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HomeMy WebLinkAboutCC_2014-09-23_Agenda Packet CITY OF ATASCADERO CITY COUNCIL AGENDA Tuesday, September 23, 2014 City Hall Council Chambers, 4th floor 6500 Palma Avenue, Atascadero, California (Enter on Lewis Ave.) CITY COUNCIL CLOSED SESSION: 5:30 P.M. 1. CLOSED SESSION -- PUBLIC COMMENT 2. COUNCIL LEAVES CHAMBERS TO BEGIN CLOSED SESSION 3. CLOSED SESSION -- CALL TO ORDER a. Conference with Labor Negotiators Government Code Section 54957.6 Agency designated representatives: Rachelle Rickard, City Manager Employee Organization: Atascadero Firefighters Bargaining Unit City Council Closed Session: 5:30 P.M. City Council Regular Session: 6:00 P.M. Successor Agency to the Community Immediately following Redevelopment Agency of Atascadero: conclusion of the City Council Regular Session 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 Fonzi ROLL CALL: Mayor O’Malley Mayor Pro Tem Sturtevant Council Member Fonzi Council Member Kelley Council Member Moreno APPROVAL OF AGENDA: Roll Call PRESENTATIONS: 1. Regional Transit Authority (RTA) Runabout Rate Presentation by Executive Director, Geoff Straw 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. PLN 2014-1499 / ZCH 2014-0173 - Planned Development Overlay #7 (PD- 7) - 10380 El Camino Real - (Michaud / Henderson)  Fiscal Impact: A standard condition of approval has been included requiring emergency services and facility maintenance costs to be 100% funded by the project.  Recommendation: Council adopt on second reading, by title only, draft Ordinance A approving Zone Change 2014-0173 for a Planned Development #7 overlay at 10380 El Camino Real, based on findings. [Community Development] 2. AVOID Grant Program  Fiscal Impact: The City of Atascadero will receive up to $100,000 in OTS reimbursement grant funds and will expend up to $100,000 on DUI enforcement activities. There is no City match required on this grant.  Recommendation: Council adopt the Draft Resolution accepting the Office of Traffic Safety AVOID Grant Agreement with funding not to exceed $100,000.00. [Police] 3. Alcoholic Beverage Control (ABC) License - On-Site Sale of Beer and Wine - PLN 2014-1526 / ABC 2014-019 - 5814-5816 Traffic Way  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 sale beer and wine for on -site consumption at Grape Encounters located on 5814 and 5816 Traffic Way. [Community Development] 4. Conflict of Interest Code - Biennial Review  Fiscal Impact: None.  Recommendation: Council adopt the Draft Resolution, updating and amending the Conflict of Interest Code for the City of Atascadero. [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@atascadero.org.) B. PUBLIC HEARINGS: None C. MANAGEMENT REPORTS: 1. Atascadero Lake Phase II Sediment Removal Award - City Bid No. 2014- 008  Fiscal Impact: Authorization of the sediment removal would result in a one-time expenditure of up to $470,000.00 of General Fund Reserves.  Recommendations: Council: 1. Authorize the Director of Administrative Services to appropriate up to $470,000 from General Fund Reserves for the removal of sediment from Atascadero Lake and Lake Fill Line repairs; and, 2. Authorize the City Manager to execute a contract with ABI General Engineering Inc., in the amount of $287,000.00, for the removal of sediment from Atascadero Lake; and, 3. Authorize the City Manager to execute change orders, as needed, for up to 40% of the original contract amount ($114,800) to remove extra sediment if time, budget and weather allow for it; and, 4. Authorize the City Manager to sign an agreement with the Atascadero Mutual Water Company agreeing to terms for sediment spreading on Water Company Land; and, 5. Authorize the Public Works Director to file a notice of completion upon satisfactory project completion. [Public Works] 2. Del Rio Road / US 101 Interchange Project Update  Fiscal Impact: None.  Recommendation: Council receive and file update on Del Rio Road Interchange Project. [Community Development] 3. Infrastructure & Vehicle Improvement Plan  Fiscal Impact: The total outlay of expenditures is $1,323,803 with $179,766 expended from the Vehicle Replacement Account Fund, $123,000 expended from the fire impact fees fund for the expanded capacity of the Type I engine, and $1,021,037 from Bertha Sch ultz Trust Funds.  Recommendation: Council support staff proposed infrastructure & vehicle improvement & replacement plan. [Fire] 4. Tourism Business Improvement District (TBID) Update – Consideration of Appointment of Two Board Members to Fill Vacancies  Fiscal Impact: None.  Recommendations: Council: 1. Accept the resignation of Bhikhu Patel, and terminate Sohem Bhakta’s membership due to excessive unexcused absences; and, 2. Give staff direction on filling the two vacancies, whose terms will expire on June 30, 2015. [City Manager] COUNCIL ANNOUNCEMENTS AND REPORTS: (On their own initiative, Council Members may make a brief announcement or a brief report on their own acti vities. 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. SLO Council of Governments (SLOCOG) 5. SLO Regional Transit Authority (RTA) Mayor Pro Tem Sturtevant 1. City / Schools Committee 2. City of Atascadero Finance Committee 3. League of California Cities – Council Liaison Council Member Fonzi 1. Air Pollution Control District 2. Oversight Board for Successor Agency to the Community Redevelopment Agency of Atascadero 3. SLO Local Agency Formation Commission (LAFCo) Council Member Kelley 1. Atascadero State Hospital Advisory Committee 2. City of Atascadero Design Review Committee 3. Economic Vitality Corporation, Board of Directors (EVC) 4. Homeless Services Oversight Council Council Member Moreno 1. California Joint Powers Insurance Authority (CJPIA) Board 2. City of Atascadero Finance Committee (Chair) 3. City of Atascadero Design Review Committee E. INDIVIDUAL DETERMINATION AND / OR ACTION: 1. City Council 2. City Clerk 3. City Treasurer 4. City Attorney 5. City Manager F. ADJOURNMENT TO THE SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO 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 sub mitted at this public hearing will be distributed to the Council and available for review in the City Clerk's office. I, Lori Mlynczak, Deputy City Clerk of the City of Atascadero, declare under the penalty of perjury that the foregoing agenda for the September 23, 2014 Regular Session of the Atascadero City Council was posted on September 17, 2014, at the Atascadero City Hall, 6500 Palma Avenue, Atascadero, CA 93422 and was available for public review in the Customer Service Center at that location. Signed this 17rd day of September, 2014, at Atascadero, California. Lori Mlynczak, 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. Council meetings will be held at the City Hall Council Chambers, 6500 Palma Avenue, 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 meeting s 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, 6500 Palma Avenue, Atascadero, and on our website, www.atascadero.org. Contracts, Resolutions and Ordinances will be allocated a number once they are approved by the City Council. The minutes of this meeti ng 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 befo re 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 s ubject, 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 com ments will be heard by the Council. ITEM NUMBER: A-1 DATE: 09/23/14 Atascadero City Council Staff Report - Community Development Department PLN 2014-1499 / ZCH 2014-0173 Planned Development Overlay #7 (PD-7) 10380 El Camino Real (Michaud / Henderson) RECOMMENDATION: Council adopt on second reading, by title only, draft Ordinance A approving Zone Change 2014-0173 for a Planned Development #7 overlay at 10380 El Camino Real, based on findings. DISCUSSION: The proposed project consists of a Zone Map Amendment to establish a Planned Development Overlay Zone #7 at 10380 El Camino Real (APN 056-383-021) with a corresponding Master Plan of Development (CUP) and vesting Tentative Parcel Map that would allow a 4-unit residential planned development on the existing 0.37 acre lot. On September 9, 2014, the City Council conducted a public hearing to consider an application for the overlay zone change on the subject parcel . At that meeting the Council voted 5-0 to introduce the zone change for first reading. FISCAL IMPACT: Based on findings from the Taussig Study, re venue from new residential development, including property tax revenues, vehicle licensing fees, sales taxes, and other revenues , is insufficient to cover the maintenance and emergency services costs of new development. Based on the revenue projections from the Taussig Study, the City has developed standard conditions of approval for new development projects that require the cost of maintenance and emergency services to be funded by the project. A standard condition of approval has been included requiring emergency services and facility maintenance costs to be 100% funded by the project by annexing into the City’s Community Facilities District. Annexation shall occur prior to final map acceptance. ITEM NUMBER: A-1 DATE: 09/23/14 ATTACHMENTS: Attachment 1: Draft Ordinance A ITEM NUMBER: A-1 DATE: 09/23/14 ATTACHMENT 1: Draft Ordinance A PD7 - Zone Change 2014-0173; Approval of Proposed Zoning Map Change DRAFT ORDINANCE A ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, APPROVING ZONE CHANGE 2014-0173 AMENDING THE OFFICIAL ZONING MAP DESIGNATION OF APN 056-383-021 FROM RMF-10 (RESIDENTIAL MULTI-FAMILY-10) TO RMF-10 / PD-7 (RESIDENTIAL MULTI_FAMILY-10 WITH PLANNED DEVELOPMENT OVERLAY #7) (10380 El Camino Real / Michaud) The City Council hereby finds and declares as follows: WHEREAS, an application has been received from Leo Michaud (8090 Cristobal Ave. Atascadero, CA 93422), Applicant and Property Owner, to consider a project consisting of a Zone Change from RMF-10 (Residential Multi-Family-10) to RMF-10/PD-7 (Residential Multi- Family-10 with Planned Development Overlay #7) with the adoption of a Master Plan of Development and a four lot Tentative Parcel Map on APN 056-383-021; and, WHEREAS, the site’s General Plan Designation is MDR (Medium-Density Residential); and, WHEREAS, the site’s current Zoning District is RMF-10 (Residential Multi-Family-10); and, WHEREAS, the Atascadero Municipal Code allows for a Planned Development to be established in the RMF-10 zoning district allowing a maximum of 10 dwelling units per acre; and, WHEREAS, an Initial Study and Draft Mitigated Negative Declaration 2014-0006 were prepared for the project and made available for public review in accordance with the requirements of the California Environmental Quality Act (CEQA); and, WHEREAS, the Planning Commission has determined that it is in the best interest of the City to enact this amendment to the Official Zoning Map to protect the health, safety and welfare of its citizens by applying orderly development of the City; and, WHEREAS, the laws and regulations relating to the preparation and public notice of environmental documents, as set forth in the State and local guidelines for implementation of the California Environmental Quality Act (CEQA) have been adhered to; and, ITEM NUMBER: A-1 DATE: 09/23/14 WHEREAS, a timely and properly noticed Public Hearing upon the subject Zone Change application was held by the Planning Commission of the City of Atascadero at which hearing evidence, oral and documentary, was admitted on behalf of said Zoning amendments; and, WHEREAS, the Planning Commission of the City of Atascadero, at a duly noticed Public Hearing held on August 5, 2014 studied and considered Zone Change 2014-0173, after first studying and considering the Proposed Mitigated Negative Declaration prepared for the project, and, WHEREAS, the City Council of the City of Atascadero, at a duly noticed Public Hearing held on September 9, 2014, studied and considered Zone Change 2014-0173, after first studying and considering the Proposed Mitigated Negative Declaration prepared for the project; and, NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ATASCADERO HEREBY ORDAINS AS FOLLOWS: SECTION 1. Findings for Approval of a Zone Change to the Official Zoning Map of Atascadero Changing the existing site zoning to RMF-10/PD7. The City Council finds as follows: 1. Modification of development standards or processing requirements is warranted to promote orderly and harmonious development. 2. Modification of development standards or processing requirements will enhance the opportunity to best utilize special characteristics of an area and will have a beneficial effect on the area. 3. Benefits derived from the overlay zone cannot be reasonably achieved through existing development standards or processing requirements. 4. Proposed plans offer certain redeeming features to compensate for the requested modification. SECTION 2. Approval. The City Council of the City of Atascadero, in a regular session assembled on September 9, 2014, resolved to introduce for first reading by title only, an ordinance that would rezone the subject site consistent with the following: 1. Exhibit A: Zone Change Map ITEM NUMBER: A-1 DATE: 09/23/14 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 i ts 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, CA ______________________________ Tom O’Malley, Mayor Attest: ______________________________ Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: _______________________________ Brian Pierik, City Attorney ITEM NUMBER: A-1 DATE: 09/23/14 Exhibit A: Official Zoning Map Change 2014-0173 (Planned Development Overlay #7) Existing Designations: -General Plan: Medium Density Residential -Zoning District: Residential Multi-Family - 10 Proposed Designations: -General Plan: Medium Density Residential -Zoning District: Residential Multi-Family – 10 / Planned Development #7 overlay Project location: 10380 El Camino Real Planned Development #7 overlay ITEM NUMBER: A-2 DATE: 09/23/14 Atascadero City Council Staff Report – Police Department AVOID Grant Program RECOMMENDATION: Council adopt the Draft Resolution accepting the Office of Traffic Safety AVOID Grant Agreement with funding not to exceed $100,000.00. DISCUSSION: Background: The California Office of Traffic Safety (OTS) awards grant funds to local municipalities with the overall goal of reducing traffic collisions and intoxicated driving, thereby increasing traffic safety. The two primary types of traffic safety grants awarded by OTS are the AVOID and STEP grants. Our Police Department has previously participated in both the STEP (Selective Traffic Enforcement Program) grant program, which are agency specific and fund equipment and overtime, and AVOID grants, which encourage multiple cities to collaborate in proactive traffic and DUI enforcement. In years past, the AVOID grant program was a multi-agency program which provided funding for equipment, overtime and training for all Law Enforcement agencies within San Luis Obispo County. All 14 San Luis Obispo County Law Enforcement Agencies have participated in the “AVOID the 14” grant program for the past several years. In late 2013 as a result of changes in the administration of OTS, OTS changed the way the AVOID program is administered. The AVOID lead agency is only responsible for working DUI enforcement and events within their own City. No outside agency personnel can work these overtime events. Although all of the DUI enforcement activities will take place in Atascadero, the AVOID grant does require some reporting of county wide DUI statistics, hosting training and managing multiple press events/releases. To accommodate this added responsibility, the AVOID grant provides overtime for grant management. ITEM NUMBER: A-2 DATE: 09/23/14 Summary: The Office of Traffic Safety (OTS) has awarded the City of Atascadero $100,000.00 in grant funds for 2014/2015. Staff has identified opportunities in which the grant proceeds will be used including, personnel overtime for additional DUI enforcement, personnel training and the purchase of additional speed enforcement equipment. City Council must authorize approval the Grant Award Agreement before the funding can take place. Analysis: The OTS grant funds will be used as follows: 5 DUI Checkpoints $ 24,075.00 24 DUI Saturation Patrol $ 24,800.00 4 Warrant Service Operations $ 3,960.00 18 Traffic Enforcement Operations $ 9,860.00 6 Distracted Driving $ 2,950.00 2 Night Click-it-or-ticket $ 990.00 9 Bicycle & Pedestrian Operations $ 4,700.00 Grant Management $ 6,000.00 Benefits @ .06 $ 4,630.00 Travel/Training $ 4,400.00 Checkpoint Signs $ 500.00 Radar/Lidar Unit $ 10,635.00 Printing/Duplication $ 500.00 Training/Meeting $2,000.00 TOTAL $100,000.00 FISCAL IMPACT: The City of Atascadero will receive up to $100,000 in OTS reimbursement grant funds and will expend up to $100,000 on DUI enforcement activities . There is no City match required on this grant. ALTERNATIVES: Council may decline to accept the use of the OTS grant funds. This alternative is not recommended due to the significant benef it gained from the use of the funds. ATTACHMENTS: 1. Draft Resolution ITEM NUMBER: A-2 DATE: 09/23/14 ATTACHMENT: 1 DRAFT RESOLUTION RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, ACCEPTING THE STATE OF CALIFORNIA, OFFICE OF TRAFFIC SAFETY “AVOID” GRANT IN THE AMOUNT OF $100,000 WHEREAS, the Office of Traffic Safety for the State of California has offered the City of Atascadero a Grant commencing in October 2014 and ending September 2015; and, WHEREAS, the City will enter an agreement with the Office of Traffic Safety for the State of California for the purpose of implementing a program to reduce the number of persons killed and injured in alcohol related crashes; and, WHEREAS, the City shall implement best practices in purchasing equipment and conducting DUI/driver’s license checkpoints and DUI saturation patrols. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Atascadero: SECTION 1. That the City has reviewed, understood, and to the extent consistent with all the constitutional and local law requirements, agrees to the provisions contained in the Contract Grant Agreement; and, SECTION 2. That the Atascadero City Chief of Police is appointed as the grant Authorizing Official for Applicant Agency and the Atascadero City Administrative Services Director is appointed as the Fiscal or Accounting Official and are authorized to execute and submit the Grant Agreement and any necessary documents in furtherance of this Grant Program which may be necessary for the completion of the Program. ITEM NUMBER: A-2 DATE: 09/23/14 ATTACHMENT: 1 On motion by Council Member ______________________, and seconded by Council Member ___________________, the foregoing resolution is hereby adopted in its entirety by the following roll call vote: AYES: NOES: ABSTAIN: 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 ITEM NUMBER: A-3 DATE: 09/23/14 Atascadero City Council Staff Report – Community Development Department Alcoholic Beverage Control (ABC) License On-Site Sale of Beer and Wine PLN 2014-1526 / ABC 2014-019 5814-5816 Traffic Way (Alcoholic Beverage Control license request to allow the sale of beer and wine at Grape Encounters for on-site consumption) 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 sale beer and wine for on- site consumption at Grape Encounters located on 5814 and 5816 Traffic Way. DISCUSSION: The applicant has applied through the Department of Alcoholic Beverage Control (ABC) for a Type 42 license at their existing location at 5814 and 5816 Traffic Way. ABC defines a Type 42 license as: ON-SALE BEER & WINE – On-sale beer and wine for public premises. The site is zoned Downtown Commercial (DC) and has a General Plan Land Use designation of Downtown (D). Eating and drinking places, as well as bar/taverns are permitted uses within the zone. ITEM NUMBER: A-3 DATE: 09/23/14 Analysis: ABC requires a “letter of necessity or convenience” from the City in order to issue a new on-sale beer and wine license at this location. Sections 23958 and 23958.4 of the of the Business and Professions Code (alcoholic beverages section) requires the local governing body of the area to determine that public convenience or necessity would be served by the issuance of another license. In this case, ABC has identified that there is an overco ncentration of alcohol licenses within the area; and a letter from the City is required by ABC to issue a new Type 42 license. The proposed site is located in census tract number 125.02, which allows up to twelve (12) licenses to exist in the census tract. There are currently nineteen (19) licenses existing in the census tract. The applicant has identified potential benefits of the issuance of the ABC license for the site(s). The applicant emphasized economic vitality as a result of increased commerce and visibility for Atascadero in this area. It was highlighted that San Luis Obispo County’s pull as a “wine country” destination would be played upon as part of this business venture, and attract tourists and wine lovers that the city is lacking. The Atascadero Police Department has reviewed the proposed application and does not have concerns or opposition regarding the issuance of an additional Type 42 license at this location. FISCAL IMPACT: None. ATTACHMENTS: 1. Location Map 2. Draft Resolution A ITEM NUMBER: A-3 DATE: 09/23/14 Attachment 1: Location Map Beer and Wine Tasting Room 5816 Traffic Way APN 029-322-021 General Plan: Downtown (D) Zoning: Downtown Commercial (DC) Image © Google – used under Google Terms of Use ITEM NUMBER: A-3 DATE: 09/23/14 Attachment 2: Resolution A DRAFT RESOLUTION “A” RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, FINDING THAT A PUBLIC CONVENIENCE OR NECESSITY WILL BE SERVED BY ALLOWING THE ISSUANCE OF A TYPE 42 ABC LICENSE AT 5814 AND 5816 TRAFFIC WAY PLN 2014-1526 / ABC 2014-0019 ON APN 029-322-021 (THE RIGHT ANGLE, INC/GRAPE ENCOUNTERS) WHEREAS, an application has been received from The Right Angle, Inc. (5812 Traffic Way, Atascadero CA 93422) Applicant, and Robert Wilson (2816 Blanchard Road, Camarillo, CA 93012) Property Owner, to request that the Council make a finding of public convenience or necessity to allow the Department of Alcoholic Beverage Control to issue a Type 42 license for tasting room and on-site consumption on 5814 and 5816 on Traffic Way, (APN 029-322-021); and, WHEREAS, the site’s current General Plan Designation is Downtown (D); and, WHEREAS, the site’s current Zoning Designation is Downtown Commercial (DC) and, WHEREAS, establishments that sell beer and wine for on-site consumption are an allowed use within the zoning district; 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 an existing food and beverage retail store at 5814 and 5816 Traffic Way; and WHEREAS, the City Council of the City of Atascadero considered the proposed application at a public meeting on September 23, 2014; and, NOW THEREFORE, the City Council of the City of Atascadero, hereby resolves to approve PLN 2014-1526 and determines that a public convenience or necessity will be served by the issuance of a Type 42 on sale beer and wine license to The Right Angle located at 5812 Traffic Way. ITEM NUMBER: A-3 DATE: 09/23/14 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 ITEM NUMBER: A-4 DATE: 09/23/14 Atascadero City Council Staff Report - City Clerk Conflict of Interest Code - Biennial Review RECOMMENDATION: Council adopt the Draft Resolution, updating and amending the Conflict of Interest Code for the City of Atascadero. DISCUSSION: The Political Reform Act requires every local government agency to review its Conflict of Interest Code biennially (on the even years) to determine if it is accurate and, if needed, to make any necessary amendments. The Conflict of Interest Code is a document that designates the positions within an agency that make , or participate in making, governmental decisions that may foreseeably have a material effect on any financial interest. The Code further sets out, in paragraphs called disclosure categories, the specific types of investments, business positions, interest in real property and sources of income that must be reported by the designated positions. The City Council is the Code-reviewing body for the City of Atascadero. The Political Reform Act requires that this Council adopt any amendments no later than December 30, 20 14. This Conflict of Interest Code pertains only to the designated positions listed in Exhibit A. The following officials are exempt from this Code as they are otherwise required to file disclosure statements pursuant to State Law under Govt. Code 87200: Council Members, City Treasurer, Planning Commissioners, City Manager and City Attorney. The City Clerk and the City Attorney have reviewed the current Code. The proposed amendments to the Conflict of Interest Code incorporate the basic provisions required by Government Code Section 87302 and comply with FPPC regulations. The revised list contains a list of designated positions that make , or participate in making, governmental decisions. The recommended changes reflect the current staffing of the City of Atascadero. The recommended new language is indicated by underlining and the recommended deleted language is indicated by strikeout. No substantive changes have been suggested. ITEM NUMBER: A-4 DATE: 09/23/14 FISCAL IMPACT: None. ALTERNATIVES: The Code must be updated. The Council is free to add positions to the Code or to suggest any other changes, so long as the changes comply with the Political Reform Act. Changing the disclosure requirements is not recommended. It is important that the current positions are accurately described. ATTACHMENT: Draft Resolution ITEM NUMBER: A-4 DATE: 09/23/14 ATTACHMENT: 1 DRAFT RESOLUTION RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, ADOPTING AN AMENDED CONFLICT OF INTEREST CODE WHEREAS, the Political Reform Act requires every local government agency to review its Conflict of Interest Code biennially (in even-numbered years) to determine if it is accurate and up- to-date, or, alternatively, that the Code must be amended; and NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero as follows: SECTION 1. Resolution No. 2010-066, adopted on September 14, 2010, is hereby rescinded. SECTION 2. That the Conflict of Interest Code attached to this Resolution as Exhibit A be, and hereby is, adopted as the Conflict of Interest Code for the City of Atascadero. 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 ITEM NUMBER: A-4 DATE: 09/23/14 ATTACHMENT: 1 EXHIBIT: A CONFLICT OF INTEREST CODE OF THE CITY OF ATASCADERO The Political Reform Act, Government Code Section 81000, et. seg., requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation, 2 Cal. Code of Regs. Section 18730, which contains the terms of a standard conflict of inte rest code. It can be incorporated by reference and may be amended by the Fair Political Practices Commission after public notice and hearings to conform to amendments in the Political Reform Act. Therefore, the terms of 2 Cal. Code of Regs. Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference and, along with the attached Appendix in which members and employees are designated and disclosure categories are set forth, constitute t he conflict of interest code of the City of Atascadero. Designated employees shall file their statements with the City of Atascadero who will make the statements available for public inspection and reproduction (Gov. Code Section 81008). Statements for a ll designated employees will be retained by the City of Atascadero. ITEM NUMBER: A-4 DATE: 09/23/14 ATTACHMENT: 1 EXHIBIT: A DESIGNATED EMPLOYEES AND DISCLOSURE CATEGORIES The following positions entail the making or participation in the making of decisions which foreseeably may have a material effect on financial interests: Designated Position1 Disclosure Category: Administrative Services Director 1 Assistant City Manager 1 City Clerk 1 Community Development Director 1 Community Services Director 1 Consultants2 1 Deputy Administrative Services Director 1 Assistant to the Deputy City Manager 1 Deputy Community Development Director/Chief Building Official 1 Deputy Public Works Director 1 Exempt Officials3 1 Fire Chief 1 Fire Marshal 1 Information Technology Manager 1 Police Chief 1 Public Works Director / City Engineer 1 Associate Civil Engineer 1 Building Official 1 Zoo Director 1 Members of all permanent City Commissions, Boards 1 and Committees not otherwise required to file Conflict of Interest Statements Fire Captain 2 Police Commander 2 Police Sergeant 2 1 In the event that State law or regulations regarding the filing of Conflict of Interest Statements should be amended, this Exhibit shall be changed to include the designated position and category of each official as required by said amendment. 2. Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in the code subject to the following limitations. The City Manager may determine in writing that a particular consultant, although a "designated position", is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirement described in this Section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The City Manager's determination is a public record and shall be retained for public inspection by the City Clerk in the same manner and location as this Conflict of Interest Code. 3. Exempt Officials include the Mayor, Members of the City Council, City Treasurer, Members of the Planning Commission, City Manager, and City Attorney, who are all otherwise required to file disclosure statements pursuant to State Law. ITEM NUMBER: A-4 DATE: 09/23/14 ATTACHMENT: 1 EXHIBIT: A CATEGORIES OF REPORTABLE ECONOMIC INTERESTS Designated Persons in Category "1" Must Report: All investments, interests in real property, income, and any business entity in which the person is a director, officer, partner, trustee, employee, or holds any position of management. These financial interests are reportable only if located within and subject to the jurisdiction of the City, or if the business entity is doing business or planning to do business in an area subject to the jurisdiction of the City, or has done business within an area subject to the jurisdiction of the City at any time during the two years prior to the filing of the statement. Designated Persons in Category "2" Must Report: (1) All investments in real property located within or subject to the jurisdiction of the City. (2) Investments in any business entity which within the last two years has contracted or in the future foreseeably may contract with the City. (3) Income from any source which within the last two years has contracted or in the future foreseeably may contract with the City. (4) His or her status as a director, officer, partner, trustee, employee, or holder of a position of management in any business entity which within the last two years has contracted or in the future foreseeably may contract with the City. 82030. INCOME. (A) "Income" means (except as provided in subdivision B): A payment received, including but not limited to any salary, wage, advance, dividend, interest, rent, proceeds from any sale, gift, including any gift of food or beverage, loan, forgiveness or payment of indebtedness received by the flier, reimbursement for expenses, per diem, or contribution to an insurance or pension program paid by any person other than an employer, and including any community property interest in the income of a spouse. Income also includes an outstanding loan. Income of an individual also includes a pro rata share of any income of any business entity or trust in which the individual or spouse owns, directly, indirectly or beneficially, a 10 percent interest or greater. "Income," other than a gift, does not include income received from any source outside the jurisdiction and not doing business within the jurisdiction, not planning to do business within the having done business within the jurisdiction during the two years prior to the time any statement or other action is required under this title. ITEM NUMBER: A-4 DATE: 09/23/14 ATTACHMENT: 1 EXHIBIT: A (B) "Income" does not include: (1) Campaign contributions required to be reported under Chapter 4 (commencing with Section 84100). (2) Salary and reimbursement for expenses or per diem received from a state, local, or federal government agency and reimbursement for travel expenses and per diem received from a bona fide educational, academic, or charitable organization. (3) Any devise or inheritance. (4) Interest, dividends, or premiums on a time or demand deposit in a financial institution, shares in a credit union or any insurance policy, payments received under any insurance policy, or any bond or other debt instrument issued by any government or government agency. (5) Dividends, interest, or any other return on a security which is registered with the Securities and Exchange Commission of the United States Government or a commodity future registered with the Commodity Futures Trading Commission of the United States Government, except proceeds from the sale of these securities and commodities futures. (6) Redemption of a mutual fund. (7) Alimony or child support payments. (8) Any loan or loans from a commercial lending institution which are made in the lender's regular course of business on terms available to members of the public without regard to official status if: (a) Used to purchase, refinance the purchase of, or for improvements to, the principal residence of flier; or (b) The balance owed does not exceed ten thousand dollars ($10,000). (9) Any loan from an individual's spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, uncle, aunt, or first cousin, or the spouse of any such person, provided that a loan from any such person shall be considered income if the lender is acting as an agent or intermediary for any person not covered by this paragraph. (10) Any indebtedness created as part of a retail installment or credit card transaction if made in the lender's regular course of business on terms available to members of the public without regard to official status, so long as the balance owed to the creditor does not exceed ten thousand dollars ($10,000). ITEM NUMBER: A-4 DATE: 09/23/14 ATTACHMENT: 1 EXHIBIT: A (11) Payments received under a defined benefit pension plan qualified under Internal Revenue Code Section 401(a). (12) Proceeds from the sale of securities registered with the Securities and Exchange Commission of the United States Government or from the sale of commodities futures registered with the Commodity Futures Trading commission of the United States Government if the flier sells the securities or the commodities futures on a stock or commodities exchange and does not know or have reason to know the identity of the purchaser. ITEM NUMBER: C-1 DATE: 09/23/14 Atascadero City Council Staff Report – Public Works Department Atascadero Lake Phase II Sediment Removal Award City Bid No. 2014-008 RECOMMENDATIONS: Council: 1. Authorize the Director of Administrative Services to appropriate up to $470,000 from General Fund Reserves for the removal of sediment from Atascadero Lake and Lake Fill Line repairs; and, 2. Authorize the City Manager to execute a contract with ABI General Engineering Inc., in the amount of $287,000, for the removal of sediment from Atascadero Lake; and, 3. Authorize the City Manager to execute change orders, as needed, for up to 40% of the original contract amount ($114,800) to remove extra sediment if time, budget and weather allow for it; and, 4. Authorize the City Manager to sign an agreement with the Atascadero Mutual Water Company agreeing to terms for sediment spreading on Water Company Land; and, 5. Authorize the Public Works Director to file a notice of completion upon satisfactory project completion. DISCUSSION: Background: Atascadero Lake has completely dried up because of the current drought. As a result, the amount of sediment that has been building up for decades is now apparent. This build up has made the lake shallower, warmer and nitrogen rich; which has led to severely degraded water quality, periodic fish die offs, and loss of Lake aquatic animal habitat. The degraded water quality is related to the buildup of nitrogen and nutrients in the Lake sediment. The built up nutrients along with algae blooms, feed bacteria that consume oxygen in the Lake, which in turn causes fish die offs. However, one of the benefits of the drought has been the opportunity for the City and citizens, working together, to ITEM NUMBER: C-1 DATE: 09/23/14 relocate the domestic ducks and geese that frequented the Lake shores. The result will be a future reduction of nutrients going into the Lake, which will improve water quality when the Lake refills. Picture 1: Phase II Removal Area ITEM NUMBER: C-1 DATE: 09/23/14 Another benefit of the drought is the empty Lake also provides the City with an ongoing opportunity to remove sediment and built-up organic material which would also enhance water quality. The Phase I sediment removal was completed in November 2013. Phase I removed approximately 7,000 cubic yards of sediment, which lowered the Phase I project area two to three feet. The Phase I and proposed Phase II sediment removal areas are shown on Picture 1. Summary: Phase II Plans The Phase II project is designed to remove approximately 15,000 cubic yards of lake sediment. The general project area is shown above in Picture 1. The sediment removal area will span the middle portion of the lake as shown in Picture 2. The sediment will be removed and trucked to an Atascadero Mutual Water Company (AMWC) property on Templeton Road. Picture 2 – Phase II Removal Area. The vegetation will be removed prior to sediment removal. Pavilion Lake Dam Northern Limit Southern Limit where Phase I ended. The removal area is between the northern southern limits. Approximately 8 acres. ITEM NUMBER: C-1 DATE: 09/23/14 City and AMWC staff developed a mutual agreement that outlines the City’s responsibility with respect to sediment disposal and spreading on the subject property. Staff believes this agreement is reasonable and will save the City money with respect to disposal. The AMWC is not charging the City to accept the Lake sediment. This has resulted in a savings of approximately $30,000 to the project. Another disposal location wanted to charge the City $2.00 per cubic yard for disposal. The Phase II sediment removal project work plan includes the following elements: 1. The City will contract with the biological consultant firm of Althouse & Meade to perform pre-construction endangered species surveys, and monitor sediment removal and best management practices for environmental protection as work proceeds. 2. Dry sediments and vegetation will be removed starting where Phase I sediment removal stopped. Work will progress towards the dam and will stop near the front of the Pavilion. (See Picture 2) If sediments and funding permit, the City will consider additional removal. 3. A temporary access ramp will be created in the non-vegetated edge of the Lake on Lake View Drive. 4. Excavated sediment will be transported out of the lake bed and loaded into dump trucks staged in the circular drive area off of Lakeview Drive. 5. The Atascadero Mutual Water Company has agreed to take the sediment for re - use on farm land east of Atascadero. A Draft sediment disposal agreement with the Atascadero Mutual Water Company is attached. The agreement outlines terms for disposal which include spreading the soil and indemnification of the Water Company and its staff. Staff and the City Attorney have reviewed the contract and believe it is reasonable with respect to soil disposal on the property. Sediment reuse on the Water Company property has enabled the City to reduce disposal costs by an estimated $30,000. 6. The City will contract with Dakos Surveying to determine actual sediment removal quantities. This will be completed by utilizing before and after lake bed surveying data. 7. Repair the Lake Fill Line by removing debris and repairing damaged sections. 8. In the event the work goes smoothly, and the contractor can remove the sediment prior to the permit expiration date of November 21 st, staff is recommending that up to 40% of the original contract amount, or $114,800, be used to process a change order to complete additional lake sediment removal. ITEM NUMBER: C-1 DATE: 09/23/14 Agency Permitting Projects within the Lake fall under the jurisdiction of three agencies : the California Department of Fish & Wildlife (F&W) [previously Fish & Game], Central Coast Water Board, and Army Corps of Engineers. To date, staff has secured permission to remove sediment from all three agencies. The Water Board has approved both the sediment removal and proposed re-use location on Templeton Road. Staff has coordinated with the Corps of Engineers and has verified that permits are not needed. A permit is not needed since the contractor will only be allowed to use the scoop and lift method of excavation. An example of scoop and lift would be the use of an excavator with a large bucket that deposits the material in a dump truck. Corps permits are triggered when even a small amount of soil is re-deposited in a lake bed. By lifting the sediment, fill or stockpiling is avoided, and a Corps permit is not needed. F&W staff has confirmed no permit is necessary since the project will not adversely affect the fish or wildlife resource. Phase II Bids The City has advertised and received bids for the Phase II work. Bids were opened on September 11, 2014. The City received seven bids, which ranged from a low of $287,000 to a high of $433,750. The low bid is in line with Staff’s expectation of cost. The apparent low bid is in compliance with the City’s purchasing policy and procedures. Therefore, staff recommends award of the project to ABI General Engineering Inc. FISCAL IMPACT: Authorization of the sediment removal would result in a one-time expenditure of up to $470,000.00 of General Fund Reserves. An updated seven year financial projection is attached, showing the effect of this use of reserves on the General Fund Balance. ALTERNATIVES: Council: 1. May direct staff not to remove sediment at the Lake at this time and cancel the bid. 2. May direct staff to reduce the project scope by reducing the size of the Lake project area. Staff would process a change order to reduce the project scope. 3. May direct staff to modify current normal Field Operations and Maintenance activities and perform the sediment removal in house. ITEM NUMBER: C-1 DATE: 09/23/14 The sediment removal project would require at least six Operations Staff to work on the project for a period of approximately six to eight weeks. During this time they would be unable to do the routine maintenance activities in the Parks, Streets and Zoo. Activities such as mowing, garbage pickup, bathroom maintenance, road repairs and zoo accreditation projects would be put on hold. In addition , this time of the year is typically dedicated to storm drain preparation for the upcoming rainy season. Should this work be delayed or not performed the City runs the risk of increased storm damage due to inadequate clearing of culverts, drainage swales and drain inlets. ATTACHMENTS: 1. Draft Agreement with the Atascadero Mutual Water Company 2. Updated Seven Year Financial Projection – Lake Sediment Removal Project, Phase II ITEM NUMBER: C-1 DATE: 09/23/14 ATTACHMENT: 1 Lake Sediment Disposal Agreement Page 1 of 3 AGREEMENT REGARDING THE DISPOSAL OF SEDIMENT EXCAVATED FROM ATASCADERO LAKE THIS AGREEMENT (“Agreement”) is made and entered into by and between the Atascadero Mutual Water Company, a California corporation ("AMWC") and the City of Atascadero (the “City") for the disposal of sediment from Atascadero Lake onto property owned by AMWC. RECITALS A. WHEREAS, the City owns the parcels of land in the City of Atascadero, County of San Luis Obispo, State of California that underlie the water body commonly known as Atascadero Lake (the “Lake”); and B. WHEREAS, City desires to excavate 20,000 cubic yards, more or less, of sediment from the Lake (the “Sediment”) while the lakebed is dry due to the persistent drought; and C. WHEREAS, City has determined that the Sediment is non-hazardous based on sampling and testing performed by City; and D. WHEREAS, City requires a site to dispose of the Sediment; and E. WHEREAS, federal, state and local laws, statutes and ordinances may apply to City’s disposal of Sediment; and F. WHEREAS, AMWC owns a parcel of land at 3375 Templeton Road located in the County of San Luis Obispo, State of California, APN 034-421-022 (the “Property”); and G. WHEREAS, the Property could act as a disposal site for the Sediment; NOW, THEREFORE, the parties hereto do promise and agree with one another as follows: 1. Disposal of Sediment. AWMC agrees to allow the City to dispose of the Sediment on the Property at no cost. City shall grub the existing weeds from the lake bed before removing the Sediment and dispose of the weeds on a site other than the Property. City shall spread the Sediment evenly over the Property in lifts not exceeding six (6) inches, or as directed by AMWC. City shall spread the Sediment at the locations on the Property as directed by AMWC. The City shall hydro-seed those areas on the Property where Sediment is disposed that will not be farmed or planted by AMWC or its agent. The hydro-seed mix shall be approved by AMWC. 2. Permits City shall acquire and adhere to all conditions of all necessary permits and approvals required for disposal of the Sediment on the Property. 3. Compliance with Applicable Laws. City shall comply with all applicable federal, state and local laws, statutes and ordinances that may apply to City’s disposal of Sediment on the Property. 4. Preservation of AMWC Property. City shall provide and install suitable safeguards, approved by AMWC, to protect AMWC's property from injury or damage that could result from City’s disposal of ITEM NUMBER: C-1 DATE: 09/23/14 ATTACHMENT: 1 Lake Sediment Disposal Agreement Page 2 of 3 Sediment on the Property under this Agreement. If AMWC's property is injured or damaged as a result of City's disposal of Sediment on the Property, City shall, at its expense, replace or restore such property to the condition it was in prior to the commencement of the City’s operations. 5. Insurance - No less than two weeks prior to the disposal of the Sediment on the Property, City shall, at its own expense, procure and maintain in force policies of insurance issued by a responsible carrier or carriers acceptable to AMWC which afford the coverage required under this paragraph. City shall name AMWC as an additional insured in each policy required to be maintained by City under this paragraph with the exception of the workers compensation. City shall provide AMWC with a certificate or certificates from the insurers evidencing such coverage before disposing of any Sediment on the Property. A. Workers Compensation and Employer's Liability Coverage in the amount required by California law; and B. Motor Vehicle Liability insurance in the amount required by California law; and C. Commercial general liability insurance, on an occurrence basis, providing single limit coverage in an amount not less than $1,000,000 per occurrence with an aggregate of not less than $2,000,000 protecting City and AMWC against all claims and liability for bodily injury, personal injury and property damage arising out of, related to, or in connection with the disposal of the Sediment on the Property. Said insurance shall also include blanket contractual coverage of the terms of the Agreement, including, but not limited to, City’s indemnification of AMWC below. If City is self-insured under one or more JPAs, or otherwise, it may comply with the terms of this paragraph by providing AMWC with proof of such self-insurance, with at least the coverages and limits required above, no less than two weeks prior to the disposal of the Sediment on the Property. 6. Indemnification. City shall indemnify and hold AMWC, and its officers, directors, employees and agents, harmless from and against any and all claims, demands, damages, costs and liabilities, including, but not limited to, interest, penalties, reasonable attorneys' fees and costs, and expert witness fees and costs, arising out of, related to, or in connection with City disposal of the Sediment on the Property, or breach of any provision of this Agreement, except for any claims, demands, damages, costs or liabilities resulting from the negligence or willful misconduct of AMWC, its officers, directors, employees or agents. It is the intent of the parties that City shall provide AMWC with the fullest indemnification, defense and hold harmless rights allowed under the law. 7. Compliance with Applicable Laws. City shall comply with all applicable federal, state and local laws, statutes and ordinances that may apply to City’s disposal of Sediment on the Property, including, but not limited to, all rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 8. Successors and Assigns. This Agreement shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors and assigns of the City and AMWC and to all future owners of the Property. ITEM NUMBER: C-1 DATE: 09/23/14 ATTACHMENT: 1 Lake Sediment Disposal Agreement Page 3 of 3 9. Ownership. AMWC represents and warrants that it is the sole owner of the Property and has the legal right, capacity, and authority to enter into this Agreement. 10. Authorization. Each signatory below represents and warrants that he/she is authorized to sign on behalf of his/her respective entity. 11. Time is of the Essence. Time is of the essence in this Agreement. 12. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof. No changes, amendments, or modifications to this Agreement shall be effective unless in writing and signed by both parties. 13. Governing Laws. This Agreement shall be construed, interpreted, and governed under the laws of the State of California. 14. Effective Date. This Agreement shall become effective as of the date of the signature of AMWC. AMWC shall be the last to sign this Agreement. Atascadero Mutual Water Company: _____________________________________ John B. Neil, General Manager date City of Atascadero: __________________________________________________ signature date __________________________________________________ printed name __________________________________________________ Title Actual 2012/2013 Budgeted 2013/2014 Budgeted 2014/2015 Estimated 2015/2016 Estimated 2016/2017 Estimated 2017/2018 Estimated 2018/2019 Estimated 2019/2020 Taxes 6,766,432$ 6,897,220$ 7,095,810$ 7,344,160$ 7,601,200$ 7,867,250$ 8,063,930$ 8,265,530$ RDA Dissolution Distributions 2,374,020 57,370 70,130 83,760 97,070 114,590 120,000 120,000 Other Property Taxes 176,693 177,660 208,940 230,870 258,490 281,160 282,520 283,900 Sales Tax 3,295,061 3,242,020 3,363,680 3,484,300 3,969,670 4,273,320 4,453,350 4,631,770 Franchise Fees 1,009,974 1,012,170 1,023,110 1,026,130 1,012,340 1,015,220 1,026,510 1,029,620 Transient Occupancy Tax 703,990 691,900 854,900 867,570 854,000 840,200 857,000 874,100 Other Taxes 270,090 265,000 265,000 277,000 277,000 277,000 277,000 277,000 Permits 404,420 327,880 431,450 468,650 452,240 489,150 478,990 478,990 Intergovernmental 101,364 79,740 80,410 81,970 83,380 85,630 87,380 89,990 Grants 269,330 13,480 1,510 1,750 1,750 1,750 1,750 1,750 Service Fees Safety Fees 239,274 230,230 232,390 233,740 235,930 237,560 239,340 241,260 Mutual Aid 688,182 220,930 220,930 220,930 220,930 220,930 220,930 220,930 Development Fees 767,005 988,400 496,320 531,960 526,290 569,200 562,720 567,880 Recreation Fees 316422 288,680 288,530 288,160 292,230 295,830 300,230 303,840 Administrative Fees 44,342 43,500 50,370 52,250 52,410 55,000 54,880 55,460 Pavilion & Other Rental Fees 149,811 151,800 143,400 144,230 144,230 145,080 145,960 146,860 Parks Fees 36,156 30,890 30,890 31,720 31,720 32,570 32,570 33,450 Zoo Fees 330,174 400,820 415,980 440,400 456,930 463,550 467,210 469,930 Fines 60,418 76,100 76,300 88,000 120,550 120,550 78,760 78,970 Interest Income 51,961 34,960 28,100 24,100 22,100 22,100 20,100 24,100 Other Interfund Charges 752,650 787,870 784,500 819,300 810,610 844,100 834,780 866,770 Donations 117,904 26,500 27,500 26,500 27,500 28,500 30,500 32,500 Other 695,852 314,050 314,050 314,050 74,150 74,150 74,150 74,150 Transfers 453,539 363,930 372,470 391,090 410,640 431,170 452,730 475,370 Total Revenues 20,075,064 16,723,100 16,876,670 17,472,590 18,033,360 18,785,560 19,163,290 19,644,120 Employee Services (12,926,538) (12,412,720) (12,717,790) (12,995,320) (13,254,640) (13,499,680) (13,721,200) (13,959,560) Operations (5,133,247) (4,552,490) (4,652,930) (4,631,530) (4,739,080) (4,893,980) (4,915,100) (5,069,080) (327,857) (1,072,810) (653,900) (203,200) (203,300) (213,450) (213,600) (213,750) Capital Outlay (136,425) (35,000) - (90,000) (90,000) (90,000) (90,000) (90,000) Other Uses (10,491) (1,080) (1,020) (1,020) (1,210) (1,210) (1,210) (1,210) Total Expenses (18,534,558) (18,074,100) (18,025,640) (17,921,070) (18,288,230) (18,698,320) (18,941,110) (19,333,600) NET INCOME / (LOSS)1,540,506 (1,351,000) (1,148,970) (448,480) (254,870) 87,240 222,180 310,520 Fund Balance Beginning of Year 6,466,562 8,007,068 6,656,068 5,507,098 5,058,618 4,803,748 4,890,988 5,113,168 FUND BALANCE END OF YEAR 8,007,068$ 6,656,068$ 5,507,098$ 5,058,618$ 4,803,748$ 4,890,988$ 5,113,168$ 5,423,688$ Fund Balance as % of Expenses 43.2%36.8%30.6%28.2%26.3%26.2%27.0%28.1% Estimate reflects amounts budgeted as part of the 2013-2015 budget process, adjusted for Council changes since adoption of the 2013-2015 budget. (Lake Sediment Removal Project Phase I, Employee MOUs, Lake Sediment Removal Project Phase II) Special Projects & Community Funding GRAPHS AND SUMMARIES Seven Year Projection- Lake Sediment Removal Project Property Tax (Current Secured & VLF) ITEM NUMBER: C-1 DATE: 09/23/14 ATTACHMENT: 2 ITEM NUMBER: C-2 DATE: 09/23/14 Atascadero City Council Staff Report - Community Development Department Del Rio Road / US 101 Interchange Project Update RECOMMENDATION: Council receive and file update on Del Rio Road Interchange Project . REPORT IN BRIEF: As part of the review and approval of the Walmart / Annex Project, it was determined that the Del Rio Interchange (Interchange) would have to be improved in order to accommodate the traffic expected from both the Walmart and the Annex projects. In order to mitigate the traffic impacts caused by the Walmart/Annex Project, Walmart and the Annex were conditioned to pay their fair share of the expected costs to improve the Del Rio Interchange. Knowing that the Caltrans process can often be long and difficult, Council directed staff to begin work on the interchange in spite of the lawsuit pending at the time. On November 27, 2012 the Council approved a contract with Wallace group to provide initial engineering and environmental services for the Del Rio Road In terchange Project (Interchange Project). The services to be provided include transportation planning, preparation of Caltrans Project Study Report, design exceptions, fact sheets roundabout design analysis, plans, reports, preliminary cost estimates, drainage / storm water design and associated environmental services. With the resolution of the Walmart / Annex litigation, there have been many inquiries as to the status of the Del Rio Interchange Project, the process and timeline for the Interchange Project, and if there is any updated information on the Interchange Project. This staff report is intended to review the background of the Del Rio Interchange Proje ct and review the process for the Interchange Project. While it is still very early in the process (Wallace Group is preparing to complete and submit the first phase of the Interchange Project to Caltrans) the staff report also contains information regarding the consultants latest Interchange Project time frame estimates and cost estimates. ITEM NUMBER: C-2 DATE: 09/23/14 BACKGROUND: Del Rio Road / US 101 Interchange facility constraints During the review phase on the Walmart/Annex Project, the City analyzed the project’s impact on the Del Rio Road / US 101 Interchange. Preliminary traffic analysis indicated the traffic capacity of the interchange would need to be expanded to accommodate the Walmart / Annex project at build out. The City and applicant’s engineer reviewed options to increase the interchange capacity. The primary constrain at the interchange is the two la ne width of the overcrossing bridge. Because the bridge only has width for two lanes, a dedicated center turn lane for left turn moves at the ramp head intersections is not possible. Without dedicated left turn lanes at the existing ramp head signals, th e capacity of the interchange cannot be increased. This same two lane constraint exists at all six of the freeway overcrossing bridges in Atascadero. This issue was analyzed by a City consultant in the 2008 Interchange Operational Improvement Study (W -Trans). The City study, which was reviewed by Caltrans, analyzed two options to increase capacity on two lane bridge interchanges: 1. Widen the bridge to accommodate three full lanes. 2. Convert the signalized ramp head intersections to roundabouts that fu nction efficiently with a two lane bridge. The 2008 study recommended roundabouts as the preferred option for the Del Rio Road / US 101 Interchange. ITEM NUMBER: C-2 DATE: 09/23/14 Del Rio Road / US 101 Interchange Cost Estimates In 2009, W -Trans recommended that $3.75 million be used as a “very preliminary planning-level discussion” number for the Del Rio Road / US 101 Interchange roundabout costs. Refer to following memo excerpt (Attachment 1): ITEM NUMBER: C-2 DATE: 09/23/14 Excerpt from Page 5 ITEM NUMBER: C-2 DATE: 09/23/14 Separate from the City’s 2008 study, the applicant’s engineer (EDA) also reviewed options to increase interchange capacity. EDA determined that widening the bridge was cost prohibitive and recommended roundabouts as a more cost effective approach. The following table was provided by EDA to the City with a preliminary estimated the roundabout costs at $4.5 million (Attachment 2). ITEM NUMBER: C-2 DATE: 09/23/14 The City Engineer required EDA submit an official signed cost estimate prior to project hearings. That final “preliminary opinion of probable cost” was submitted o n June 18, 2012 and estimated the interchange cost at $4.4 million (Attachment 3). ITEM NUMBER: C-2 DATE: 09/23/14 Del Rio Road / US 101 Interchange Conditions of Approval Based on the multiple cost estimates in the $4 to $5 million range, staff prepared conditions of approval to require the Walmart / Annex project to pay their fair share of the estimated Interchange improvement costs. The City hired Resource Cost Specialist (RCS) to prepare a fair share cost model for the Walmart / Annex project. The fair share model looked at all the of the project’s circulation impacts and mitigation costs. The fair share model used $4.5 million to calculate the project’s fair share costs. RCS Fair Share Model – 3/13/12 ITEM NUMBER: C-2 DATE: 09/23/14 RCS Fair Share Model Interchange cost assumptions – 3/13/12 $4,500,000 Del Rio Road / US 101 interchange improvement cost ITEM NUMBER: C-2 DATE: 09/23/14 Fair fee summary PowerPoint slide presented to City Council Traffic Mitigation Requirements The project EIR thoroughly analyzed the traffic impacts that would result from the construction of the Walmart and Annex developments. The EIR identified a series of traffic circulation improvements that would be required. Except for the Del Rio Road / US 101 Interchange improvements, the project applicant will be responsible for all of the circulation mitigation improvements. The traffic mitigation measures for the project will include the following: Walmart / Annex required improvements:  a third roundabout at El Camino Real / Del Rio Road  a new signal at El Camino Real / New Public Roadway (serving Walmart)  a new signal light at El Camino Real / San Anselmo Road (North)  improve 0.5 mile of El Camino Real as an 4-lane arterial  improve 1,000 lineal feet of Del Rio Road as multi-lane collector  amenities including an enhanced transit stop, Class II bike lanes, street landscaping, and sidewalks ITEM NUMBER: C-2 DATE: 09/23/14 City improvements (Developer Fair Share contribution):  Del Rio Road / US 101 interchange roundabouts The project is conditioned to provide the following improvements and traffic impact fee payments:  Fair Share of the estimated Interchange Project costs  Payment of standard City Traffic Impact Fees (TIF)  Early payment of TIF fees  Construction of frontage improvements  Construction of offsite circulation improvements  Requirement that both Walmart and the Annex would participate in their fair share of overruns with up to $200,000 more to be contributed by each.  Walmart’s payment of City traffic impact fee for the Del Rio Road / US 101 Interchange roundabouts to be paid in progress payments in the following amounts: 1. Payment of $250,000 when the Walmart entitlements are final; 2. Payment of $600,000 due at the time of grading permit and City Responsibility Walmart / Annex Responsibility ITEM NUMBER: C-2 DATE: 09/23/14 3. Payment for the balance due at time of building permit. Timing and amount of other City traffic impact fees to be paid in amounts and times as set forth in the Improvement Agreement. The Traffic Impact fees to be paid by the Annex are due prior to the issuance of each building permit as required by the EIR mitigation measures (MM TRANS-d1 and 1e). The Del Rio Road / US 101 Interchange mitigation conditions are as follows: ITEM NUMBER: C-2 DATE: 09/23/14 Walmart portion - Del Rio Road / US 101 interchange mitigation condition ITEM NUMBER: C-2 DATE: 09/23/14 Annex portion - Del Rio Road / US 101 interchange mitigation condition ITEM NUMBER: C-2 DATE: 09/23/14 Traffic Mitigation Timing Currently, there is existing capacity in the Del Rio Road / US 101 Interchange for additional commercial development. The EIR determined the interchange could accommodate the traffic from the Walmart store, but any development from the Annex portion of the project would trigger the need for the interchange improvements. The Final EIR included a mitigation measure that would allow the opening of the Walmart store prior the interchange improvements, but requires the interchange improvements to be in place prior to the opening of any Annex buildings. CALTRANS APPROVAL PROCESS: Caltrans delivers, or approves projects by others within state right of way, through a defined project delivery process that is outlined in the state Project Development Procedures Manual (PDPM). Projects such as the Del Rio Road / US 101 Interchange Project require an encroachment permit from Caltrans both for the design efforts and the actual construction. The process used to obtain the required permits from Caltrans can be summarized into 4 major phases (see “Attachment – Summary of Project Delivery Phases”): ITEM NUMBER: C-2 DATE: 09/23/14  Phase 1 - Project Initiation Document (PID) Phase: includes a Project Study Report (PSR) and now includes the Intersection Control Evaluation (ICE) process.  Phase 2 - Project Approval and Environmental Document (PAED) Phase; includes a Project Report and Environmental document specific to the interchange improvements. Caltrans approval of these documents constitutes “Project Approval” by Caltrans which allows Caltrans to review/approve the final design.  Phase 3 - Plans, Specification and Estimate (PS&E) Phase: Design package to allow advertisement for construction and application of the required encroachment permit.  Phase 4 - Construction Phase: Contractor can obtain encroachment permit and construct within Caltrans right of way. These phases are typically conducted sequentially and dependent on the complexity of a project each phase may take two (2) or more years to complete. Using the typical sequential process the construction phase could be expected to begin in the 2020 year. In order to expedite the process the consultants have planned to overlap portions of phases 1, 2 and 3 with the goal to go to construction in mid to late 2017. Phase 4 cannot be overlapped as it is dependent on the finalization of Phase 3. The risk of the overlapping approach is that there may be potential project changes required by Caltrans review in areas where the consultant has begun work on the next phase. This may mean that the consultant will have to re-perform certain areas of work. The benefit to the overlapping of phases is it allows the schedule to be expedited. Having a project further along in the process improves its’ competitive standing for funding through the Regional Transportation Plan (RTP) administered by the San Luis Obispo Council of Governments (SLOCOG). Expediting the project also helps the City define the requirement that allows the Walmart project phases to proceed. The City must approve a “Planline” for the preliminary design of the US 101 roundabouts and the roundabout at the intersection of Del Rio Road with El Camino Real in order to coordinate construction with the Walmart project. Further, before Walmart can open for business the roundabout at the intersection of Del Rio and El Camino Real must be built. If the construction of the roundabouts cannot be conducted simultaneously, then the roundabout at Del Rio and El Camino must conform to the final approved design for Caltrans to minimize any removal of newly constructed road improvements once the interchange roundabouts are constructed. Expediting the project delivery schedule helps the City define the planline, improves coordination between projects and potentially reduces traffic impacts related to construction. Currently the City has authorized a contract with the consultants for all of Phase 1 and the first part of Phase 2. As of September 2014 the Wallace Group (Wallace) ITEM NUMBER: C-2 DATE: 09/23/14 consultant team has received Caltrans approval of the Intersection Control Evaluation (ICE) document which eliminates the need for a separate Roundabout Concept Approval Report (RCAR). Wallace expects to submit a Draft PID (the Draft Project Study Report) to Caltrans within the month. This is the key step toward obtaining a Caltrans permit for the interchange construction project. To accelerate the process and accurately estimate costs, the consultants have moved forward with preliminary design details as part of Phase 1. Although this refined, three dimension design work is typically developed in Phase 2 (PAED), staff and the consultant determined this work needed to be accelerated. The environmental studies and Project Report work will begin as soon as the City provides the additional budget authorization for that Phase to proceed. ITEM NUMBER: C-2 DATE: 09/23/14 CALTRANS SUBMITTAL AND ESTIMATED PROJECT COSTS: Caltrans has a defined set of phases and documents required to approve a project and a cost estimating procedure for the planning phase and preliminary design phase prior to final design phase. As part of the PID process, a Draft Project Study Report (PSR), which includes a preliminary cost estimate, is ready to submit to Caltrans for first review. The Caltrans cost estimating procedure for a PSR uses a systemized format to identify major items of work such as earthwork, paving, drainage features, and st ructures and then adds anticipated right of way costs to generate an overall estimated construction cost. Percentage contingencies are included within this format for minor items not defined prior to final design and an overall contingency is applied to re flect the early nature of the details. The current planning level estimates produced by the Wallace Group consultant team for the PSR include a greater level of detail than typically available because the consultants are overlapping the planning phase with the preliminary design phase. For instance, survey mapping and right of way limits are now included in the layout concepts and much of the early vertical design work is proceeding. The current roundabout layouts are more refined, consider the vertical changes needed to the approaches and therefore the amount of earthwork to construct those approaches and their associated right of way impacts are also better known. Caltrans criteria is being applied for bridge modifications to accommodate sidewalk and sh oulder improvements and those costs are included. The current cost projections being prepared by Wallace Group for submittal to Caltrans estimate the construction costs for the two roundabouts to be about $9 million dollars. Design, permitting, inspection, environmental document preparation, materials testing and other “soft” costs are currently expected to add an additional $3 million to the cost of the Interchange Project. This is a significant increase from the previous estimates. Major contributing factors to the increase are listed below; 1. Increased costs for importing fill soil to the site 2. Increased right of way costs 3. Increased costs for widening bridge to accommodate Caltrans required sidewalk improvements 4. Increased contingencies 5. Original estimates provided by EDA and others did not include costs for design, inspection, environmental document preparation, permitting, materials testing and other “soft” costs. It should be noted that these costs though refined are still preliminary and subject to change. For instance, potential cost savings may be realized in earthwork and right of way costs. The Walmart project will require removal of a large amount of soil. Excess material being excavated from the Walmart site might be available to be used to build the approach embankments that could result in significant cost reductions and benefit both the Walmart and interchange projects. Right -of-way impacts could also be reduced by negotiation and further future refinements. The current estimate is intended to be a ITEM NUMBER: C-2 DATE: 09/23/14 conservative estimate in line with Caltrans procedures for cost estimate submittals at this first phase of design. The estimate contains significant contingencies for both Caltrans potential changes and other unknown items. INTERCHANGE FUNDING: What does the estimated increased cost mean for the Project? During the review process for the Walmart/Annex project, the City looked at potential funding for the Interchange Project. Although the Interchange Project was originally expected to be paid fo r with City Traffic Impact Fees Only, there is the potential for funding from SLOCOG. While SLOCOG funding is not guaranteed nor granted at this time, we believe that the Del Rio Interchange Project may score high on the next round of RTP Funding to be approved in December of next year for the following reasons:  The US 101/Del Rio Road Interchange has been identified as a critical part of the infrastructure investment needed to implement the City of Atascadero’s key policies and long term planning which is a part of the regions long term planning for Sustainable Communities and Quality of Life in San Luis Obispo County. The adopted City of Atascadero’s Climate Action Plan (CAP) identified Transportation as the leading factor of Green House Gas emissions, approximately 43% of the City’s 2005 baseline emissions. The SLOCOG RTP includes a Sustainable Community Strategy (SCS) and state law requires each region include the SCS as part of the RTP. GHG emission reduction is a key part of that strategy and this project is a key component for the City’s contribution for the regional strategy.  The Interchange Project allows the interchange to service traffic needs for the reduction of Vehicle Miles Traveled (VMT) using US 101: Reducing Vehicle Miles Traveled (VMT) is an integral part of SCS efforts for the RTP and retail shopping retention is also a critical part of the City of Atascadero’s CAP as well as its long term Economic Development planning. The City’s CAP documents a plan to reduce overall Daily VMT by almost 232,000 miles external to the City. Hence, it is logical to consider the local retail development and necessary interchange improvements as a holistic overall strategy to reduce VMT.  The US 101/Del Rio Road Interchange project will include existing key priorities of the RTP, such as Park & Ride lots, transit stops and potential Travel Demand Management strategies to encourage the reduction of VMT using US 101: As part of the proposed improvements potential Park & Ride facilities, transit and Ride Share or other Transportation Demand ITEM NUMBER: C-2 DATE: 09/23/14 Management strategies would be pursued. This is a high priority for the region to reduce VMT on US 101.  The US 101/Del Rio Road Interchange project is consistent with overall system planning by other agencies in the County for increasing land use density in urban areas and decreasing sprawl that resu lts in more trips using US 101: Integrating Land Use Planning with Transportation infrastructure investment has rightly been a key influencer of investment planning and priorities for other agencies within the county such as the now constructed SLO County Willow Road Interchange that was funded by a combination of developer fees, regional and state transportation dollars. The Prado Road interchange is another local interchange project that is key to local priorities and countywide priorities that will certainly require a combination of funding sources.  Funding is a key issue for the RTP and the US 101/Del Rio Road Interchange project has substantial matching funds, matches regional priorities and is viable in the near term: While overall reduction of Vehic le Miles Traveled (VMT), particularly on US 101, is an integral part of the big picture for our County. Like us, the County must leverage funding sources and those projects that have funding and match regional transportation goals are best suited to be included in the RTP.  Benefit Cost quantification is one part of the overall decision process: The 101 Mobility Study quantified Benefit/Cost ratios for projects using primarily Safety benefit and Delay Reduction benefits as key contributors. Safety benefits typically yield the highest monetized benefit value (i.e. dollar value) but the consultants reported that the last 3 year accident history was very small and that is what is used to forecast future accident reduction with the improvements. Due to the current low accident history even the much improved safety conditions of the improvements did not yield any monetized safety benefit for the project. However, qualitatively it is reasonable to assume that the existing facility with greater demand would result in more incidents and it is well documented that the proposed roundabouts have a positive safety benefit. Not only was this limitation reported by the consultants but also the fact that there were generally other “Ancillary Benefits” for all projects th at could not be monetized but would have some policy consistency or other measures that should be considered by decision makers. As detailed above, there may well never again be such an ideal combination of project timing, funding match, and regional needs as exists right now. The combination maximizes the City’s potential to successfully be awarded SLOCOG funding that could potentially fund half of the project. Strategic delays in the project’s momentum will likely affect the City’s competitive advantage. ITEM NUMBER: C-2 DATE: 09/23/14 Current Project Budget SLOCOG 50% Match/ Local 50% Match SLOCOG 45% Match/ Local 55% Match SLOCOG 40% Match/ Local 60% Match Walmart Traffic Impact Fees 2,474,876$ 2,674,876$ 2,674,876$ 2,674,876$ Walmart Outlier Building Traffic Impact Fees 183,230 183,230 183,230 183,230 Annex Traffic Impact Fees 2,229,288 2,429,288 2,429,288 2,429,288 Other Traffic Impact Fees 268,126 712,606 1,312,606 1,912,606 Local Match 5,155,520 6,000,000 6,600,000 7,200,000 SLOCOG Contribution - 6,000,000 5,400,000 4,800,000 Capital Project Budgeted Amount 5,155,520$ 12,000,000$ 12,000,000$ 12,000,000$ 101 @ Del Rio Interchange Project What could additional SLOCOG funds mean to the City? Similar interchange improvement projects such as Los Osos Valley Road Interchange Project and the Willow Road Interchange Project were funded at the 50% level. In other words, the local jurisdiction provides 50% of the funding and SLOCOG provides 50% of the funding. Like all jurisdictions, SLOCOG funding is continuing to get tighter and tighter, so below is a table showing what potential funding could look like at a couple of different funding levels (Assuming the high end project cost estimate of $12 million) Assuming the high end project estimate of $12 million, the above funding level table indicates that the local match could potentially be $7.2 million. Almost $5.3 million of that amount would come from the Walmart and Annex developers. The remaining $1.9 million would need to be funded from the other developers within the City. Just over $360,000 of this $1.9 million has already been spent on the Project during the three fiscal years spanning from 2011-2012 through 2013-2014. The preliminary estimate of the ending fund balance for the Circulation Impact Fees Fund (also called the “traffic impact fund”) is about $1,060,000 as of June 30, 2014 (this balance already accounts for the $360,000 in expenditures). The current estimated fund balance of $1,060,000 in the traffic impact fund would cover all but $500,000 of the original $1.9 million in project costs. The remaining $500,000 would be covered by future impact fee revenues. For fiscal year 2013-2014, traffic impact fee revenue projections are $363,700. The table below details potential project funding assuming the most conservative scenario (high end project budget and a 60% local match): ITEM NUMBER: C-2 DATE: 09/23/14 By utilizing the traffic impact fees, there is no expected impact on the General Fund. The traffic impact fees fund will carry a negative balance until such time as sufficient revenues are collected to make up the difference notated. Cash flow will need to be supplemented by another City fund. In accordance with City policies, the loaning fund will charge the impact fund a reasonable interest rate based on interest rates earned on the City’s investment portfolio. Interfund loans are not an uncommon practice and are a good solution to cash flow needs. CONCLUSION: While there is a lot of new and background information provided in this report, there is no action required by the Council at this time. Wallace Group has remaining funds in their current contract to complete the PID/PSR submittal to Caltrans. Although, the project cost estimates have significantly increased, opportunities for outside funding have also improved. The best chance for the City to secure outside funding from SLOCOG relies on the City moving forward with the PID/PSR submittal at this time. In January, it is expected that the City Council will consider the award of Phase 2 (of the Wallace Group contract for the Del Rio Interchange Project. Prior to commitment of the construction funds (sometime in 2017), the City Council will have several approval opportunities to decide whether to move forward and fund the Interchange Project. At this time, the City should continue to move forward with the permitting process while working with SLOCOG on additional funding opportunities. As the project moves through the Caltrans permitting process, more accurate cost estimates will emerge and outside funding opportunities will come into focus. In the future, this will provide the City Council with a clear picture of the actual City financial obligation prior to authorizing construction of the project. Project Expenditures FY 2011-12 Project Expenditures (13,420)$ FY 2012-13 Project Expenditures (116,301) FY 2013-14 Project Expenditures (230,279) Sub-total of already expended funds (360,000) Maximum Other TIF Fee Match (from above table)1,912,606 Remainder of future expenses to fund 1,552,606$ Estimated TIF Fund Balance @ 6/30/14 1,060,000 Unfunded TIF match 492,606$ ITEM NUMBER: C-2 DATE: 09/23/14 ATTACHMENTS: 1. August 24, 2009 W -Trans Memo to Russ Thompson 2. EDA Preliminary Roundabout cost estimate 3. EDA’s Opinion of Probable Cost (6/18/2012) 4. RCS Fair Share Model ITEM NUMBER: C-2 DATE: 09/23/14 Attachment 1: August 24, 2009 W-Trans Memo to Russ Thompson ITEM NUMBER: C-2 DATE: 09/23/14 ITEM NUMBER: C-2 DATE: 09/23/14 ITEM NUMBER: C-2 DATE: 09/23/14 ITEM NUMBER: C-2 DATE: 09/23/14 ITEM NUMBER: C-2 DATE: 09/23/14 ITEM NUMBER: C-2 DATE: 09/23/14 ITEM NUMBER: C-2 DATE: 09/23/14 ITEM NUMBER: C-2 DATE: 09/23/14 Attachment 2: EDA Prelininary Roundabout cost estimate ITEM NUMBER: C-2 DATE: 09/23/14 ITEM NUMBER: C-2 DATE: 09/23/14 ITEM NUMBER: C-2 DATE: 09/23/14 ITEM NUMBER: C-2 DATE: 09/23/14 ITEM NUMBER: C-2 DATE: 09/23/14 Attachment 3: EDA’s Opinion of Probable Cost (6/18/2012) ITEM NUMBER: C-2 DATE: 09/23/14 Attachment 4: RCS Fair Share Model ITEM NUMBER: C-2 DATE: 09/23/14 ITEM NUMBER: C-2 DATE: 09/23/14 ITEM NUMBER: C-2 DATE: 09/23/14 ITEM NUMBER: C-2 DATE: 09/23/14 ITEM NUMBER: C-2 DATE: 09/23/14 ITEM NUMBER: C-2 DATE: 09/23/14 ITEM NUMBER: C-2 DATE: 09/23/14 ITEM NUMBER: C-3 DATE: 09/23/14 Atascadero City Council Staff Report – Fire Department Infrastructure & Vehicle Improvement Plan RECOMMENDATION: Council support staff proposed infrastructure & vehicle improvement & replacement plan. DISCUSSION: Approximately 20 years ago, a wonderful lady named Bertha Shultz adopted the Fire Department. Every firefighter was touched by Bertha. She was a grandmother, mother, counselor, and confidant to all. Captain Tom Way (retired), Engineer Michael Stornetta, Administrative Assistant Ellen Perkins & Chief Kurt Stone developed especially close relationships with Bertha. Bertha loved the community of Atascadero and wanted to give back to the citizens by providing money for their health & welfare. Prior to Bertha’s death she donated more than $150,000 to the Fire Department. She designated the money be used to train paramedics and emergency medical technicians & purchase lifesaving equipment. She supplied the funds to replace and upgrade all of the Department’s cardiac heart monitors ($60,000), medical bags, pulse oximeter monitors, purchase the Fire Department ambulance and numerous other “tools of the trade,” as she liked to refer to her purchases. In December of 2013, unbeknownst to fire staff, she had created a trust naming the Atascadero Fire Department as one of three primary beneficiaries. Bertha designated through her trust, that the Atascadero Fire Department was to receive just ove r $1,000,000 to be spent on “firefighting vehicles and equipment.” Using the departmental strategic plan, staff developed a capital expenditure & infrastructure improvement list which will significantly improve & modernize the fire engine fleet, radio system & breathing apparatus. Seven years ago during fire departmental strategic planning, the department identified fire engine maintenance & replacement issues, service life of the breathing apparatus fleet, and the short service ITEM NUMBER: C-3 DATE: 09/23/14 life left on the radio system. Using this document, staff prioritized these three needs and submitted supplemental budget requests as future placeholders. The above listed capital & infrastructure needs were identified and given a final deadline for when the vehicles and equipm ent would need to be improved or replaced. Below, the text and tables explain the issues, benefits and costs associated with the solutions to these identified needs. The fire service industry has begun to embrace the concept of fire apparatus refurbishment. Historically, the industry has not refurbished fire apparatus because Occupational Safety and Health Administration (OSHA), National Fire Protection Agency (NFPA), Environmental Protection Agency (EPA) and Federal Department of Transportation (DOT) standards continued to change, making fire apparatus obsolete 10-15 years after its manufacture date. Engines 7591 & 7592 are well built and sit on the best chassis in the industry. Staff purposely specified these engines to be built with longevity as a primary goal. These two engines are ideal for refurbishment and will serve the community 8 years longer than previously planned. Type I Engine Refurbishment Plan Engine Number Added Life to Vehicle Schedule Cost of Refurbishment: 7591* 8 years additional for a total service life of 28 years $134,389 Contingency $14,000 Shipping $4,000 7592* 8 years additional for a total service life of 28 years $134,840 Contingency $14,000 Shipping $4,000 Total Cost for Refurbishment Plan: $305,229 *Note: E-7591 & E-7592 are over 10 years old and approaching 90,000 & 100,000 miles respectively The replacement of E-7573, a Type III or wildland type engine, with a Type I or structure fire type engine will serve the City of Atascadero. A Type I engine is much more useful and is more flexible, giving the fire department staff a better tool to meet its primary mission of EMS and Structure Fire response. This type of engine is “rated” or counted by the Insurance Services Office (ISO) whereas the Type III is not. Additionally, the Type I engine has greater capacities for pumped water flow per minute, equipment storage areas, and extra space for breathing apparatuses. New Type I Engine (E-7573 Replacement) Engine Number 7593 Service Life Cost of New Engine: Pierce 365 Arrow XT Type I 20 years $566,972 Miscellaneous Equipment 40 years $90,000 Total: $656,972 ITEM NUMBER: C-3 DATE: 09/23/14 The Federal government changed the rules on radio frequencies and frequency spectrum. These new rules took effect 6 years ago. Unfortunately the new rules require radios to function in much more strict tolerances. Most of the police and fire radios were upgraded in anticipation of the change. What was not anticipated was the need for many more channels to be programmed into these radios. In the 1980’s the department radios held four channels. The department’s current radios hold 512 channels and the proposed new radios will accommodate more than 1000 channels. The volume of channels allows multiple fire agencies to communicate on incidents involving automatic and mutual aid. Currently the radio fleet is nearing 10 years of age. T he common service life for handheld radios is 10 years, radio pagers 10 years and mobile radios 12 -15 years. Following the department’s strategic plan, staff applied for an Assistance to Firefighters Grant (AFG) in spring of 2014; a denial letter was received in August. Staff trimmed the radio budget from the amount asked of AFG to the figures in the table below. Radio: Radio Type Use Service Life Quantity Cost: Handheld Individually Assigned 10 40 $156,459 Pagers Individually Assigned 10 40 $21,243 Mobile Station & Vehicle Assigned 15 10 $51,000 Total: $228,702 Breathing apparatus (BA) service life is generally 10-15 years. The fire department’s fleet of BA’s is 10 years old and in need of replacement or refurbishment. Replacement would cost $350,000 to $400,000. Staff is recommending refurbishment of the packs and replacement on the bottles or air tanks. DOT arbitrarily decided BA bottle s older than 10 years cannot be transported in a vehicle while compressed. In May of 2015 all of the fire department’s BA bottles will essentially “expire,” requiring replacement. Breathing Apparatus: Manufacturer / Item Service Life Quantity Cost: Interspiro Packs Refurbish 10 - 15 years 40 $20,000 Interspiro Bottles 10 years 80 $90,000 Total: $110,000 The Fire Department has purchased a new system for securing drugs and tracking access to these controlled substances. The new “custodial” tracking requirements have been implemented for all paramedics. These requirements are related to handlin g, storing and dispensing of controlled substances such as morphine sulphate, valium & versed. Lastly, the department is critically short of fire hose and is in the process of purchasing $15,000 worth of hose. ITEM NUMBER: C-3 DATE: 09/23/14 Miscellaneous: Item Service Life Cost: Knox’s Controlled Substance Safes 30 years $7,900 Hose 20 years $15,000 Total: $22,900 FISCAL IMPACT: The total outlay of expenditures is $1,323,803 with $179,766 expended from the Vehicle Replacement Account Fund, $123,000 expended from the fire impact fees fund for the expanded capacity of the Type I engine , and $1,021,037 from Bertha Schultz Trust Funds. ALTERNATIVES: 1. Council can direct staff to alter the proposed expenditure of Bertha Schultz Trust Funds. ATTACHMENTS: None ITEM NUMBER: C-4 DATE: 09/23/14 Atascadero City Council Staff Report – City Manager’s Office Tourism Business Improvement District (TBID) Board Update Consideration of Appointment of Two Board Members to Fill Vacancies RECOMMENDATIONS: Council: 1. Accept the resignation of Bhikhu Patel, and terminate Sohem Bhakta’s membership due to excessive unexcused absences; and, 2. Give staff direction on filling the two vacancies, wh ose terms will expire on June 30, 2015. DISCUSSION: In 2013, the lodging businesses in Atascadero requested the Council establish a TBID in order to levy annual assessments that would fund tourism promotions and marketing programs to promote the City as a tourism destination. The City Council did establish the TBID, appointed Board Members, and the assessments began June 1, 2013. Once Board Member terms are close to expiring, the TBID’s Rules and Procedures lay out the nomination process that must be followed. In February before the expiration of terms, a letter is mailed out to each Lodging Business notifying them of a TBID meeting for the purpose of making nominations for the Board seats that are scheduled to be vacant in July. At this meeting, lodging business owners will be nominated, and a written ballot election will determine the nominees to be recommended to the City Council. The results of the nomination meeting will be forwarded to the City Clerk no later than April 30th to be placed on the Council’s agenda as a recommendation for filling the Board vacancies. The Atascadero Municipal Code § 3-16.07 (b) states that membership on the TBID Board is limited to Lodging Business owners or employees or other representatives ITEM NUMBER: C-4 DATE: 09/23/14 holding the written consent of a Lodging Business owner within the TBID area wh o has fully paid its assessment at the time of the appointment, and remain fully paid during the term of the membership on the Board. Three of the five Board Members have three-year terms, expiring 2016. The remaining two Board Members have two-year terms, expiring in 2015. The two-year Board Members are Bhikhu Patel of the Rancho Tee Motel, and Sohem Bhakta of the Super 8 Motel. Bhikhu Patel resigned early on, and Sohem Bhakta has only attended one meeting. The By-laws of the TBID state that unexcused absences from at least three meetings shall result in the termination of the membership of the member. Therefore, the TBID Board currently has two vacancies, each with a term that will expire June 30, 2015. Since there is only nine months remaining on the terms for these two positions, the TBID Board suggested Linda Hendy of the Chamber of Commerce, Frank Rimkus of Galaxy Theater, and Diane Helbert of Bru as possible candidates to serve on the TBID Board. Since none of them own a lodging facility, the requirement of a written consent letter from a lodging business owner would be needed before an appointment could take place. The City Council may always appoint a lodging facility owner as long as they have fully paid their TBID assessment at the time of their appointment . Staff will still send out the letter in February 2015, notifying all lodging facilities of the upcoming vacancies for these two positions as of June 30, 2015. The current Board Members are anxious to be a full Board as soon as possible, and are supportive of staff’s recommendations. FISCAL IMPACT: None ALTERNATIVES: 1. Council may appoint two citizens to fill the current vacancies on the TBID Board. 2. Council may direct staff to wait until February 2015, and send out the notifying letters to all lodging facilities asking for nominations. ATTACHMENTS: None