areas. He would like to continue to allow those types of groups to use the holders when not otherwise reserved. PUBLIC COMMENT Eric Greening stated he approved of the policy as written and questioned whether the Colony District included any of the school campuses and if non-profit groups or government organizations include the schools. Director Cherry stated the Colony District referred to the Main Street downtown district, and it does include the schools as agencies that can use the banner holders. Joanne Main indicated the Chamber agrees with the permit procedures, and stated the Chamber uses its funds to maintain the adjoining island and therefore the option to use it for banners is not preferred. Mayor Luna closed the Public Comment period. MOTION: By Council Member O'Malley and seconded by Mayor Pro Tem Brennler to support the staff recommendation and to include the flag holders on EI Camino Real in front of the Sunken Gardens, that all of the same applications and procedures will apply, and that the flag holders should only be used during the actual days of an event. Motion passed 4:1 by a roll -call vote. (Clay opposed) • CC Draft Minutes 01/09/07 16 Page 8 of 11 5. Department of Transportation Excess Property — Highway 41 and Cemetery Road (City of Atascadero) ■ Description: Request for authorization to purchase surplus property from CalTrans. ■ Fiscal Impact: A maximum of $100,500.00, and minimal expenditures for maintenance. ■ Recommendations: Council: 1. Authorize the City Manager to execute a contract with The California Department of Transportation (CalTrans) in the amount $99,500.00 for the purchase of a 0.261 acre parcel of land, deemed excess right of way by the California State Department of Transportation and located on the southwest side of Highway 41, near the intersection of Cemetery Road; and, ?. Authorize the Director of Administrative Services to appropriate $100,500 from the General Funds for the purchase of a 0.261 acre parcel of land, deemed excess right of way by the California State Department of Transportation and located on the southwest side of Highway 41, near the intersection of Cemetery Road. [Community Development] Community Development Director Warren Frace gave the staff report and answered questions of Council. 0 PUBLIC COMMENT • Ann Fletcher commented that she would not like to see anything built on this corner and that the money could be spent more wisely in another area. Mayor Luna closed the Public Comment period. Council Member Clay stated he was against this proposal as it is too much money to pay for a lot that has no zoning on it, and there are better uses for General Fund money. Council Member O'Malley stated he has similar concerns because of zoning, drainage, and sewer/septic issues, and felt the city could do a better job of negotiating on this. MOTION: By Council Member Beraud and seconded by Mayor Pro Tem Brennler to approve staff's recommendation to authorize the City Manager to execute a contract with The California Department of Transportation and, authorize the Director of Administrative Services to appropriate the $100,500 from the General Funds for the purchase of the property in question. Motion passed 3:2 by a roll -call vote. (Clay, O'Malley opposed) (Item #B-5.1 Contract No. 2007-002) CC Draft Minutes 01/09/07 Page 9 of 11 17 6. Transit Center Study / State Transit Assistance (STA) Grant Application ■ Description: Request authorization to submit a grant application for a Transit Study. ■ Fiscal Impact: Staff estimates the cost of this study at $100,000.00 with proposed STA grant funds of $70,000 and a $30,000 match funded with existing Federal 5307 funds. ■ Recommendation: Council approve the submission of a grant application for a Transit Center Site Selection and Preliminary Design, Engineering and Environmental Study. [Public Works] Public Works Director /City Engineer Steve Kahn gave the staff report and answered questions of Council. PUBLIC COMMENT Eric Greening commented on the source of funds for this project, how they can be used, and made suggestions for the use of some of the STA funds, and for an outreach to the transit using community. Mayor Luna closed the Public Comment period. MOTION: By Council Member O'Malley and seconded by Council Member Beraud to approve the submission of a grant application for a Transit Center Site Selection and Preliminary Design, Engineering and Environmental Study. Motion passed 5:0 by a roll -call vote. C. COMMITTEE REPORTS: Mayor Luna 1. County Mayor's Round Table: There is a movement to put in a 211 number to take the pressure off of the 911 emergency number. Received an update from a legislative analyst from Assemblyman Blakeslee's office regarding city reserves. Council Member O'Malley 1. League of California Cities — Council Liaison: Will be attending the conference in Sacramento. Has been appointed to the Administrative Services Policy Committee, key issues are ethics and public records and emails. • CC Draft Minutes 01/09/07 18 Page 10 of 11 • D. INDIVIDUAL DETERMINATION AND/OR ACTION: City Council Mayor Luna referred to a letter received from the Atascadero Historical Society regarding revisiting the negotiations for the Colony House/EI Camino Creek parcel and suggested bringing this back to the Council. City Clerk Marcia Torgerson gave a brief history of this issue. City Attorney Patrick Enright reported that the School District is preparing to proceed with the transference of the property to the City, it will be on their agenda in February, and Council will see it shortly thereafter. City Clerk City Clerk Marcia Torgerson reported that she has received three applications for the vacancy on the Planning Commission and none for the vacancy on the Parks and Recreation Commission and asked for further direction. MOTION: By Council Member Clay and seconded by Council Member Beraud to go past 11:00 p.m. Motion passed 5:0 by a roll -call vote. Council directed City Clerk Torgerson to re -advertise for the Parks and Recreation Commission vacancy and proceed with interviews for the Planning Commission on January 23rd E. ADJOURNMENT: Mayor Luna adjourned the meeting at 11:02 p.m. to the Public Financing Authority. The next regularly scheduled meeting of the City Council will be on January 23, 2006. MINUTES PREPARED BY: Grace Pucci Deputy City Clerk The following exhibit is available for review in the City Clerk's office: Exhibit A — David Broadwater, handout CC Draft Minutes 01/09/07 Page 11 of 11 19 • C • 20 • 0 • ITEM NUMBER: A - 2 DATE: 02/13/07 Atascadero City Council Staff Report - Administrative Services Department December 2006 Accounts Payable and Payroll RECOMMENDATION: Council approve certified City accounts payable, payroll and payroll vendor checks for December 2006. DISCUSSION: Attached for City Council review and approval are the following: Payroll Dated 12/14/06 Dated 12/28/06 Accounts Payable Dated 12/1/06 - 12/31/06 FISCAL IMPACT: Checks # 23568 - 23610 Direct Deposits Checks # 23611 - 23651 Direct Deposits Checks # 108406 - 108810 & EFTs 502 - 509 TOTAL AMOUNT Total expenditures for all funds is $ 49,432.68 224,499.78 42,372.35 203,779.24 1,460,853.82 $ 1,980,937.87 $ 1,980,937.87 CERTIFICATION: The undersigned certifies that the attached demands have been released for payment and that funds are available for these demands Rachelle Rickard, Director of Administrative Services ATTACHMENT: December 2006 Eden Warrant Register in the amount of $ 1,460,853.82 21 Check Check Number Date City of Atascadero Disbursement Listin4 For the Month of December 2006 Vendor Description Amount 108406 12/01/2006 ATASCADERO FIRE EMPLOYEE ASSN. Payroll Vendor Payment 700.00 108407 12/01/2006 FAMILY SUPPORT DIVISION Payroll Vendor Payment 207.69 108408 12/01/2006 HARTFORD LIFE INSURANCE Payroll Vendor Payment 11,769.73 108409 12/01/2006 ICMA RETIREMENT TRUST - 401 Payroll Vendor Payment 272.38 108410 12/01/2006 ICMA RETIREMENT TRUST - 457 Payroll Vendor Payment 866.59 108411 12/01/2006 NATIONWIDE RETIREMENT SOLUTION Payroll Vendor Payment 365.43 108412 12/01/2006 PERS LONG TERM CARE PROGRAM Payroll Vendor Payment 46.19 108413 12/01/2006 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEIN Payroll Vendor Payment 73,964.04 108414 12/01/2006 SEIU LOCAL 620 Payroll Vendor Payment 745.14 502 12/04/2006 MID -STATE BANK Accounts Payable Check 196.77 503 12/05/2006 MID -STATE BANK Payroll Vendor Payment 42,445.90 504 12/05/2006 EMPLOYMENT DEV DEPARTMENT Payroll Vendor Payment 10,137.95 505 12/05/2006 EMPLOYMENT DEV. DEPARTMENT Payroll Vendor Payment 864.91 108415 12/05/2006 SAN LUIS OBISPO COUNTY TAX COL Accounts Payable Check 21,501.00 108416 12/08/2006 A -JAY EXCAVATING, INC. Accounts Payable Check 98,778.7 108417 12/08/2006 ACTIVE NETWORK, INC. Accounts Payable Check 600.21 108418 12/08/2006 KEITH AGGSON Accounts Payable Check 102.00 108419 12/08/2006 ALL ABOUT PRODUCE, INC. Accounts Payable Check 739.00 108420 12/08/2006 AMERICAN WEST TIRE & AUTO INC Accounts Payable Check 210.33 108421 12/08/2006 AMK FOODSERVICE COMPANY Accounts Payable Check 323.56 108422 12/08/2006 ANTECH DIAGNOSTICS Accounts Payable Check 1,086.45 108423 12/08/2006 API, ATLAS PERFORMANCE INDUST Accounts Payable Check 410.00 108424 12/08/2006 ARAMARK UNIFORM SERVICES Accounts Payable Check 489.09 108425 12/08/2006 GINA ARIAS Accounts Payable Check 12.02 108426 12/08/2006 ASSC. OF ZOOS & AQUARIUMS Accounts Payable Check 1,624.00 108427 12/08/2006 AT&T Accounts Payable Check 69.37 108428 12/08/2006 AT&T YELLOW PAGES Accounts Payable Check 177.48 108429 12/08/2006 AT&T/MCI Accounts Payable Check 79.46 108430 12/08/2006 ATASCADERO FORD Accounts Payable Check 45.50 108431 12/08/2006 ATASCADERO HAY & FEED Accounts Payable Check 7.50 108432 12/08/2006 ATASCADERO HOMEOWNERS, LLC Accounts Payable Check 460.00 108433 12/08/2006 ATASCADERO MUTUAL WATER CO. Accounts Payable Check 12.00 108434 12/08/2006 AZA Accounts Payable Check 570.00 108435 12/08/2006 ANN BANKS Accounts Payable Check 161.61 22 Check umber 108436 108437 108438 108439 Check Date 12/08/2006 12/08/2006 12/08/2006 12/08/2006 108440 12/08/2006 108441 12/08/2006 108442 12/08/2006 108443 12/08/2006 108444 12/08/2006 108445 12/08/2006 108446 12108/2006 108447 12108/2006 108448 12/08/2006 108449 12/08/2006 108450 12/08/2006 108451 0108452 108453 108454 108455 108456 108457 108458 108459 108460 108461 108462 108463 108464 108465 108466 108467 108468 108469 108470 108471 12/08/2006 12/08/2006 12/08/2006 12/08/2006 12/08/2006 12/08/2006 12/08/2006 12/08/2006 12/08/2006 12/08/2006 12/08/2006 12/08/2006 12/08/2006 12/08/2006 12/08/2006 12/08/2006 12/08/2006 12/08/2006 12/08/2006 12/08/2006 12/08/2006 City of Atascadero Disbursement Listing For the Month of December 2006 Vendor BASSETT'S CRICKET RANCH,INC. CINDY K. BENSON MISTY BETSCHART BFGC ARCHITECTS PLANNERS, INC. JACK BRIDWELL CASEY BRYSON BSA PACK 333 CAL -COAST MACHINERY, INC CALIF. CITY MANAGEMENT FOUND. CALIFORNIA CODE CHECK CALIFORNIA PEACE OFFICERS ASSN CANNON ASSOCIATES CELLULAR ONE CENTRAL COAST ARCHAEOLOGY CENTRAL COAST SEA FOOD CENTRAL VALLEY TOXICOLOGY CHEM CLEAN CHICAGO GRADE LANDFILL KATHY J. CINOWALT COAST ELECTRONICS COASTAL COPY, LP COASTAL IMAGING SUPPLIES CONWAY DISTRIBUTORS COUNTY OF SAN LUIS OBISPO CRYSTAL SPRINGS WATER CSMFO CULLIGAN INDUSTRIAL WATER SYST CUSTOM PRODUCTS CORP. D4 ELECTRIC DARRYUS LOCK AND SAFE DATAPRINT CORPORATION DAN DAVIS DECOU LUMBER COMPANY DEPARTMENT OF JUSTICE DEPARTMENT OF TRANSPORTATION DOCUTEAM Description Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Amount 166.16 735.18 60.00 14,303.70 5,950.00 62.75 108.00 241.80 35.00 7,767.50 240.00 520.00 54.59 3,875.00 160.75 60.00 99.53 120.00 186.00 77.85 78.08 921.92 130.36 133.30 231.00 330.00 70.00 235.75 846.31 289.49 143.52 227.50 288.38 2,004.00 1,893.27 49.90 23 Check Check Number Date 108472 108473 108474 108475 108476 108477 108478 108479 108480 108481 108482 108483 108484 108485 108486 108487 108488 108489 108490 108491 108492 108493 108494 108495 108496 108497 108498 108499 108500 108501 108502 108503 108504 108505 108506 City of Atascadero Disbursement Listing For the Month of December 2006 Vendor 12/08/2006 JEROLD DODSON 12/08/2006 DOGGIE WALK BAGS COMPANY 12/08/2006 DORMAN HYDRO SEEDING 12/08/2006 EASYLINK SERVICES CORP. 12/08/2006 ED'S FLY MEAT, INC. 12/08/2006 ELKHART BRASS MFG CO., INC. 12/08/2006 ELLIOTT'S PHARMACY 12/08/2006 ESCUELA DEL RIO 12/08/2006 EWING IRRIGATION GOLF INDUSTRL 12/08/2006 FARM SUPPLY COMPANY 12/08/2006 MAT FAWCETT 12/08/2006 FERGUSON ENTERPRISES, INC. 12/08/2006 FERRELL'S AUTO REPAIR 12/08/2006 FGL ENVIRONMENTAL 12/08/2006 FIRST AM REAL ESTATE SOLUTIONS 12/08/2006 FOOD FOR LESS 12/08/2006 FRAZEE INDUSTRIES, INC. 12/08/2006 FRUIN COMMUNICATIONS 12/08/2006 THOMAS E. GANDY 12/08/2006 GAS COMPANY 12/08/2006 GATEWAY COMPANIES, INC. 12/08/2006 GEM AUTO PARTS 12/08/2006 GENERAL SERVICES ADMINISTATION 12/08/2006 GEO-WEST LAND CONSULTANTS, INC 12/08/2006 GIBBS INTERNATIONAL TRUCKS 12/08/2006 GILBERT'S LANDSCAPES 12/08/2006 KENNETH GLYNN 12/08/2006 GRANITE CONSTRUCTION, INC. 12/08/2006 GRAY LIFT, INC. 12/08/2006 LISA GRAYBILL 12/08/2006 GRISANTI HARDWARE 12/08/2006 H.D. PETERSON 12/08/2006 ROCHELLE 0. HANSON 12/08/2006 BETTINA HARMON 12/08/2006 HART IMPRESSIONS PRINT & COPY Description Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Amount --* 29.10 134.69 880.00 0.04 54.75 118.16 30.00 259.20 281.49 30.35 109.90 429.00 746.79 334.00 100.00 808.15 83.5ig1,080.0 151.70 346.41 6,533.38 939.20 13.05 2,157.50 188.32 250.00 318.50 7,795.23 204.72 60.00 52.33 80.16 185.00 60.00 244.51 City of Atascadero Disbursement Listinq 25 For the Month of December 2006 Check Check umber Date Vendor Description Amount 108507 12/08/2006 HARVEY'S HONEYHUTS Accounts Payable Check 1,021.95 108508 12/08/2006 JOANN B. HEAD Accounts Payable Check 800.00 108509 12/08/2006 HI STANDARD AUTOMOTIVE Accounts Payable Check 101.54 108510 12/08/2006 HINDERLITER, DE LLAMAS Accounts Payable Check 1,263.19 108511 12/08/2006 HOBBY SHOP Accounts Payable Check 1,645.28 108512 12/08/2006 HSM ELECTRONIC PROTECTION SCVS Accounts Payable Check 420.00 108513 12/08/2006 INFORMATION TECHNOLOGY Accounts Payable Check 1,395.19 108514 12/08/2006 INTELLICEPT Accounts Payable Check 2,388.61 108515 12/08/2006 IRRIGATION CONTROL SYSTEMS Accounts Payable Check 846.95 108516 12/08/2006 JIFFY LUBE/SOUND BILLING Accounts Payable Check 100.20 108517 12/08/2006 CARRIE L. KNIGHT Accounts Payable Check 160.00 108518 12/08/2006 KPRL 1230 AM Accounts Payable Check 367.00 108519 12/08/2006 LAUTZENHISER'S STATIONARY Accounts Payable Check 116.01 108520 12/08/2006 LEE WILSON ELECTRIC CO. INC Accounts Payable Check 3,211.50 108521 12/08/2006 ASHLEY LIESER Accounts Payable Check 13.97 108522 12/08/2006 LIFE ASSIST, INC. Accounts Payable Check 454.53 108523 12/08/2006 LOCATE PLUS CORPORATION Accounts Payable Check 110.00 10 108524 12/08/2006 LYNDON'S AUTOMOTIVE Accounts Payable Check 1,556.49 108525 12/08/2006 MAINLINE UTILITY CO. Accounts Payable Check 1,200.00 108526 12/08/2006 MANAGED HEALTH NETWORK, INC. Accounts Payable Check 300.80 108527 12/08/2006 MARTINELLI LANDSCAPE CONST INC Accounts Payable Check 705.01 108528 12/08/2006 STEVE MCHARRIS Accounts Payable Check 75.00 108529 12/08/2006 MED -TECH RESOURCE, INC. Accounts Payable Check 726.30 108530 12/08/2006 MEDWORKS, INC. Accounts Payable Check 156.00 108531 12/08/2006 MID -COAST FIRE PROTECTION, INC Accounts Payable Check 250.00 108532 12/08/2006 MID -COAST GEOTECHNICAL, INC. Accounts Payable Check 1,295.00 108533 12/08/2006 MID -COAST MOWER & SAW Accounts Payable Check 878.55 108534 12/08/2006 MINER'S ACE HARDWARE Accounts Payable Check 505.05 108535 12/08/2006 MIRACLE RECREATION EQUIPMENT Accounts Payable Check 196.81 108536 12/08/2006 MISSION UNIFORM SERVICE Accounts Payable Check 178.24 108537 12/08/2006 MOST DEPENDABLE FOUNTAINS Accounts Payable Check 137.00 108538 12/08/2006 MPI DOCUMENT MANAGEMENT Accounts Payable Check 82.94 108539 12/08/2006 DAVID MUEHLHAUSEN Accounts Payable Check 171.33 108540 12/08/2006 MUSIC FACTORY Accounts Payable Check 93.84 108541 12/08/2006 MELISSA NEILSON Accounts Payable Check 40.00 108542 12/08/2006 NORTH COAST ENGINEERING INC. Accounts Payable Check 1,607.35 25 City of Atascadero Disbursement Listinq 26 For the Month of December 2006 Check Check Number Date Vendor Description Amount 108543 12/08/2006 NORTH COUNTY SEPTIC SERVICE Accounts Payable Check 425.00 108544 12/08/2006 O'DONNELL'S ATASC. QUICK LUBE Accounts Payable Check 32.05 108545 12/08/2006 OFFICE DEPOT INC. Accounts Payable Check 1,948.10 108546 12/08/2006 OUTLET TOOL SUPPLY Accounts Payable Check 67.95 108547 12/08/2006 PACIFIC COAST GYMNASTICS CENTE Accounts Payable Check 336.00 108548 12/08/2006 PACIFIC GAS AND ELECTRIC Accounts Payable Check 121.59 108549 12/08/2006 PACIFIC HARVEST CATERING CO. Accounts Payable Check 1,947.50 108550 12/08/2006 PASO ROBLES SAFE & LOCK Accounts Payable Check 207.39 108551 12/08/2006 KATHLEEN A. PENCE Accounts Payable Check 12,468.75 108552 12/08/2006 PENFIELD & SMITH Accounts Payable Check 1,511.00 108553 12/08/2006 PERFORMANCE CLEANING SYSTEMS Accounts Payable Check 1,380.00 108554 12/08/2006 PERRY'S PARCEL & COURIER SVC Accounts Payable Check 280.87 108555 12/08/2006 PICS & PRINTS Accounts Payable Check 321.75 108556 12/08/2006 PIERCE MANUFACTURING, INC. Accounts Payable Check 2,117.29 108557 12/08/2006 SCOTT E. PIPAN Accounts Payable Check 241.40 108558 12/08/2006 PITNEY BOWES PURCHASE POWER Accounts Payable Check 251.64 108559 12/08/2006 JEAN PONEK Accounts Payable Check 60.00 108560 12/08/2006 PRINT LOGIC, INC. Accounts Payable Check 70.0 108561 12/08/2006 PRO MOTION SIGNS & SPORTS Accounts Payable Check 481.56 108562 12/08/2006 PROCARE JANITORIAL SUPPLY Accounts Payable Check 719.84 108563 12/08/2006 PUBLIC SAFETY CENTER, INC. Accounts Payable Check 123.22 108564 12/08/2006 GRACE L. PUCCI Accounts Payable Check 412.50 108565 12/08/2006 QUILL CORPORATION Accounts Payable Check 65.91 108566 12/08/2006 QUINN RENTAL SERVICES Accounts Payable Check 721.63 108567 12/08/2006 RAMINHA CONSTRUCTION, INC. Accounts Payable Check 63,151.25 108568 12/08/2006 RECOGNITION WORKS Accounts Payable Check 44.83 108569 12/08/2006 REDWOOD TOXICOLOGY LABORATORY Accounts Payable Check 69.45 108570 12/08/2006 CAROLE ROBINSON Accounts Payable Check 489.00 108571 12/08/2006 RT TURNER GRADING AND PAVING Accounts Payable Check 6,658.86 108572 12/08/2006 SAFEGUARD BUSINESS SYSTEMS,INC Accounts Payable Check 144.27 108573 12/08/2006 SAFETY-KLEEN INC. Accounts Payable Check 355.25 108574 12/08/2006 SAN LUIS PAPER Accounts Payable Check 82.55 108575 12/08/2006 SAN LUIS POWERHOUSE Accounts Payable Check 442.50 108576 12/08/2006 SANTA MARIA TIRE, INC. Accounts Payable Check 972.38 108577 12/08/2006 LISETTE SCHOLL Accounts Payable Check 53.9io 26 City of Atascadero Disbursement Listinq For the Month of December 2006 Check Check tuber Date Vendor Description Amount 108578 12/08/2006 SCOTT O'BRIEN FIRE & SAFETY CO Accounts Payable Check 236.00 108579 12/08/2006 SIERRA DISPLAY INC. Accounts Payable Check 364.65 108580 12/08/2006 SIGN OUTLET Accounts Payable Check 153.38 108581 12/08/2006 SMART AND FINAL Accounts Payable Check 212.15 108582 12/08/2006 JASON SMITH Accounts Payable Check 281.00 108583 12/08/2006 SOFTWARE SPECTRUM Accounts Payable Check 1,709.30 108584 12/08/2006 LESLIE STAFFORD Accounts Payable Check 40.00 108585 12/08/2006 STEVE SCHMIDT TOPSOIL Accounts Payable Check 455.81 108586 12/08/2006 MICHAEL STORNETTA Accounts Payable Check 281.00 108587 12/08/2006 SUN BADGE COMPANY Accounts Payable Check 29.25 108588 12/08/2006 TAYLOR RENTAL CENTER Accounts Payable Check 1,650.87 108589 12/08/2006 CALLIE TAYLOR Accounts Payable Check 119.53 108590 12/08/2006 VOID Accounts Payable Check 0.00 108591 12/08/2006 TEMPLETON UNIFORMS Accounts Payable Check 71.50 108592 12/08/2006 KRISTIN K. THAYER Accounts Payable Check 125.00 108593 12/08/2006 LARA TRACY Accounts Payable Check 50.00 12/08/2006 TRIBUNE Accounts Payable Check 171.00 10108594 108595 12/08/2006 SUZANNE TROCKMAN Accounts Payable Check 60.00 108596 12/08/2006 UCSB ECONOMIC FORECAST PROJECT Accounts Payable Check 5,000.00 108597 12/08/2006 ULTREX BUSINESS PRODUCTS Accounts Payable Check 414.78 108598 12/08/2006 UNION ASPHALT, INC. Accounts Payable Check 279.97 108599 12/08/2006 UPS Accounts Payable Check 6.23 108600 12/08/2006 VALLEY PACIFIC PETROLEUM SVCS Accounts Payable Check 4,725.18 108601 12/08/2006 VERIZON WIRELESS Accounts Payable Check 178.70 108602 12/08/2006 WALLACE GROUP Accounts Payable Check 94,225.13 108603 . 12/08/2006 TOM WAY Accounts Payable Check 77.00 108604 12/08/2006 NANCY E. WEBBER, PH.D. Accounts Payable Check 295.00 108605 12/08/2006 WILLIAM P. WHITE Accounts Payable Check 232.00 108606 12/08/2006 CHAD C. & OLIVIA B. WITTSTROM Accounts Payable Check 760.00 108607 12/08/2006 YESTERDAYS SPORTSWEAR Accounts Payable Check 444.02 108608 12/08/2006 Z.A.P. MANUFACTURING, INC. Accounts Payable Check 1,815.67 108609 12/08/2006 ZOOGEN, INC. Accounts Payable Check 100.00 506 12/15/2006 MID -STATE BANK Accounts Payable Check 479.00 108610 12/15/2006 ATASCADERO FIRE EMPLOYEE ASSN. Payroll Vendor Payment 700.00 108611 12/15/2006 ATASCADERO MID MGRS ORG UNION Payroll Vendor Payment 20.00 27 Check Number 108612 108613 108614 108615 108616 108617 108618 108619 108620 108621 108622 108623 108624 108625 108626 108627 108628 507 508 509 108629 108630 108631 108632 108633 108634 108635 108636 108637 108638 108639 108640 108641 108643 108644 City of Atascadero Disbursement Listinq For the Month of December 2006 Check Date Vendor 12/15/2006 ATASCADERO POLICE OFFICERS ASN 12/15/2006 AXA EQUITABLE 12/15/2006 FAMILY SUPPORT DIVISION 12/15/2006 HARTFORD LIFE INSURANCE 12/15/2006 ICMA RETIREMENT TRUST - 401 12/15/2006 ICMA RETIREMENT TRUST - 457 12/15/2006 KENNEDY CLUB FITNESS 12/15/2006 NATIONWIDE RETIREMENT SOLUTION 12/15/2006 PERS LONG TERM CARE PROGRAM 12/15/2006 CALIF PUBLIC EMPLOYEES RETIREMENT SYSTEI' 12/15/2006 SEIU LOCAL 620 12/15/2006 UNITED WAY OF SLO COUNTY 12/15/2006 BLUE CROSS OF CALIFORNIA 12/15/2006 AFLAC 12/15/2006 BLUE SHIELD OF CALIFORNIA 12/15/2006 DELTA DENTAL, ATTN: ACCOUNTING 12/15/2006 THE STANDARD UNIT 22 12/19/2006 MID -STATE BANK 12/19/2006 EMPLOYMENT DEV DEPARTMENT 12/19/2006 EMPLOYMENT DEV. DEPARTMENT 12/21/2006 A -JAY EXCAVATING, INC. 12/21/2006 AIR POLLUTION CONTROL DISTRICT 12/21/2006 ALLIANT INT. UNIVERSITY 12/21/2006 ALLSTAR FIRE EQUIPMENT, INC. 12/21/2006 AMI PIPE & SUPPLY 12/21/2006 ROBERT BRUCE ANDERSON 12/21/2006 ARAMARK UNIFORM SERVICES 12/21/2006 AT&T 12/21/2006 AT&T/MCI 12/21/2006 ATASCADERO AUDIO FX 12/21/2006 ATASCADERO COMMUNITY 12/21/2006 ATASCADERO FORD 12/21/2006 ATASCADERO HOMEOWNERS, LLC 12/21/2006 ATASCADERO MUTUAL WATER CO. 12/21/2006 ATASCADERO NATIVE TREE ASSC. Description Payroll Vendor Payment Accounts Payable Check Payroll Vendor Payment Payroll Vendor Payment Payroll Vendor Payment Payroll Vendor Payment Payroll Vendor Payment Payroll Vendor Payment Payroll Vendor Payment Payroll Vendor Payment Payroll Vendor Payment Payroll Vendor Payment Payroll Vendor Payment Payroll Vendor Payment Payroll Vendor Payment Payroll Vendor Payment Payroll Vendor Payment Payroll Vendor Payment Payroll Vendor Payment Payroll Vendor Payment Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Amount . 616.68 32.42 207.69 11,769.73 272.38 866.59 44.00 404.07 46.19 76,727.83 746.67 31.00 105,731.57 3,961.20 1,881.70 8,258.08 1,631.1 je 50,736.95 12,854.22 868.31 1,352.40 100.00 155.00 426.79 88.66 20,007.61 335.23 1,159.54 415.19 289.14 31,133.00 3,451.56 225.00 7,464.8 500.00 City of Atascadero Disbursement Listing For the Month of December 2006 Check Check umber Date Vendor Description Amount 108645 12/21/2006 ATASCADERO NEWS Accounts Payable Check 2,051.50 108646 12/21/2006 ATASCADERO TRAFFIC WAY STORAGE Accounts Payable Check 647.00 108647 12/21/2006 ATD Accounts Payable Check 175.00 108648 12/21/2006 AVAYA INC. Accounts Payable Check 22.42 108649 12/21/2006 ROBERT J. BAGBY Accounts Payable Check 2,130.59 108650 12/21/2006 BATTERY SYSTEMS Accounts Payable Check 64.30 108651 12/21/2006 BILLOW'S CUSTOM EMBROIDERY Accounts Payable Check 531.98 108652 12/21/2006 CAL -COAST REFRIGERATION, INC Accounts Payable Check 1,347.50 108653 12/21/2006 CALIFORNIA CODE CHECK Accounts Payable Check 42,735.64 108654 12/21/2006 CALIFORNIA CONSERVATION CORP Accounts Payable Check 1,250.00 108655 12/21/2006 CAM -CA ASSC. OF MUSEUMS Accounts Payable Check 500.00 108656 12/21/2006 BRADY CHERRY Accounts Payable Check 300.00 108657 12/21/2006 CHICAGO GRADE LANDFILL Accounts Payable Check 160.00 108658 12/21/2006 JOSEPH CHOUINARD P.E. Accounts Payable Check 2,733.91 108659 12/21/2006 CITY CLERKS ASSC OF CALIF Accounts Payable Check 120.00 108660 12/21/2006 CLASSIC COACH WERKS Accounts Payable Check 493.96 108661 12/21/2006 TIMOTHY CLEAVER Accounts Payable Check 145.00 108662 12/21/2006 COAST ELECTRONICS Accounts Payable Check 5,091.25 108663 12/21/2006 COASTAL COPY, LP Accounts Payable Check 125.90 108664 12/21/2006 COASTAL IMAGING SUPPLIES Accounts Payable Check 76.15 108665 12/21/2006 COASTLINE EQUIPMENT Accounts Payable Check 330.75 108666 12/21/2006 HOWIE CONROY Accounts Payable Check 145.00 108667 12/21/2006 JOHN COUCH Accounts Payable Check 127.00 108668 12/21/2006 COUNTY HEALTH DEPARTMENT Accounts Payable Check 741.50 108669 12/21/2006 CREDIT BUREAU Accounts Payable Check 17.41 108670 12/21/2006 CRITICAL REACH Accounts Payable Check 375.00 108671 12/21/2006 CRYSTAL SPRINGS WATER Accounts Payable Check 80.50 108672 12/21/2006 CULLIGAN INDUSTRIAL WATER SYST Accounts Payable Check 143.00 108673 12/21/2006 DARRYUS LOCK AND SAFE Accounts Payable Check 18.66 108674 12/21/2006 DAY -TIMERS, INC. Accounts Payable Check 134.61 108675 12/21/2006 DECOU LUMBER COMPANY Accounts Payable Check 1,704.78 108676 12/21/2006 DEL NORTE DISTRICT Accounts Payable Check 158.95 108677 12/21/2006 DOCUTEAM Accounts Payable Check 24.95 12/21/2006 DOGGIE WALK BAGS COMPANY Accounts Payable Check 134.69 0108678 108679 12/21/2006 EAGLE ADVERTISING AGENCY Accounts Payable Check 310.00 108680 12/21/2006 ED'S FLY MEAT, INC. Accounts Payable Check 47.00 29 Check Number 108681 108682 108683 108684 108685 108686 108687 108688 108689 108690 108691 108692 108693 108694 108695 108696 108697 108698 108699 108700 108701 108702 108703 108704 108705 108706 108707 108708 108709 108710 108711 108712 108713 108717 108718 30 City of Atascadero Disbursement Listing 12/21/2006 For the Month of December 2006 Check FENCE FACTORY ATASCADERO Date Vendor 12/21/2006 EL CAMINO CAR WASH LLC 12/21/2006 RYAN ENFANTINO 12/21/2006 EWING IRRIGATION GOLF INDUSTRL 12/21/2006 FEDERAL EXPRESS 12/21/2006 FEDERAL SIGNAL CORP. 12/21/2006 FENCE FACTORY ATASCADERO 12/21/2006 FERRELL'S AUTO REPAIR 12/21/2006 FGL ENVIRONMENTAL 12/21/2006 FIRSTLINE, LLC 12/21/2006 FLOORS OF WOOD 12/21/2006 FOOD FOR LESS 12/21/2006 KEN FORMAN 12/21/2006 WARREN FRACE 12/21/2006 GALL'S INC. 12/21/2006 GAS COMPANY 12/21/2006 GATEWAY COMPANIES, INC. 12/21/2006 GEM AUTO PARTS 12/21/2006 GEO-WEST LAND CONSULTANTS, INC 12/21/2006 GILBERT'S LANDSCAPES 12/21/2006 GOLDING CONCRETE SAWING 12/21/2006 CECILIA GOTTFRIED 12/21/2006 GRAVES CREEK ESTATES, LLC 12/21/2006 GRAY LIFT, INC. 12/21/2006 GREAT WEST EQUIPMENT, INC 12/21/2006 GRISANTI HARDWARE 12/21/2006 H.D. PETERSON 12/21/2006 HANSON AGGREGATES MID -PACIFIC 12/21/2006 ROCHELLE O. HANSON 12/21/2006 HART IMPRESSIONS PRINT & COPY 12/21/2006 JOANN B. HEAD 12/21/2006 HI STANDARD AUTOMOTIVE 12/21/2006 HOME DEPOT 12/21/2006 HSM ELECTRONIC PROTECTION SCVS 12/21/2006 I.M.P.A.C. GOVERNMENT SERVICES 12/21/2006 INGLIS PET HOTEL Description Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Amount . 15.95 296.00 925.30 148.35 46.08 52.50 656.91 353.00 257.40 3,800.00 259.08 10.94 300.00 227.29 168.50 268.02 181. 3,997.5 250.00 320.00 225.00 3,466.00 204.72 1,272.55 42.30 67.57 115.94 77.00 142.64 1,520.00 2,598.40 1,415.89 420.00 21,009 111. City of Atascadero Disbursement Listing For the Month of December 2006 Check Check tuber Date Vendor Description Amount 108719 12/21/2006 EVELYN INGRAM Accounts Payable Check 643.30 108720 12/21/2006 JAM SERVICES, INC. Accounts Payable Check 11,368.50 108721 12/21/2006 JEM DESIGN Accounts Payable Check 1,407.50 108722 12/21/2006 JIFFY LUBE/SOUND BILLING Accounts Payable Check 255.88 108723 12/21/2006 LESA JONES Accounts Payable Check 689.00 108724 12/21/2006 STEVEN KAHN Accounts Payable Check 300.00 108725 12/21/2006 KPRL 1230 AM Accounts Payable Check 367.00 108726 12/21/2006 KRONICK,MOSKOVITZ,TIEDEMANN,& Accounts Payable Check 20,143.22 108727 12/21/2006 LA CLINICA DE TOLOSA Accounts Payable Check 2,500.00 108728 12/21/2006 LAKE TRAFFIC SOLUTIONS Accounts Payable Check 677.81 108729 12/21/2006 LAW ENFORCEMENT EXECUTIVE Accounts Payable Check 50.00 108730 12/21/2006 JAMES R. LEWIS Accounts Payable Check 250.00 108731 12/21/2006 ASHLEY LIESER Accounts Payable Check 22.62 108732 12/21/2006 LIGHTHOUSE UNIFORM Accounts Payable Check 78.80 108733 12/21/2006 LINE -X OF ATASCADERO Accounts Payable Check 103.62 108734 12/21/2006 LOCATE PLUS CORPORATION Accounts Payable Check 82.00 12/21/2006 DEBRA LUTSKE Accounts Payable Check 130.74 10108735 108736 12/21/2006 LYNN PEAVEY COMPANY Accounts Payable Check 51.90 108737 12/21/2006 MADRONE LANDSCAPING Accounts Payable Check 2,701.09 108738 12/21/2006 KERRY MARGASON Accounts Payable Check 20.05 108739 12/21/2006 MARK SIMON SEWER MAINTENANCE Accounts Payable Check 19,240.00 108740 12/21/2006 WADE MCKINNEY Accounts Payable Check 600.00 108741 12/21/2006 MED -TECH RESOURCE, INC. Accounts Payable Check 344.00 108742 12/21/2006 MID -COAST GEOTECHNICAL, INC. Accounts Payable Check 740.00 108743 12/21/2006 MID -COAST MOWER & SAW Accounts Payable Check 98.96 108744 12/21/2006 KELEEN MILLER Accounts Payable Check 50.00 108745 12/21/2006 MINER'S ACE HARDWARE Accounts Payable Check 499.38 108746 12/21/2006 MISSION UNIFORM SERVICE Accounts Payable Check 77.77 108747 12/21/2006 MOBILITAT Accounts Payable Check 95.00 108748 12/21/2006 MICHAL S. MOSES Accounts Payable Check 777.60 108749 12/21/2006 LUCY MUNOZ Accounts Payable Check 28.76 108750 12/21/2006 NORTH COAST ENGINEERING INC. Accounts Payable Check 10,524.46 108751 12/21/2006 O'BANNON DIVERSIFIED Accounts Payable Check 300.00 108752 12/21/2006 OFFICE DEPOT INC. Accounts Payable Check 194.05 •108753 12/21/2006 OUTLET TOOL SUPPLY Accounts Payable Check 490.30 108755 12/21/2006 PACIFIC GAS AND ELECTRIC Accounts Payable Check 29,958.85 31 City of Atascadero Disbursement Listing 32 For the Month of December 2006 Check Check Number Date Vendor Description Amount 108756 12/21/2006 PASO ROBLES ELECTRIC, INC. Accounts Payable Check 7,539.03 108757 12/21/2006 PAVEMENT ENGINEERING, INC. Accounts Payable Check 9,225.00 108758 12/21/2006 PC MECHANICAL, INC. Accounts Payable Check 5,243.63 108759 12/21/2006 KATHLEEN A. PENCE Accounts Payable Check 3,000.00 108760 12/21/2006 PFEIFFER PARTNERS, INC. Accounts Payable Check 2,242.77 108761 12/21/2006 PFLUM'S ATASCADERO MUFFLER Accounts Payable Check 25.00 108762 12/21/2006 KEN PHILLIPS Accounts Payable Check 493.05 108763 12/21/2006 POOR RICHARD'S PRESS Accounts Payable Check 621.51 108764 12/21/2006 PROCARE JANITORIAL SUPPLY Accounts Payable Check 733.06 108765 12/21/2006 PROFORCE LAW ENFORCEMENT Accounts Payable Check 3,476.78 108766 12/21/2006 GRACE L. PUCCI Accounts Payable Check 442.50 108767 12/21/2006 R. BURKE CORPORATION Accounts Payable Check 38,893.57 108768 12/21/2006 RECOGNITION WORKS Accounts Payable Check 46.11 108769 12/21/2006 REDWOOD TOXICOLOGY LABORATORY Accounts Payable Check 60.45 108770 12/21/2006 RACHELLE RICKARD Accounts Payable Check 300.00 108771 12/21/2006 SAN LUIS OBISPO COUNTY SHERIFF Accounts Payable Check 31,696.50 108772 12/21/2006 SAN LUIS POWERHOUSE Accounts Payable Check 142.5 108773 12/21/2006 SANTA LUCIA SPORTSMEN ASSOCIAT Accounts Payable Check 1,000.0 108774 12/21/2006 SANTA MARIA TIRE, INC. Accounts Payable Check 1,162.70 108775 12/21/2006 SANDY SCOTT Accounts Payable Check 24.67 108776 12/21/2006 SIGN OUTLET Accounts Payable Check 190.46 108777 12/21/2006 SIMS FIRE PROTECTION, INC. Accounts Payable Check 3,876.90 108778 12/21/2006 SLO GREEN BUILD Accounts Payable Check 2,000.00 108779 12/21/2006 JASON SMITH Accounts Payable Check 354.00 108780 12/21/2006 SSDTTF Accounts Payable Check 306.00 108781 12/21/2006 STAPLES CREDIT PLAN Accounts Payable Check 59.23 108782 12/21/2006 STEWART'S WHEEL SHOP Accounts Payable Check 65.00 108783 12/21/2006 MICHAEL STORNETTA Accounts Payable Check 130.00 108784 12/21/2006 SUNLIGHT JANITORIAL Accounts Payable Check 1,351.50 108785 12/21/2006 TECHDEPOT Accounts Payable Check 916.99 108786 12/21/2006 TELDON PRINT MEDIA Accounts Payable Check 4,466.00 108787 12/21/2006 TEMPLETON UNIFORMS Accounts Payable Check 27.51 108788 12/21/2006 TESCO CONTROLS, INC. Accounts Payable Check 350.00 108789 12/21/2006 TOM FLYNN & SONS Accounts Payable Check 650.0 108790 12/21/2006 MARCIATORGERSON Accounts Payable Check 90. lip 32 heck Check tuber Date 108791 12/21/2006 108792 12/21/2006 108793 12/21/2006 108794 12/21/2006 City of Atascadero Disbursement Listing For the Month of December 2006 Vendor UNION ASPHALT, INC. UNITED STAFFING ASSOCIATES VERIZON WIRELESS WALLACE GROUP Description Accounts Payable Check Accounts Payable Check Accounts Payable Check Accounts Payable Check Amount 75,582.26 2,195.20 2,500.10 30,759.90 108795 12/27/2006 PITNEY BOWES PURCHASE POWER Accounts Payable Check 52.15 108796 12/29/2006 ATASCADERO FIRE EMPLOYEE ASSN. Payroll Vendor Payment 700.00 108797 12/29/2006 ATASCADERO MID MGRS ORG UNION Payroll Vendor Payment 20.00 108798 12/29/2006 ATASCADERO POLICE OFFICERS ASN Payroll Vendor Payment 205.56 108799 12/29/2006 AXA EQUITABLE Payroll Vendor Payment 403.57 108800 12/29/2006 FAMILY SUPPORT DIVISION Payroll Vendor Payment 207.69 108801 12/29/2006 CITIPAC Payroll Vendor Payment 45.00 108802 12/29/2006 HARTFORD LIFE INSURANCE Payroll Vendor Payment 11,769.72 108803 12/29/2006 ICMA RETIREMENT TRUST - 401 Payroll Vendor Payment 272.38 108804 12/29/2006 ICMA RETIREMENT TRUST - 457 Payroll Vendor Payment 866.59 108805 12/29/2006 KENNEDY CLUB FITNESS Payroll Vendor Payment 44.00 12/29/2006 NATIONWIDE RETIREMENT SOLUTION Payroll Vendor Payment 308.25 10108806 108807 12/29/2006 PERS LONG TERM CARE PROGRAM Payroll Vendor Payment 46.19 108808 12/29/2006 CALIF PUBLIC EMPLOYEES RETIREMENT SYST0 Payroll Vendor Payment 74,875.28 108809 12/29/2006 SEIU LOCAL 620 Payroll Vendor Payment 752.32 108810 12/29/2006 UNITED WAY OF SLO COUNTY Payroll Vendor Payment 31.00 • $ 1,460,853.82 33 • • 34 Atascadero City Council Staff Report — Public Works Department ITEM NUMBER: A-3 DATE: 02/13/07 Chico Road Traffic Way Drainage Improvement Project Change Order #1 (Request for approval of additional funding for drainage improvements at the intersection of Traffic Way and Chico Road. ) RECOMMENDATION: Council authorize the Administrative Services Director to approve Change Order #1 for the Chico Road — Traffic Way Drainage Improvement project to Ajay Excavating, Inc. in the amount of $3,556.53. DISCUSSION: Background: The Public Works Department has identified and proceeded with a minor project to improve drainage conditions at the intersection of Traffic Way and Chico Road. Storm water run-off from Chico Road, previously traveled across the road surface of Traffic Way, into an existing storm drain facility. The project constructed a storm drain system to convey the water flow. On October 13, 2006, seven bids were received for this project. Ajay Excavating was the responsible low -bidder and was awarded a contract in the amount of $42,817.00 for the project under Section VI — 2.0 Public Projects City Manager Award Level II. The quantity of base material and asphalt for this project was miscalculated by the Engineer, Cannon Associates, Inc. This resulted in a change order request that exceeded the total cost of the project by more than twenty percent. Analysis: Atascadero Procurement Policy requires that the City Council approve Change Orders that exceed 20%. Changes to the project after award were: an additional 35.22 tons of asphalt, an additional 60.1 tons of base material and lowering the storm drain 2 extra feet to avoid an existing water -line. The changes resulted in $12,119.93 in additional expenses. Twenty percent of the total bid amount is $8,563.40. The project has been completed by the Contractor in a satisfactory condition. 35 ITEM NUMBER: A - 3 DATE: 02/13107 Conclusion: Staff recommends that the City Council authorize the Administrative Services Department to pay Ajay Excavating, Inc. an amount in a change order beyond the 20% limit, $3,556.53, as stipulated in the City of Atascadero Procurement Policy for additional work on the Chico Road — Traffic Way Drainage Improvement project. FISCAL IMPACT: Approval of this Change Order will result in the expenditure of $ 3,556.53 in previously allocated Drainage Improvement funds. ATTACHMENTS: Change Order #1 36 • C] • • City of Atascadero CHANGE ORDER Purchase Order # 01105 Project: Chico Road - Traffic Way Drainage Improvement Project Change Order Number: 2 Change Order Date: 12/28/2006 Contractor: A -Jay Excavating Purpose of Change Order: 1) Additional base - Total tons = 90.10 2) Additional asphalt - Total tons = 53.22 We, the undersigned contractor, have given careful consideration to the changes proposed and hereby agree, if this proposal is approved, that we will provide all equipment, furnish all materials, except as may be noted above, and perform all services nece By reason of this proposed change, 0 day(s) extension of time is requested. Estimated Cost: $ 1,61 J3� ?Z> & - -/ 0 t -t1 Signed: ontractor's Authorized Agent Contractor is hereby authorized and directed to make the herein described changes from the plans and specifications, and/or to increase or decrease contract quantities and time, as described above. Approved, by: t'J," " ) City Manager C e Si n y e 37 — For Official City Use Only — Change in Contract Price Change in Contract Time Original contract price: $ 42,817.00 Original contract time: 35 days Total CO price (all CO's): $ ✓ 500.00 Change in contract time (all CO's): 0 days Contract price prior to this CO: $ ✓ 43,317.00 Contract time prior to this CO: 35 days Net increase (decrease) this CO: $ 3C'c,� Vc' 93 Net increase (decrease) this CO: 0 days Contract price w/ all approved CO's: $6-/' i1. �CS�# 936 93 Contract time w/ all approved CO's: 35 days 37 L` • • 9.1 Li A tascadero City Council Staff Report - Public Works Department ITEM NUMBER: A-4 DATE: 02/13/07 Temporary Road Closure Coromar Avenue (Paladini) (Approval would grant the two-day day -time road closure request of Coromar Avenue to allow a new home to connect to the public sewer main.) RECOMMENDATION: Council approve the temporary road closure request by Pamela Paladini to close Coromar Avenue on February 21 st — 22" d, 2007, from 9:00 a.m. — 4:30 p.m. • DISCUSSION: Ms. Paladini is in the process of building a home at 8630 Coromar Avenue. The property is located on the west side of Coromar Avenue and requires connection to the public sewer main located on the east side of the right of way. Safety concerns preclude allowing travel through the construction site. The request is for day -time closure of the roadway for two consecutive days. Traffic will be detoured as indicated on the attached map. FISCAL IMPACT: There is no fiscal impact to the City as a result of this road closure. Applicant is responsible for placement and cost of traffic control. ATTACHMENT: Road Closure Map C, 39 "Iffol. MMILI.lvv® WPTI y. .4i wl 4, • ITEM NUMBER: A - 5 DATE: 02/13/07 A tascadero City Council Staff Report - Community Development Department Historic Banker House Planned Development ZCH 2005-0109 (5715/5735 Rosario Ave. / Ravatt) (Project approval would allow a 10 -unit residential planned development on a project site that is currently developed with a single family residence that has been identified as a Colony Home.) RECOMMENDATIONS: Council: 1. Adopt on second reading, by title only, Draft Ordinance A approving Zone Change 2006-0128 based on findings to establish Planned Development Overlay Zone #28; and, 2. Adopt on second reading, by title only, Draft Ordinance B approving Zone Change 2005-0109 based on findings. DISCUSSION: The proposed project consists of a Zone Text Amendment to establish a custom Planned Development Overlay Zone (PD28) on the subject site with a corresponding Zone Map Amendment, Master Plan of Development (CUP), and vesting Tentative Tract Map that would allow a 10 -unit residential planned development. The project site is currently developed with a single-family residence that has been identified as a Colony Home. On January 23, 2007, the City Council conducted a public hearing to consider establishment of a PD -28 overlay zone and application of the overlay zone change on the subject parcel. 22 FISCAL IMPACT: . Based on findings from the Taussig Study, revenue from new residential development including property tax revenues, vehicle licensing fees, sales taxes, and other revenues are insufficient to cover the maintenance and emergency services costs of new development. Based on the revenue projections from the Taussig Study, the City has developed standard conditions of approval for new development projects that require the cost of maintenance and emergency services to be funded by the project through a combination of road assessment districts, landscape and lighting districts and community facilities districts or other approved means (Conditions CUP 17 and 18/ TTM 8 and 9). ATTACHMENTS: Attachment 1: Draft Ordinance A Attachment 2: Draft Ordinance B 42 11 • ATTACHMENT 6: Draft Ordinance A Approval of Proposed Zoning Text Change DRAFT ORDINANCE A AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, AMENDING THE ATASCADERO MUNICIPAL CODE BY APPROVING ZONE CHANGE 2006-0128 TO ESTABLISH A PLANNED DEVELOPMENT OVERLAY #28 (Banker House PD — Ravatt/Mayer/Albrecht/Mejia) The City Council hereby finds and declares as follows: WHEREAS, an application has been received from Greg Ravatt (5735 Rosario Ave, Atascadero CA 93422) & James Barton Albrecht & Natalie Mejia (4518 Hummel Dr., Santa Maria, CA 93455) Applicants and Property Owners, to consider a project consisting of a Zone Change from RMF -10 (Residential Multi -family -10) to RMF-10/PD28 (Residential Multi - Family -10 with a Planned Development Overlay 28) including an HS (Historic Site) overlay zone on lot 10 with corresponding Master Plan of Development and Vesting Tentative Tract Map located at 5715/5735 Rosario Avenue, (APN 029-252-001); and, WHEREAS, Article 28 of the Atascadero Municipal Code allows for the creation of Planned Development Overlay Zones to promote orderly and harmonious development and to enhance the opportunity to best utilize special site characteristics; and, WHEREAS, an Initial Study and Draft Mitigated Negative Declaration 2006-0033 were prepared for the project and made available for public review in accordance with the requirements of the California Environmental Quality Act (CEQA); and, WHEREAS, the Planning Commission has determined that it is in the best interest of the City to enact this amendment to the Zoning Code Text to protect the health, safety, and welfare of its citizens by applying orderly development and expanding housing opportunities within the City; 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, WHEREAS, a timely and properly noticed Public Hearing upon the subject Zone Text Change application was held by the Planning Commission of the City of Atascadero at which hearing evidence, oral and documentary, was admitted on behalf of said zoning text amendments; and, 43 WHEREAS, the Planning Commission of the City of Atascadero, at a Public Hearing held on December 19, 2006 studied and considered Zone Change 2006-0128, after first studying and considering the Draft Mitigated Negative Declaration prepared for the project, and, WHEREAS, the City Council of the City of Atascadero, at a duly noticed Public Hearing held on January 23, 2007, studied and considered Zone Change 2006-0128, after first studying and considering the Proposed Mitigated Negative Declaration prepared for the project; and, NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ATASCADERO HEREBY ORDAINS AS FOLLOWS: SECTION 1. Findings for Approval of a Zone Text Change Creating a PD -28 Planned Development Overlav District. The City Council finds as follows: Modification of development standards or processing requirements is warranted to promote orderly and harmonious development. 2. Modification of development standards or processing requirements will enhance the opportunity to best utilize special characteristics of an area and will have a beneficial effect on the area. 3. Benefits derived from the overlay zone cannot be reasonably achieved through existing development standards or processing requirements. SECTION 2. Approval. The City Council of the City of Atascadero, in a regular session assembled on February 13, 2007 resolved to approve on second reading by title only, an ordinance that would amend the City Zoning code text with the following: 9-3.673 Establishment of Planned Development Overlay Zone No. 28: (PD28) This Planned Development Overlay Zone applies to APN 029-252-001 in the Residential Multi- family zone. The maximum residential density within the planned development shall not exceed the density allowed by the underlying zoning district and provisions of the Atascadero Municipal Code. The following development standards shall be met by the entitled project within the PD -28 overlay zone: a) All site development shall require the approval of a Master Plan of Development. All construction and development shall conform to the approved Master Plan of Development, as conditioned. b) The Tentative Tract Map and any subsequent amendments for the site shall be consistent with an approved Master Plan of Development. All construction and development shall conform to the approved Master Plan of Development, as conditioned. c) No subsequent tentative parcel or tract map shall be approved unless found to be consistent with the approved Master Plan of Development. d) All utilities, including electric, telephone, and cable, within the PD and along the project frontages shall be installed and/or relocated underground. e) All mechanical equipment, including HVAC units and utility meters, shall be screened from view from adjacent streets and properties. f) Trash shall be stored in individual garages. g) This project contains a historic Colony Home. Any future modifications to the exterior of the buildings or the site setting shall follow the Secretary of the Interiors standards. SECTION 3. A summary of this ordinance, approved by the City Attorney, together with the ayes and noes, shall be published twice: at least five days prior to its final passage in the Atascadero News, a newspaper published and circulated in the City of Atascadero, and; before the expiration of fifteen (15) days after its final passage in the Atascadero News, a newspaper published and circulated in the City of Atascadero. A copy of the full text of this ordinance shall be on file in the City Clerk's office on and after the date following introduction and passage and shall be available to any interested member of the public. INTRODUCED at a regular meeting of the City Council held on , and PASSED and ADOPTED by the City Council of the City of Atascadero, State of California, on , by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: CITY OF ATASCADERO ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Patrick L. Enright, City Attorney • Dr. George Luna, Mayor 45 ATTACHMENT 7: Draft Ordinance B Approval of Proposed Zoning Map Change DRAFT ORDINANCE B AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, APPROVING ZONE CHANGE 2005-0109, AMENDING THE OFFICIAL ZONING MAP DESIGNATION OF APN 029-252-001 FROM RMF -10 (RESIDENTIAL MULTI -FAMILY —10) TO RMF -10 /PD-28/HS (RESIDENTIAL MULTI- FAMILY —10/ PLANNED DEVELOPMENT OVERLAY #28 WITH A HISTORIC SITE OVERLAY ON LOT 10) (5715/5735 Rosario Ave — Ravatt/Mayer/Albrecht/Mejia) The City Council hereby finds and declares as follows: • WHEREAS, an application has been received from Greg Ravatt & Tina Mayer (5735 Rosario Ave., Atascadero CA 93422) & James Barton Albrecht & Natalie Mejia (4518 Hummel Dr., Santa Maria, CA 93455) Applicants and Property Owners, to consider a project consisting of a Zone Change from RMF -10 (Residential Multi -Family -10) to RMF-10/PD28 (Residential Multi -Family -10 with a Planned Development Overlay 28) including an HS (Historic Site) is Overlay Zone on lot 10 with corresponding Master Plan of Development and Vesting Tentative Tract Map located at 5715/5735 Rosario Avenue, (APN 029-252-001); and, WHEREAS, the site's General Plan Designation is MDR (Medium Density Residential); and, WHEREAS, the site's current zoning district is RMF -10 (Residential Multi -Family -10); and, WHEREAS, an Initial Study and Draft Mitigated Negative Declaration 2006-0033 were prepared for the project and made available for public review in accordance with the requirements of the California Environmental Quality Act (CEQA); and, WHEREAS, the Planning Commission has determined that it is in the best interest of the City to enact this amendment to the Official Zoning Map to protect the health, safety, and welfare of its citizens by applying orderly development of the City; and, WHEREAS, the site contains a historic Colony Home of local significance; 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, 0 W. WHEREAS, a timely and properly noticed Public Hearing upon the subject Zone Change application was held by the Planning Commission of the City of Atascadero at which hearing evidence, oral and documentary, was admitted on behalf of said Zoning amendments; and, WHEREAS, the Planning Commission of the City of Atascadero, at a duly noticed Public Hearing held on December 19, 2006 studied and considered Zone Change 2005-0109, after first studying and considering the Proposed Mitigated Negative Declaration prepared for the project, and, WHEREAS, the City Council of the City of Atascadero, at a duly noticed Public Hearing held on January 23, 2007, studied and considered Zone Change 2005-0109, after first studying and considering the Proposed Mitigated Negative Declaration prepared for the project; and, NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ATASCADERO HEREBY ORDAINS AS FOLLOWS: SECTION 1. Findings for Approval of a Zone Chante to the Official Zoning Map of Atascadero Chanting the existing site zoning to RMF -10/ PD-28/HS. The City Council finds as follows: 1. Modification of development standards or processing requirements is warranted to promote orderly and harmonious development. 2. Modification of development standards or processing requirements will enhance the opportunity to best utilize special characteristics of an area and will have a beneficial effect on the area. 3. Benefits derived from the overlay zone cannot be reasonably achieved through existing development standards or processing requirements. 4. The proposed project offers certain redeeming features to compensate for the requested zone change. SECTION 2. Approval. The City Council of the City of Atascadero, in a regular session assembled on February 13, 2007, resolved to approve on second reading by title only, an ordinance that would rezone the subject site consistent with the following: i. Exhibit A: Location Map/Zone Map Amendment Diagram • 47 SECTION 3. A summary of this ordinance, approved by the City Attorney, together with the ayes and noes, shall be published twice: at least five days prior to its final passage in the Atascadero News, a newspaper published and circulated in the City of Atascadero, and; before the expiration of fifteen (15) days after its final passage in the Atascadero News, a newspaper published and circulated in the City of Atascadero. A copy of the full text of this ordinance shall be on file in the City Clerk's office on and after the date following introduction and passage and shall be available to any interested member of the public. INTRODUCED at a regular meeting of the City Council held on , and PASSED and ADOPTED by the City Council of the City of Atascadero, State of California, on , by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: CITY OF ATASCADERO ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Patrick L. Enright, City Attorney IN Dr. George Luna, Mayor • 0 • • • Exhibit A: Location Map/Zone Map Amendment Diagram P Current General plan Designation: MDR (Medium Density Residential) Current Zoning District: RMF -10 (Residential Multi -Family -10 units per acre) Proposed General Plan Designation: MDR (Medium Density Residential) Proposed Zoning District: RMF -10 (Residential Multi -Family) / Custom Planned Development Overlay / Historic Site Overlay on Lot 10 We • • 50 0 Atascadero City Council Staff Report - Public Works Department ITEM NUMBER: B - 1 DATE: 02/13/07 Road Abandonment 2006-0017 Request to Summarily Vacate an Undeveloped Portion of East Front Road (Jacobson / Patel) (Upon approval, the City would abandon a 5400 square foot undeveloped portion of East Front Road to accommodate the construction of an 80 room, four story hotel.) RECOMMENDATIONS: Planning Commission Recommends Council: 1. Adopt Draft Resolution A summarily vacating an undeveloped portion of East Front Road right-of-way based on findings and subject to conditions of approval; and, 2. Seek market rate compensation for the undeveloped portion of East Front Road Right -of -Way. REPORT -IN -BRIEF: The applicant is requesting the City abandon a 5400 square foot portion of East Front Road. The purpose of the requested right-of-way abandonment is to increase the size of the adjacent commercial property to accommodate the construction of an 80 room, four story hotel. Staff is currently working with the applicant on a conditional use permit for the hotel which is expected to go to the Planning Commission in the near future. The requested abandonment is for a portion of existing right-of-way on East Front Road which is approximately 28.5 feet by 191 feet, as shown below. This portion of East Front right-of-way, originally created during the construction of Highway 101, has never been constructed on or used. 1. Applicant/Owners: Ted Jacobson, 8055 Cristobal Ave. Atascadero, CA 93422, J. Patel, 580 Garcia Road, Atascadero, CA 93422/Ted and Iris Jacobson 8531 Florence Ave. #100, Downey, CA 90240 51 52 2. Project Address: East Front Road, 9700 EI Camino Real Lot 3, Block 11 Per 98012010763 APN: 056-081-032 3. General Plan Designation: Right -of -Way 4. Zoning District: Right -of -Way 5. Site Area: 1.96 net acres 6. Existing Use: Office complex currently under construction along EI Camino Real street frontage 7. Environmental Status: Exempt per CEQA section 15305: Minor Alterations in Land Use Limitations • • • • Is DISCUSSION: Background: This item was considered by the Planning Commission on January 16tH 2007. The Commission is recommending approval, on a 6-0 vote, of the abandonment with the condition that the City receives fair market compensation for the land. Planning Commission Minutes January 16, 2007 Owners: Ted Jacobson, 8055 Cristobal Ave., Atascadero, CA 93422 J. Patel, 580 Garcia Road, Atascadero, CA 93422 Project Title: Road Abandonment 2006-0017/PLN 2006-1163 Project Location: 9700 EI Camino Real, Atascadero, CA 93422 (San Luis Obispo County) APN 056-081-032 Project An application for a partial right-of-way abandonment on East Front Street. The applicant Description: is requesting that the City abandon a portion of its right-of-way between the existing Chevron Service Station and the Post Office. The applicant is requesting the abandonment in order to construct a portion of a hotel on the right-of-way. The abandonment size is approximately 28 feet wide by 191 feet long. General Plan Designation: R -O -W Zoning District: R -O -W Proposed Categorically Exempt Class 5 (Section 150305 pertaining to minor alterations of land use) Environmental Determination: Public Works Director / City Engineer Steve Kahn gave the staff report and answered questions of the Commission. PUBLIC COMMENT — None MOTION: By Commissioner Jack and seconded by Commissioner O'Grady to adopt Resolution 2007-0003 recommending the City Council approve Road Abandonment 2006-0017 to summarily vacate an unconstructed portion of the East Front Road right-of-way based on findings and subject to conditions of approval and adding Condition #4 being the city seek a market rate compensation for granting the abandonment. Motion passed 6:0 by a roll -call vote. 53 Analysis: The parcel owner, Jacobson, is currently in the process on completing a 15,000 square foot office building (CUP 2004-0137). A proposed hotel project is being processed as an amendment to the Jacobson CUP and was not shown on the original site plan (refer to diagrams below and next page). Staff is concerned about the shared parking requirement of both the office building and hotel due to relative size of the site. Staff is working with the hotel applicant on a parking analysis to determine that the parking will be adequate. On December 28, 2006, Jacobson applied for a zone change to add Medical Offices as a use for the site. The site is currently zoned Commercial Tourist (CT) which does not permit Medical Office use. Staff is considering recommending to the Planning Commission that Medical Offices be added as a conditional use to the CT zoning district. The primary concern with adding the medical office use is that it has twice the parking requirement of commercial offices. This will exacerbate the current parking deficit on the site. It is unclear how this change will affect the viability of the currently proposed hotel project. Staff is working with both Jacobsen and Patel to resolve the parking issue on the site. East Front Road F Office g EI Camino Real 40 Y� _ $ � s-sTom 15va sr. x6 � 'a'.�.. � Awa �,. '�e� Moroaa nnu+t ', .t4u9o°�.F-rNAtt11@ pm.' _._., ' i ""__ "'p•""' — � _1� Y��4�•"t.,. �f ��i� FrNJ �;��s. �,Ni a af� _ .w..� F F r Approved Jacobson Master Plan of Development CUP 2004-0137 54 Office Building under construction • • is • East Front Road Usl ••.N+.4 •wL� I 'J M.C(?'iSEU A-ASCADERO H07rU 9 S JI, F� . 91'79 80 Room Hotel EI Camino Real - srw'ww- 1 _ I I I ^�— � ;its. �=-•�. '.'"'.'�.�..�K —\ ,� �, �ffM. ^Dei � :"'�� -.!� � I .�....:.,� .� -.i _ ._ .: �_�L�.• � - - - � m _� rr. i' •P- r.K..c \,, ail•„ -- 3 • a , ! ; I lis S^ I. - I • —f, I .... _.. P I.n ' T --Ly , I.'0 LL'H[M•x•• n. yD Id �Dnmr.-M'u,6 r:�D•.•Slf.!„.MS'awn,DV !¢9, Hw`.1D..•-NLM 1IC•q.L p" �. •M.Nl iJPIOJC..i:Q.�..KLII 6 •OOY{ti JQ`�•1 .0 ililr % .Mr.11�.Iti GD%.'h. • M' I' Proposed Road Abandonment Proposed Master Plan of Development Amendment for Hotel 1-4 -tiI.W DDLf �I- SII M K.O. Mi MDw.• Office Building under construction FRONT ELEVATION SIDE ELFWITION REAR ELEVATION SIDE ELEVATION FAIRFIELD INN & SUITES ATASCADERO,CA u1Ti, 55 w q,D1. .encs •Iasi a u �rMM+lao t' . iy r-..� I , r sw w rel r nma.worim, mrlr •wc N j _ _ i• •ar xn _ — -�� ItN +aui5 Usl ••.N+.4 •wL� I 'J M.C(?'iSEU A-ASCADERO H07rU 9 S JI, F� . 91'79 80 Room Hotel EI Camino Real - srw'ww- 1 _ I I I ^�— � ;its. �=-•�. '.'"'.'�.�..�K —\ ,� �, �ffM. ^Dei � :"'�� -.!� � I .�....:.,� .� -.i _ ._ .: �_�L�.• � - - - � m _� rr. i' •P- r.K..c \,, ail•„ -- 3 • a , ! ; I lis S^ I. - I • —f, I .... _.. P I.n ' T --Ly , I.'0 LL'H[M•x•• n. yD Id �Dnmr.-M'u,6 r:�D•.•Slf.!„.MS'awn,DV !¢9, Hw`.1D..•-NLM 1IC•q.L p" �. •M.Nl iJPIOJC..i:Q.�..KLII 6 •OOY{ti JQ`�•1 .0 ililr % .Mr.11�.Iti GD%.'h. • M' I' Proposed Road Abandonment Proposed Master Plan of Development Amendment for Hotel 1-4 -tiI.W DDLf �I- SII M K.O. Mi MDw.• Office Building under construction FRONT ELEVATION SIDE ELFWITION REAR ELEVATION SIDE ELEVATION FAIRFIELD INN & SUITES ATASCADERO,CA u1Ti, 55 Since the hotel project has not been approved at this time, City staff recommends that the City Council conditionally vacate the undeveloped portion of West Front Road. City staff recommends that the Council require the applicant to submit and obtain a building permit concurrently with a final map recordation in order to transfer the road area to Jacobson's parcel. City staff will record the map concurrently with building permit issuance. Road Abandonment: Right-of-way abandonments are governed by the following code sections from the California Streets and Highways Code and the Atascadero Municipal Code. In order for the proposed abandonment to be approved, the project must comply with all of the provisions and requirements set forth in each code section. California Streets and Highway Code Requirements Requirements for summarily vacating a road are found in the Streets and Highways Code, Section 8331, which provides: 8331. The legislative body of a local agency may summarily vacate a street or highway if both of the following conditions exist: (a) For a period of five consecutive years, the street or highway has been impassable for vehicular travel. 0 (b) No public money was expended for maintenance on the street or highway during such period. The right-of-way under consideration was created by a subdivision map in approximately 1952. The subject portion of right-of-way has never been constructed on or used. The current alignment of East Front Road and location of sidewalks is approximately 25 feet inside the current right-of-way alignment. In addition no structures have been built in the right-of-way and the open area has been impassable for five or more years. City Requirements California Government Code Section 65402 requires that all abandonments be consistent with the legislative bodies General Plan, as follows: 'If a general plan or part thereof has been adopted ... no real property shall be ... vacated or abandoned... until the location, purpose and extent of such ... street vacation or abandonment... has been submitted to and reported upon by the planning agency as to the conformity with said general plan or part thereof. " East Front Road is identified in the General Plan Circulation and Bikeway/Trail diagrams 9 as a collector road. Collectors channel traffic from commercial areas to arterials (in this case to Santa Rosa Road and EI Camino Real.) Commercial areas typically front to 56 1 Collectors and they are two way streets with maximum acceptable traffic volumes dictated by residential concerns regarding intrusions rather than traffic capacity considerations. Currently there are no residences on East Front and current zoning does not allow for mixed-use developments. The existing road way is comprised of two travel lanes with sidewalk on the eastern side. The US 101 freeway borders East Front Road to the west, and the road currently directs traffic from the North -bound freeway off ramp located at the southern terminus of the road to Santa Rosa Road. The applicant has provided a traffic analysis which found that no new traffic improvements need to be made at build -out of the commercial corridor. The Public Works Department has evaluated East Front Road and has determined that the current location and design is sufficient to support the surrounding area at build -out. Therefore, abandonment of a portion of the right-of-way would be consistent with the General Plan street classification and would maintain sufficient traffic capacity for future build -out. Property Value The Planning Commission is recommending that the applicant pay the City the fair market value of the property. Staff has added a condition to the project requiring the applicant to pay the City the property value as determined by an appraisal. Zoning Designation Staff has determined that when a right-of-way or portion thereof is abandoned, the zoning shall become the same as the adjacent zoning designation. The requested abandonment will be for the benefit of the adjacent parcel and will become part of the Commercial Tourist zoned parcel. No new parcels will be created as a result of this abandonment. Environmental Determination The proposed right-of-way abandonment is categorically exempt per CEQA section 15305 which exempts minor alterations in land use limitations. Conclusion: The proposed abandonment meets both criteria of the State requirements since the portion of this portion of the East Front Road right-of-way has not been constructed on and has been impassable for vehicular travel for a period of five consecutive years. In addition, no public money has been expended for maintenance on the subject right-of-way during the stated time period. The abandonment is also consistent with the City's Circulation Element of the General Plan and will not reduce or interfere with necessary improvements to the road at build- out, future bikeways, or planned trails. 57 FISCAL IMPACT: is The applicant shall pay all fees and expenses to abandon the right-of-way. No significant fiscal impact is anticipated on the City with this road abandonment. ALTERNATIVES: 1. The Council may approve the project, subject to additional or revised project conditions. The Council's motion to approve needs to include any new or revised project conditions. 2. The Council may deny the project if it is found to be inconsistent with the General Plan or any of the other required findings. The Council's motion to deny must include a finding basis for denial. 3. The Council may continue the hearing and refer the item back to staff for additional information or analysis. Direction should be given to staff and the applicant on required information. ATTACHMENTS: Attachment 1 -- Location Map (General Plan & Zoning) , Attachment 2 -- Draft Resolution A 0 • Attachment 1: Location and Zoning Map RAB 2006-0017 • • EXISTING R/W BEYOND PROJECT P/L �ROPOSED AREA OF R/W ABANDONED ///,,-P 05230 SQUARE FEET, 0.12 AC) PER FUTURE AGREEMENT WITH CITY ,, t (1 -1 "r r --w. r--) -IF4 fes: Lx PROPOSED ATASCADERO HOTEL 4 STORY FF = 921.70 SOLD R/W PRIOR TO / AGREEMENT WITH CITY -NEW PROPERTY LINE NEW R/W AT BACK OF SIDEWALK PER AGREEMENT WITH CITY 59 Attachment 2: Draft Resolution RAB 2006-0017 his document is recorded for the benefit of the ity of Atascadero and is exempt from :cording fees pursuant to Government Code ections 6103 and 27383. ECORDING REQUESTED BY: ity of Atascadero (RAB 2006-0017) HEN RECORDED MAIL TO: ty of Atascadero )mmunity Development Director 107 EI Camino Real ascadero, CA 93422 Space above reserved for use of County Recorder DRAFT RESOLUTION A A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO SUMMARILY VACATING AN UNIMPROVED PORTION OF EAST FRONT ROAD PURSUANT TO PART 3, CHAPTER 4, ARTICLE 2, SECTION 8335 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE (ROAD ABANDONMENT #2006-0017) WHEREAS, Ted and Iris Jacobson 8055 Cristobal Ave., Atascadero, CA 93422 (Owners), J.P. Patel, 580 Garcia Road, Atascadero, CA 93422 (Applicant) applied to abandon an approximate 0.12 acre portion of East Front Street, Portion of Lot 3 created by C.C.O.R. 98- 010763, City of Atascadero, County of San Luis Obispo, State of California and filed for record on October 21, 1914 in Book 3AC at Page 8 of Maps; and WHEREAS, the current General Plan Designation and Zoning Designation is right-of- way; and, WHEREAS, the project is in conformance with the Circulation Element of the General Plan and all other applicable General Plan policies; and, WHEREAS, the alley, as shown on the attached Exhibit A, has never been improved and has been impassable for vehicular travel for a period of five consecutive years and no public money has been expended for maintenance on the street during such period; and, WHEREAS, the abandoned portion of the road will become a part of the adjacent property currently zoned Commercial Tourist; and, • • 11 WHEREAS, the Planning Commission held a duly noticed public hearing to consider the proposed Road Abandonment on January 16, 2007 at 7:00 p.m. and considered testimony, reports from staff, the applicants, and the public; and WHEREAS, the Planning Commission, on a 6:0 vote, recommends that the City Council summarily vacate the alley as depicted in Exhibit A and B below, and require applicant to pay for the undeveloped portion of East Front Road right-of-way. NOW, THEREFORE, the City Council takes the following actions: SECTION 1. Environmental Review. The City Council finds that the proposed right-of- way abandonment is exempt from CEQA review per section 15305: Minor Alterations in Land Use Limitations. SECTION 2. Findings of Approval. The City Council finds as follows: 1. The proposed project is consistent with the General Plan. 2. The portion of right-of-way is summarily vacated pursuant to Part 3, Chapter 4, Article 2, Section 8335 of the California Streets and Highways Code. 3. The alley summarily vacated is as shown on Exhibits A and B, attached hereto and incorporated herein. 4. Theortion of East Front Road right-of-way has been impassable for vehicular travel P for a period of five consecutive years and no public money has been expended for maintenance on the right-of-way during such period. 5. Recordation of this Resolution of Vacation conditionally releases the City of Atascadero's interests in the Alley as shown on Exhibits A and B, attached hereto and incorporated herein. 6. The Owner/Applicants shall pay for the undeveloped portion of East Front Road right-of-way based on a fair market real estate appraisal obtained by the City. BE IT FURTHER RESOLVED, that the City Council approves Road Abandonment 2006-0017 as shown on Exhibits A and B and subject to Conditions of Approval contained in Exhibit C. • 61 On motion by Council Member and seconded by Council Member , the foregoing resolution is hereby adopted in its entirety by the following roll call vote: AYES: NOES: ABSENT: ADOPTED: ATTEST: Marcia McClure Torgerson, C.M.C. City Clerk APPROVED AS TO FORM: Patrick L. Enright City Attorney 62 CITY OF ATASCADERO, CA Dr. George Luna Mayor • • • • • Exhibit A: Alley Abandonment Map RAB 2006-0017 77 7 7.17 ------- T . .._ EAST FRONT STREET EL CAMINO REAL 63 • Exhibit C: Conditions of Approval RAS 2006-0017 ENGINEERING CONDITIONS: 1. Prior to City Council approval of the road abandonment, the applicant shall have the application reviewed by all applicable public and private utility companies (cable, telephone, gas, electric, and Atascadero Mutual Water Company). The applicant shall obtain a letter from each utility company which indicates their review of the application. The letter shall identify any new easements which may be required by the utility company. A copy of the letter shall be submitted to the City. New easements shall be recorded prior to or concurrently with the road abandonment. 2. The Applicant/Owners shall pay all plan check and right-of-way abandonment costs including but not limited to a fair market appraisal, any real estate transaction fees and the cost of the land. 3. The applicant shall submit a Final Parcel Map, per the requirements of the Subdivision Map Act and California Streets and Highway Code, merging the abandoned Right -of - Way and the existing parcel. The Final Parcel Map shall be submitted after City Council approval of the conditional Right -of -Way Abandonment. The Final Parcel Map shall be in substantial conformance with the City Council's action and shall be approved by the City Council prior to recordation. 4. The applicant shall submit a building permit application and obtain a building permit for an hotel prior to Final Map recordation. The Final Map shall be recorded concurrently with building permit issuance. 5. The applicant shall pay the fair market value for the abandoned right-of-way as determined by a property appraisal. 65 Ll 7 0 • Atascadero City Council Staff Report — City Manager's Office ITEM NUMBER: C - 1 DATE: 02/13/07 Broadcasting of City Council Meetings (Request for Council direction concerning the broadcasting of City Council meetings.) RECOMMENDATIONS: Council direct staff to: 1. Begin negotiations with Charter Communications regarding the implementation of a PEG fee with the proceeds to be used for installation of cameras and related recording and transmission equipment in the City Council Chamber; and, 2. Design an appropriate in-house audio and video recording system; and, is 3. Implement live broadcasts of City Council meetings on Charter Cable channel 20, live web streaming over the Internet and a video -on -demand archive system; and, 4. Solicit bids from broadcasting and web streaming companies; and, 5. Enter into agreement with AGP Video of Morro Bay to broadcast Council meetings until the permanent in-house system and vendor are established. DISCUSSION: Background: At the January 9, 2007 City Council meeting, the Council directed staff to return with information regarding the process for collecting Public Education and Government (PEG) fees, and an explanation of what the fees may be used for. The current franchise agreement with Charter Communications allows for the collection of such fees, however the City currently does not collect them. Additionally, the Council asked staff to analyze alternatives for broadcasting City Council and Commission meetings in an effort to increase opportunities for public awareness and involvement. This discussion was slated for the strategic planning session; however, staff is prepared to review these items this evening. There are several options for broadcasting meetings both recorded and live. This report analyzes these options. PEG Fees 67 ITEM NUMBER: C - 1 DATE: 02/13/07 A PEG Fee is basically a fee charged to cable customers to provide a revenue source for public, governmental and educational uses. These uses include the broadcasting of public meetings, educational and informative programs provided by local schools and colleges, and programs created by members of the public. The fee is collected through cable bills and may be up to 1% of the cable company's cable television -based revenues. Therefore, cable subscribers would pay up to an additional 1 % of their cable - related bill each month. Approximately 47% of Atascadero households subscribe to cable. The fee would not be charged on cable modem or phone services. In Atascadero, revenue from the fee could equate to approximately $41,020 annually. If PEG fees are collected, they may be used only for capital costs. Agencies who have been collecting PEG fees for several years are able to use their PEG fees for capital and operational costs but in recent years Federal Communications Commission regulations have changed to allow fees to be used only for capital expenses and related costs. Such expenses would be limited to cameras, recording equipment, cabling, computers, etc. The City of Atascadero does not currently collect PEG fees from cable customers. If the Council chooses to collect fees, a certain process must be followed. The first step in the process is to determine what equipment the City is interested in purchasing. This is relevant because the fee can only be charged up to the point that it is covering the costs of necessary equipment. The next step is to meet with representatives of Charter Cable to discuss the purpose of the PEG fee and how the funding would be used. While the City's existing franchise agreement allows for the collection of the PEG fees, it states that the fee must be negotiated with the cable services provider. Negotiating how the fee will be used and the amount of the fee to be collected could take approximately 30-60 days. Once negotiations have concluded and an amount to be collected is agreed upon, the public process to consider charging a PEG fee may begin. To enact a PEG fee, a hearing would need to be held before the City Council. The hearing would require a 14 - day notice. A majority vote would be sufficient to implement PEG fees. If PEG fees were approved by the City Council, it would take approximately 70 days for the fee to be collected and appear on cable bills. Impacts of AB 2987: State Cable Franchising Last year the legislature approved and the Governor signed AB 2987, the Digital Infrastructure and Video Competition Act of 2006. The act creates a statewide franchise for cable service and eliminates local franchises as they expire. The City's franchise agreement with Charter Communications will not expire until 2016. Cities may choose to adopt the State franchise and abolish their own local franchise after January 1, 2008, however this is not recommended as the City would be ceding local control. It appears that the provisions of AB 2987 will not impact the City for some time and that the provisions in the existing franchise agreement will govern our PEG fees, franchise issues and broadcasting processes. ; ITEM NUMBER: C - 1 DATE: 02113/07 0 Broadcast Options There are several methods for broadcasting meetings ranging from radio transmissions to live video broadcasting over the cable television system and World Wide Web. At the least, an audio signal can broadcast over the airwaves. The most evolved technology allows for an interactive video and audio stream of meetings including a searchable agenda. The options range in cost and method of delivery. The following listing provides an analysis of each of these options. • Radio: Atascadero City Council meetings are currently broadcast over KPRL AM 1230. The meeting can be heard over an AM radio by anyone who can receive the signal. Meetings are broadcast from 7:00 p.m. to 11:00 p.m. If a meeting goes past 11:00 p.m., the signal is cut off and other programming resumes regardless of how important a meeting topic may be. The initial setup cost at City Hall for the radio signal was approximately $1,500. The cost for broadcasting these meetings is $295 per month, for an annual cost of approximately $3,540. • Audio Archive: Audio archiving or "podcasting" refers to making prerecorded digital audio files available for download via the Internet. The audio signal from the meeting is recorded in digital format and transferred after the meeting to the City's website. Residents who sign up for the podcasting service are alerted by email every time a new audio file of a meeting is available on the website. Residents interested in the meeting may download it to their computer, ipod, or other MP3 player. One of the benefits of podcasting is that it allows people to select only the portions of the meeting they want to hear and they can listen to it at their convenience. Podcasting is also a very inexpensive technology. The City currently offers podcasting on our website and the cost of implementation was negligible (the image below shows a picture of the City's audio archive web page). Some limitations of podcasting are that it is not live and it does not include a video component. Additionally, you must have a connection to the Internet and have a computer or other MP3 device to listen to the meetings. tFie Fbt v— FawxQes Toils Fisip Bark �� F /¢ f, Seerdi �` Favorees 4e, A .: dl htto:Ilwww.atmadwo.amrndex.Ov?q*io�w-Dcdcasts CMd - -q loakf«Mep * Boolanerk. r. seed m. Search... 1 69 CITY (If Hnms Audio Archive of Meetings SYter:lap To increase opportunity for public participation and information, public meetings of the City Council and Popular Pages Commissions are digitally recorded and posted to the City's website. For audio of meetings not posted below, Personal Paaifon contact the City Clerks office at 805-470-34 00 to request acopy of the audio tape. Contact us Special Everds To receive an email whenever new audio files are available click here spore Lewis,; t een —Al Meetings Meeting Typed ...... 9 �.. Clickon the meeting name to see the audio files for that meeting. Beck Next vlswing 1.9 of 9 MsretingType MeeUng Name Meeting Date -U Parks and Hoc. Heenlar Session Jan s8th. 2007 Search... 1 69 ITEM NUMBER: C - 1 DATE: 02/13/07 • Streaming Audio: The next step "up" from podcasting would be to transfer the digital audio signal live over the Internet as opposed to waiting for a recording to be posted the next day. This would allow residents to listen to the meeting over their computer as it was occurring. At the conclusion of the meeting, the audio stream would be converted to a digital file and placed in the City's audio archive. Staff has the technology and knowledge to provide streaming audio services in-house, however, with our current connection to the Internet (modified DSL line) only 10 people could simultaneously listen to the meeting at any given time. It is anticipated that more than 10 people may listen to Council meetings over the Internet and therefore an Internet line with greater bandwidth would be required. The City currently pays approximately $1,000 per year for our Internet connection. The next logical upgrade for increased capacity would be to a T-1 line which would cost approximately $9,600 per year. The screenshot below shows what a streaming audio website would look like: Explorer3 City of Claremont - - Live Audia of City C000ril MWIng - Microsoft Internet Elle Edt Ylee' FE—It. gods deremi.. t. } i''-se.ai 'F,wrmc 'SiJ `' `" i,�a f •' rk r1 kN fl d o Islas tltvlW.dmm.IS _. _ _.: ,: .... .. ...... .. C;tsr .._ _ __ . . . r Go GJa bladed " 10 Ui 4, DF CLAREMC R .• P-1 Chataz - M•etlnaz B Event, Minu!•z & Aa•nd•z Live Audio of City Council Meetings You can tune n to live'stresmang audio' of the current City Council meeung. (You need Windows Meda Player to use the feature.) IMPORTANT NOTES: This Ink will ordy work while a council meeting is in progress. The council meets on the 2nd and 4th Tuesday of the month beginning at 6:30 p an ]f you have a personal Crestal] on your computer, you must enable Part 1755 to hear this webcast. LION HERE Click here to listen. City Manager's weekly update P0STEDccsax •CRIDA! • i ht—t o Traditional Broadcasting: This type of broadcasting is most familiar to people and involves sending a video and audio signal through the cable company's system and out to the televisions of cable subscribers. The broadcast can either be transmitted through the system live or it can be recorded and shown following the meeting. 70 • ITEM NUMBER: C - 1 DATE: 02/13/07 Cable Channels 20 and 21 are set aside for government broadcasting. With cooperation from the cable company, channel 20 would be set up specifically as an Atascadero City government channel. The first step in video broadcasting is to either rent camera equipment for every meeting or install an "in-house" system in the Council chamber. Simple broadcasts can be done with one camera, however up to five cameras can be used to create a more quality broadcast. The January 23, 2007 Council meeting was recorded with five cameras. The City currently owns three VCRs, a computer and the transmission device necessary to broadcast to cable television, although no camera equipment is included in the inventory. Once the equipment is acquired, the next step in broadcasting is to hire an audio/video operator to record the meetings. Once the meeting is recorded, it is transferred onto a digital video disc (DVD) and submitted to the cable company for broadcasting. Meetings may be run live, however, this requires the installation of additional transmission equipment not currently at City Hall. At the City's request, this equipment can be installed by Charter at no additional cost. An additional step in broadcasting is to coordinate with Charter Communications. This includes monitoring the transmission of the televised signal to the cable company, submitting other related material and managing the content of the cable channel. The cost for setting up an in-house camera system in the City Council Chamber ranges from $30,000-$40,000 depending on the camera resolution, number of camera inputs and graphic displays. The necessary equipment would be comprised of up to five cameras, recording and editing equipment (DVD's, hard drives, computers), cabling and transmission devices. PEG fee revenue could be used to purchase such equipment. AGP Video of Morro Bay appears to be the only qualified private vendor in the county with the expertise to film City Council meetings. Their costs for broadcasting meetings are as follows: o A base cost of $750 is charged per meeting. This covers setup and 3.5 hours of broadcasting. If the meeting runs over this time period, additional time may be purchased at $120 per hour. This additional charge is billed in 15 minute increments. Assuming 23 televised City Council meetings per year (21 regular and two special meetings at four hours a piece) it would cost approximately $18,630. o If an in-house camera system is installed, the base rate changes to $460 for the first two hours and $110 per hour thereafter. Using the same assumptions above, the annual cost for televised City Council meetings under this scenario would be approximately $15,640. o The cost for Commission meetings would be the same as above, however the 0 base cost could be reduced for shorter meetings. 71 ITEM NUMBER: C - 1 DATE: 02/13/07 o AGP Video charges a $500 monthly fee for channel management and maintenance of the government television channel, for a total cost of $6,000 per year. • Webcasting and Video Archiving: "Webcasting" means broadcasting an audio and video stream live over the Internet. The Council meeting on January 23, 2007, was webcasted. This method allows residents to see and hear the Council meeting live through their computer at home. Webcasts typically include an interactive agenda that allows users to read staff reports while they are watching a video broadcast of the meeting. To watch a webcast, users would need to have a computer with a broadband connection to the Internet (i.e. a DSL line or a cable modem). Webcasting is more complex than the other methods previously discussed because it involves the use of additional editing equipment, video encoders, computers and access to an Internet connection with a large amount of bandwidth. Video archiving is similar to audio archives in that previous meetings may be downloaded and watched at any time after the meeting has occurred. Webcasting and archiving services are estimated to cost approximately $10,000-$25,000 annually depending on the quality and level of service selected. The images below show webcasting and video archiving: Webcasting: Notice the interactive agenda with staff reports on the right side of the screen and the video window (black square) on the left side of the screen. Ele €oa Yie,r Fsvasaes Iea: Li* ��yy i Ll 'S.i • ITEM NUMBER: C - 1 DATE: 02/13/07 Video Archiving: Notice the search function that allows users to pull up previous meetings or specific agenda items. Meetings are seen in the video window on the right. The pane on the left can be used to show the staff report or a transcript of the meeting (additional cost). There are a variety of ways to reach out to the public. Simply put, some are more technical than others and some are more costly than others. Timeline for Implementation If the Council directs staff to move forward with the implementation of PEG fees, it will take approximately 60 days to conclude negotiations with the cable company. At the conclusion of negotiations, a public hearing before the City Council may be scheduled to consider charging the fee. If the fee is approved, it will take approximately 70 days to show up on customer's cable bills. At the earliest, the City is approximately six months away from realizing PEG fee revenues. Staff will need approximately 60 days to complete the vendor selection for broadcasting council meetings and managing webcasts and the video archive, as required by the City's purchasing policy. Once a vendor is selected, it could take another 30-60 days to get the vendor operating. Once staff has determined the exact video and recording equipment needed for the Council Chambers, it will take up to 120 days to order and install the equipment. In the meantime, a temporary arrangement could be negotiated with the selected vendor. 73 ITEM NUMBER: C - 1 DATE: 02/13/07 Short-term Consideration AGP Video has stated that they are available to begin broadcasting and webcasting City Council meetings immediately, and can continue to do so during the City's process of negotiating PEG fees, locating vendors, and ordering equipment FISCAL IMPACT: The cost for broadcasting Council meetings for the remainder of the fiscal year is estimated at approximately $8,100. In addition, channel management and maintenance of the government television channel would add approximately $2,250. Funding is available in the Public Outreach budget of the General Fund. The cost for implementing the staff recommendation will range from approximately $34,000-49,000 annually depending on the desired options. Funding for this cost would need to be set aside in the General Fund as part of the 2007-09 budget process. In addition to this annual cost, $30,000-$40,000 will be required to set up the in-house camera system, which can be covered by PEG fee revenue. ALTERNATIVES: 1. Direct staff to obtain additional information. 2. Do nothing. 3. Broadcast on cable television only. 4. Provide webcasting and video archive only. 74 • • 0 A tascadero City Council Staff Report — City Manager's Office ITEM NUMBER: C - 2 DATE: 02/13/07 City Council Strategic Planning (The City Council will discuss, and receive public input, on potential issues to be considered at their Strategic Planning Workshop.) RECOMMENDATIONS: Council: 1. Invite community input regarding potential February 23-24, 2007 workshop (there will workshop); and, 2. Add potential strategic planning issues from additional opportunities at the workshop); and, 3. Review meeting logistics. DISCUSSION: strategic planning issues for the be additional opportunities at the Council Members (there will be Background: The City utilizes a Strategic Planning approach to focus resources, establish priorities, direct the City's work product and create a two year budget. The Strategic Plan is developed through a series of Council, Commission, community and staff meetings. The City Council Strategic Planning Workshop which is central to this process, will be held Friday and Saturday February 23 and 24, 2007 in the City Council Chambers. The workshop is scheduled Friday from 5:30 pm to 9:00 pm and Saturday from 8:30 am to 4:00 pm. Breaks will be called by the Mayor, as needed. A light lunch will be provided around noon on Saturday to those in attendance. The Strategic Planning workshop provides a unique opportunity for the City Council to discuss its working relationship and a variety of complex issues facing the community. It is a careful balance of public input, team building and problem solving in a compact time period. The workshop focuses on Council discussion so that the community and staff can hear and understand the preferences and directions of Council. The Mayor 75 ITEM NUMBER: C - 2 DATE: 02/13/07 will facilitate community participation. There has been some discussion of modified public comment rules to facilitate the discussion and tight time frame such as reducing the speaker time to three minutes. There will be a variety of opportunities for the public to participate in the workshop. City Council The Council has been developing a list of issues to review at the workshop. The list includes: 1. Develop Council Strategic Initiatives 2. Code Enforcement 3. Televising Council meetings, public outreach, public information and Sunshine Ordinances 4. Brainstorming Council's direction relative to commercial development attraction 5. Council Norms 6. Tourism Parks and Recreation Commission The Parks and Recreation Commission voted unanimously to recommend seven (7) issues to the Council for consideration during strategic planning. The Commission recommends that these issues be addressed in the manner most appropriate to the Council's process. The issues identified are as follows: 1) Address the deferred maintenance at parks and recreation facilities. Public input and Commission discussion regarding long deferred maintenance at The Charles Paddock Zoo, Lake Park and other facilities was determined the highest priority issue. 2) Develop Recreation Center Operations Plan. The Council will address this item on an agenda early this year. 3) Begin to implement the Charles Paddock Zoo Master Plan, and prepare for accreditation. The Zoo Master Plan needs to have the "first phase" architectural design plans developed (approx. $23,000). A capital campaign can be started with the Zoological Society. Investment in the Zoo is seen having many long term benefits, including boosting tourism. 4) Complete Stadium Park Master Plan. This project is in progress and should be completed by Spring. There will be items the planning committee and Parks Commission will recommend for inclusion in the next budget. 5) Review Arts and Public Places Policy. Recent application of the policy for the Veteran's Memorial Project has revealed this policy should be reviewed and updated. The Commission is willing to accept this task this year. 6) Develop a Master Plan for Paloma Creek Park. Under State of California ownership, park planning and making park improvements were difficult. Now that 76 ITEM NUMBER: C-2 DATE: 02/13/07 the park is City owned, a park master plan is needed to accommodate the changing uses and identify park improvements. (Approximate cost $50,000) 7) Explore the City/School relationship to ensure maximized use of the agency facilities and resources. This item could be referred to staff and the City/Schools committee. Planning Commission The Planning Commission identified seven issues for consideration through the Council's strategic planning process. Those issues are: 1. Review policy/code regarding fence height/location and variances 2. Condominium Conversion Policy (Prime candidates for conversion may be older apartment unit, this could be an incentive for reinvestment) 3. Housing needs study 4. Communications between Commissions and City Council 5. Appearance review for multifamily (especially as they convert to condominiums) 6. Construction changes without Planning Commission approval and after the fact approvals (may need a penalty or bigger incentive for things to be approved before action is taken) 7. Insure format encourages public participation 0 Summary Tonight's meeting provides another opportunity for the community to raise or comment on issues that may be discussed by the City Council at the Strategic Planning Workshop. There are likely more issues of interest than time available and the Council will have an opportunity at the workshop to prioritize the issues for discussion. The list of issues provides staff with some direction to prepare supporting information and materials to assist the City Council discussion. 77 • ITEM NUMBER: C - 3 DATE: 02/13/06 Atascadero City Council Staff Report - Administrative Services Department Fiscal Year 2005-2006 Audit RECOMMENDATION: Council review and accept the financial audit for the period ended June 30, 2006. REPORT -IN -BRIEF: The Audit firm of Glenn, Burdette, Phillips and Bryson performed a full audit of the • financial statements and found that the City presented fairly and accurately the City's financial position, and further that the reporting was in conformity with generally accepted accounting standards. DISCUSSION: The City was well positioned at the end of fiscal year 2005-2006. Amidst the ups and downs of today's economy, the City was able to maintain a positive financial outlook. Fueled by higher than expected supplemental property tax rolls, state adjustments and paybacks, continued strong development activity, and vacancies which resulted in salary savings; results for the year compare very favorably with budget estimates. Overall the General Fund revenues exceeded expenses by $1.1 million. Base property tax revenues showed a positive variance from budget of about 4%, or $137,000. The City benefited from increased supplemental assessments, which came in $300,000 better than projected. Supplemental assessments are made by the County throughout the year and are in addition to the base property tax. They are triggered by new construction and also by property sales, which necessitate a re -assessment of property value to current market value. A portion of the vehicle license fee (VLF) revenues was "swapped" out for the equivalent amount of property tax revenues. The State's original estimate of the City's portion of this revenue was $1.6 million. When the State fine-tuned their calculations, it 79 ITEM NUMBER: C - 3 DATE: 02/13/06 was determined that the City's portion of revenue was actually $1.7 million. Therefore, in this fiscal year, the City received the one-time catch up amounts of approximately $100,000 for fiscal year 2004-2005, and $100,000 for fiscal year 2005-2006. Now that the City is caught up, no further adjustments to this revenue should be expected. It is anticipated that the property tax revenue paid in lieu of VLF will be based on the $1.7 million for the coming years. Motor Vehicle in Lieu and related payment revenues also exceeded budget estimates. At the time the budget was prepared, the State Governor had agreed to pay one-half of the "VLF Gap Loan" back to cities. Fortunately, since that time, the Governor agreed to pay the entire amount, resulting in $230,000 more in one-time revenues than projected. The loan has now been paid in full and the City will not be receiving this $465,000 revenue in the future. Sales tax revenue came in about $240,000 higher than estimated. The high cost of fuel played a big part in this. Fuel costs are dynamic, so this trend is not expected to continue. Additionally, there were timing differences of payments that occurred at the State level. Those timing differences equated to an adjustment of approximately $70,000 this fiscal year. The underlying sales base showed only a slight increase. Over 75% of the favorable expenditure variance was due to staffing savings. This was largely due to position vacancies in Police, Community Services, and Public Works. These vacancies have been, or soon will be, filled. Therefore, the savings realized were one-time savings and cannot be expected to continue into the future. Other variances stemmed from timing differences in special purchases and projects. There were no significant findings to reporting the City's other funds, though slight variances to budget did occur due to timing differences. FISCAL IMPACT: None. ATTACHMENTS: Fiscal Year 2005-2006 Audited Financial Statement (available for viewing at the City Clerk's Office). 0 • 1, • ITEM NUMBER: C - 4 DATE: 02/13/06 ��V _�Ipl❑�r��oi 1��/ Atascadero City Council Staff Report — Administrative Services Department Financial Reserve Policy (This report has been complied, in preparation for the upcoming budget cycle, to assist in evaluating the City's fiscal position and the level of appropriate reserves.) RECOMMENDATION: Council review and accept the financial reserve policy. REPORT -IN -BRIEF: The mark of fiscal stability is a city's undesignated General Fund balance, or reserve. In the early 1990's, the City had a negative reserve. Since that time, Atascadero has improved its financial condition. In preparation for the upcoming budget cycle, this information has been compiled to assist in evaluating the City's fiscal position and the level of appropriate reserves. DISCUSSION: City finances are comprised of various funds, which for legal purposes have to be separated. For example, sewer charges are to be spent on maintaining and operating the wastewater system and may not be used to hire police officers or firefighters. One fund over which the Council may exercise considerable discretion is the General Fund. General taxes and receipts are deposited into this fund and the Council decides on how to spend these general revenues, whether it's for police, fire, parks maintenance, recreation services or other public services. (Of course restricted revenues such as grants or fees for services are also deposited into the General Fund and the City must ITEM NUMBER: C - 4 DATE: 02/13/06 ensure that these receipts are spent appropriately.) The City must cautiously guard its General Fund to ensure that there are always adequate resources to provide critical services to the public. An indication of fiscal stability is a city's undesignated and officially "reserved" General Fund balance. In the early 1990's, the City of Atascadero had a negative General Fund balance, forcing layoffs and service reductions in order to weather the storm. In fiscal year 1995, the collapse of the Orange County Investment Pool hit the City and the General Fund reserves fell to an all time low of $ - 790,360 (or -11.1 % of General Fund expenditures). The City's audit carried a going concern note and the General Fund stayed afloat by borrowing from the Wastewater Fund and issuing tax revenue anticipation notes. By the late 1990's, the economy was starting to turn around, and wounds to the organization from the fiscal rollercoaster were just starting to scab over. In order to avoid this devastating turn of events in the future, Council adopted a fiscally conservative reserve policy and began to aggressively go about building reserves. The City first adopted a Financial Strategy in 1998 and the results of having a plan have become clear. The City has focused its resources and its financial condition has improved dramatically. The overall strategy has consistently been to maintain a conservative outlook by Financial Strategy - i�i� Kk Years Expenses Revenues putting aside reserves in good times and then using those reserves during down periods to achieve stable operations. By employing this cautious strategy, the City can avoid the undesirable peaks and valleys in services due to revenue fluctuations and can better maintain its long-term financial viability. As of June 30, 2006, there is $7.2 million in the undesignated and officially "reserved" General Fund balance. This represents 44% of expenditures. When we add amounts reserved for loans to other funds, this figure goes up to $10.2 million or 63% of general fund expenditures. As the City's financial condition has improved, the focus has shifted from accumulating reserves to managing reserves. When the City was in financial difficulties, we knew that the reserves on hand were not adequate to meet the needs of the City, but in recent years, it has been necessary to ask ourselves whether we are accumulating too much in reserves. After all, a City's purpose is not to accumulate money, but instead to provide services for its constituents. Each dollar in reserves is money that could have been spent on fixing roads, storm drains, parks or other infrastructure. • 0 ITEM NUMBER: C - 4 DATE: 02/13/06 The Adoption of Reserve Policies in California Cities by Anita Lawrence asked "What is the amount of fiscally prudent reserve? How much would be enough to cover certain events and develop a sense of security for the organization and the community? At what level would the constituency begin to question it as too much? What is the risk tolerance of the organization and the community? What criteria should be used to make that decision?" There is no easy answer to these questions. Anita's research showed that "...if you asked 100 city finance professionals these questions, very few would provide the same mix of answers. The elements that are right for one city are entirely wrong for another." The real question is: What is the right amount of reserves for the City of Atascadero, both at this point in time and for the foreseeable future? In order to formulate a reserve policy, it is important to answer the following: 1. How broad is the City's revenue base? 2. How stable is the tax base? 3. How vulnerable is our revenue base to State or Federal political action? 4. What are the cash flow needs of the City? 5. How susceptible is the City to natural disasters or emergencies? 6. What is the City's policy on equipment and infrastructure replacement? 7. How important is it to our organization and constituents that we maintain consistent service levels? 0 8. How important is it that the City has the ability to capitalize quickly on opportunities that arise? 9. What future commitments has the City made that are not currently funded? Although it is certainly not the main purpose, reserves also generate interest income. Investment earnings is a General Fund revenue that is spent on ongoing operating items such as police and fire. As we reduce reserves, we consequently reduce our general fund income and this should be considered as part of the equation when determining the correct reserve level for the City of Atascadero. Measurement #1 — General Fund Revenue One measurement to quantify an appropriate level of reserves concerns how broad a range of General Fund revenues the City receives and what the future holds for such revenue. Some cities have a very broad range of General Fund revenues not associated with fees. For example, Pismo Beach and Morro Bay enjoy a large amount of transient occupancy taxes (hotel tax). Other cities, such as Grover Beach and San Luis Obispo, have a utility user tax. This is a percentage of the cost of all utilities used by citizens of those cities, including gas, electric, phone, cable TV, and even the city's own utilities of water, sewer, and garbage. Yet other cities have a gross receipts business license tax that provides a large General Fund revenue. 40% 20% 0% ITEM NUMBER: C-4 DATE: 02/13/06 Comparison of General Fund Revenues Atascadero Arroyo Grover Morro Bay Paso Pismo San Luis Grande Beach Robles Beach Obispo ■ Sales Tax ■ Property Tax M Franchise Fees ® TOT ■ Utility Users Tax ❑ Motor Vehicle In Lieu i Other Cities with fewer sources of General Fund Revenue will require a greater amount in reserves in order to successfully weather a downturn in one revenue area. This is true for the City of Atascadero. Transient occupancy tax netted only $480,000 in fiscal year 2005-2006, which is only 5% of what the City receives from property and sales taxes.* The City's modest business license tax resulted in only $162,470 in 2005-2006. Again, this is about 2% of what property and sales tax will produce.* Now that a portion of VLF is tied to property tax, property tax is an even larger piece of the pie, while VLF is smaller, exacerbating the issue. In short, the City has a very narrow base of General Fund tax revenue. Well over half of the General Fund depends on property and sales taxes alone. One reserve methodology dictates that that reserve levels should be tied to the broadness of General Fund tax revenues sources. The greater number of revenue sources require fewer layers of reserves. Conversely, the fewer number of revenue sources require higher levels of reserves. As Atascadero's property tax and sales tax revenues comprise $11.7 million of the $17.3 million in General Fund taxes, the City is defined as having a narrow base of revenue -just two significant categories. * Includes property tax in lieu of vehicle license fees. • • • • ITEM NUMBER: C - 4 DATE: 02/13/06 Measurement #2 — Tax Base Stability As discussed above, General Fund revenues for fiscal year 2005-2006 were $17.3 million. Sixty-eight percent of this was from taxes, with the balance coming from fees, grants, and other sources. The fees and grants pay for specific services or projects. While it is important to analyze the General Fund revenues as a whole, it is also critical to examine the General Fund tax base. These taxes are used to support services for which there are no fees, such as public safety and parks, and they are really the bulk of the City's discretionary funds. To examine the tax base more closely, it is helpful to break it down Property further. Property tax comprises Total Tax Revenues Tax* 52%" of the tax base, sales tax 52% 34%, and all other taxes make up the remaining 14%. Property tax is considered to be one of the more stable sources of revenue; however, the growth in this Sales Tax revenue varies with the strength of 34% Other TOT Franchise the housing market. With the Taxes 4% Fees relative affordability of housing in 3% 7% the City in comparison to other markets, property tax revenues have shown slight growth during the past few years. New housing developments and sales have benefited the City's revenues. When looked at on a per capita, constant dollar basis, however, the true character of the revenue becomes transparent. As shown in the graph below, property tax revenue reflects the ebbs and flows of the market, but its trajectory is relatively flat. In other words, there is relatively no growth in over half of the City's tax revenue base. Moreover, because property tax comprises a full 52%* of the tax base, even small percentage fluctuations can have a major impact in terms of dollars of revenues. Even a 5% decrease could potentially take two police officers off the street. Includes property tax in lieu of vehicle license fees. 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 ITEM NUMBER: C - 4 DATE: 02/13/06 Property Tax Per Capita (Constant $) 0� R§5 e CP 0l' 0P C? & 00A 01b 0q o° 9s,Off' O� O� o� OHO do do �R �Qr 0° o'` Oti 05 0° Another way to view the strength of property tax as a revenue is to compare Atascadero with other cities in the county. The chart below shows that our community has the lowest per capita property tax in the county. It is true that in this county, each city has its own unique characteristics which often make it hard to do comparisons. Even with that in mind, however, this chart does make one thing painfully clear. Atascadero has less money per person to spend on essential functions such as public safety and parks that are critical to citizens of the community. In other words, the relative strength of our dollars per capita is not as good as that of our neighbors. Comparative Property Tax Revenue Per Capita $300 $250 $200 $150 $100 $50 a�ae�° ��a� ea°r °��� ��e5 �e�°r O�\�Q° t 5 Sales tax is much more susceptible than property tax to fluctuations in the economy. Thirty-four percent of the City's General Fund taxes comes from sales tax and 43% of • ITEM NUMBER: C-4 DATE: 02/13/06 that stems from automobile sales and sales of building and construction materials, segments of the economy that are vulnerable to recession. In fact, Atascadero is highly reliant on two major retailers, Home Depot and Atascadero Ford Outlet. Twenty percent of the City's total sales tax revenue is generated between these two companies. If either one of these retailers decided to relocate out of the City; sales tax revenue would drop significantly. A sluggish economy could potentially have a negative effect on the vulnerable sales tax base. A two-year economic recession, which had the effect of sustaining only a 10% reduction in retail sales in the City, would result in an $800,000 loss to the General Fund over the period. The chart below depicts sales tax per capita, constant dollar, over the last 20 years. Like property tax, it too shows evidence of the ebbs and flows of the market, but to a greater extent. Atascadero started experiencing an increase in this revenue after Home Depot came on line in fiscal year 2000-2001. The good news is that the City is holding its own. The bad news is that the City is holding its own. Being familiar with the fluctuations in the market, a decrease in revenues in future periods is all but guaranteed and should be anticipated. Without sufficient reserves, critical services could suffer. $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 Sales Tax Per Capita Constant Dollar cb'� RO g°' o0 0� Off, oo Off` Ob o0 CA 00 00 00 0� O`L O`l Off` O`o 00 �°' �°' �4 �°' �°' IO b.\ �q> �O oo O,On, og Off` Og oo OA 0b o0 00 �°' �°b '�°' °' °� ', ', .1 '�°' The strength of sales tax can also be compared to the other cities, as shown below in the per capita comparison. Atascadero ranks 5t' of the 7 cities, with approximately $144 in sales tax revenue per person. As with property tax, the City falls far behind the county leaders in revenue per capita, and therefore our community experiences less strength in each sales tax dollar than our neighbors. 300.00 250.00 200.00 150.00 100.00 50.00 ITEM NUMBER: C-4 DATE: 02/13/06 Comparative Sales Tax Revenue Per Capita �e5 . Q° C� `fie S`o °� �e� or 0��5 off° oe �° ago 5�° Jae 5 One silent thief comes in the form of internet transactions. These transactions, when done via the internet, replace retail sales that the City would otherwise have earned sales tax revenue for. This trend has steadily grown and will continue to do so, further impacting future sales tax revenue. Measurement #3 — State and Federal Action When the State faced fiscal challenges in the early 1990's it simply transferred property tax revenues from cities and counties in effect to itself (known as the ERAF I & II shifts). In addition, the State reduced funding for counties, and in turn allowed counties to recoup these lost revenues by charging cities for services such as collection of property taxes and booking people into county jail. In the late 1990s, the State was in very good financial position and desired to give constituents a tax break. The State did this by reducing one City revenue (VLF) and promising to backfill it with a different one. As the State's financial good fortune deteriorated, so did the State's promise to backfill revenues. Proposition 1A established new strong constitutional protections for the City's largest sources of General Fund revenues including property tax and sales tax. Note however, that although Proposition 1 A protects local government from increased State raids, the ERAF shift already in place continues annually to this day and will remain in the future even with Proposition 1 A. While Proposition 1A has reduced the political risk to City finances, the State may still delay payments and "borrow" from cities in times of State need. In addition to this, Proposition 1A has not been tested yet, and as all entities are when facing financial crisis, the State has been very creative in the past when its financial back was against • Is • • ITEM NUMBER: C - 4 DATE: 02/13/06 the wall. Current rumblings from the State have put us on notice that the State may be looking to cities once again in the near future to help bail them out. Cities are also at risk from ballot measures and other political actions. One example of this would be Proposition 90, which was defeated in the November election. Had this ballot measure passed, the cost to state and local governments in California would have been in the billions of dollars. Although in a better position than in years past, the City's financial well-being continues to be vulnerable to political action. Measurement #4 — Cash Flows The cash flow needs of the City have a direct bearing on the amount of reserve needed. Unlike many private organizations and businesses with a steady cash stream, the City receives large portions of its annual revenues in chunks, twice a year. The fiscal year begins in July and ends in June. During the summer months, the City incurs more expenses for fire reserves, recreation programs, and capital projects than during other months of the year. However, the City does not receive its first fiscal year injection of property tax until late December, and then waits to receive the rest in late April. In other words, the City's receipts go down from April through November while the City's disbursements go up during the same period. �61 sp s D (SDQD 01 �6 �6 r6' 6 AQP Disbursements I Receipts Recent changes in state legislation have exacerbated the City's cash flow situation. The exchange of monthly sales tax revenue and monthly motor vehicle in -lieu fees for the Balance General Fund semi-annual sales tax in lieu and property tax June 30, 2006 $ 7,828,000 in -lieu of VLF, has increased the cash flow gap. Over 40% of the City's General Fund November 30, 2006 4,045,000 revenues now come in late December and in Cash Flow Fluctuation $ 3,783,000 late April. For example, at June 30, 2006 the General Fund had a cash balance of $7.8 million, but at November 30, 2006 the cash balance had dropped to only $4.0 million. This is an annual $3.8 million cash flow gap. :• ITEM NUMBER: C - 4 DATE: 02/13/06 Another element that affects cash flow is the amount of projects being undertaken. The construction of Lewis Avenue Bridge, the Youth/Community Center, and the renovation of the Historic City Hall are just three of the many projects to which the City is financially committed. These projects require significant cash flow. Grants fund many of these projects, which is a terrific source of funding. However, these are reimbursable grants, meaning that the City must first expend the funds reimbursement. circumstances of the agency, it could be month to 18 months recouped its funds. and then request Depending on grant and the lead anywhere from one before the City has The potential cash sources for these grant - funded projects are severely limited by legislative and other restrictions that are placed on the City's funding sources. This means that the General Fund will be tapped once again to front the cash for these projects. If the City were to complete all of its current year budgeted projects by June 30, 2007 and reimbursement time frames are similar to those experienced by the City in the past, the General Fund would have to spend $7.2 million of its cash reserves, advancing the money to other funds. (We believe that the number will be less than this, as construction time frames for the Youth Center will take longer than June 30, 2007.) The General Fund would recoup these funds as soon as the State reimburses the City, however the General Fund would be out the cash until that time. The City is at a critical point in time as far as future commitments are concerned. The General Fund reserve is largely the focus of this analysis since this is the fund over which the Council may exercise considerable discretion. However, the City has over 40 funds in total. As stated before, many of these funds carry legal restrictions on how they can be spent. For example, Gas Tax Fund money must be spent on street maintenance and cannot be used to hire additional police officers. It is permissible, in some funds, to loan money to other funds. If the Wastewater Fund had excess cash for example, and the General Fund needed cash, the Wastewater Fund could loan the General Fund money. This may be one possible option to reduce City reserves overall. The reserve strategy could be built to view fund reserves globally, in essence reducing individual fund stability, but increasing overall reserve efficiency. This option does not come without concern, however. Levels must be constantly monitored for current stability and forecasted for future stability. Using the above Wastewater Fund example, if the Wastewater Fund loaned most of its excess cash to the General Fund, the Wastewater Fund may find itself unable to fulfill its own capital project obligations. While following this path is the leaner strategy, it would require more frequent and accurate financial predictions, and thus, carries more risk. .e • • Budgeted Cash Balance Fund 6-30-07 CDBG $ (524,200) Local Transportation Fund (567,000) Circulation Impact Fees Fund (889,000) Park Impact Fees (568,000) Prop 12 Funds (298,890) Youth Center (4,372,000) $ (7,219,090) projects, which is a terrific source of funding. However, these are reimbursable grants, meaning that the City must first expend the funds reimbursement. circumstances of the agency, it could be month to 18 months recouped its funds. and then request Depending on grant and the lead anywhere from one before the City has The potential cash sources for these grant - funded projects are severely limited by legislative and other restrictions that are placed on the City's funding sources. This means that the General Fund will be tapped once again to front the cash for these projects. If the City were to complete all of its current year budgeted projects by June 30, 2007 and reimbursement time frames are similar to those experienced by the City in the past, the General Fund would have to spend $7.2 million of its cash reserves, advancing the money to other funds. (We believe that the number will be less than this, as construction time frames for the Youth Center will take longer than June 30, 2007.) The General Fund would recoup these funds as soon as the State reimburses the City, however the General Fund would be out the cash until that time. The City is at a critical point in time as far as future commitments are concerned. The General Fund reserve is largely the focus of this analysis since this is the fund over which the Council may exercise considerable discretion. However, the City has over 40 funds in total. As stated before, many of these funds carry legal restrictions on how they can be spent. For example, Gas Tax Fund money must be spent on street maintenance and cannot be used to hire additional police officers. It is permissible, in some funds, to loan money to other funds. If the Wastewater Fund had excess cash for example, and the General Fund needed cash, the Wastewater Fund could loan the General Fund money. This may be one possible option to reduce City reserves overall. The reserve strategy could be built to view fund reserves globally, in essence reducing individual fund stability, but increasing overall reserve efficiency. This option does not come without concern, however. Levels must be constantly monitored for current stability and forecasted for future stability. Using the above Wastewater Fund example, if the Wastewater Fund loaned most of its excess cash to the General Fund, the Wastewater Fund may find itself unable to fulfill its own capital project obligations. While following this path is the leaner strategy, it would require more frequent and accurate financial predictions, and thus, carries more risk. .e • • ITEM NUMBER: C - 4 DATE: 02/13/06 • Measurement #5 - Natural Disasters or Emergencies As defined by the City's Hazard Mitigation Plan, Atascadero is subject to some potentially devastating disasters. The San Simeon Earthquake was enough to shake us into reality regarding the costs of natural disasters. The quake severely damaged the Historic City Hall Administration building and the Printery, and caused thousands of dollars in damages to Fire Station #1, the Police Station, the Wastewater Treatment Plant, and numerous roads and infrastructure around the City. Fortunately, FEMA and OES have paid for a large portion of the repairs thus far. However, as discussed above, the City must pay for the costs of repair before requesting reimbursement from these agencies. At a cost of over $30 million to the City, recovery from the earthquake means that the City must be financially prepared to pay the majority of this cost before being reimbursed. Additionally, a significant portion of these costs are not reimbursable under FEMA/OES policy, and the City is required to absorb them. The City's natural rural beauty and mountainous terrain unfortunately also make it a target for devastating wildfire. In fact, the threat of a wildland fire is so great that the federal Department of Homeland Security will be funding a cooperative exercise this Spring, using nearly all local jurisdictions in a simulation training for a fire that starts in Atascadero at Highway 41. The financial threat to the City of such a fire is of astronomical proportion. Although the City is a party to mutual aid fire response agreements, this only covers the first twelve hours of firefighting time for the use of trucks, bulldozers and hand crews from neighboring jurisdictions. If the firefighting goes on beyond that first twelve hours, the City foots the bill for everything from the first moment outside help arrives until they leave. Those costs can add up very quickly: A strike team, which includes five engines with 14 to 28 firefighters per engine, can cost $10,000 to $15,000 per day plus the cost of feeding the crews and any reimbursed expenses for damaged equipment. To give some perspective, the recent 7 -acre fire at north EI Camino Real used the equivalent of five strike teams. In addition, if a fire was in terrain that necessitated the use of firefighting aircraft, the cost could range from $1,000 per hour for a helicopter with no crew to $9,000 per hour for a forest service helicopter with a crew of 22 to 24 firefighters. This hourly rate does not include the cost of fuel for the aircraft. Clearly, even a mid-size wildfire of 300 acres would put a huge financial burden on the City. Additionally, if any city structures were damaged, it would be the City's responsibility to provide an alternate location to conduct City activities. Other potential emergencies have been identified, such as flooding, multiple casualty accidents, acts of terrorism, and major hazardous materials spills associated with cargo coming through town on either Highway 101 or on the railroad. Any natural disaster or emergency could also have the compounding effect of slowing the local economy, thus potentially reducing General Fund revenues and exacerbating the situation even further. 91 ITEM NUMBER: C-4 DATE: 02/13/06 The City is fully insured against property damage and liability claims. Additionally, Atascadero is very aggressive in applying for all applicable grants, when available, particularly to pay for the cost of responding to emergency situations. Unfortunately, grants are not always available, and at times, the City will need to foot the bill when emergencies arise. Even when grants are available to defray costs, as is the case for the earthquake recovery effort, the City must have reserves to cover the costs until the City can be reimbursed. Measurement #6 — Asset Replacement The repair and replacement of existing assets is a large commitment that is not reflected in traditional governmental budgeting and reporting, yet is a critical part of any reserve or funding strategy. The City of Atascadero owns large amounts of assets that have lives longer than a year: streets, storm drains, computers, playground equipment, fire hoses, ball field lights, street signs, fire stations, radar equipment, vehicles, wastewater treatment plant, zoo exhibits, City Hall, and others. Replacing these items takes large influxes of cash at irregular intervals. For example, a storm drain culvert typically lasts about 75 years. The City may have to clean out the culvert on occasion, but in general for the 75 years of the culvert's life, the City has to spend very little cash on that culvert. Now in year 75, when that culvert fails, the City will have to expend a very large amount of cash to replace that culvert. The use and replacement of capital assets becomes a very easy item to ignore especially in times of economic hardship. The necessity of waiting until an asset completely fails before replacing it becomes the rule rather than the exception. The City of Atascadero is not immune to this budget balancing strategy. This strategy works in the short term, but of course does not work in the long term. As long as the assets are still functioning, the City is in good shape; however when the assets fail, the City has three choices: 1. Reduce Service Levels — For some items, the City may elect to not replace assets, but instead to just do without, as has been the case with items such as the playground equipment at Paloma Park. This typically results in a service level reduction for the community but may be the most prudent solution at the time. This solution typically does not work for life safety assets where there is minimal community tolerance for reduced service levels. (One cannot imagine a situation in which the community would say that it is okay for the police department not to have running vehicles.) 2. Debt Finance Replacement of the Asset — Financing replacement of an asset either through bonds, leases or some other type of loan is always a viable solution once an asset fails (assuming that the City has good credit). The downside of purchasing/constructing assets using loans is, of course, that the City would then have to find money within its annual operating budget to pay ITEM NUMBER: C - 4 DATE: 02/13/06 . back not only the principal amount, but interest as well. Assuming no change in City revenues, this would also result in a reduction of service levels as programs were cut in order to make payments on the debt. 3. Replace the Assets Using Current Reserves — The City may also accumulate reserves in order to replace certain assets, certain groups of assets, or have a general emergency replacement fund for those items which become critical at any given time. The City also earns interest on these reserves, helping defray the cost of replacing the asset when necessary. The downside of this strategy is that the public sees this as money that can be spent now on new assets. (Worry about tomorrow, tomorrow.) Because the City had deferred the replacement of even the simplest fixed assets in order to balance its budget, by the mid 1990s, things had reached critical mass. The City was suffering the embarrassment of having police cars routinely break down while responding to a call, departments trying to complete tasks with only one working computer in the department, and of course a failing road and infrastructure system. As part of the 1998 Financial Plan, Council adopted a strategy to go about establishing replacement reserves for the most critical day to day assets. Today an annual amount is charged to each department for replacement of its computers and vehicles. These reserves are fully funded as part of the Technology Maintenance & Replacement Fund and the Vehicle & Equipment Replacement Fund. The Council also set strategies to begin funding equipment replacement; however due to budget constraints, the City has not been able to include a full year's equipment replacement amount in the budget and the deficit from years of not funding this reserve still exists. The City has, however, been very successful in obtaining public safety grants in recent years, which have helped to replace items such as breathing apparatuses for the fire department and emergency communications equipment for the police department. As other agencies are also looking for alternate means of funding, and state and federal agencies run up against tighter budgets, the availability of grant funds is reduced and the competition for them has increased. Council's strategy for the building replacement reserve has been to attempt to fund an estimated full year's annual replacement each year and look for opportunities to reduce the accumulated reserve deficit from previous years. Since instituting the annual transfer to the Building Maintenance & Replacement Fund, the City has spent the majority of this on much needed repairs of deferred maintenance items, leaving very little in building replacement reserves. Road maintenance is another area with a reserve deficit. It is estimated that the City of Atascadero needs to spend approximately $2,750,000 annually to maintain it's over 140 miles of road. (This annual expenditure would not improve the roads, but only keep them in the shape they are in today.) At Council's direction, the Atascadero Roads 93 ITEM NUMBER: C - 4 DATE: 02/13/06 Program was developed to focus the City's efforts on maintaining and protecting the roads of Atascadero in an organized, efficient and cost-effective manner. Since the inception of the Atascadero Roads program, the City has used a variety of funding sources including LTF Funds, Street Impact Fee Funds, Traffic Congestion Relief Funds and competitive grant funds, along with an annual General Fund contribution of $250,000 to make considerable progress toward the backlog of City road maintenance issues. However, there still remains a large accumulation (over $30 million) of road maintenance issues that need to be addressed. Unknown Items Annual Reserve Fund Requirement 2005-2006 Reserve Fund Strategy Reserve (Deficit) Balance 6-30-06 Street Maintenance $ 2,750,000 $ 1,193.000 $ (30,700.000) Building Replacement 606.000 313,300 (13,741,000 Technology Replacement 89,930 89.930 - Vehicle Replacement 231.080 231,080 several million Equipment Replacement 310,000 35.000 (1,397,000) Parks Infrastructure Replacement 200.000 - (3,793.000 Unknown Items The City's assets include more than just buildings, equipment, vehicles, roads, and computers. Also included are storm drains, catch basins, manholes, bridges, sidewalks, curbs, gutters, medians, traffic signals, park infrastructure and parking lots. Because of funding limitations, there is no current funding of reserves for these items. The reserve deficit for these items is estimated to be over $34 million. The City has been able to address failure of these items as they arise, either by not funding replacement, or by using reserves; however as the storm drains increasingly begin to fail and the park infrastructure continues to deteriorate, this strategy will not work in the long run. Measurement # 7 — Service Level Consistency Another issue to consider is how important it is to the organization and constituents that services levels are consistently maintained. Looking back a decade and a half ago, this was a key concern. A less fiscally conservative policy was in effect during that time, and when the economy became sluggish, reserves were insufficient to carry the City through the tight times. Services were cut. Many families had to seek alternate sources for youth recreational activities. Parks and Public Safety services were at a bare minimum. Employees were laid off. The few employees that remained to run the City • Estimated at several million Storm Drain Replacement unknown - dollars Estimated at Other Infrastructure several million Replacement unknown - dollars The City's assets include more than just buildings, equipment, vehicles, roads, and computers. Also included are storm drains, catch basins, manholes, bridges, sidewalks, curbs, gutters, medians, traffic signals, park infrastructure and parking lots. Because of funding limitations, there is no current funding of reserves for these items. The reserve deficit for these items is estimated to be over $34 million. The City has been able to address failure of these items as they arise, either by not funding replacement, or by using reserves; however as the storm drains increasingly begin to fail and the park infrastructure continues to deteriorate, this strategy will not work in the long run. Measurement # 7 — Service Level Consistency Another issue to consider is how important it is to the organization and constituents that services levels are consistently maintained. Looking back a decade and a half ago, this was a key concern. A less fiscally conservative policy was in effect during that time, and when the economy became sluggish, reserves were insufficient to carry the City through the tight times. Services were cut. Many families had to seek alternate sources for youth recreational activities. Parks and Public Safety services were at a bare minimum. Employees were laid off. The few employees that remained to run the City • ITEM NUMBER: C - 4 DATE: 02/13/06 • were overworked and frustrated. Morale was at an all time low. Recruitment during the recovery period was difficult at best. That fear of instability and lay offs is still alive today in the minds of many employees and employee associations. The fiscal sustainability policy that is currently in effect is that of putting aside reserves in good times and then using those reserves during down periods to achieve stable operations. This was a critical step in 1992 on the path to recovery. The important question to ask now is, is this policy still relevant? Staff believes it is. The constituency and employees are expecting stability in the organization more than ever. It builds confidence in the people to know they can depend on their government (and their employer) for their needs and services, regardless of the state of the economy. Measurement 8 — Opportunities Previous Councils have wanted the flexibility to take advantage of opportunities as they arose. Reserves have been a tool to achieve such goals. The purchase of the Hay and Feed property and Paloma Park were opportunities that came up quickly. Council was able to maximize those opportunities and purchased both properties. Financing can be another option to use in this type of situation, but at times procuring financing can take longer than expected, and opportunities may dissolve. Staff firmly believes that it continues to be important to have reserves that give the Council flexibility with such opportunities. Measurement 9 — Future Commitments The City has made financial obligations that will affect future budget cycles. For example, when construction is complete on the Youth/Community Center, the Center will require an operating budget that is estimated to be at least $500,000 annually. In an effort to address some of the reserve deficits in buildings and streets, the Pavilion is scheduled to receive much needed improvements of approximately $150,000, the Police station will receive repairs to the lobby and a new roof for $50,000, and one additional mile of road will be paved annually. Maintenance on new assets such as the downtown streetscape, creek trails, and neighborhood parks (in the communities of Apple Valley, De Anza, and Las Lomas) will also be required. The City continues its commitment to public safety through additional expenditures in Police Department recruiting, and expands resources for the community with the addition of an affordable housing management assistant. All of these commitments are valuable to the community, and it is the City's responsibility to ensure that there are sufficient resources to fulfill these obligations. Interest Earnings The measurements discussed in this document provide guidelines to a thought process that should be undertaken when developing a financial reserve policy. But there is one aspect that is often overlooked when deciding on the appropriate level of reserves. The • City's reserves are invested; therefore, they generate interest revenue. This interest on 95 ITEM NUMBER: C-4 DATE: 02/13/06 reserve funds can be viewed as a kind of 'endowment' that provides additional General • Fund operating revenues that can fund important services to residents. Conversely, as reserves are spent and not replaced, that `endowment' disappears along with the reserves, further depleting the availability of funding for such things as parks maintenance and public safety. Look at the Big Picture Nine criteria have been analyzed in order to ascertain what constitutes a prudent reserve for the City of Atascadero. While each of these is an important measurement, they should not be looked at individually but instead as a whole. They must also be considered within the framework of the financial picture for the entire organization rather than just the General Fund. If each reserve was to be considered individually, it might be recommended that the City reserve 10% of sales tax in case a major sales tax provider closes its doors, plus three months' worth of expenditures for natural disasters, plus $3.8 million for annual cash flow needs, plus $2 million on hand just in case an opportunity comes up, etc. Each item listed is an individual event, and, in theory, could all happen at the same time, but the risk of that happening is minimal. It would be very conservative to keep the cumulative amount of what would otherwise be prudent individual reserves. Instead it may be sensible to reserve for a more likely combination of events (such as the need for our annual cash flow obligation and the loss of State revenue at the same time) while • having a contingency plan for the more unlikely events (a major natural disaster, a once in a lifetime opportunity and the need for our annual cash flow obligation all at the same time.) In the event the City's General Fund could not meet its cash needs because of an unlikely string of events, there may be other places to look within the organization. For example, as the Wastewater Fund has an available cash balance that the General Fund can borrow in an emergency situation, the need for redundant reserves in the General Fund goes down. If the other funds of the City have very few cash reserves, the General Fund loses that "safety valve" and may consider the need to increase its reserves. Recommendations General Fund reserves are at an all time high, but this is expected as part of the City's overall financial strategy of putting money away in the good times to carry us through the bad times. In line with this strategy, the City should have its highest level of reserves just prior to an economic slowing. This way, the City can use those reserves to carry it through the down times and into the next economic boom. Staff believes that an economic slowing is just on the horizon and recommends that the City maintain its policy of accumulating its reserves in periods of abnormal revenue growth and using s M. ITEM NUMBER: C - 4 DATE: 02/13/06 r those reserves in periods of slow or no growth. This reserve amount should ebb and flow with the City's normal economic cycle. It is also recommended that the General Fund maintain at least the prior year's maximum ongoing cash flow needs in reserves. This would prevent the necessity of the City having to borrow funds to meet its regular operating activities. Staff further recommends that the Council maintain a very conservative project cash flow reserve for the next few years. The restoration of the Historic City Hall building (an estimated $30 million project), and the construction of the Youth Center (over $5 million), are major capital projects that are being funded in large part through reimbursement grants. Staff will be evaluating and analyzing the timing of reimbursement payments throughout the Youth Center Project in order to evaluate cash flow strategies for the much larger Historic Cityhall Project. Staff also believes that it is prudent that the City always maintain an amount equal to three months of General Fund expenditures in reserves in order to insulate the City from the effects of unexpected events such as raids from the State, large economic swings, or natural disasters. However, with the current year's need for a conservative cash flow reserve and the availability of Wastewater funds in the event of an emergency, staff believes that an overlap of this reserve with the cash flow reserve is appropriate. Staff further recommends that Council continue fully funding replacement reserves for is technology and vehicles, and partially funding reserves for streets, buildings, and equipment. Staff will continue to look for opportunities to decrease these reserve deficits through grants and other funding sources. Conclusion It is important that the City of Atascadero maintain a prudent level of reserves. The City has exposure to certain risk factors when looking at future revenues. What constitutes a prudent level of reserves is different for each city. There is, however, a series of measuring tools by which the City can examine its financial base and determine an appropriate level of reserves for the City. Using these tools, it has been suggested that the amount of $7.2 million, or reserves roughly equal to 44% of the City's present General Fund operating budget is not unreasonable. It has been noted that the reserves of the City of Atascadero serve in an endowment -like fashion that provide General Fund operating income of approximately $325,000 in interest earnings. Any consideration to reduce reserves by allocating funds to a capital project must also consider this negative effect on the City's operating budget. 97 0 m