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HomeMy WebLinkAboutMinutes 122994 - Adjourned Mtng Approved as Submitted Meeting Date: 01/24/95 ATASCADERO CITY COUNCIL ADJOURNED MEETING DECEMBER 29, 1994 MINUTES The Mayor called the meeting to order at 7:00 p.m. Councilperson Luna 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; John Neil, Assistant City Engineer and Mark Markwort, Chief of Wastewater Operations CITY TREASURER'S COMMENTS: City Treasurer, Micki Korba, indicated that she had a prepared statement and because of pending eye surgery had asked her husband, Leon Korba, to read it. Mr. Korba stepped to the podium and read the statement (see Exhibit A). COMMUNITY FORUM: Ray Jansen, 6655 Country Club Drive, urged all to realize community roles, express what is heartfelt in rational actions, become more aware of others, provide ethical guidance to the young and work for greater spiritual understanding. CC 12/29/94 Page 1 Mike Hoover, General Manager of the Chicago Grade Landfill, urged the City Council not to intervene in the pending lawsuit between Chicago Grade Landfill and Wil-Mar Disposal, Inc. He commented that Wil-Mar can chose to haul Atascadero's solid waste to Chicago Grade with no change in rates and reported that Chicago Grade Landfill meets all state, county and local regulations. He asserted that the Paso Robles Landfill is in violation of State Law and suggested that there appears to be an undisclosed financial interest that may ultimately and adversely effect service and create a monopoly. The City Attorney reported that the City Council would be discussing the litigation matter during Closed Session but clarified that he is providing no recommendation to participate in an amicus brief filed in the case. Greg Grisanti, 5275 Cabrillo, commented that he was opposed to the fact that Wil- Mar can collect its' bad debts by having them placed on the tax rolls. He encouraged City officials to work things out with Wil-Mar and the landfill. If Chicago Grade goes out of business, he cautioned, who's going to pay for its' clean-up? A. CONSENT CALENDAR: 1. CITY COUNCIL MINUTES - November 29, 1994 (cont'd from 12/13/94) 2. APPROVAL OF WARRANTS FOR THE MONTH OF NOVEMBER, 1994 (cont'd from 12/13/94) 3. FINAL PARCEL MAP 94002, 5150 ATAJO ROAD - Subdivision of a 5.05 acre parcel into three parcels for single family residential use (Gearhart) 4. FINAL TRACT MAP 23-89, 11455 VIEJO CAMINO - 19-lot residential subdivision (Gearhart) Henry Engen requested that Items #A-3 & 4 be continued. By mutual consent, the City Council continued these items until the next regular meeting (1/10/95). MOTION: By Councilman Luna, seconded by Councilman Carden to approve Items #A-1 & 2; motion unanimously approved by roll call vote. B. REGULAR BUSINESS: 1. PRIORITIZATION OF CONTRACTS AS FUNDS BECOME AVAILABLE Andy Takata reported that because of the Orange County Investment Pool (OCIP) CC 12/29/94 Page 2 situation and the present cash flow problem, staff had requested this study session to prioritize pending capital improvement projects and contracts. He explained that staff would present a summary of the contracts (Items #A - U), in order as they appear in the staff report. Brady Cherry, Community Services Director, provided details regarding the current traffic signal maintenance contract and noted that staff had planned to come to the City Council with a recommendation for renewal in January of 1995. He summarized options, including performing maintenance in-house and responded to Council inquiry. The City Attorney advised that there would be additional liability to the City if there is an accident or problem associated with staff performing the maintenance. Brady Cherry then provided an overview of the street sweeping contract and brief discussion ensued. Henry Engen summarized capital improvement projects (Items #C - M) and noted that Item #L should be corrected to include the name of the contractor: Miller Drilling Company. He added that this was a contract previously authorized, but not yet executed, and is for Phase I of the reclamation wells program at the wastewater treatment plant. Mr. Engen reported that there are remaining phases totalling $293,740 and noted that the first contract phase is essential. Other phases, he added, might be continued into the future. Mark Markwort, Chief of Wastewater, responded to questions regarding sewer improvements and the reclamation wells project. He recommended that, while remaining phases might be deferred, it would be far more expensive down the line to delay Phase I. The City Manager pointed out that there are some sewer improvements necessary for cease and desist areas that were not put on the agenda because they are state-mandated and are not options for the Council to defer. Henry Engen noted that staff was presently interviewing design teams to work on the wastewater treatment plant upgrade (Item #M) and suggested that a firm be selected, but the contract award be delayed. Continuing, Henry Engen provided an explanation of Items #N - P and noted that these items involve grant funding. He outlined Items #Q - U. and indicated that these projects would be paid for out of General Fund monies. Following questions, Mr. Engen noted which funds monies would have to come from in order to pay for each item listed. Public Comments: Rush Kolemaine, Potrero Road resident, stated that he was disturbed by the fact that CC 12/29/94 Page 3 grant projects are being considered for prioritization. Doug Chisholm, 5205 Escarpa, urged Council to reconsider paying for the Environmental Impact Report (EIR) for the "Dove Creek" (Hendrix) property given the OCIP crisis. Cheryl Pagliolongia, 11375 Atascadero Avenue, also asked the Council to reconsider the EIR for "Dove Creek". O.W. Smith, 11705 Atascadero Avenue,encouraged the Council to consider dropping funding the EIR for the "Dove Creek" project. Joan O'Keefe, 9985 Old Morro Road, read a prepared statement expressing her concerns about prioritizing the Hendrix property and Native Tree Fund monies (see Exhibit B). Sid Bowen, 5550 Cascabel, urged commitment to the downtown parking improvements and the "Dove Creek" EIR. Dorothy McNeil, 8765 Sierra Vista, read a prepared statement opposing funding the EIR for the Hendrix property (see Exhibit Q. Bob Powers, 7505 Carmelita, urged the Council to eliminate "Dove Creek" as a priority. Daphne Fahsing, 5105 Llano Road, demanded that members of the City Council who voted in favor of EIR for "Dove Creek" be required to pay the City back for the cost. John McNeil, 8765 Sierra Vista, asked the City Council to remove the Hendrix property EIR from the priority list. Carol Dehart, 4375 Lobos, urged the Council to spend limited funds on developing the downtown, community children, Dial-A-Ride and citizens in general. Robert Huot, 3850 Ardilla Road, stated that he, too, was opposed to the City spending public funds on preparing an EIR for the Hendrix property. Eric Michielssen, 5300 Aguilla, Chamber of Commerce President, indicated that he was speaking for 400 members of the Chamber in favor of prioritizing the "Dove Creek" EIR because determining appropriate commercial retail property is a solution to generating more income. CC 12/29/94 Page 4 Ray Jansen, 6655 Country Club Drive, commented that the present crisis reveals an excellent opportunity to look for innovative ways to save money and eliminate waste. George Beatie, 10025 EI Camino Real, proposed that, in order to continue to provide services and recreational opportunities, the City needs to increase its' tax basis through development fees or a utility tax. Leo Korba, 10905 Santa Ana Road, asked that the Council carefully consider all arguments on both sides of the "Dove Creek" EIR issue. The City Clerk read letters from Donna Moss and K.M. Barthels (see Exhibits D & E). Note: A letter from Elnora and Frank Garcia was submitted, but not read, and is made part of the record (see Exhibit F). Rush Kolemaine, speaking again, asserted that speakers representing the Atascadero Homeowners' Association have violated certain rules of public participation and have added nothing to the quality of deliberations. He asked the mayor to remind speakers of the rules. Mayor Bewley stated that everyone has the right to speak and there had not been any violations. Councilman Highland added that any group can come and say anything they want. Councilman Luna complimented the Mayor for the way he was handling the meeting and pointed out that rules are guidelines for debate. Doug Chisholm, speaking once more, explained that he is a member of both the Atascadero Homeowners' Association and the Atascadero Chamber of Commerce. He debated comments made by Eric Michielssen and asserted that Mr. Michielssen had not polled the membership for a determination about the "Dove Creek" issue. He suggested that this matter might best be put to the voters. O.W. Smith spoke again and asked that all General Fund projects, including the "Dove Creek" EIR, be stricken off the list. ---End of Public Testimony--- The Mayor called a 15-minute break at 9:22 p.m. The meeting was reconvened at 9:35 p.m. Lengthy Council discussion followed regarding capital improvement projects. There was consensus to take grant items individually, as they come and on an as-needed basis. In addition, the Council agreed that capital improvement projects (items #C - M) will be prioritized by staff, as follows: First priority will be health and public safety issues;second priority will be those items relating to economic development and, third priority will be all others. CC 12/29/94 Page 5 Discussion ensued regarding Item #A, traffic signal maintenance. Councilman Highland spoke in favor of continuing with the contract service because of potential liability. There was concurrence that the traffic signal maintenance contract be continued. Brief discussion followed regarding Item #B, street sweeping services. Brady Cherry mentioned that the contract was due to expire in March of 1995 and explained that the contractor was willing to negotiate modified services. The City Council directed staff to negotiate with the contractor alternative sweeping schedules and pursue reduced monthly costs. Discussion followed regarding Items #Q - U to be funded by General Fund monies. There was general agreement that these items, with the exception of Item #S ("Dove Creek" EIR), would be deferred (see motion end of page). Individual Council comments followed regarding Item #S, "Dove Creek" EIR. Councilman Carden spoke in favor of moving forward and stated that the expenditure would have a positive impact because it will attract business. Councilman Luna argued that this item should, like the other General Fund projects, be deferred. Councilman Johnson debated that the EIR is critical to capturing leakage of sales tax revenue and claimed that it is a better idea than raising taxes or fees. Councilman Luna asserted that he disapproved of using tax dollars to fund the EIR and did not agree with the concept that if the City pays for it (the EIR), the project will come. He pointed out that an EIR has been paid for by a developer for the proposed auto mall on the north end of town and as yet, there is no project. Councilman Carden refuted that the potential for the auto mall site is limited. He proclaimed that preparing the EIR was an investment that will put the City in competition with other cities for commercial development and pointed out that a site specific EIR will still have be done later. Councilman Highland commented that reputation has it that Atascadero is not friendly toward business. He said the reason he is in favor of the limited EIR is because it will send a message that Atascadero welcomes business. MOTION: By Councilman Luna to defer all General Fund items [Items #Q - U]; motion died for lack of second. Councilman Johnson asked staff how long it would take to the prepare the EIR. Henry Engen reported that once approved, the EIR would take approximately ten weeks to complete. MOTION: By Councilman Carden, seconded by Councilman Highland to defer all the items on the General Fund list [Items #Q - U] except for the ["Dove Creek"] EIR; motion passed 4:1 (Luna opposing). CC 12/29/94 Page 6 MOTION: By Councilman Carden, seconded by Mayor Bewley to move forward with the EIR and concurrently prepare a cash flow analysis before prioritizing the other programs. Discussion on the motion: Councilman Luna asked how much staff time this would take. Brad Whitty explained that Transit Development Act (TDA) funds, gas taxes and developer fees will take several weeks of dedicated time. Some projects, he added, are funded by more than one fund. He reported that the task is already underway and is part of the Finance Department work program. Motion withdrawn: The motion maker and second withdrew the motion because preparing a cash flow analysis is already a priority with the Finance Director. Staff was directed to execute the contract with the EIR consultants for the "Dove Creek" (Hendrix) property. [4:1, Luna opposing]. C. INDIVIDUAL DETERMINATION: 1. City Manager Andy Takata reported that he had attended an OCIP meeting the previous day in southern California. At 10.32 p.m., the Mayor adjourned to Closed Session. D. CLOSED SESSION: 1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Closed Session was adjourned at 10:40 p.m. The City Attorney announced that the City Council discussed the possibility of joining in the litigation entitled, Chicago Grade Landfill, Inc., Walter and Patricia Johnson v. City of El Paso De Robles, City Council of the City of EI Paso de Robles and Wil-Mar Disposal Company, Inc. and decided unanimously not to participate in the litigation. THE NEXT MEETING OF THE ATASCADERO CITY COUNCIL WILL BE TUESDAY, JANUARY 10, 1995 AT 7:00 P.M. CC 12/29/94 Page 7 MINUTES RECOW- A., PREPARED BY: LEEPCECity Attachments Exhibit A (Korba) Exhibit B (O'Keefe) Exhibit C (McNeil) Exhibit E (Barthels) Exhibit E (Moss) Exhibit F (Garcia) CC 12/29/94 Page 8 CC 12/29/94 EXHIBIT "A" Honorable Mayor, Members of the City Council, and Residents of Atascede% The purpose of this writing is to inform the public of the following data obtained from the office of the City Treasurer. Although, I'm the Treasurer's husband, I've spent the last two fiscal years as chammen of than Audit Committee with the San Luis Obispo County Grand Jury dumW which tow, the committee was able to review and study public financial records of the County and its constituent districts and macipolitues Inckrded in this report are the following, • A chronicle of events and the basis for actions from her electron hr 1990 to the present. • A rebuttal to stetwwts made to the Counrj by Mr. H and who never visited the 7ressurer's office, or talked to her about the City's finances at any tires • A table extrapolated from Treasurer's reports showh7g a total of hrterest earn1hp to be $1.94 million dollars, which included the Orange CWnty Invasment Pool(OCIPl, since she came aboard. CHRONNOGY • Prior to July 1990 - Aknxnst $2 million was unrested in Federal Home Loan Bank(Resolution Trust Corporation). • Last Investment Policy issued in August 1987 A violation of Government Code 53646 requiring an annual adoption by the City 06=17 • No interest on checking account with monthly cash flowhy between $200,000- $3O0,000 + Treasurer was appointed. • Elected Treasurer - July 1990 and reelected in July, 1994 • Safety- Checked with consultants on,status of investments and fovurxl that aknost $2 million brokered through Dean Witter to a bank In Dallas, Taxas was considered high risk. Account was closed in August 1990 and money trensferad to Local Ap y Investment fund(LAIR + Prudence - 8ids requested by Treasurer to obtain interest o n checking acco at. M631ate Bank offer accepted. • tnvesmnent - Consultants and goverment aganeks were contacted to detemnvne another''investment house other than LAIF since the closing of the Dean Witter account with the Federal Hone Loan Bank fFHt81. rhe OC1P had a long history of good earrn Ind a safety rating with 90% of investments rated AAA and 10 rated AA. • Liquidity - Was more constrained than/AIF. Withdrawals mW*ad 48 hour notOcedw as opposed to wre transfers and thane was a 1W of two withdrawals per month: These are conimm for cash- flow since the Treasurer is reeqund to prowdde maxifan capability for the Cky to pay bfs in its daily operations Thus, the Finance Director had da capability with the use of two, not one, major funds There were many rmunicipal treasurers who weak!have 1,1ra+d to pin entry to do OCIP. Mage 2 of However, if one's County had its own pool, den antry was demi. For At&=dw i to enter, the San Luis O&Wo,ISLO) County Auditor1cwtra6r had to RAWt a statWMt to die effect that SLO County had no MMOnant pool. After Atesced ro was accepted, the door was daW and a waiting list established for edws, outside of Oram County, to enter the OC/P. Why wwanwt pools? Small cities ar entities do not have the resowces to pay staff to handle investments on s daily basis rhe State, Counties and large cities ab have in-house Investment per=W. • Investment Policy - This required considarabk research rhe California Municipal Treasurer's Handbook and the Netional Mulw1pal rresswars Assodation sanWle Investment Policy as wed as copies of many other city investment po/%s were obtained via phone and n ed requests and studied for application to Ateseadero Based on the raky investment through Dean Witter, kwemwts thereof were/knifed to 10%. Thee bahsnce to be applied to LA/F and OCIP. rhe rreawer attended many saminers and workshops and consulted with other TreaswM Finance Ohxr4 a&Wbnent brokers, 80WOM etc., statewide. As late as last April, she attended the annual rnwwars Conference and met with both LAIF and OCIP M=ni%•spoke with city persona'that have full staffs like Mountain View, which has $47 nYFW/n the OCIP- rhe OCIP was not cwmbvd a risk by the numeronc consultants she contacted both/n person and by phone as late as two weeks befoe the 408W meeting of Deer 1, 1994 In 1991, the Govenrnent Code was chard alleviating the reequuement for an am a/poky statement. However, the measurer has continued to issue an anrxua/povicy to protect the City hn►n i mprudwt decision. • Accouatehfity - From out of the bke a $99,000 Cartif/cate of Oepodt(CD) showed up. Discovery was then necessary for the measurer to have more oversight of funds the Clty owned but were not accounted for. In the process, shay was denied computer access, she was not a agner on the checking account, nor was she listed on the LA/F account. At the sane tkn ruts were bong signed using the mayor's signature stamp and the Finance Director's live signature The rre&wrer, in essence, had no oversight but had the respo>Mity. It wasn't unt# 1993, after a public report she issued that the accountabiity began tum amoral. Remember, the Finance Director had the fleribdity to use ether find for makhy deposits and peyhng bids Annual audits of the City include knowledge by the auditors of where the City las mvestnemts 17e Bank of Mom, who handled the TRANS accounts, knew funds were in the OC/P. rhe buyer of the notes, a lank, knew funds of the City were xthe OCIP. • Tax Revenue Anticipation Notes(TRANS) - Reveuiues onanatrng ham tax colketma were not syndmwzed with the City's needs Without any reserve in the Gweral fund, may ww1d have to be borrowed from odw funs or a loan at additional cast. As an aft tare; the Tiasurer recarwsWed the application fuer TRANS which Is essentially a short tarn loan. /t provda an opportunity for gain if you garner mina mtwast flan the total cost of bonrow4pgt On a presentation to the Council in Odohff 1992, the Finance Director clwW it woub+We spar months to obtain such a TRANS and ewM not be doe before next Sprirxh rhe measurer made the necessary contects and got approval in thin weeks A reqxwmt of the h lmft agency is ga sudrrdttal of cash-fibv statements The Flnarx v Director had now before is ed to the Cam#,any suck statements which are a necessary.adimet to awnew to ' . A second TRANS was obtamed the he fol/owing year and a third TRANS, based on possM )ower interest rate char, was rekuctantly agreed to at a Fins= Canarrnitte meat* • Responsduility rho rreasurer has never dMierl reWoes&;Ry for the Investment of the C/ty's hinds She has tippled the basic princroks of Safety, L quklrty, are Yeid MV. She exann(nd p-vdamce in attAPotinq to maxiinize yield, and adow for rnperatxml flexxhft, with the use of mare than one fund rhe decline of investment funds, as wed as the finance Director's discretion in the use of such funds had resulted in the dance of departs currondy in exist (Pane3of.9 + Orenp County, what now? - Resales of the debar% are to be determined. Its conceivable that Or e County may have to pay au the investors. The Tressurer was aware that theme was a kvanaoW of funds but not to the extent of using XZ5 bilion as collateral for an addituona/ $12.5 Agro That data was not available to anyone. Tremwnw, throughout the State, are now bwng examrraef for risky strategies with public funds REBUTTAL Oamag/rg statements subm aed to the press by Mr. Higher who never mead the City Treesww to obtain data. There's sane question as to whether he ever read the Treasurer's reports which clearly dOwted the money invested in both the Orange County and the Catiffww State funds • Investment Policy - Mr. Hghlsad stated he had no investment expertise, repeat, be had no kratmemt expertise. Yet, had he seen the current policy upon talo ofd he waukl have expressed stmrg objections to perts of it and demanded revision. This represents an ex post facto thought of what one might do. Asde from the fact that much research and consrAttebw was spent in developing th+a policy, it was nwkwed by flee Finance Director, the Assistant F�wee Director and the City Attorney, It was also approved at different thnes by an Econanucs pmfew, a lawyer, the for w mayor who is a relatively successful investor and the entre City CamaL • Mark Joseph Memo - Mr. HgWnd castigated the City Manager for not bringing a now to the attention of the previous Councd wherein a hgh percentage of City funds is m a eagle investunent fund. The point was made 'the hgher the interest, the higher the risk' First, oft-awes in interest rates, per se, do not govern safety. Shoe around from one bank to another and more earnings may he derived from one Institution w/thout any difference in protection Secondly, mexanum operatmel fle ib iuty is required for the use of money in the payment of drys Transfer of funds for darty operations is the respewZyNty of the Finance Director. • Orange County investments - Mr HgWnd makes mentm of ro wise repurchase dents which is doe in different degrees by cities, counties and states throughout these Ureitted States He did not include oiler strategies such as the use of inverse floaters aped derivatives • Neglgeace - He must have been dowyant when he hWhed that merest earned not safety, seems to be her bottom lire and thence opiW Chet she was reegtont. The proles of Safety, 1iqvidity and yid, Putr&nce, and Operational Fk ty were*plkd in ler performance as Treace: Had he sought any information from her ofd instead of shoothg from the* /m my hm inned d► itly. • Paper loss -A memo to the Cwnc,#cover*an Oram Cwmty private meeting of pore/partiavants which she attender an Decwiher 1, 1991 reflects stalamsots made by Orae Corenty staff members. Mr. Highlarm made a nmk&y of that w1w he ram herr that a dater bM m only paper but a nmVw of then goes a long way towards payng City's buts. Those notes were submitted to the local press by a pevsan yet to be kbatilhnd. • Utu7ity Tax- At the last finance Canem/ttee meeting, it was i, not the City Tnesstaar, who suawted that the CWM7 consider this alternative for newsman anhencsoog. I've spoken before thus Council several tdmas suggesting this, independent of the Orange County dilemma. Mr. Jolam srormearized it briefly in statlnq that sanedit had to be done, whether it be a tax or other meeum to enhance revenues an dler roduce expenses MW 4 of 51 • "Let 77mm Eat Cake" - Repmsmats a dw mnrng statement Mr. HA/iknd mere and at AWOd it to the rreasurer. His review of rerpumwmnts for ekctrwr as City rrawrer is no amt Hien for City Councd- the candidate shall be a registered voter and be bmthir. • ReWonsmbility - Finally, neither the Counrrl nor the rressurer have denied any resormsrbi7ity with respect to the Investmnt of City funds Also, the rreasurer has not mere urhteral decisions However, it rs the responsMity of the Canal to assure that the City is a 9009 corm. Me Treasurer does not authorize expenditures and she has alerted this Council, as wet/as previous Councils, rerprdby an excess of expenses vs revenues In my opinion, Mr. Hallikad hes provided this City with a great disservice and 1 sorest that flus Cornd censure him for the defamation of character which he hes pirated on the City Treasurer. TABLE OF EARN/NGS Me table shown on pegs 5 shows beknces, eanmys ar�intemr rates from 1990 dMIgh the fiscal year erxllarg in June 1994 Baknce shown for fiscal 1994 inc/uda a loan payment for the TRANS made in early Jrdy 1994. Fund baknces declines+appradmtely $2.8 m#On between 1990 and 199 EamhWs of$1.94 nzffw contain $1.35 million from the OCIP. Assramv interest rates r ewated by LAIF and applied to OCIP, the emnfflp would have been reduced by $578,000 Composkion of the City's funds in the OCIP contour mostly Wastewater hinds: DOMb of the crnrtents W71 be presented subsequent to discussion with the Fiance Director who hes prst returned from vacation: Respectfully, ^cc. L Kor1m t 10905 Santa Ana Road Atascadaro, CA 93422 Paw 5 of 5) TABLE OF EARNINGS THROUGH FISCAL (1993-1994) 19891980 19941991 1981.1802 1902.1903 18831984 ACCOUNT BALANCE INTEREST BALANCE INTEREST BALANCE INTEREST BALANCE INTEREST BALANCE INTEREST "FICO' $1,827,445 $126,052 LAIF $8,101,000 $1,413,000 !408,327 $706,707 $15,707 $214,274 S1Z587 $8,088 $1,988 ORANGE COUNTY $8,000,000 $0 $4,861,548 $380,414 $6,877,310 $108,082 $5.300089 $670,681 MIO-STATE $10,169 $0,818 18,774 $6,121 BALANCE $7,928,445 $7,413,000 -46AuZ6 $6,881,584 - 4300915 INTERESTIYR $641,538 $391,940 $429,403 $677.788 DELTA INTERESTIYR 4181,933 $188,783 4200,380 INTEREST TOTAL(1990.1994) $1,940,669 EARNINGS DO NOT INCLUDE USE OF CO'S AND OTHER SUCH INSTRUMENTS DELTA INTEREST TOTAL(1990.1994) $578,021 DIFFERENCE IN EARNINGS BASED ON LAW RATES VS. OCIP RATES MID-STATE INTEREST TOTAL (1991.1994) $33,873 NO INTEREST EARNED PRIOR TO 1990 INTEREST RATES 19841990 19941991 1991-1802 1082.1093 19931994 RATE M RATE M RATE I%) RATE I%) RATE M 'FICO' 8.36 8.36 LAIF 8.54 7.37 5.32 4.56 4.82 ORANGE COUNTY 0 8.54 8.07 7.84 7.48 MIO-STATE 0 5.06 3.5 204 205 • DELTA INTEREST DOES NOT INCLUDE LOSS OF EARNINGS IF TRANS FUNS WERE NOT USED • $1.9 MILLION TRANSFERRED FROM FHLB TO LAW VIA MID-STATE IN AUGUST 1990 • TRANSFER OF FUNS FROM LAW TO ORANGE COUNTY ON MAY 22, 1991. INVESTMENT IN TWO MAJOR POOLS • SIGNIFICANT DECLINE IN INVESTMENT FROM FISCAL 1991 TO 1992 • TRANS FUNDS INCLUDED IN FISCAL 1893. PAYMENT OF $2,07 MILLION TRANS NOTE OCCURRED 9N JULY 1994 • TRANS FUNS INCLUDED IN FISCAL 1994. MOST OF ACCOUNT IN OCIP CONSW^TS OF ATASCADERO'S WASTEWATER FUND • DATA IS EXTRAPOLATED FROM TREASURER'S REPORTS. DOES NOT INCLUDE OTHER INVESTMENTS SUCH AS CON'S AND CO'S . CC 12/29/94 EXHIBIT "B" Joan O'Keefe Page 1 9985 Old Morro Rd.East To: City Council Re: Comments on Agenda Item S--1 This is a very difficult item on which to make comments because it is a collection of apples and oranges lumped together under the label of Purpose. Some of these "purposes" which I will hereafter call projects have a definite source of revenue and that revenue is to be used for the function which it was collected, sucka._az-� #w—waste water fund. Other-- projects such as road maintenance have partial state funding. Dove Creek is not generating any revenue and it is asking to be funded by the City. For these reasons I believe it would be helpful to identify projects with dedicated funds from those that don't have dedicated funds and to further, break out those projects that are Enterprise projects which are supposed to be run like a business. This will give a clearer picture of the city's r••esponsibilities and financial condition. Also as I understand from past c-cmments we have been borrowing from the solvent funds to Cover' expenses for, those projects that haven't been generating sufficient income, such as the ZOO. There is money in the WWTP. This is money that anyone on the sewer :system pays annually to cover anticipated repairs and upgrades. They should be able to trust that their public otficals will not tap that money for special interests. Is this where you pian to get money to pay for the dove Creek CIR? The funds in the item labeled dative Tree Program are development fee funds which are there for one purpose and one purpose only and that is to mitigate the loss of native tress caused by development. There is no specific project for, these funds and it is the only item on this list that has money and no project. A potential Cash Cow. As .a re-minder a nexus needs to be established when those funds are spent If this nexus is not established the requirement to make ,an in lieu payment of :ioll,ars for trees by a developer becomes .a form of fee extraction from the developer, and in this case if funds are tali=n from the Native Tree CC 12/29/94 EXHIBIT "B" Page 2 Program to pay for the Dove Creek EIR than other, developers will be subsidizing the development of the Hendrix property. I don't believe this item belongs on the list it is misleading, possibly on purpose. The comment "Invoiced: $5,363" is also misleading. The City owes $2000 for the initial assessment that was authorized by the Council . Invoicing could be misconstrued to man that 20% of the work has been completed .and if we've gone this far we should complete the project. Overlay program - $100,000. Is this what is proposed for the whole year? The city has postponed street`iresint ice for I years, thus "saving" the city close to a million dollars but deferred maintenance is usually penny wise and pound foolish. We need :street overlays not subsidization of the Hendrix property. 'Stadium Par!: -- Lets not gamble with that. Every effort should be made to holt on to it if k-r-- can get the TEA .Grant. In summary the-re- is one project that can be clearly red linded and that is the Dove Creek Project. It some of you really want Dove Creek to happen then I suggest you put your, money up front and quit gambling with ,our taxes. if its as good as you have been tryigig to convince the public there should be no problem getting people to participant in the venture. CC 12/25/94 MMIBIT "C" Page 1 To Atascadero City Council From Dorothy F. McNeil Subject: EIR for the Hendrix property Mr. Mayor and Councilmembers:. During November and December I_ shopped in Atascadero for birth- day and Christmas gifts. As I went from the Factory Outlet to the K Mart area I was aware of the many vacancies. When I went to Bank of America to renew my funds, the empty Riley' s complex confronter]. me PA& trip to the Luckey' s area, now called Atascadero Oaks, and to Baekers in the Hawkins Plaza I observed more empty stores, particularly in the Lucky' s center where at one time most spaces were filled. The Palmer-Koert report tells us these vacancies amount to 163 % of our commercial space and that we should not add.- any more until this figure has been much reduced. The report also told us that we need a department store such as a Mervyns or a Target. I'm sure we could- use a Mervyns, something between a K Mart and Ralph Lauren. Palmer-Koert also advised. us to put the department store near the Factory Outlet so people_ could do comparative shorping. The Hendrix property does not fit this need. We taxpayers have paid about $30,000 to benefit from the advice of experts who have given us the benefit of thein experience to help us plan for now and the future. At the last meeting Council voted to throw away the $30,000 advice an& it had the audacity to ask us taxpayers to spend $40,000 more:. to enhance the land value for a developer. Here are a few of the straws that break the camel ' s back: 1. There is no project for the Hendrix property. I ask Council and the news media to refrain from calling the 62 acres "Dove Creek." It doesn't exist. There is no project--geriodtCall it the Hendrix property or the'something for nothing property" or the"free-rezoning-for-no-project property." These are more truly descriptive. 2. ' There has been a lot of irresponsible talk by council, citipens and. newspapers about a department store for this Land. It's gossip. Untruths should not be repmted i CC 12/29/94 ` EXHIBIT "C" Page 2 i i i 3. I'm sick of having the public fed a diet of fantasy, mirage, pipe dreams and illusions. Theme Parks, open-air year-round country music, overlighted, noise polluting amphitheaters, trams traversing El Camino from north to south to carry bus- loads of tourists from L.A. and S.F. A movie industry in the north end of town. And now more commercial space to house the fantasies of Mr. Cardin. Citifens are outraged at the prospect of spending our money simp y to enhance the land value for one or a few. And we are not forgetting the enormity of the original Cardin proposal. Nor are we forgetting the fact that these proposals were never mentioned to the voting public by Cardin when h- ran for office. Almoet as soon as he took his council seat, he produced his upturned hat and started pulling out rabbits. With the Orange County debacle leaving us in the category of destitute, we need magic of another kind--the magic of sober responsibility to solve our fiscal problems. C Dorot-ll . McNeil 8763 4i rra Vista Rd. Atasc ero, CA 466-4128 CC 12/29194 EXHIBIT "D" There have been many letters to the editor and a considerable amount of discussion concerning the council's decision to fund the EIR for the fit acre Hendrix property at the south end of town. The recent Orange County Investment Pool debacle has seriously altered the financial situation within this city and the council should now seriously reconsider that decision to demonstrate their fiscal responsibility. Although Mr. Carden viewed this decision as part of a long term solution to the growing financial problems of this city, the need to address short term considerations cannot be overlooked. Recently, each department has had to minimize spending and tighten budgets to help the city during this fiscal crisis. In turn, the city council should also carefully monitor their expenditure of city funds to ensure the protection of vital services such as police, fire and sewer. The city at this or any time should not invest the city's funds in a speculative rezoning project. The city council must also keep in mind that funding the EIR for the Hendrix property is setting a dangerous precedent that could come back to haunt them when other developers expect similar treatment for their projects. Provided the council fails to reverse their decision and still insists on allocating city funds for the EIR, they should do so with the stipulation that one very important condition must be agreed to by Mr. Hendrix in case the proposed "Dove Creek" project does not materialize. If the 62 acre parcel is actually sold at any time after the EIR is completed and the zoning is changed, Mr. Hendrix must reimburse the city for the cost of the EIR and all staff time associated with this project along with any other improvements to the site paid for by the city (such as the extension of the urban services line). Conditions such as these will hopefully dissuade developers from designing "pseudo" projects whose sole purpose is to effect a zoning change for their property to increase its value. Donna Moss resident of Atascadero since 1979 40 41�L --H-9 CC 12/29/94 EXHIBIT "E" Dec. '26, 1994 To the Atascadero City Council: I have requested that this statement be read at the fiber 29 meeting of the Cowx it because I am unable to voice my cans in person. I include myself among those who form a likely majority of taxpayers in this city who are angry and adamantly oppose the Council's wishes to spend our tax money to financially aid those engaged in development of private property,namely, the Dove Greek property. A request has been made of the city to fund the EIR for private dowelopment I we no good rationale for the city to once again give away funds that should be used for city services, polio,fire, and other emergency personnel and programs. A developer should fund his or her own EIR as others are required to do. In addition,it has been recognized that ruing of this property to commercial retail would be entirely inappropriate, given the plethora of vacant commercial retail space that has existed in Atao for some time,now. I cite the recent economic study that reported the City has an adequate inventory of commercially-zoned property that should be utilized rather than creating additional vacant ice. I am certain that many here tonight will B ess-similar outrage over how our taxes are being used. Sm-wely, K.M. Barthels Atasccadero homeowner,vow and taxpayer CC 12/29/94 EXHIBIT "F" December 29, 1994 To Members of the City Council Atascadero CA 93422 Dear Members: Please don't use any more of the money we don't seem to have to help fund business projects in our city. There are more important things to be done but since we haven't the money for them either it's time to sit tight and not spend. lnara B. Garcia 1700 San Ramon Rd Atascadero CA 93422 466-5002