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Agenda Packet 022409
f41r14 r f 'I `` �' CITY OF ATASCADERO CITY COUNCIL AGENDA Tuesday, February 24, 2009 City Hall Council Chambers 6907 EI Camino Real, Atascadero, California REGULAR SESSION: 6:00 P.M. PLEDGE OF ALLEGIANCE: Council Member Clay ROLL CALL: Mayor Beraud Mayor Pro Tem Fonzi Council Member Clay Council Member Kelley Council Member O'Malley APPROVAL OF AGENDA: Roll Call PRESENTATION: 1 FBI Presentation to Police Chief Jim Mulhall for his years of service on the San Luis Obispo County Bomb Task Force 1 .40 ..r C MANAGEMENT REPORTS 1 Economic Development Strategy— Report of Findings ■ Fiscal Impact: None ■ Recommendation. Council receive an initial report of findings from Applied Development Economics and provide feedback on the report. [City Manager] 2. Adoption of Mission Statement for the City of Atascadero ■ Fiscal Impact: None ■ Recommendation. Council adopt the Draft Mission Statement for the City of Atascadero [City Manager] 3. Council Norms and Procedures 2009— Consideration of Amendments ■ Fiscal Impact: None ■ Recommendation. Council 1 Review Council's suggested changes from Strategic Planning Workshop of January 29, 2009, amend if desired, and approve the Council Norms and Procedures 2009, and, 2 Give direction regarding revisions, if any, to the Council Norms with regard to electronic communications by Council Members [City Manager] `'4' 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.) D COMMITTEE REPORTS (The following represent standing committees Informative status reports will be given, as felt necessary) Mayor Beraud 1 City/ Schools Committee 2 County Mayors Round Table 3 Finance Committee 4 Homeless Services Governing Board 5 Integrated Waste Management Authority (IWMA) Mayor Pro Tem Fonzi 1 Air Pollution Control District 2 Finance Committee Council Member Clay 1 City/ Schools Committee 3 Council Norms and Procedures(20079) Page 7 of 8 a.,�' - Applicant's comments shall be limited to a reasonable time - Public comments shall be limited to 53 minutes per speaker; per Municipal Code - It is acceptable to ask questions of a speaker for clarification - Each speaker will be thanked - Council will not respond until all public comment has been reviewed - Mayor allows other members to speak first and then gives his/her views and summarizes • Voting - Everyone speaks before a motion - Attempts will be made to get consensus on significant policy issues - Department heads will generally attend every meeting, other staff attendance at Council meetings is at the City Manager's discretion - Council Member discussions will not be redundant if they concur with what has already been said • Closed Session - Council will get written reports for Closed Session items as much as possible, these reports are to be turned in at the end of the meeting - City Manager will ask for pre-meeting closed sessions if it will save the City money (due to consultant fees, etc ), to be held no earlier than 5 00 p m - No violation of Closed Session confidentiality • Special Meetings - Special meetings may be called by Mayor, or a majority of the Council, pursuant to the Brown Act. 142 City of Atascadero WELCOME TO THE ATASCADERO CITY COUNCIL MEETING The City Council meets in regular session on the second and fourth Tuesday of each month at 6.00 p.m unless there is a Community Redevelopment Agency meeting commencing at 6:00 p.m in which event the Council meeting will commence immediately following the conclusion of the Community Redevelopment Agency meeting Council meetings will be held 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 Front Counter of City Hall 6907 EI Camino Real, Atascadero, 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 video taped and audio 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(from Title 2, Chapter 1 of the Atascadero Municipal Code) 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 lectern If you wish to speak for, against or comment in any way- 1 ay1 You must approach the lectern and be recognized by the Mayor 2. Give your name and address (not required) 3. Make your statement 4 All comments should be made to the Mayor and Council 5. No person shall be permitted to make slanderous, profane or negative personal remarks concerning any other individual, absent or present 6. All comments limited to 3 minutes 7 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 Digital presentations brought to the meeting on a USB drive or CD is preferred. Access to hook up your laptop to the City's projector can also 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 lectern 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) 5 Council Norms and Procedures (2007-9) Page 5 of 8 ' MAYOR eEi FCTION MAYOR'S ROLE • Each Mayor is unique, the role is defined by the person, based on that person's style • The Mayor is the spokesperson for the City • The Mayor will inform the Council of any informal correspondence sent out to anyone in relation to City business - use e-mail whenever possible • The Mayor communicates with Commission Chairs CITIZEN COMPLAINTS • Staff will attach their response to the copy of the letter received when sending to Council • By City Manager discretion, Council will be informed of significant, urgent and repetitive complaints. • Staff will draft a copy of responses for Council to use, letters over Council signatures checked out with signatory • Council should not attempt to fix Citizens' problems on their own, it will be referred to the City Manager • Responses to citizens are customized • Copies of responses to be included in individual packets • If a Council Member wants action based on a citizen's complaint, they should go through the City Manager's office to ensure it gets into the tracking system 140 ITEM NUMBER. A-1 DATE. 02/24/09 n I 1818 ■ 1H cm Atascadero City Council Staff Report- Police Department Supplemental Law Enforcement Services Fund RECOMMENDATION Council approve the 2008/2009 Supplemental Law Enforcement Services Fund (SLESF) expenditure pian in the amount of$100,000 00 DISCUSSION Council has previously approved receiving the 2008/2009 Supplemental Law Enforcement Services Fund (SLESF) monies in the amount of $100,00000 These funds are awarded annually to each city and are intended to fund frontline police services Staff has identified opportunities in which the grant proceeds will be used including, but not limited to, the distribution noted below The funds have been approved for release by the County Supplemental Law Enforcement Oversight Committee Therefore, in order to comply with Government Code Section 30061(b) requiring an expenditure plan by the governing board of the agency accepting the funds, this staff report details that plan Below are the anticipated expenditures for each category However, the Police Chief has the discretion of redirecting funds up to 25% of the total grant between the frontline categories listed below Expenditures will not exceed the total grant amount of$100,000 • Police Cadet Program funding $30,000 • Purchase Automatic External Defibrillators for police vehicles $15,000 • Purchase investigative.and surveillance equipment $15,000 • Purchase more Mobile Data Computers for police vehicles $10,000 • Upgrade Dispatch Center technology $10,000 • Purchase speed enforcement equipment $10,000 • Purchase firearms, less lethal equipment/supplies $ 5,000 • Other frontline services as necessary $ 5,000 FISCAL IMPACT No fiscal impact to General Fund 7 Council Norms and Procedures(2007-9) Page 3 of 8 14� - Before committees start moving in new direction, they will get direction from the rest of Council - Committee reports will be made under Council Reports, when appropriate - Committee summaries will be sent on an interim basis to update other Council Members on o Issues being discussed o Options being considered o Progress • Council and committees will give clear and focused direction as early as possible COUNCIL INTERACTION AND COMMUNICATION WITH STAFF City Manager • Council Members should always feel free to go to the City Manager • When a Council Member is unhappy about a department, he/she should always talk it over with the City Manager and/or the Assistant City Manager - not the department head • Concerns about a department head must be taken to the City Manager only • Critical information will be passed to all City Council Members by appropriate personnel • The Council will provide ongoing feedback, information, and perceptions to the City Manager, including some response to written communications requesting feedback. • The City Manager or the Assistant City Manager deals with issues that cross department boundaries Staff in General • Council can talk with department heads if asking for information, assistance or follow up 138 ITEM NUMBER. A-2 DATE. 02/24/09 ■ to � ■ ie Atascadero City Council Staff Report - Public Works Department Waste Water Collection System Infrastructure Repair Projects Request for Appropriation RECOMMENDATION Council authorize the Administrative Services Director to allocate $200,000 in Wastewater Funds toward sanitary sewer manhole rehabilitation and sewer-line trench settling projects DISCUSSION Staff is requesting the allocation of $200,000 in Wastewater Reserve Funds to pay for sanitary sewer line repairs, manhole replacements and trench failure repairs These wastewater collection system projects are not currently funded and will require City Council action to appropriate the necessary funds from Wastewater Reserves We currently have design plans for portions of the projects mentioned above and are prepared to secure contractors to compete this work in accordance with the City's Procurement Policy The current bidding environment is very competitive and we anticipate that the City will save money in the long-run by accelerating the schedule of these construction projects. FISCAL IMPACT $200,000 of Wastewater Fund reserves toward sanitary sewer manhole rehabilitation and sewer-line trench settling projects 9 Attachment 5 0 all ■ a ,9x8' '9'9 DRAFT CITY OF ATASCADERO COUNCIL NORMS AND PROCEDURES (2007-9) GENERAL • To take courageous action when necessary to keep the City of Atascadero a well run, well managed innovative City • Council provides leadership and participates in regional, state and national programs and meetings • Council looks to commissions and committees for independent advice • Other community leaders are consulted in the decision making process when appropriate • There is extensive citizen participation and work on City programs and documents • There are numerous meetings, other than regular council meetings ti.r • We stress training for staff, council, and commission members • Council Members will inform the City Manager's Administrative Assistant when they will be out of town as early as possible and it will be put on the Council Calendar • Council Members get the same information as much as possible citizen complaints, letters, background, etc • Council Members will determine which specific commission packets they want to receive • Use technology to improve information flow and communications l 136 ITEM NUMBER. B-1 DATE. 02/24/09 1918 ■ 1 79 8 Atascadero City Council Staff Deport - Public Works Department 2009 Community Development Block Grant Allocation RECOMMENDATION City Council forward to the County Board of Supervisors allocation recommendations for the 2009 Community Development Block Grant (CDBG) funds as follows M14 i/ ,i City of Atascadero- Handicapped Accessibility - Barrier Removal 195,494 Projects North County Women's Shelter- Roof Replacement 12,100 P f Se�� E , trn"heal o f D I YIbcarlon,�y' x , Atas Community Services Foundation - Youth Activity Scholarships 1,960 Atascadero Loaves and Fishes- Operation of Food Pantry 6,860 Big Brothers Big Sisters - Operating Expenses, Mentor Program 1,960 EI Camino Homeless Organization - Operations 12,750 Literacy Council -Atascadero Program 980 Senior Nutrition Program 1,960 Peo les' Self Help Housing- Homebuyer Edu./Foreclosure Prevention 980 U. 211 SLO Hotline - Capacity Building and Priority Study 3,400 'd ,A M- City Program Administration Costs 33,200 Estimated 2009 CDBG Grant Funds Available 183,000 Prior Year Reallocations 88,644 Estimated Total Funding Available 271,644 11 provides "Except as authorized pursuant to Section 54953, any use of direct communication, personal intermediaries, or technological devices that is employed by a majority of the members of the legislative body to develop a collective concurrence as to action to be taken on an item by the members of the legislative body is prohibited." Section 54953 concerns the use of teleconferencing procedures and has no application to the situation presented herein. In analyzing the language of section 54952.2, we may apply well recognized principles of statutory construction. We are to "ascertain the intent of the Legislature so as to effectuate the purpose of the law " (DuBois v Workers' Comp Appeals Bd. (1993) 5 CalAth 382, 387 ) "The words of the statute are the starting point." (Wilcox v Birtwhistle (1999) 21 CalAth 973, 977 ) "Words used in a statute should be given the meaning they bear in ordinary use [Citations.] If the language is clear and unambiguous there is no need for construction, nor is it necessary to resort to indicia of the intent of the Legislature " (Lungren v Deukmejuan (1988) 45 Cal.3d 727, 735 ) Applying these rules of construction to the terms of subdivision(b)of section 54952 2,we find that the sending of e-mails would be the"use of technological devices." The statutory prohibition applies to such use"by a majority of the members of the legislative body" Anything less than a majority is not covered by the statute (See Roberts v City of Palmdale,supra, 5 Cal.4th at pp 375-377,Frazer v Dixon Unified School Dist' supra, 18 Cal.App 4th at p 797 ) Here, we are given that a majority of the board members are sending e-mails to each other As for the requirement that the e-mails be employed "to develop a collective concurrence as to action to be taken on an item,"we note that such activity would include any exchange of facts (see Roberts v City of Palmdale, supra, 5 CalAth atpp 375-376,Frazer v Dixon Unified School Dist., supra, 18 Cal.App 4th at p 796) or, as we have previously explained in our pamphlet on the Brown Act,substantive discussions"which advance or clarify a member's understanding of an issue, or facilitate an agreement or compromise amongst members, or advance the ultimate resolution of an issue" (Cal. Dept. of Justice, The Brown Act, Open Meetings For Local Legislative Bodies (1994),p 12)regarding an agenda item. We find no distinction between e-mails and other forms of communication such as leaving telephone messages or sending letters or memorandums If e-mails are employed to develop a collective concurrence by a majority of board members on an agenda item,they are subject to the prohibition of section 54952.2, subdivision(b) Application of the statute 3 00-906 low 134 ITEM NUMBER B - 1 DATE. 02/24/09 *00.. The following criteria should also be used to guide selection of CDBG programs 1 The proposal is consistent with the national objectives and eligibility criteria of the HUD CDBG program, 2 The proposal is consistent with the Urban County Consolidated Plan, 3 The proposal is consistent with the General Plan and other City codes/ordinances 4 The proposal will achieve multiple community development objectives, 5 The proposal can be implemented in a timely manner, without significant environmental, policy, procedural, legal, or fiscal obstacles to overcome, and 6 The project is not financially feasible without CDBG funding The applications were reviewed by staff to ensure compliance with HUD criteria and forwarded to the Finance Committee for preliminary award recommendations RECOMMENDED FOR FUNDING PUBLIC FACILITIES City of Atascadero — City Facilities and Infrastructure— Barrier Removal Funds Requested. $150,000 Recommended Funding. $106,850 in 2009 funds Prior Year Reallocations. $88,644 Total Recommended Funding: $195,494 This project provides for the removal of accessibility barriers at all city facilities Project includes, in part, sidewalk modifications, infill of sidewalk gaps, audible ramping issues, bathroom compliance upgrades, door hardware replacements, audible and visual warning systems, ramping issues and access to facilities North County Women's Resource Center— Roof Replacement Funds Requested $12,100 Recommended Funding. $12,100 North County Women's Resource Center provides assistance to women and children who are victims of domestic violence Approximately 95% of their clients meet the low to very low-income criteria. The proposed project would fund replacement of the roof at the Atascadero shelter Replacement of the deteriorating roof will prevent leaking, eliminating the potential for interior damage to ceilings, walls and the risk of mold PUBLIC SERVICES - 15% cap on percentage of award from this category estimated at $27,450 this cycle Atascadero Community Services Foundation — Youth Activity Scholarship Fund Funds Requested. $10,000 Recommended Funding: $1,960 The Community Services Foundation has established a scholarship fund to assist families of low-income youth to participate in recreational and social activities Because this program is limited to low-income youth, the benefit criteria will be met. 13 Attachment 4 TO BE PUBLISHED IN THE OFFICIAL REPORTS OFFICE OF THE ATTORNEY GENERAL State of California BILL LOCKYER Attorney General OPINION No 00-906 of February 20, 2001 BILL LOCKYER Attorney General CLAYTON P ROCHE Deputy Attorney General lose THE HONORABLE WESLEY CHESBRO,MEMBER OF THE STATE SENATE, has requested an opinion on the following question. May a majority of the board members of a local public agency e-mail each other to develop a collective concurrence as to action to be taken by the board without violating the Ralph M.Brown Act if the e-mails are also sent to the secretary and chairperson of the agency, the e-mails are posted on the agency's Internet website, and a printed version of each e-mail is reported at the next public meeting of the board? 1 00-906 Vow 132 ITEM NUMBER B -1 DATE. 02/24/09 Senior Nutrition Pro ram of SLO Count — Senior Nutrition Funds Requested $3,000 Recommended Funding. $1,960 The Senior Nutrition Program operates nine dining rooms throughout San Luis Obispo County including the Senior Citizen's United facility on East Mail in Atascadero This program also provides home delivered meals to those who are homebound Countywide, the Program served approximately 130,000 meals in 2007/2008 and anticipates serving over 140,000 in 2008/2009 Funds are requested for operational expenses NOT RECOMMENDED FOR FUNDING- PUBLIC SERVICES Transitional Food and Shelter Funds Requested - $14,000 Not recommended for funding this year Transitional Food and Shelter (formerly The Homeless Housing Project) is requesting funds to provide temporary, 24 hour shelter to the medically fragile homeless in San Luis Obispo County, those who are too ill, injured or disabled to be out during the day VAW and cannot be served in an overnight shelter ECONOMIC DEVELOPMENT Hotline of San Luis Obispo County - 2-1-1 Funds Requested. $3,400 Recommended Funding. $3,400 CDBG funds are requested by 211 SLO Hotline to conduct a study of social services requests from approximately 12,000 low and very low income callers to determine, by priority, which needs can be met by a local agency and what needs remain unmet because local services are not available Callers included in the study reside in San Luis Obispo County and selected cities within SLO County This project is designed to collect and analyze data about the social service needs of SLO County residents. The results will allow City and County governments to better understand what services a large number of low income residents are asking for and whether or not there are services available to meet those requests Additionally, information will be available to determine if duplications exist or if an agency generally does provide the service but could not for some reason at the time it was needed 15 Improper Interference With Functioning of Staff Several months ago, the Santa Cruz County Grand Jury issued a report finding that members of the board of supervisors sent thousands of e-mails and memos to staff in the Planning Department about pending projects 6 The grand jury concluded that such involvement created a variety of "chain of command" problems and gave the appearance that the supervisors were trying to facilitate special treatment for certain constituents. In cities with a city manager form of government, most municipal codes or charters contain language providing that council members must deal with the city manager and not with the staff, except for the purposes of inquiry 7 Municipal codes also contain provisions prohibiting an individual council member from giving orders or instructions to a city manager 8 It has always been difficult to differentiate a communication "for the purpose of inquiry" from a communication that gives an order or instruction E-mail can make that distinction even more difficult, because it is easy for a council member to generate an e-mail that re-quires information to be assembled and processed or can be perceived as giving "instructions" to staff, even though it is intended to be a simple inquiry Even appropriate e-mail can distract staff from their other responsibilities, because staff believes they have an obligation to answer responses from elected officials before addressing their other responsibilities. Some cities have adopted guidelines governing these sorts of communications from elected officials to city staff A policy can be tailored to different circumstances and particular needs of an individual jurisdiction. The ease, convenience and speed of e-mail both encourages communication and poses new challenges as elected officials carry out their responsibilities consistent with applicable law We recommend development of local policies and regular training to ensure that use of e-mail and other emerging technologies remains within the framework of the applicable legal standards Footnotes 1 All statutory cites are to the Government Code unless otherwise noted 2 Wood v Battle Ground School District, et al. (2001) 27 P 3d 1208. Relying on the language of the Washington statute, the appellate court first found there was no violation when officials who had not yet taken office engaged in various meetings. In California, unlike Washington state, members-elect are subject to the prohibitions of the Brown Act. Cal Gov't. Code section 54952.1 3 Id at p 1216. See, e.g., Stockton Newspapers, Inc. v Members of the Redevelopment Agency(1985) 214 Cal. Rptr 561, 565, 171 Cal App 3d 95 4 Wood v Battle Ground School District, et al. , supra, 27 P 3d at 1217 5 Id. at p 1217 Footnote omitted 6 2002-03 Santa Cruz County Grand Jury Final Report. Obstacles to the Orderly Operation of the Santa Cruz County Planning Department. 7 See, e.g City of Sonoma Municipal Code §2 08.220 provides, "The city council and its members shall deal with the administrative services of the city through the city manager, except for purposes of inquiry, and neither the city council nor any member thereof shall give orders to any subordinates of the city manager " 8 See, e.g , Town of Moraga Municipal Code section 2 08.080 provides that, "The town manager shall take his or her orders or instructions from the council only when the council is sitting in a duly convened meeting and no individual councilman shall give orders or instructions to the town manager" LA#4850-1112 2691 v 130 ITEM NUMBER. C-1 DATE. 02/24/09 re nn" n n, y� all, i r7 Atascadero City Council Staff Report - City Manager's office Economic Development Strategy - Report of Findings RECOMMENDATION Council receive an initial report of findings from Applied Development Economics and provide feedback on the report. DISCUSSION. On April 8, 2008, the City Council hired Applied Development Economics (ADE) of Walnut Creek to revise the City's economic development strategy Shortly after the consultants were hired, they began working with staff Throughout the summer of 2008, ADE gathered information about Atascadero by reviewing City documents, interviewing stakeholders, holding several community meetings, providing a market analysis, issuing a mail survey and developing a Strengths, Weaknesses, Opportunities, and Threats analysis The information was then used to develop draft economic goals for the community A public forum to discuss potential goals was held on November 22, 2008 at the Colony Park Community Center Since this time, ADE has been finalizing their findings and drafting goals for the community The information collected and their suggestions for the community's initial economic goals are being shared this evening in a report entitled, "Report of Findings for the Economic Development Strategy for the City of Atascadero" (Attachment A) The contents of this report will be included in the final version of the economic strategy The main difference between what is being discussed this evening and what will be in the final report is that the final report will contain the action steps for achieving success In essence, the action steps are the meat of the report; however, these cannot be developed until the community's economic goals and objectives have been reviewed by the City Council Tonight ADE representatives are in attendance to discuss the report of findings and the community's suggested economic goals The primary objective of this evening's discussion is to provide feedback on the goals being suggested by ADE so that ADE can finalize the goals and develop action steps and a marketing plan for the City 17 Attachment 3 When E-Mail Violates The Brown Act, and Other E-Mail Pitfalls November 2003 by Natalie West and Michael Jenkins Natalie West is a shareholder in the Oakland office of the law firm of McDonough, Holland& Allen PC, and can be reached at<nwest@mhalaw com> Michael Jenkins is a partner in the law firm of Jenkins & Hogin and serves as city attorney for Diamond Bar, Hermosa Beach, Rolling Hills and West Hollywood. He can be reached at<mjenkins@Iocalgovlaw com> West and Jenkins are past presidents of the League's City Attorneys Department. This column is provided as general information and not as legal advice The law is constantly evolving, and attorneys can and do disagree about what the law requires Local agencies interested in determining how the law applies in a particular situation should consult their local agency attorneys. ...... p . .. .. . ..... ....._. _ _ __ __ In Se _.. tember's column, we discussed e-mail in the context of public records. This month, we look at other issues that can arise when public officials communicate with each other and staff via e-mail. Avoiding Brown Act Issues 'wow Officials increasingly rely on e-mail to communicate with each other as well as with members of the public and with staff Such widespread use of e-mail creates the risk of Brown Act violations The Brown Act requires all public meetings to be open and public.' The act prohibits "any use of technological devices that are employed by a majority of the members of a [city council] to develop a collective concurrence" on an action to be taken by the body This is commonly known as the prohibition on "serial meetings." The attorney general has issued an opinion concluding that "[a] majority of the board members of a local public agency may not e-mail each other to develop a collective concurrence as to action to be taken by the board without violating the Ralph M Brown Act even if the e-mails are also sent to the secretary and chairperson of the agency, the e-mails are posted on the agency's Internet website and a printed version of each e-mail is reported at the next public meeting of the board." The opinion reviewed the policy and provisions of the Brown Act in detail, concluding that decisions should be made in public meetings because such meetings provide the opportunity for public attendance and public comment, characteristics that are missing from an exchange of e-mail Although we are unaware of any reported California case on these issues, we did find a case from the state of Washington, holding that the exchange of e-mail can constitute a prohibited meeting A member of the public filed a lawsuit against school board members and members- elect alleging that they violated the state's open meeting law by sending each other private e- mail 2 The Washington court adopted a broad interpretation of the term "meeting," noting that "elected officials no longer conduct the public's business solely at in-person meetings," and quoting a California case. "If face-to-face contact of the members of a legislative body were necessary for a meeting, the objective of the open meeting requirement of the Brown Act could LA#4850-1112 2691 v1 128 wactImp'ltv Gp MENT DE je ECo �1D►N�'' NotAlc PORI of Fr R,� gp,,C►CG Rojjtav► ,�E�R�p►R�t 17 , 2409 po�,pptascadero city prepared e�t E�O�omiC 96 (925)934-9712 d p lapm rn1a 943 C 923-15b- Applie eW�nu�Greek,CalicA 9583 . 91b) 00 Pringle AVelt la a'DrIveys°sce 150 a ,"Ssacramcora 1 2151 River P With GfOUP The ptacemak+n9 �F, ED EN'T EC 0140M `C Cal.App. 3d 545 A housing authority created pursuant to Health&Safety Code Section 34200 et seq., is a"local agency"within the meaning of the Brown Act.Id. An interagency police department task force was deemed a"local agency"subject to the Brown Act where the agency was formed as a separate legal entity under the Joint Exercise Powers Act, pursuant to written agreements by the participating city councils,and where the agency had a budget of more than$9 million and had the authority to enter into contracts.McKee v Los Angeles Interagency Metropolitan Police Apprehensive Crime Task Force(2005) 134 Cal.App.4th 354 Effective January 1,2007, a local agency also includes a multijurisdictional law enforcement agency(joint powers entity),that provides law enforcement services for the parties to a joint powers agreement for the purpose of investigating criminal activity involving drugs; gangs;sex crimes;firearms;trafficking or felony possession of a firearm,high technology, computer or identity theft; human trafficking,or vehicle theft. Sec.54957.8 M. Brown Act Meetings A. What constitutes a"meeting" under the Brown Act? 1 Broad Definition of Meeting.The Brown Act broadly.defines"meetings"to include: (1) a face to face congregation of a majority of the members of a legislative body to hear,discuss or deliberate on any item within the subject matter jurisdiction of the body or the local agency;or(2) any use of communication, personal intermediaries,or technological devices through which a majority of the members develop concurrence as to action to be taken on an item.Sec.54952.2. 2. No Need to Take Action.The Brown Act extends to a legislative body's"informal sessions or conferences"including briefings of members about matters even if no vote or action is taken.Frazer v Dixon Unified School Dist. (1993) 18 Cal.App.4th 781 Collective acquisition and exchange of facts prior to the ultimate decision is part of"deliberation" Sec.54952.2,216 Sutter Bav Assn v County of Sutter(1997)58 Cal.App.4th 860 The Act includes"deliberation as well as action"because"deliberation and action [are] dual components of the collective decision- making process"and"the meeting concept cannot be split off and confined to one component only[]"Sacramento Newspaper Guild v Sacramento County Bd. of Supervisors(1968)263 Cal. App 2d 41,47(superseded by statute on the issue of attorney-client privilege). A county board of supervisors' attendance at a luncheon and discussion of a county workers' strike with staff members, labor leaders and staff attorneys,was a"meeting" in violation of the Act, even though the board did not take any formal vote.Id A pre-meeting briefing session held by a city council with the city manager,city attorney and planning director is a"meeting"subject to the open meeting requirements.42 Ops.Cal.Atty Gen. 61 (1963). 3. Serial Meetings.Serial meetings involve only a portion of a legislative body at any one time, but eventually involve a majority The problem with serial meetings is the process,which deprives the public of an opportunity for meaningful participation in legislative body decision making.Except for teleconferencing, the Brown Act specifically prohibits"any use of direct communication,personal intermediaries,or technological devices that is employed by a majority of the members of the legislative body to develop a collective concurrence as to action to be taken on an item by the members of the legislative body"Sec.54952.2(b) Serial meetings may occur by either a"daisy-chain"or a"hub-and-spoke"sequence. to the daisy-chain scenario individual council members contact each other until a quorum and collective concurrence has been established. For example,a quorum of council members who achieve a 6 ----126_._ __..------ - ----- - ---- ------ ---- CONTENTS I. Summary of Economic Opportunities 1 E. Introduction 5 III. Economic Opportunities 11 IV Economic Development Goals 45 V Action Plan 49 VI, Appendix A. Fiscal Impact Methodology 51 VII. Appendix B Atascadero Survey 59 VIII. Appendix C Economic Base Analysis 71 IX. Appendix D Community Forum Handout 79 21 ITEM NUMBER C-3 DATE 02/24/09 (3) For purposes of this subdivision, a health authority means any entity created pursuant to Sections 14018.7, 14087 31, 14087 35, 14087 36, 14087.38, and 14087 9605 of the Welfare and Institutions Code, any joint powers authority created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 for the purpose of contracting pursuant to Section 14087.3 of the Welfare and Institutions Code, and any advisory committee to a county sponsored health plan licensed pursuant to Chapter 2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code if the advisory committee has 12 or more members. (4) This subdivision shall remain in effect only until January 1, 2009 124 *4W I. SUMMARY OF ECONOMIC OPPORTUNITIES The essence of Atascadero stems from its residential quality of life. Yet the economic prosperity of the community is vital to maintaining and enhancing the amenities that make Atascadero special. The City has a number of economic development opportunities, both in the short term and in the longer term that it can pursue to strengthen its local economy The City has been moving in several positive directions over a number of years, but needs to focus on completing key projects that will make a difference in the future of the City RETAIL AND DOWNTOWN DEVELOPMENT Much of the dollar-volume of retail leakage (sales lost to other communities), could be stemmed with the development of regional-serving retail centers at the Del Rio Rd interchange. The kind of"big box" development that would serve many of the needs of the community would be best located at this type of site. Once new regional centers are in place at Del Rio Rd., it may be possible to extend the commercial development further north along the west side of El Camino Real to serve other kinds of regional retail uses such as high end autos However, the community's desire for certain kinds of retail stores, such as quality apparel and fine dining establishments will not likely be served at this location. The Downtown would be the most desirable place to meet these kinds of needs but substantial additional progress is needed to transform Downtown into a vibrant shopping, entertainment and cultural center for the City The Colony Square project would be an enormous step toward this end. These are difficult times to move innovative projects forward but the City should continue its efforts to bring this project to fruition. Similarly, any possible efforts to move the renovation of the City Hall Rotunda forward would be critical to re-establishing Downtown as a civic center and a visitor attraction. The focus in Downtown on visitor attractions is a third mayor opportunity for the City to pursue. The additional spending power of visitors to the City could significantly boost the retail market in Downtown, which currently suffers from the extensive diffusion of retail development along the full length of El Camino Real through the City Visitors require attractions, which, in addition to the historical Rotunda and the Carlton Hotel, could come in the form of an arts colony coupled with additional entertainment opportunities at Stadium Park. The Art Walk has been quite successful in highlighting the widespread presence of fine artists in Atascadero The City needs to build a brand to promote this cultural quality and entertainment opportunity NOW Applied Development Economics,Inc. 1 23 ITEM NUMBER C-3 DATE. 02/24/09 (a) As used in this chapter, "meeting" includes any congregation of a majority of the members of a legislative body at the same time and place to hear, discuss, or deliberate upon any item that is within the subject matter jurisdiction of the legislative body or the local agency to which it pertains (b) Except as authorized pursuant to Section 54953, any use of direct communication, personal intermediaries, or technological devices that is employed by a majority of the members of the legislative body to develop a collective concurrence as to action to be taken on an item by the members of the legislative body is prohibited. (c) Nothing in this section shall impose the requirements of this chapter upon any of the following (1) Individual contacts or conversations between a member of a legislative body and any other person. (2) The attendance of a majority of the members of a legislative body at a conference or similar gathering open to the public that involves a discussion of issues of general interest to the public or to public agencies of the type represented by the legislative body, provided that a majority of the members do not discuss among themselves, other than as part of the scheduled program, business of a specified nature that is within the subject matter jurisdiction of the local agency Nothing in this paragraph is intended to allow members of the public free admission to a conference or similar gathering at which the organizers have required other participants or registrants to pay fees or charges as a condition of attendance. (3) The attendance of a majority of the members of a legislative body at an open and publicized meeting organized to address a topic of local community concern by a person or organization other than the local agency, provided that a majority of the members do not discuss among themselves, other than as part of the scheduled program, business of a specific nature that is within the subject matter jurisdiction of the legislative body of the local agency (4) The attendance of a majority of the members of a legislative body at an open and noticed meeting of another body of the local agency, or at an open and noticed meeting of a legislative body of another local agency, provided that a majority of the members do not discuss among themselves, other than as part of the scheduled meeting, business of a specific nature that is within the subject matter jurisdiction of the legislative body of the local agency (5) The attendance of a majority of the members of a legislative body at a purely social or ceremonial occasion, provided that a majority of the members do not discuss among themselves business of a specific nature that is within the subject matter jurisdiction of the legislative body of the local agency (6) The attendance of a majority of the members of a legislative body at an open and noticed meeting of a standing committee of that body, provided that the members of the legislative body who are not members of the standing committee attend only as observers 122 Robles,the extent to which Atascadero can draw wine-related business activity into town will help sell the community as an integral part of the wine country AN INCUBATOR OF INNOVATIVE INDUSTRIES In addition to retail and professional services, a community needs to provide jobs for its workforce. The Atascadero State Hospital serves as a major employer in the City, but no other sites in the City can support another employer of that scale. However, the City can create other assets attractive to business, including access to mayor broadband facilities, a well educated workforce, and a business climate supportive of innovative industries New business opportunities are emerging on a number of fronts as investments are made in energy efficient technologies, alternative energy sources, new communications technologies and other environmentally responsive products and services. Atascadero is in a position to support small business development in these fields that tie into broader markets globally as well and throughout the Countv A cornerstone in the foundation of innovative infrastructure could be a technical training institute. Such a facility could be an attractive business asset as well as helping the City and regional labor force to stay at the forefront of technological capabilities. These opportunities and recommendations form the basis of this economic strategy's goals and objectives. The action plan (to be completed upon approval of economic development goals) will outline in greater detail the specific initiatives that would help make these opportunities a reality VOW Applied Development Economics, Inc. 3 25 ITEM NUMBER. C-3 DATE. 02/24/09 CONCLUSION Setting up a personal website or blog to be a one-way sharing of information with no comments from readers avoid some of the issues, but not all of the potential problems arising out of a blog or site Eliminating comments would mean that there could not be active development of concurrence on the site Thus, the site itself would not create the same Brown Act, Public Records Act, or First Amendment issues as if comments were allowed However, even with comments disabled, there could be Due Process/bias issues, the same collective concurrence issues that arise out of use of email, and the potential for Public Records Act, First Amendment, and breach of confidentiality issues Should any Council Member or Commission decide to engage in blogging or operating a personal website, caution should be taken and the blog or website should be limited to the posting of factual information in an information-only setting where no comments are allowed While this will not resolve all possible issues, it will at least decrease the risk of a legal problem FISCAL IMPACT No Fiscal Impact. ALTERNATIVES 1 Take no action ATTACHMENTS 1 California Government Code Sections 54952, 54952.2 and 54953 2 Paper on Ralph M Brown Act "California Open Meeting Laws" 2007 City Attorney Spring Conference by Sacramento City Attorney Eileen Monaghan Teichert, pages 6-7 3 Paper by City Attorneys Natalie West and Michael Jenkins on email issues and tips for avoiding problems with use of email, November 2003 4 Opinion of California Attorney General No 00-906 issued February 20, 2001 on local public agency use of emails 5 Draft Council Norms and Procedures 2009 120 ILINTRODUCTION Atascadero's current Economic Development Strategy was adopted in 2003 The purpose of that document, developed internally by the City, was to provide a framework for making decisions related to the allocation of economic development resources and to improve coordination among the many City Departments and external organizations involved in economic development activities The 2003 economic development strategy consisted of four mayor program components: business development; community image and promotion, community revitalization, and, economic development partnerships. The City's intent was to update that economic strategy every five years In 2007, the City Council authorized the City Manager to begin the process of updating the economic development strategy and allocated funds for that purpose. In April 2008 after an extensive selection process, the City Council chose Applied Development Economics to prepare the economic development strategic plan. A. PURPOSE - WHY ECONOMIC DEVELOPMENT? Economic development is but one of several tools that the City has for helping it achieve its broader community goals. Other tools include the General Plan and Zoning Ordinance, the Redevelopment Agency Implementation Plan, the Capital Improvement Plan among others. The Economic Development Strategy is distinguished by its focus on improving the city's economic vitality Due to the inter- relatedness of these plans, it is important that each supports the other VITAL CYCLE The vital cycle is a way of describing the inter-dependence of a community's economy and its quality of life. Wealth generated by successful businesses is available to support community programs and services, including public safety, recreation, roadways, and education. In turn, a community's quality of life, as manifested in the quality of its infrastructure, neighborhoods, schools, parks, libraries, safety, and commercial core attracts further investment by business. Though every community is unique, there are four major reasons for economic development that are common across all communities. These include enhancing quality of life; providing career opportunities through quality jobs; providing a supportive environment for business to succeed so that they provide goods and services desired by residents; and,to provide resources that can be tapped by the public sector to pay for public services. Applied Development Economics,Inc. 5 27 ITEM NUMBER C-3 DATE. 02/24/09 It is important to remember that a collective concurrence can occur by use of these technologies even if the initial poster never intended to come to a collective concurrence or otherwise violate the Brown Act. With respect to a personal website or blog, if the official posted thoughts or opinions on an issue, or in the case of a blog that allows commentary by readers, if one or more other members of the body weighed in on an issue posted by the blogger, a collective concurrence could be reached on the website In addition and as hypothesized above, even the posting of "pure facts" can be done in a way that could lead to a reasonable conclusion as to the poster's stance on an issue Given that the poster cannot control who sees the contents of the website or blog, the chance for a Brown Act violation based on internet content is very real E Websites, Blogging and Other Legal The subject of personal websites, biogs, and how they may affect City functioning faces all public agencies At the City Attorneys Conference of the League of California Cities in 2008 , a panel discussion was held at which city attorneys from across the state raised potential issues and problems arising out of the use of biogs by officials, by municipal staffs, and "official" blogs on which cities might post information to supplement their posted agenda packets While there are as yet no California decisions or specific laws or regulations giving guidance as to the intersection of posting content on the internet and a public official's duties to his constituents, the following issues should be considered 1 Due Process/Appearance of Bias Statements by a public official posted on a website may be used by a person opposed to the position taken by the public official as evidence of bias or prejudgment on the part of a public official With respect to a personal website or blog, even if all that is posted by the official are facts of applications coming before the body and results of the body's decisions, it is conceivable that disaffected individuals could claim that the manner in which news is posted shows a bias For example, even if the public official posts on a website only factual information, an individual may claim that the public official is only posting facts favorable, or unfavorable, to project which is evidence that the official is biased and has prejudged the project before the project comes to the Council for a decision as an agenda item 2 Brown Act/Public Comment While the major Brown Act issue with personal websites and biogs is collective concurrence, if a site is open to public comment, the nature of the site becomes one where commentators are giving thoughts directly to the official The official might take those comments into account when making decisions on items before the Council or Commission on which the official sits However, the comments are not being made in 118 FISCAL BENEFITS Cities in California have few options for raising the revenues they need to provide the level of services expected by their residents. A mayor focus of most economic development strategies is to ensure the continued health of the retail sector and commercial, industrial, and residential property valuations The City's economic base provides important benefits in terms of helping to fund municipal services for its residents. Residential and non-residential land uses provide different levels of local tax revenues and also exert differing demands for City services. The two main revenues that cities depend on are the property tax and the sales tax. Residential uses tend to generate more property taxes while commercial uses are the primary source of sales taxes. As shown in Figure 1, residential uses, including both single and multi-family units, are estimated to create about $115 million in revenue for Atascadero, about two-thirds of which are property taxes. (See Appendix A for the derivation of the figures discussed in this section) Commercial uses, mainly retail and service commercial, generate an estimated $5 9 million per year, of which $4.2 million is sales tax. Industrial uses generate a relatively small amount of property tax, while lodging facilities generate Transient Occupancy Taxes (TOT) totaling about $700,000 of the nearly$800,00 generated by this land use annually FIGURE 1 TOTAL ANNUAL GENERAL FUND REVENUE IN ATASCADERO BY LAND USE $12,000,000 $10,000,000 $9,947,178 4 $8,000,000 $6,000,000 $5,930,596 E-M, $4,000,000 — — --- $2,000,000 W $793'874 $165,916 Single Family Multi-Family Commercial Industrial Lodging Land Use Source:ADE,Inc. �r Applied Development Economics, Inc. 7 29 ITEM NUMBER C -3 DATE. 02/24/09 3 Does the use of a personal website or blog create other legal issues for 1 the Commission or Council on which the blog user sits? Yes Bloggers and personal website users usually share their opinions on matters Internet postings by a Commissioner or Council Member prior to a hearing on a matter could be viewed as evidence of bias or predetermination of a matter Even where opinions are not shared, the mere decision of what information to post on a personal website or blog — i e , what matters to discuss — could be evidence of a Member's or Commissioner's opinions on a matter If a website or blog is viewed as an "official" forum for exchanges with the public, then public comments on items will be subject to First Amendment protections, but may also be implicated in Public Records Act requests, in the need for disclosure of ex parte communications, and the need for a formal response to CEQA-related comments In all these matters, it is the way in which an individual personal website or blog is used, and not the mere act of posting something to the internet, that creates potential legal issues See further discussion in Section E, below C Personal Website or Blog A personal website is a portal on the internet, usually hosted by an individual from his or her home computer, and on which the individual posts information, thoughts, and other content (e g , photos or movies) relevant or important to the individual A blog is a website, usually hosted by a company that obtains ad revenue every time a page is viewed ' Three major blog-hosting companies are WordPress, Blogspot, and Blogger The nature of an individual blog (short for "web log") is found in the long version of the name It is a "log" of an individual's thoughts and other information provided by that individual, which log is available on the "web" (internet) In both personal websites and blogs, the only limit to the content of the website comes from the individual -- what does the individual want the world to read? In the case of a Council Member or Commissioner, a simple way of looking at the potential content divides that content up into three categories (1) information about City matters, (2) the official's opinions on such matters, and (3) information not related to City matters The third set of thoughts would not have any bearing on City business The first set — information provided without comment or opinion — would be qualitatively different than the second —opinion — as discussed further below As for structure of personal websites and blogs, they generally run one of two ways 2 In one type of site, the poster/blogger posts thoughts or opinions and allows readers to comment on those opinions In the other type, the poster/blogger posts thoughts or opinions but comments are not allowed Where comments are allowed, they may be Some blogs are hosted by individuals or organizations on computers/servers that they own and maintain themselves. The vast majority of blogs, however, are hosted by these types of for-profit companies 2 This is a simplistic analysis, of course. There are myriad ways that blogs may be structured, but for the purpose of reviewing the legal implications of blogs, the key issues are (1) whether opinion or just facts are posted and (2) whether comments are allowed or not. 116 FIGURE 3 NET FISCAL IMPACT $5,000,000 $4,000,000 $3,975,186 -- $3,000,000 $2,000,000 L $1,000,000 0 $7,312 In $0 _. — _ Commercial Industrial Lodging -$1,000,000 — -$2,000,000 -$3,000,000 -$4,000,000 3,61 Land Use Source:ADE,Inc. B PROCESS AND PUBLIC INPUT Success in implementing an economic strategy is a direct result of the planning process design. From the outset, it was understood that to be successful,this process would have to involve the whole community, including businesses, residents and community leaders To achieve this level of participation,the process was built around a multitude of ways to engage the public, including a web site devoted entirely to the economic planning process The other means of engaging the public included interviews with community and business leaders, focus groups with businesses, a household retail shopping survey, a public forum and at least four City Council meetings where interim findings were presented (see Figure 4 for overall project process and timeline) %VOW Applied Development Economics, Inc. 9 31 ITEM NUMBER. C-3 DATE 02/24/09 It is important to note that a collective concurrence can occur by email even if the participants did not intend to come to a collective concurrence or otherwise violate the Brown Act. In the case of Wolfe v. City of Fremont (2006) 144 Cal.App 4th 533, a city resident appealed dismissal of his suit alleging that private City Council discussions violated the Brown Act. The Court held that individual discussions between Council Members that turn into a serial meeting undertaken to reach a collective concurrence violate the Brown Act The Wolfe Court states(144 Ca. App 4th 533, 546) "This is not to imply that serial meetings between a city official and individual members of the city council can never lead to a violation of the Brown Act, but more than mere policy-related informational exchanges are required before such a violation will occur Under section 54952.2, subdivision (b), the Brown Act is violated by such serial meetings only if (1) the city official acts as a `personal intermediary' for council members during the course of such meetings and (2) the meetings are used by a majority of the legislative body to develop a `collective concurrence' regarding a matter of interest." With respect to email use, the technology — email — can act as the intermediary through which the Council develops collective concurrence The sending of thoughts on a matter through email is most troublesome because the sender loses the ability to control the scope of persons with whom the recipient shares the email In this way, an email intended for one person may ultimately reveal the opinions of the sender to multiple people — perhaps enough to establish a collective concurrence F The Brown Act is Liberally Construed to Accomplish its Purposes , Email can potentially be used to develop a collective concurrence Covered officials should remember that in construing the language of the act, courts are instructed that "the Brown Act is a remedial statute that must be construed liberally so as to accomplish its purpose " Wolfe v City of Fremont (2006) 144 Cal.App 4th 533, 545 (citing Epstein v Hollywood Entertainment Dist. II Bus Improvement Dist., 87 Cal.App 4th 862, 869) As noted above, serial meetings which constitute deliberations or result in a collective concurrence of a majority of a body are not permitted under the Brown Act. And courts must liberally construe the terms "serial meeting," "deliberation" and "collective concurrence " The court in Wolfe defines the term deliberations as a "discussion of matters leading to a decision" This is a broad construction of the term, as opposed to a narrow one in which deliberations would only be considered formal discussions by a decision-making body sitting as a body G Attachments Attachment 1 is a copy of pertinent provisions of the California Government Code Sections cited in this Report. Attachment 2 is a copy of an excerpt from the paper entitled Ralph M Brown Act "California Open Meeting Laws" 2007 City Attorney Spring Conference by Sacramento City Attorney Eileen Monaghan Teichert, pages 6-7 The paper refers (page 6-7) to serial meetings, emails and collective concurrence and also cites an Attorney General Opinion which we have included with this report as Attachment 4 114 III. ECONOMIC OPPORTUNITIES A. RETAIL MARKET ANALYSIS The retail market analysis in this section estimates the local demand for retail goods, and compares this to the sales patterns by types of retail stores in Atascadero This information provides a baseline estimate of how the community's stores currently attract local and regional retail spending It identifies what store groups make up Atascadero's strongest retail sales generators, and which categories have shortcomings that can potentially be addressed with new retail store attraction. The results of the retail analysis indicate that Atascadero has a larger and more diverse retail base than generally thought. Atascadero has been perceived as a retail market that loses much of its spending support to neighboring communities that have a more regionally oriented retail base, such as San Luis Obispo and Paso Robles. The results from the household survey indicate a strong perception by local residents that Atascadero does not meet many retail needs. ADE's analysis indicates that Atascadero has one of the lowest per capita taxable sales levels in the County, lower than every other city except Grover Beach, and lower than the County average by nearly 13 percent. In particular, the City is losing significant *ftW sales in the apparel and general merchandise categories (which includes department stores, discount centers, warehouse clubs) In addition,the City's auto sales sector has been weakened by the loss of the Ford dealership and the City will see a significant downturn in this sector going forward. The current recession will also affect one of the City's strong retail sectors —home improvements. The City's building materials sector has done well at attracting construction materials sales as well as household expenditures, but the downturn in the housing market will certainly affect sales over the next couple of years. The City does have some retail strengths from which to build. Although per capita household taxable sales are low, non-taxable sales of groceries and prescription drugs are high. This suggests that the City attracts shoppers from the surrounding unincorporated communities for local-serving items. In addition, as a crossroads of two state highways, the City picks up a share of visitor spending. The San Luis Obispo Economic Vitality Corporation recently released a countywide study of tourism which indicated that total visitor taxable retail spending in the County was about $535 million in 2007 This would represent about 18 percent of total spending in the County In the North Inland County area, spending of this type is estimated at about $94 million. Some of this spending occurs in Atascadero as evidenced by high sales of gasoline, fast food and some specialty retail items. *la wr Applied Development Economics,Inc. I 33 ITEM NUMBER: C-3 DATE. 02/24/09 the Brown Act applies to serial communications, including email and group communications. B Common Questions 1 What is a serial meeting under the Brown Act? The term "serial meeting" does not appear in the Brown Act. However, the Courts have interpreted the Brown Act to prohibit serial meetings A "serial meeting" takes place under the Brown Act if, outside of noticed public meeting, there are a series of communications, such as in person meetings, telephone calls, emails, other communication methods, or a combination thereof, in which a quorum of the body ultimately engages in deliberations or reaches a collective concurrence However, mere information exchanges do not constitute a serial meeting and are permitted 2 How can emails create a serial meeting under the Brown Act? An exchange of informational emails is allowed under the Brown Act. However, emails that constitute deliberations or result in a collective concurrence of a majority of the legislative body would constitute a serial meeting which is not allowed by the Brown Act. Deliberation as well as action must occur openly in noticed public meeting C Legislative Meetings The Brown Act requires that any"meetings of the legislative body of a local agency shall be open and public, and all persons shall be permitted to attend any meeting of the legislative body" (Government Code § 54953(a)) For purposes of the Act, "legislative body" includes appointed commissions. (Government Code § 54952(b)) The purpose behind the Brown Act, as originally adopted and as it remains today, is to make sure that actions of public agencies and their deliberations are taken in open and public meetings where all persons are permitted to attend The courts have construed the Brown Act liberally and in favor of openness Under the Act, a "meeting" includes any use of direct communication, personal intermediaries, or technological devices which are employed by a majority of the members of the legislative body to develop a collective concurrence Government Code § 54952.2(b) Direct communication includes conversations at events and even conversations between Council Members or Commission Members at the supermarket. Personal intermediaries can include any intermediary, from the City Manager to a receptionist to a Commission Member's spouse Technological devices include phones, computers (including email, chat rooms, instant messaging, and other types of communication), fax machines, or any other device used to convey information and opinions between Council or Commission Members D Serial Meetings A serial meeting can occur in two primary ways "chain" and "hub-and-spoke" communication. A chain communication occurs when member A contacts member B, 112 already anchored by large-scale retail stores such as Target and Wal-mart that draw spending away from Atascadero In contrast, most of the Atascadero shopping centers feature much smaller spaces and the retail mix in general includes smaller types of businesses, which makes it more difficult to offer an attractive price and product selection. In San Luis Obispo, numerous shopping centers are located adjacent to Highway 101, and together create a regional shopping destination that draws shoppers from many miles around. These centers include the 650,000 square-foot San Luis Obispo Marketplace, the 250,000 square-foot San Luis Obispo Promenade, and the 316,000 square-foot Madonna Plaza Shopping Center Each of these centers is anchored by a large-scale department store or discount store that supports numerous secondary anchors and specialty stores Taxable Sales Performance Comparison Compared to other communities in San Luis Obispo County, Atascadero has per capita retail sales that rank below the countywide average, as shown in Table 1 In 2007, Atascadero's taxable retail sales averaged about $9,900 per resident, while the county as a whole generated per capita taxable retail sales of over $11,300 By comparison, San Luis Obispo, Pismo Beach, and neighboring Paso Robles each generate around $20,000 in taxable retail sales per resident. NOW TABLE 1 COMPARISON OF PER CAPITA TAXABLE RETAIL SALES, 2007 Per Capita Taxable City or Town Retail Sales San Luis Obispo $23,765 Pismo Beach $21,446 Paso Robles $19,671 Arroyo Grande $15,821 Morro Bay $11,419 Atascadero $9,882 Grover Beach $5,577 San Luis Obispo County $11,342 Source:ADE,Inc.,data from California Department of Finance and Board of Equalization. Notes:Per capita calculations are based on comparison of taxable retail store sales with household population. Taxable sales does not include sales for nontaxable items such as prescription drugs and groceries. In addition,the data for retail sales excludes some store categories such as building materials dealers that are included in the retail market analysis elsewhere in this report. LOCAL RETAIL SPENDING Based on data from ADE's retail demand model, the estimated annual retail spending by Atascadero households is about $232 million, as shown in Table 2 It should be Applied Development Economics, Inc. 13 35 City of Atascadero Mission Statement The City of Atascadero is committed to building community by fostering an outstanding quality of life with excellent public service, stewardship of the environment, preservation of our heritage and promotion of economic prosperity Draft developed during City Council Strategic Planning Workshop January 28-29,2009 110 by Atascadero residents totals $42 million annually with department/discount stores accounting for the majority of the demand. Other Retail Groups Atascadero households spend $10 million at apparel stores These stores include men's and women's clothing, family clothing, and shoe stores. Demand in this category can range from high end designer stores, to discount clothiers and other specialty clothing stores. Atascadero households spend nearly $16 million at specialty retail stores This category is the most varied retail group, and includes store types such as gift stores, florists, photographic equipment, sporting goods, jewelry, office supplies, books, music, pet stores, toys, and stationery The building materials and home furnishings group includes all types of home improvement stores such as hardware stores, home centers, garden supply stores, and paint/wallpaper stores. In addition, the group includes furniture stores, home furnishings, used merchandise, electronics, and appliances. Total household demand in this category is about $25 million, however, demand in this category also includes large proportions of business-to-business sales. ATASCADERO RETAIL SALES Sales tax data from the State Board of Equalization was used to calculate the retail store sales by store category for the City of Atascadero The City provided an audited record of this data, from which ADE estimated the taxable retail sales. After adjusting the sales tax data to account for nontaxable item sales, the 2007 retail sales by businesses in the City of Atascadero totaled approximately$338 million. Atascadero's retail sales are dominated by food stores, building materials/home improvement, and automotive businesses. Each of these categories generate over $80 million in annual sales, and together make up 81 percent of the total retail sales in Atascadero Findings for retail sales by major store group are summarized below Food Store and Eating Place Group Atascadero has a total of 79 establishments in this group, 67 of which are restaurants and food service establishments The overall sales in this category total $89 million. The majority of these sales come from grocery stores, with $52 million in estimated sales.'Restaurants and other food services account for another$34 million in sales. N%W Z The sales total includes an estimate for nontaxable item sales such as groceries and prescription drugs. Applied Development Economics,Inc. 15 37 Notes 86 Applied Development Economics, Inc. 108 NOW: FIGURE 5 SALES LEAKAGES($MILLIONS) Automotive Group $219 Building Materials&Home Furnishings Group $71 Food,Eating,&Drinking Group $13.3 i Specialty Retail Group $6.1 i General Merchandise Group $2218 Apparel Store Group $7. $0.0 $50 $100 $15 0 $20.0 $25.0 Source:ADE,Inc. In general, Atascadero is a regional provider for food-related retail stores, home improvement stores, and gasoline stations. These retail groups generate sales that far exceed the local market spending, and reflect specific market conditions that benefit Atascadero Concurrently, Atascadero generates a net retail leakage of local spending in general merchandise stores and apparel stores. Findings by retail group are summarized below Apparel Stores Based on data from the retail model, sales data, and household survey data, ADE estimates that the apparel stores in Atascadero capture approximately $2 million in spending from Atascadero residents This results in a net capture of$17 million in retail spending from outside of Atascadero, and a leakage of nearly $8 million of spending by Atascadero residents that leaves the city With the high concentration of apparel stores in Paso Robles and San Luis Obispo, this trend will likely continue without a significant upgrade in the local offerings by Atascadero retailers. General Merchandise Group Stores in the general merchandise category show more of_a mixed trend, with an overall net leakage of local spending. Atascadero residents account for $19 million of the $36 million in total general merchandise store sales. This means that Atascadero stores in this category are capturing $16.6 million from non-Atascadero residents but losing nearly$23 million in retail leakage to other communities The net capture largely comes from drug stores, which retains a high proportion of local household Applied Development Economics, Inc. 17 39 Small Group Discussion Procedure Each table to select one discussion facilitator and one recorder Each person will take 5 minutes to answer questions for themselves. (One pad of paper is provided on each table for recorder and anyone who needs extra space for writing) . At the end of 5 minutes the table facilitator asks each person, one at a time,to share their ideas. Remember Be respectful of each others'opinions and feelings Only one person speaks at a time There is no such thine as a wrong opinion . Once everyone has contributed their ideas,group facilitator works with group get top three ideas. . For question#1 (i.e The first group session),get top three ideas for each category-retail, tourism, jobs.To do this, can group similar ideas into broader category or rank ideas based on voting. For question#Z(i.e The second group session), select top three goal.statements.This will require some discussion and some give and take. . When it is time to report back to the whole group,be concise and brief Report only top three ideas for each question Be as succinct as possible so that more people have the op- portunity to contribute. Question #1 (Firsi Croup Session) Question #2 (Second Group Session) Discuss types of economic development . Formulate goal statements for economic you would like to see in Atascadero, development. • Retail Development-What store . Please rank your goal statements from types?Where? most important to least important. Tourism What attractions /ser f vices? t Job Producing Industries What in- dustries? 84 Applied Development Economics,Inc. 106 *Ow" activity As a whole, stores in this retail group have a net capture of more than$64 million, nearly all of which is due to the high sales from home improvement stores Much of this high net capture of regional sales comes from the large amount of business-to-business sales to contractors, home builders, and other professionals. Furniture/home furnishings stores generated a retail leakage, while electronics and appliance stores had a net capture of sales. Automotive Group The automotive group generated a net capture of sales Much of this net capture comes from the very high concentration of sales in gasoline stations. Gas stations in Atascadero serve travelers along Highway 101, as well as business-to-business transactions. Atascadero also generates net capture of retail sales from used car dealerships, other vehicle dealers, and auto parts stores. The glaring weakness with auto-related businesses is in new car dealerships, where the local household demand well exceeds the sales KEY RETAIL ISSUES Atascadero generates a sizable amount of retail trade. The city has specific strengths as well as numerous weaknesses, but on the whole Atascadero's retail sector is actually performing better than the perception among residents of its retail stores. The following issues address existing shortcomings in Atascadero's retail sector, the opportunities for commercial growth as well as competitive challenges that Atascadero needs to address in order to potentially enhance its retail market position. The economic data indicates that Atascadero's retail store sales exceed the total household consumer spending generated by local households. Yet,the survey data indicates that local residents do not hold the local shopping opportunities in high regard, and this is reflected in how they assessed their own shopping habits. The retail sales trends imply that Atascadero residents shop locally more often than they think.' The largest source of retail sales revenue is tied to building materials and home improvement businesses, followed by drug stores and grocery stores. These activities generate significant revenue, but do not contribute particularly to the perception of Atascadero as a shopping destination. The types of retail stores that can shape a community into an upscale shopping destination are largely absent from Atascadero The community does not have any traditional department stores, has a very limited selection of apparel stores, only has K Mart as a large-scale general merchandise provider, has many specialty retail categories with unmet demand, has a limited selection of automobile dealerships, and the restaurant selection is primarily take out and middle market restaurants. 'The household survey asked respondents to estimate the percentage of shopping trips that occur within Atascadero,and the percentage of trips that go elsewhere.The survey did not ask respondents to keep a diary or otherwise track their spending patterns over time. Applied Development Economics,Inc. 79 41 A% .h<3r4^nebi'..ac.Mv.< 3's. r .r+.� w Findings Economic.Development in Atascadero would involve an integrated approach,combining strategies to increase job-producing businesses as well as retail development and tourism. i,: Tcuri5,m Based on the completed studies,there are opportunities for new or.expanded retailers in the following categories. 82 Applied Development Economics,Inc. 104 ,,• locations and are not in Atascadero itself This does not motivate visitors to stay at lodging facilities in Atascadero Atascadero has 3 7 percent of rooms in San Luis Obispo County but only 2 percent of revenues. It could generate an additional $3 million in annual lodging revenues if it could achieve a proportional share of revenue. Compared to the County as whole, the City does have a favorable preponderance of branded lodging facilities and relatively larger facilities. Both of these characteristics tend to increase the availability and funding for marketing channels However, in order to better support the lodging sector in the City, Atascadero needs to consider developing more attractions, which may include special events, art and culture, dining, shopping, etc. The City may also consider supporting the development of additional physical facilities as attractions such as an equestrian center that would draw a specific segment of patrons into the City Considering Atascadero's position in the marketplace for tourism, some issues to be addressed include the following: Strengths ■ Location in the center of the county with good transportation access in all directions. • Numerous existing special events ■ Substantial tourism promotion infrastructure in place with the Tourism Promotion Committee, the Chamber of Commerce and the Main Street organizations ■ Historical assets and distinctive architecture ■ Proximity to wine country ■ Existing lodging facilities provide good value. Weaknesses ■ Limited attractions relegates City to overflow destination • Downtown suffers from a lack of tourist oriented activities • Atascadero's existing brand has not been adequately promoted and has limited identity in the marketplace Opportunities ■ Continued revitalization of the Downtown area ■ Branded niche destination to attract visitors already patronizing other areas of the County ■ Equestrian connection could provide a distinct identity to Atascadero ■ Eagle Ranch could provide additional outdoor attractions Threats ■ It is critical for Atascadero to develop a defendable niche position as a viable tourist destination to address competition from surrounding localities. Applied Development Economics, Inc. 21 43 w; `u� ,._ `*"`�' } s `tea , •c k� �" �'� 1�3 3 . If 011 ,,,�,aha: City Council Mernbers City Staff Mayor Mike BrennLer Wade McKinney,City Manager Mayor Pro Tem Ellen Beraud Jim Lewis,Assistant City Manager Council Member Jerry Clay, Sr Lisa Cava,Administrative Assistant Council Member George Luna Council Member Tom O'Malley Workshop Facilitators ADE pity Staff Doug Svensson,ACCP Jim.Lewis,Assistant City Manager Kathie Studwell,AICP Meredith Wesson, Personnel Analyst Iry Hamilton,Placemaking Group Lisa Cava,Administrative Assistant Courtney Jones, Recreation Coordinator Jim Campana,Maintenance Political Science StUdents - Cai Poly San Luis Obispo From Professor Mike Latner's class: Mercy Faith Kimbwala George Shoemaker Danielle Ferrin „aMMM'r 80 Applied Development Economics, Inc. 102 Now, Construction The second-largest category of employers consisted of 163 firms engaged in construction activities, including construction of buildings, public works, and specialty trade contractors. This sector employs 877 workers and has a payroll of slightly over $9 1 million. Included in this sector are 100 specialty trade contractors that employ over 500 workers and have a payroll of$36 0 million. Manufacturing, Wholesale Trade and Transportation The manufacturing, wholesale trade and transportation sectors were combined for this analysis because they tend to require similar locations and site amenities Together, these sectors include 57 establishments that employ 440 workers and have a payroll of over $16 0 million. Three of the manufacturers' process food and beverages, 9 are manufacturers of metal products and machinery and 5 provide printing services Retail Trade The retail trade sector consists of 103 establishments, such as food, drug and hardware stores, thrift shops, gas stations and car dealerships As noted in the retail analysis, in addition to capturing local spending, these stores also capture a large amount of spending by non-residents. This sector employs over 1,300 workers and has a payroll of$34 4 million. While retail has 15 percent of all local Jobs, it accounts for 12 percent of total payroll. The average wage in the retail sector was $25,500 .r Information The information sector includes firms engaged in publishing, broadcasting, data processing, motion picture and telecommunications activities. Information has been one of the fastest growing sectors in the U.S economy Within Atascadero, however, it comprises only 1 percent of employers, total employment, and payroll. The average wage in this sector is nearly$35,000 Finance and Real Estate The finance and real estate sectors primarily serve the local community and include banks, investment brokerages, insurance carriers, real estate brokers, and leasing agents. These sectors together comprise 8 percent of all establishments, and between 4 and 5 percent of workers and payroll. About 380 people are employed in about 70 establishments that have a payroll of$14 8 million. Management, Professional Services, Administrative Support These sectors tend to provide high paying Job opportunities. The management, professional services, administrative support, and non-profit sectors were combined for this analysis because they all tend to locate in office buildings with similar amenities These sectors together comprise 131 establishments that employ about 770 workers and have a payroll of$126.5 million. Though these sectors account for less than 10 percent of all Jobs in Atascadero, they account for over 43 percent of total payroll. The Now average annual wage is about $165,000 Applied Development Economics, Inc. 23 45 ,"low "This page intentionally left blank" 78 Applied Development Economics, Inc. 100 `A"" SAN LUIS OBISPO ECONOMIC BASE ANALYSIS Recent County Employment Trends In 2007, employment in San Luis Obispo (SLO) County totaled 109,100 fobs' This represents an increase of 6 8 percent over 2001 employment levels This is significant considering that, over the same period, the bordering coastal counties of Santa Barbara and Monterey only experienced increases of 5 4 percent and 16 percent respectively During that time, California as a whole only increased by 3 8 percent. As shown in Table 4 below, over one-fifth of SLO County's total employment is attributable to the public sector This includes institutions such as the California Polytechnic State University, Atascadero State Hospital and various local governmental bodies. In fact, eight of the top ten employers in the county fall within the public sector' This raises a serious concern not only for the County but for Atascadero, many of whose residents are employed by government. The recession is affecting tax revenues at all levels of government and has triggered substantial lay-offs and work furloughs for many government agencies. This is exacerbated by the State Budget stalemate that even as of this writing in mid-February remains unresolved. The loss of employment and income in the government sector will have a major impact on household spending in Atascadero and will affect retail sales as well as so affect the City ability to fund services and to pursue economic development activities The balance of this analysis will focus on the 86,300 individuals employed in the private sector When excluding the public sector, the growth figures for the county through 2007 were even more impressive. In this case, SLO County's private sector employment increased by 8.7 percent versus 5 0 percent and 11 percent for the counties of Santa Barbara and Monterey respectively while California's private sector employment grew by only 3 6 percent. SLO County's industry mix and growth rates are shown in Table 4 below a California Employment Development Department 'As reported by the University of California,Santa Barbara,2008 San Luis Obispo County Economic Outlook.Of 'fir' the top 35 employers,17 were listed as either Public Administration or Public Education. Applied Development Economics, Inc. 25 47 Declining Economic Base Industries These industries, while more concentrated at the county-level than at the state-level, are losing traction in San Luis Obispo County Further, seven of the nine industries listed in this quadrant are losing jobs faster within the county than at a state level (those listed in italics) Four of these seven industries are showing signs of modest growth at a state-level (NAICS 115 Support Activities for Agriculture and Forestry added almost 14,000 fobs over the time period at the state-level) As noted above, these industries may be excellent candidates for business retention programs as a means of maintaining and strengthening the county's export base. TABLE C-4 DECLINING ECONOMIC BASE: SAN LUIS OBISPO COUNTY Industries 2006 Employment LQ Crop Production 1935 1.72 Animal Production 211 Ill Support Activities for Agriculture and Forestry 2151 1.89 Exception. Farm Management Services 347 5.11 Printing&Related Support Activities 669 1.74 Including Manifold Business Forms 395 28.69 Waste Management&Remediation 387 1.52 Heavy&Civil Engineering 733 1.22 Machinery Manufacturing 800 1.54 Including Semiconductor Machinery Mfg 118 3.2 Exceptions: Farm Machinery 25 1.38 Metalworking Machinery 129 1.45 Cutting Tool&Machine Tool 111 973 �Mlry All Other Misc.General Purpose Machinery Mfg. 293 2.4 Source:ADE,Inc.,IMPLAN Declining Non-Economic Base Industries The industries in this quadrant are those for which the study region has no comparative advantage evidenced by the consistent year-over year decline in employment figures Most notably, eleven manufacturing industries are listed in this quadrant accounting for 1,309 lost fobs. 76 Applied Development Economics,Inc. 98 r•i CLUSTERS OF OPPORTUNITY A useful tool for better understanding a region's economy is through the use of clusters Clustering is an analytical tool for understanding a regional economy It is also a useful organizing and engagement tool. As an analytical tool, the cluster methodology allows the analyst and their clients to better understand the structure of their regional economy, to see the linkages between industries. Further exploration through either interviews or input-output analysis, or both, allows for an understanding of the buyer-supplier relationships between industries. As an organizing and engagement tool, the cluster methodology allows firms within a cluster to identify their common competitiveness issues, develop a strategic action plan, and collaborate to jointly resolve those issues. Cluster organizations provide their member firms a voice in the development of policies and programs related to workforce development, land use permitting, infrastructure development, research and technology, and entrepreneurship support services. This analysis of economic growth opportunities is based on 2006 employment data for San Luis Obispo County Together, these clusters employ a total of 36,619 workers, about 33 percent of total employment in all industries that year Figure 6, below illustrates the structure of an industry cluster Clusters are geographic concentrations of firms that share common markets, buyers, suppliers, and talent. Firms within clusters compete with each other in the same markets. Clusters include not only traded firms (that export their product or service), but also firms that supply goods and services to these exporters The role of the public sector is to support the growth and success of cluster members through investments in education, research and technology, infrastructure and regulation. For instance, in the food and beverage Cluster, the exporting firms would include the wineries that sell their wines in other regions or to visitors from other regions. The wineries purchase barrels, stainless steel tanks,presses, grapes, water, and the expert services of master winemakers, design engineers, civil engineers, marketing professionals and wine distributors The public sector and private utilities provide roadways, internet, water, telephone, talented workers and new technologies in wine processing and grape cultivation. Each member plays a crucial role in the success of the whole cluster The greater the share of local suppliers, the greater the beneficial impact on the region. 14MW Applied Development Economics,Inc. 27 49 basic industries. Although a number of these industries returned a location quotient w above 1, it is unlikely that these products or services are exported outside the county to meet external demand. The following is a complete list of these 3-digit NAICS industries' ■ NAICS 442 Furniture and Home Furnishings Stores • NAICS 443 Electronics and Appliance Stores ■ NAICS 444 Building Material and Garden Equipment and Supplies Dealers • NAICS 445 Food and Beverage Stores ■ NAICS 446 Health and Personal Care Stores ■ NAICS 447 Gasoline Stations • NAICS 452. General Merchandise Stores • NAICS 485 Transit and Ground Passenger Transportation ■ NAICS 491 Postal Service • NAICS 492 Couriers and Messengers ■ NAICS 493 Warehousing and Storage ■ NAICS 561 Administrative and Support Services • NAICS 562. Waste Management and Remediation Services ■ NAICS 811 Repair and Maintenance • NAICS 812. Personal and Laundry Services ■ NAICS 814 Private Households Growing Economic Base Industries As noted above,the industries in the upper right quadrant represent the heart of the SLO County economy, growing industries with comparatively higher concentrations. s It should be noted that many tourism-related industries were included in the analysis as they are a special case whereby the good being exported `tourism"is consumed locally w ' 74 Applied Development Economics,Inc. 96 TABLE 5 SAN LUIS OBISPO COUNTY CLUSTERS OF OPPORTUNITY 2006 Employment Tourism and Hospitality 16,410 Food and Beverage 6,167 Construction 6,055 New Media Arts 2,948 Electronics 2,727 Alternative Energy 2,312 All Clusters 36,619 Source: ADE,Inc.,based on data from IMPLAN Tourism and Hospitality The tourism and hospitality cluster consists of lodging, restaurants, entertainment and recreation, sporting goods stores, and companies that arrange transportation services (see Table 6) Of all the opportunity areas, it is the largest, employing over 16,000 workers. The current economic recession, which began in the fourth quarter of 2008, will have a significant impact on this sector globally and will affect the broader San Luis Obispo economy until 2010 Latent demand for leisure travel combined with population growth and new spending will again drive growth in this sector at that time. The opportunity for Atascadero is to plan now for the renewed growth in tourism by carefully adding new visitor attractions that will help differentiate the City as a unique visitor destination. TABLE 6 COUNTY TOURISM &HOSPITALITY Industries 2006 Employment LQ Food Services&Drinking Places 10,275 148 Accommodation 3312 2.49 Amusement,Gambling&Recreation Industries 1215 1 12 Sporting Goods,Hobby,Book&Music Stores 1293 2.33 Performing Arts,Spectator Sports&Related Industries 190 046 Support Activities for Transportation 125 0.24 Source:ADE,Inc.,IMPLAN Food and Beverage San Luis Obispo's food and beverage industry employed over 6,000 workers in 2006 (see Table 7) This cluster includes food and beverage processing (mostly wine),farm machinery manufacturing, metal tanks (for fermenting and storing wine) ranching, vineyard and other farm employment and farm management services. The wine industry has a significant economic impact on the region's economy Over the next few years, growers will be planting more acreage in grapes to meet anticipated growth in demand worldwide. After that, the demand for additional processing capacity will increase. The opportunity for Atascadero is to make suitable sites available for wine processors, metal tank fabricators, offices for wine distributors and marketers and mow. Applied Development Economics,Inc. 29 51 notable regional presence and do not have growth prospects as strong as the industries in the other categories Employment concentration was determined using location quotient analysis. A location quotient for a particular industry is simply a ratio that compares the percentage of employment in a particular industry in a local economy (San Luis Obispo County) to the percentage of employment in the same industry in a reference economy (California) A location quotient greater than 1 indicates that the local share of employment in an industry exceeds the state share. Conversely, if a location quotient is less than 1, the local share of employment in an industry is less than the state share. The top two quadrants list those industries with location quotients above 1 which are said to have a high employment concentration. The bottom two quadrants list those industries with low employment concentrations and location quotients less than 1 In the right two quadrants, the growing industries are listed from highest employment gains to lowest employment gains. In the left two quadrants, the non-growing industries are listed from greatest decline to least decline. There are some .industries within the table listed in italics that denote relative rates of growth or decline compared to the state as a whole. As mentioned above, industries listed on the right-hand side-are those that are growing within the county However, an industry in the right two quadrants that is italicized indicates that that industry is growing more rapidly at the state level. That is, despite the positive growth signals at the county level, that particular industry is not keeping pace with statewide growth levels. Similarly, the industries on the left hand-side are declining within the county Those listed in italics on this side indicate that the rate of decline within the county is more severe than at a state-level. This could mean either that the industry is declining at both a county and state-level but declining faster at a county-level or that, at a state- level, the industry may actually be experiencing positive rates of growth. The results of the analysis at a 3-digit NAICS level are illustrated in the Table C-1 below 72 Applied Development Economics,Inc. 94 cluster employs almost 3,000 workers (Table 9) Within Atascadero, one component of this cluster, the information sector, employs 109 workers in 10 companies. This cluster has grown rapidly at the national and international level. Atascadero is particularly well-suited to capture its share of growth in this largely location-independent industry It is relatively close to Los Angeles, an historic hub of creativity, offers a high quality of life with abundant recreation opportunities, has relatively easy access to graduates of a top university in San Luis Obispo and offers competitively-priced office space. The opportunity for Atascadero is to promote those economic strengths that are most highly desired by this industry through a targeted marketing communications strategy In addition, Atascadero should consider supporting the formation of an industry cluster group that would work)ointly with the City, education and technology services, economic development organizations and others to build the concentration of firms locally TABLE 9 COUNTY NEW MEDIA ARTS Industries 2006 Employment LQ Printing&Related Support Activities 669 1.74 Telecommunications 396 0.55 Publishing Industries 483 0.76 Software Publishing 111 0.32 Data Processing,Hosting&Related Services 133 0.37 Audio&Video Equip.Mfg. 220 3.97 Motion Picture&Sound Recording Industries 352 0.36 *#AW Performing Arts,Spectator Sports&Related Industries 190 0.46 Computer System Design 505 0.41 Source:ADE,Inc.,IMPLAN Electronics The electronics cluster includes companies engaged in the manufacturing of computer and electronics products, machinery, plastics and rubber and fabricated metal products. Employment in this cluster overlaps with both the new media arts cluster and the food and beverage cluster The key industry drivers of this cluster are miscellaneous electrical equipment and components manufacturing and audio and video equipment manufacturing. This cluster employs about 2,700 workers countywide (Table 10) The opportunity for Atascadero is to promote those economic strengths that are most highly desired by this industry through a targeted marketing communications strategy Applied Development Economics,Inc. 31 53 Now Sales Leakages ($ Millions) Automotive Group $21, Building Materials&Home Furnishings Group $7 1 Food,Eating,&Drinking Group $13 3 Specialty Retail Groupal $6.1 General Merchandise Group $2 ,g Apparel Store Group _ $7.9 $00 $5.0 $10,0 $150 $200 $25.0 Percentage of Services Spending Staying in Atascadero Health Services 23.10 E i Professional Services 397% I Personal Services 65 % 0.0% 10.0% 200% 300% 400% 50.0% 600% 70.0% NOW 70 Applied Development Economics, Inc. 92 r City's industrially zoned properties are located along Traffic Way and Sycamore Road, in proximity to SR 41 as it enters the City from the east. Commercial Sites In 2004, the City Council adopted a Prime Commercial site map identifying 11 sites as vital to the City's economic health (Figure 7) Eight of these sites are currently developed and three are vacant. The most significant sites, labeled as #1 and #2 on the map, are the properties north and south of Del Rio Rd. A major retail center is proposed for these sites. Such a development would be important to help capture much of the retail sales leakage the City is currently experiencing, as well as helping to generate more traffic for the Mission Oaks center on the west side of El Camino Real. The City has also zoned the properties north of Del Rio and west of El Camino as commercial. There are 14 parcels in this area, ranging in size from less than half an acre up to nearly two acres. The entire area is approximately 18 acres. About half the parcels remain in residential use and about one-fourth are vacant. This area is included in the City's Redevelopment Project area, and is zoned Commercial Park (CPK), which is intended for large lot commercial and light manufacturing uses. If the Del Rio sites develop as a mayor retail center,then this area could be an excellent opportunity for the City to try to recapture some of the regional auto market, as well as consolidate existing dealers and auto services (auto dealers are allowed as a wr conditional use in the CPK zone) While the current industry trend in auto sales is toward consolidation of dealerships, especially American made cars, Atascadero could supplement its existing dealerships with high end specialty car sales to cater to the higher income households in Atascadero and North County Another side benefit of providing an alternate location for the existing dealers south of Downtown is to open up those sites for more intense mixed use development that would help to create more of a critical mass for downtown business and development. A secondary option for the northwest quadrant area of Del Rio Road and El Camino is a business park or light industrial development consistent with the existing zoning. The public input during this process has indicated that the City is interested in attracting technology firms, including those in the environmental and information sectors There are very few large sites for this sort of development although scattered development opportunities exist in other commercially zoned areas. In addition, the retail market analysis included in this study indicates that, with the possible exception of an auto center, the City does not need a mayor new retail location in addition to the Del Rio sites. Therefore, a business park/light industrial use would respond both to the interest of the City in developing more jobs and to the need to consolidate retail centers in the City into fewer nodes. Applied Development Economics,Inc. 33 55 GENDER Frequency Percent Valid Percent Cumulative Percent Female 1432 56.8 74.9 74.9 Male 466 18.5 244 99.2 A couple answered survey 15 0.6 0.8 100 Missing 610 24.2 Gender Missing,24 2 A couple answered survey, 0 6 Female, 56.8 Male, 18.5 Gender 1,600 1,400 1,200 1,000 800 Cr L 600 LL 400 200 0 Female Male A couple answered survey 68 Applied Development Economics,Inc. 90 fir+' FIGURE 7 ADOPTED PRIME COMMERCIAL SITES City Of A+ascader0 Prime Commercial Siler ., �.,. ��..... !-0�?TEB lV G.CC1D✓..1„q:.YlCN P t h <7`4 s ...++......... w.w ro. � v ^nt Source:ADE,Inc. E SWOT ANALYSIS ATASCADERO STRENGTHS, WEAKNESSES, OPPORTUNITIES, & THREATS An analysis of a community's economic strengths, weaknesses, opportunities and threats (SWOT) helps identify issues of critical importance to its current and future economic vitality Goals and implementation plans are developed to build on strengths and opportunities and ameliorate weaknesses and threats This SWOT analysis summarizes information gathered through quantitative analysis and through a thorough public outreach program consisting of a household survey, interviews with business and community leaders, focus group meetings and a public forum. Definitions for each element of the SWOT analysis are given below• • Strengths: Strengths are assets, tangible or intangible, that contribute to economic competitiveness and high quality of life. Applied Development Economics, Inc. 35 57 CITY RESIDENT Frequency Percent Valid Percent Cumulative Percent Yes 2,431 96.4 98.8 98.8 No 30 1.2 1.2 100 City Resident 3,000 2,500 2,431 2,000 c 1,500 Cr a� U. 1,000 500 30 0 Yes No DO YOU PURCHASE MOST HOUSEHOLD ITEMS? Frequency Percent Valid Percent Cumulative Percent Yes 2397 95 98 98 No 45 1.8 1.8 99.9 Share evenly 3 0.1 0.1 100 Do You Purchase Most Household Items? 3,000 i 2,397 2,500 I 2,000 { c I a� 1,500LL '-- L 1,000 500 I i 45 3 Yes No Share evenly 66 Applied Development Economics, Inc. 88 NOW, property, and build stately public buildings in the town center Some of those building are still standing but are not being used because of earthquake damage. The layout and structures add a unique charm to the town center The refurbished Carlton Hotel has improved the image of the downtown core and adds to the town's interest. High Household Incomes A high percentage of Atascadero residents are employed by government institutions which provide higher than average compensation. The UCSB forecast indicates that the median family income in Atascadero is higher than the county median. Higher household incomes could support a vibrant retail sector, but the community is faced with competitive challenges from other communities. Redevelopment Agency and Project Areas The City's Redevelopment Project Area includes large portions of the City's commercial districts, ranging from Santa Cruz Road in the north along El Camino Real to Palomar Avenue in the south. It also includes the industrial properties along Traffic Way and extends out Morro Road to Curbaril. In 2004, the agency issued $12.5 million in bonds Available Space for Expansion of Retail and Professional Services Atascadero has enough sites available for retail and professional office development. Prime sites for development in the near term include parcels at the intersection of Del Rio and El Camino Real, as well as further north on the west side of El Camino In addition, the Dove Creek site currently is proposed for a commercial development. The Morro Road area and the Downtown can support additional professional office development. Water Supply The Atascadero Mutual Water Company has started a process of increasing the Town's water supply Engaged Citizenry Atascadero has a well-informed and active citizenry that has helped to produce a whole range of community plans. These include the General Plan, the Downtown Revitalization Plan, an economic strategy and Redevelopment Project Plan, a Tourism Strategy and others WEAKNESSES Lack of Common Vision for Development Despite the significant investment of time and money into the development of various plans, many residents believe these plans are not being implemented. The perception among some residents and businesses is that the City lacks both a common vision and '*MW effective leadership As a result, some businesses have been reluctant to invest in Applied Development Economics,Inc. 37 59 Now SATISFACTION PARKING Frequency Percent Valid Percent Cumulative Percent Extremely Satisfied 371 147 15.3 15.3 Satisfied 1275 50.5 52.4 677 Neither 527 20.9 21.7 894 Dissatisfied 167 6.6 6.9 96.2 Extremely Dissatisfied 92 3.6 3.8 100 Missing 91 3.6 Satisfaction:Parking Extremely Extremely Dissatisfied,3 6 Missing,3 6 Satisfied, 14 7 Dissatisfied,6.6 Neither,20 9 Satisfied, 50 5 Satisfaction:Parking 1,400 1,200 u 1,000 800 Cr 600 L U. 400 - 200 0 Extremely Satisfied Neither Dissatisfied Extremely Missing Satisfied Dissatisfied 64 Applied Development Economics, Inc. 86 these firms succeed and require room for expansion, they will likely leave Atascadero for neighboring cities where appropriate space exists. Limited Air Services Growing businesses need to expand their markets domestically and internationally, requiring air travel. Recently, airlines have been cutting services to smaller, regional airports, such as the one in San Luis Obispo OPPORTUNITIES Growth of Location Independent Businesses due to Internet The nearly ubiquitous availability of internet service, including wireless, has made it possible for work to be located almost anywhere. More and more, workers can choose where they want to live irrespective of their place of work. This presents an opportunity for Atascadero as its attractive neighborhoods and proximity to the ocean, wineries, and other attractions provides a high quality of life not available in other areas Atascadero's opportunity is to leverage its quality of life to attract location-independent professionals. There are a few industries that have a large share of remote workers. These include media, publishing, marketing, and others Wine Processing and Tourism The growing popularity of wine within the United States and worldwide has created a large demand for land suitable for wine grapes The wine industry has a significant economic impact on the entire County As the local industry grows, it will have an increasing impact in terms of tourism and growth in associated wine making and grape growing suppliers. Atascadero's opportunity is to leverage its proximity to the wine industry by further developing its agri-tourism attractions, lodging and activities Arts Colony The beauty of the natural environment has attracted many artists to the community Lately, a few galleries have opened downtown. Promoting these artists and attracting additional artist to the area could stimulate the renewal of the downtown core. Increasing Retirees In 2006, the first of the baby-boom generation (those born between 1946- 1964) turned 60 beginning a two decade long bubble of retirees Atascadero's attractive neighborhoods and quiet lifestyle have already attracted many retirees. The opportunity is to connect these new retirees to growing businesses so as to ease the hardships in recruiting. Growing San Joaquin Valley Population The Central California Coast is a popular vacation destination and will continue to be in the future. The San Joaquin Valley's population is estimated to grow by another 5 4 rr million people over the next 4 decades. According to the Department of Finance, the Applied Development Economics, Inc. 39 61 SATISFACTION QUALITY Frequency Percent Valid Percent Cumulative Percent Extremely Satisfied 84 3.3 3.4 3.4 Satisfied 455 18 18.7 22.1 Neither 502 19.9 20.6 42.7 Dissatisfied 878 34.8 36 78.8 Extremely Dissatisfied 517 20.5 21.2 100 Missing 87 3.4 Satisfaction Quality Extremely Missing,3 4 Satisfied,3.3 Extremely Satisfied,18 Dissatisfied,20.5 Neither,19 9 I Dissatisfied,34 8 ' Satisfaction:Quality 1,000 900 800 700 600 -- — --- _„ 500 cr LL 400 300 - 200 I 100 ; ._..._ 0 Extremely Satisfied Neither Dissatisfied Extremely Missing Satisfied Dissatisfied 62 Applied Development Economics, Inc. 84 Office Parks in Paso Robles Recruiting Atascadero Businesses Paso Robles office park developers and brokers have been successful in recruiting Atascadero businesses to their projects. Tax-Free Internet Sales Atascadero shoppers make some purchases via the internet and some percent make a significant share of their purchases via the internet. This means lost revenue to Atascadero Without a way to tax internet sales, Atascadero is losing out on needed sales tax. Declining Tax Revenues The current economic downturn is affecting both property taxes and sales taxes for the City, similar to most jurisdictions throughout the state. The City has budgeted reserves to help in such times, but over the longer term, the large transportation infrastructure maintained by the City will require ever increasing revenues Graying of the Population The in-migration of semi-retired or retirees from urban areas is an opportunity and a threat. The threat is that these new residents will want things to "stay the same." They have seen a lot of changes over the course of five or six decades and want stability Increasing Fuel Costs The increasing cost of gas and het fuel will make it more expensive for families to go on vacation, further limiting Atascadero's opportunity for growth in tourism. Cut backs by Airlines Airlines are cutting back on the number of flights in and out of smaller airports. SLO airport could lose a significant amount of service This will affect business location decisions for businesses dependent on airline service. Applied Development Economics,Inc. 41 63 Atascadero Household Shopping Survey 8.Please indicate the percentage of your retail spending that goes to each of the following areas. Please PRINT with a black pen. ee � � p0th)sO Se aratethedi ts intwodi k ex gep 5o � ye� numbers(likethe3 and 5 in 5,) ph easespeelfy 0e� (Specify other areas here.) In MM Supermarketss (like Vons,Trader Joes,etc.) Specialty Food Stores L b (Farmers.market,meats,ethnic foods,baked goods,etc.) Large Discount Stores c (like Target,K-Mad,Walmart) Warehouse Clubs general items d (like Costco) Hardware or Home Improvement e (Miner'.s,DeCou's,Grisanti's,OSH, Home Depot) Y Apparel and Accessories f G Department Stores 8 (like Macy's,Nordstroms,Sears) k r h Sporting Goods Other Specialty Retail Stores t: (Books;music,jewelry gifts,toys, health,beauty pet,art supplies, Drug Stores k Office Supplies I Appliances l Electronics 1 m Furniture I Home Furnishings p Restaurants (notfastfood) Fast food I Take:out i Personal Services p (hair care,cleaners,pet care,etc.) Professional Services q (law finance;etc.) Health Services i T (dinics,doctors,or dentists, hos itals The City of Atascadero thanks you foryour participation,and assures thatyour answers will remain confidential. 60 Applied Development Economics, Inc. 82 TABLE 12(CONTINUED) SUMMARY OF STRENGTHS WEAKNESSES OPPORTUNITIES AND THREATS SWOT Opportunities Threats Qualityjob opportunities Qua/ity job opportunities The growing number of location- Neighboring business parks have larger independent businesses facilitated by available spaces and are recruiting nearly-ubiquitous access to the internet Atascadero businesses The increasing number of retired residents Airlines are cutting back on the number of could provide necessary expertise for airports served, affecting mostly small, growing companies regional airports. • Decreasing supply of oil could spur growth of clean energy business Retail Retail Successfully re-developed downtowns and • On-going downtown redevelopment regional shopping centers of neighboring • Distinct architectural character communities attract Atascadero shoppers • Atascadero Creek is attractive amenity Preponderance of residents work outside of• Room for increased capture of spending on Atascadero and shop where they work apparel, home furnishings,general merchandise, entertainment and fine Tourism dining. Growing transportation costs(affecting Tourism tourism) • Leveraging proximity to popular wine and agriculture tourism attractions Quality of Life&Fiscal Health Leveraging growing interest and strengths Without commercial and industrial in arts development, greater burden of providing • Leveraging the growing popularity of education and public services falls on *4W equestrian activities by constructing residents. equestrian facilities that would attract more Growing share of sales via the internet visitors means loss of locally-generated sales tax. • Targeting tourism marketing to the fast growing San Joaquin Valley population • Eagle Ranch could be well-suited for resort type development and/or an equestrian center Quality of Life&Fiscal Health • Redevelopment and better use of existing commercial and industrial sites could generate badly needed income for education and other public services r Applied Development Economics,Inc. 43 65 ",fps "This page intentionally left blank" 58 Applied Development Economics, Inc. 80 IV. ECONOMIC DEVELOPMENT GOALS DOWNTOWN Atascadero's downtown is a lively place for business, entertainment, arts, and public gatherings Atascadero facilitates the transition of the downtown into a synergistic entertainment, cultural, and specialty shopping area. OBJECTIVES ■ Colony Square successfully connects the Sunken Gardens, Stadium Park and Colony Way to create a vibrant commercial core ■ The development in Downtown includes features to support the City's Tourism Marketing Plan in terms of creating venues for art showings, events such as the Art Walk, fine restaurants, and entertainment venues to attract tourists as well as local residents • New development in Downtown features mixed-use to increase the intensity of activity RETAIL Atascadero provides a broad range of retail stores so that residents and visitors can meet most of their shopping needs locally OBJECTIVES ■ Encourage a broad range of retailers to locate within the city ■ Support development of major commercial centers at the Del Rio Road interchange. • Re-capture at least 50 percent of retail leakage within five years, 75 percent of retail leakage within 10 years. • Concentrate retail at major nodes along El Camino Real. ■ Re-develop selected strip malls into R & D industrial space, Class A office space, high density residential or a mix of these uses. ■ Create a transit line for El Camino For long term, consider a Curitiba-like fixed route bus system for El Camino, connecting nodes with each other and downtown. • Seek to concentrate commercial retail and office capacity in downtown core. Applied Development Economics,Inc. 45 67 q TABLE A-3 LAND USE ESTIMATES FOR ATASCADERO, 2008 LAND USE RESIDENTIAL Units Population Assessed Value Single Family 8,355 22,141 $2,924,250,006— Multi-Family 2,747 4,805 $329,640,000 Group Quarters/Inst. 1,643 Total Residential 11,102 28,588 $3,253,890,000 NON-RESIDENTIAL Sq.Ft. Employment Assessed Value Commercial 2,567,568 4,677 $385,135,200 Industrial 428,000 377 $47,080,000 Lodging 162,432 141 $28,425,600 Institutional 4,347,963 3,627 $0 Total Non-Residential 4,938,395 8,822 $460,640,800 _TOTAL CITY $3,714,530,800 Source:ADE,Inc. RESULTS OF THE ANALYSIS For most cities in California, property taxes do not pay the full cost of municipal services needed by residents and neighborhoods. As noted above, the City of Atascadero only receives about one-fifth of property taxes paid by property owners. Therefore, most cities rely on sales taxes and other revenues to help balance the budget and to fund the services and amenities desired by the community Atascadero is no different in this regard and consequently the residential land uses appear to show a negative fiscal effect for the City while most non-residential land uses generate a positive fiscal balance (Table A-4) This outcome is not so much an indictment of residential development but rather reflects more the importance of the City economic base to provide the revenues needed to operate the City The sales tax generated by retail uses and the TOT tax generated by lodging create most of the extra revenues needed to support the cost of services for the residential neighborhoods. 56 Applied Development Economics,Inc. 78 *ft.►. QUALITY OF LIFE Atascade:-o is an inviting community to work, shop, and play OBJECTIVES • Maintain the City's rural feel through good planning. ■ Explore the feasibility of equestrian-focused residential development. ■ Genuine civil discourse is displayed throughout the community WORKFORCE Atascadero is a center for workforce education and training. OBJECTIVES • Leverage existing assets to promote seminars and specialized education. ■ Work toward establishment of a center for specialized training Applied Development Economics,Inc. 47 69 residential population, the corresponding default proportions for weighting service ` expenditures are 86 percent residential and 14 percent non residential. As indicated in Table A-2 a few of the revenues and services require different assumptions. The property transfer tax is paid when properties are sold and the tax is calculated as a function of the sales price. Therefore in the fiscal model, we estimate these revenues as a percent of the property tax revenues generated by each land use category In terms of the Revenue from Money and Property line item, these revenues are taken as a percent of total annual revenues for the City On this basis, this revenue represents about two percent of the total and is calculated here as a similar percent of the revenues generated by each individual land use. The General Government category is treated as an "overhead" charge on the cost of direct services to residents and business in Atascadero This category includes the following City functions: ■ City Council • City Manager • City Clerk • City Attorney ■ Technology ■ Administrative Services The General Fund expense for these Departments is about 20 percent of the total General Fund budget and this factor is used in the fiscal model to project these costs by land use. For Community Services,we assume that most of the service demand comes from the resident population, rather than from businesses or employees. Three mayor revenues are not included in Table A-2 because they are not estimated on a per capita basis. The property tax is a function of assessed value for each land use. Total assessed value in Atascadero is estimated at about $3 7 billion, however, we were unable to obtain a distribution of assessed value by land use in the City from the County Assessor We allocated property assessments based on average assessed values for typical land uses within each land use category, derived from data obtained from DataQuick. The average values used in this analysis are as follows• • Single Family units $350,000 per unit • Multi-family units $120,000 per unit • Commercial (retail/office/service commercial) $150 per sq.ft. • Industrial $110 per sq.ft. • Lodging $175 per sq.ft. 54 Applied Development Economics,Inc. 76 V.ACTION PLAN The Action Plan will be developed upon approval of goals and objectives. The Marketing Strategy by The Placemaking Group will be a part of the Action Plan. Applied Development Economics, Inc. 49 71 Licenses and Permits Construction Permits $579,290 General Plan Maintenance Permits $ 14,390 Grading and Drainage Permits $ 46,290 Encroachment Permits $ 40,930 Tree Application Fees $ 24,920 Other Developer Reimbursements $ 30,000 Total $735,820 Charges for Service Development $918,870 Other Revenue State Mandated Cost $ 30,100 TABLE A-1 ATASCADERO CITY BUDGET FISCAL YEAR 2008-09 NET BASIS FOR FISCAL BUDGET CATEGORY BUDGET AMOUNT ADJUSTMENTS ANALYSIS REVENUES Property Taxes $8,023,260 $8,023,260 Sales Tax $4,254,200 $4,254,200 Transient Occupancy Tax $696,090 $696,090 Franchise Taxes $918,700 $918,700 Property Transfer Tax $151,910 $151,910 Business License $182,800 $182,800 Licenses&Permits $735,820 $735,820 $0 Motor Vehicle in lieu $195,160 $195,160 Revenue from Money and Property $296,530 $296,530 Fines and Forfeitures $137,000 $137,000 Charges for Service $2,781,610 $918,870 $1,862,740 Other revenue $1,585,400 $30,100 $1,555,300 TOTAL REVENUES $19,958,480 $1,684,790 $18,273,690 EXPENDITURES BUDGET ADJUSTMENTS NET BASIS General Government $3,111,890 $30,100 $3,081,790 Police $5,977,570 $5,977,570 Fire/EMS $4,395,960 $4,395,960 Community Development $1,882,390 $1,654,690 $227,700 Public Works $2,036,480 $2,036,480 Community Services $2,658,990 $2,658,990 Other $300,000 $300,000 TOTAL EXPENDITURES $20,363,280 $1,684,790 $18,678,490 TOTAL NET/(USE OF RESERVES) ($404,800) ($404,800) Source:ADE,Inc. 52 Applied Development Economics,Inc. 74 VI. APPENDIX A: FISCAL IMPACT METHODOLOGY CITY BUDGET The fiscal analysis is designed to relate ongoing operational costs and revenues for the City of Atascadero to existing land uses in the City It is based on the Fiscal Year 2008 09 General Fund. The General Fund contains regular tax revenues that the City receives, such as property taxes and sales taxes, and provides appropriations for most public services provided by the City The City has a number of other budget funds that include specially earmarked revenues used to pay for specific services or capital projects. Among these are the gas tax fund for street maintenance, development impact fee funds for capital improvements, enterprise funds for wastewater and transit services, and a variety of assessment district funds. While there is some transfer of revenue between the General Fund and these other funds, the non-General funds are supported largely by user fees and assessments and are not dependent on general tax revenues The City has less ability to increase general tax revenues and must pay for municipal services such as police and fire protection from its General Fund. For the purposes of the fiscal background analysis for the Economic Development Strategy, we have limited the analysis to the General Fund. The budget figures for the FY 2008-09 General Fund are shown in the left hand column of Table A-1. Since the analysis is concerned with portraying the ongoing fiscal effects of existing land uses,we have made certain adjustments to the budget figures, as shown in the middle column of the table. These adjustments include the one-time building permit and plan check fees, among other charges,that are paid by new development during the entitlement process, but generally are not paid on an annual basis after development is complete. The City has the authority to set these development fees at an appropriate level to cover the cost of City staff, primarily in the Community Development Department, to provide services during the entitlement process. Therefore, there should not be adverse fiscal impacts for these activities. These fees have been adjusted out of the appropriate revenue categories and also deducted from the expenditures for the Community Development Department. Specifically the fees are as follows: `%W Applied Development Economics,Inc. 57 73 *460 "This page intentionally left blank" 50 Applied Development Economics, Inc. 72 REVENUE AND COST ESTIMATES With the exception of certain taxes such as the property tax and sales tax, the revenues and costs for this analysis have been calculated on a per capita basis This means that the population and employment base in the City is divided into the revenue and cost figures shown in the right hand column of Table A 1 to estimate average factors on a per capita basis. The factors developed for the Atascadero Fiscal Model are shown in Table A-2 TABLE A-2 PER CAPITA REVENUE AND COST FACTORS Residential Business Revenues Proportion Per capita Proportion Per capita Franchise Taxes 86% $29.31 14% $24.94 Property Transfer Tax[a] 2% 2% Business License 0% $0.00 100% $35.39 Licenses&Permits 86% $0.00 14% $0.00 Motor Vehicle in lieu 100% $7.24 0% $0.00 Revenue from Money and Property[b] 2% 2% Fines and Forfeitures 86% $4.37 14% $3.72 Charges for Service 86% $5943 14% $50.58 Other revenue 86% $49.62 14% $42.23 Expenditures General Government[c] 20% 100% 20% Police 86% $190.71 14% $162.30 Fire/EMS 86% $140.25 14% $119.36 Community Development 86% $7.26 14% $6.18 Public Works 86% $64.97 14% $55.29 Community Services 100% $98.67 0% $0.00 Other 86% $9.57 14% $8.15 Source:ADE,Inc. Notes:[a]Calculated as a percent of property taxes.[b]Percent of other revenues.[c]Percent of other costs. The columns labeled "Proportion" indicate the amount of each revenue or cost item that is allocated to residential or non residential land uses. A key assumption in this analysis is the relative service demand between residential and non-residential land uses. In general,the analvsis assumes that the impact of employment generating uses, as represented by the number of jobs supported by the activity, is 50 percent of the impact of residential uses, represented by the population. This is a standard service population assumption for fiscal impact studies. It corresponds to the general notion that employed people working at fobs in Atascadero occupy eight-hour shifts, mostly during the regular work day, while the resident population,when they are not working, represent a service demand during the 16 hours of non-working time during a 24 hour day Thus, an eight hour period is 50 percent of a 16 hour period. Of course, there are many exceptions to this but as a general rule it reflects the overall relative service demands of residential and non-residential land uses for a number of City services. We estimate there are 26,947 residents and 8,822 ]obs in Atascadero as of 2008 (not including 1,643 group quarters residents) With fobs given half the weight of the Applied Development Economics,Inc. 53 75 Nom`` "This page intentionally left blank" 48 Applied Development Economics,Inc. 70 Using these average values and the quantities of units and building sq.ft. in the City, we were able to produce an aggregate total that is similar to the total assessed value figure provided by the County Assessor It is important to recognize that these values do not represent current market values. Assessed values for existing properties that have not sold in many years may be substantially below market. For properties that have been in single ownership for a very long time, the original assessed value may never have reflected market value, because assessment practices were different prior to 1978 But even where market value was the initial basis for the assessed value, unless the property is resold, the assessed value can only increase two percent per vear under the provisions of Proposition 13 Therefore, after a period of time, it is common for assessed values to be well below market value. It is important to note that the City only receives a portion of the total property tax paid by property owners. The base property tax rate of one percent of assessed value, but the City of Atascadero gets less than 22 percent of this revenue on average,while much of the rest of the property tax is allocated to local school districts, the County, and other taxing agencies. Property owners may pay additional property tax amounts to fund debt service on public bonds, but again the City does not receive this revenue The second mayor revenue not allocated on a per capita basis of the sales tax. Although local household spending generates much of the taxable sales in the City, the sales tax allocation to the City budget is based on the point-of-sale at retail businesses and other fir*' types of businesses generating taxable transactions. Therefore, from a land use perspective, it is the presence of the commercial businesses primarily that generates sales tax and so this revenue is allocated to the non residential land uses. Finally, Transient Occupancy Taxes (TOT) are generated by lodging facilities,which are included as a separate land use category in this analysis. THE LAND USE INVENTORY ADE prepared a 2008 land use inventory to use as a basis for the fiscal analysis (Table A-3) For residential units,we relied on State Department of Finance (DOF) data and estimated population using 2.54 persons per household for single family units and 1.75 persons per household for multi-family units. DOF also provides a population estimate for group quarters, which is mainly the Atascadero State Hospital. The employment figures are derived from a file obtained from the Stare Employment Development Department. The non-residential building sq.ft. are estimated from data in the City General Plan, updated to the present with information in the UCSB Economic Forecast about building trends since 2001 These estimates are necessarily rough, but they do correspond to acceptable ranges of industry standards for building square footage per employee, as well as typical FAR patterns and assessed values per sq.ft. as discussed above. Applied Development Economics,inc. 55 77 TOURISM Atascadero is the gateway and hub for visitors to the Central Coast, providing lodging, recreation, entertainment, and unique shopping and cultural opportunities OBJECTIVES • Leverage its central location and access to San Francisco, Los Angeles, and Fresno to enhance its tourism industry ■ Increase the number of venues for performing arts and other cultural events, including Stadium Park if resources are available to improve it. Increase the number of special events that attract visitors. • Explore the feasibility of developing Eagle Ranch into a venue for attracting business and leisure visitors ■ Enhance existing attractions to accommodate larger events and more business and leisure travelers These include the golf course, the zoo, and the parks. ■ Ensure that new commercial development includes space for restaurants wherever appropriate, especially in the Downtown. • Advocate for improvements to Highways 41 from Fresno and 46 from Bakersfield. ■ Explore and if feasible develop equestrian event center (see Sycamore Trails Stables, San Juan Capistrano) JOBS Atascadero supports innovative businesses, particularly those in emerging environmental and information technology fields OBJECTIVES ■ Focus business attraction and development on existing available sites, using redevelopment authority/resources where possible to help remove development barriers. • Support growth of economic opportunity areas, including alternative energy, graphics, new media, food and beverage, electronics etc. ■ Increase market area for local businesses by advocating for safety improvements along Highways 41 and 46 to Central Valley • Support installation/enhancement of WI-Fi, broadband infrastructure. 46 Applied Development Economics,Inc. 68 ' www' TABLE A-4 ESTIMATED_ FI_S_CAL IMPACT OF EXISTING LAND USES IN ATASCADERO,2008 Single REVENUES Total[a] Family Multi-Family Commercial Industrial Lodging Institutional Property Taxes $8,060,917 $6,345,926 $715,353 $835,783 $102,168 $61,687 Sales Tax $4,254,200 $0 $0 $4,254,200 Transient Occupancy Tax $696,090 $0 $0 $0 $696,090 Franchise Taxes $918,649 $648,961 $140,823 $115,943 $9,404 $3,517 Property Transfer Tax $152,623 $120,152 $13,544 $15,824 $1,934 $1,168 Business License $182,800 $0 $0 $164,470 $13,340 $4,989 Licenses&Permits $0 $0 $0 $0 $0 $0 Motor Vehicle in lieu $207,047 $160,351 $34,796 $0 $0 $0 $11,899 Revenue from Money& Property $295,720 $160,541 $23,777 $95,716 $2,678 $12,813 $195 Fines and Forfeitures $136,992 $96,775 $21,000 $17,290 $1,402 $524 Charges for Service $1,862,636 $1,315,822 $285,531 $235,084 $19,068 $7,131 Other revenue $1,555,213 $1,098,649 $238,405 $196,284 $15,921 $5,954 TOTAL REVENUE $18,322,888 $9,947,178 $1,473,230 $5,930,596 $165,916 $793,874 $12,094 EXPENDITURES General Government $3,081,613 $2,237,499 $485,533 $322,626 $26,168 $9,787 Police $5,977,237 $4,222,499 $916,275 $754,390 $61,189 $22,885 Fire/EMS $4,395,715 $3,105,264 $673,837 $554,785 $44,999 $16,830 Community Development $227,687 $160,845 $34,903 $28,737 $2,331 $872 Public Works $2,036,366 $1,438,550 $312,163 $257,011 $20,846 $7,797 Community Services $2,658,818 $2,184,734 $474,083 $0 $0 $0 Other $299,983 $211,917 $45,986 $37,861 $3,071 $1,149 TOTAL EXPENDITURES $18,677,420 $13,561,309 $2,942,780 $1,955,410 $158,604 $59,319 $0 NET(COST)/REVENUE ($354,532) ($3,614,131) ($1,469,550) $3,975,186 $7,312 $734,555 $12,094 Source:ADE,Inc. Notes:[a]Total figures differ slightly from Table 1 budget figures due to modeling variation. �wrw' Applied Development Economics,Inc. 57 79 "This page intentionally left blank" 44 Applied Development Economics,Inc. 66 VI1. APPENDIX B: ATASCADERO SURVEY Atascadero Household Shopping Survey 1 How satisfied are you with the shopping available within the City of Atascadero? Neither mely (Check one box for each row.) Extremely Satisfied satisfied nor Unsatisfied unsatisfied satisfied unsatisfied The selection of stores available n D 13 The quality of stores available ❑ ® 0 r] The price of available products ® D ❑ n rl Availability of parking M ® El F1 Q Hours the stores are open 0 © ❑ n Q 1 2 3 h 6 2. Are you a resident 3. Do you make most of the 4. Where do you work? of Atascadero? household purchases? (Check one.) Yes , Yes a ❑ Atascadero n No No E] Paso Robles r El San Luis Obispo 5. what is your gender? Within San Luis Obispo County E] Female t Outside San Luis Obispo County *111W 1:1 Male At home 6. Including yourself,how many 7 Which of the following ranges best persons live in your household? describes your household income? (Indicate the number of persons in each (Check.one,) Children younger than 10 M Under$20,000 n $20,000 to$49,999 Children 10 to 18 years old u $i50,OQ0 to$69,999 Persons 18 to'24 years old $70,000to$59,999 Adults 25 to 34 years old $100,000 to$149,999 Adults 35 to 64 years old $150,000 to$249,999 Greaterthan$250;000 9 Adults 65 or older r please mail your completed survey to ADE using the enclosed postage paid Business Reply envelope. ADE's address is 100 Pringle Ave.Suite 560,Walnut Creek,CA 945W9737 The City of Atascadeto thanks you foryour participation,and assures that your answers will remain confidential. terra' Applied Development Economics, Inc. 59 81 TABLE 12 SUMMARY OF STRENGTHS WEAKNESSES OPPORTUNITIES AND THREATS SWOT Strengths Weaknesses Qua/ityjob opportunities Qualityjob opportunities • Proximity to San Luis Obispo High-compensation government jobs • Community openness to clean industrial makes it difficult for private sector to growth recruit workers • Availability of water—AMW Limited availability of suitable sites for non-retail business growth Retail&Services Local hardware,drug and grocery stores Retail&Services capture local and regional spending Residents mostly dissatisfied with local Most personal services spending captured shopping selection and quality by local businesses Past delays in implementing downtown • Increasing household incomes revitalization • Available space for community retail Lack of investment in upgrading businesses downtown properties results in sub- optimal use of existing sites Tourism Abundance of strip commercial along EI • Central Coast location at intersection of Camino Real thwarts attempts to Highways 101 &41 concentrate activity in downtown core. Numerous amenities and attractions Other communities, including Templeton, • Historic Colony Plan and structures have captured most health and • Proximity to the wineries and vineyards professional services businesses, Quality of Life&Fiscal Health Tourism ■ Established Redevelopment Agency Lack of niche position relative to tourism, • Attractive residential setting lack of clear message and communications strategy • Atascadero does not have enough attractions to bring in tourists,so it is mostly an overflow destination providing affordable lodging visitors to other parts of region Quality of Life&Fiscal Health • Difficulty maintaining city infrastructure • Declining school enrollment and funding 42 Applied Development Economics,Inc. 64 SURVEY RESULTS SATISFACTION: SELECTION Frequency Percent Valid Percent Cumulative Percent Extremely Satisfied 75 3 3.1 3.1 Satisfied 256 10.1 10.5 13.5 Neither 279 11.1 114 24.9 Dissatisfied 1024 40.6 41.9 66.8 Extremely Dissatisfied 812 32.2 33.2 100 Missing 77 3.1 Satisfaction: Selection Extremely Missing,3.1 Satisfied,3 Satisfied,10.1 Extremely Dissatisfied,32.2 Neither,11 1 Dissatisfied,40.6 Satisfaction:Selection 1,200 1,000 800 c 600 400 U. 200 0 Extremely Satisfied Neither Dissatisfied Extremely Missing Satisfied Dissatisfied �.r Applied Development Economics,Inc. 61 83 Valley's population should reach 9 4 million by 2050 Atascadero's opportunity is to ' leverage its existing tourism assets and develop others in order to capture a larger share of visitors to San Luis Obispo County Rise in Oil Prices and Growth of Green Businesses Atascadero has a few businesses that install solar systems in commercial buildings and residences. The rise in oil prices could make their services more in demand. The proposals for major solar energy facilities east of Atascadero could lead to related business opportunities In addition, the increasing cost of gas could induce shoppers to buy local. Eagle Ranch This proposed annexation area contains about 3,450 acres, and has the potential to support a visitor attraction, lodging, and possibly a small business park in addition to residential development. The property includes freeway frontage and access to the interchange at Santa Barbara Avenue. Given the topography of the site, the best economic development use, in conjunction with the planned residential, would be visitor serving lodging and attractions. The site could possibly support lodging near the freeway interchange, but could certainly support a resort style lodging facility in the interior of the property, as well as RV and camping facilities. Local residents have raised the possibility of developing an equestrian center in Atascadero to host a variety of equestrian competitions and events that circulate through the western United States, The Eagle Ranch property would be an ideal location for such a facility and this would help support not only the onsite lodging but also other attractions, restaurants and visitor services in the City Redevelopment of Underutilized Commercial and Industrial Sites The City's Redevelopment Project area includes most of the City's commercial and industrial areas. THREATS Successful Downtowns in Paso Robles, Templeton and San Luis Obispo Paso Robles has aggressively redeveloped and enlarged its downtown. With new restaurants, theatres and shops, it is now the place of choice for an evening out and for shopping Paso Robles has also added new luxury hotels to its downtown, reducing the possible overflow that would otherwise have gone to Atascadero hotels. The unincorporated area of Templeton has successfully developed an inviting downtown with a western theme. The town offers a variety of restaurants and shops. Most recently, the Trader Joes located in Templeton at the Highway 101 interchange. 40 Applied Development Economics,Inc. 62 SATISFACTION: PRICES Frequency Percent Valid Percent Cumulative Percent Extremely Satisfied 73 2.9 3 3 Satisfied 642 25.4 26.6 29.6 Neither 909 36 377 67.3 Dissatisfied 535 21.2 22.2 894 Extremely Dissatisfied 255 10.1 10.6 100 Missing 109 4.3 Satisfaction:Prices Missing,4 3 Extremely Extremely Satisfied,2.9 Dissatisfied, 10 1 ,j lfillil l�,ii ,il � �I Satisfied,25 4 Dissatisfied,212 Neither, 36 Satisfaction:Prices 1,000 — 900 800 700 600 500 i 400 U. 300 200 100 0 Extremely Satisfied Neither Dissatisfied Extremely Missing Satisfied Dissatisfied Applied Development Economics,Inc. 63 85 Atascadero, claiming that building and planning approvals are difficult to obtain. This has resulted in Atascadero losing commercial development to Paso Robles and Templeton. High Share of Government Workers A significant share of employed residents work for large government institutions, including the State Hospital, the prison, local government, school districts, and Cal Poly These institutions offer relatively good wages and benefits As a result, the private sector has a hard time recruiting workers because it cannot match government compensation packages. There is a concern that government workers who may have never worked in small business may lack an understanding of what it takes to keep a business going Under-utilized Downtown The central business district is located on the east side of El Camino Real between Traffic Way and E. Mall. This area contains a wide range of shops including art galleries, hardware stores, restaurants,thrift shops, gift shops, and offices for realtors, printers, dentists and other professionals. Other than Downtown, Atascadero's commercial district is essentially a series of strip malls along the El Camino Real corridor This detracts from the City's ability to establish a substantial retail concentration Downtown. The Downtown should support a mix of uses, with higher building intensities where possible. Declining School Enrollment The Atascadero school districts enrollment has been declining over recent years, resulting in less funding to schools. Difficulty Recruiting Workers, Especially Young "Creatines." Young, recent college graduates are attracted to areas that offer the greatest opportunities to meet other young people, advance their careers and indulge in their favorite pastimes. While Atascadero's proximity to Cal Poly San Luis Obispo is an advantage in terms of recruiting recent graduates, it lacks the amenities that young people look for, including theatres,night clubs, and cafes Atascadero Too Large to Maintain Atascadero has 140 lane miles of roadway to maintain, but not the revenues to do so Constrained Supply of Sites for Office and Industrial Park Development The City's inventory of business sites generally represents a constraint to non-retail business development. The City has few flat parcels of substantial size to support mayor new employers. Compared to industrial parks available in Paso Robles or Templeton, it is unlikely the City can compete effectively for mayor industrial uses. Though existing sites may be well-suited for small and medium sized firms, should 38 Applied Development Economics, Inc. 60 SATISFACTION HOURS Frequency Percent Valid Percent Cumulative Percent Extremely Satisfied 193 7.6 7.9 7.9 Satisfied 1144 45.3 47.1 55 Neither 600 23.8 247 79.7 Dissatisfied 333 13.2 13.7 93.4 Extremely Dissatisfied 160 6.3 6.6 100 Missing 93 3.7 Satisfaction:Hours Extremely Extremely Missing, 3 7 Satisfied,7 6 Dissatisfied, 6.3� Dissatisfied, 132 Satisfied,45 3 Neither, 23 8 ,u Satisfaction:Hours 1,400 1,200 1,000 ani 800 y 600 L LL 400 200 0 - Extremely Satisfied Neither Dissatisfied Extremely Missing Satisfied Dissatisfied Applied Development Economics,Inc. 65 87 ■ Weaknesses Weaknesses are tangible or intangible factors that work against the `40# achievement of quality of life and economic vitality ■ Opportunities An economic opportunity is a trend external to the community that could enable Atascadero to leverage its existing economic and quality of life assets to achieve its goals. ■ Threats Threats are circumstances or trends external to the community that could prevent the realization of goals STRENGTHS Location One of Atascadero's greatest assets is its location. Situated about half-way between San Francisco and Los Angeles on Highway 101, residents and businesses are within 3 hours drive of the two largest metropolitan areas of the state as well as to the Central Valley and Yosemite National Park via Highway 41 Its central location between San Luis Obispo to the south and Paso Robles to the north allows easy access to customers and services throughout the county This central location facilitates recruitment of workers by increasing access to a broader labor market; it also expands the business market area. As for tourism marketing, its central location within the county provides easy access to all the county's tourism attractions and amenities. Location at the intersection of Highways 101 and 41 would provide an advantage in capturing spending by Central Valley visitors traveling to the cooler central coast. w Amenities and Attractions Atascadero's location is not only advantageous for business it also provides a range of amenities and activities that are attractive to new residents as well as tourists. Located about 20 miles inland from the Central Coast beach town of Morro Bay, the mild, Mediterranean climate and the oak-studded hillsides provide both beautiful views and year-round opportunities for outdoor activities. Recently, the ranch lands of San Luis Obispo County have been planted in wine grapes and the area has become a significant wine-growing region and a popular attraction for tourists. The list of unique attractions include wineries, an accredited zoo, a lavender farm, golf courses, art galleries, a skate park and a BMX track. Freeway Interchanges Atascadero's visitor services, such as fast-food restaurants and lodging, have capitalized on its 8 freeway interchanges along Highway 101 Local drug, grocery, and hardware stores also benefit by easy access from rest of the region. Historic Colony Plan and Structures Atascadero was developed by E G Lewis in the early 1900s who designed the entire Colony of Atascadero, including 26 square miles of land. Before his development company went bankrupt, he was able to build several roads, subdivide most of the 36 Applied Development Economics, Inc. 58 WHERE DO YOU WORK? Frequency Percent Valid Percent Cumulative Percent Atascadero 628 24.9 26.4 26.4 Paso Robles 176 7 74 33.8 San Luis Obispo 403 16 16.9 50.7 Within SLO County 298 11.8 12.5 63.2 Outside SLO County 61 2.4 2.6 65.7 At home 572 22.7 24 89.8 Retired 234 9.3 9.8 99.6 Templeton 10 0.4 0.4 100 Where Do You Work? Retired,9.3 Templeton,0.4 Atascadero,24.9 At home,22.7 Paso Robles 7 Outside SLO County,2.4 Within SLO P an Luis Obispo, , County,11.8 16 Where Do You Work? 700 600 _.3.. 500 400 Cr 300 1i 200 100 0 1 Wiwi Atascadero Paso San Luis Within SLO Outside At home Retired Templeton Robles Obispo County SLO County Applied Development Economics,Inc. 67 89 Industrial Sites The City's industrial sites are located away from the freeway in the eastern portion of the City along the railroad track and near the entrance of SR 41 into the City from the east. Portions of the industrial zoned properties along the railroad at the north end of Traffic Way are very narrow and the lots are only 2,500 sq.ft. Further south, the lots increase in size to as much as 20,000 sq.ft., but their depth is only 100 ft. Area 4 includes four parcels with an estimated total area of about 115 acres. This site has access on both Traffic Way and Via Road. Via Road has a small one-way bridge over Atascadero Creek which provides access to SR 41 via Ensenada Avenue and Mercedes Avenue If assembled into a single development, this area could support as many as 250 to 300 industrial jobs. The parcels could also be developed individually, but the key infrastructure costs would be an improved bridge on Via Road and possibly a signalized intersection at Mercedes Avenue and SR 41 to permit safer truck turning movements. Both the northwest and southeast ends of the industrial parcels along Sycamore Avenue are developed and much of the central portion is planned to support the expansion of the Water District facilities The proximity of these sites to the Salinas River also limits their potential. Eagle Ranch This large site is proposed for annexation to the City Early project concepts advanced by the property owners focus on single family residential development, although some non-residential development is under consideration as well. The property includes freeway frontage and access to the interchange at Santa Barbara Avenue. As such, it should be included in the City's economic development program. Given the topography of the site, the best economic development use, in conjunction with the planned residential, would be visitor serving lodging and attractions. The site could possibly support lodging near the freeway interchange, but could certainly support a resort style lodging facility in the interior of the property, as well as RV and camping facilities. Local residents have raised the possibility of developing an equestrian center in Atascadero to host a variety of equestrian competitions and events that circulate through the western United States The Eagle Ranch property would be an ideal location for such a facility and this would help support not only the onsite lodging but also other attractions, restaurants and visitor services in the City An alternate idea would be to locate a business park development along the freeway frontage. Based on the limited visual access we were able to gain for this study, it is not clear how large a facility could be developed in this portion of the site. However, it may possibly be a location for additional fob development if the City chooses that as a priority for its economic devotement program. 34 Applied Development Economics,Inc. 56 INCOME Frequency Percent Valid Percent Cumulative Percent Under$20,000 81 3.2 3.5 3.5 $20,000 to$49,999 446 177 194 22.9 $50,000 to$69,999 473 18.7 20.6 43.5 $70,000 to$99,999 630 25 274 70.8 $100,000 to$149,999 458 18.2 19.9 90.7 $150,000 to$249,999 179 7 1 7.8 98.5 Greater than$250,000 34 1.3 1.5 100 Missing 222 8.8 Income Greaterthan Missing,8.8 Under$20,000, $250,000, 1.3 3 2 $150,000 to $20,000 to $249,999,7 1 $49,999, 17 7 $100,000 to $149,999, 18.2 $50,000 to $69,999, 18 7 $70,000 to $99,999,25 Income 700 600 500 3 400 Cr L 300 L 200 x--- 100 0 Under $20,000 to $50,OOOto $70,OOOto $100,OOOto $150,OOOto Greaterthan $20,000 $49,999 $69,999 $99,999 $149,999 $249,999 $250,000 A%W Applied Development Economics, Inc. 69 91 TABLE 10 COUNTY ELECTRONICS Industries 2006 Employment L Computer and Electronic Product Mfg. 396 0.19 Audio&Video Equip. Mfg. 220 3.97 Telecommunications 396 0.55 Plastics&Rubber Products Mfg. 253 0.7 Unlaminated Plastic Profile Mfg 63 4.8 Other Plastics 115 0.69 Electrical Equipment,Appliance&Component Mfg 424 2.05 All Other Misc. Electrical Equip&Component Mfg. 386 18.01 Fabricated Metal Product Manufacturing 65 0.71 Machine Shops 239 0.88 Other Fabricated Metal 215 1.87 Miscellaneous Manufacturing 393 0.68 Machinery Manufacturing 800 1.54 Including Semiconductor Machinery Mfg 118 3.2 Source:ADE,Inc.,IMPLAN Alternative Energy San Luis Obispo County has existing strengths in power production that could be leveraged to build a viable alternative energy production sector In 2006, the cluster employed 2,300 workers in petroleum refineries, power production plants, and pipelines (Table 11) It also includes manufacturers and installers of alternative energy production components. The County has received proposals for mayor solar energy production facilities. The opportunity for Atascadero is to promote those economic strengths that are most highly desired by this industry through a targeted marketing low communications strategy TABLE it COUNTY ALTERNATIVE ENERGY 2006 Employment L Petroleum and Coal Products Mfg 175 1.8 Petroleum Refineries 166 2.09 Pipeline Transportation 19 1.15 Utilities 2118 5.76 Source:ADE,Inc.,IMPLAN D SITE DEVELOPMENT Atascadero is situated at a crossroads between US 101 going north/south and SR 41 linking the San Joaquin Valley with the Coast along an east/west axis. The commercial and industrial sites in Atascadero are generally located along these two routes. The City has eight interchanges along US 101 and nearly all of the property on the east side of the freeway is zoned for the commercial use, as well as several significant properties on the west side of the freeway SR 41 passes through Downtown on the east side of US 201 and then continues as a commercial corridor west of the freeway This area is developing a concentration of office buildings, particularly for medical services. The ` 32 Applied Development Economics,Inc. 54 VULAPPENDIX C: ECONOMIC BASE ANALYSIS Assessing Economic Roles This section further disaggregates the industry sectors within San Luis Obispo County in order to more accurately assess the structure of the regional economy and identify the roles specific industries play within the county Identifying these roles is important because many of Atascadero's best economic growth and diversification opportunities come first from those industries that have shown the best growth potential elsewhere in the county Economic base theory is a generally accepted principle of economic development that suggests that a region's economic prosperity is a function of external demand for that region's products. The theory divides the economy into two sectors. The first is a basic (or export) sector that includes all goods and services produced for non-local consumption. The second is a non-basic (or local-serving) sector that includes all goods and services consumed to the local market. The theory assumes that the basic sector supports the non-basic sector by purchasing production inputs and by paying its employees wages that are spent locally Therefore, greater demand for basic sector goods drives demand for the non-basic sector and the local economy as a whole. To assess these sectors, ADE ranked the industries in San Luis Obispo County on the basis of two key economic indicators — fob growth and employment concentration relative to the state. The economic roles based on these indicators fall into one of four categories or "quadrants", which are described as follows: Growing Economic Base Industries: These industries have shown recent)ob growth and have an employment concentration greater than the state's as a whole. They constitute the strength of the economy and represent opportunities for growth in other areas such as supplier industries. Emerging Industries: These sectors have shown recent job growth, but still have relatively low employment concentrations. These industries represent potential future growth opportunities because they exhibit relatively fast employment growth relative to the state. Industries in this category could be considered attractive business expansion and attraction targets. Declining Economic Base Industries: These industries continue to have a relatively high concentration of employment, but have shown recent fob losses. They represent the region's economic strength but have shown some recent vulnerability, and could be considered business retention targets. Declining Non-Base Industries• These industries have shown recent job losses and have below average employment concentration. They do not have an especially Applied Development Economics, Inc. 71 93 other management services. TABLE 7 COUNTY FOOD AND BEVERAGE _ Industries 2006 Employment L Crop Production 1935 1.72 Animal Production 211 1.11 Support Activities for Agriculture and Forestry 2151 1.89 Farm Management Services 347 5.11 Farm Machinery 25 1.38 Food Manufacturing 401 0.41 Other Fabricated Metal 215 1.87 Metal Tanks 58 5.11 Beverage Product Manufacturing 1171 4.26 Wineries 1169 7.08 Source:ADE,Inc.,IMPLAN Construction The construction cluster, the third largest in San Luis Obispo County, includes architects, engineers, construction companies, specialty contractors, waste management services, mining and construction material manufacturers (see Table 8) This cluster employs over 6,000 workers. This industry has been hit hard by the 2008- 2009 recession, but could be revived by the economic stimulus package implemented by the federal government during 2009 Population will continue to grow and require the services and products of this industry over the long term, but for the next few years, growth will be flat or negative. In Atascadero, the construction industry low employs 877 workers in 163 establishments The average annual wage is relatively high, at $41,000 The opportunity for Atascadero is to continue to offer competitively priced space for architects, engineers, and specialty contractors. TABLE 8 COUNTY CONSTRUCTION Industries 2006 Employment L Architects 347 1.77 Engineering 745 1.04 Furniture&Related Product Mfg. 237 0.63 Waste Management&Remediation 387 1.52 Heavy&Civil Engineering Construction 733 1.22 Construction of Buildings 3312 2.49 Mining(except Oil and Gas) 106 2.48 Non-Metallic Mineral Product Mfg. 188 0.61 Source:ADE,Inc.,IMPLAN New Media Arts (Emerging) The emerging new media arts cluster includes firms involved in audio and video equipment manufacturing, motion picture and sound recording, publishing, software, telecommunications, computer system design and data processing Countywide, this 30 Applied Development Economics,Inc. 52 NNNOW TABLE C-1 SAN LUIS OBISPO COUNTY ECONOMIC BASE TABLE, 2001-2006 NON-GROWING INDUSTRIES 0 GROWING INDUSRIES 111 Crop Production 722 Food Services and Drinking Places 323 Printing and Related Support Activities 238 Specialty Trade Contractors Support Activities for Agriculture and 115 Forestry 621 Ambulatory Health Care Services 237 Heavy and Civil Engineering Construction 721 Accommodation HIGH 453 Miscellaneous Store Retailers 236 Construction of Buildings EMPLOYMENT 333 Machinery Manufacturing 531 Real Estate CONCENTRATION 112 Animal Production 312 Beverage and Tobacco Product Manufacturing 441 Motor Vehicle and Parts Dealers 221 Utilities Amusement,Gambling,and Recreation 114 Fishing,Hunting and Trapping 713 Industries 624 Social Assistance 454 Nonstore Retailers 212 Mining(except Oil and Gas) 451 Sporting Goods,Hobby,Book,and Music Stores 324 Petroleum and Coal Products Manufacturing Electrical Equip.,Appliance,and Component 335 Manuf 623 Nursing and Residential Care Facilities 486 Pipeline Transportation Religious,Granimaking, Civic,Professional,and 813 Similar Orgs. 339 Miscellaneous Manufacturing 541 Professional,Scientific,and Technical Services Credit Intermediation and Related Activities(i.e. 325 Chemical Manufacturing 522 Banking) Computer and Electronic Product 334 Manufacturing 423 Merchant Wholesalers,Durable Goods Merchant Wholesalers,Nondurable Wholesale Electronic Markets and Agents and 424 Goods 425 Brokers LOW Management of Companies and 551 Enterprises 326 Plastics and Rubber Products Manufacturing EMPLOYMENT 517 Telecommunications 448 Clothing and Clothing Accessories Stores CONCENTRATION 315 Apparel Manufacturing 481 Air Transportation 511 Publishing Industries(except Internet) 532 Rental and Leasing Services 622 Hospitals 524 Insurance Carriers and Related Activities 321 Wood Product Manufacturing 518 Data Processing,Hosting and Related Services 337 Furniture and Related Product Manuf 512 Motion Picture and Sound Recording Industries 515 Broadcasting(except Internet) 611 Educational Services 487 Scenic and Sightseeing Transportation 332 Fabricated Metal Product Manufacturing 322 Paper Manufacturing 484 Truck Transportation Nonmetallic Mineral Product 327 Manufacturing 488 Support Activities for Transportation Museums,Historical Sites,and Similar 712 Institutions 525 Funds,Trusts,and Other Financial Vehicles Securities,Commodity Contracts,and Fin. 336 Transportation Equipment Manufacturing 523 Investments 213 Support Activities for Mining 314 Textile Product Mills Performing Arts,Spectator Sports,and Related 311 Food Manufacturing 711 Industries 113 Forestry and Logging 516 Internet Publishing and Broadcasting 331 Primary Metal Manufacturing 483 Water Transportation 313 Textile Mills 533 Lessors of Nonfinanciallntan ible Assets Source:ADE,WPLAN In addition to the omission of the public sector, several other sectors were intentionally excluded from the table as they are predominantly locally-serving non- Applied Development Economics,Inc. 73 95 FIGURE 6 1400 STRUCTURE OF INDUSTRY CLUSTERS Technology Human ources � � Regulatory& Adv PhysicalFQ-lity of Life ResTax Climate Infrastructure "Y !j Yi�4� M�'M I . *a xi The composition of each cluster, in terms of its member industries as defined by NAICS'codes, is based on an analysis of employment growth, employment concentration as measured by Location Quotient' (LQ) and an assessment of opportunities for growth both globally and locally Five industry clusters have been identified as economic growth opportunity areas. They include tourism and hospitality; food and beverage; construction, new media arts, electronics and alternative energy (see Table 5 below) 'NAICS,North American Industry Classification System 'The Location Quotient is a tool for Identifying a region s specialization relative to other regions or nations. It is used to determine which industries primarily export their goods,thereby generating wealth in the region. LQ is a measure of an industry's employment concentration. It is the ratio of a region s employment in an industry(for instance wine processing)as a share of total employment in that region(in this case,San Luis Obispo County) divided by the ratio of the larger region s employment in that industry(e.g.wine processing)as a share of total employment in that larger region(in this case,California) An LQ greater than 1 indicates that the study region (e.g.San Luis Obispo)more than meets the local need for that good or service and must be exporting excess goods or services outside the region. 1 Zg Applied Development Economics, Inc. 50 TABLE C-2 INCREASING ECONOMIC BASE: SAN LUIS OBISPO COUNTY Industry 2006 Employment L Food,Drink,Hospitality&Tourism Food Services&Drinking Places 10,275 1.48 Accommodation 3312 2.49 Beverage Product Manufacturing 1171 4.26 Including Wineries 1169 7.08 Amusement,Gambling&Recreation Industries 1215 1.12 Sporting Goods,Hobby,Book&Music Stores 1293 2.33 Infrastructure&Power Mining(except Oil and Gas) 106 2.48 Petroleum and Coal Products Mfg 175 1.8 Including Petroleum Refineries 166 2.09 Pipeline Transportation 19 1.15 Utilities 2118 5.76 Electronics Electrical Equipment,Appliance&Component Mfg 424 2.05 Including All Other Misc.Electrical Equip&Component Mfg. 386 18.01 Source:ADE,Inc.,IMPLAN Emerging Economic Base Industries Although the location quotients of the industries in this quadrant indicate a relative lack of specialization, the positive growth rates may be an encouraging sign and help to focus business attraction and expansion strategies TABLE C-3 EMERGING INDUSTRIES: SAN LUIS OBISPO COUNTY Industries 2006 Employment LQ Professional,Scientific and Technical Services 3935 0.63 Including Architects 347 1.77 Computer System Design 505 0.41 Lawyers 563 0.67 Engineering 745 1.04 Insurance Carriers 637 044 Data Processing,Hosting&Related Services 133 0.37 Motion Picture&Sound Recording Industries 352 0.36 Performing Arts,Spectator Sports&Related Industries 190 046 Support Activities for Transportation 125 0.24 Plastics&Rubber Products Mfg. 253 0.7 Including Un-laminated Plastic Profile Mfg 63 4.8 Other Plastics 115 0.69 Fabricated Metal Product Manufacturing 65 0.71 Including: Metal Tanks 58 5.1 Architectural&Structural Metals 119 0.49 Machine Shops 239 0.88 Other Fabricated Metal 215 1.87 Small Arms Manufacturing 99 43.17 Textile Product Mills 22 0.25 Source:ADE,Inc. Applied Development Economics,Inc. 75 97 TABLE 4 SAN LUIS OBISPO COUNTY EMPLOYMENT,2001-2007 2001 2001- 2007 2007 2007 2007 Empl.as a Empl,as a 2001 2007 Empl. Empl.% %of All %of Industry Sector Title Empl Empl Change Change Ind. Private S. TOTAL,ALL INDUSTRIES 102,200 109,100 6,900 6.8% 100.0% N/A TOTAL,PRIVATE SECTOR 79,400 86,300 6,900 8.7% 79.1%_ 100.0% _ Total Farm 4,900 4,500 -400 -8.2% 4.1% 5.2% Natural Resources,Mining and Construction 6,700 7,600 900 13.4% 7.0% 8.8% Manufacturing 7,400 6,100 1,300 -17.6% 5.6% 7.1% Durable Goods 4,200 3,300 -900 21.4% 30% 3.8% Machinery Manufacturing 900 800 100 11.1% 07% 0.9% Computer and Electronic Product Manuf 700 200 500 71.4% 0.2% 0.2% Nondurable Goods 3,100 2,800 300 -97% 2.6% 3.2% Food&Beverage&Tobacco Manuf. 1,100 1,600 500 45.5% 1.5% 1.9% Trade,Transportation and Utilities 18,800 21,000 2,200 11.7% 19.2% 24.3% Wholesale Trade 2,500 2,700 200 8.0% 2.5% 31% Retail Trade 13,100 14,200 1,100 8.4% 13.0% 16.5% Food and Beverage Stores 2,900 3,100 200 6.9% 2.8% 3.6% General Merchandise Stores 1,500 2,000 500 33.3% 1.8% 2.3% Transportation,Warehousing and Utilities 3,200 4,100 900 28.1% 3.8% 4.8% Utilities 1,700 2,400 700 41.2% 2.2% 2.8% Transportation and Warehousing 1,500 1,700 200 13.3% 1.6% 2.0% Information 1,800 1,400 -400 -22.2% 1.3% 1.60/a Financial Activities 3,800 4,700 900 23.7% 4.3% 5.4% Finance and Insurance 2,200 2,500 300 13.6% 2.3% 2.9% Real Estate and Rental and Leasing 1,600 2,200 600 37.5% 2.0% 2.5% Professional and Business Services 9,000 9,900 900 10.0% 9.1% 11.5% Educational and Health Services 9,600 11,100 1,500 15._6% 10.2% 12.9% Leisure and Hospitality 13,200 15,600 2,400 18.2% 14.3% 18.1% ' Arts, Entertainment,and Recreation 1,200 1,500 300 25.0% 1.4% 17% Accommodation and Food Service 12,100 14,100 2,000 16.5% 12.9% 16.3% Accommodation 2,900 3,700 800 27.6% 34% 4.3% Food Services and Drinking Places 9,200 10,400 1,200 13.0% 9.5% 12.1% Other Services 4,400 4,400 0 _ 0.0% 4.0% 5.10/0 Government 22,800 22,800 0 0.0% 20.9% N/A Source:ADE,Inc.,based on California Employment Development Department As Table 4 shows, in 2007, the two super-sectors Trade, Transportation and Utilities and Leisure and Hospitality accounted for 42 4 percent of SLO County's private sector economy Further, the employment gains in these sectors alone accounted for two- thirds of the county's total fob gains over the period. The most significant loss to the county's economy was the reduction in the Manufacturing sector from 9.3 percent of the total economy in 2001 to 7 1 percent in 2007 This 2.2 percent reduction accounted for the loss of 1,300 fobs with 2006 average annual wage of$40,805 This is particularly important given that 2006 average annual wages countywide were $26,634 The one standout among the Manufacturing sector was Food &Beverage&Tobacco Manufacturing which gained 500 fobs, an increase of 45.5 percent over 2001 employment levels. �wll�►' 26 Applied Development Economics, Inc. 48 TABLE C-5 DECLINING NON-BASIC INDUSTRIES. SAN LUIS OBISPO COUNTY Industries 2006 Employment L Miscellaneous Manufacturing 393 0.68 Chemical Manufacturing 121 0.22 Including Pharmaceuticals 91 0.31 Computer and Electronic Product Mfg. 396 0.19 Exception.Audio&Video Equip. Mfg. 220 3.97 Telecommunications 396 0.55 Apparel Manufacturing 194 0.38 Exception: Cut&Sew Apparel Mfg 193 9.88 Publishing Industries 483 0.76 Exception.Software Publishing 111 0.32 Furniture&Related Product Mfg 237 0.63 Non-Metallic Mineral Product Mfg. 188 0.61 Transportation Equipment Mfg. 169 0.2 Food Manufacturing 401 0.41 Source:ADE,Inc.,IMPLAN Applied Development Economics,inc. 77 99 Health, Education and Social Services The largest category of establishments includes businesses and organizations that provide health, education, and social services. Nearly 200 or slightly less than one- fourth of all Atascadero employers were in this category The Health, Education, and Social Services sector also had the greatest number of)obs. In 2007, total employment was slightly over 3,400 Total payroll was $39.5 million and the average annual wage was slightly less than $12,000 Arts, Entertainment and Recreation The economic growth potential of the arts and culture sector has yet to be realized in Atascadero As of 2007, only 10 establishments comprised this sector, employing 371 workers. Total payroll was $4 6 million and the average wage was slightly over $12,000 Accommodation and Food Services The accommodation and food services sector was comprised of 52 establishments employing 848 workers. Total annual payroll was $10 8 million. The relatively low average annual wage of$12,700 is due to the seasonal nature of tourism. In part due to its location along Highway 101 and its many interchanges, there are 47 restaurants that employ over 700 workers. Personal Services The personal services sector includes barber shops and beauty salons, day spas, dry cleaning and other laundry services, appliance and car repair shops and maintenance services for HVAC, pools and other types of equipment. This sector employed nearly 200 workers in 33 establishments and had a payroll of a little less than $5 0 million. Average annual wages were nearly $25,000 THE STRUCTURE OF THE SAN LUIS OBISPO COUNTY ECONOMY The health and vitality of Atascadero's economy is linked to that of the broader regional economy For this reason,we have analyzed the County's economic structure and dynamics The purpose of the trends analysis is to see what direction the economy is moving in, which industries are growing, which are shrinking, and what the relationships between industries are. Industries have different paths of growth. They respond in different ways to external forces. They have different markets, different suppliers, different labor force and space needs. Knowing the composition of your regional economy and understanding which industries are driving growth or decline, allows critical support organizations such as cities, chambers and economic development organizations to better target economic development resources. 24 Applied Development Economics,Inc. 46 IX. APPENDIX D: COMMUNITY FORUM HANDOUT IOOPringle Ave Ste 560,Walnut Creek,CA 94596 Web site address www.adeusa.com Phone number-(925)934.8712 CONTENT'; Participant Workbook Ax r-B J 2rn-v Pubic Vvl o, I,,s h a P 'mat .2-0 0 8 Mem,da M-M -6,eouppistia woll, lfok wraPiuo CADERO Applied Development Economics,Inc. 79 101 ■ The current and foreseeable economic conditions make it more challenging to promote the City and make it more imperative to communicate a clear marketing message. Based on an assessment of Atascadero's position and challenges in the market, it appears that the City can differentiate itself as a destination by promoting its authenticity based upon its history and local culture. Over time, additional physical attractions can also be added. C JOB PRODUCING INDUSTRIES THE CURRENT STRUCTURE OF ATASCADERO'S ECONOMY Atascadero's economy is comprised of businesses that provide goods and services to local, regional, and in some cases, international customers. These businesses also provide employment opportunities and wages for residents who then purchase goods and services. The greater the share of purchases made locally, by both businesses and employees, the greater the overall economic benefit to Atascadero In 2007, 835 employment establishments were located in Atascadero These establishments employed 8,822 workers and had an annual payroll of$293.3 million. (See Table 3, below) TABLE 3 ATASCADERO ESTABLISHMENTS,EMPLOYMENT,PAYROLL,AND WAGES, 2007 Establishments Employees Annual Payroll Average Wage Agriculture and Mining 9 65 $2,078,252 $31,973 Construction 163 877 $36,005,204 $41,055 Manufacturing,Wholesale Trade,Transport. 57 440 $16,050,940 $36,479 Retail Trade 103 1,352 $34,464,260 $25,491 Information 10 109 $3,803,064 $34,890 Finance and Real Estate 69 384 $14,789,920 $38,515 Management/Professional/Administrative 131 769 $126,486,797 $164,482 Health,Education&Social Services 199 3,411 $39,460,048 $11,568 Arts Entertainment and Recreation 10 371 $4,587468 $12,365 Accommodation and Food Services 52 848 $10,787,452 $12,721 Personal Services 33 196 $4,862,048 $24,806 TOTAL 835 8,822 $293,375,453 $33,255 Source:ADE,Inc.,based on data provided by CA Employment Development Department. Agriculture and Mining Agriculture and mining comprise dust 1 percent of total establishments and less than 1 percent of total employment and payroll. These establishments consist of manufacturing, support services and suppliers of agriculture and mining businesses Including food and beverage processors, veterinarians, metal fabricators and other suppliers. 22 Applied Development Economics,Inc. 44 %r, M >.: SMINEIn-,011M . Atascadero Economic Development Strategy Purpose As you can see in the timeline below we are nearing the end of the information gathering and quantitative analysis phase of the project.This public workshop marks the beginning of the goal development phase.The input collected today will help shape the economic development goals for Atascadero.We hope that this public workshop helps you understand the issues as well as the role you play in the City's economic future. Lastiy the public workshop is meant to help you get started on the collaboration and dialogue that will be needed to implement an economic develop- ment strategy Timeline 200S 2V09 s 5. x r i �r Applied Development Economics, Inc. 87 103 The City has the opportunity to stem the sales leakage in general merchandise and some of the specialty retail categories, as well as possibly auto sales, in the proposed retail centers at the De Rio/El Camino intersection as well as elsewhere along El Camino in the northern part of town. The Downtown represents the other mayor area of opportunity for retail development, including fine restaurants, additional specialty retail, and entertainment. The proposed Colony Square project would respond very well to these kinds of market opportunities. In addition, efforts to develop additional visitor-serving business, services, and events Downtown would help to support a moer diverse business mix. The significant spending capture for gasoline service stations in Atascadero indicates that the community serves as a stopover for travelers along Highway 101 and SR 41 However, there is a need to encourage increased overnight stays in Atascadero, which would lead to additional visitor spending in a wider range of businesses such as restaurants and specialty retail stores. In particular, a strong visitor trade could help bolster the apparel retail sector, which currently does not meet residents' needs for higher quality clothing. The problem, here is that Atascadero does not have sufficient market position to develop upscale department stores or a traditional regional mall. While it can meet many basic shopping needs of its residents with additional discount centers, it will be very difficult for the City to compete with Paso Robles and the City of San Luis Obispo for finer shopping opportunities It will need to rely to a large degree on local independent boutique apparel and specialty retail stores. These stores could concentrate Downtown, but without a traditional mayor anchor store, they will be hard pressed to generate sufficient traffic to be successful. Increased visitor spending could help this situation but that will require adding attractions in Atascadero to boost the length of visitor stays in the City B TOURISM Atascadero has commissioned the preparation of a separate Tourism Marketing Plan (TMP), which is anticipated to contain extensive analysis and recommendations for a comprehensive tourism development program. The City's efforts toward tourism promotion should be considered a major component of its overall economic development program. ADE has discussed preliminary elements of the TMP with the report's author This section of the Economic Development Strategic Plan provides a summary of key issues that ADE anticipates will be important as Atascadero considers strategies to improve the economic benefit it gains from tourism. Considering the inventory of attractions for visitors to San Luis Obispo County, and particularly the North County area, many of these are in other communities or 20 Applied Development Economics,Inc. 42 NNW W" I'lo""11W ,:eR„ d ."� Findings Atascadero has a few attractions that contribute to its quality of life.To attract tourists it will need to add to its existing offerings. *41W — Based on industrial growth in the region,Atascadero has job growth opportunities in these six areas. Applied Development Economics, Inc. 83 105 spending. The leakage comes from the limited number of other general merchandise „ ; stores in Atascadero, spending that currently leaves Atascadero for discount stores in other communities, and the total absence of specific store types such as department stores and warehouse clubs. The retail leakage in this category is significant, but recapturing these sales for Atascadero in some cases may require more market support than is available locally For example, warehouse clubs typically require a population base of 100,000 or more. Similarly, modern department stores seldom locate in a stand-alone site, but require an entire regional shopping center with several anchors together Such developments have occurred in Paso Robles but it is not clear that sufficient market support exists in North County for another regional mall. However, other kinds of general merchandise stores, such as big box discount centers, tend to have more independent location criteria and could be supported in Atascadero Moreover, a recent study completed by Buxton Group for Atascadero indicates that there is general merchandise leakage throughout the North County, so this appears to be a viable market opportunity for Atascadero Specialty Retail Group Atascadero has an overall net capture of retail spending in specialty retail stores, with Atascadero stores capturing more than $9 million of the nearly$16 million in total household spending in this category With more than $25 million in sales, this means that retail stores in Atascadero capture more than $16 million from customers other than Atascadero residents. The retail leakage totals about $6 million. The store categories that generate a net capture of regional sales include gift stores, sporting goods stores, office supplies, and miscellaneous specialty retail. Gift stores and sporting goods stores can capture significant spending from travelers and out-of-town visitors, while business-to-business transactions are significant customers for office supply stores The specialty retail store types with a leakage of retail spending include florists, book stores, photographic stores, and music stores. Food, Eating, and Drinking Group Atascadero has a significant net capture of regional sales in food-related retail stores. Overall,Atascadero stores in this category retain a very high proportion of local household spending, with only $13 million of retail leakage compared to $67 million in total spending. The vast majority of the retail leakage is in restaurants and eating places, although some of this is offset by fast food sales to travelers through town. The survey data indicates a higher proportion of local residents who choose to eat outside of Atascadero The main source of net retail capture is grocery stores. Building Materials and Home Furnishings Group The building materials and home furnishings group generates the largest net capture of regional sales and represents Atascadero's most significant concentration of retail 78 Applied Development Economics,Inc. 40 err+ �n.'0Y°52 d5 "si b'! q '""qy f'1• �ll+: • � i} "f` � #iuy� �. Goal Statements '.Second Group Session) A good goal statement should: Be focused on outcomes,not inputs. Be understood by different audiences—age groups,interest groups,etc. Inspires action, but is achievable Be measurable.. Examples r it's Applied Development Economics,Inc. 85 107 Building Materials and Home Furnishings Group Atascadero has a total of 46 establishments in the building materials and home furnishings group Together, these businesses generate about $83 million in annual sales. The vast majority of this total ($68 million) comes from home improvement stores such as building materials dealers, hardware stores, and home centers. Automotive Group Automotive group retailers generate approximately $101 million in annual sales This category has a total of 43 establishments in Atascadero Gasoline service stations account for more than half of the sales in this category, with more than $57 million in sales in 2007 Atascadero also generates sales from automobile dealerships that are relatively small compared to the household demand. Other Retail Groups Atascadero has a total of seven general merchandise stores. These stores include K- Mart, three drug stores, and other general merchandise stores that include variety stores. Together, these stores generate a total of$36 million in sales Specialty retail stores in Atascadero generate about $25 million in annual sales. Atascadero has a total of 78 establishments in this retail group Mayor specialty retail store categories represented in Atascadero include gift stores ($2 million), sporting goods stores ($3 million), books/stationery ($2 million), office supplies/computers ($8 million), jewelry ($2 million), and miscellaneous specialty retail ($8 million) '' Apparel stores constitute the smallest retail store group in Atascadero with 12 establishments and less than $4 million in annual sales. RETAIL LEAKAGE Retail leakage represents the mismatch between local market spending and the retail sales by Atascadero retail establishments. Leakage indicates both an existing shortcoming in terms of local retailers not meeting existing household demand, as well as an opportunity because unmet retail demand can create potential for new stores as well as sales expansions for existing stores. Conversely, those store categories with net capture of regional sales extend their market reach into the surrounding region. Overall, Atascadero's retail sales total of$338 million exceeds the local consumer spending total of$232 million. The sales leakage trend identified in the analysis shows a mixed trend as Atascadero is a net regional retail provider in specific retail store categories, but also generates significant retail leakage in other major store categories. The retail store categories where the sales exceed the local market spending attract a total net capture of$185 million in regional sales, while the retail store categories where sales fall short of local household spending generate a total of$79 million in retail leakage (See Figure 5) 16 Applied Development Economics,Inc. 38 ITEM NUMBER: C-2 DATE. 02/24/09 19� ■ 1979 Atascadero City Council Staff Report - City Manager's Office Adoption of Mission Statement for the City of Atascadero RECOMMENDATION Council adopt the Draft Mission Statement for the City of Atascadero DISCUSSION The City Council worked on drafting a mission statement for the City during the Council's Strategic Planning Workshop held January 28-29, 2009 The Council began by asking themselves the following three questions (1) What business are we in? (2) What is our vision? (3) What are our core values? Based on the Council's comments, Staff created themes and used those themes to create a draft mission statement (see attachment) After review of the draft mission statement during the Strategic Planning Workshop, the Council directed Staff to bring the statement back to a regular Council meeting for final adoption FISCAL IMPACT None ALTERNATIVES The City Council may choose to revise the Draft Mission Statement. ATTACHMENT Draft Mission Statement 109 noted that not all of this spending occurs in Atascadero because neighboring communities provide retail offerings not available locally While local households constitute the primary shopping group within Atascadero, the community also draws spending from residents in surrounding communities, business- to-business transactions, travelers along Highway 101 and some overnight visitors. This distinction between spending and where it occurs will be discussed further in the section pertaining to retail leakage. Household spending among Atascadero residents is distributed across the full range of retail store categories The largest retail store spending categories are food-oriented stores and automotive businesses. Each of these retail store categories accounts for over $50 million in household spending. Building materials and general merchandise stores account for more than $24 million and $42 million in sales, respectively TABLE 2 SUMMARY OF RETAIL DEMAND AND LEAKAGE/REGIONAL SALES CAPTURE,2007($MILLIONS) Net Atascadero Capture Total Household Total Retail Leakage of of Household Spending to Sales in Household Regional Retail Group Demand Atascadero Atascadero Spending Sales Total $232.4 $153.2 $338.3 $79.2 $185.1 Apparel Stores $9.9 $2.0 $3.7 $7.9 $1.7 General Merchandise $41.9 $19 1 $35.7 $22.8 $16.6 Specialty Retail $15.5 $94 $25.5 $6.1 $16.1 v"Ole Food,Eating&Drinking $66.9 $53.6 $88.7 $13.3 $351 Building Materials&Home Furnishings $24.5 $174 $83.2 $7.1 $65.8 Automotive $73.6 $51.7 $101.5 $21.9 $49.8 Source:ADE,Inc. Food, Eating, and Drinking Group The food, eating, and drinking group consists of grocery stores, specialty food stores, and restaurants and other food service establishments Atascadero households generate an annual demand of approximately $67 million. Demand is primarily driven by grocery stores and restaurants. Automotive Group Automotive businesses include automobile dealerships, gasoline service stations, motorcycle and RV dealerships, auto parts stores, and other vehicle sales. This category generates an annual household spending total of approximately $74 million. The majority of this spending goes to automobile dealers and gasoline service stations, with more of the spending going to the dealerships. General Merchandise Group General merchandise stores include traditional department stores, discount stores, variety stores, warehouse clubs, and drug stores. Household spending in this category 4 Applied Development Economics,Inc. 36 ITEM NUMBER C-3 DATE. 02/24/09 X.- ® 19 8 Atascadero City Council Staff Report - City Attorney's Office Council Norms and Procedures 2009 Consideration of Amendments RECOMMENDATIONS Council 1 Review Council's suggested changes from Strategic Planning Workshop of January 29, 2009, amend if desired, and approve the Council Norms and Procedures 2009, and, 2 Give direction regarding revisions, if any, to the Council Norms with regard to electronic communications by Council Members DISCUSSION. The City Council reviewed, and made some changes to, the Council Norms and Procedures 2007 at the Strategic Planning Workshop on January 29, 2009 The Council directed staff to bring the document back to a regular Council meeting to allow the Council to review the changes suggested at the Strategic Planning Workshop, make more changes if necessary, and approve the document for 2009 A Draft of Council Norms and Procedures for 2009 is Attachment 5 to this Report. This Report shall also discuss the subject of communications to and from City Council Members with each other and with members of the public through electronic methods including email and websites Attachments 1 to 4 to this Report pertain to the subject of electronic communications as referenced in the Report. The legal issues addressed in this Report also apply to Commissioners I. Electronic Mail (E-Mail) A. Introduction The Brown Act applies certain requirements to communications between City of Atascadero ("City") officials, including Councilmembers, Planning Commissioners, and Parks and Recreation Commissioners This law requires particular communications to be made during open and noticed public meetings This Memorandum will explain how 111 The analysis below provides a background context from which discussion of planning initiatives can begin. The retail market analysis consists of two main parts an estimate of household retail spending and a comparison of overall spending potential with sales by Atascadero retail establishments. The household retail spending totals are calculated using an analytical model developed by ADE The taxable sales data is an annual total listed by retail category The businesses listed in the analysis encompass all of the retail businesses operating in the City of Atascadero The retail sales data comes from the California State Board of Equalization sales tax allocation records, and the data was audited by Hinderliter deLlamas Associates. Because certain retail items, such as food and prescription drugs, are not taxable, the analysis includes a conversion that calculates nontaxable sales. As described later in this section, retail leakage represents the gap between local household spending and retail sales by local retail establishments This leakage represents an existing shortfall, as well as an opportunity for both retail expansion and possible business attraction. ATASCADERO'S RETAIL SETTING According to the California Department of Finance, the City of Atascadero has a population of just under 27,000 household residents,with nearly 7,300 households. Inflation-adjusting annual income for Atascadero households based on the 2000 Census resulted in an approximate current household income of$66,000 However, data from the Atascadero Household Survey found that responding households had an annual ' income closer to $84,000, while the UCSB Economic Forecast Project estimates that the 2007 average household income was about $70,000 with an average family income of nearly$78,000 Given the broad range of estimated incomes, ADE used a midrange figure to calculate retail demand. REGIONAL COMPETITION Atascadero's retail sector has historically been overshadowed by the more visible and prominent retail centers in Paso Robles and San Luis Obispo Because those retail centers feature more well-known stores, many of which serve more upscale shoppers, Atascadero's retail offerings do not appear as attractive on the surface. Atascadero's strengths are with local-serving retail categories, as well as home improvement stores and highway commercial uses. The competing regional centers in Paso Robles and San Luis Obispo feature large concentrations of stores in apparel, specialty retail, and general merchandise stores. In Paso Robles, the 300,000 square-foot Paso Robles Town Center and the 312,000 square-foot Woodland Plaza II, together present formidable competition in very close proximity to Atascadero ' These competing centers are significant because they are 'National Research Bureau;Shopping Center Directory;2006 Edition. 12 Applied Development Economics, Inc. 34 ITEM NUMBER C-3 DATE 02/24/09 and B contacts member C, and C contacts member D, and so on, until a majority has been involved in deliberations or reaches a collective concurrence See Wolfe v City of Fremont (2006) 144 Cal.App 4th 533 A hub and spoke communication occurs when a person contacts at least a majority of the members of the legislative body which results in deliberations or a collective concurrence on an action to be taken by the legislative body 1 Chain Communications Some communications can violate the Brown Act because they are "chain" communications In these communications, one Member of the Council or Commission would speak or email to a second member to communicate an opinion on a matter That member would then extend the "chain" by contacting a third member and informing her or him about the opinions already shared until a majority of the body engaged in deliberations or a collective concurrence has been developed For example, it is a violation if Commission Member A calls Member B to share background information on a project and to tell B how A will vote, and B then emails C explaining the information and sharing B and A's planned votes, and C calls D to share the information and the votes of the previous three as well as her own vote If there are deliberations or a collective concurrence by a majority of the body as a result of these communications, then there has been a violation of the Brown Act. 2 Hub and Spoke Communications Some communications can violate the Brown Act because they are "hub and spoke" communications In these communications, an intermediary (the "hub") speaks or emails with Members (the "spokes") and communicates what one person said to others on the body If, through this series of communications, the majority of the body reaches a collective concurrence, then there has been a violation of the Brown Act. For example, if a person speaks to Council Members A, B, C, D, and E, all separately and during these conversations there is deliberation or a collective concurrence of a majority of the body, then there has been a violation of the Brown Act. E Emails to Establish a Collective Concurrence Using email can potentially develop a collective concurrence Covered officials must be extremely careful when using email, except to pass along general information For example, officials should refrain in emails from stating or taking a position on matters that may come before the agency A sender can never predict where or in how many "in" boxes an email may end up If Council Member A emails Member B stating how Member A is planning to vote on an agenda item on the next week's calendar, and Member B does not respond, there is no violation of the Brown Act because there has not been deliberations or a collective concurrence by a majority of the body However, because the Member A has no control over who Member B emails next -- and what Member B says in that email — members should not state their opinions in emails because of the risk of involvement of NOW a majority of the body 113 FIGURE 4 ATASCADERO ECONOMIC STRATEGY TIMELINE i�: • January—May, 00• Work Program PUIJHC Inp Interviews. ADE interviewed 30 business executives and community leaders in June, 2008 to obtain insights into current and future economic development issues. The interviews provided key information required for the completion of an analysis of Atascadero's economic strengths, weaknesses, opportunities and threats The interviews also helped with the development of a community profile that will be used to market Atascadero's strengths and opportunities to the outside world. Focus Groups. Also in June, ADE facilitated four focus groups to better understand the trends and issues driving change in Atascadero's businesses and social service organizations. Each focus group addressed a different set of organizations. These groupings were: new media, tourism and hospitality; small business; and, community services and growth management. Information obtained from these focus groups was used to further develop the SWOT analysis which can be found on pages 43 and 44 Household Retail Shopping Survey In early July, a household retail shopping survey was mailed to every residence in Atascadero (See Appendix B for a summary of survey findings and a copy of the original survey) The survey findings were used to more accurately describe existing shopping patterns and to help determine the future retail opportunities for Atascadero Public Forum. On November 22, ADE facilitated a public forum at the new community center Approximately 70 persons attended. The purpose of the community forum was to begin the process of developing goal statements for the economic development strategy The last section of this plan includes many of the goal statements first articulated at that public forum. Appendix D includes the handout prepared for that forum. p Applied Development Economics, Inc. 32 ITEM NUMBER. C-3 DATE. 02/24/09 Attachment 3 is a copy of a paper by City Attorneys Natalie West and Michael Jenkins on email issues and tips for avoiding problems with use of email, November 2003 Attachment 4 is the Opinion of California Attorney General No 00-906 issued February 20, 2001 on local public agency use of emails and concludes that a majority of the board members of a local agency may not e-mail each other to develop a collective concurrence without violation the Brown Act even if the emails are posted on the agency's website or printed copies of the e-mails are reported at the next public meeting of the agency Ii Website and Blogs A. Introduction This section of the Report analyzes the potential legal issues relating to the operation and use of websites including, but not limited to, "blog" websites, by Council Member and Commissioners This Report also defines and describes personal use of websites and blogs and analyzes the issues that this technology can raise for the Council and Commissions B Common Questions 1 What is a personal website? What is a blog? A personal website is operated by an individual, usually on a not-for-profit basis The individual uses the website to post information, opinion, and other content (e g , photos) for viewing by internet users The individual has sole control over the content of the website and the website A blog can be a personal website or a single "page" on a larger website, usually hosted by a for-profit company, on which an individual can express thoughts, opinions, and report on facts Blogs are not checked by editors, and the primary user (the "bloggel") has sole control over the blog's content (though the for- profit companies may have some rules about use of the blogs) Many blogs allow readers to leave comments on the items posted by the blogger; some blogs are "closed" and do not allow comments See further discussion in Section C, below 2 Does the use of a personal website or blog violate the Brown Act? Not on its own, no On its own, the use of a personal website or blog by a Council Member or Commissioner does not involve communications that tend to develop a collective concurrence outside a noticed public meeting and thus would not violate the Brown Act. However, and similar to the use of other technology by Council Members and Commissioners, once opinions on a matter are posted to the internet, the poster loses control of who else views those opinions Thus, blogging and personal websites create a greater possibility for the development of a collective concurrence outside a public meeting than would exist without use of these technologies Still, the technologies, in and of themselves, do not violate the Brown Act. See further discussion in Section D, below 115 While residential uses are the highest revenue generators, they also require the highest , expenditures for services. For the Atascadero General Fund, it is estimated that residential neighborhoods require a combined total of about $16 5 million in police and fire protection, street maintenance, parks and recreation and other community services (Figure 2) Relatively little service demand is created by non-residential uses, although police protection of retail centers accounts for much of the service cost for commercial uses. FIGURE 2 TOTAL ANNUAL GENERAL FUND EXPENDITURES IN ATASCADERO BY LAND USE $16,000,000 —- ---- ------- $14,000,000 $13,561,309 $12,000,000 y $10,000,000 L !a $8,000,000 O $6,000,000 $4,000,000 , $1,955,410 $2,000,000 $158,604 $59,319 Single Family Multi-Family Commercial Industrial Lodging Land Use Source:ADE,Inc. The net effect, then, is that non-residential uses generate about $4 7 million annually in surplus revenue over costs for the City General Fund, which the City uses to help pay for services to the residential neighborhoods (Figure 3) This is very typical of most California cities and demonstrates one of the primary benefits of economic development. In Atascadero, this analysis particularly illustrates the benefit of sales tax producing businesses. However, if the City had stronger tourism and industrial sectors, these types of businesses would also contribute significant revenues toward the cost of the services in Atascadero While industrial development may not provide a significant net fiscal benefit in terms of property and sales tax, the number and quality of fobs located in the City provides a significant positive economic impact. Workers' wages are spent at local shops and restaurants and provide a positive multiplier effect for the entire community Businesses purchase supplies from nearby businesses, further enhancing the multiplier effect. 8 Applied Development Economics,Inc. 30 ITEM NUMBER C-3 DATE. 02/24/09 completely unregulated, regulated by requiring users to sign up for an account,3 or regulated by the poster/blogger having to moderate and approve any comment before it appears on the website Different issues may arise out of each type of comment system D Use of Personal Websites and Blogs and the Brown Act As a brief reminder, the Brown Act requires that any "meetings of the legislative body of a local agency shall be open and public, and all persons shall be permitted to attend any meeting of the legislative body "4 For purposes of the Act, "legislative body" includes appointed commissions 5 The purpose behind the Brown Act, as originally adopted and as it remains today, is to make sure that actions of public agencies — including their deliberations - are taken in open and public meetings where all persons are permitted to attend Under the Act, a "meeting" includes any use of direct communication, personal intermediaries, or technological devices which are employed by a majority of the members of the legislative body to develop a collective concurrence 6 As noted in the discussion earlier in this Report regarding email, there is a risk that the use of email can lead to seriatim meetings and collective concurrences to occur Since the use of email can potentially develop a collective concurrence, covered officials must be extremely careful when using email, except to pass along general information For example, officials should refrain in emails from stating or taking a position on matters that may come before the agency A sender can never predict where or in how many "in" boxes an email may end up The same is true for personal websites and blogs -- the poster can never know who will read his thoughts and opinions or who may act on them The following is an example of emails causing a problem can that has been adapted to apply to use of these new technologies Council Member A posts on her personal website or blog about an item coming before the City Council on the next week's calendar, and the tone of the posted comments indicates that Member A is likely opposed to the item Council Members B and C do not respond to Member A, but Member B emails Member A's posted thoughts to Member C Members B and C then realize that they most likely have a three-person concurrence against the item While Member A was unaware that his thoughts were part of the deliberations by Members B and C, his blog may have created the basis for a collective concurrence by a majority of the body s This is more common with blogs, where the for-profit companies allow this feature It would be unwieldy for an individual running a private website. 4 Government Code §54953(a). 5 Government Code §54952(b) Vr' 6 Section 54952.2(b), see also Op Cal.Atty Gen. No 00-906 (2001) See Attachment 4 117 ,r t' Community vlw- QUALITY '7104, OF LIFE The ultimate purpose for economic development is to improve the quality of life for its residents In most communities, this means improved educational opportunities, recreational facilities, public safety, and utilities. It also means choice in safe travel options (bicycling, transit, car,walking), attractive neighborhoods and shopping districts, diverse opportunities for entertainment and recreation. .LOBS AND ECONOMIC PROSPERITY Another key purpose of economic development is to provide a range of career opportunities that allow workers to increase their income and standard of living over time and to enable the businesses that employ them to continue to succeed. Thriving businesses provide stability not only for their employees, but also for the communities in which they are located. By supporting the growth of businesses, a community is supporting its own sustainability Local jobs allow for shorter work commutes and greater re-cycling of dollars within the community SHOPPING, ENTERTAINMENT,ARTS A community is often valued for the selection and quality of its shops, entertainment and cultural venues and recreational opportunities. The combination of these often defines the community as a place and dust as importantly how it is perceived by both residents and the outside world alike. These amenities are often what residents become attached to or identify with in addition to their places of worship, volunteer activities and work. An economic development strategy recognizes this and includes strategies for enhancing these aspects of the community Doing so tends to have direct positive impacts on the local economy as increased spending on entertainment supports other businesses, including restaurants, lodging, and specialty retail. 6 Applied Development Economics, Inc. 28 ITEM NUMBER C-3 DATE 02/24/09 the scheduled public meeting, sometimes anonymously, so the weight to be given the comments by the body cannot be accurately judged This could create Brown Act issues, disclosure of ex parte communications issues, and prejudgment issues There might also be CEQA issues because if the blog or website features an item that has a draft EIR pending, the comments on the item might be deemed to be comments to which the City has to formally respond before certifying the final EIR. 3 Public Records Act There is an open question as to whether public statements on a website would rise to the level of documentation that the City must make available in response to a request for public records Also, if an official relies on any public comments written on a blog to formulate a vote on an item, those comments could themselves be deemed to be public records subject to disclosure in a response to a Public Records Act request. This is not an issue is clearly answered by the statutes or court cases, but it is one that has the attention of other cities that are looking at blogs and personal websites 4 First Amendment If the official uses a personal website or blog as a way to disseminate information but also to receive public comment, then there is a potential for the site to be an "open forum" for City business such that the First Amendment could apply to comments made there and the official could be limited in his ability to restrict or censor offensive comments This goes to the allowing or not allowing of comments at all Were the official to disallow comments such that nobody could respond to posted information, then no issue would arise The blog or websites would simply be an "information only" one with no forum created However, if the official allows any comments at all, caution needs to be taken not to infringe on the First Amendment rights of commentators 5 Confidential Information There is the possibility that the official could inadvertently release drafts or confidential information While this possibility exists any time a Commissioner or Council Member receives drafts and confidential information, the potential for a website or blog to disseminate information quickly and to a widespread audience of unknown recipients makes the potential for harm arising out of such dissemination greater for a blogger than for one who is not active on the internet. An official will need to be very careful that any information put on a personal website or blog is information that is intended to be public at the time it is shared Once information gets onto the internet, it is difficult to erase it forever 7 There are caching websites that take "snapshots" of other websites and then archive the information available on those sites on a day-by-day basis Much of the information is available to the public at no charge, some more sophisticated caching websites charge premiums for information that the original site has tried to have removed from the public sphere 119 "This page intentionally left blank" q Applied Development Economics,Inc. 26 ITEM NUMBER C-3 DATE. 02/24/09 ATTACHMENT 1 Government Code Section 54952 As used in this chapter, "legislative body"means: (a) The governing body of a local agency or any other local body created by state or federal statute (b) A commission, committee, board, or other body of a local agency, whether permanent or temporary, decisionmaking or advisory, created by charter, ordinance, resolution, or formal action of a legislative body However, advisory committees, composed solely of the members of the legislative body that are less than a quorum of the legislative body are not legislative bodies, except that standing committees of a legislative body, irrespective of their composition, which have a continuing subject matter jurisdiction, or a meeting schedule fixed by charter, ordinance, resolution, or formal action of a legislative body are legislative bodies for purposes of this chapter (c) (1) A board, commission, committee, or other multimember body that governs a private corporation, limited liability company, or other entity that either* (A) Is created by the elected legislative body in order to exercise authority that may lawfully be delegated by the elected governing body to a private w corporation, limited liability company, or other entity (B) Receives funds from a local agency and the membership of whose governing body includes a member of the legislative body of the local agency appointed to that governing body as a full voting member by the legislative body of the local agency (2) Notwithstanding subparagraph (B) of paragraph (1), no board, commission, committee, or other multimember body that governs a private corporation, limited liability company, or other entity that receives funds from a local agency and, as of February 9, 1996, has a member of the legislative body of the local agency as a full voting member of the governing body of that private corporation, limited liability company, or other entity shall be relieved from the public meeting requirements of this chapter by virtue of a change in status of the full voting member to a nonvoting member (d) The lessee of any hospital the whole or part of which is first leased pursuant to subdivision (p) of Section 32121 of the Health and Safety Code after January 1, 1994, where the lessee exercises any material authority of a legislative body of a local agency delegated to it by that legislative body whether the lessee is organized and operated by the local agency or by a delegated authority Government Code Section 54952.2 121 The Downtown Revitalization Strategy adopted by the City in 2000 has a number of excellent proposals. The San Simeon earthquake has necessarily diverted the City attention with regard to the Rotunda but it would be important for the City to continue its focus on implementing these ideas In particular, the Downtown would benefit from more mixed use development. This would not only create more nighttime activity to support local businesses but it would help to increase the property values in Downtown and lead to the opportunity to implement more consistent architectural design themes to enhance the visual character of the Downtown core Over the longer term, greater focus needs to be placed on redeveloping some of the existing uses in proximity to the Sunken Gardens so that this amenity can provide a more significant gathering place. Enhancing Atascadero Creek as a pedestrian feature and a setting for outdoor restaurant seating or small art boutiques, as well as increasing building intensities on the north side of Sunken Gardens, would help to create more of a visitor friendly commercial core in the City Once these kinds of projects have been implemented, redevelopment of the Junior High School site could create another mayor focal point in Downtown. The City should recognize that in order to achieve greater density of activity in Downtown, it may need to consolidate some of the existing strip commercial along El Camino Real. It may also wish to consider constraining the travel lanes on El Camino through Downtown to maximize public and pedestrian space as well as to create opportunities for innovative building designs to complement the public features at Sunken Gardens and the Rotunda site. TOURISM DEVELOPMENT The City's recent Tourism Marketing Plan emphasizes the idea that Atascadero is best served by promoting its authenticity This certainly means marketing its existing attractions such as the Zoo, Lake Park, the historic Downtown and the Chalk Mountain Golf Course as well as developing additional attractions such as an Arts Colony and entertainment venues While Downtown presents a significant opportunity to enhance visitor attractions in Atascadero, it is by no means the only opportunity The proposed Eagle Ranch annexation area could support a major new attraction for Atascadero such as an equestrian center that would host frequent events on various horse enthusiast circuits. Other kinds of resort attractions may also be possible on this property, with the key being to find ways of inducing visitors to stay longer in Atascadero and to utilize existing and new lodging and restaurants in the City One consideration is the fact that many visitors to North San Luis Obispo County are attracted to the many wineries in the area. While the center of this activity is in Paso 2 Applied Development Economics,Inc. 24 ITEM NUMBER C-3 DATE. 02/24/09 Government Code Section 54953 (a) All meetings of the legislative body of a local agency shall be open and public, and all persons shall be permitted to attend any meeting of the legislative body of a local agency, except as otherwise provided in this chapter (b) (1) Notwithstanding any other provision of law, the legislative body of a local agency may use teleconferencing for the benefit of the public and the legislative body of a local agency in connection with any meeting or proceeding authorized by law The teleconferenced meeting or proceeding shall comply with all requirements of this chapter and all otherwise applicable provisions of law relating to a specific type of meeting or proceeding (2) Teleconferencing, as authorized by this section, may be used for all purposes in connection with any meeting within the subject matter jurisdiction of the legislative body All votes taken during a teleconferenced meeting shall be by rollcall (3) If the legislative body of a local agency elects to use teleconferencing, it shall post agendas at all teleconference locations and conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties or the public appearing before the legislative body of a local agency Each teleconference location shall be identified in the notice and agenda of the meeting or proceeding, and each teleconference location shall be accessible to the public During the teleconference, at least a quorum of the members of the legislative body shall participate from locations within the boundaries of the territory over which the local agency exercises 1%W jurisdiction, except as provided in subdivision (d) The agenda shall provide an opportunity for members of the public to address the legislative body directly pursuant to Section 54954.3 at each teleconference location (4) For the purposes of this section, "teleconference" means a meeting of a legislative body, the members of which are in different locations, connected by electronic means, through either audio or video, or both Nothing in this section shall prohibit a local agency from providing the public with additional teleconference locations (c) No legislative body shall take action by secret ballot, whether preliminary or final (d) (1) Notwithstanding the provisions relating to a quorum in paragraph (3) of subdivision (b), when a health authority conducts a teleconference meeting, members who are outside the jurisdiction of the authority may be counted toward the establishment of a quorum when participating in the teleconference if at least 50 percent of the number of members that would establish a quorum are present within the boundaries of the territory over which the authority exercises jurisdiction, and the health authority provides a teleconference number, and associated access codes, if any, that allows any person to call in to participate in the meeting and that number and access codes are identified in the notice and agenda of the meeting (2) Nothing in this subdivision shall be construed as discouraging health authority members from regularly meeting at a common physical site within the jurisdiction of the authority or from using teleconference locations within or near the jurisdiction of w.•r the authority A teleconference meeting for which a quorum is established pursuant to this subdivision shall be subject to all other requirements of this section 123 I-wo, Iwo# Attachment 2 2007 City Attorney Spring Conference May 3,2007 THE RALPH M. BROWN ACT California' s Open Meetings Law I',ileen Monaghan Teichert City Attorney, City of Sacramento (916) 808-5346 sac . — --- —125— Nw� �.Wo collective concurrence via e-mail cannot avoid a violation by posting the e-mails to a publicly accessible website. 84 Ops.Cal.Atty Gen.30(2001).The hub-and-spoke violation occurs when a staff member(the hub)communicates with members of a legislative body(the spokes)one by one for a decision on a proposed project and, in the process, reveals information about the members respective views.Stockton Newspaper Inc. v Redevelopment.4gency(1985) 171 Cal. App 3d 95, A legislative body member does have the right, if not the duty,to meet with constituents to address their concerns. That member also has the right to engage in one-on-one discussions with staff on matters before the body where mere policy-related informational exchanges occur Wolfe v City of Fremont(2006) 144 Cal App 4th 533 However, if several one-on-one meetings or conferences leads to a"collective concurrence as to action to be taken"among a majority,the I Brown Act has been violated.Id. In one case,a violation occurred when a quorum of a city council directed staff by letter on an eminent domain action. Common Cause v Stirling(1983) 147 Ca1.App.3d 518. On the other hand, a unilateral written communication to the legislative body,such as an informational or advisory memorandum, does not violate the Brown Act.Roberts v City of Palmdale(1993) 5 Cal. 4th 363 Such a memo,however,may be a public record.Sec.54957.5(a) B. What is Not a"Meeting"under the Brown Act? The attendance of the majority of the members of a legislative body at the following gatherings does not constitute a meeting provided that a majority of the members do not discuss, other than as part of the scheduled program or meeting,business of a specific nature within the subject matter jurisdiction of the local agency These gatherings include; (1)a conference open to the public that involves a discussion of issues of general interest,(2)an open and publicized `%W meeting organized to address a topic of local community concern by a person or organization other than the public agency,(3)an open and noticed meeting of another body of the local agency or of a legislative body at another local agency,(4)a purely social or ceremonial occasion, or(5)an open and noticed meeting of a standing committee of that body,where attending as observers. Sec. 54952.2(c) Again,these exceptions apply so long as no business is discussed among the members. A hearing officer whose duty it is to deliberate alone does not have to do so in public.Since the Act uniformly speaks in terms of collective action,and because the term"meeting,"as a matter of ordinary usage,conveys the presence of more than one person, it follows that two or more persons are required in order to conduct a"meeting"within the meaning of the Act.Roberts v City of Palmdale(1993)5 Cal 4th 363 Meetings between county staff members and representatives of solid waste haulers at which ideas were exchanged regarding possible boundaries for exclusive service areas and possible methods for establishing the rates for collection services were not subject to the Brown Act where any proposals formulated at these meetings would be presented to and reviewed by the board of supervisors for formal approval and adoption at an open and noticed meeting. 89 Ops.Cal.Atty Gen.241 (2006) C. Meeting Types 1 Regular meetings."Regular meetings"are meetings occurring at the dates,times and locations set by resolution,ordinance or other formal action by the legislative body and are subject to 72 hour posting requirements. Sec.54954(a). 7 --- ------- --127 FISCAL IMPACT There is no financial impact as a result of this report. ATTACHMENT Attachment A. Report of Findings 18 all too easily be evaded i3 The Washington court then concluded that, "In light of the [Washington statute's] broad definition of 'meeting' and its broad purpose, and considering the mandate to liberally construe this statute in favor of coverage, we conclude that the exchange of e-mails can constitute a 'meeting Collective Concurrence In both the California attorney general's opinion and the Washington case, the analysis focused on problems inherent when elected bodies use e-mail as a way of arriving at a collective concurrence The question posed to the attorney general assumed that the e-mail was used for the purpose of deciding an issue "May a majority of the members e-mail each other to develop a collective concurrence as to action to be taken by the board?" The Washington court stated, "We recognize the need for balance between the right of the public to have its business conducted in the open and the need for members of governing bodies to obtain information and communicate in order to function effectively Thus, we emphasize that the mere use or passive receipt of e-mail does not automatically constitute a 'meeting. The Washington court's language seems to indicate that, in the view of that court, even an e- mail shared among all members of a legislative body would not violate open meeting requirements, as long as the e-mail is not circulated as a way of developing a collective concurrence outside the public forum. This is consistent with the authors' view that an e-mail sent by one council member to others, standing alone, does not constitute a serial meeting Nevertheless, the ease with which a sender can e-mail copies of messages to multiple recipients, hit "reply to all" on a return message and forward a message to other interested parties means that council members can easily communicate with more than a quorum of the ,,, council and may be developing a "consensus" without even realizing that there is a problem. Furthermore, an exchange of e-mails among council members is much closer to a contemporaneous exchange of ideas than a series of phone calls. A council would clearly risk violating the Brown Act if a majority of its members participated in an online chat room at the same time An exchange of e-mails can be almost as simultaneous as a chat room, if council members are seated at their computers, sending and receiving e-mails during the same period of time For these reasons, it is important for council members to clearly understand the risks they are taking if they rely on e-mail to ex-change information or points of view on city business. In particular, council members should be very careful to avoid serial meetings via e-mail. The "daisy chain" type of serial meeting occurs when a council member addresses an e-mail to another council member, expressing a view about an action to be taken by the council, and the recipient replies and copies the reply to one or more other council members sufficient to constitute and involve a quorum of the body in the serial development of a collective concurrence Serial meetings can also be of the "hub-and-spoke" variety, where a person, perhaps a staff member or a lobbyist, e-mails a council member asking for his or her views on a pending issue, and then communicates those views with other members of the city council in such a way that a quorum of the body has developed a collective concurrence through an intermediary before the issue is considered at a council meeting Given the vastly expanded use of e-mail, it is imperative that local officials understand and act in accordance with the requirements of the Brown Act. Nome LA#4850-1112 2691 v 1 129 ITEM NUMBER. B - 1 DATE. 02/24/09 City of Atascadero— CDBG Program Administration Funds Requested. $36,800 Recommended Funding: $33,200 Costs associated with the administration of the Community Development Block Grant program Significant staff time from Administration, Public Works and Administrative Services is required for grant administration, payment processing and coordination with County Planning staff FISCAL IMPACT Available funds are estimated at $183,000 for the 2009 cycle and $88,644 in reallocated prior year funds for total funding available estimated to be $271,644 ALTERNATIVES Council may modify the grant recommendations indicated However, awards must meet program requirements, providing a minimum of 70% of funding for benefit to low and moderate-income persons, and no more than 15% can be allocated to the public service category *0010 16 Tips for Avoiding Problems When Elected Officials Use E-Mail The convenience of e-mail can make it easy to get into trouble Consider these tips for council members. 1 Think carefully before responding to any e-mail, never reply when angry or in a bad mood. Don't make derogatory personal comments. 2. Refrain from replying to an e-mail if the reply will be directed to a majority of the council 3 Refrain from taking a position or making commitments on matters yet to be decided by the council, remember, even if you don't do it, your e-mail can be forwarded by others to a majority of the council 4 Refrain from giving instructions to staff under the managerial control of the city manager 5 If e-mailing the entire council, do so only to provide information, and do not solicit a response Do not communicate your position on a matter pending before the council to all other members of the council 6 Remember that when replying, you have no idea where (that is, in how many "in" boxes) your reply will end up, including the inbox of the editor of the local newspaper(and thereafter published in the local newspaper) VOW *r..' LA#4850-1112 2691 v1 131 ITEM NUMBER B - 1 DATE. 02/24/09 Atascadero Loaves and Fishes — Groceries for Needy Families Nape Funds Requested $10,000 Recommended Funding. $6,860 Loaves and Fishes operate an emergency food pantry for very low and low-income residents in Atascadero, Templeton, Santa Margarita, Creston and California Valley They are requesting funds to purchase groceries Bia Brothers/Bi Sisters — Mentoring Program Funds Requested. $5,000 Recommended Funding. $1,960 This organization is requesting funding to be used for Empowerment Training for at-risk children and their guardians and for volunteer training for Big Brothers and Big Sisters EI Camino Homeless Organization — Shelter Maintenance/Operation and Motel Vouchers Funds Requested $15,000 Recommended Funding. $12,740 ECHO provides shelter services to the homeless in Northern San Luis Obispo County, including Santa Margarita, Atascadero, Paso Robles, San Miguel, Creston and Shandon Between 25 and 30 people eat and sleep at the ECHO shelter each night. In the last fiscal year over 9,000 guests spent the night in the shelter and over 12,000 meals were served The ECHO shelter, intake process and all ancillary services are located at the First Baptist Church, 6370 Atascadero Avenue in Atascadero These funds would be used to pay for Shelter maintenance and operation Literacy Council — Atascadero Program Funds Requested. $4,000 Recommended Funding. $980 This organization is requesting funds to recruit and prepare volunteers as tutors The Literacy Council operates 14 centers throughout San Luis Obispo County This past fiscal year 505 tutors served 824 learners with 21,568 hours of tutoring Peoples' Self Help Housing Corporation — Homebuyer Education/Foreclosure Prevention Workshops Funds Requested $3,000 Recommended Funding. $980 Peoples' Self Help Housing Corporation is requesting funds to cover salary and operational expenses to provide Homebuyer Education and Foreclosure Prevention Workshops and individual counseling Peoples' has always provided Homebuyer Education to families participating in their self-help program, however, with the current sub-prime mortgage situation those services need to be expanded One new and one existing staff member have obtained HUD certification in this field 14 NVAW CONCLUSION A majority of the board members of a local public agency may not e-mail each other to develop a collective concurrence as to action to be taken by the board without violating the Ralph M. Brown Act even if the e-mails are also sent to the secretary and chairperson of the agency, the e-mails are posted on the agency's Internet website, and a printed version of each e-mail is reported at the next public meeting of the board. ANALYSIS The Ralph M.Brown Act(Gov Code,§§54950-54962,"Brown Act")t generally requires the legislative body of a local public agency to hold its meetings open to the public (§§ 54951, 54952, 54953, 54962 ) Agendas of the meetings must be posted (§§ 54954 1, 54954.2), and members of the public must be given an opportunity to address the legislative body on any agenda item of interest to the public (§ 54954 3) The purposes of the Brown Act are thus to allow the public to attend, observe, monitor,and participate in the decision-making process at the local level of government. Not only are the actions taken by the legislative body to be monitored by the public but also the deliberations leading to the actions taken. (See Roberts v City of Palmdale(1993)5 CalAth 363, 373, 375, Frazer v Dixon Unified School Dist (1993) 18 Cal.App 4th 781, 795-797, Stockton Newspaper, Inc. v Redevelopment Agency (1985) 171 Cal.App 3d 95, 100; Sacramento Newspaper Guild v Sacramento County Bd. of Suprs (1968)263 Cal.App.2d 41, 45 ) "The term `deliberation' has been broadly construed to connote `not only collective discussion, but the collective acquisition and exchange of facts preliminary to the ultimate decision.' [Citation.]" (Rowen v Santa Clara Unified School Dist. (1981) 121 Cal.App 3d 231, 234, see Roberts v City of Palmdale, supra, 5 Cal.4th at p 376 ) The question presented for resolution concerns e-mail messages between members of the board of a local public agency May a majority of the members e-mail each other to develop a collective concurrence as to action to be taken by the board without violating the Brown Act if the e-mails are sent to the secretary and chairperson of the agency, the e-mails are posted on the agency's Internet website, and a printed version of each e-mail is reported at the next public meeting of the agency? We conclude that such conditions would not be sufficient to prevent a violation of the Brown Act. The statute governing our discussion is section 54952.2,subdivision(b) which i All references hereafter to the Government Code are by section number only 2 00-906 133 ITEM NUMBER: B- 1 DATE. 02/24/09 if REALLOCATION OF PRIOR YEAR FUNDS 2006 CODE ENFORCEMENT BARRIER REMOVAL $23,294 2006 SENIOR VOLUNTEER SERVICES BARRIER REMOVAL $ 1,000 2007 GOOD SAMARITAN SHELTER BARRIER REMOVAL $50,000 2008 ADMINISTRATION BARRIER REMOVAL $14,350 DISCUSSION Background. Preparation of the 2009 CDBG Consolidated Plan began in the fall of 2008 Workshops were held throughout the County to solicit public comment on community needs The County published a request for CDBG proposals. The City received 11 applications for CDBG funds by the deadline The City has available an estimated $183,000 in 2009 CDBG funds and $88,644 in prior year funding recommended for reallocation. The reallocation of prior year awards is recommended for the following reasons • Code Enforcement — These funds were awarded for Code Enforcement activity in the Redevelopment Area, however meeting stringent CDBG requirements for reimbursement of these activities has proved to be very difficult. • Senior Volunteer Services — The activity to be provided with the grant funding, Caring Callers, is no longer provided by this organization • Good Samaritan Shelter — This award was intended for a feasibility study and pre-development costs for a homeless shelter facility Good Samaritan has experienced difficulty securing a site and has notified the City that the funding obligation can be released Good Samaritan has indicated they will reapply at a future cycle when they have secured a site • Administration —These are funds used for City staff time to administer the CDBG program The funds represent a remaining prior year balance and must be reallocated to avoid exceeding the 20% cap on Administration CDBG funds are available for community development activities, which meet at least one of the three national objectives 1 A benefit to low and moderate-income persons, 2. Aid in the prevention or elimination of blight; 3 Address urgent needs that pose a serious and immediate threat to the health or welfare of the community In order for a program to qualify under the low and moderate income objective, at least 51% of the persons benefiting from the project or program must earn no more than 80% of the area median Additionally, at least 70% of the CDBG funds must be spent toward this objective 12 1,,. in such circumstances furthers the "broad policy of the act to ensure that local governing bodies deliberate in public " (Roberts v City of Palmdale, supra, 5 CalAth at p 373, see Frazer v Dixon Unified School Dist, supra, 18 Cal.App 4th at pp 794-795, Stockton Newspapers, Inc v Redevelopment Agency, supra, 171 Cal.App.3d at p 100,Sacramento Newspaper Guild v Sacramento Countv Board of Suprs , supra, 263 Cal.App 3d at p 45) We recognize that the three conditions of(1)concurrently sending copies ofthe e-mails to the secretary and chairperson of the agency, (2) concurrently posting the e-mails on the agency's Internet website, and(3)reporting the contents of the e-mails at the agency's next public meeting would allow the deliberations to be conducted"in public"to some extent. Nevertheless, the deliberations would not be conducted as contemplated by the Brown Act. Members of the public who do not have Internet access would be unable to monitor the deliberations as they occur All debate concerning an agenda item could well be over before members of the public could be given an opportunity to participate in the decision-making process (See Frazer v Dixon Unified School Dist, supra, 18 Cal.App 4th at p 794, Cal. Dept. of Justice, The Brown Act,Open Meetings For Local Legislative Bodies,supra,p 12.) Subdivision (b) of section 54952.2 is straightforward and unambiguous The proposed conditions satisfy neither the specific language nor all the critical purposes of the statute We thus conclude that a majority of the board members of a local public agency may not e-mail each other to develop a collective concurrence as to action to be taken by the board without violating the Brown Act even if the e-mails are also sent to the secretary and chairperson of the agency, the e-mails are posted on the agency's Internet website, and a printed version of each e-mail is reported at the next public meeting of the board. 4 00-906 135 J J Council Norms and Procedures(20079) Page 2 of 8 COUNCIL VALUES • The Council and City Manager are a participatory team • The Council values high energy, open mindedness and achievement orientation • Council Members will care and have respect for each other as individuals • Council Members will be straightforward, with no hidden agendas • The City Council values humor • Traditions are respected, but not binding COUNCIL INTERACTION AND COMMUNICATION • Individuals are responsible to initiate resolution of problems A.S.A.P and not let them fester • City Council will not direct cheap shots at each other during public meetings, in the press, or any other place/time • Relationships are informal, but not casual in public [beware of impact on, and perception of, public] • Council Members will be flexible in covering for each other • Substantive Council / Manager items are to receive advance notice and public notification • Council Members that are the Complainant on an issue before the Council must declare their involvement in the issue before the item is reviewed by the Council • Council Committees - Committee areas belong to the whole Council, they are not seen as territorial - Committees are responsible to keep rest of Council informed, and other members are responsible for letting committee know if they want more information or to give input. 137 Council Norms and Procedures(200-79) Page 4 of 8 • Council will always be informed by staff when an unusual event occurs that the public would be concerned about, i e , anyone wounded by gunfire, area cordoned off by police or fire, etc • The Council and staff will not blind side each other in public, if there is an issue or a question a Council Member has on an agenda item, that member will contact staff prior to the meeting City Attorney • Contract Attorney will routinely forward relevant new legislation to the City Council • City Attorney shall be pro-active with Council, Manager and Staff when and where appropriate • City Attorney to regularly consult with Council on items of concern on upcoming agenda at the earliest time possible 'wae • City Attorney will track Commissions' actions, agenda of City Council and committees for needed input. • City Attorney to pro-actively inform and protect City Council Members from potential violations and conflicts COUNCIL OPTIONS FOR KEEPING INFORMED • Read Commission Minutes in order to find out what is being worked on • Read documents on Planning items • City Manager will discuss future Agenda topics with Council Members • Council members will do their homework. • There is extensive use of staff and commission reports, and commission minutes J • Regular meeting with City Manager 139 Council Norms and Procedures (20079) Page 6 of 8 • The level of detail in written responses will be selective • Generally, communications are acknowledged with discretion PUBLIC MEETINGS • City Manager sets the Agenda for regular City Council meetings — per the Ordinance • Public comment shall be received on all action items • Any Council Member can place an item on the agenda under Council Announcements and Reports • City Council mMembers will treat everyone equally and with courtesy • Corrections to minutes are passed to the City Clerk before the meeting • Each member may share his/her views about the issue and the reasons for his/her vote • Consent Calendar - There is judicious use of the Consent Calendar, such as minutes, routine City business, and things already approved in the budget. - If a Council Member has a question on a Consent Calendar item for their information only, they are to ask staff ahead of time, rather than having it pulled off for discussion during the meeting - Staff is prepared to report on every agenda item • Public Comment - Procedure will include Staff Report, questions from Council, applicant report, public comment, close Public Hearing, any staff response, and bring item back to Council for discussion - Once public comment is closed, further public input will not be allowed unless re-opened by Mayor 141 Council Member Kelley 1 Atascadero State Hospital Advisory Committee 11 2 Atascadero Youth Task Force Council Member O'Malley 1 Economic Vitality Corporation, Board of Directors (EVC) 2 League of California Cities — Council Liaison and CITIPAC Board Member 3 SLO Council of Governments (SLOCOG) 4 SLO Regional Transit Authority (SLORTA) E. INDIVIDUAL DETERMINATION AND /OR ACTION 1 City Council 2. City Clerk 3 City Treasurer 4 City Attorney a. Discussion Concerning Meetings and CA Govt. Code Section 54952.2 5 City Manager F 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, Victoria Randall, Deputy City Clerk of the City of Atascadero, declare under the penalty of perjury that the foregoing agenda for the February 24, 2009 Regular Session of the Atascadero City Council was posted on February 17, 2009 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 17th day of February, 2009, at Atascadero, California. Victoria Randall, Deputy City Clerk City of Atascadero 4 Council Norms and Procedures(200-79) Page 8 of 8 MUNICIPAL ELECTIONS • Will be discussed during Election Reform COMMISSIONS • Problem solving issues with commissions will be done as much as possible with chairs and vice chairs • Commission chairs meet quarterly with the Mayor and Mayor Pro Tem to provide feedback and be kept informed • Commission needs - To know Council vision, community vision, and General Plan 2025 - Understanding of their roles and authority - To know annual prioritized goals of the City Council NOW - All commissioners receive an annual training • Criteria for commissioner for re-appointment (and in extreme cases, removal) shall include - Issues of conflicts of interest. - Attendance (missing two meetings without excuse) - Support of General Plan - Respect for staff/public - Working for community versus personal purposes 143 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 DRAFT MINUTES Council meeting draft minutes are listed on the Consent Calendar for approval of the minutes Should anyone wish to request an amendment to draft minutes, the item will be removed from the Consent Calendar and their suggestion will be considered by the City Council If anyone desires to express their opinion concerning issues included in draft minutes, they should share their opinion during the Community Forum portion of the meeting ) 1 Supplemental Law Enforcement Services Fund ■ Fiscal Impact: No fiscal impact to the General Fund ■ Recommendation. Council approve the 2008/2009 Supplemental Law Enforcement Services Fund (SLESF) expenditure plan in the amount of $100,000 00 [Police] 2 Waste Water Collection System Infrastructure Repair Projects — Request for Appropriation ■ Fiscal Impact: $200,000 of Wastewater Fund reserves toward sanitary sewer manhole rehabilitation and sewer-line trench settling projects ■ Recommendation. Council authorize the Administrative Services Director to allocate $200,000 in Wastewater Funds toward sanitary sewer manhole rehabilitation and sewer-line trench settling projects [Public Works] COMMUNITY FORUM (This portion of the meeting is reserved for persons wanting to address the Council on any matter not on this agenda and over which the Council has jurisdiction Speakers are limited to three minutes Please state your name for the record before making your presentation 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 ) B PUBLIC HEARINGS 1 2009 Community Development Block Grant Allocation ■ Ex Parte Communications ■ Fiscal Impact: Available funds are estimated at $183,000 for the 2009 cycle and $88,644 in reallocated prior year funds for total funding available estimated to be $271,644 ■ Recommendation. City Council forward to the County Board of Supervisors allocation recommendations for the 2009 Community Development Block Grant (CDBG) funds [Public Works] 2