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HomeMy WebLinkAboutMinutes 121394 Approved as Submitted Meeting Date: 01/24/95 ATASCADERO CITY COUNCIL DECEMBER 13, 1994 MINUTES The Mayor called the meeting to order at 7:00 p.m. Councilperson Johnson led the Pledge of Allegiance. ROLL CALL: Present: Councilmembers Carden, Highland, Johnson, Luna and Mayor Bewley Absent: None Also Present: Muriel "Micki" Korba, City Treasurer and Lee Price, City Clerk Staff Present: Andy Takata, City Manager; Henry Engen, Community Development Director; Art Montandon, City Attorney; Brady Cherry, Director of Community Services; Brad Whitty, Finance Director; Bud McHale, Police Chief; Steve Sylvester, City Engineer and John Neil, Assistant City Engineer COMMUNITY FORUM: Senator Jack O'Connell introduced himself and noted that he would soon open a district office in San Luis Obispo. He indicated that he was looking forward to working with the City. Ray Jansen, 6655 Country Club Drive, appealed for a deeper sense of unity and a strong commitment to honesty and other enduring values. Michael Kovacs, Mesa Road resident, wanted to address the Orange County Investment Pool crisis. The Mayor asked him to hold his comments until the agenda item is addressed (Item #C-1). Terrill Graham, 6205 Conejo Road, argued that the CC 12/13/94 Page 1 Mayor was violating the Brown Act by not letting Mr. Kovacs speak. The City Clerk and City Attorney clarified public speaking rules. Rush Kolemaine, Potrero Road resident, asked that only residents of the City be allowed to address the Council under Community Forum. Don Saueressig, 10735 San Marcos Road, urged the removal of the Carlton Hotel sign and encouraged business owners in the downtown to paint their buildings. Terrill Graham asserted that the Carlton Hotel sign is of historic significance and encouraged rehabilitation rather than removal. A. CONSENT CALENDAR: 1. CITY COUNCIL MINUTES - November 8, 1994 2. CITY COUNCIL MINUTES - November 29, 1994 3. APPROVAL OF WARRANTS FOR THE MONTH OF NOVEMBER, 1994 4. TENTATIVE PARCEL MAP 07-91, 9210 ATASCADERO AVE. - Acceptance of final parcel map to divide an existing parcel of approximately one acre into two parcels, each having a net area of approximately 21 ,500 sq. ft. (Plotkin) 5. RESOLUTION NO. 119-94 - Authorizing the extension of a lease with the SLO County Genealogical Society for a library in the City Administration Building 6. RESOLUTION NO. 120-94 - Approving application for grant funds under the used oil recycling block grant program B. PUBLIC HEARINGS: 1. ECONOMIC DEVELOPMENT ELEMENT - Presentation by Greg Koert of Draft General Plan Element and recommendation of the Economic Round Table to refer the draft plan to the Planning Commission for hearing Henry Engen introduced consultant Greg Koert of the firm Palmer Koert who presented an overview of recommendations set forth in the Draft Economic Element. Brief Council questions followed. CC 12/13/94 Page 2 MEETING AGENDA » DATE 17 L13L34lTEM i B-1 4067-A SUMMARY REPORT OF THE ECONOMIC ROUNDTABLE TO: CITY COUNCIL, OF THE CITY OF ATASCADERO RE: SUGGESTED CHANGES TO THE ECONOMIC DEVELOPMENT ELEMENT PROPOSED BY THE PALMER KOERT REPORT Honorable Mayor and Members of the City Council: The Economic Roundtable at a previous meeting had an opportunity to review the proposed Palmer Koert Report addressing a proposed economic development element for the Atascadero General-Plan. The comments gleaned from that meeting are summarized-herein. By way of introduction there is intentionally no direct criticism or argument with the various proposed goals set forth in the report. We acknowledge that these goals will be subjected to rather lengthy discussion as a result of public hearing, and it is not my intent to produce a chilling effect by this report on such a discussion. The primary concern of the Economic Roundtable in reviewing the eleven pages constituting the "Economic Development Element" addresses the manner in which the proposals are phrased. This might seem at first blush to be a r preoccupation with semantics, but in fact the phraseology is all-important in that it should be consistent with language found in the other elements contained within the General Plan. Specifically, language should not be such as to allow the economic element of the General Plan to be treated as a "guide" as opposed to "policy". It should be an element that clearly commits the City to the public policies in this area, which will be upheld by the City with clarity and consistency unless and until the Economic Element, once adopted, is modified by subsequent amendment. The language of the Element should clearly commit the City to a course of action with sufficient clarity so that it cannot, in the future, be ignored by future councils or interpretations by staff. By way of example, the.introductory paragraph under A ("Basic Community Goals") presently reads "Atascadero should act to promote the economic health and vitality of its businesses to ensure the creation of jobs, the promotion of entrepreneurial efforts, and to generate adequate tax revenue for public services. Toward that end, the following goals are basic to the maintenance of the overall quality of the local economy:" Our proposed revision would be as follows. "The City Atascadero shall act to promote the economic health and vitality of its businesses to ensure the creation of jobs, the promotion of entrepreneurial efforts, and to generate 2 adequate tax revenue for public services. Towards that end, the City hereby establishes the following goals that are deemed essential to the maintenance of the local economy: Secondly, paragraph B presently reading "actions the City can take to promote economic development goals" appears to be a statement most inappropriate for general plan element. We suggest it be replaced with wording such as "Municipal policies to promote and sustain economic development". Rather than adopt the present language of the last paragraph of section B, that paragraph should state "The following policies are hereby adopted by the City Council of Atascadero as part of the economic development element of the general plan to improve the local economy`" - What the City expressly endorses should be set forth without equivocation and if there is discomfort with the commitment to a particular policy, it should be discussed and refined until appropriate language is agreed upon as opposed to retreating to "weasel words that totally confuse the issue as to what policy really emerged as the result of the adoption of the Economic Element. A review of the Land Use; Circulation and Housing Elements of our General Plan shows that the policy of the City in those areas is set forth clearly 3 with the use of few, if any, "weasel words". No less should result from the wording in the Economic Element. Respec ROBERT LILLEY Co-Chair, Atascadero Economic Roundtable 4 R. S. Kolemclne /P.o.sox 1990/Atascadero/cA 93423-1990/Phone/mx op.teas)A O city council, City of Atasacadero DEC 1 2 10 6500 Palma Atascadero CA 93422 CITY OF ATASCADERO 08 December 94 CITY CLERK'S OFFICE SUBJ:Economic Development Element(IDE)/Palmer Koert Report(31 Oct 94) Gentlemen: As a follow-up to my memorandum addressed to the Economic Round Table dtd 16 Nov 94 regarding the above, I am here submitting for Council and Planning Commission consideration a summary of recommended changes drafted by my- self This memorandum incorporates 27 specific suggested language changes in the draft Economic Development Element itself that I feel would help to improve that document and better meet the needs of the City in this area.These changes include those which, in my professional opinion,would answer the three recommendations previously submitted to the ERT and the Council.. The additional recommendations covering the IDE include a number that might be considered minor, or technical editing changes. In this document, all wording changes appear in Bold Face type, deletions are not indicated here. Instructions and notes appear in italic typeface. In general, I would like to applaud the efforts of the City Council and its individual members to meet the city's need for this additional element in our General Plan. While there are some substantive issues that will need to be resolved before this is adopted by the City Council,I am heartened to observe progress of any kind in the development of this badly-needed document Your personal questions and/or comments to me personally will be welcome. r� , - rolemae7 � 6 ENCL cc: Economic Round Table Atascadero Chamber of Commerce Atascadero Planning Commission Concerned citizens. v City of AtascaderoMalmer Koert Report (October 31, 1994) ECONOMIC DEVELOPMENT ELEMENT z` Page# Sect TWOCA nge 1. A. (Listed Goals): Goals listed should be designated by letter identifier, viz:(x) for simplified future identification. 1. A. Goal(c)Full text should read: "Support for the development of industrial areas that lead to the recruitment or development of business that will provide the community with a base of moderate and high salary career-oriented jobs. These businesses may include, but not be limited to,furniture, cabinet, wood product manufac- turing, publishing and printing, small scale high-tech and emerging technology and other companies as well as professional(particularly medical)services businesses. " 2. B. (Par.2,first line)should read. "Atascadero will take action to protect it's economic base and to... 2. B(1) Full text should read „(a)Duties This organization shall replace the current Economic Round Table,and shall be legally organized as a redevelopment organization with all powers appropriate thereto,including but not limited to the power to exercise the City's powers of eminent domain and issuance of development and redevelopment bonds,as determined necessary by the City Council Commissioners or directors will be appointed by the City Council and will meet monthly to deliberate progress in meeting economic development goals and to formulate strategies,or necessary modifications or updates,and to direct staff activities.This organization shall be responsible for an annual report summarizing the state of the local economy. - (b)Staff This organization shall be staffed by an economic development professional or executive director knowledgeable of the City of Atascadero and economic development activities. " 2. B(2)(a) DEVELOPMENT OF APRO-BUSINESS COMMUNITY IMAGE The following text in this sub-section should be listed as a new sub-section B(1)(c) following above. "This organization will be responsible for maintaining and publishing information for businesses (especially new businesses or start-ups)on accessible local resources to support their success,and for maintaining data on commercial activities useful for economic development purposes." 2. B(2)(a) Re-orientation of the business license office. Text should read in full: The business license office is the one arm of the City that has annual interaction with all businesses in the community and especially new businesses.The office should be re-focussed to obtain data required for use by the economic development agency and interact with businesses in a positive customer friendly manner. 3. B(3) Title should read. "ADOPTION OF DEVELOPMENT DISTRICTS TO PROMOTE COMMERCIAL AND INDUSTRIAL AREAS 4. C. Introductory paragraph should read in full: "The City of Atascadero will promote specific economic development projects that should have an immediate benefit to the City as sales tax generators.These projects,when approved by the City Council,shall have the highest economic development priority and support.The City may take the following actions to promote the development of these projects." {Continue SUN&IARY OF RECOM AENDED CHANGES 13 Dec 94 Page Two Peaw sea rmWaWw. 4. C(1) SiTE SELECTION Text in full should read- -rhe ead"The City should identify sites for those projects the community feels best suited to their development. Within the context of available resources,and in partnership with property owners,qualified developers and builders,the City shall support the preparation of proposed sites for immediate development for the purposes specified by providing as much assistance as fiscally possible for drafting site plans,preparing environmental studies,expediting necessary infrastructure improvements and needed utilities,and recruiting supplier businesses and supportive services." 4. C(2) RECRUITMENT,first line,should read.• "The City's economic development organization and staff shall..." 4. D OVERALL SUPPORT FOR RETAIL AND SERVICE COMMERCIAL BUSINESSES. first line, should read.• "The City shall..." 5. D(1) 1.RECRUITMENT,first line,should read. The City's economic development organization and staff shall..." 5. D(1)(b) Independent Retailers Full text should read "This recruitment effort should target successful regional independent retailers that might be interested in locating a second or additional store in Atascadero.The recruitment effort should be able to assist in obtaining grants,start-up loans,rental write-downs or other incentives to targeted businesses." 5. D(2) PREPARE A RETAIL AND SERVICE COMMERCIAL DIRECTORY MAP..OF ATASCADERO Omit entirely from General Plan Element ?his a free enterprise project currently being undertaken by the Atascadero Chamber of Commerce. 5. D(4) DISCOURAGE DEVELOPMENT OF ADDITIONAL RETAIL ACREAGE should be re-titled to read.• "ENCOURAGE IN-FILL OF EXISTING RETAIL ACREAGE" 5. D(4) Full text should read: "Within the boundaries of approved commercial zones,the City shall encourage in-fill,redevel- opment, and recruitment of new stores to fill vacancies and to form clusters of synergistic retail businesses." 6. E(3) SUPPORT THE DEVELOPMENT OF THE CARLETON HOTEL should be re-titled to read: "SUPPORT THE DEVELOPMENT OF THE CARLTON SOUARE' 6. E(3) Full text should read.- "Continue ead"Continue to provide support for the development of the Carlton Square for use as a restaurant,specialty retail stores,art galleries,and second floor residential occupancy. " 7. F. SUPPORT THE DEVELOPMENT OF All BUSINESaMFESSIONAL PARK title should read. "SUPPORT THE DEVELOPMENT OF BUSINESSIPROFESSIONAL INDUSTRIAL PARKS" 7. F. Full text should read "The City shall actively support the development of all industrially-zoned land in the city,including a modem busmess/industrial panic,emphasizing the recruitment of high tech and emerging tech businesses.Efforts should be made to act in partnership with Cal Poly research programs and Cuesta College and similar training programs to promote the development of commercial applications of basic research as businesses in this park. Other available industrially-zoned land shall be supported for the development of light manufacturing,wambousiag,transportation-related and business incubator uses." (Continued) { SUMMARY OF RECOMMENDED CHANGES 13 Dec 94 Page Three aspen sea TMeChanys 7. F(1) REMOVE RETAIL USES AS ALLOWABLE USES IN THE INDUSTRIAL PARK ZONE This presents a major City economic policy quandary: (a)Should the remaining unsuccessful 22-acre "Industrial Park"be developed as such with retail uses removed T or, (b)should an industrial park be designated at another suitable location(such as a portion of the Rochelle property,properties adjoining the SPRR line further south, or elsewhere) without retail uses, and the existing 22 acres be re zoned as a viable major commercial development. T or (c)should this question be better referred to the recommended economic development agency for professional determination T 8. [Map] Map(s), if included should depict boundaries of all identifiable industrial zones 8. F(2)(c) Full text should read "Negotiate an option price with the respective owners of properties in areas zoned for industrial development.(This action would require the establishment of a redevelopment district..The City's economic development agency and a specifically formed redevelopment agency would then re-package land for sale to potential new industrial businesses and industrial developers.)" 9. F(5) CONSIDER DEVELOPING A HIGH TECH BUSINESS INCUBATOR FACILITY should be retitled to read. ASSIST IN DEVELOPMENT OF A BUSINESS INCUBATOR FACILITY 9. F(5) Full text should read "This project might be a joint effort with developers and Cal Poly University to promote university research-oriented commercial business applications. " 9. G(2) UTILITY TAX This sub-section should be deleted in full.As a substitute, the following title and text should be added.•: '"TRANSIENT OCCUPANCY TAX At this time,the City of Atascadero invests the lowest percentage of these revenues collected from overnight visitors for the promotion of further tourism business of any city in the county.In cooperation with the Chamber of Commerce,other local agencies and private sector beneficiaries of increased visitor revenue,a greater percentage,if not all,of these funds should be devoted exclusively to this purpose in order to generate both greater TOT revenues and concommitant sales and use tax revenues in the short term." Prepared by R S.Kolemaine 05 Dec 94 Public Comments: Rush Kolemaine complimented the consultant for his efforts relating to the technical report. He encouraged the City Council to act on recommendations previously forwarded. Sid Bowen, 5550 Cascabel Road, encouraged additional study on how the plan will impact other elements of the General Plan. He also suggested that goals should be more specific and that consumers' input be solicited to determine actual needs. Eric Michielssen, President of Chamber of Commerce, remarked that the Board of Directors has not come to any concrete conclusions but are currently studying the draft's key points. He noted that there is support for some of the recommendations, specifically regarding economic development and tourism expansion. Lindsey Hampton, 8402 Alta Vista, asked the consultant to clarify the study's recommendation to locate a large retail store, like "Target", near the outlet center. Greg Koert explained that clustering retail uses in this manner will promote comparative shopping, draw shoppers from outside the community and offer a greater sales tax return. Livia Kellerman, Honda Avenue resident, asked what effect a discount store like "Target" would have on the downtown. Mr. Koert reported that he did not expect that it would help or hurt the downtown. He noted that people will shop downtown if entertainment is provided. Mrs. Kellerman asked if the City was aggressively recruiting for a restaurant in the downtown. Andy Takata noted that staff has been active in this regard and working with architect Frank Henderson in the rehabilitation of the Carlton Hotel for this attraction. Mrs. Kellerman proposed that the City develop a theme or character for the downtown. Terrill Graham proposed that instead of conducting another study, the City Council begin to rely upon themselves, local businessman and citizens to fulfill the economic goals and dreams of the community. ---End of Public Testimony--- Councilman Johnson, Council representative to the Economic Round Table, submitted the Summary Report of the Economic Round Table (see Exhibit "A"). He commented that Rush Kolemaine had offered some good administrative suggestions (like numbering the basic community goals on the first page) in his letter to the City Council dated December 8, 1994 (see Exhibit "B") and suggested that the Planning Commission review them. In addition, he made the following observations and CC 12/13/94 Page 3 recommendations: 1 . Referring to "bubble" 3 of the basic community goals, proposed that language be expanded to allow for a variety of uses for industrial areas, as supported in the Technical Document. 2. Requested clear definitions for "Downtown Industrial Park Areas" and "Business Park Site". 3. Pointing to C-1 . Site Selection on page X-4 of the document, commented that the second sentence regarding a location for a discount department store was too restrictive and suggested that it be re-worded, as follows: "...located on a site best suited for development". 4. Referring to page X-5, Item #2, suggested that should a retail space directory be developed it be categorized by use. This would clarify what kinds of uses are appropriate and reasonable for vacant commercial space. Regarding Item #4 on the same page, pointed out that some vacant retail space is not rentable and commented that he supports the need to in-fill existing retail space, the space must be adequate and useable. He also suggested that the closing policy statement in this section be re-worded to encourage in-fill rather than discourage development of additional retail acreage without specifying that it should only occur between the two bookends of the downtown. 5. Regarding Section F. on page X-7, cautioned against limiting the use potential for acreage along north El Camino Real and objected to verbiage in F-1 . He remarked that some industrial uses serve retail as well. 6. Recommended that Section G. (page X-9) be moved to the Appendix rather than being included as a part of the Element. Councilman Luna indicated that he had no objection to numbering the basic community goals as long as it is qualified that they are not ranked in order of priority. He also cautioned against recommendations made to replace all "shoulds" with "shalls" stressing that these are hard economic times and mandates will encumber the flexibility of the Council to make good fiscal decisions. Mayor Bewley remarked that he favors stronger language in the document and agrees with some of the recommendations set forth in Mr. Kolemaine's letter. Councilman Carden proposed that the Element include a recommendation to research and seek out the kinds of businesses that support local manufacturing companies that CC 12/13/94 Page 4 have an international market (i.e., Weatherby). Councilman Johnson concurred. The City Council, by consensus, agreed to forward the Economic Element along with recommendations made by the Council, to the Planning Commission for public hearing. 2. TENTATIVE PARCEL MAP 94-003, 8505 GRAVES CREEK RD. - Appeal of Planning Commission-imposed Conditions of Approval on proposed division of 6.0-acre parcel into two lots of approximately 3.0 acres each (Laval lee/WiIso n) The Mayor noted that the appellant had requested a continuance. Council consented to continuing the matter until the first regular meeting in January, 1995. C. REGULAR BUSINESS: 1. DISCUSSION ON ORANGE COUNTY FUND: Mayor Bewley clarified that the public will be allowed to speak and that there will be no discussion of a utility tax. Andy Takata summarized the Orange County Investment Pool (OCIP) situation and provided an account of what funds the City has in the pool. He outlined specific actions taken by staff in response and observed that the ultimate impact is unclear. The City Manager confirmed that there is no recommendation for utility tax, or any other tax, at this time. Councilman Highland read a prepared statement regarding the situation (see Exhibit A). City Treasurer Micki Korba reported that the Orange County Pool was rated Triple A and commented that there is no safer investment. She indicated that the first requirement for investments to ensure safety was observed and added that the State Fund also invests in reverse purchase agreements. She noted that she had consulted with the Finance Director and they had considered, before the crisis, transferring funds from Orange County to State Fund. Mrs. Korba asserted that as the elected treasurer she answers to the public and makes every effort to acquaint the Council about the City's investments. Councilman Johnson observed that there seems to have been a failure to disclose vital investment information on the part of Orange County. He commented that it is vital that the Council address inadequate funds and revenues in the City and added that it is unfortunate that the City has had to "live" on investment income. Councilman CC 12/13/94 Page 5 Johnson indicated that he would present some specific recommendations following public testimony. Councilman Luna pointed out that there is a treasurer's report on the Council agenda each month and noted that it is public information. He also mentioned that the Treasurer was re-elected in June with 90% of the vote and there was no concern at that time about the investment policy. Investment authority, he stated, is determined by statute and the City's Municipal Code requires the City Treasurer to secure the maximum rate of return on invested City funds. He spoke in favor of continued efforts to cultivate economic development of the community and indicated that he hopes that there will be a detailed accounting for the public to review within a few months. Mayor Bewley noted that he had been confident the money was secure and explained that the Council takes responsibility. He encouraged all to avoid pointing fingers and instead to learn from the situation and move forward. Public Comments: Rush Kolemaine, Potrero Road resident, stated that he agreed with Councilman Highland's comments and urged the City Council to construct a safer financial investment policy for the City. Don Saueressig, 8735 San Marcos, asked the City Council to present to the public answers to questions like: Does the Treasurer have expertise in the area of investments? Did the Council review the investment policy and if so what input was made? Does the Council receive periodic reports from the City Treasurer? Was a memo to the City Manager from former Finance Director, Mark Joseph, brought to the attention of the Council at the time of its' writing? Why wasn't professional investment advice sought? He suggested that the City's investment policy be amended. The City Treasurer responded to the speaker's questions and Councilman Luna read a portion of Section 2-7.05 of the Atascadero Municipal Code relating to investments. In addition, Councilman Luna pointed out that the investment practices are reviewed annually by the financial auditor. Michael Kovacs, Mesa Road resident, criticized the investment and asserted that it had not been made in the best interest of the public. Marvin Wilson, 9185 Santa Margarita Road, suggested that a committee be formed to guide and provide input to the Treasurer. Bob Johnson, 9469 Jornado Lane #4, commented that the Treasurer followed the CC 12/13/94 Page 6 investment policy approved by the Council and encouraged City officials to wait until all questions have been answered before making any changes in the policy. He asked the Council to call for an independent investigation into the situation and then act responsively. Sid Bowen, 5550 Cascabel, advocated proactive solutions and suggested that there may be some expertise in the community that can provide guidance. Rush Kolemaine, speaking again, asked if the City could bankrupt. Andy Takata assured the public that staff feels confident the City will remain financially stable. ---End of Public Testimony--- Individual Council comments followed. Councilman Carden expressed support for forming an investment review committee composed of members of the banking community. He was not in favor of contracting for independent investigation; he noted that the government, state government and other regulating agencies already perform this function. What is needed, he concluded, is that the City learn a lesson from the investigations that take place, look more closely (and on a continuing basis) at the City's investment policy and regularly scrutinize investment reports. Councilman Johnson recommended that staff be directed to re-draft the investment policy annually (even though it is not now required by State law to do so), examine high risk investments and establish what kinds of investments are not appropriate. He suggested that a regular investment review process be established, at least annually, and at any major change in investment strategy. The review, he added, should be done by an investment professional(s). In addition, he proposed that quarterly reports from the investment organization should be required and that a policy be established that if quarterly reports are not submitted, then the City will restrict investments with that organization. He also stated that he would like the Council to consider amending the Municipal Code relative to investments by adding a statement calling for fiduciary responsibility and prudent investments. Councilman Luna asked the City Attorney if it was proper to, at this time, discuss making changes to either the Municipal Code or to the investment policy resolution. Art Montandon advised that it is permissible for the Council to provide staff with input and direction to come back with proposed revisions and recommendations in the appropriate form. Councilman Highland commented that the investment policy resolution should be adopted annually in July or August so that it will coincide with the beginning of the fiscal year. CC 12/13/94 Page 7 Councilman Luna forwarded a copy of a League of California Cities paper regarding principles and techniques for protecting City funds and investments to staff and commented that he would like to see much of it incorporated into the City's investment policy. Councilman Carden requested that staff come back with recommendations regarding creating a financial investment review committee. Andy Takata reported that the city managers from all cities outside of Orange County will be meeting to come up with a common strategy and staff will know in a few days how much, if any, of the City's funds can be withdrawn. Staff, he added, is proposing a special Council meeting for December 29th as a work study session to look at the impact on pending capital projects and to on-going contracts. By mutual consent, the City Council agreed to meet December 29th as recommended. Staff recommended the adoption of the following two resolutions: A. Resolution No. 121-94 - Authorizing and directing City staff to request a property tax advance from the County of San Luis Obispo for the second half of the 1994-95 fiscal year The Finance Director noted that the request would only be exercised if staff determined it necessary. MOTION: By Councilman Luna, seconded by Councilman Carden to approve Resolution No. 121-94; motion carried 5:0 by roll call vote. B. Resolution No. 122-94 - Authorizing and directing City staff to obtain a line of credit from a financial institution to meet the short-term cash flow needs of the City The Finance Director noted that the line of credit would only be utilized if an identifiable revenue source can repay the amount drawn within ten days. MOTION: By Councilman Luna to approve Resolution No. 122-94. Discussion on the motion: Councilman Carden inquired if staff was researching the best rate. Andy Takata responded affirmatively. Second and vote on the motion: Councilman Johnson seconded the motion; motion passed 5.0 by roll call vote. CC 12/13/94 Page 8 2. SAN GABRIEL BOOSTER STATION - Consideration of request by the Atasca- dero Mutual Water Co. to conceptually approve future alignment of San Marcos Rd. across City property Henry Engen provided the staff report and recommendation to approve conceptually the realignment of San Marcos across City property and accept for processing a Conditional Use Permit application (noting that the matter will go to the Planning Commission for public hearing). Brief Council questions followed. Councilman Highland commented that he did not see any conflict with the General Plan. Public Comments: Steven Ward, 10012 Santa Marcos Road, voiced opposition to the realignment. He expressed discontentment about the Water Company's plans to construct a building that will block vision and create an unsafe situation for residents pulling into and out of a shared driveway. He suggested that the matter needed further study. Ken Weathers, Atascadero Mutual Water Company, reported that engineers are working on the design of the structure and noted that his staff is planning to address concerns before the matter goes to public hearing. He explained that the pump station is presently at capacity and, using overhead transparencies, illustrated objectives for the upgrade. Upon motion duly made and seconded, the City Council unanimously agreed to extend the meeting past the hour of eleven o'clock. ---End of Public Testimony--- By general consensus, the City Council approved the concept, as recommended. 3. GENERAL PLAN AMENDMENT REQUESTS -Consideration of Planning Commis- sion's recommendation regarding initiation of hearings to consider applications to amend the General Plan Mayor Bewley asked the City Attorney to advise the Council on whether or not they could legally discuss the Portola Road General Plan request. Art Montandon explained that discussion would violate normal procedure but technically not legal requirements because the matter is referred to in the staff report. By mutual agreement, the City Council elected not to consider the Portola Road General Plan request. CC 12/13/94 Page 9 Henry Engen provided the staff report and recommendation to approve initiation of five applications for consideration. Councilman Luna stated that he would vote against the GPA #94002 (Ramona request) when the if and when matter comes before the City Council for change. Public Comments: Richard Beck, applicant, spoke in support of GPA #94002 (Ramona request) and stated that he had not received notice that the matter was being set for the City Council agenda. Russ Thompson spoke in support of the request submitted by the Pentecostal Church (GPA #94005). Richard Summers spoke in support of his application (GPA #94003). Lee Price, on behalf of the Berean Baptist Church, thanked the Council for giving consideration to GPA #94001 . The matter was closed to the public. ---End of Public Testimony--- Henry Engen, responding to inquiry from Councilman Carden, clarified that the Ramona Road request was for a land use change with the applicant desiring a negative declaration (a finding that there are no significant environmental impacts) and that an Environmental Impact Report (EIR) not be performed. He also noted that the applicant is seeking a Tourist Commercial change and is not requesting an extension of the Urban Services Line (USL) to the property. Adjacent property (Hemingway), he added, is also Tourist Commercial without sewer and pointed out that most feasible uses for that zoning require sewer. Councilman Carden asked what types of uses are appropriate for the present zoning (Suburban Single Family Residential). Mr. Engen replied single family homes, schools and churches (with a use permit). Uses for Tourist Commercial, he added, are primarily gas stations, motels and restaurants. He mentioned that Caltrans has already indicated that a bridge widening will be required if there are any density changes to the west side of the freeway on the north end of town. The cost of this, he concluded, is approximately 1 .3 million dollars. MOTION: By Councilman Luna, seconded by Mayor Bewley to go ahead with General Plan Amendments #94001, 94003, 94004, 94005. Discussion on the motion: Councilman Johnson asked for further clarification CC 12/13/94 Page 10 regarding environmental review. Henry Engen explained that staff recommends that an EIR be conducted on the Ramona Road request. CEQA (California Environmental Quality Act) allows the recommendation of denial without doing an EIR. Councilman Highland pointed out that the Council's action is only to recommend that the applications be accepted for processing. Vote on the motion: Motion passed unanimously by roll call vote. MOTION: By Councilman Carden, seconded by Mayor Bewley, to approve GPA #94002 for review allowing the applicants to make the decision to pay for an EIR or not; motion failed 2:3 (Luna, Johnson, Highland). 4. ORDINANCE NO. 280 - Amending Title 8 Building Regulations Chapter 12 on unreinforced masonry buildings to amend time limits for compliance and related matters (Recommend motion to adopt on second reading by title only) MOTION: By Councilman Highland, seconded by Councilman Carden to waive the reading and adopt Ordinance No. 280 on second reading by title only; motion carried 5:0 by roll call vote. D. COMMITTEE REPORTS (The following represent ad hoc or standing committees. Informative status reports will be given, as felt necessary.): 1. S.L.O. Council of Governments/S.L.O. Regional Transit Authority - Councilman Carden reported that a draft transit proposal is on record and on the Council desk for review and comment. He noted that he has requested, in a review of Caltrans projects, that the 41 alignment and the 41 off-ramp improvement project be constructed at the same time. 2. City/School Committee - The City Manager noted that, due to the OCIP meeting in southern California, the December meeting has been postponed until January. 3. County Water Advisory Board/Nacimiento Water Purveyors Advisory Group - Councilman Highland reported that the Board of Supervisors were today to take up approval of language of the final contract for the Nacimiento Water project. 4. Finance Committee - Councilman Luna reported that the committee had met the previous week to discuss the OCIP situation. He pointed out CC 12/13/94 Page 11 that there has never been adopted a resolution which establishes the Finance Committee and its' duties. There was consensus to direct staff to come back with said resolution. E. INDIVIDUAL DETERMINATION AND/OR ACTION: 1 . City Manager Andy Takata announced that the regular City Council meeting scheduled for Tuesday, December 27th had been canceled due to the Christmas Holiday and mentioned that the City Council would be adjourning the meeting to Thursday, December 29, 1994 at 7:00 p.m. for purposes of reviewing current and pending contracts. Staff, he added, will be requesting priority direction from the City Council. THERE BEING NO NEED FOR A CLOSED SESSION, MAYOR BEWLEY ADJOURNED THE MEETING AT 11:31 P.M. TO THURSDAY, DECEMBER 29, 1994 AT 7:00 P.M. MINUTES RECORDED AND PREPARED BY: LEE PRICEI City Clerk Attachment: Exhibit A (Highland) CC 12/13/94 Page 12 CC 12/13/94 EXHIBIT A _ Page 1 HIGHLAND, George My purpose, in making a formal statement tonight, is to try to inform the citizens of Atascadero of my assessment of where the responsibility lies for Atascadero's current financial dilemna. The previous Council shares responsibility. On December 14, 1993, they adopted Resolution 144-93, which formalized the Investment Policy of the City of Atascadero. In my opinion, this policy was lacking in several respects. The very first statement should have simply said, "It is the policy of the City of Atascadero that the primary concern im-investing public funds shall be the safety and security of such funds." Although the Council did put a maximum of 109 of the total investment portfolio that could be invested in a single security type or a single financial institution, it EXEMPTED from this limitation U. S. Treasury Securities, the State LAIF and the Orange County Agency Investment Fund.The latter two are not subject to any oversight. It is my understanding this Policy Statement was originally written by the City Treasurer and the Finance Director. The City Manager shares responsibility. He did not bring to the attention of the previous Council, nor was his follow-up adequate, a March 1993 memo from Finance Director Mark Joseph. This memo questioned the advisability of putting a high percentage of City funds in a single investment fund. Joseph prophetically made the point "the higher the interest rate, the higher the risk". In addition, the City Manager failed to bring this Investment policy Statement to the attention of the newly elected Council last July. With a majority of the Council not being aware of many of the sxisting City policies, a statement so fundamental to City operation should have been a primary item of information. I, also, share responsibility. Having been a member of the first Council, I should have remembered that the Council must establish investment policy. Had I seen the current statement upon taking office, I would have expressed strong objections to parts of it and demanded revision. The major share of responsibility lies upon the shoulders of the City Treasurer. The Orange County Agency Investment Fund invested heavily in Reverse Repurchass Agreements, an investment mechanism which attempts to take advantage of the different interest rates between long term and short term securities. The gross monthly interest rates for this fund have decreased steadily since March of 1992, which should have suggested Closer monitoring of the fund. The Federal Reserve Board has raised interest rates 6 times this year. I suggest that, at the time of the third increase last Spring, the Treasurer should have had second thoughts concerning the role CC 12/13/94 EXHIBIT A H!SHLAND pg 2 of 2 of Reverse Repurchasing Agreement Apparently she did not. I have no investment expertise, but common :gency. enss tells me one does not invest 98.8' of one's funds with a single Either the Treasurer was not fully informed of what was going on or, if she was, she didn't tell either the City Manager or the Council. All she told us was how much money she was making for the City. Interest earned, not safety, seemed to be her bottom line, to the exclusion of everything also. In my opinion, she was negligent. The Treasurer has handled this whole situation, in terms of informing the public, probably as poorly as could be done. Her first statement to the press, that she didn't know how much the City had in the Fund, was not designed to inform the public and had to be less than truthful. The follow— up statement, that it was "only a paper loss", would be comical if it wasn't so serious. I would remind her that a dollar bill is only paper, but a million of them (the potential loss) goes a long way toward paying City bills. The final insult to the concerns of the public was her appro- priation of Marie Antoinette's "Let them eat cake" and paraphrasing it "The Council can adopt an utility tax". That statement alone kept my phone ringing all day Thursday. The Treasurer appears to be unwilling or unable to acknowledge any responsibility for the predicament in which the City finds itself. Not only has the Treasurer lost my confidence, she has antagonized a substantial number of Atascaderans. Finally, there is an attorney, living in Atascadera, who shares responsi— bility. In 1981, in a move designed solely to emberass the first Council and the City Manager, this individual forced an election to determine whether the offices of City Clark and City Treasurer should be appointed or elected. He convinced voters that elected officials would be more answerablat to the public. His argument prevailed. Since that time, the only require— ments for these two offices is a candidate shall be a registered voter and be breathing. No pertinent experience is required. Perhaps it's time to consider making a change.