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HomeMy WebLinkAbout102312 CC Agenda-combined . yl 'a`$ i979CITY OF A TASCADERO CITY COUNCIL AGENDA Tuesday, October 23, 2012 City Hall Council Chambers 6907 EI Camino Real, Atascadero, California City Council Regular Session: 6:00 p.m. City Council Closed Session: Immediately following the conclusion of the City Council Regular Session REGULAR SESSION — CALL TO ORDER: 6:00 P.M. PLEDGE OF ALLEGIANCE: Council Member Brian Sturtevant ROLL CALL: Mayor Kelley Mayor Pro Tem O'Malley Council Member Clay Council Member Fonzi Council Member Sturtevant APPROVAL OF AGENDA: Roll Call PRESENTATIONS: 1. Recognition of State of California Special Training Award Recipients 2. Employee Service Awards 3. Advanced Meter Presentation by Southern California Gas Representatives, Tim Mahoney and Scott Loveless 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 — October 9, 2012 ■ Recommendation: Council approve the City Council Draft Action Minutes of October 9, 2012. [City Clerk] 2. City Council Draft Action Closed Session Minutes — October 9, 2012 ■ Recommendation: Council approve the City Council Draft Action Closed Session Minutes of October 9, 2012. [City Clerk] 3. Proposed Amendments to Title 2 of the Atascadero Municipal Code (AMC) Relating to Personnel System Rules and Election Issues ■ Fiscal Impact: None. ■ Recommendations: Council: 1. Adopt on second reading by title only Draft Ordinance A, amending Title 2, Chapter 2 of the AMC relating to the Personnel System; and, 2. Adopt on second reading by title only Draft Ordinance B, amending Title 2, Chapters 7 & 14 of the AMC relating to Election Issues. [City Clerk] 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. Comments made during Community Forum will not be a subject of discussion. A maximum of 30 minutes will be allowed for Community Forum, unless changed by the Council. Any members of the public who have questions or need information, may contact the City Clerk's Office, between the hours of 8:30 a.m. and 5:00 p.m. at 470-3400, or mtorgerson(a_atascadero.org.) B. PUBLIC HEARINGS: None. C. MANAGEMENT REPORTS: 1. Hotel Development at Home Depot Center — Agreement for Deferred Payment of Development Fees ■ Fiscal Impact: As permits are processed, permit fees of approximately $110,000 will be paid. The development fees of $610,220 will be paid over a period of five years, instead of being paid at the completion of the project. Also, a small amount of interest income would also be realized annually of approximately $5,000. ■ Recommendation: Council approve the Agreement and related documents, deferring payment of development fees over a period of five years for construction of a 130-room suites hotel and banquet facility at the Home Depot Center. [City Manager] 2. Public Relations and Marketing Program ■ Fiscal Impact: The City Council approved at their August 14, 2012 meeting, $176,000 for the Promotions Program; appropriating $131,120 from General Fund Reserves and reallocating $44,880 from the Transfer to RDA for Tourism Fund account. ■ Recommendation: Council authorize the City Manager to negotiate and execute a contract with the successful candidate for the Public Relations & Marketing Program, with the effective date of November 1, 2012. [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 Kelley 1. Atascadero State Hospital Advisory Committee 2. City of Atascadero Design Review Committee 3. City of Atascadero Finance Committee 4. County Mayors Round Table 5. Economic Vitality Corporation, Board of Directors (EVC) 6. Homeless Services Oversight Council 7. Oversight Board for the Successor Agency to the Community Redevelopment Agency of Atascadero Mayor Pro Tem O'Malley 1. City / Schools Committee 2. Integrated Waste Management Authority (IWMA) 3. League of California Cities — CITIPAC Board Member 4. SLO Council of Governments (SLOCOG) 5. SLO Regional Transit Authority (SLORTA) 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 E. INDIVIDUAL DETERMINATION AND / OR ACTION: 1. City Council 2. City Clerk 3. City Treasurer 4. City Attorney 5. City Manager F. ADJOURN TO CITY COUNCIL CLOSED SESSION: CITY COUNCIL CLOSED SESSION: Immediately following the conclusion of the City Council Regular Session 1. CLOSED SESSION -- PUBLIC COMMENT 2. COUNCIL LEAVES CHAMBERS TO BEGIN CLOSED SESSION 3. CLOSED SESSION -- CALL TO ORDER a. Conference with Legal Counsel — Existing Litigation Government Code Section 54956.9(a) Save Atascadero v. City of Atascadero, et al. San Luis Obispo Superior Court Case No. 128230 4. CLOSED SESSION -- ADJOURNMENT 5. COUNCIL RETURNS TO CHAMBERS 6. CLOSED SESSION -- REPORT 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 October 23, 2012 Regular Session of the Atascadero City Council was posted on October 16, 2012, 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 16th day of October, 2012, at Atascadero, California. Victoria Randall, Deputy City Clerk City of Atascadero 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. Regular Council meetings are televised live, audio recorded and videotaped for future playback. Charter Communication customers may view the meetings on Charter Cable Channel 20 or via the City's website at www.atascadero.org. Meetings are also broadcast on radio station KPRL AM 1230. Contact the City Clerk for more information (470-3400). 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. 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). 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. 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 The Mayor will announce when the public comment period is closed, and thereafter, no further public comments will be heard by the Council. ITEM NUMBER: A- 1 DATE: 10/23/12 F1_ 09F-,lp n o� 1915 R NOD E; � CITY OF ATASCADERO CITY COUNCIL DRAFT ACTION MINUTES Tuesday, October 9, 2012 City Hall Council Chambers 6907 EI Camino Real, Atascadero, California City Council Regular Session: 6:00 p.m. Successor Agency to the Immediately following the Community Redevelopment conclusion of the City Council Agency of Atascadero Regular Session City Council Closed Session: Immediately following the conclusion of the Successor Agency to the Community Redevelopment Agency of Atascadero REGULAR SESSION — CALL TO ORDER: 6:00 P.M. Mayor Kelley called the meeting to order at 6:01 p.m. and Council Member Fonzi led the Pledge of Allegiance. Atascadero City Council Draft Action Minutes of October 9,2012 Page 1 of 5 ITEM NUMBER: A- 1 DATE: 10/23/12 ROLL CALL: Present: Council Members Clay, Fonzi, Sturtevant, Mayor Pro Tem O'Malley and Mayor Kelley Absent: None Others Present: City Clerk / Assistant to City Manager Marcia McClure Torgerson Staff Present: City Manager Wade McKinney, Assistant City Manager Jim Lewis, Administrative Services Director Rachelle Rickard, Community Development Director Warren Frace, Public Works Director Russ Thompson, Police Chief Jerel Haley, Fire Chief Kurt Stone, and City Attorney Brian Pierik. APPROVAL OF AGENDA: MOTION: By Mayor Pro Tem O'Malley and seconded by Council Member Sturtevant to approve the agenda. Motion passed 5:0 by a roll-call vote. PRESENTATIONS: 1. Proclamation declaring October, 2012, as Domestic Violence Awareness Month Council Member Fonzi presented the Proclamation to Jennifer Adams, Executive Director of the North County Women's Shelter and Resource Center. 2. Proclamation declaring October, 2012, as Rideshare Month in Atascadero Mayor Pro Tem O'Malley presented the Proclamation to Angela Nelson, Program Coordinator of Ride Share. 3. Recognition of State of California Special Training Award Recipients Fire Chief Kurt Stone recognized Tom Little for his achievements being recognized by the State of California validating his efforts in the field. Atascadero City Council Draft Action Minutes of October 9,2012 Page 2 of 5 ITEM NUMBER: A- 1 DATE: 10/23/12 A. CONSENT CALENDAR: 1. City Council Draft Action Minutes — September 11, 2012 ■ Recommendation: Council approve the City Council Draft Action Minutes of September 11, 2012. [City Clerk] 2. City Council Draft Action Minutes — September 25, 2012 ■ Recommendation: Council approve the City Council Draft Action Minutes of September 25, 2012. [City Clerk] 3. August 2012 Accounts Payable and Payroll ■ Fiscal Impact: $4,668,802.90. ■ Recommendation: Council approve certified City accounts payable, payroll and payroll vendor checks for August 2012. [Administrative Services] Citizen Paskin pulled items #A-1 & #A-2. MOTION: By Council Member Fonzi and seconded by Council Member Clay to approve Item #A-3 of the Consent Calendar. Motion passed 5:0 by a roll-call vote. Item #A-1 & #A-2: Mr. Paskin expressed his displeasure with the Action Minutes format. MOTION: By Council Member Sturtevant and seconded by Council Member Fonzi to approve the Consent Calendar. Motion passed 5:0 by a roll-call vote. UPDATES FROM THE CITY MANAGER: City Manager Wade McKinney gave an update on projects and issues within the City. COMMUNITY FORUM: The following citizens spoke during Community Forum: Tom Farrell, Susan Warren (Exhibit A), Mitch Paskin, and Donald Cross. Mayor Kelley closed the COMMUNITY FORUM period. Atascadero City Council Draft Action Minutes of October 9,2012 Page 3 of 5 ITEM NUMBER: A- 1 DATE: 10/23/12 B. PUBLIC HEARINGS: 1. Proposed Amendments to Title 2 of the Atascadero Municipal Code (AMC) Relating to Personnel System Rules and Election Issues ■ Fiscal Impact: None. ■ Recommendations: Council: 1. Introduce for first reading by title only Draft Ordinance A, amending Title 2, Chapter 2 of the AMC relating to the Personnel System; and, 2. Introduce for first reading by title only Draft Ordinance B, amending Title 2, Chapters 7 & 14 of the AMC relating to Election Issues. [City Clerk] Assistant to the City Manager / City Clerk Marcia McClure Torgerson gave the staff report and answered questions from the Council. PUBLIC COMMENT: None MOTION: By Council Member Fonzi and seconded by Council Member Sturtevant to: 1. Introduce for first reading by title only Draft Ordinance A, amending Title 2, Chapter 2 of the AMC relating to the Personnel System; and, 2. Introduce for first reading by title only Draft Ordinance B, amending Title 2, Chapters 7 & 14 of the AMC relating to Election Issues. Motion passed 5:0 by a roll-call vote. C. MANAGEMENT REPORTS: None. COUNCIL ANNOUNCEMENTS AND REPORTS: The City Council Members made brief announcements. D. COMMITTEE REPORTS: Mayor Pro Tem O'Malley 1. SLO Council of Governments (SLOCOG) - Trial run — re-instated the bus run between Atascadero and Morro Bay. Atascadero City Council Draft Action Minutes of October 9,2012 Page 4 of 5 ITEM NUMBER: A- 1 DATE: 10/23/12 Council Member Fonzi 1. City of Atascadero Design Review Committee — Discussed the new hotel being proposed near Home Depot. E. INDIVIDUAL DETERMINATION AND / OR ACTION: None F. ADJOURN TO SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO: Mayor Kelley adjourned the City Council meeting to the Successor Agency meeting at 7:07 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— Handout from Susan Warren Atascadero City Council Draft Action Minutes of October 9,2012 Page 5 of 5 ITEM NUMBER: A- 2 DATE: 10/23/12 R FT - y �i19y 1818 R 1979 \ -4- CAD]Ro CITY OF ATASCADERO CITY COUNCIL DRAFT ACTION MINUTES Tuesday, October 9, 2012 City Hall Council Chambers 6907 EI Camino Real, Atascadero, California CITY COUNCIL CLOSED SESSION: Immediately following the conclusion of the Successor Agency to the Community Redevelopment Agency of Atascadero Mayor Kelley announced at 7:30 p.m. that the Council is going into Closed Session. 1. CLOSED SESSION -- PUBLIC COMMENT - None 2. COUNCIL LEAVES CHAMBERS TO BEGIN CLOSED SESSION 3. CLOSED SESSION -- CALL TO ORDER 1. Conference with Legal Counsel — Existing Litigation Government Code Section 54956.9(a) Save Atascadero v. City of Atascadero, et al. San Luis Obispo Superior Court Case No. 128230 4. CLOSED SESSION -- ADJOURNMENT 5. COUNCIL RETURNS TO CHAMBERS 6. CLOSED SESSION -- REPORT Atascadero City Council—Closed Session Draft Action Minutes of October 9,2012 Page 1 of 2 ITEM NUMBER: A-2 DATE: 10/23/12 City Attorney Pierik announced that there was no reportable action taken. ADJOURNMENT: Mayor Kelley adjourned the meeting at 8:15 p.m. MINUTES PREPARED BY: Marcia McClure Torgerson, C.M.C. City Clerk / Assistant to the City Manager Atascadero City Council—Closed Session Draft Action Minutes of October 9,2012 Page 2 of 2 ITEM NUMBER: A- 3 DATE: 10/23/12 r-r�r r.;rfr' `1rm 1979 A�SCAD Atascadero City Council Staff Report - City Clerk's Office Proposed Amendments to Title 2 of the Atascadero Municipal Code (AMC) Relating to Personnel System Rules and Election Issues RECOMMENDATIONS: Council: 1. Adopt on second reading by title only Draft Ordinance A, amending Title 2, Chapter 2 of the AMC relating to the Personnel System; and, 2. Adopt on second reading by title only Draft Ordinance B, amending Title 2, Chapters 7 & 14 of the AMC relating to Election Issues. DISCUSSION: On October 9, 2012, the City Council reviewed staff's recommendations regarding specific Sections in the Atascadero Municipal Code. The Sections pertained to the Personnel System Rules and Elections in Title 2, Chapters 2, 7 & 14. The City Council approved of staff's recommendations and introduced for first reading by title only, the two proposed Draft Ordinances. These Ordinances are being returned to the City Council to be adopted on second reading by title only. FISCAL IMPACT: None ALTERNATIVES: The City Council may decide to not adopt the proposed amendments to the AMC. ITEM NUMBER: A- 3 DATE: 10/23/12 ATTACHMENTS: Draft Ordinance A Draft Ordinance B ITEM NUMBER: B - 1 DATE: 10/09/12 Attachment 1 DRAFT ORDINANCE A AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, AMENDING TITLE 2, CHAPTER 2 OF THE ATASCADERO MUNICIPAL CODE (AMC) RELATING TO PERSONNEL RULES The City Council hereby finds and declares as follows: WHEREAS, the City Council of the City of Atascadero originally adopted personnel rules in 1980; and, WHEREAS, the Personnel System Rules is the document that governs all aspects of the City's personnel function; and, WHEREAS, the City Council of the City of Atascadero, at their meeting of June 12, 2012, adopted the revised Personnel System Rules; and, WHEREAS, this revision makes the AMC consistent with the Personnel System Rules recently adopted by the City Council. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ATASCADERO HEREBY ORDAINS AS FOLLOWS: SECTION 1: Title 2, Chapter 2 of the Atascadero Municipal Code is hereby amended as follows: Chapter 2 PERSONNEL SYSTEM 2-2.01 Adoption. In order to establish an equitable and uniform procedure for dealing with personnel matters, to attract to municipal service the best and most competent persons available, to assure that appointments and promotions of employees will be based on merit and fitness, and to provide a reasonable degree of security for qualified employees, the Personnel System Rules shall be adopted. These Rules shall govern all personnel matters for the City. (Ord. 24 § 2-2.01, 1980) 2-2.02 Adoption and amendment of rules and policies. (a) Personnel system rules shall be adopted by resolution of the Council. Reasonable advanced written notice shall be given to each recognized employee organization affected by any ordinance, rule, resolution, or regulation, or amendment thereof, proposed to be adopted by the Council (optional if not within the scope of ITEM NUMBER: B - 1 DATE: 10/09/12 Attachment 1 representation). Upon request, the Personnel Officer shall provide the opportunity to meet with any employee organization so requesting regarding amendments affecting wages, hours, and other terms and conditions of employment, as specified in the City's employer/employee relations resolution and as specified as being a matter within the scope of representation. (b) As provided in Section 3500 et seq. of the Government Code, in cases of emergency, when the City Council determines that amendment(s) to personnel system rules must be adopted immediately without prior notice or meeting with a recognized employee organization, the City shall provide such notice and opportunity to meet at the earliest practicable time following adoption by the City Council, unless otherwise specified. Amendments and revisions may be suggested by any interested party and shall be processed as provided in the personnel system rules orthe Employer/Employee Relations Resolution. (c) The personnel system rules shall establish regulations governing the personnel system: SECTION 2: A summary of this ordinance, approved by the City Attorney, together with the ayes and noes, shall be published twice: at least five days prior to its final passage in the Atascadero News, a newspaper published and circulated in the City of Atascadero, and; before the expiration of fifteen (15) days after its final passage, in the Atascadero News, a newspaper published and circulated in the City of Atascadero. A copy of the full text of this ordinance shall be on file in the City Clerk's Office on and after the date following introduction and passage and shall be available to any interested member of the public. INTRODUCED at a regular meeting of the City Council held on , and PASSED and ADOPTED by the City Council of the City of Atascadero, State of California, on by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: CITY OF ATASCADERO Bob Kelley,Mayor ITEM NUMBER: B - 1 DATE: 10/09/12 Attachment 1 ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney ITEM NUMBER: B - 1 DATE: 10/09/12 Attachment 2 DRAFT ORDINANCE B AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, AMENDING TITLE 2, CHAPTERS 7 & 14 OF THE ATASCADERO MUNICIPAL CODE (AMC) RELATING TO ELECTION ISSUES The City Council hereby finds and declares as follows: WHEREAS, the City Council of the City of Atascadero has previously adopted AMC Chapters 2-7 &2-14 concerning the City Treasurer and Elections; and, WHEREAS,the AMC neglects to mention in Title 2, Chapter 7 that the City Treasurer is elected; and, WHEREAS, the electors of the City of Atascadero, at the election of November 2, 2010, voted to have an elected Mayor as of the 2012 election.; and, WHEREAS, the electors also designated that the elected Mayor term will be for two years; and, WHEREAS, the City Council desires to update the Atascadero Municipal Code regarding all elected officials. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ATASCADERO HEREBY ORDAINS AS FOLLOWS: SECTION 1: Title 2, Chapter 7 of the Atascadero Municipal Code is hereby amended as follows: 2-7.01 Creation and functions. (a) The office of the City Treasurer is confirmed as provided in Section 36501 and 36502 of the Government Code of the State. The office shall be elected. The City Treasurer shall perform such duties as are prescribed by Sections 41001 through 41007 of the Government Code of the State. The City Treasurer shall perform such other duties consistent with this Code as may be required of him by the Council. (b) The principal functions of the City Treasurer shall be to receive and safely keep all public funds coming into his hands as treasurer, and to comply with all laws governing the deposit and securing of public funds and the handling of trust funds in his possession. (Ord. 49 § 2-5.201, 1982) ITEM NUMBER: B - 1 DATE: 10/09/12 Attachment 2 SECTION 2: Title 2, Chapter 14 of the Atascadero Municipal Code is hereby amended as follows: Chapter 14 ELECTIONS 2-14.01 Held when. Pursuant to the authority granted by the State, the City shall hold its general municipal election on the same day as the statewide general election. The date for said election is the first Tuesday after the first Monday in November of even-numbered years, unless otherwise designated by the State. (Ord. 288 § 1, 1995: Ord. 45 § 2-4.101, 198 1) 2-14.02 Elected Positions (a) The electors shall elect a mayor, four city councilmembers, a city treasurer and a city clerk. (b) The term of office of the mayor shall be two years. The term of the office of the councilmembers, treasurer and clerk shall be four years. SECTION 3: A summary of this ordinance, approved by the City Attorney, together with the ayes and noes, shall be published twice: at least five days prior to its final passage in the Atascadero News, a newspaper published and circulated in the City of Atascadero, and; before the expiration of fifteen (15) days after its final passage, in the Atascadero News, a newspaper published and circulated in the City of Atascadero. A copy of the full text of this ordinance shall be on file in the City Clerk's Office on and after the date following introduction and passage and shall be available to any interested member of the public. INTRODUCED at a regular meeting of the City Council held on , and PASSED and ADOPTED by the City Council of the City of Atascadero, State of California, on , by the following roll call vote: ITEM NUMBER: B - 1 DATE: 10/09/12 Attachment 2 AYES: NOES: ABSTAIN: ABSENT: CITY OF ATASCADERO Bob Kelley, Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney ITEM NUMBER: C - 1 DATE: 10/23/12 �ATA'sranERO Atascadero City Council Staff Report — City Manager's Office Hotel Development at Home Depot Center Agreement for Deferred Payment of Development Fees RECOMMENDATION: Council approve the Agreement and related documents, deferring payment of development fees over a period of five years for construction of a 130-room suites hotel and banquet facility at the Home Depot Center. DISCUSSION: On August 14, 2012, the City Council reviewed and approved in concept a request to defer development fees for a new hotel being built at the Home Depot Center. The staff report providing background on the project is attached (Attachment A). The project has since been reviewed by the Design Review Committee and received widespread support. The project will be heard by the Planning Commission on October 16, 2012. Tonight, staff is recommending Council approve the attached documents consistent with the concept previously approved by the City Council. Review of Proposed Project The proposed project includes a four story, 130-room all suites hotel that would be operated by an internationally known and publicly traded company. In addition, a meeting facility of approximately 5,000 square feet would be included at the hotel. Construction costs for the building are estimated at $20 million. Once the hotel is built, the developer believes enough interest could be generated to complete the remaining commercial development opportunities at the site. The site plan for the development is attached (Attachment B). The Proposal A fee deferral was requested by the developer and approved in concept by the City Council. The deferral would call for immediate payment of permit processing fees as ITEM NUMBER: C - 1 DATE: 10/23/12 permits are processed (approximately $110,000) with the payment of development fees spread out over five years (estimated at $610,220). The attached Agreement (Attachment C) has been negotiated between the developer and staff and reflects the Council's approved concept. Additionally, a second deed of trust is attached to secure remaining balances against the property (Attachment D). Specifically, the Agreement states: • Payment of the development fees of $610,220 will be made annually and amortized over 10 years at 0.98% interest. o The interest rate is based on the last quarter's (June 2012) yield on the City's investment pool. • Full payment would be made in five years. Payments would be approximately $65,000 annually, with a balance of $309,279 due at the end of five years. o There is no prepayment penalty. • The note would be secured with a second deed of trust, behind the construction loan. The bank has accepted the second deed of trust. • Permit processing would be expedited. FISCAL IMPACT: As a result of this development, permit fees of approximately $110,000 and development fees of $610,220 will be received. Because these fees will be paid over time, the development fees will not be immediately available. Future projects that would benefit from these development fees can be planned as the fees are paid or when the loan is paid off. As a result of the loan, a small amount of interest income would also be realized annually of approximately $5,000. The project is estimated to be completed by the Summer of 2014. Once the hotel is open, annual increases in General Fund revenue will be significant with annual revenues close to $400,000 being realized. Of this amount, approximately $32,000 would come from property taxes, $350,000 from transient occupancy taxes, and $18,000 in sales taxes. This amount could increase if the shopping center was fully developed as a result of the increased development in the area. ALTERNATIVES: Council may: 1. Do not approve the agreement. 2. Make modifications to the agreement. 3. Return to staff for further information. ITEM NUMBER: C - 1 DATE: 10/23/12 ATTACHMENTS: Attachment A: Staff Report from August 14, 2012 City Council Meeting Attachment B: Project Site Plan Attachment C: Fee Deferral Agreement Attachment D: Second Deed of Trust ATTACHMENT A ITEM NUMBER: C - 3 Q. DATE: 08/14/12 r ia79'r7 A tascadero City Council Staff Report — City Manager's Office Potential Hotel Development at Home Depot Center — Request for Deferred Payment of Development Fees RECOMMENDATIONS: Council: 1. Approve the proposal from Atascadero 101 Associates to defer payment of development fees over a period of five years for construction of a 130-room suites hotel and banquet facility at the Home Depot Center; and, 2. Direct staff to negotiate details and prepare final documents for City Council consideration. DISCUSSION: Background: On March 16, 1999, the Planning Commission approved all of the environmental documentation necessary to construct 239,000 square feet of retail at EI Camino Real and San Ramon Road. On August 3, 1999, the Planning Commission approved an amendment of Phase 1 to include a 128,000 square foot home improvement center, The Home Depot. Phase 1, located on the east side of EI Camino Real has been mostly developed on the site which now includes The Home Depot, Staples, Starbucks, a mattress store and a nail spa. There is still additional space for retail on the site. Phase 2 of the site, located on the west side of EI Camino Real has not been developed. Since this time amendments have been approved for the site to make modifications to the retail buildings, but there has been no interest in developing the site. Both the developer and staff worked to develop Phase 2 for several years. It became apparent as the economy slowed that it would be difficult to find an interested retailer for the site; and, working with the property owner, Westar Associates, staff began to look into other uses. At the same time, tourism to the area was increasing significantly and ATTACHMENT A ITEM NUMBER: C - 3 DATE: 08/14/12 hotels were being built throughout the North County. The site, based on its proximity to vineyards and tasting rooms, views of the countryside and easy freeway access and visibility, provided a great opportunity for a hotel. On January 8, 2008 the City Council adopted an ordinance amending Planned Development Overlay District Number 9, to allow for hotels, motels, and eating and drinking places with drive-through facilities on the site. Since this time, the Office of Economic Development has been aggressively marketing the site for a hotel. Meetings were set up at International Council of Shopping Centers (ICSC) conferences, marketing materials were developed, consultants, brokers and hotel owners were contacted and meetings continued to be held with the property owner. There were a few times when it appeared a hotel operator was interested and a deal could be put together, but each time the opportunity fell through as a result of the project finances being too tight or financing being unavailable. Despite these setbacks, the City has continued to work to promote the site. Proposed Project Once again a hotel operator is showing strong interest in the site and a tentative package is being put together between the hotel operator, property owner, and the developer, Atascadero 101 Associates. The proposed project includes a four story, 130-room suites hotel that would be operated by an internationally known and publicly traded company. In addition, a banquet facility would be included at the hotel. Construction costs for the building are estimated at $20 million. Once the hotel is built, the developer believes enough interest could be generated to complete the remaining commercial development opportunities at the site. As the economy is still recovering slowly and lending is still difficult, the financing for the project is tight and the developer has sent the City a letter requesting a deferral of payment for development fees. This request is attached (Attachment A). The Proposal The developer is proposing that the City allow the payment of development fees over time to be spread out over five years. Development fees are estimated at $610,220. Permit processing fees of approximately $110,000 would be paid as permits were issued. Specifically, the request is to: • Amortize payments of the development fees of $610,220 over 10 years at 0.98% interest. • The interest rate being suggested is based on the last quarter's (June 2012) yield on the City's investment pool. Staff is recommending that this rate be a variable rate instead of a fixed rate. This would need to be negotiated with Atascadero 101 Associates. • Full payment would be made in five years. Payments would be approximately $65,000 annually, with a balance of $309,279 due at five years. ATTACHMENT A ITEM NUMBER: C - 3 DATE: 08/14/12 • The note would be secured with a second deed of trust, behind the construction loan. • Permit processing would be expedited. While this proposal would result in a delay of payment for development fees, the City would realize increased property taxes of approximately $32,000 annually and increased transient occupancy taxes of approximately $350,000 annually. Sales taxes from visitors' spending money in the community and from potential new businesses in the area could increase the annual revenues to close to $400,000. A specific site plan and details of development are still being pulled together. Once specific deal points are approved by the developer, property owner and hotel operator and project specifics are developed, staff will return to the City Council with documentation for final approval of the fee deferral. FISCAL IMPACT: As a result of this development, permit fees of approximately $110,000 and development fees of $610,220 will be received. Because these fees will be paid over time, the development fees will not be immediately available. Future projects that would benefit from these development fees can be planned as the fees are paid or when the loan is paid off. As a result of the loan, a small amount of interest income would also be realized annually of approximately $5,000. Once the hotel is open, annual increases in General Fund revenue will be significant with annual revenues close to $400,000 being realized. This amount could increase if the shopping center was fully developed as a result of the increased development in the area. ALTERNATIVES: 4. Accept the developer's request for assistance with modifications. 5. Deny the developer's request for assistance. 6. Request more information from the developer and/or staff. ATTACHMENT: Letter of Request from Atascadero 101 Associates ATTACHMENT A ITEM NUMBER: C - 1 DATE: 10/23/12 Attachment A ATASCADERO 101 ASSOCIATES 2925 BRISTOL STREET COSTA MESA, CA 92626 August 3,2012 James R.Lewis,ICMA-CM City of Ataseadero 6907 El Camino Real Atascadero,CA 93422 Re: Development Impact Fees Atascadero Dear Jim: As discussed previously with Mayor Kelley,we are negotiating with a hotel developer/operator for a 130-room Suites Hotel that would include a banquet facility. We are trying to entice the developer to choose our site and are trying to make this project economically viable. This hotel would be a great benefit to the City with its bed tax of approximately$350,000 per year and an increase of property taxes,based on improvements,of almost$20 million. It would also hopefully provide a draw to the site which would allow us to attract other retail tenants to the City. We have spent millions of dollars developing this site,constructing infrastructure improvements but have struggled to attract and sustain new retailers. This hotel could hopefully generate other new businesses for the site and finish the entire development. As such,we would like to propose that the City allow us to spread out the payment of the Development Impact Fees,approximately$719,359,for the hotel development. An actual payment of$109,139 would be made as the project progresses and permits were pulled. The remaining$610,220 would be amortized over 10 years at.98%interest with an annual payment of$65,000,with a balance of$309,279 due in 5 years. We would also secure this note with a second deed of trust,behind the construction loan,provided the lender approves the terms of this proposal. Jim,I think this would be a win-win proposal for both the City of Atascadero and Atascadero 101 Associates. Please let me know if you need anything further from me. Sincerely, ATASCADERO 101 ASSOCIATES T.UA I Mark D.Hulme Partner/CFO Cc: Peter J.Koetting ITEM NUMBER: C - 1 DATE: 10/23/12 Attachment B 1- AI , FOU a STDaY' �• - ` Sp •,TIT 9F Il.1Po 5F - SITE*lEA 63T4CRES MOTEL <Dyy rf,� 'I SLILCWG7 'B IW EF 'L • EXp.W SP40E Sr A 71,SF OTAL SF AZ M SF RDW TOTAL 1.70 R(MIS IPAR%FK q—.1W61 Iwo E%HILT SRX!tl"IN SF 7151ALL5 RFT4I EIIICW:i S \ •1} PAC A 10700 SF PAD& E.LOO Sr TOTAL 1&KID W PAD A TOTAL BUILDING A= 10 EN SF i �.S DI,E STORY 9F !• TOTAL-ARRING REDUIRED DI STALLS �� ID,DOD IL TOTAL UAAbUNG POCNIAO DI STALLS &ApNG 1 SITE(>'YEgWE 341% �.�►_ � let _it�i ,- ' 40' 80• 126r ty Westar, Atascadero SITE PLAN SCALE 7`=40=0- N _ ARCHITECTS ORANGE r4,NORTRGR4NdrSr, ITEM NUMBER: C - 1 DATE: 10/23/12 Attachment C AGREEMENT FOR DEFERRAL OF DEVELOPMENT IMPACT FEES By and Between CITY OF ATASCADERO an ATASCADERO 101 ASSOCIATES a [type of organization] DATED: , 2012 ITEM NUMBER: C - 1 DATE: 10/23/12 Attachment C AGREEMENT FOR DEFERRAL OF DEVELOPMENT IMPACT FEES This Agreement for Deferral of Development Impact Fees ("Agreement"), dated for reference purposes as first indicated on the cover page, is entered into by and between the CITY OF ATASCADERO, a California municipal corporation ("City") and ATASCADERO 101 ASSOCIATES, a Formal status (corporation, 11c, et ("Developer") on the following terms and conditions: RECITALS A. Developer is presently developing a Project on the Property located within the City of Atascadero, California. The Developer will need to obtain permits and approvals for the Project. A standard condition on the issuance of these permits will be the payment of City imposed Permit and Processing Fees and Development Impact Fees. These Permit and Processing Fees and Development Impact Fees are generally payable to the City at the time the project applicant submits an application to the City for these permits and approvals. B. The City has established a regular program of imposing the payment of specified Permit and Processing Fees on the construction of new development projects within the City with respect to the connection of the Project to City utility services as well as inspection and processing of permits by various City departments. These fees are typically payable to the City at the time the project applicant submits an application to the City for these permits and approvals. C. The City has established a regular program of the payment of specified Development Impact Fees to offset impacts on public services from new development within the City. These fees, listed below, are typically payable to the City at the time the project applicant submits an application to the City for permits and approvals. D. In certain instances the City acknowledges that it may be to the public's benefit to defer the payment of Permit and Processing Fees or Development Impact Fees until a specified time after the issuance of the permit or approval, provided adequate security for the future payment of the fees is provided. Generally where the project involves a significant capital investment by the developer and will serve to either encourage further development of an area where development has been stagnant or where the project will provide a needed service, convenience, or accommodations to residents or visitors the City Council may find that the project qualifies to have the payment of Permit and Processing Fees or Development Impact Fees deferred. F. Developer has requested that the Project be considered eligible for deferral of Development Impact Fees. The City Council has found, based on the nature and location of the Project and the convenience it will provide to residents of the City, that the Project qualifies for a deferral under the terms and conditions of this Agreement. Developer acknowledges and agrees that absent this Agreement it would be required to pay all Development Impact Fees at the time the Developer submits Project-related applications to the City. G Developer and City acknowledge that the California Prevailing Wage law normally applies to projects where public funds are used for construction or for the payment of ITEM NUMBER: C - 1 DATE: 10/23/12 Attachment C fees that are mandatory conditions of construction. In this case, City is not paying fees but is instead deferring payment of them. Developer is absolutely bound to pay all required fees, but will be allowed to pay the Development Impact Fees over time, with interest. Developer and City acknowledge that they have each and separately investigated California Prevailing Wage Law and have each and separately determined that the City's deferral of the Development Impact Fees does not constitute a contribution of public funds to the Project, as defined by California Labor Code Section 1720 and described in non-binding decisions issued by the Department of Industrial Relations interpreting that Section. Notwithstanding the analysis and determination of the parties, Developer acknowledges that if the Department of Industrial Relations determines that the deferral of Development Impact Fees is found to constitute payment of public funds for the Project, then the construction and construction-related activities for the Project would be subject to the California Prevailing Wage Law and Developer would be required to pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Relations under Section 1720, et seq., of the California Labor Code for all covered work performed on the Project. DEFINED TERMS "Action" shall mean any suit (whether legal, equitable, or declaratory in nature), proceeding or hearing (where administrative or judicial), arbitration or mediation (whether voluntary, court-ordered, binding, or non-binding), or other alternative dispute resolution process, and the filing, recording, or service of any process, notice, claim, demand, lien, or other instrument. "City" shall mean the City of Atascadero, a municipal corporation formed and existing under the laws of the State of California and any successor-in-interest to the rights, obligations, and powers of the City. "Developer" shall mean Atascadero 101 Associates, a -. The term "Developer" shall also include all assignees, to the extent permitted under this Agreement, of the rights and obligations of Developer under this Agreement, and any successor- in-interest to Developer having a legal and/or equitable interest in the Property. "Development Impact Fees" shall mean those development impact fees imposed and levied by the City to recover the cost of planned public facilities and to mitigate impacts of development on the City as are listed below. The Development Impact Fees include: 1. Law Enforcement Facilities 2. Fire Protection Facilities 3. Fire Aerial Response Vehicle 4. Circulation System 5. Storm Drainage Facilities 6. General Government Facilities ITEM NUMBER: C - 1 DATE: 10/23/12 Attachment C 7. Open Space Acquisition 8. Library Expansion Facilities (Hotels exempt from this fee) 9. Public Meeting Facilities (Hotels exempt from this fee) 10. Parkland (Hotels exempt from this fee) "Effective Date" shall mean the date the Agreement has been formally approved by the City Council and executed by the appropriate authorities of the City and Developer. "Interest Rate" shall mean a fixed rate equal to the quarterly investment yield for the City's investment portfolio as of June 30, 2012, a rate of 0.98%. "Litigation Expenses" shall mean all costs and expenses, to the extent such are reasonable in amount, that are actually and necessarily incurred in good faith by the Prevailing Party directly related to the Action, including, but not related to, court costs, filing, recording, and service fees, copying costs, exhibit production costs, special media rental costs, attorneys' fees, consultant fees, fees for investigators, witness fees (both lay and expert), travel expenses, deposition and transcript costs, and any other cost or expense reasonably and necessarily incurred by the prevailing party in good faith and directly related to the Action. Where attorneys' fees are to be paid by Developer to the City's law firm on behalf of, or in defense of, City, the rate to be paid shall be the full litigation rate charged by the City's law firm to the City in accord with the City's contract with that law firm. "Other Government Fees" shall mean any and all fees levied on the Project by any government entity other than the City, including but not limited to the State of California and any of its agencies, the County of San Luis Obispo, any local school district, or any local special district. "Payment Period" shall mean a period of Five (5) years from and after the Effective Date of the Agreement during which Developer will have to pay the amount of the Development Impact Fees, plus accrued interest, to the City as provided in section 3 [Terms of Payment]. "Permit and Processing Fees" shall mean those fees imposed and levied by the City with respect to the connection to City utility services as well as inspection, processing and granting of permits by various City departments. "Project" shall mean the construction of a new building of approximately 83,000 square foot, four-story, 130-room suites hotel (with banquet facility) on the Property that would be operated by an internationally-known and publicly traded company and that would be suitable for occupancy and use under Chapter 9 [Planning and Zoning] of the City's Municipal Code. "Property" shall mean those certain parcels of real property commonly known as Assessor's Parcel Numbers 049-045-020, 049-045-017, and 049-045-018 located at 900 El Camino Real, City of Atascadero, State of California, as more particularly described in the legal description attached hereto and incorporated herein by reference as Attachment"A". ITEM NUMBER: C - 1 DATE: 10/23/12 Attachment C OPERATIVE PROVISIONS NOW, THEREFORE, in consideration of the mutual promises and covenants made by the parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the parties agree as follows: 1. Deferral And Payment. 1.1 City's Deferral. The City agrees that Developer may defer payment of the Development Impact Fees imposed on the Project by City for the Payment Period provided Developer remains in compliance with the terms, conditions, and covenants of this Agreement. The parties acknowledge that City normally requires the payment of all Permit and Processing Fees and Development Impact Fees at the time the project applicant submits an application to the City for these permits and approvals. In this case, by virtue of this Agreement, the City will issue permits and approvals for the Project, provided all other requirements for the issuance of such permits have been met, even though the Developer will not have paid the Development Impact Fees. 1.2 Developer's Payment. 1.2.1 Permit and Processing Fees. Developer covenants and agrees to timely pay at the time each Project application is submitted all Permit and Processing Fees imposed on that application. 1.2.2 Development Impact Fees. Developer covenants and agrees to timely pay during the Payment Period the Development Impact Fees, together with all interest accrued thereon, as provided in this Agreement. Developer acknowledges that Developer's Property will be encumbered by a lien created by the recording of a second Deed of Trust securing Developer's payment of the Development Impact Fees. 1.3 Other Government Fees. Developer understands and agrees that the City is required to collect Other Government Fees that may be imposed on the Project. Developer agrees to timely pay the Other Government Fees as required by the City. The Other Government Fees are not subject to deferral pursuant to this Agreement. 1.4 Prevailing Wage Law. California Prevailing Wage law applies to projects where public funds are used for construction or for the payment of fees that are mandatory conditions of construction. Pursuant to Section 1.1 [City's Deferral], City will defer payment of Development Impact Fees, but will not itself pay any fees otherwise required to be paid by Developer. Developer further agrees to pay interest on the deferred Development Impact Fees at the a rate equivalent to the rate that the City would receive if the City had the Development Impact Fees in hand and had invested those moneys in the City's investment portfolio. 1.4.1 Deferral is not Payment of Public Funds. Developer is absolutely bound to pay all required fees, but pursuant to Section 3 [Terms of Payment] will be allowed to pay some of them over time, with interest pursuant to Section 3.2 [Payment Over Time]. The parties, having each researched California Prevailing Wage Law, agree that this deferral is not a payment of public funds pursuant to California Labor Code Section 1720(b). The deferral is instead a ITEM NUMBER: C - 1 DATE: 10/23/12 Attachment C market transaction with the Developer paying market rate interest for the opportunity to pay the Development Impact Fees over time. 1.4.2 Developer's Agreement to Comply With Prevailing Wage Law. Notwithstanding the foregoing, Developer acknowledges that if the Department of Industrial Relations determines that the deferral of Development Impact Fees constitutes the payment of public funds for the Project, then the construction and construction-related activities for the Project would be subject to the Prevailing Wage Law and Developer would be required to pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Relations under Section 1720, et seq., of the California Labor Code for all covered work performed on the Project. Without limiting Developer's obligation to comply with all of the Prevailing Wage Law under the foregoing scenario, Developer shall at minimum (a) require its contractors and subcontractors to submit certified copies of payroll records to Developer; (b) maintain complete copies of such certified payroll records; and (c) make such records available to the City and its designees for inspection and copying during regular business hours at the Property or at another location within the City. Under such scenario, Developer shall also obligate Developer's contractors and agents to comply with all such Prevailing Wage Laws. 1.4.3 Developer's Agreement to Indemnify and Defend City. If the Department of Industrial Relations determines that the deferral of Development Impact Fees constitutes the payment of public funds for the Project, Developer further agrees that it shall indemnify and defend the City from and against any and all present and future liabilities, obligations, orders, claims, damages, fines, penalties and expenses (including attorneys' fees and costs) arising out of or in any way connected with Developer's obligation to comply with all Prevailing Wage Laws with respect to the work of Public Improvements, including all claims that may be made by contractors, subcontractors or other third party claimants pursuant to Labor Code Sections 1726 and/or 1781. 2. Permit and Processing Fees and Development Impact Fees 2.1 Estimated Permit and Processing Fees and Development Impact Fees. The total estimated amount of Permit and Processing Fees and Development Impact Fees to be paid for the Project is currently estimated to be $720,220. Of this amount, approximately $110,000 represents Permit and Processing Fees that the Developer agrees to pay at the time that the Developer submits Project applications on which the Permit and Processing Fees are imposed. Of the total amount, approximately $610,220 represents Development Impact Fees which the Developer agrees to pay as provided in Section 3 [Terms of Payment]. the Permit and Processing Fees as provided in this Agreement. 2.2 Changes in Fee Amounts. The parties understand and agree that the amounts set forth in Section 2.1 [Total Permit and Processing Fees and Development Impact Fees] are approximations and that the actual amounts may change as the Project is fully designed and brought to the City for review and approval. The parties agree that changes to the amounts of the Permit and Processing Fees and/or Development Impact Fees shall not affect the terms of this agreement, and in particular the payment amounts set forth in Sections 3.2.1 through 3.2.4, though the final payment amount set forth in Section 3.2.5 may be adjusted to reflect any change ITEM NUMBER: C - 1 DATE: 10/23/12 Attachment C in Development Impact Fee amounts. Any change in the estimated amount of Permit and Processing Fees or Development Impact Fees shall be communicated by City to Developer at the time Project applications are submitted. 3. Terms of Payment of Development Impact Fees 3.1 Absolute Payment Obligation. Developer has the absolute obligation to pay the entire outstanding balance of the Development Impact Fees. Notwithstanding the provisions of this Agreement granting Developer permission to pay the Development Impact Fees over time, such payment over time shall not be deemed to waive all or any portion of Developer's obligation to pay the entire balance of the Development Impact Fees. Failure to fully pay the Development Impact Fees as required shall be deemed a Default of this Agreement. 3.2 Payment Over Time. Developer shall pay the entire outstanding balance of the Development Impact Fees, plus accrued interest, by no later than the last business day of the Fifth (5th) year from and after the Effective Date of this Agreement. Developer shall make the following payments: 3.2.1 First Payment. On or before the one-year anniversary of the Effective Date of this Agreement, in the amount of$65,000. 3.2.2 Second Payment. On or before the two-year anniversary of the Effective Date of this Agreement, in the amount of$65,000. 3.2.3 Third Payment. On or before the three-year anniversary of the Effective Date of this Agreement, in the amount of$65,000. 3.2.4 Fourth Payment. On or before the four-year anniversary of the Effective Date of this Agreement, in the amount of$65,000. 3.2.5 Final Payment. On or before the five-year anniversary of the Effective Date of this Agreement, in an amount equal to the remaining outstanding principal plus all interest accrued over the term of the Payment Period, an amount currently estimated to be $309,279. 3.3 Pre-Payment Option. At any time during the Payment Period, Developer may pay the entire outstanding principal balance of the Development Impact Fees. Pre-payment shall include all principal amounts owed and all interest accrued as of that date. There shall be no penalty for pre-payment. 3.4 Interest Accrual and Payment. From and after the Effective Date until the outstanding principal balance on the Note has been repaid in full, the outstanding balance under this Agreement and the Promissory Note shall bear interest at the Interest Rate. In no event shall the amount of interest paid or agreed to be paid to City exceed the maximum amount permissible under applicable laws. 4. 3.5 Security. As further evidence of Developer's obligation to pay the Development Impact Fees, Developer shall execute and provide to the City a Promissory Note that is the same ITEM NUMBER: C - 1 DATE: 10/23/12 Attachment C in all material respects to that attached hereto and incorporated herein by reference as Attachment "B". Developer's payment obligation under the Promissory Note and this Agreement shall be secured by a Deed of Trust recorded against the Property subordinate only to a deed of trust securing the Developer's obligations to the Project's construction lender. The Deed of Trust shall be the same in all material responses as that attached hereto and incorporated herein by reference as Attachment"C". Upon request from Developer's construction lender, City will execute a subordination agreement to subordinate the Deed of Trust to the construction lender's deed of trust against the Property. 5. General Indemnity. 5.1 General Indemnity. Except as to the sole negligence, active negligence or willful misconduct of the City, Developer expressly agrees to, and shall, indemnify, defend, release, and hold the City, and its respective officials, officers, employees, agents, and contractors harmless from and against any Action, liability, loss, damage, entry,judgment, order, and lien, which arises out of, or are in any way related to, any act or omission of Developer, or its officers, directors, employees, agents, or contractors, connected with the performance under this Agreement, the construction, use, or operation of the Project, notwithstanding that the City may have benefited therefrom, or any challenge to this Agreement. This Section shall apply to any acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of Developer's officers, directors, employees, agents and contractors. The City shall not be responsible for any acts, errors or omissions of any person or entity except the City and its officers, agents, servants, employees or contractors. The Parties expressly agree that the obligations of Developer under this Section shall survive the expiration or early termination of the Agreement. 6. Default And Remedies. 6.1 Default. Either party's failure or unreasonable delay to perform any term or provision of this Agreement constitutes a Default of this Agreement. In the event of a Default, the injured party shall give written "Notice of Default" to the defaulting party, specifying the Default. Delay in giving such notice shall not constitute a waiver of the Default. If the defaulting party fails to cure the Default within thirty (30) days after receipt of a notice specifying the Default, or, if the Default is of a nature that cannot be cured within thirty (30) days, the defaulting party fails to commence to cure the Default within said thirty (30) days and thereafter diligently prosecute such cure to completion, then the defaulting party shall be liable to the injured party for any and all damages caused by such Default, unless otherwise provided for by this Agreement. 6.2 No Waiver. Failure to insist on any one occasion upon strict compliance with any of the terms, covenants or conditions hereof shall not be deemed a waiver of such term, covenant or condition, nor shall any waiver or relinquishment of any rights or powers hereunder at any one time or more times be deemed a waiver or relinquishment of such other right or power at any other time or times. 6.3 Legal Actions. In addition to any other rights and remedies any party may institute a legal action to require the cure of any default and to recover damages for any default, ITEM NUMBER: C - 1 DATE: 10/23/12 Attachment C or to obtain any other remedy consistent with the purpose of this Agreement. The following provisions shall apply to any such legal action: 6.3.1 Jurisdiction and Venue. Legal actions must be instituted and maintained in the Superior Court of the County of San Luis Obispo, State of California, Central Branch, Civil Division, or if appropriate, in the United States District Court for the Central District of California. Participant specifically waives any rights provided to it pursuant to California Code of Civil Procedure §394 and any federal statue or rule of similar effect. 6.3.2 Applicable Law. The laws of the State of California shall govern the interpretation and enforcement of this Agreement. 6.3.3 Attorney's Fees. In the event either party commences an Action against the other party which arises out of a Default of, breach of, failure to perform, or that is otherwise related to, this Agreement, then the Prevailing Party (as defined here) in the Action shall be entitled to recover its Litigation Expenses from the other party in addition to whatever relief to which the prevailing party may be entitled. For the purpose of this section, "Prevailing Party" shall have the meaning ascribed in §1032(a) (4) of the California Code of Civil Procedure. 6.4 Rights and Remedies are Cumulative. The rights and remedies of the Parties are cumulative, and the exercise by a party of one or more of its rights or remedies shall not preclude the exercise by it, at the same or different time, of any other rights or remedies for the same Default or any other Default by another Party. 7. General Provisions. 7.1 No Third Party Beneficiaries. This Agreement is for the sole and exclusive benefit of the City and Developer. No other parties or entities are intended to be, or shall be considered, a beneficiary of the performance of any of the parties' obligations under this Agreement. 7.2 Recitals and Definitions. The Recitals and Definitions set forth at the beginning of this Agreement are a substantive and integral part of this Agreement and are incorporated by reference in the Operative Provisions of this Agreement. 7.3 Titles and Captions. Titles and captions are for convenience of reference only and do not define, describe or limit the scope or the intent of this Agreement or any of its terms. Reference to section numbers are to sections in this Agreement unless expressly stated otherwise. 7.4 Interpretation. The City and Developer acknowledge that this Agreement is the product of mutual arms-length negotiation and drafting and each represents and warrants to the other that it has been represented by legal counsel in the negotiation and drafting of this Agreement. Accordingly, the rule of construction which provides the ambiguities in a document shall be construed against the drafter of that document shall have no application to the interpretation and enforcement of this Agreement. In any action or proceeding to interpret or enforce this Agreement, the finder of fact may refer to such extrinsic evidence not in direct conflict with any specific provision of this Agreement to determine and give effect to the intention of the parties hereto. ITEM NUMBER: C - 1 DATE: 10/23/12 Attachment C 7.5 Severability. Each provision, term, condition, covenant, and/or restriction, in whole and in part, in this Agreement shall be considered severable. In the event any provision, term, condition, covenant, and/or restriction, in whole and/or in part, in this Agreement is declared invalid, unconstitutional, or void for any reason, such provision or part thereof shall be severed from this Agreement and shall not affect any other provision, term, condition, covenant, and/or restriction, of this Agreement and the remainder of the Agreement shall continue in full force and effect. 7.6 Amendments to Agreement. Any amendments to this Agreement must be in writing and signed by the appropriate authorities of the City and Developer. 7.7 Administration. Following approval of this Agreement by the City's Council, the City shall exercise its rights, perform its obligations, and otherwise administer this Agreement through the City Manager. The City Manager shall have the authority to issue interpretations and to make minor amendments to this Agreement on behalf of the City, provided such actions do not materially increase the obligations of the City, make a commitment of additional funds to by paid by, or costs to be incurred by, the City, or result in a discretionary extension of time in excess of thirty (30) days. All other changes, modifications, and amendments shall require the prior approval of the City Council. 7.8 Notices, Demands and Communications Between the Parties. Formal notices, demands and communications between the parties shall be given in writing and personally served or dispatched by registered or certified mail, postage prepaid, return receipt requested, to the principal offices of the parties, as designated in this Section, or telefaxed to the facsimile number listed below followed by dispatch as above described. Such written notices, demands, and communications may be sent in the same manner to such other addresses as either party may from time to time designate by mail as provided in this Section. Any such notice shall be deemed to have been received (i) upon the date personal service is effected, if given by personal service, (ii) upon the expiration of one (1) business day, if telefaxed, or (iii) upon the expiration of three (3) business days after mailing, if given by certified mail, return receipt requested, postage prepaid. If notice is to be made to the City: City Manager City of Atascadero 6907 EI Camino Real Atascadero, California 93422 Facsimile transmission may be made to: If notice is to be made to Developer: Atascadero 101 Associates Attn: , California 9 Facsimile transmission may be made to: ITEM NUMBER: C - 1 DATE: 10/23/12 Attachment C 7.9 Computation of Time. The time in which any act is to be done under this Agreement is computed by excluding the first day and including the last day, unless the last day is a holiday or Saturday or Sunday, and then that day is also excluded. The term "holiday" shall mean all holidays as specified in Government Code § 6700 and § 6701. If any act is to be done by a particular time during a day, that time shall be Pacific Standard Zone time. 7.10 Authority. The individuals executing this Agreement on behalf of Developer and the instruments referenced on behalf of Developer represent and warrant that they have the legal power, right and actual authority to bind Participant to the terms and conditions hereof and thereof. 7.11 Counterpart Originals. This Agreement may be executed in duplicate originals, each of which is deemed to be an original. 7.12 Effective date of Agreement. This Agreement shall not become effective until the date it has been formally approved by the City Council and executed by the appropriate authorities of the City and Developer. 7.13 Waiver of Actions. Developer, for itself and its contractors, hereby expressly agrees that City has satisfied its obligations under the Prevailing Wage Laws to identify projects as being subject to the Prevailing Wage Laws and any other obligations imposed upon the City under Labor Code Sections 1726 and/or 1781 that are owed to or may be actionable by Developer and its contractors. Furthermore, Developer, for itself and its contractors hereby expressly waives any right of action against the City created under Labor Code Sections 1726 and/or 1781, whether known, or unknown, foreseen or unforeseen relating to the Project and/or this Agreement. IN WITNESS WHEREOFF, the parties hereto have executed this Agreement on the day of the , 2012. CITY: CITY OF ATASCADERO By: Wade G. McKinney City Manager ATTEST: By: Marcia McClure Torgerson City Clerk ITEM NUMBER: C - 1 DATE: 10/23/12 Attachment C APPROVED AS TO FORM: By: Brian A. Pierik City Attorney DEVELOPER: Atascadero 101 Associates a [insert type of business] Name Title Name Title ITEM NUMBER: C - 1 DATE: 10/23/12 Attachment D When recorded mail to: City Clerk City of Atascadero 6907 EI Camino Real Atascadero, California 93422 Title No. Escrow No. DEED OF TRUST WITH ASSIGNMENT OF RENTS This DEED OF TRUST, made this day of 2012, between ATASCADERO 101 ASSOCIATES, a , herein called TRUSTOR whose address is 2925 Bristol Street, Costa Mesa, California 92626, FIRST AMERICAN TITLE COMPANY, a California corporation, herein called TRUSTEE, and CITY OF ATASCADERO, a California municipal corporation, herein called BENEFICIARY. Trustor irrevocably grants, transfers and assigns to Trustee in Trust, with Power of Sale that property in the County of San Luis Obispo, State of California, described as follows: SEE LEGAL DESCRIPTION ATTACHED HERETO A.P.N. Together with the rents, issues and profits thereof, subject, however, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits. FOR THE PURPOSE OF SECURING (1) payment of the sum of$610,220.00 Dollars with interest thereon according to the terms of a promissory note or notes of even date herewith made by TRUSTOR, payable to order of BENEFICIARY, and extensions or renewals thereof; (2) the performance of each agreement of TRUSTOR incorporated by reference or contained herein or reciting it is so secured; (3) payment of additional sums and interest thereon which may hereafter be loaned to Trustor, or its successors or assigns, when evidenced by a promissory note or notes reciting that they are secured by this Deed of Trust. A. To protect the security of this Deed of Trust, and with respect to the property above described, Trustor agrees: (1) To keep said property in good condition and repair; not to remove or demolish any building thereon; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor; to comply with all laws affecting said property or requiring any alterations or improvements to be made thereon; not to commit or permit waste thereof; not to commit, suffer or permit any act upon said property in violation of the law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character or use of said property may be reasonably necessary, the specific enumerations herein not excluding the general. (2) To provide, maintain and deliver to Beneficiary fire insurance satisfactory to and with loss payable to Beneficiary. The amount collected under any fire or other insurance policy may be applied by Beneficiary upon any indebtedness secured hereby and in such order as beneficiary may determine, or at option of Beneficiary the entire amount so collected or any part thereof may be released to Trustor. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. ITEM NUMBER: C - 1 DATE: 10/23/12 Attachment D (3) To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed of Trust. (4) To pay: at least ten days before delinquency all taxes and assessments affecting said property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto; all costs,fees and expenses of this Trust. Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary or Trustee, but without obligation so to do and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may: make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance, charge, or lien which in the judgment of either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay his or her reasonable fees. (5) To pay immediately and without demand all sums so expended by Beneficiary or Trustee, with interest from date of expenditure at the amount allowed by law in effect at the date hereof, and to pay for any statement provided for by law in effect at the date hereof regarding the obligation secured hereby, any amount demanded by the Beneficiary not to exceed the maximum allowed by law at the time when said statement is demanded. B. It is mutually agreed: (1) That any award of damages in connection with any condemnation for public use of or injury to said property or any part thereof is hereby assigned and shall be paid to Beneficiary who may apply or release such moneys received by him or her in the same manner and with the same effect as above provided for disposition or proceeds of fire or other insurance. (2) That by accepting payment of any sum secured hereby after its due date, Beneficiary does not waive his or her right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay. (3) That at any time or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of this Deed and said note for endorsement, and without affecting the personal liability or any person for payment of the indebtedness secured hereby, Trustee may: reconvey any part of said property; consent to making of any map or plat thereof; join in granting any easement thereon; or join in any extension agreement or any agreement subordinating the lien or charge hereof. (4) That upon written request of beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed and said note to Trustee for cancellation and retention or other disposition as Trustee in its sole discretion may choose and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. The Grantee in such reconveyance may be described as"the person or persons legally entitled thereto." (5) That as additional security, Trustor hereby gives to and confers upon Beneficiary the right, power and authority, during the continuance of these Trusts, to collect the rents, issues and profits of said property, reserving unto Trustor the right, prior to any default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, to collect and retain such rents, issues and profits as they become due and payable. Upon any such default, Beneficiary may at any time without notice, either in person, by agent, or by a receiver to be appointed by a court, and without regard to the adequacy of any security for the indebtedness hereby secured, enter upon and take possession of said property or any part thereof, in his or her own name sue for or otherwise collect such rents, issues, and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorney's fees, upon any indebtedness secured hereby, and in such order as Beneficiary may determine. The entering upon and taking possession of said property, the collection of such rents, issues and profits and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. ITEM NUMBER: C - 1 DATE: 10/23/12 Attachment D (6) That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed, said note and all documents evidencing expenditures secured hereby. After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law, Trustee without demand on Trustor, shall sell said property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. After deducting all costs, fees and expenses of Trustee and of this Trust, including cost of evidence of title in connection with sale, Trustee shall apply the proceeds of sale to payment of: all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the person or persons legally entitled thereto. (7) Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor of successors to any Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where said property is situated, shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties. Said instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed is recorded and the name and address of the new Trustee. (8) That this Deed applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors, and assigns. The term Beneficiary shall mean the owner and holder, including pledgees, of the note secured hereby, whether or not named as Beneficiary herein. In this Deed, whenever the context so requires, the masculine gender includes the feminine and/or the neuter, and the singular number includes the plural. (9) The Trustee accepts this Trust when this Deed, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obliged to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary or Trustee shall be a party unless brought by Trustee. Beneficiary may charge for a statement regarding the obligation secured hereby, provided the charge thereof does not exceed the maximum allowed by laws. The undersigned Trustor, requests that a copy of any notice of default and any notice of sale hereunder be mailed to him or her at his or her address hereinbefore set forth. ITEM NUMBER: C - 1 DATE: 10/23/12 Attachment D Trustor signature Trustor signature Trustor signature State of County of On before me, (here insert name and title of the officer), personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) ITEM NUMBER: C - 1 DATE: 10/23/12 Attachment D DO NOT RECORD REQUEST FOR FULL RECONVEYANCE To First American Title Company The undersigned is the legal owner and holder of the note or notes, and of all other indebtedness secured by the foregoing Deed of Trust. Said note or notes, together with all other indebtedness secured by said Deed of Trust have been fully paid and satisfied; and you are hereby requested and directed, on payment to you of any sums owning to you under the terms of said Deed of Trust, to cancel said note or notes above mentioned, and all other evidence of indebtedness secured by said Deed of Trust delivered to you herewith, together with the said Deed of Trust, and to reconvey, without warranty, to the parties designated by the terms of said Deed of Trust, all the estate now held by you under the same. Dated Please mail Deed of Trust, Note(s) and Reconveyance to: Do not lose or destroy this Deed of Trust OR THE NOTE which it secures. Both must be delivered to the Trustee for cancellation before reconveyance will be made. ITEM NUMBER: C - 2 DATE: 10/23/12 1918' , .' 1979 stArASCAD�� Atascadero City Council Staff Report — City Manager's Office Public Relations and Marketing Program RECOMMENDATION: Council authorize the City Manager to negotiate and execute a contract with the successful candidate for the Public Relations & Marketing Program, with the effective date of November 1, 2012. DISCUSSION: The City Council approved the Request for Proposals (RFP) for Promotions Services on August 14, 2012. Staff distributed the RFP on August 15th with the deadline for submittal of September 13, 2012. Fourteen proposals were received. Staff distributed the proposals to several experts in the field to review and rank in order of preference. This process took longer than originally expected. Staff then took the results of those reviews to the interview committee for discussion and final ranking. Four firms are to be interviewed the week of October 15th. Staff will be giving the City Council an update on the results of the interviews at their meeting of October 23rd. Staff anticipates that they will be prepared to bring to the City Council on October 23rd the successful candidate, and make a recommendation for the Council to approve the contract for Promotions Services. FISCAL IMPACT: The City Council approved at their August 14, 2012 meeting, $176,000 for the Promotions Program; appropriating $131,120 from General Fund Reserves and reallocating $44,880 from the Transfer to RDA for Tourism Fund account. ITEM NUMBER: C - 2 DATE: 10/23/12 ALTERNATIVES: The City Council could decide to not create this Program. ATTACHMENTS: None.