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CITY CLERK
{iris n is 9i� CITY OF ATASCADERO
CITY COUNCIL
AGENDA
Tuesday, February 22, 2011
City Hall
Council Chambers
6907 EI Camino Real, Atascadero, California
CITY COUNCIL CLOSED SESSION: 5:30 P.M.
1. CLOSED SESSION SION -- PUBLIC COMMENT
2. COUNCIL LEAVES CHAMBERS TO BEGIN CLOSED SESSION
3. CLOSED SESSION -- CALL TO ORDER
a. Conference with Labor Negotiators(Govt. Code Sec. 54957.6)
Agency designated representatives: Wade McKinney, City Manager
Employee Organizations: Atascadero Firefighters Bargaining Unit;
Atascadero Police Association; Service Employees International Union,
Local 620; Mid-Management/Professional Employees; Non-Represented
Professional and Management Workers and Confidential Employees
4. CLOSED SESSION -- ADJOURNMENT
5. COUNCIL RETURNS TO CHAMBERS
6. CLOSED SESSION -- REPORT
REGULAR SESSION — CALL TO ORDER: 6:00 P.M.
PLEDGE OF ALLEGIANCE: Council Member Sturtevant
1
ROLL CALL: Mayor O'Malley
Mayor Pro Tem Kelley
Council Member Clay
Council Member Fonzi
Council Member Sturtevant
APPROVAL OF AGENDA: Roll Call
PRESENTATIONS:
1. "Path to a Home — 10-Year Plan Progress" by Patricia Gomez,
Director, Homeless Services Oversight Council
2. Update on Historic City Hall Interior Finishes — by Stephanie
Kingsnorth, Pfeiffer Partners
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. City Council Draft Action Minutes — January 25, 2011
■ Recommendation: Council approve the City Council Meeting Draft
Action Minutes of January 25, 2011. [City Clerk]
2. Annual Review of Investment Policy & Approval of Amendments
■ Fiscal Impact: None.
■ Recommendation: Council adopt the Draft Resolution amending and
adopting the City of Atascadero Investment Policy. [Administrative
Services]
3. Historic City Hall Project Bid Awards: ACH-02 Penthouse Demolition
■ Fiscal Impact: $141,300 for the ACH-02 Penthouse Demolition services
for the Historic City Hall Project.
■ Recommendation: Council award bid to, and authorize the City Manager
to execute a contract with, Marcor Environmental in the amount of
$141,300 for the ACH-02 Penthouse Demolition services for the Historic
City Hall Project. [Administrative Services]
2
4. Alcoholic Beverage Control (ABC) License To Serve Beer and Wine -
PLN 2011-1394 / ABC 2011-0010 - 5990 Entrada (Vino Therapy Studio /
W son
■ Description: Request to allow an Alcoholic Beverage Control license for
the on-site sale of beer and wine at a new spa in the downtown.
• Fiscal Impact: None.
■ Recommendation: Council adopt Draft Resolution A finding that public
convenience or necessity would be served by allowing the issuance of a
Type 42 ABC license for the on-site sale of beer and wine at a new day
spa "Vino Therapy Studio" at 5990 Entrada. [Community Development]
UPDATES FROM THE CITY MANAGER: (The City Manager will give an oral report on
any current issues of concern to the City Council.)
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: None.
C. MANAGEMENT REPORTS:
1. 2011 Community Development Block Grants Funding Recomendations
■ Fiscal Impact: Available funds are estimated at $202,000 for the 2011
cycle.
■ Recommendation: Council review, and approve funding
recommendations for the 2011 Community Development Block Grant
(CDBG) program as shown below and approve adjustment of awards on
a proportional basis upon final receipt of the 2011 funding allocation from
the Department of Housing and Urban Development (HUD). [Public
Works]
2. Transit Center Design Update
■ Fiscal Impact: The total cost of this project is $825,000, to be funded
from Proposition 1 B funds and Public Transportation, Improvement and
Service Enhancement Account (PTMISEA) Grant funds through
SLOCOG, with potential contributions from the Redevelopment Agency.
■ Recommendation: Council receive for informational purposes the
conceptual drawings and provide any input as to additions or
modifications to the design. [Public Works]
3
3. Resolution in Opposition to the Governor's Proposal to Abolish
Redevelopment Agencies in California
■ Fiscal Impact: None. The abolishment of our Redevelopment Agency
would eliminate the Agency's General Fund, which is currently
$1,978,120.
■ Recommendation: Council adopt the Draft Resolution, in opposition to
the Governor's proposal to abolish redevelopment agencies in California.
[City Manager]
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 O'Malley
1. City/ Schools Committee
2. County Mayors Round Table
3. Integrated Waste Management Authority (IWMA)
4. League of California Cities — CITIPAC Board Member
5. SLO Council of Governments (SLOCOG)
6. SLO Regional Transit Authority (SLORTA)
Mayor Pro Tem Kelley
1. Atascadero State Hospital Advisory Committee
2. Atascadero Youth Task Force
3. City of Atascadero Design Review Committee
4. City of Atascadero Finance Committee
5. Economic Vitality Corporation, Board of Directors (EVC)
6. Homeless Services Oversight Council
Council Member Fonzi
1. Air Pollution Control District
2. City of Atascadero Design Review Committee
3. City of Atascadero Finance Committee
4. SLO Local Agency Formation Commission (LAFCo) - alternate
Council Member Sturtevant
1. City/ Schools Committee
2. Community Action Partnership of SLO County
3. League of California Cities — Council Liaison
4
E. INDIVIDUAL DETERMINATION AND/ OR ACTION:
1. City Council
2. City Clerk
3. City Treasurer
4. City Attorney
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 22, 2011 Regular Session of the Atascadero City Council was
posted on February 15, 2011, 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 15th day of February, 2011, at Atascadero, California.
r:
Victoria Randall, Deputy City Clerk
City of Atascadero
5
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 videotaped
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 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 approach the lectern and be recognized.
1. Give your name for the record (not required)
2. State the nature of your business.
3. All comments are limited to 3 minutes.
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
This is the time items not on the Agenda may be brought to the Council's attention. A maximum of 30 minutes will be
allowed for Community Forum (unless changed by the Council).
TO 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. You must approach the lectern and be recognized by the Mayor
2. Give your name (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
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 must be brought to the meeting on a USB drive or CD. 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.
6
ITEM NUMBER: A- 1
DATE: 02/22/11
JOE CITY OF A TA SCA DERO
CITY COUNCIL
®RAFT" MINUTES
Tuesday, January 25, 2011
City Hall
Council Chambers
6907 EI Camino Real, Atascadero, California
6:00 P.M.
City Council: 6:00 P.M.
Public Financing Authority: Immediately following the
City Council meeting
REGULAR SESSION — CALL TO ORDER: 6:00 P.M.
Mayor O'Malley called the meeting to order at 6:01 p.m. and Council Member Clay led
the Pledge of Allegiance.
ROLL CALL:
Present: Council Members Clay, Fonzi, Kelley, Sturtevant and Mayor
O'Malley
Absent: None
Others Present: City Clerk/ Assistant to City Manager Marcia McClure Torgerson
Staff Present: Assistant City Manager Jim Lewis, Community Development
Director Warren Frace, Public Works Director Russ Thompson,
Community Services Director Brady Cherry, Acting Police Chief
Steve Gesell, and City Attorney Brian Pierik.
CC Draft Minutes of 1/25/11
Page 1 of 7
7
ITEM NUMBER: A- 1
DATE: 02/22/11
APPROVAL OF AGENDA: Roll Call
MOTION: By Council Member Fonzi and seconded by Council Member
Sturtevant to approve the agenda.
Motion passed 5:0 by a roll-call vote.
A. CONSENT CALENDAR:
1. City Council Special Meeting Draft Action Minutes — December 28,
2010
■ Recommendation: Council approve the City Council Meeting Draft Action
Minutes of December 28, 2010. [City Clerk]
2. CitV Council / CommunitV Redevelopment AgencV Special Joint
Meeting Draft Action Minutes — December 28, 2010
■ Recommendation: Council approve the City Council / Community
Redevelopment Agency Special Joint Meeting Draft Action Minutes of
December 28, 2010. [City Clerk]
3. November 2010 Accounts Payable and Payroll
■ Fiscal Impact: $1 ,769,795.67.
■ Recommendation: Council approve certified City accounts payable,
payroll and payroll vendor checks for November 2010. [Administrative
Services]
Item #A-1: City Clerk Torgerson stated that she has amended the minutes by
completing the motion for the Appointment of Mayor Pro Tem that she accidently
omitted.
MOTION: By Mayor Pro Tem Kelley and seconded by Council Member
Clay to approve the Consent Calendar, including the amended
minutes in #A-1.
Motion passed 5:0 by a roll-call vote.
UPDATES FROM THE CITY MANAGER:
Assistant City Manager Jim Lewis gave an update on projects and issues within the
City.
CC Draft Minutes of 1/25/11
Page 2 of 7
8
ITEM NUMBER: A- 1
DATE: 02/22/11
COMMUNITY FORUM:
The following citizens spoke during Community Forum: Terry Mathis, Joan O'Keefe,
Mike Brennler (Exhibit A), Jim Wilkins, Lee Perkins, and Tom Comar.
Mayor O'Malley closed the COMMUNITY FORUM period.
B. PUBLIC HEARINGS:
1. PLN 2009-1328 / GPA 2009-0025 - Adoption of 2007 - 2014 Housing
Element - General Plan Land Use Element & Land Use Diagram Update
- ZCH 2010-0162 Zoning Code & Zoning Map Update (City of
Atascadero)
■ Ex Parte Communications:
■ Fiscal Impact: There is no fiscal impact in adopting the Housing Element;
however, implementation of related programs in the future will result in
yet undetermined costs to the City.
■ Recommendations: Planning Commission Recommends Council:
1 . Adopt Resolution A, certifying Proposed Negative Declaration 2010-
0005; and,
2. Adopt Resolution B, adopting the Atascadero 2007-2014 Housing
Element (PLN 2009-1328/ GPA 2009-0025) based on findings; and,
3. Adopt Resolution C, approving a General Plan Land Use Element
Update and General Plan Land Use Diagram Update (PLN 2009-
1328/ GPA 2009-0025) to allow a minimum density of 20 units per
acre in the High Density Residential Land Use Designation; and,
4. Introduce Draft Ordinance A for first reading, by title only, to approve
Zoning Code Updates (PLN 2009-1328/ ZCH 2010-0162) to change
RMF-16 to RMF-20 and update Zoning Ordinance definitions related
to housing, based on findings; and,
5. Introduce Draft Ordinance B for first reading, by title only, to approve
Zoning Map Update (PLN 2009-1328/ ZCH 2010-0162) to change
RMF-16 to RMF-20, based on findings. [Community Development]
Community Development Director Warren Frace gave the staff report and answered
questions from the Council. Consultant Lisa Wise and Steve Devencenzi of the San
Luis Obispo Council of Governments also answered questions from the Council.
PUBLIC COMMENT:
The following citizens spoke on this item: Mike Brennler
Mayor O'Malley closed the Public Comment period.
CC Draft Minutes of 1/25/11
Page 3 of 7
0
ITEM NUMBER: A- 1
DATE: 02/22/11
MOTION: By Mayor Pro Tem Kelley and seconded by Council Member
Fonzi to:
1. Adopt Resolution A, certifying Proposed Negative
Declaration 2010-0005; and,
2. Adopt Resolution B, adopting the Atascadero 2007-2014
Housing Element (PLN 2009-1328/ GPA 2009-0025) based
on findings; and,
3. Adopt Resolution C, approving a General Plan Land Use
Element Update and General Plan Land Use Diagram
Update (PLN 2009-1328/ GPA 2009-0025) to allow a
minimum density of 20 units per acre in the High Density
Residential Land Use Designation, including the following
amendments: to omit the word "attached," and to make the
maximum density 20, instead of 16; and,
4. Introduce Draft Ordinance A for first reading, by title only,
to approve Zoning Code Updates (PLN 2009-1328/ ZCH
2010-0162) to change RMF-16 to RMF-20 and update Zoning
Ordinance definitions related to housing, based on
findings, including the following amendments: it is a
maximum density of 20 residential units per acre, and to
make the maximum density 20, instead of 16; and,
5. Introduce Draft Ordinance B for first reading, by title only,
to approve Zoning Map Update (PLN 2009-1328/ ZCH 2010-
0162) to change RMF-16 to RMF-20, based on findings,
including the following amendment: to make the maximum
density 20, instead of 16 .
Motion passed 5:0 by a roll-call vote. (#1: Resolution No. 2011-
003, #2: Resolution No. 2011-004, #3: Resolution No. 2011-005)
C. MANAGEMENT REPORTS:
1. Transit / North County Shuttle Update
■ Fiscal Impact: Potential decreases in fare box revenue may require
modification to the City's transit system.
■ Recommendations: Council receive the information and provide staff with
any direction deemed appropriate. [Public Works]
Public Works Director Russ Thompson gave the staff report and answered questions
from the Council.
PUBLIC COMMENT: None
CC Draft Minutes of 1/25/11
Page 4 of 7
10
ITEM NUMBER: A- 1
DATE: 02/22/11
There was Council consensus to have staff write a letter to SLOCOG and RTA,
to be signed by the Council, stating that we would like RTA to
avoid duplication of service, and Atascadero would like to
continue the local transit route.
Mayor O'Malley recessed the meeting at 8:10 p.m.
Mayor O'Malley reconvened the meeting at 8:25 p.m.
2. Strategic Planning 2011 — Community Development and Economic
Development Issues
■ Fiscal Impact: Many of the programs and options discussed in this report
have a monetary or staff resource cost. Based on Council direction, staff
will address these costs in the draft 2011-13 City budget.
■ Recommendation: Council review this staff report and provide direction to
staff. [Community Development]
Community Development Director Warren Frace gave the staff report and answered
questions from the Council.
Suggestions from Council of issues needing to be discussed:
• Hot spots
o EI Camino Real & Del Rio
o K-Mart corner
• Auto dealer recruitment
• Hotel recruitment
• Business assistance
• Commercial tourism areas (Highway 41)
• Gateway to the wine country
• Review fence heights
• Remove the height restriction on EI Camino Real between Traffic Way and West
Mall
• Limits on improvement requirements for CUPs
• Smoke shops — restrict uses
• Re-prioritize tourism Asset Development (page 253 of report)
• Rent controls for mobile homes
• Re-negotiate tax split with County for Eagle Ranch
o Mayor O'Malley directed Council Member Fonzi to work with staff on
LAFCO involvement with the annexation of Eagle Ranch.
CC Draft Minutes of 1/25/11
Page 5 of 7
ITEM NUMBER: A- 1
DATE: 02/22/11
PUBLIC COMMENT:
The following citizens spoke on this item: Bill Shaffer, Len Colamarino, Chuck Ward,
Lisa Knudsen, Bill Shaffer, and Susan Warren.
Mayor O'Malley closed the Public Comment period.
Council Member Clay left the meeting due to a personal emergency.
COUNCIL ANNOUNCEMENTS AND REPORTS:
Mayor O'Malley announced that he has appointed Roberta Fonzi and Bob Kelley as the
Council appointees to the Design Review Committee, Chuck Ward and Christian
Cooper as the Planning Commission appointees to the Design Review Committee, and
Susan DeCarli as the member at large of the Design Review Committee.
Mayor O'Malley also announced that he appointed Susan DeCarli to the Parks and
Recreation Commission.
Council Member Fonzi announced that the Air Pollution Control District (APCD) would
like all cities to appoint an alternate for APCD meetings. Mayor O'Malley proposed
appointing Council Member Sturtevant as the alternate. Mayor O'Malley asked the City
Clerk to notify APCD.
Mayor Pro Tem Kelley stated that he has been selected to serve on the Board of
ECHO.
D. COMMITTEE REPORTS:
Mayor O'Malley
County Mayors Round Table — Atascadero is hosting the next meeting on
February 4th
E. INDIVIDUAL DETERMINATION AND/ OR ACTION:
City Manager
a. Commissioner Attendance Reports
CC Draft Minutes of 1/25/11
Page 6 of 7
12
ITEM NUMBER: A- 1
DATE: 02/22/11
F. ADJOURNMENT:
Mayor O'Malley adjourned the meeting at 9:54 p.m.
MINUTES PREPARED BY:
Marcia McClure Torgerson, C.M.C.
City Clerk/ Assistant to the City Manager
The following exhibit is available for review in the City Clerk's office:
Exhibit A— Mike Brennler, City Manager Compensation Guidelines
I
CC Draft Minutes of 1/25/11
Rage 7 of 7
13
14
ITEM NUMBER: A-2
DATE: 02/22/11
/r qF7-R :vFr- :r.
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1i is79
Atascadero City Council
Staff Report - Administrative Services Department
Annual Review of Investment Policy
& Approval of Amendments
RECOMMENDATION:
Council adopt the Draft Resolution amending and adopting the City of Atascadero
Investment Policy.
DISCUSSION:
In accordance with the Government Code and the City's current Investment Policy, the
City Investment Policy should be reviewed annually by the City Council "to ensure its
consistency with the overall objectives of the City and its relevance to current law and
financial and economic trends." As part of the annual review process, no substantive
changes are being proposed; however, minor grammatical and spelling errors are being
corrected.
The Investment Policy provides guidelines for the prudent investment of funds, outlines
policies for maximizing the efficiency of City's cash management system, protects
pooled cash and ultimately enhances the economic status of the City. California
Government Code defines the parameters within which City funds may be invested. The
priorities of the Policy continue to be safety, liquidity, and yield.
FISCAL IMPACT:
None.
ATTACHMENTS:
1 . Draft Resolution — Approving the City of Atascadero Investment Policy.
2. Draft City of Atascadero Investment Policy dated February 22, 2011 .
15
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16
Attachment 1
DRAFT RESOLUTION
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF ATASCADERO, CALIFORNIA,
AMENDING AND ADOPTING THE CITY OF ATASCADERO
INVESTMENT POLICY
WHEREAS, the City Council of the City of Atascadero desires to prudently invest idle
funds of the City to maximize use of taxpayer funds; and,
WHEREAS, the California Government Code Section 53600.3 states that "all governing
bodies of local agencies or persons authorized to make investments decisions on behalf of those
local agencies investing public funds pursuant to this chapter are trustees and therefore
fiduciaries subject to the prudent investor standard"; and,
WHEREAS, the California Government Code Section 53646 requires all local agency
governing boards to adopt an investment policy and requires the Treasurer or Chief Financial
Officer to provide an investment report to the legislative body at least quarterly; and,
WHEREAS, the California Government Code Section 53607 authorizes the legislative
body to delegate investment authority and responsibility for a period not to exceed one year but
renewable annually, upon review; and,
WHEREAS, the City of Atascadero Investment Policy requires its annual submittal to
the City Council for adoption, and the policy was last revised and adopted in 2010.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Atascadero that the City of Atascadero Investment Policy, attached hereto, is adopted.
SECTION 1. Recitals. The foregoing recitals are true and correct and the City Council
so finds and determines.
SECTION 2. Investment Policy. The Investment Policy hereby attached as Exhibit A
shall become part of this resolution.
SECTION 3. Effective Date. This resolution shall take effect immediately after the
effective date of this Resolution, and shall remain in effect, until revised by the City Council.
On motion by Council Member and seconded by Council Member
the foregoing Resolution is hereby adopted in its entirety on the
following roll call vote:
17
Attachment 1
AYES:
NOES:
ABSENT:
ADOPTED:
CITY OF ATASCADERO
By:
Tom O'Malley, Mayor
ATTEST:
Marcia McClure Torberson, C.M.C., City Clerk
APPROVED AS TO FORM:
Brian A. Pierik, City Attorney
18
Attachment 2
City of Atascadero
Investment Policy
Dated February 23, 2 2,2011
10
TABLE OF CONTENTS
Paqe
1. OVERVIEW......................................................................................... 1
Introduction
Scope
General Objectives
Standards of Care
II. INVESTMENT AUTHORITY AND RESPONSIBILITIES................................ 4
Authorized Investment Officers
Investment Procedures
Internal Control
State Oversight
Conflicts of Interest
III. ELIGIBLE FINANCIAL INSTITUTIONS..................................................... 6
Selection of Eligible Financial Institutions
Safekeeping and Custody
IV. AUTHORIZED INVESTMENTS.............................................................. 8
Investment Types
Due Diligence Requirement
Prohibited Investments
Legislative Changes
V. INVESTMENT PARAMETERS............................................................... 12
Diversification
Maximum Maturities
VI. CASH MANAGEMENT......................................................................... 13
VII. EVALUATION OF INVESTMENT PERFORMANCE................................... 14
Benchmark Comparison
VIII. INVESTMENT REPORTING................................................................. 15
IX. INVESTMENT POLICY REVIEW AND ADOPTION................................... 16
X. APPENDIX
Glossary................................................................................ Glossary-1
20
I. OVERVIEW
INTRODUCTION
The purpose of this document is to provide guidelines for the prudent investment of
funds not required for the immediate needs of the City, and outline policies for
maximizing the efficiency of the City's cash management system. The ultimate goal is to
enhance the economic status of the City while protecting its pooled cash.
SCOPE
Included in the scope of the City's investment policy are the following major guidelines
and practices, which are to be used in achieving the City's primary investment
objectives:
Investment Authority and Responsibilities
Eligible Financial Institutions
Authorized Investments
Investment Parameters
Cash Management
Evaluation of Investment Performance
Investment Reporting
Investment Policy Review and Adoption
It is intended that this policy cover all funds and investment activities under the direct
authority of the City. These funds are accounted for in the Annual Financial Report and
include the general fund, special revenue funds, debt service funds, capital project
funds, enterprise funds, internal service funds and agency funds, including any
Redevelopment Agency funds in the City's pooled cash funds.
Subject to the prior written consent and approval of the City Treasurer and City
Manager, financial assets held and invested by trustees or fiscal agents are excluded
from this policy. However, such assets are nevertheless subject to the regulations
established by the State of California pertaining to investments by local agencies as well
as the related bond indentures.
21
I. OVERVIEW (continued)
GENERAL OBJECTIVES
The primary objectives of investment activities, in priority order, of iRvest. ent aGfivities
shall be safety, liquidity, and yield:
1 . Safety
Safety of principal is the foremost objective of the investment program.
Investments shall be undertaken in a manner that seeks to ensure the
preservation of capital in the overall portfolio. The objective will be to mitigate
credit risk and interest rate risk.
a. Credit Risk
The City will minimize credit risk, the risk of loss due to the failure of the
security issuer or backer, by:
• Limiting investments to the safest types of securities.
• Pre-qualifying the financial institutions, broker/dealers,
intermediaries, and advisers with which the City will do
business.
• Diversifying the investment portfolio so that potential losses on
individual securities will be minimized.
b. Interest Rate Risk
The City will minimize the risk that the market value of securities in the
portfolio will fall due to changes in general interest rates, by:
• Structuring the investment portfolio so that securities mature to
meet cash requirements for ongoing operations, thereby
avoiding the need to sell securities on the open market prior to
maturity.
• Investing operating funds primarily in shorter-term securities,
money market mutual funds, or similar investment pools.
2. Liquidity
The investment portfolio shall remain sufficiently liquid to meet all operating
requirements that may be reasonably anticipated. This is accomplished by
structuring the portfolio so that securities mature concurrent with cash needs to
meet anticipated demands (static liquidity). Furthermore, since all possible cash
demands cannot be anticipated, the portfolio should consist largely of securities
with active secondary or resale markets (dynamic liquidity). A portion of the
portfolio will also be placed in money market mutual funds or local government
investment pools, which offer same-day liquidity for short-term funds.
2
22
I. OVERVIEW (continued)
GENERAL OBJECTIVES (continued)
3. Yield
The investment portfolio shall be designed with the objective of attaining a
market rate of return throughout budgetary and economic cycles, taking into
account the investment risk constraints and liquidity needs. Return on
investment is of secondary importance compared to the safety and liquidity
objectives described above. The core of investments is limited to relatively low
risk securities in anticipation of earning a fair return relative to the risk being
assumed. For purposes of comparing alternative investments all yields should
be converted to a "money market" equivalent yield. Securities shall not be sold
prior to maturity with the following exceptions:
a. A security with declining credit may be sold early to minimize loss of
principal.
b. A security swap would improve the quality, yield, or target duration in the
portfolio.
c. Liquidity needs of the portfolio require that the security be sold.
d. A capital gain would be realized that better positions the overall portfolio
in achieving investment policy goals.
STANDARDS OF CARE
The City operates its pooled idle cash investments under the "Prudent Person Rule"
which obligates a fiduciary to ensure that investments shall be made:
ii
...using the judgment and care, under circumstances then prevailing,
which persons of prudence, discretion, and intelligence exercise in the
management of their own affairs, not in regard to speculation but in regard
to the permanent disposition of their funds, considering the probable
income as well as the probable safety of their capital" (Uniform Prudent
Investor Act)
Investment officers acting in accordance with written procedures and this investment
policy and exercising due diligence shall be relieved of personal responsibility for an
individual security's credit risk or market price changes, provided deviations from
expectations are reported in a timely fashion and the liquidity and the sale of securities
are carried out in accordance with the terms of this policy.
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it
II. INVESTMENT AUTHORITY AND RESPONSIBILITIES
AUTHORIZED INVESTMENT OFFICERS
The ultimate responsibility for investment activity shall reside with the City Council. Idle
cash management and investment transactions are the responsibility of the City
Treasurer or designee. The City Council has authorized the following officials to
undertake investment transactions on behalf of the City:
City Treasurer
City Manager
Director of Administrative Services
It is the policy of the City for the Director of Administrative Services to manage the
investment activity of the funds of the City. The City Manager and the City Treasurer
shall supervise the activities of the Director of Administrative Services.
The Finance Review Committee,—, shall meet to discuss the status of current
investments, strategies for future investment, and other investment matters deemed
relevant, and shall report to the City Council as necessary. The City Attorney shall, as
required by Government Code section 36518, review the bonding requirement for the
City Treasurer on an annual basis.
INVESTMENT PROCEDURES
The authorized investment officers as stated above, in accordance with the City of
Atascadero Investment Policy, are responsible for administering an investment program
which:
• Adheres to the Statement of Investment Policy
• Prioritizes safety and liquidity
• Determines risk and optimizes return
• Provides for a system of due diligence in making investment decisions.
INTERNAL CONTROL
The Director of Administrative Services is responsible for establishing and maintaining
an internal control structure designed to ensure that the assets of the City are protected
from loss, theft or misuse. The internal control structure shall be designed to provide
reasonable assurance that these objectives are met. The concept of reasonable
assurance recognizes that (1) the cost of a control should not exceed the benefits likely
to be derived and (2) the valuation of costs and benefits requires estimates and
judgments by management.
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H. INVESTMENT AUTHORITY AND RESPONSIBILITIES (continued)
INTERNAL CONTROL (continued)
Accordingly, the Director of Administrative Services shall establish a process for an
annual independent review by an external auditor to assure compliance with policies
and procedures. The internal controls shall address the following points:
• Control of collusion
• Separation of transaction authority from accounting and record keeping
• Custodial safekeeping
• Avoidance of physical delivery securities
• Clear delegation of authority to subordinate staff members
• Written confirmation of transactions for investments and wire transfers
• Development of a wire transfer agreement with the lead bank and third party
custodian
STATE OVERSIGHT
The City shall comply with the regulations established by the State of California
pertaining to investments.
CONFLICTS OF INTEREST
The City adopts the following policy concerning conflicts of interest:
1 . Officers and employees involved in the investment process shall refrain from
personal business activity that could conflict with proper execution of the
investment program or which could impair their ability to make impartial
investment decisions.
2. Officers and employees involved in the investment process shall disclose to
the City Clerk any material financial interest in financial institutions that
conduct business with the City of Atascadero and they shall further disclose
any large personal financial/investment positions that could be related to the
performance of the City's portfolio.
3. Officers shall refrain from undertaking personal investment transactions with
the same individual with which business is conducted on behalf of the City.
4. In making investment decisions, the Investment Officers shall be guided by
the recommendations of the Ffinance Review GCommittee and avoid the
undue influence of individual City officers and officials.
5. Investments are prohibited in certificates of deposit of state or federal credit
unions if any city officer, city manager or city fiscal officer serves on the credit
union board or in any key committee positions.
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Ill. ELIGIBLE FINANCIAL INSTITUTIONS
SELECTION OF ELIGIBLE FINANCIAL INSTITUTIONS
All financial institutions and broker/dealers and safekeeping/custodial agents who desire
to become qualified for investment transactions must provide the following documents
(as appropriate) for annual review by the City Treasurer:
• Audited financial statements
• Proof of National Association of Securities Dealers (NASD) certification
• Proof of state registration
• Completed broker/dealer questionnaire
• Certification of having read and understood and agreeing to comply with the
City's investment policy.
In selecting financial institutions for deposit or investment of funds, the authorized
Investment Officers shall consider the credit-worthiness of the institution.
• Deposits The City will only deposit funds with an institution that has a rating of at
least "A" as assigned by an established rating service based on quarterly financial
information provided by the Federal Reserve Board and the Federal Home Loan
Bank Board (i.e., The Financial Directory). Ratings will be monitored on a quarterly
basis and any downgrade in rating below "A" will be reported to the Finance Review
Committee together with a recommendation for possible action.
• Brokers/Dealer Investments must be purchased directly from the issuer, from an
institution licensed by the state as a broker-dealer, from a member of a federally
regulated securities exchange, or from a brokerage firm designated as a primary
government dealer by the Federal Reserve Bank. Broker/dealers shall be selected
by creditworthiness (e.g., a minimum capital requirement of $10,000,000 and at least
five years of operation).
• Safekeeping and Custodial Institutions Safekeeping and custodial institutions shall
be selected on the basis of credit worthiness with a minimum of capitalization of
$100,000,000 and at least 5 years of operation. Safekeeping and custodial
institutions must be fiduciaries of the City and independent of any broker/dealers. All
safekeeping and custodial arrangements shall require written agreements. All
safekeeping and custodial agreements shall be reviewed by the City Treasurer and
Director of Administrative Services and approved by the City Attorney prior to
conducting any investment activities.
From time to time, the investment officer may choose to invest in instruments offered by
minority and community financial institutions. In such situations, a waiver to the above
criteria may be granted. All terms and relationships will be fully disclosed prior to
purchase and will be reported to the appropriate entity on a consistent basis and should
be consistent with state or local law. These types of investment purchases should be
approved by City Council in advance.
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Ill. ELIGIBLE FINANCIAL INSTITUTIONS (continued)
SELECTION OF ELIGIBLE FINANCIAL INSTITUTIONS (continued)
The authorized Investment Officers will maintain a file of the broker/dealers and
authorized safekeeping/custodial institutions with which it is currently doing business
which will include the firm name, contact person, telephone number, and current audited
financial statements.
SAFEKEEPING AND CUSTODY
All trades where applicable will be executed by delivery vs. payment (DVP) to ensure
that securities are deposited in an eligible financial institution prior to the release of
funds. A third-party custodian as evidenced by safekeeping receipts will hold securities.
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IV. AUTHORIZED INVESTMENTS
INVESTMENT TYPES
The California Government Code Sections 16429.1 and 53601 govern investment of
City funds. Investments may not have a term or maturity at the time of investment of
longer than that authorized by Section 53601 or five years unless the City Council has
granted prior express authority.
As previously stated, the City operates its investments under the prudent man rule (Civil
Code Section 2261, et. seq.), except where more specifically restricted. This affords the
City a broad spectrum of investments, so long as the investment is deemed prudent and
is allowable under current legislation of the State of California (goverRmeRt-Government
Code Section 53600, et. seq.) and applicable City trust agreements, if any.
It should be noted that while the Government Code specifies the maximum percentage
of the portfolio that may be held in each type of investment at any one time, fluctuations
in the portfolio balance will prevent strict adherence to such restrictions. Therefore,
percentage limitations shall apply to investments at the time of purchase.
Consistent with the GFOA Policy Statement on State and Local Laws Concerning
Investment Practices, the following investments will be permitted by this policy and are
those defined by state and local law where applicable:
1. State Treasurer's Local Agency Investment Fund (LAIF)
Government Code Section 16429.1: The City may invest in the Local Agency
Investment Fund. LAIF is a diversified investment pool administered by the
California State Treasurer. Monies invested with LAIF are pooled with State
monies in order to earn the maximum rate of return consistent with safe and
prudent treasury management.
The LAIF handbook including LAIF policies and restrictions shall be available in
the City's Administrative Services Department. A thorough investigation of the
pool is required on a continual basis. (See Due Diligence Requirement on page
10.)
2. U.S. Government Issues
Government Code Sections 53601 (b) and (f): A maximum forty percent (40%)
of the City's portfolio may be invested in U.S. government obligations, U.S.
government agency obligations, and U.S. government instrumentality obligations,
which have a liquid market with a readily determinable market value.
3. Bankers Acceptances
Government Code Section 53601 (g): Up to forty percent (40%) of the City's
portfolio may be invested in Bankers Acceptances which are defined
as bills of exchange or time drafts, drawn on and accepted by a commercial
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IV. AUTHORIZED INVESTMENTS (continued)
INVESTMENT TYPES (continued)
3. Bankers Acceptances (continued)
bank, which are eligible for purchase by the Federal Reserve System, although
no more than thirty percent (30%) of the portfolio may be invested in Bankers
Acceptances with any one commercial bank. Additionally, the maturity periods
cannot exceed 180 days.
4. Commercial Paper
Government Code Section 53601 (h): A maximum of twenty five percent (25%) of
the City's portfolio may be invested in highest tier (e.g. A-1 , P-1 , F-1 or D-1 or
higher) commercial paper as rated by Moody's or Standard and Poor's rating
service. Issuing corporations must be organized and operating in the United
States, have in excess of $500 million total assets, and have at least an "A"
rating (by Moody's or Standard and Poor's) on debt other than commercial paper.
The maturity period cannot exceed 270 days. Purchases of eligible commercial
paper may not exceed ten percent (10%) of the outstanding paper of an issuing
corporation.
5. Certificates of Deposit and Passbook Savings Accounts
Government Code Section 53601 (i): There is no limit ae-to the amount of the
investment portfolio that may be deposited in certificates of deposit or passbook
savings account. The minimum requirements for Certificate of Deposit
investments shall be:
• Investments and accrued interest shall never exceed the FDIC insurance
limit in any one institution.
• Qualified institutions must have a minimum equity ratio of 6% and a
minimum capitalization of $10,000,000.
Purchases of negotiable certificates of deposit, issued by a nationally or state-
chartered bank or a state or federal association, or by a state licensed
branch of a foreign bank, may not exceed 30 percent of the agency's
surplus money, which may be invested pursuant to this section.
Negotiable certificates of deposit may be purchased in the secondary
market at a discounted but never at a premium, since the premium would
not be FDIC insured.
California law requires that public funds be collateralized by maintaining with the
agent of the depository government securities having a market value of at
least one hundred ten percent (110%) of the value of the public fund
accounts. The collateralization requirement may be waived to the extent
that funds are federally insured. For deposits equivalent to the maximum
insured amount, security may also be waived for interest accrued on the
deposit provided the interest is computed by the depository on the
average daily balance of the deposits, paid monthly and computed on a
360-day basis.
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IV. AUTHORIZED INVESTMENTS (continued)
INVESTMENT TYPES (continued)
6. Money Market Mutual Funds
Government Code Section 53601 (1): Shares of beneficial interest issued by
diversified management companies that are money market funds
registered with the Securities and Exchange Commission under the
Investment Company Act of 1940 (15 U.S.C. Sec 80a-I et seq.) shall not
exceed twenty percent (20%) of the agency's surplus money that may be
invested pursuant to this section. The fund shall be managed by a
registered or exempt investment advisor with not less than 5 years
experience managing money market mutual funds with assets under
management in excess of five hundred million dollars ($5,000,000). The
fund shall have attained the highest ranking or the highest letter and
numerical rating provided by not less than two nationally recognized
statistical rating organizations. No more than ten percent (10%) of the
agency's surplus funds may be invested in shares of beneficial interest of
any one money market mutual fund
DUE DILIGENCE REQUIREMENT
As stated, a thorough investigation of an investment pool or mutual fund is required
prior to investing and on a continual basis. At a minimum, the following information shall
be reviewed annually for each pool and/or mutual fund:
1 . A description of eligible investment securities, and a written statement of
investment policy and objectives.
2. A description of interest calculations, how interest is distributed, and how
gains and losses are treated.
3. A description of how these securities are safeguarded (including the
settlement process), and how often these securities are priced and the
program audited.
4. A description of who may invest in the program, how often, and the size of
deposits and withdrawals.
5. A schedule for receiving statements and portfolio listings.
6. Whether reserves, retained earnings, etc. are utilized by the pool/fund.
7. A fee schedule, and when and how fees are assessed.
8. Whether the pool/fund is eligible for bond proceeds and/or will it accept such
proceeds.
PROHIBITED INVESTMENTS
The City of Atascadero shall not invest in any investment instrument/pool/fund unless
specifically allowed under the "Investment Types" section of this policy.
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IV. AUTHORIZED INVESTMENTS (continued)
PROHIBITED INVESTMENTS (continued)
The City of Atascadero shall comply with Government Code Section 53601.6 that states
in pertinent part, "(a) A local agency shall not invest any funds pursuant to this article in
inverse floaters, range notes, or mortgage-derived interest-only strips. (b) A local
agency shall not invest any funds pursuant to this article in any security that could result
in zero interest accrual if held to maturity."
LEGISLATIVE CHANGES
Any State of California legislative action that further restricts allowable maturities,
investment types or percentage allocations will be incorporated into the City of
Atascadero Investment Policy and supersede any and all previous applicable language.
If the City is holding an investment that is subsequently prohibited by a legislative
change, the City may hold that investment, if it is deemed prudent by the Finance
Review Committee, until the maturity date to avoid an unnecessary loss.
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V. INVESTMENT PARAMETERS
DIVERSIFICATION
The investments shall be diversified by:
• Limiting investments to avoid over concentration in securities from a specific
issuer or business sector (excluding Local Agency Investment Fund and U.S.
Treasury securities),
• Limiting investment in securities that have higher credit risks,
• Investing in securities with varying maturities, and
• Continuously investing a portion of the portfolio in readily available funds such
as local government investment pools (LAIF), or money market funds to
ensure that appropriate liquidity is maintained in order to meet ongoing
obligations.
MAXIMUM MATURITIES
In order to minimize the impact of market risk, it is intended that all investments will be
held to maturity.
To the extent possible, the City shall attempt to match its investments with anticipated
cash flow requirements. Unless matched to a specific cash flow, the City will not
directly invest in securities maturing more than five (5) years from the date of purchase
or in accordance with state and local statutes and ordinances. The City--Finance
Review Committee shall meet to review weighted average maturity limitations (which
often range from 90 days to 2 years), consistent with investment objectives and
economic conditions.
Investments may be sold prior to maturity for cash flow, appreciation purposes or in
order to limit losses; however, no investment shall be made based solely on earnings
anticipated from capital gains.
Because of inherent difficulties in accurately forecasting cash flow requirements, a
portion of the portfolio should be continuously invested in readily available funds.
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VI. CASH MANAGEMENT
In order to obtain a reasonable return on public funds, the following cash management
practice will be followed:
1 . Maintain maximum investment of all City funds not required to meet
immediate cash flow needs.
2. Except for cash in certain restricted and special funds, the City will
consolidate cash balances from all funds to maximize investment earnings.
Investment income will be allocated to the various funds based on their
respective participation and in accordance with generally accepted
accounting principles.
3. Maximize the City's cash flow through immediate deposit of all receipts, use
of direct deposit when available, and appropriate timing of payment to
vendersvendors.
4. Maximize cash flow information available through the use of only one
operating bank account.
5. Daily cash flow management shall be the responsibility of the Director of
Administrative Services in conjunction with the City Treasurer.
IIS
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VII. EVALUATION OF INVESTMENT PERFORMANCE
The investment portfolio will be designed to obtain a market average rate of return
during budgetary and economic cycles, taking into account the City's investment risk
constraints and cash flow needs.
BENCHMARK COMPARISON
The investment portfolio shall be structured to optimize the return given the risk
constraints and cash flow needs.
Investment performance shall be continually monitored and evaluated by the Finance
Review Committee. Investment performance statistics and activity reports shall be
generated on a monthly basis for presentation to the City Council.
In evaluating the performance of the City's portfolio in complying with this policy, it is
expected that yields on City investments will regularly meet or exceed the average
return on a two-year U.S. Treasury Note. However, the Finance Review Committee for
evaluation purposes considers a variance of .5% positive or negative from the
benchmark reasonable.
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VIII. INVESTMENT REPORTING
REPORTS TO CITY COUNCIL
The City Treasurer shall prepare and submit a quarterly investment report to the City
Council. This report will include the following elements relative to the investments held
at quarter-end.
1. Face value.
2. Security description.
3. Coupon rate.
4. Maturity date.
5. Investment rating.
6. Investment type.
7. Purchase date.
8. Cost of security.
9. Yield-to-Maturity
10. Estimated market value.
11 . Amortized premium/discount.
12. Unrealized Gain <Loss>.
13. Listing of investment by maturity.
14. Gains or Losses on the sale of securities not held to maturity.
15. Bank failures.
16. Investment ratings downgraded by Moody's or Standard and Poor's.
17. Statement relating the report to the Statement of Investment Policy.
18. Statement that there are sufficient funds to meet the next six months'
obligations.
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IX. INVESTMENT POLICY REVIEW AND ADOPTION
The Statement of Investment Policy shall be submitted annually to the City Council for
adoption. The policy shall be reviewed at least annually to ensure its consistency with
the overall objectives of the City and its relevance to current law and financial and
economic trends. Any modifications made thereto must be approved by the City
Council.
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APPENDIX: Glossary
The following is a glossary* of key investing terms, many of which appear in GFOA'S
Sample Investment Policy.
Accrued Interest - The accumulated interest duen n
o a bond as of the last interest
payment made by the issuer.
Agency - A debt security issued by a federal or federally sponsored agency. Federal
agencies are backed by the full faith and credit of the U.S. Government. Federally
sponsored agencies (FSAs) are backed by each particular agency with a market
perception that there is an implicit government guarantee. An example of federal
agency is the Government National Mortgage Association (GNMA). An example of a
FSA is the Federal National Mortgage Association (FNMA).
Amortization - The systematic reduction of the amount owed on a debt issue through
periodic payments of principal.
Average Life - The average length of time that an issue of serial bonds and/or term
bonds with a mandatory sinking fund feature is expected to be outstanding.
Basis Point - A unit of measurement used in the valuation of fixed-income securities
equal to 1/100 of 1 percent of yield, e.g., "1/4" of 1 percent is equal to 25 basis points.
Bid - The indicated price at which a buyer is willing to purchase a security or
commodity.
Book Value - The value at which a security is carried on the inventory lists or other
financial records of an investor. The book value may differ significantly from the
security's current value in the market.
Callable Bond - A bond issue in which all or part of its outstanding principal amount
may be redeemed before maturity by the issuer under specified conditions.
Call Price - The price at which an issuer may redeem a bond prior to maturity. The
price is usually at a slight premium to the bond's original issue price to compensate the
holder for loss of income and ownership.
Call Risk - The risk to a bondholder that a bond may be redeemed prior to maturity.
Cash Sale/Purchase - A transaction that calls for delivery and payment of securities on
the same day that the transaction is initiated.
`This glossary has been adapted from an article, entitled "Investment terms for everyday use,"that appeared in the April 5, 1996,
issue of Public Investor,GFOA's subscription investment newsletter.
Glossary-1
37
tt�e s—AMe day that the traRsantien is initiate,;-.
Collateralization - Process by which a borrower pledges securities, property, or other
deposits for the purpose of securing the repayment of a loan and/or security.
Commercial Paper - An unsecured short-term promissory note issued by corporations,
with maturities ranging from 2 to 365 days.
Convexity - A measure of a bond's price sensitivity to changing interest rates. A high
convexity indicates greater sensitivity of a bond's price to interest rate changes.
Coupon Rate - The annual rate of interest received by an investor from the issuer of
certain types of fixed-income securities. Also known as the "interest rate".
Credit Quality - The measurement of the financial strength of a bond issuer. This
measurement helps an investor to understand an issuer's ability to make timely interest
payments and repay the loan principal upon maturity. Generally, the higher the credit
quality of a bond issuer, the lower the interest rate paid by the issuer because the risk of
default is lower. Credit quality ratings are provided by nationally recognized rating
agencies.
Credit Risk - The risk to an investor that an issuer will default in the payment of interest
and/or principal on a security.
Current Yield (Current Return) - A yield calculation determined by dividing the annual
interest received on a security by the current market price of that security.
Delivery Versus Payment (DVP) - A type of securities transaction in which the
purchaser pays for the securities when they are delivered either to the purchaser or
his/her custodian.
Derivative Security - Financial instrument created from, or whose value depends upon,
one or more underlying assets or indexes of asset values.
Discount - The amount by which the par value of a security exceeds the price paid for
the security.
Diversification - A process of investing assets among a range of security types by
sector, maturity, and quality rating.
Duration - A measure of the timing of the cash flows, such as the interest payments
and the principal repayment, to be received from a given fixed-income security. This
calculation is based on three variables: term to maturity, coupon rate, and yield to
maturity. The duration of a security is a useful indicator of its price volatility for given
changes in interest rates.
Glossary-2
38
Fair Value - The amount at which an investment could be exchanged in a current
transaction between willing parties, other than in a forced or liquidation sale.
Federal Funds (Fed Funds) - Funds placed in Federal Reserve banks by depository
institutions in excess of current reserve requirements. These depository institutions
may lend fed funds to each other overnight or on a longer basis. They may also
transfer funds among each other on a same-day basis through the Federal Reserve
banking system. Fed funds are considered to be immediately available funds.
Federal Funds Rate - Interest rate charged by one institution lending federal funds to
the other.
Government Securities - An obligation of the U.S. government, backed by the full faith
and credit of the government. These securities are regarded as the highest quality of
investment securities available in the U.S. securities market. See "Treasury Bills,
Notes, and Bonds."
Interest Rate - See "Coupon Rate".
Interest Rate Risk - The risk associated with declines or rises in interest rates that
cause an investment in a fixed-income security to increase or decrease in value.
Internal Controls - An internal control structure designed to ensure that the assets of
the entity are protected from loss, theft, or misuse. The internal control structure is
designed to provide reasonable assurance that these objectives are met. The concept
of reasonable assurance recognizes that 1) the cost of a control should not exceed the
benefits likely to be derived and 2) the valuation of costs and benefits requires
estimates and judgments by management. Internal controls should address the
following points:
1 . Control of collusion - Collusion is a situation where two or more employees are
working in conjunction to defraud their employers.
2. Separation of transaction authority from accounting and record keeping - By
separating the person who authorizes or performs the transaction from the people
who record or otherwise account for the transaction, a separation of duties is
achieved.
3. Custodial safekeeping - Securities purchased from any bank or dealer including
appropriate collateral (as defined by state law) shall be placed with an independent
third party for custodial safekeeping.
4. Avoidance of physical delivery securities - Book-entry securities are much easier to
transfer and account for since actual delivery of a document never takes place.
Delivered securities must be properly safeguarded against loss or destruction. The
potential for fraud and loss increases with physically delivered securities.
Glossary-3
39
Internal Controls (continued)
5. Clear delegation of authority to subordinate staff members - Subordinate staff
members must have a clear understanding of their authority and responsibilities to
avoid improper actions. Clear delegation of authority also preserves the internal
control structure that is contingent on the various staff positions and their respective
responsibilities.
6. Written confirmation of transactions for investments and wire transfers - Due to the
potential for error and improprieties arising from telephone and electronic
transactions, all transactions should be supported by written communications and
approved by the appropriate person. Written communications may be via fax if on
letterhead and if the safekeeping institution has a list of authorized signatures.
7. Development of a wire transfer agreement with the lead bank and third-party
custodian - The designated official should ensure that an agreement will be entered
into and will address the following points: controls, security provisions, and
responsibilities of each party making and receiving wire transfers.
Inverted Yield Curve - A chart formation that illustrates long-term securities having
lower yields than short-term securities. This configuration usually occurs during periods
of high inflation coupled with low levels of confidence in the economy and a restrictive
monetary policy.
Investment Company Act of 1940 - Federal legislation which sets the standards by
which investment companies, such as mutual funds, are regulated in the areas of
advertising, promotion, performance reporting requirements, and securities valuations.
Investment Policy - A concise and clear statement of the objectives and parameters
formulated by an investor or investment manager for a portfolio of investment securities.
Investment-grade Obligations - An investment instrument suitable for purchase by
institutional investors under the prudent person rule. Investment-grade is restricted to
those obligations rated BBB or higher by a rating agency.
Liquidity - An asset that can be converted easily and quickly into cash.
Local Government Investment Pool (LGIP) - An investment by local governments in
which their money is pooled as a method for managing local funds.
Mark-to-market - The process whereby the book value or collateral value of
P Y a security
is adjusted to reflect its current market value.
Market Risk - The risk that the value of a security will rise or decline as a result of
changes in market conditions.
Market Value - Current market price of a security.
Glossary-4
40
Maturity - The date on which payment of afinancial obligation is due. The final stated
maturity is the date on which the issuer must retire a bond and pay the face value to the
bondholder. See "Weighted Average Maturity."
Money Market Mutual Fund - Mutual funds that invest solely in money market
instruments (short-term debt instruments, such as Treasury bills, commercial paper,
bankers' acceptances, repos and federal funds).
Mutual Fund - An investment company that pools money and can invest in a variety of
securities, including fixed-income securities and money market instruments. Mutual
funds are regulated by the Investment Company Act of 1940 and must abide by the
following Securities and Exchange Commission (SEC) disclosure guidelines:
1. Report standardized performance calculations.
2. Disseminate timely and accurate information regarding the fund's holdings,
performance, management and general investment policy.
3. Have the fund's investment policies and activities supervised by a board of trustees,
which are independent of the adviser, administrator or other vendor of the fund.
4. Maintain the daily liquidity of the fund's shares.
5. Value their portfolios on a daily basis.
6. Have all individuals who sell SEC-registered products licensed with a self-regulating
organization (SRO) such as National Association of Securities Dealers (NASD).
7. Have an investment policy governed by a prospectus that is updated and filed by the
SEC annually.
Mutual Fund Statistical Services - Companies that track and rate mutual funds, e.g.,
IBC/Donoghue, Lipper Analytical Services, and Morningstar.
National Association of Securities Dealers (NASD) - A self-regulatory organization
(SRO) of brokers and dealers in the over-the-counter securities business. Its regulatory
mandate includes authority over firms that distribute mutual fund shares as well as other
securities.
Net Asset Value - The market value of one share of an investment company, such as a
mutual fund. This figure is calculated by totaling a fund's assets which includes
securities, cash, and any accrued earnings, subtracting this from the fund's liabilities
and dividing this total by the number of shares outstanding. This is calculated once a
day based on the closing price for each security in the fund's portfolio. (See below.)
[(Total assets) - (Liabilities)]/(Number of shares outstanding)
No Load Fund - A mutual fund that does not levy a sales charge on the purchase of its
shares.
Nominal Yield - The stated rate of interest that a bond pays its current owner, based on
par value of the security. It is also known as the "coupon," "coupon rate," or "interest
rate."
Glossary-5
41
Offer - An indicated price at which market participants are willing to sell a security or
commodity. Also referred to as the "Ask price."
Par - Face value or principal value of a bond, typically $1,000 per bond.
Positive Yield Curve - A chart formation that illustrates short-term securities having
lower yields than long-term securities.
Premium - The amount by which the price paid for a security exceeds the security's par
value.
Prime Rate - A preferred interest rate charged by commercial banks to their most
creditworthy customers. Many interest rates are keyed to this rate.
Principal - The face value or par value of a debt instrument. Also may refer to the
amount of capital invested in a given security.
Prospectus - A legal document that must be provided to any prospective purchaser of
a new securities offering registered with the SEC. This can include information on the
issuer, the issuer's business, the proposed use of proceeds, the experience of the
issuer's management, and certain certified financial statements.
Prudent Person Rule - An investment standard outlining the fiduciary responsibilities of
public funds investors relating to investment practices.
Regular Way Delivery - Securities settlement that calls for delivery and payment on the
third business day following the trade date (T+3); payment on a T+1 basis is currently
under consideration. Mutual funds are settled on a same day basis; government
securities are settled on the next business day.
Reinvestment Risk - The risk that a fixed-income investor will be unable to reinvest
income proceeds from a security holding at the same rate of return currently generated
by that holding.
Repurchase Agreement (Repo or RP) - An agreement of one party to sell securities at
a specified price to a second party and a simultaneous agreement of the first party to
repurchase the securities at a specified price or at a specified later date.
Reverse Repurchase Agreement (Reverse Repo) - An agreement of one party to
purchase securities at a specified price from a second party and a simultaneous
agreement by the first party to resell the securities at a specified price to the second
party on demand or at a specified date.
Glossary-6
42
Rule 2a-7 of the Investment Company Act - Applies to all money market mutual funds
and mandates such funds to maintain certain standards, including a 13-month maturity
limit and a 90-day average maturity on investments, to help maintain a constant net
asset value of one dollar ($1.00).
Safekeeping - Holding of assets (e.g., securities) by a financial institution.
Serial Bond - A bond issue, usually of a municipality, with various maturity dates
scheduled at regular intervals until the entire issue is retired.
Sinking Fund - Money accumulated on a regular basis in a separate custodial account
that is used to redeem debt securities or preferred stock issues.
Swap - Trading one asset for another.
Term Bond - Bonds comprising a large part or all of a particular issue that come due in
a single maturity. The issuer usually agrees to make periodic payments into a sinking
fund for mandatory redemption of term bonds before maturity.
Total Return - The sum of all investment income plus changes in the capital value of
the portfolio. For mutual funds, return on an investment is composed of share price
appreciation plus any realized dividends or capital gains. This is calculated by taking
the following components during a certain period.
(Price appreciation) + (Dividends paid) + (Capital gains) = Total Return
Treasury Bills - Short-term U.S. government non-interest bearing debt securities with
maturities of no longer than one year and issued in minimum denominations of $10,000.
Auctions of three- and six-month bills are weekly, while auctions of one-year bills are
monthly. The yields on these bilis are monitored closely in the money markets for signs
of interest rate trends.
Treasury Notes - Intermediate U.S. government debt securities with maturities of one
to ten years and issued in denominations ranging from $1,000 to $1,000,000 or more.
Treasury Bonds - Long-term U.S. government debt securities with maturities of ten
years or longer and issued in minimum denominations of $1,000. Currently, the longest
outstanding maturity for such securities is 30 years.
!Uniform Net Capital Rule - SEC Rule 15C3-1 outlining capital requirements for
broker/dealers.
Volatility - A degree of fluctuation in the price and valuation of securities.
Glossary-7
�3
"Volatility Risk" Rating - A rating system to clearly indicate the level of volatility and
other non-credit risks associated with securities and certain bond funds. The rating for
bond funds range from those that have extremely low sensitivity to changing market
conditions and offer the greatest stability of the returns ("aaa" by S&P; "V-1" by Fitch) to
those that are highly sensitive with currently identifiable market volatility risk ("ccc-" by
S&P, W-10" by Fitch).
Weighted Average Maturity (WAM) - The average maturity of all the securities that
comprise a portfolio. According to SEC rule 2a-7, the WAM for SEC registered money
market mutual funds may not exceed 90 days and no one security may have a maturity
that exceeds 397 days.
When Issued (WI) - A conditional transaction in which an authorized new security has
not been issued. All "when issued" transactions are settled when the actual security is
issued.
Yield - The current rate of return on an investment security generally expressed as a
percentage of the security's current price.
Yield-to-call (YTC) - The rate of return an investor earns from a bond assuming the
bond is redeemed (called) prior to its nominal maturity date.
Yield-to-maturity - The rate of return yielded by a debt security held to maturity when
both interest payments and the investor's potential capital gain or loss are included in
the calculation of return.
Zero-coupon Securities - Security that is issued at a discount and makes no periodic
interest payments. The rate of return consists of a gradual accretion of the principal of
the security and is payable at par upon maturity.
Glossary-8
44
ITEM NUMBER: A-3
DATE: 02/22/11
lei`s A � tape
CAD
Atascadero City Council
Staff Report - Administrative Services
Historic City Hall Project Bid Awards:
ACEI-02 Penthouse Demolition
RECOMMENDATION:
Council award bid to, and authorize the City Manager to execute a contract with, Marcor
Environmental in the amount of $141 ,300 for the ACH-02 Penthouse Demolition
services for the Historic City Hall Project.
DISCUSSION:
Proiect
The Penthouses are the four structures on the fourth floor of the Historic City Hall
building that surround the Council Chambers. These structures include the Club Room,
the kitchen, the fourth floor restrooms, the apartment, and the fourth floor storage area.
They were built during the 1920's using sub-standard building methods.
The Federal Emergency Management Agency (FEMA) and the State Historic
Preservation Office (SHPO) have determined that these are non-historical elements of
the Project and have given the City the appropriate historic clearance to demolish these
structures.
This bid, ACH 02 Penthouse Demolition, specifically for the demolition of the four
e is p y
Penthouses. Later during the course of the Project, however, two of these structures
will be rebuilt and used to accommodate storage and restroom facilities for the
refurbished Council Chambers.
Bid Award
The bidding process on ACH-02, Penthouse Demolition, is complete and ready to
award. This bid package was released for bidding on November 2, 2010. It was posted
on the City's web site, in the Atascadero News, and in twelve plan rooms. The bid
consists of the complete demolition and removal of the Penthouses, removal and
abatement of all associated hazardous materials, removal of the existing roof debris,
and storage of fallen bricks.
45
Sixteen contractors attended the mandatory pre-bid walk-through that was held on
November 30, 2010. Out of those sixteen firms, six submitted bids. Two of the six
companies that submitted bids were local.
Marcor Environmental out of Dublin, California, was the lowest responsive bidder with a
bid of $141,300. The bid came in well under both the budgeted amount for this package
and other bidders. Because there was a large range in the bids, representatives from
Bernards contacted Marcor Environmental and were assured that they understood the
scope of work and that they stood by their bid.
Contractor Package budget Package bid
Marcor Environmental $ 542,500 $141,300
All of this portion of the rehabilitation will fall under the "Other Funding" category,
meaning it is 100% funded by the Redevelopment Agency.
46
FISCAL IMPACT:
PROJECTEDFUNDING USES
Architecture and engineering $ 5,030,000
Construction costs:
ACH-3 Basement Wall and Floor Demolition
(awarded 10/26/10) 178,000
ACH-4 Basement Electrical Demolition and
Temporary Power Installation(awarded 10/26/10) 73,980
ACH-2 Penthouse Demolition and
Hazardous 141,300
Remaining bid packages 24,076,520
Total construction costs 24,469,800
Construction management
Bernards-Phase 1 (awarded 4/27/10) 765,443
Bernards-Phase 2(awarded 1/11/11) 2,876,560
Total construction management 3,642,003
General conditions,construction support,and
permitting
Pre-Construction activity 58,165
Deputy Inspection Services(awarded 1/11/11) 386,991
Hazardous Materials Investigation and Design
(awarded 3/23/10) 84,528
Hazardous Materials Monitoring (awarded 1/11/11) 75,319
Other 914,417
Total testing, inpection,permitting and
construction support 1,519,420
Contingency 5,032,300
TOTAL PROJECTED FUNDING USES $39,693,523
PROJECTED FUNDING SOURCES
Expected FEMA funding $20,059,190
Expected CalEMA funding 6,686,400
California Cultural Historic Endowment Grant 2,000,000
Redevelopment 2010 Bond Funds 13,000,000
TOTAL PROJECTED FUNDING SOURCES $41,745,590
FUNDING SURPLUS $ 2,052,067
ATTACHMENT:
Exhibit A —ACH-02 Bid Summary
47
48
Exhibit A
City of A tascadero
Office of the City Clerk
Bid Summary
TO: Public Works
Lisa Cava,Deputy City(7
FROM: 1erk
BID NO.: 2010-009
OPENED: 12121/2010
PROJECT: Historic City Hall Penthouse Demolition
6 Bids were received and opened today,as follows:
Name of Bidder LUMP SUM BID
MARCOR ENVIRONMENTAL $141300.00
ALLIED INDUSTRIES S216.000.00
APC CONTRACTORS S-100.0()0,00
.CENTRAL COAST CASUALTY 5400,938,00
WYSONG CONSTRUCTION S432,400.00
MILLER ENVIRONMENTAL S472,000.00
49
50
ITEM NUMBER: A-4
DATE: 2/22/11
191 1 �Y Y9791
scAno'a
Atascaaero City Council
Staff Report - Community Development Department
Alcoholic Beverage Control (ABC) License
To Serve Beer and Wine
PLN 2011-1394 / ABC 2011-0010
5990 Entrada
(Vino Therapy Studio / Wysong)
(Request to allow an Alcoholic Beverage Control license for the
on-site sale of beer and wine at a new spa in the downtown)
RECOMMENDATION:
Council adopt Draft Resolution A finding that public convenience or necessity would be
served by allowing the issuance of a Type 42 ABC license for the on-site sale of beer and
wine at a new day spa "Vino Therapy Studio' at 5990 Entrada.
DISCUSSION:
The applicant has applied through the Department of Alcohol Beverage Control (ABC) for a
Type 42 license for the on-site sale of beer and wine. The applicant will be opening a new
day spa at 5990 Entrada and is proposing to serve wine to clients with their massage or spa
treatment. A small bar counter will be installed in the reception area of the spa for clients to
order a glass of wine before or after their appointment.
The site is zoned (DC) Downtown Commercial and has a General Plan Land Use
Designation of (D) Downtown. Wine tasting facilities and day spas are both identified as
allowed uses in the Downtown Commercial zone.
Analysis:
ABC requires a letter of convenience from the City in order to issue a new beer and wine
license at this location. Section 23958.4 of the Alcoholic Beverage Control Act requires the
51
ITEM NUMBER: A-4
DATE: 2/22/11
local governing body of the area to determine that the license will serve public convenience
or necessity. This process is only required when it is found that "Undue Concentration" of
liquor licenses exists within the area. In this case, the Department of Alcoholic Beverage
Control (ABC) has identified that there is an undue concentration of liquor licenses within
the area. The proposed site is located in census tract number 0125.02, which allows up to
eleven (11) ABC licenses within the area without Council review. There are currently
thirteen (13) licenses existing within the census tract, and therefore ABC requires a finding
of public convenience or necessity from the local governing body (City Council) in order to
issue a new license.
The Atascadero Police Department has reviewed the proposed application has does not
have any concerns or opposition regarding the issuance of an additional license at this
location for the proposed business.
FISCAL IMPACT:
None.
ATTACHMENTS:
1 . Location Map
2. Draft Resolution A
52
Attachment 1
Attachment 1: Location Map: 5990 Entrada
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54
Attachment 2
Attachment 2: Resolution A
DRAFT RESOLUTION A
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF ATASCADERO, CALIFORNIA, FINDING THAT A
PUBLIC CONVENIENCE WILL BE SERVED BY ALLOWING THE
ISSUANCE OF A TYPE 42 ABC LICENSE AT 5990 ENTRADA
ON APN 029-342-009
(Vino Therapy Studio / Wysong)
WHEREAS, an application has been received from Larry Wysong of Vino Therapy (9140
Harvest Way, Atascadero CA 93422) Property Owner and Applicant, to request that the Council
make a finding or public convenience or necessity to allow the department of Alcoholic Beverage
Control to issue a Type 42 license for on-site sale of beer and wine at a spa at 5990 Entrada, (APN
029-342-009); and,
WHEREAS, the site's current General Plan Designation is D (Downtown); and,
WHEREAS, the site's current Zoning Designation is DC (Downtown Commercial); and,
WHEREAS, the Atascadero Police Department has reviewed the requested Type 42 on-sale
beer and wine license and does not believe it presents any public safety concerns, and,
WHEREAS, the City Council has determined that public convenience or necessity will be
served by the issuance of a Type 42 on-sale beer and wine license for a new beer and wine bar at 5990
Entrada; and,
WHEREAS, the City Council of the City of Atascadero considered the proposed application
at a public meeting on February 22, 2011; and,
NOW THEREFORE, the City Council of the City of Atascadero, hereby resolves to approve
PLN 2011-1394.
55
Attachment 2
On motion by Council Member and seconded by Council Member
the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:
AYES:
NOES:
ABSENT:
ADOPTED:
CITY OF ATASCADERO
By:
Tom O'Malley, Mayor
ATTEST:
Marcia McClure Torgerson, C.M.C., City Clerk
APPROVED AS TO FORM:
Brian A. Pierik, City Attorney
56
ITEM NUMBER: C- 1
DATE: 02/22/11
i
a
isle
L CAD o
Atascadero City Council
Staff Report - Public Works Department
2011 Community Development Block Grants
Funding Recommendations
RECOMMENDATION:
Council review, and approve funding recommendations for the 2011 Community
Development Block Grant (CDBG) program as shown below and approve adjustment of
awards on a proportional basis upon final receipt of the 2011 funding allocation from
the Department of Housing and Urban Development (HUD).
Public Facilities Requested
City of Atascadero - Handicapped Accessibility - Barrier Removal Projects 1 $108,300
North County Women's Shelter- Restroom Renovation T 13,000
People's Self Help Housing - Improvement to existing facility 10,000
Public Services - Limited to 15% of 2011 Allocation($30,300)
Atas. Community Services Foundation - Youth Activity Scholarships 2,300
Atascadero Loaves and Fishes - Operation of Food Pantry 12,000
EI Camino Homeless Organization - Operations 15,000
Literacy Council - Atascadero Program 1,000
Administration- Limited to 20% of 2010 Allocation($40,400)
City Program Administration Costs 40,400
Estimated Total Funding Available $202,000
DISCUSSION:
Background: The 2011 CDBG award process began in the Fall of 2010. The first of
two Workshops were held throughout the County to solicit public comment on
community needs. The County published a request for CDBG proposals. The City
received 15 applications for CDBG funds by the deadline and one after the deadline.
Total funding, based on previous levels, is anticipated to be $202,000. Final funding
amounts will be released by the Department of Housing and Community Development
in early 2011.
�I
57
ITEM NUMBER: C- 1
DATE: 02/22/11
On December 14, 2010, after reviewing the applications and hearing testimony from
applicants, Council approved draft funding recommendations for the 2011 cycle. The
recommendations were then published for the required minimum of 30 days during
which the second of the two Workshops was held. At that Workshop County and City
staff was available to discuss the recommendations and answer any questions
regarding the CDBG program.
Upon approval, the funding recommendations will be forwarded to the County for
submittal to and approval by the County Board of Supervisors and inclusion in the
countywide Consolidated Plan.
FISCAL IMPACT:
Available funds are estimated at $202,000 for the 2011 cycle.
ALTERNATIVES:
Council may modify the grant recommendations prior to approval. 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.
58
ITEM NUMBER: C -2
DATE: 02/22/11
1978�--I
Atascadaro City Counoii
Staff Report- Public Works Department
Transit Center Design Update
RECOMMENDATION:
Council receive for informational purposes the conceptual drawings and provide any
input as to additions or modifications to the design.
DISCUSSION:
In 2007, the City and the San Luis Obispo Council of Governments (SLOCOG)
commissioned a study to determine the feasibility of developing a downtown transit
center. The study was developed using accepted transit planning theory, operational
impacts, cost, and community / rider preferences as key elements of the selection
criteria. Staff presented the Site Selection study results to Council on September 22,
2009, and the location on Capistrano Avenue was chosen (Exhibit A.)
At its May 11, 2010 meeting, the City Council approved the Wallace Group, Inc., to
perform the Downtown Transit Center design.
The Downtown Transit Center design has an emphasis on durable construction,
hardscape, drought tolerant landscaping, and green design elements such as solar
lighting. Design costs will be further minimized by incorporating existing Downtown
Streetscape features such as sidewalk design, urns, benches and shelters. The key
goal will be to design a functional center that requires minimal additional right-of-way,
minimizes ongoing maintenance requirements and incorporates low impact, energy
efficient design features.
Attached is the conceptual site plan for the project prepared by the Wallace Group (See
Exhibit B). As recommended in the original Transit Center Study the site plan includes
the space for three transit buses in individual parking / loading stalls. Site amenities
include two shade structures, benches, trash cans, drinking fountain, street trees and
landscaping, route map and advertising kiosks, decorative retaining walls as well as a
paver pathway to the parking lot / City Hall building level.
59
ITEM NUMBER: C - 2
DATE: 02/22/11
Several features have been added to the project since the design work was initiated,
namely:
• Installation of stamped concrete crosswalks at Lewis Avenue / Capistrano
Avenue,
• Decorative streetscape lighting along the south side of Capistrano Avenue
towards Stadium Park (on the south side of the street) to improve safety for the
on-street parking used for Park-n-Ride users.
Perspective drawings and cross-sections of the site will be presented at the meeting as
part of the project presentation.
Site Location / Constraints
In an effort to avoid impacting the Colony Square property, the transit center site was
shifted slightly to the northwest, towards the Lewis Ave Bridge. The resulting layout
does not require additional land from the Colony Square project. The site plan was
provided to Larry Hail of Pinnacle Traffic Engineering, a licensed professional traffic
engineer, for a technical review of sight distance and safety issues. The engineer found
the design did meet required site distance standards, however they did recommend
additional automated caution signage activated by bus movements be installed at the
site.
Parking Lot Impacts
Parking in and around Colony Square is limited, and one of the primary goals of the
design was to create the transit site without reducing or impacting onsite parking. The
proposed site plan includes the installation of a concrete retaining wall parallel to
Capistrano Avenue to create a level site along the street while transitioning to the
grades of the lower City Hall Parking Lot. This parking lot serves both the City Hall
building with reciprocal parking rights for the balance of the Colony Square site. The
wall placement will reduce the width of a portion of the parking lot while still maintaining
the minimum City standards for space depth (18-ft) and aisle width (24-ft). No parking
spaces will be lost as a result of the project.
Staff will continue to work with the SLOCOG staff to attempt to negotiate a parking
lease or easement to support 10 to 15 Park-n-Ride parking spaces in the Bank of
America parking lot.
Architectural Features
The two transit shelter structures will be the enhanced tile roof (with gutters), timber,
stucco and ledgestone column design presented to Council during the Downtown
Streetscape design development (see attached Exhibit C). The concrete retaining walls
with textured and colored concrete with anti-graffiti coating with a durable capstone top.
All benches, trash cans, colored concrete flatwork and paver bands will be consistent
with the adopted Downtown Streetscape design elements used on previous projects.
The consultant is including solar powered lighting to illuminate the two shade structures
and site lighting.
The current project does not include restroom facilities.
60
ITEM NUMBER: C - 2
DATE: 02/22/11
Street Improvements
The project includes several design elements required for the increased bus traffic. The
widened portion of the street and three bus stalls will be constructed of colored concrete
for improved durability beneath the starting and stopping loads of a transit bus. The
existing asphalt on Capistrano Avenue, which is currently in poor condition, will be
rehabilitated and overlaid between the Lewis Avenue Bridge and Morro Road. On-
street parking in front of City Hall on Capistrano Avenue will be eliminated, and the road
segment will be re-striped with a single lane in each direction with Class 2 bike lanes on
both sides of the street.
Landscaping
The site improvements will include the installation of drought tolerant landscaping in the
form of shade trees at the Transit Center loading area, mulching under the large oak
tree in the City Hall parking lot, and decorative plantings along the shared Colony
Square property line and landing at the City Hall level of the parking lot. The project
does not include any turf in an effort to minimize maintenance and irrigation
requirements.
Based on comments received tonight staff will work with the consultant to finalize
construction drawings, process permits and secure construction funding with SLOCOG
prior to going out to bid on the project. Based on availability of Prop 1 B funds the
current schedule is tentatively:
Complete Construction Drawings: March 30, 2011
Receive Permits: May 06, 2011
City Council Authorization to Bid: May 10, 2011
Receive Bids: June 15, 2011
Secure SLOCOG Prop 1B Funding: July 01, 2011
City Council Approval: July 19, 2011
Early Construction Start Date: August 22, 2011
Early Construction Complete: December 15, 2011
The existing transit stop on Capistrano Avenue will continue to operate until the project
is complete.
FISCAL IMPACT:
SLOCOG remains highly supportive of a Transit Center Project. They have committed
Proposition 1B funding for the design of the project and in meetings with City staff
verbally committed to finding funds to build-out the project. Funding for the project is
anticipated to be Proposition 1B funds and Public Transportation, Improvement and
Service Enhancement Account (PTMISEA) Grant funds through SLOCOG, with
potential contributions from the Redevelopment Agency. Staff will return to City Council
at a future meeting with final design plans and a request to bid the project once funding
is secured.
61
ITEM NUMBER: C -2
DATE: 02/22/11
The fiscal impact would include staff time to administer the design, parking lease
acquisition (if required), environmental review and final design.
The total budget for the Downtown Transit Center project is shown below:
Project Costs
a. Surveying, Civil & Traffic Engineering $ 90,000
b. City Staff Costs, Environmental, Soils, Arborist, Misc. $ 30,000
c. Estimated Transit Center Construction Costs $507,455
d. Estimated Capistrano Road Overlay / Rehab $ 60,000
e. Contingency (+/-20%) $137,545
Total Project Cost: $825,000
Project Funding
a. Proposition 1 B (via SLOCOG) $700,000
b. PTMISEA Grant $125,000
Total Project Funding: $825,000
ALTERNATIVES:
1. Council could direct staff to reconsider elements of the design, modify scope of
project, revise project schedule.
2. Council could direct staff to terminate the project.
ATTACHMENT:
Exhibit A — Transit Center Site Selection Study "Conceptual" Site Plan
Exhibit B — Updated / Refined Site Plan — January 2011
Exhibit C — Transit Shelter Concept Design
Exhibit D - Perspective Views
Exhibit E - Engineer's Cost Estimate
62
ITEM NUMBER: C -2
DATE: 02/22/11
EXHIBIT A
SELECTED TRANSIT CENTER SITE
CAPISTRANO AVENUE
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63
ITEM NUMBER: C - 2
DATE: 02122111
EXHIBIT B
Updated / Refined Site Plan — January 2011
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ITEM NUMBER: C -2
DATE: 02/22/11
EXHIBIT C
TRANSIT SHELTER PLAN
—Red Clay Tile Roofing
i
Welded Steel Structure
WV"Square Tubing)
Color to Match Frazee
SS91 ',blrsiic Green"
r,
Pre-Cast Concrete Pier
—-- ----Bus Stop Siln
71
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-- Signage Area(Both Sides)
-T I Route Map&Schedule on Inside
—_ C0 -_—Colors to Match Downtown
LKEntry Arch
FronOack Side
--Standard Downtown Bench Y-3
Design(Color:Black)
65
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ITEM NUMBER: C -2
DATE: 02/22/11
EXHIBIT E
ENGINEER'S COST ESTIMATE
City of Atascadero
Transit Center Expansion Project
Preliminary Opinion of Probable Cost January 31st,2011
ITEM DESCRIPTION QUANTITY UNIT UNIT TOTAL
COST
1 Mobilization 1 LS $25,000.00 $25,000.00
2 Traffic Control&Construction Area Signage 1 LS $10,000.00 $10,000.00
3 Construction Surveying 1 LS $15,000.00 $15,000.00
4 Demolition&Tree Removal 1 LS $10,500.00 $10,500.00
5 Water Pollution Control Plan 1 LS $3,000.00 $3,000.00
6 1 Traffic Striping.Signage and Markings 1 LS $45,000.00 $45,000.00
7 Class II Aggregate Base(6"thick) 162 CY $80.00 $12,933.97
8 Concrete Bus Pad 2050 SF $11 00 $22,550.00
9 6"Concrete Curb 1745 LF $35.00 $61,075.00
10 City Std.Concrete Sidewalk 2135 SF $11.00 $23,485.00
11 Decorative Crosswalk(Stamped Concrete-City Std.) 1365 SF $30.00 $40,962.90
12 Decorative Sidewalk from Bus-Stop to City Hall Annex(Pavers-City Std.) 700 SF $25.00 $17,500.00
13 Decorative Paving Band(2.5 ft.wide,Stamped Concrete-City Std.) 735 SF $30.00 $22.050.00
14 42"Height Retaining Wall(Skate board proof) 181 LF $100.00 $18,135.00
15 Decorative Streetlights 13 EA $4,000.00 $52,000.00
16 Relocate Existing Decorative Streetlight 1 EA $4,500.00 $4,500.00
17 Relocate Existing Telephone Pedestal 1 EA $2,500.00 $2,500.00
18 Shelter 2 EA $16,300.00 $32,600.00
19 Kiosk 1 1 EA $4,000.00 $4,000.00
20 Bicycle Rack 1 EA $1.500.00 $1,500.00
21 Bench(Steel, Powder Coat Finish,Surface Mount) 6 EA $1,750.00 $10,500.00
22 CMU Plinth with Cast Concrete Cap(2.5'x2.5 SO) 4 EA $1,500.00 $6.000.00
23 Street Trees(24"Box Trees) 4 EA $250.00 $1,000.00
24 Tree Wells(with conc.Curb,root barrier,tree staples) 4 EA $1,500.00 $6,000.00
25 1 Tree Grates 4 EA $1,500.00 $6,000.00
26 IMulch(3"Deep,Shredded Bark) 5830 1 SF $0.75 $4,372.50
27 1 Soil Preparation and Amendments 5830 SF $0.25 $1,457.49
28 Shrubs 5 Gallon at 3.0 feet on center) 1683 SF $3.85 $6,479.55
29 Shrubs(5 Gallon at 6.0 feet on center) 1683 SF $1.00 $1,683.00
30 Trash/Recycle Recptacles 3 EA $85C.00 $2,550.00
31 Landscape Maintenance(90 days) 5830 SF $0.05 $291.50
32 Irrigation 2463 SF $1.25 $3,078.75
33 Backflow Device(2") 1 EA $2,000.00 $2,000.00
34 lController(30 Station,Building Mount) 1 EA $500.00 $500.00
35 Water Meter(Irrigation Only) 1 EA $1,250.00 $1,250.00
36 Electncal 1 I LS $30,000.00 $30,000.00
SUBTOTAL $507,455
CONSTRUCTION CONTINGENCIES @ 10% $50,745
TOTAL PRELIMINARY ESTIMATE $558,200
Conceptual Plan-Prelim Engineer's Estimate-RAA.xlsx 1/31/2011
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- - I
ITEM NUMBER: C -3
DATE: 02/22/11
rplrpr
191a'i' r � 1978
Atascadero City Council
Staff Report - City Manager's Office
Resolution in Opposition to the Governor's Proposal
to Abolish Redevelopment Agencies in California
RECOMMENDATION:
Council adopt the Draft Resolution, in opposition to the Governor's proposal to abolish
redevelopment agencies in California.
DISCUSSION:
Newly elected Governor Brown has proposed many program cuts and tax increases in
his plan to balance California's budget, which is currently a $25.4 billion deficit. One of
the 400-plus redevelopment agencies in California.
his proposals �s to eliminatep p g
Governor Brown contends that redevelopment agencies strip away tax money that
otherwise could be used for schools and essential services. Actually, redevelopment is
a tool for building and improving communities, spurring job growth and taxes, and is the
most significant provider of infrastructure, urban development and affordable housing in
the State.
The elimination of Atascadero's Redevelopment Agency will:
✓ Destroy local economic development
✓ Destroy our ability to revitalize blighted areas and bring them back to economic
vitality
✓ Disable the City's ability to support new businesses in the community and invest
in facilities and improvements that provide jobs to retailers, restaurateurs, and
construction workers
✓ Limit our ability to fund affordable housing, build public infrastructure
improvements and create commercial opportunities
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ITEM NUMBER: C-3
DATE: 02/22/11
Future efforts by the City to support projects will be impossible without the support of
redevelopment funding. Some past projects that have been supported by
redevelopment funding are:
✓ Colony Square — Galaxy Theater
✓ Sunken Gardens
✓ Lewis Avenue Bridge
✓ Downtown Streetscape
✓ Zoo improvements
✓ The Community Center
✓ Stimulus programs for restaurants and businesses
All California cities recognize that our State is facing a tough budget crisis; our cities are
also facing tough budget times. We know that cuts need to be made and that cities
need to take on additional responsibilities to aid the State at this time. We are willing to
work together on a solution to this problem. Eliminating redevelopment agencies is not
the answer.
The League of California Cities has asked all cities to join together and adopt a
Resolution in opposition to the proposal to abolish redevelopment agencies in
California.
FISCAL IMPACT:
None. The abolishment of our Redevelopment Agency would eliminate the Agency's
General Fund, which is currently $1,978,120.
ALTERNATIVES:
Council may decide to not oppose the elimination of redevelopment agencies in
California.
ATTACHMENTS:
Draft Resolution
70
ITEM NUMBER: C-3
DATE: 02/22/11
DRAFT RESOLUTION
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ATASCADERO, CALIFORNIA IN OPPOSITION TO THE
GOVERNOR'S PROPOSAL TO ABOLISH REDEVELOPMENT
AGENCIES IN CALIFORNIA
WHEREAS, as part of its 2011-12 budget proposal, the Governor has proposed
permanently abolishing California's more than 400 local redevelopment agencies; and,
WHEREAS, this proposal represents more of the same misguided and illegal State
budget raids of local government funds that voters have repeatedly sought to end, most recently
in November 2010 when an overwhelming 61% of voters elected to stop State raids of local
government funds, including redevelopment funds; and,
WHEREAS, this proposal will bring very little financial benefit to the State. According
to the State Controller's Office, redevelopment agencies have more than $87 billion in bond and
other contractual obligations that legally must be repaid before revenues are available to any
other purpose. In fact, according to the State Department of Finance's own budget documents.
there will be zero State savings in out years from shutting down redevelopment; and,
WHEREAS, this proposal will destroy local economic development, including hundreds
of thousands of jobs and billions of dollars in local economic activity throughout California; and,
WHEREAS, abolishment of redevelopment in Atascadero will destroy our ability to
revitalize blighted areas in our community and bring them back to economic vitality by creating
jobs, funding affordable housing, building public infrastructure improvements and creating
commercial opportunities; and,
WHEREAS, abolishment of redevelopment in Atascadero would disable the City's
ability to support new businesses in the community and invest in facilities and improvements that
provide hundreds of jobs to retailers, restaurateurs, and construction workers; and,
WHEREAS,projects supported by redevelopment funding in the past include Colony
Square—Galaxy Theatre, Sunken Gardens, Lewis Avenue Bridge, Downtown Streetscape, Zoo
�I improvements, a new Community Center, and financial incentives for new restaurants and
businesses. Future efforts along these lines would be impossible without the support of
redeveloping funding, and,
WHEREAS, throughout California, redevelopment activities support 304,000 jobs
annually, including 170,600 construction jobs, contribute over$40 billion annually to
California's economy in the generation of goods and services, and generate more than $2 billion
in state and local taxes in a typical year; and,
71
ITEM NUMBER: C-3
DATE: 02/22/11
WHEREAS, eliminating redevelopment will take away one of the few tools local
governments have to comply with state requirements to plan for more compact urban
development supported by transit-oriented development, housing,jobs and infrastructure; and,
WHEREAS, eliminating redevelopment will destroy the development of affordable
housing in California. Redevelopment agencies are the second largest funder of affordable
housing, behind only the federal government, responsible for over 98,000 units of affordable
housing since 1993; and,
WHEREAS, shutting down redevelopment agencies is a violation of multiple State and
Federal constitutional provisions.
NOW, THEREFORE, BE IT RESOLVED that the City of Atascadero formally
opposes the Administration's proposal to abolish redevelopment in California.
THEREFORE, BE IT FURTHER RESOLVED, that the City of Atascadero authorizes
its City Council and City staff to communicate its opposition to this proposal to the Governor,
the Legislature, business groups, and citizens.
On Motion by Council Member and seconded by Council
Member the foregoing Resolution was adopted on the following roll-call
vote:
AYES:
NOES:
ABSENT:
ADOPTED:
CITY OF ATASCADERO:
ATTEST: Tom O'Malley, Mayor
Marcia McClure Torgerson, C.M.C., City Clerk
APPROVED AS TO FORM:
Brian A. Pierik, City Attorney
72