HomeMy WebLinkAboutMinutes 092292 Approved as Submitted 10/27/92
ATASCADERO CITY COUNCIL
SEPTEMBER 22, 1992
MINUTES
The Mayor called the meeting to order at 7:12 p.m. Councilperson
Borgeson led the Pledge of Allegiance.
ROLL CALL:
Present: Councilmembers Bewley, Borgeson, Kudlac, Luna
and Mayor Nimmo
Absent: None
Also Present: Muriel "Micki" Korba, City Treasurer and Lee
Raboin, City Clerk
Staff Present: Ray Windsor, City Manager; Andy Takata,
Assistant City Manager/Director of Community
Services; Henry Engen, Community Development
Director; Art Montandon, City Attorney; Mark
Joseph, Administrative Services Director; Greg
Luke, Public Works Director; Mike McCain,
Acting Fire Chief; Bud McHale, Police Chief
and Lt. Bill Watton, Police Department
PRESENTATION:
Mayor Nimmo presented a plague to outgoing Planning Commissioner
George Highland. On behalf of the Council and community, the Mayor
expressed appreciation and gratitude to Mr. Highland for his many
years of public service to the City of Atascadero.
PROCLAMATION:
Mayor Nimmo read the proclamation for "Fire Prevention Week",
October 4-10, 1992 and presented it to Acting Fire Chief Mike
McCain.
COMMUNITY FORUM:
George Highland, 9725 San Marcos, observed that although the City
was enforcing a sign ordinance, it was also displaying a "sandwich
sign in Sunken Gardens. He asked, "Is the City exempt from its'
own sign ordinance?
Atascadero Avenue residents John Befumo, Gary Matice, Herman
Gonzales and John Freitas individually complained about
CC09/22/92
Page I
drainage/flooding problems on their street and urged resolution.
The Mayor referred the matter to staff and asked for a report back
within ten days.
COUNCIL COMMENTS:
Councilwoman Borgeson mentioned an editorial she had read in the
Daily Press regarding the "Brown Act" and noted that there were two
bills in the Governor' s Office relating to the same matter. She
stated that although there were proposals that certain requirements
of the open meeting law be eliminated, she wanted the Council to
re-affirm that all business would be conducted before the public.
On another matter, Councilwoman Borgeson reported that she had been
appointed to an ad-hoc committee to look into locating a suitable
area for Loaves and Fishes to interview clients and pass out food.
She indicated that she was anxious to receive a status report on
current and proposed room assignments at City Hall.
A. COMMITTEE REPORTS (The following represent ad hoc or standing
committees. Informative status reports were given, as
follows. ) :
1. S.L.O. Council of Governments - Mayor Nimmo reported that
the Executive Committee had met and voted to unanimously
support the realignment of Highway 41 along Alternative
"A-Modified" and have so notified Caltrans. The matter,
he continued, will be presented during an open session
before the Highway Commission next February in Sacra-
mento. The Mayor stated that he will represent the City
at the hearing and Ron DeCarli, Executive Director, will
represent COG. He added that the District 5 Director of
Caltrans has endorsed the "A-Modified" alignment and the
final EIR will incorporate that recommendation as the
proposed route.
2. City/School Committee - Mr. Windsor reported that the
Committee had discussed traffic problems associated with
the opening of the new San Benito Elementary School. He
indicated that the School District had hired a consultant
and recommendations will be available within thirty days.
Also discussed was the status of the two bridges (San
Andres and Monterey Road) , traffic signalization on Morro
Road, bikeways, gang activity in the City and monitoring
of the creeks. He noted that the superintendent had also
indicated that if school district budget problems do not
improve within the next six months, they will probably
have to recommend not to fund their 50% share for the
D.A.R.E. and Community Resource Officers.
CC09/22/92
Page 2
Councilman Luna asked if the traffic impact of the San
Benito School had been addressed in an EIR. Mr. Windsor
reported that the School District was exempt and
therefore not required to conduct an EIR; he confirmed
that no traffic study had ever been done.
3. Economic Round Table - Mark Joseph reported that the
round table had reviewed some of the sub-committee
activities and received an update of the redevelopment
study being currently conducted within the scope of the
round table and staff. In addition, he noted that staff
had provided status reports on the City's budget
situation, commercial-industrial land use and the new
sign ordinance.
4. Homeless Coalition - Councilwoman Borgeson reported that
the coalition would meet Friday, September 25, 1992 at
2:00 p.m. in the Pavilion. She explained that Loaves &
Fishes had agreed to interview applicants for shelter and
mentioned that area churches were offering some housing
on a monthly basis. In addition, she reported that
financial contributions had been made by Supervisor David
Blakely, the Presbyterian Church in Templeton and by the
California Mens' Colony.
B. CONSENT CALENDAR:
The Mayor read the Consent Calendar, as follows:
1. CITY COUNCIL MINUTES - AUGUST 25, 1992
2. TREASURER'S REPORT - AUGUST, 1992
3. FORMAL CONFIRMATION OF COUNCIL APPOINTMENTS TO BUDGET REDUC-
TION PLAN COUNCIL SUBCOMMITTEE
4. PARKING INCENTIVES FOR DOWNTOWN
5. RESOLUTION NO. 92-92 - ENDORSING APPLICATION FOR GRANT FUNDS
FOR CONSTRUCTION OF BIKEWAYS AND BIREWAY FACILITIES
6. RESOLUTION NO. 93-92 - REQUESTING THE COUNTY TO NEGOTIATE A
NEW AMBULANCE AGREEMENT BETWEEN CITIES & COUNTY AND DESIGNAT-
ING THE CITY MANAGERS/FIRE CHIEFS COMMITTEE ON AMBULANCE AS
THE BARGAINING4 GROUP FOR THE CITIES
MOTION: By Councilman Luna, seconded by Councilwoman Borgeson to
adopt the Consent Calendar; motion carried unanimously by
roll call vote.
CC09/22/92
Page 3
C. PUBLIC HEARINGS:
1. PROPOSED PLANNED DEVELOPMENT REZONING TO PERMIT A SMALL LOT
SUBDIVISION OF FOUR PARCELS RANGING FROM 8,588 SQ. FT. TO
10,122 SQ. FT. AT 4650 TRAFFIC WAY (Frank Haas, Landmark
Partnership/Blake Surveys)
A. Ordinance No. 261 - Amending Map 6 of the Official Zoning
Maps by rezoning certain real property at 4650 Traffic
Way from RMF/10 to RMF/10 (PDT) (ZC 92005: Haas)
(Recommend ( 1) motion to waive reading in full and read
by title only, and (2) motion to introduce on first read-
ing by title only)
B. Approval of Tentative Parcel Map 92007
Henry Engen provided the staff report and recommendation to approve
the zone change and tentative parcel map, subject to the Approved
Conditions of Approval. Council questions followed regarding
bikeways, sidewalks and other improvements. Councilwoman Borgeson
commended Gary Kaiser, Assistant Planner, on the staff report.
Public Comments:
Jim Edwards, 2800 E1 Camino Real, indicated that he would rather
see the sidewalk currently proposed for the east side of Traffic
Way be constructed on the west side. He shared concern for the
safety of children forced to cross the street twice.
MOTION: By Councilwoman Borgeson, seconded by Councilman Luna to
waive the reading in full of Ordinance No. 261; motion
carried unanimously.
MOTION: By Councilman Kudlac, seconded by Councilwoman Borgeson
to introduce Ordinance No. 261 on first reading, by title
only; motion carried 5:0 by roll call vote.
MOTION: By Councilman Luna, seconded by Councilman Kudlac to
approve Tentative Parcel Map 92007 based on, and subject
to, the Conditions of Approval; motion carried 5:0 by
roll call vote.
2. ORDINANCE NO. 257 - AMENDING TITLE 3, CHAPTER 3 OF THE ATASCA
DERO MUNICIPAL CODE AS IT RELATES TO THE CITY'S TRANSIENT
OCCUPANCY TAX (Increase from 6% to 9%)
(Recommend ( 1) motion to waive reading in full and read by
title only, and (2) motion to introduce on first reading by
title only)
CC09/22/92
Page 4
Mark Joseph introduced the item. Councilwoman Borgeson mentioned
a letter received dated September 22, 1992 from J.P. Patel,
Owner/Manager of the Best Western Colony Inn (see Exhibit "A" )
asking that a portion of the additional revenue received as a
result of the increase be set aside to promote tourism. The City
Attorney advised that the Council could not designate any portion
of the revenue for a specific project without taking the matter to
the vote of the people. He added, however, that the Council would
not be precluded from, at budget time, allocating funds from the
General Fund for a particular purpose. Councilman Luna pointed out
that a portion of General Fund monies had already been budgeted for
tourism promotion.
Public Comments:
J.P. Patel, Owner/Manager of the Best Western Colony Inn, read his
letter to the City Council (Exhibit "A" ) opposing the tax increase
and requesting that the City allocate a portion of the additional
revenue to generate additional traveler stopovers.
Bill Mazzacane, Executive Director of the Atascadero Chamber of
Commerce, stated that the increase would impact local hotel owners
in a negative way and spoke in support of Mr. Patel' s recommenda-
tions. He suggested further that a tourism committee be formed and
pointed out that many cities have such an advisory body to the
Council.
Russ Kolemaine, Potrero Road resident, also spoke favorably of Mr.
Patel's proposal and asked the Council to give serious consid-
eration to assisting the City's hotels in achieving full occupancy.
Leo Korba, 10905 Santa Ana, criticized the proposal claiming that
it was self-serving.
---End of Public Testimony---
The City Attorney reiterated that the City Council could not
earmark any of the tax for a special purpose without the vote of
the people.
Councilwoman Borgeson spoke in support of the formation of a
tourism promotion committee. Councilman Luna proposed that the
Economic Round Table may already be the appropriate body to address
the concerns. Mayor Nimmo agreed.
MOTION: By Councilman Luna, seconded by Councilwoman Borgeson to
waive the reading in full of Ordinance No. 257; motion
carried unanimously.
MOTION: By Councilwoman Borgeson, seconded by Councilman Luna to
CC09/22/92
Page 5
introduce Ordinance No. 257 on first reading by title
only; motion carried 5:0 by roll call vote.
By consensus, the Council directed the Economic Round Table to
address tourism promotion and concerns raised by Mr. Patel, Mr.
Mazzacane and Mr. Kolemaine.
3. COST RECOVERY RESOLUTIONS
A. Resolution No. 84-92 - Adopting new Fire Department fees
B. Resolution No. 85-92 - Modifying and adopting fees for
miscellaneous and special police services
C. Resolution No. 86-92 - Modifying fees for permits and
other activities undertaken pursuant to building and
construction regulations
D. Resolution No. 87-92 - Setting fare rates for the Dial-A-
Ride Transportation System
Mayor Nimmo made introductory remarks and shared that the proposed
fee increases were an effort to address the present budget deficit
without negatively impacting police and fire services. He added
that the County had imposed more fees and additional cuts by the
State are anticipated for the next fiscal year.
Public Comments:
Whitey Thorpe, 8025 Santa Ynez, opposed fee increases and asserted
that services are already funded by the taxpayers.
Mike Jackson, 5502 Ensenada, proclaimed that raising developer fees
is not the answer and contended that building permits are already
too high. He also voiced disapproval for raising Dial-A-Ride fees.
Frank Bowman, 9975 Old Morro Road East asked the City Attorney if
the City could seek reimbursement of costs for ambulance services.
Mr. Montandon reported that the City was, in fact, actively
pursuing this matter. Mr. Bowman also expressed support for some
of the proposed Fire Department inspection fees and opposition to
others. He asked the Fire Chief if there was a way to recoup for
mutual aide. Mike McCain replied that there was and pointed out
the Uniform Fire Code allows inspection recovery. In addition, the
Fire Chief noted that the fees proposed were for services offered
currently at no charge.
Michael Gove, 5300 Maleza asked if the new fees were temporary.
The Mayor indicated that they were permanent.
---End of Public Testimony---
CC09/22/92
Page 6
The Fire Chief clarified, at Councilman Luna's request, the
controlled burn fee and emphasized that in the past the City has
always absorbed the costs. He indicated that this was simply a
cost recovery fee and would be charged hour-for-hour.
Councilman Luna asked the Community Development Director to define
precisely what building-related fees were being proposed. Mr.
Engen reported that the only fee increase recommended at this time
was for Requests for Information. He added that no other building
or construction fees were being raised.
MOTION: By Councilman Luna, seconded by Councilwoman Borgeson to
approve Resolution No. 84-92 Adopting new Fire Department
fees; motion unanimously carried.
MOTION: By Councilman Luna, seconded by Councilwoman Borgeson to
adopt Resolution No. 85-92 modifying and adopting fees
for miscellaneous and special police services; motion
unanimously carried.
MOTION: By Councilwoman Borgeson, seconded by Councilman Luna to
adopt Resolution No. 86-92 modifying fees for Requests
for Information; motion carried unanimously.
MOTION: By Councilman Kudlac, seconded by Councilman Luna to
adopt Resolution No. 87-92; motion carried 4: 1
(Councilwoman Borgeson voting in opposition) .
4. - D.U.I. COSTS RECOVERY
A. Ordinance No. 259 - Adding Chapter 13 to Title 3 of the
Atascadero Municipal Code approving the implementation of
a State-authorized program to recover costs of responses
to emergencies caused by drunk or reckless drivers and
providing guidelines and procedures therefore, pursuant
to California government Codes 53150, et seq.
(Recommend ( 1) motion to waive reading in full and read
by title only, and (2) motion to introduce on first read-
ing by title only)
S. Resolution No. 90-92 - Establishing fees for costs asso-
ciated with emergency response to incidents involving
intoxicated drivers and reckless drivers
Lt. Bill Watton responded to questions from the Council and noted
that other cities in the County have already implemented the cost-
recovery policy. He emphasized that criminal action must be filed
by the District Attorney before any fees can be assessed and that
a total fine for a single incident will not exceed $1,000. He also
pointed out that there are provisions in the ordinance that give
CC09/22/92
Page 7
the Council authority to waive, cancel or excuse fees on appeal.
The City Attorney clarified that if the accused is exonerated
because of a legal technicality (as opposed to being found innocent
on the charges) , fees cannot be waived.
Councilwoman Borgeson voiced support and reported that MADD
(Mothers Against Drunk Drivers) believed this action would be a
strong deterrent for driving under the influence.
Public Comments:
Whitey Thorpe proclaimed that the Police Department should not have
the authority to take from any citizen a fine that has not gone
through the Court.
---End of Public Testimony---
MOTION: By Councilman Luna, seconded by Councilman Kudlac to
waive the reading in full of Ordinance No. 259 and read
by title only; motion carried unanimously.
MOTION: By Councilwoman Borgeson, seconded by Councilman Luna to
introduce Ordinance No. 259 on first reading, by title
only; motion carried 5:0 by roll call vote.
MOTION: By Councilman Kudlac, seconded by Councilman Luna to
adopt Resolution No. 90-92 establishing a policy for the
financial recovery of costs of emergency responses,
pursuant to Government Code Section 53150; motion carried
5:0 by roll call vote.
5. FALSE ALARMS COSTS RECOVERY
A. Ordinance No. 260 - Adding Article 10 to Title 3, Chapter
5 of the Municipal Code regarding Alarms
(Recommend (1) motion to waive reading in full and read
by title only, and (2) motion to introduce on first read-
ing by title only)
B. Resolution No. 91-92 - Adopting fees for emergency ser-
vices in response to alarms
Lt. Watton reported that the proposed ordinance allowed three false
alarms over a twelve-month period before levying fines.
Councilwoman Borgeson pointed out that by reducing the number of
responses to false alarms, police and fire units would be available
for other calls.
CC09/22/92
Page 8
Public Comments:
Bill Mazzacane shared concern that some incidents may be deemed
false when they are, in fact, not. He stated that proof of
negligence was not addressed in the proposed document.
Marjory Kidwell, 9980 Old Morro Road East, commented that she
believed if an alarm system fails, the owner is responsible for
repairing it. She added that she thought allowing three false
alarms per year without penalty was generous.
---End of Public Testimony---
MOTION: By Councilman Luna, seconded by Councilman Kudlac to
waive the reading in full of Ordinance No. 260 and read
by title only; motion passed unanimously.
MOTION: By Councilman Luna, seconded by Councilman Kudlac to
introduce Ordinance No. 260 on first reading by title
only; motion carried 5:0 by roll call vote.
MOTION: By Councilwoman Borgeson, seconded by Councilman Luna to
adopt Resolution 91-92 adopting fees for emergency
services in response to false alarms; motion carried 5: 0
by roll call vote.
6. BUSINESS LICENSES
A. Ordinance No. 258 - Amending Title 3, Chapter 5 of the
Atascadero Municipal Code as it relates to Business
Licenses
(Recommend (1) motion to waive reading in full and read
by title only, and (2) motion to introduce on first read-
ing by title only)
B. Resolution No. 89-92 - Establishing and revising Business
License fees
Mark Joseph introduced the item and noted that the proposed
ordinance was a comprehensive revision to the existing Business
License Ordinance designed to eliminate redundancies and make it
easier to use. Resolution No. 89-92, he added, modified some fees
and was designed to recover administrative costs. Mr. Joseph
mentioned that the City Attorney had advised that the proposed
increase in the annual fee for out-of-town contractors be left at
the current rate. He then provided an overview of other proposed
revisions.
There were no public comments.
CC09/22/92
Page 9
NOTION: By Councilwoman Borgeson, seconded by Councilman Luna to
waive the reading in full of Ordinance No. 258 and read
by title only; motion carried unanimously.
NOTION: By Councilman Luna, seconded by Councilwoman Borgeson to
introduce Ordinance No. 258 on first reading; motion
carried 5:0 by roll call vote.
NOTION: By Councilman Luna, seconded by Councilwoman Borgeson to
adopt Resolution No. 88-92 revising certain business
license fees and administrative charges, as amended
deleting increase for out-of-town contractors; motion
carried unanimously by roll call vote.
AT 9:16 P.M. , THE MAYOR CALLED A RECESS. THE MEETING RECONVENED AT
9:35 P.M.
D. REGULAR BUSINESS:
1. PRECISE PLAN 92-008
A. Findings for Denial, Blockbuster Video, 7025 El Camino
Real (Pacific Entertainment/Dennis Bell) (Cont'd from
9/8/92)
B. Request for Reconsideration
Mayor Nimmo explained the rule for reconsideration and indicated
that the Council would address that item first. The Mayor reported
that the applicant had offered to fund a project-specific traffic
study in response to concerns shared by the members of the Council
and voiced support for reconsideration. He clarified that neither
he nor Councilman Bewley could make the motion to reconsider the
action to uphold the appeal because they had voted against it.
Councilman Bewley remarked that he would like to see
reconsideration be given and an opportunity afforded to address
traffic concerns.
Individual Council comments followed. Councilman Kudlac indicated
that he still had some concerns regarding the lack of a twenty-foot
setback and asked staff if there was indeed a setback requirement.
Councilman Luna noted that he was satisfied with the Findings for
Denial and shared that his main concern was for the projected low
level of service for the area in coming years. He stated that the
Council could not design the project and suggested that the
applicant go back and redesign it. Councilwoman Borgeson pointed
out that the present driveway leading in and out of the shopping
center had not been redesigned and reiterated concern regarding the
element of safety at that location.
CC09/22/92
Page 10
Councilman Bewley pointed out that the applicant had done what he
had been asked to do; staff had recommended approval and the
Planning Commission had approved the project seven to zero. He
proclaimed that the City Council should not regulate business and
favored reconsideration.
Public Comments:
Robert Fisher, representing the applicant Pacific Entertainment,
implored the Council to reject the Findings for Denial, grant
reconsideration and give the applicants the opportunity to conduct
a focussed traffic study for the proposed project.
Tim McCutheon, local businessman, urged reconsideration and asked
the Council to welcome new business.
Bill Mazzacane, Executive Director of the Atascadero Chamber of
Commerce, spoke in support of reconsidering the matter and allowing
additional information to be brought forward so that concerns could
be adequately addressed. In addition, he shared a letter from the
Chamber Board of Directors (see Exhibit "B" ) voicing distress over
the Council' s decision on the project.
Michael Jackson, Whitey Thorpe, Frank Henderson (local builder) and
BIA Manager Eric Michielssen also voiced supported for reconsid-
eration.
Jerry Taft, appellant, urged the Council not to reconsider and
asked them to approve the Findings for Denial.
---End of Public Testimony---
(No motion was made for reconsideration) .
MOTION: By Councilman Luna, seconded by Councilwoman Borgeson to
adopt the Findings for Denial of Precise Plan 92-008;
motion carried 3:2 (Councilman Bewley and Mayor Nimmo
voting in opposition) .
2. SHORT-TERM FINANCING OPTIONS; ROLES OF FINANCE DIRECTOR/TREAS-
URER
Mark Joseph provided the staff report and requested that direction
be given regarding: (1) whether or not to proceed with a short-term
note with Bank of America and (2) whether or not Council wished to
reactivate the Finance Committee.
City Treasurer Micki Korba indicated that while she still had some
concerns regarding tapping into reserves held in the Orange County
Investment Pool, she no longer could recommend pursuing a short-
CC09/22/92
Page 11
term loan. She stated that the concept should have been initiated
months ago and added that the proposals received were not complete
and competitive.
Mr. Joseph suggested that Council may want to defer the matter for
this fiscal year and attempt to pool with other cities and/or the
County next Spring. No action taken.
By consensus, Council agreed to reactivate the Finance
Committee capacity of the current Risk Review
Committee/Finance Committee and to meet at the call of the
City Treasurer or City Manager.
3. ORDINANCE NO. 255 - REPEALING SECTION 9-4.130 THROUGH SECTION
9-4.136 AND SECTION 9-7.109 OF TITLE 9 AND ADDING CHAPTER 15
TO TITLE 9 OF THE ATASCADERO MUNICIPAL CODE REGARDING SIGNS
(Zone Change 92-006)
(Recommend (1) motion to adopt on second reading by title
only)
MOTION: By Councilman Kudlac, seconded by Councilman Luna to
adopt Ordinance No. 255 on second reading by title only;
motion carried 5:0.
4. ADMINISTRATIVE USE PERMITS
A. Ordinance No. 256 - Amending the Zoning Ordinance text to
add a procedure for Administrative Use Permits (Zone
Change 92-007; City of Atascadero)
(Recommend (1) motion to adopt on second reading by title
only)
MOTION: By Councilman Luna, seconded by Councilman Bewley to
adopt Ordinance No. 256 on second reading by title only;
motion carried 5:0.
B. Resolution No. 88-92 —Amending Planning Division fees by
establishing fees for Administrative Use Permits
MOTION: By Councilwoman Borgeson, seconded by Councilman Luna to
adopt Resolution No. 88-92; motion carried unanimously by
roll call vote.
5. COLONY DAYS INSURANCE
The City Manager indicated that no action was required.
CC09/22/92
Page 12
E. INDIVIDUAL DETERMINATION AND/OR ACTION:
1. City Council
Mayor Nimmo announced that the City Council would meet in a Closed
Session on Thursday, October 8, 1992 at 6:00 p.m. for the purpose
of discussions relating to personnel negotiations and budget
reductions.
Brief discussion ensued regarding the use of "sandwich" style signs
in Sunken Gardens. The City Manager acknowledged that the
Community Services Department had indeed used sandwich board signs,
clarified that the new sign ordinance had not yet gone into effect,
reported that the City was not exempt from following its' own sign
ordinance and assured the public and Council that this kind of
signage would not be used in the future.
2. City Treasurer
Micki Korba asked Council to set a date for the Finance Committee
to meet. The date chosen was Wednesday, October 7, 1992 at 4:00
p.m. in the City Manager' s office.
AT 10:43 P.M, THE CITY COUNCIL ADJOURNED TO TUESDAY, SEPTEMBER 29,
1992, 7:00 P.M. FOR A SPECIAL JOINT MEETING WITH THE CITY PLANNING
COMMISSION TO RECEIVE A PRESENTATION ON THE DRAFT CIRCULATION
ELEMENT.
MINUTE CORDED PREPARED BY:
LEE RAJBOIN, City lerk
Attachments: Exhibit "A" - (Patel/Colony Inn)
Exhibit" B" - (Chamber of Commerce)
CC09/22/92
Page 13
CC9/22/92 EXHIBIT "A" - Pg. 1
RECEIV '
CITY ".0
.7.
Atascadero City Council
c/o Hon.Robert Nimmo, Mayor
6500 Palma Avenue
Atascadero,CA 93422 But Wakm
Colo"Ina
3600 Ea Cama m&d
September 21, 1992 Atasa&►e,CA 93422
805-466-4449
RE: City Council September 22 Agenda Item C.2. Fax#805-466-2119
proposed Ordinance No. 257 amending Title 3-3., Municipal Code &S1 Wakm I=
relating to Transient Occupancy Tax increase from 6%to 9%) 251 ri o,O r7 s1.
Ontario,OR 97914
503-889-2600
Sir: Fax#303.889-2259
As one major source for this portion of City revenue, I have discuss- BW Wuura
ed this proposal with other motel/hotel owners operating in Atascadero. I x-,a8 city 1-
find that, however much the City's need for additional revenue sources, and 1190 Bram
however diligent the Council's efforts to make sure the burden for these ruig Cay,CA,939-V
are equitably shared, the increase we would be required to collect on be- 40$-x733
q yQ Fox#408-385-0714
half of the City too closely approaches the limits that our businesses can
sustain and remain viable. Ma W��
As you are aware, the existing 245 motel/hotel rooms in Atascadero 4W s�6M
are currently generating about $100,000 annually for the City. Regretfully, KknzaM Fats,OR 97603
Atascadero does not offer travelers sufficient attractions for qualify as a ��-W-1200 2�2g
travel destination in it's own right. Therefore, our properties must effect-
ively compete against better-promoted properties in Paso Robles, San Luis
Obispo and even Morro Bay for overnight highway travelers. For mavatiolu
However, since the recession has depressed occupancy rates below ct 00428-12344
50% here, the resulting increase passed along to visitors will, ironically,
have a negative effect on our gross income, and correspondingly, TOT pay-
ments to the City. Also, in addition to reducing this revenu , further reduc-
tion in occupancy rates effects our ability to hire and provide employment
for other tax-paying Atascadero residents.
Therefore, for the City to increase its' revenue from this source, we
feel the City should use a part of this additional revenue to help shield
Atascadero motel/hotel properties from these negative effects. We believe,
based on our combined experience in the hospitality industry, that investing
a portion of any bed tax increase in a program to generate additional trav-
eler stopovers, is a key to increasing occupancy rates and thereby, gross
TOT revenues; as well as sales tax revenues from traveler expenditures at
restaurants, gas stations and other local businesses.
Such a program, funded through the General Fund in an annual
amount equal to at least 25 % of such gross bed tax revenue, w could
conservatively generate in the neighborhood of from $8 to $9..,new dollars
from outside our existing economy... for every dollar so invested
This will have little or no additional impact on existing city services
as has been amply demonstrated by the State Dept.of Commerce Tourism
(Continued)
. o�.u ✓� u� ,rrtr, t, P.O. Box 20083 Sats Jose, CA 95160 408.997.1797
CC9/22/92 EXHIBIT "A" - Pg. 2
Atascadero City Council
September 21, 1992
Page Two
Office, Hawaii Convention&Visitors Bureau and many other agencies.
In fact, we believe an increase in the Transient Occupancy Tax from 6% to
10%could be justified and sustained, assuming
(a) the use of such funds was budgeted and administered by an advisory
panel representing local hospitality and restaurant business owners, the Atascadero
Chamber of Commerce, representatives of the City, etc, and
(b) funds set aside in this way are used, in addition to such other existing
available funds, exclusively for development and promotion of Atascadero as a
visitor's stop.
Effectively promoting Atascadero as a stopover place offering accomoda-
tions, meals, services and such visitor attractions as we do have in the community, ie:
Chalk Mountain Golf Course, Heilman Regional Park, Atascadero Lake Park &
Pavilion, and the Charles Paddock Zoo, could be a boon to all retail businesses in
Atascadero, resulting in still greater additional revenue for the City from other
sources to everyone's benefit.
Yours Trul
J. P. Patel
Manager/Owner
cc: Ray Windsor
Mark Joseph
Chamber of Commerce
k
>t
CC9/22/92 EXHIBIT "A" - pg. 3
EXHIBIT;
Current Atascadero City revenues from Transient Occupancy Tax (TOT)
$100,000/year @ 6%x 50% occupancy(245 rooms)
City staff estimate. 9%TOT:
$150,000/year @ 9%x 50% occupancy(245 rooms) = $50,000/yr increase
Industry estimate. 9%TOT:
$120,000/year @ 9%x 40% occupancy(245 rooms) = $20,000/yr increase
$135,000/year @ 9%x 45%occupancy (245 rooms) = $35,000/yr increase
Industry estimate. 1017y TOT,w f tourism promotion:
2%Promo budget 8%City revenue
50% occ. $ 33,333/yr $ 133,333/yr = $33,333/yr increase
60% occ. 40,000/yr 160,000/yr = 60,000/yr increase
70% occ. 46,667/yr 186,667/yr = 86,667/yr increase
80% occ. 53,333/yr 213,333/yr = 113,333/yr increase
90%occ. 60,000/yr 240,000/yr = 140,000/yr increase
CC9/22/92 EXHIBIT "A" - Pg. 1
fascaferoc kon et-Of COMMOM61
6550 EL CAMINO REAL ATASCADERO, CALIFORNIA 93422
TELEPHONE: (805) 466-2044
September 22, 1992
Mayor Bob Nimmo
City of Atascadero
6500 Palma Ave.
Atascadero, CA 93422
Dear Mr. Nimmo,
The Board of Directors of the Atascadero Chamber of Commerce have
asked me to write to you and the council to express our concern over the
council's recent decision regarding Blockbuster Video.
Are concern isn't on behalf of Blockbuster, but rather the larger issue of
city and council policy. We have three areas of concern that are
expressed below:
1 . It is a time consuming and often quite expensive undertaking for a
business to comply with the various planning rules and regulations.
It is our understanding, that Blockbuster indeed did follow the
prescribed procedures. That both staff and the planning commission
approved the project. When the city council puts additional road
blocks in the way of a development such as this, its sends a signal
to all future businesses. They aren't anxious to pay the costs for a
game with ill defined rules.
2. The stated reason for the denial is apparently traffic.` To our
knowledge no official traffic study has been completed to support
such a judgement. Cal Trans didn't raise that as an issue in their
Hiway 41 studies. At best it is a guess on 'the real traffic impact.
Yet we hear, some who are opposed to this project, favor a fine
restaurant on that site. That would obviously generate as much if
not more traffic. is the council going to be consistent with its
ruling? if is is, then.that cornet of the property, or any other
development in that center is out.
CC9/22/92 EXHIBIT "B" - Pg. 2
3. Thirdly, is appears to our board, that the council is trying to make
market decisions by determining what businesses will go where,
even though they comply with thoroughe zoning review process.ments. Our general
To undermine that
plan has gone through a 9hev
plan and the zoning that implements it, reduces planning to the
current whim of the council. We're not sure that is good
government. It is certainly not a level playing field for the
businesses.
Again, it is not our intent to comment on the argument between the two
businesses involved. However, we are genuinely ,concerned that if this
action becomes common place in dealing with projects, we will not even
be able to entice the businesses we claim we want to come to town. We
urge careful reconsideration of this precedent setting decision.
Since[ely,
Rayei
o son
Pred nt