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HomeMy WebLinkAboutCC_2017_10_24_Agenda Packet CITY OF ATASCADERO CITY COUNCIL AGENDA Tuesday, October 24, 2017 City Hall Council Chambers, 4th floor 6500 Palma Avenue, Atascadero, California (Entrance on Lewis Ave.) REGULAR SESSION – CALL TO ORDER: 6:00 P.M. PLEDGE OF ALLEGIANCE: Mayor O’Malley ROLL CALL: Mayor O’Malley Mayor Pro Tem Fonzi Council Member Bourbeau Council Member Moreno Council Member Sturtevant APPROVAL OF AGENDA: Roll Call Recommendation: Council: 1. Approve this agenda; and 2. Waive the reading in full of all ordinances appearing on this agenda, and the titles of the ordinances will be read aloud by the City Clerk at the first reading, after the motion and before the City Council votes. PRESENTATIONS: 1. Proclamation proclaiming October 2017 Intimate Partner Violence Awareness Month 2. Employee Recognition City Council Regular Session: 6:00 P.M. Page 1 of 42 A. CONSENT CALENDAR: (All items on the consent calendar are considered to be routine and non-controversial by City staff and will be approved by one motion if no member of the Council or public wishes to comment or ask questions. If comment or discussion is desired by anyone, the item will be removed from the consent calendar and will be considered in the listed sequence with an opportunity for any member of the public to address the Council concerning the item before action is taken.) 1. City Council Draft Action Minutes – October 10, 2017  Recommendation: Council approve the City Council Draft Action Minutes of the October 10, 2017, City Council Meeting. [City Clerk] 2. Purchase of Two Transit Buses for Dial-A-Ride Services  Fiscal Impact: $163,000.  Recommendation: Council authorize the purchase of two transit buses for Dial-A-Ride demand response services from Creative Bus Sales for $147,500. [Public Works] 3. Ordinance to Repeal Title 9, Chapter 6, Medical Marijuana Facilities and Add Chapter 17, Cannabis Activities and Regulations Adult and Medical Use Cannabis Regulations Municipal Code Amendments (PLN 2017-1633)  Fiscal Impact: Enforcement of cannabis regulations will incur additional staff time, as City staff will need to respond to code enforcement issues and provide guidance to individuals with personal cultivation questions.  Recommendation: Council adopt on second reading, by title only, the Draft Ordinance repealing Title 9, Chapter 6, Section 9-6.186, Medical Marijuana Facilities, of the Atascadero Municipal Code, and adding Chapter 17, Cannabis Activities and Regulations within Title 9, of the Atascadero Municipal Code. [Community Development] 4. Letter of Support for Proposition 1 Grant Application - Atascadero Basin Groundwater Sustainability Agency  Fiscal Impact: None.  Recommendations: Council: 1. Support a Proposition 1 grant application for the development of a Groundwater Sustainability Plan for the Atascadero Basin. 2. Authorize Mayor O’Malley and Mayor Pro Tem Fonzi to sign a letter of support for an application for Proposition 1 grant funding for the development of a Groundwater Sustainability Plan for the Atascadero Basin. UPDATES FROM THE CITY MANAGER: (The City Manager will give an oral report on any current issues of concern to the City Council.) Page 2 of 42 COMMUNITY FORUM: (This portion of the meeting is reserved for persons wanting to address the Council on any matter not on this agenda and over which the Council has jurisdiction. Speakers are limited to three minutes. Please state your name for the record before making your presentation. Comments made during Community Forum will not be a subject of discussion. A maximum of 30 minutes will be allowed for Community Forum, unless changed by the Council. Any members of the public who have questions or need information may contact the City Clerk’s Office, between the hours of 8:30 a.m. and 5:00 p.m. at 470-3400, or cityclerk@atascadero.org.) B. PUBLIC HEARINGS: None. C. MANAGEMENT REPORTS: 1. Wastewater Upgrade and Fee Discussion  Fiscal Impact: None.  Recommendation: Council receive and file report. [Public Works] COUNCIL ANNOUNCEMENTS AND REPORTS: (On their own initiative, Council Members may make a brief announcement or a brief report on their own activities. Council Members may ask a question for clarification, make a referral to staff or take action to have staff place a matter of business on a future agenda. The Council may take action on items listed on the Agenda.) D. COMMITTEE REPORTS: (The following represent standing committees. Informative status reports will be given, as felt necessary): Mayor O’Malley 1. City / Schools Committee 2. County Mayors Round Table 3. SLO Council of Governments (SLOCOG) 4. SLO Regional Transit Authority (RTA) 5. Integrated Waste Management Authority (IWMA) Mayor Pro Tem Fonzi 1. Air Pollution Control District 2. Oversight Board for Successor Agency to the Community Redevelopment Agency of Atascadero 3. SLO Local Agency Formation Commission (LAFCo) 4. City of Atascadero Design Review Committee 5. Atascadero Basin Ground Water Sustainability Agency (GSA) Council Member Bourbeau 1. City of Atascadero Design Review Committee 2. Homeless Services Oversight Council 3. City of Atascadero Finance Committee 4. SLO County Water Resources Advisory Committee (WRAC) 5. Ad Hoc Animal Shelter Committee Page 3 of 42 Council Member Moreno 1. California Joint Powers Insurance Authority (CJPIA) Board 2. City of Atascadero Finance Committee (Chair) 3. Economic Vitality Corporation, Board of Directors (EVC) 4. Ad Hoc Animal Shelter Committee Council Member Sturtevant 1. City / Schools Committee 2. League of California Cities – Council Liaison E. INDIVIDUAL DETERMINATION AND / OR ACTION: 1. City Council 2. City Clerk 3. City Treasurer 4. City Attorney 5. City Manager F. ADJOURN Please note: Should anyone challenge any proposed development entitlement listed on this Agenda in court, that person may be limited to raising those issues addressed at the public hearing described in this notice, or in written correspondence delivered to the City Council at or prior to this pub lic hearing. Correspondence submitted at this public hearing will be distributed to the Council and available for review in the City Clerk's office. I, Amanda Muther, Deputy City Clerk of the City of Atascadero, declare under penalty of perjury that the foregoing agenda for the October 24, 2017 Regular Session of the Atascadero City Council was posted on October 18, 2017, at the Atascadero City Hall, 6500 Palma Avenue, Atascadero, CA 93422 and was available for public review at that location. Signed this 18th day of October 2017, at Atascadero, California. Amanda Muther, Deputy City Clerk City of Atascadero Page 4 of 42 City of Atascadero WELCOME TO THE ATASCADERO CITY COUNCIL MEETING The City Council meets in regular session on the second and fourth Tuesday of each month at 6:00 p.m. Council meetings will be held at the City Hall Council Chambers, 6500 Palma Avenue, Atascadero. Matters are considered by the Council in the order of the printed Agenda. Regular Council meetings are televised live, audio recorded and videotaped for future playback. Charter Communication customers may view the meetings on Charter Cable Channel 20 or via the City’s website at www.atascadero.org. Meetings are also broadcast on radio station KPRL AM 1230. Contact the City Clerk for more information (470-3400). Copies of the staff reports or other documentation relating to each item of business referred to on the Agenda are on file in the office of the City Clerk and are available for public inspection during City Hall business hours at the Front Counter of City Hall, 6500 Palma Avenue, Atascadero, and on our website, www.atascadero.org. Contracts, Resolutions and Ordinances will be allocated a number once they are approved by the City Council. The minutes of this meeting will reflect these numbers. All documents submitted by the public during Council meetings that are either read into the record or referred to in their statement will be noted in the minutes and available for review in the City Clerk's office. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting or other services offered by this City, please contact the City Manager’s Office or the City Clerk’s Office, both at (805) 470-3400. Notification at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. TO SPEAK ON SUBJECTS NOT LISTED ON THE AGENDA Under Agenda item, “COMMUNITY FORUM”, the Mayor will call for anyone from the audience having business with the Council to approach the lectern and be recognized. 1. Give your name for the record (not required) 2. State the nature of your business. 3. All comments are limited to 3 minutes. 4. All comments should be made to the Mayor and Council. 5. No person shall be permitted to make slanderous, profane or negative personal remarks concerning any other individual, absent or present This is the time items not on the Agenda may be brought to the Council’s attention. A maximum of 30 minutes will be allowed for Community Forum (unless changed by the Council). If you wish to use a computer presentation to support your comments, you must notify the City Clerk's office at least 24 hours prior t o the meeting. Digital presentations must be brought to the meeting on a USB drive or CD. You are required to submit to the City Clerk a printed copy of your presentation for the record. Please check in with the City Clerk before the meeting begins to announce your presence and turn in the printed copy. TO SPEAK ON AGENDA ITEMS (from Title 2, Chapter 1 of the Atascadero Municipal Code) Members of the audience may speak on any item on the agenda. The Mayor will identify the subject, staff will give their report, and the Council will ask questions of staff. The Mayor will announce when the public comment period is open and will request anyone interested to address the Council regarding the matter being considered to step up to the lectern. If you wish to speak for, against or comment in any way: 1. You must approach the lectern and be recognized by the Mayor 2. Give your name (not required) 3. Make your statement 4. All comments should be made to the Mayor and Council 5. No person shall be permitted to make slanderous, profane or negative personal remarks concer ning any other individual, absent or present 6. All comments limited to 3 minutes The Mayor will announce when the public comment period is closed, and thereafter, no further public comments will be heard by the Council. Page 5 of 42 ITEM NUMBER: A-1 DATE: 10/24/17 Atascadero City Council October 10, 2017 Page 1 of 6 CITY OF ATASCADERO CITY COUNCIL DRAFT MINUTES Tuesday, October 10, 2017 City Hall Council Chambers, 4th floor 6500 Palma Avenue, Atascadero, California (Entrance on Lewis Ave.) REGULAR SESSION – CALL TO ORDER: 6:00 P.M. Mayor O’Malley called the meeting to order at 6:00 p.m. and Council Member Sturtevant led the Pledge of Allegiance. ROLL CALL: Present: Council Members Bourbeau, Moreno, Sturtevant, Mayor Pro Tem Fonzi and Mayor O’Malley. Absent: None. Staff Present: City Manager Rachelle Rickard, Administrative Services Director Jeri Rangel, Public Works Director Nick DeBar, Police Chief Jerel Haley, Community Development Director Phil Dunsmore, Fire Chief Casey Bryson, City Attorney Brian Pierik and Deputy City Manager/City Clerk Lara Christensen. APPROVAL OF AGENDA: MOTION: By Council Member Sturtevant and seconded by Council Member Moreno to: 1. Approve this agenda; and, 2. Waive the reading in full of all ordinances appearing on this agenda, and the titles of the ordinances will be read aloud by the City Clerk at the first reading, after the motion and before the City Council votes. Motion passed 5:0 by a roll-call vote. City Council Regular Session: 6:00 P.M. Page 6 of 42 ITEM NUMBER: A-1 DATE: 10/24/17 Atascadero City Council October 10, 2017 Page 2 of 6 PRESENTATIONS: 1. Proclamation proclaiming October 8-14, 2017 as Fire Prevention Week The City Council presented a Proclamation to members of the Atascadero Fire and Emergency Services Department. A. CONSENT CALENDAR: 1. City Council Draft Action Minutes – September 26, 2017  Recommendation: Council approve the City Council Draft Action Minutes of the September 26, 2017, City Council Meeting. [City Clerk] 2. Annexation of Cerro Roble Development into Community Facilities District 2005-1, Annexation No. 17 (11955 & 11975 Viejo Camino: Tract 3078)  Fiscal Impact: None.  Recommendation: Council adopt Draft Resolution declaring intention to annex territory into Community Facilities District 2005-1 (Public Services) as Annexation No. 17 and to authorize the levy of special taxes therein – (11955 & 11975 Viejo Camino: Tract 3078). [Community Development] 3. FY 2017-2019 Budget Amendment to Incorporate Additional Data for Projects Funded by SB1: The Road Repair and Accountability Act of 2017  Fiscal Impact: None.  Recommendation: Council adopt Draft Resolution amending the Fiscal Year 2017-2019 Budget to incorporate additional data for projects funded by SB1: The Road Repair and Accountability Act of 2017. [Public Works] 4. 1992 Street Assessment District Improvement Project Construction Award  Fiscal Impact: Expenditure of $149,000 in budgeted 1992 Street Improvement Assessment District funds.  Recommendation: Council: 1. Award a construction contract for Base Bid and Bid Alternate No. 1 in the total amount of $149,000 to Intermountain Slurry Seal for the 1992 Street Assessment District Improvement Project (Project No. C2017R01). 2. Authorize the City Manager to execute a contract with Intermountain Slurry Seal in the amount of $149,000 for the construction of the 1992 Street Assessment District Improvement Project. 3. Authorize the Director of Public Works to file a Notice of Completion with the County Recorder upon satisfactory completion of the project. [Public Works] Page 7 of 42 ITEM NUMBER: A-1 DATE: 10/24/17 Atascadero City Council October 10, 2017 Page 3 of 6 <3 years 3 years - 5.99 years 6 years to 9.99 years 10 years or greater 750 hours or more -$ 500.00$ 1,000.00$ 1,500.00$ <750 hours -$ -$ -$ -$ Years of Employment with the City as of 8/31/17 Hours Worked 9/1/16 through 8/31/17 5. Bonus for Select Part-Time Employees  Fiscal Impact: One- time budgeted cost of $9,800.  Recommendation: Council authorize the City Manager to provide one -time lump sum bonuses to part-time employees as follows: 6. Approval of Minor Staffing Changes to Zoo Division and Police Department  Fiscal Impact: The re-organizations are expected to result in minor savings in the first two years of implementation; however, the long-term savings from the proposed changes are negligible.  Recommendation: Council: 1. Concur with minor staffing changes in the Zoo Division, as recommended by the City Manager. 2. Concur with minor staffing changes in the Police Department, as recommended by the City Manager. 3. Amend the Salary Schedule for Fiscal Year 2017 -2018. [City Manager] 7. Appointment of Atascadero Tourism Business Improvement District (ATBID) Board Member to the Visit SLO CAL Tourism Marketing District Board  Fiscal Impact: None.  Recommendation: Council appoint Amar Sohi to serve on the Visit SLO CAL Tourism Marketing Board. [City Manager] MOTION: By Council Member Bourbeau and seconded by Mayor Pro Tem Fonzi to approve the Consent Calendar. (#A-2: Resolution No. 2017-061) (#A-3: Resolution No. 2017-062) (#A-4: Contract No. 2017-018) Motion passed 5:0 by a roll-call vote. On behalf of the City of Atascadero, Mayor O’Malley thanked J.P. Patel for his service on the Visit SLO CAL Tourism Marketing District Board and congratulated Amar Sohi on his appointment to the Visit SLO CAL Tourism Board. UPDATES FROM THE CITY MANAGER: City Manager Rachelle Rickard gave an update on projects and issues within the City. Page 8 of 42 ITEM NUMBER: A-1 DATE: 10/24/17 Atascadero City Council October 10, 2017 Page 4 of 6 COMMUNITY FORUM: The following citizens spoke during Community Forum: None. Mayor O’Malley closed the COMMUNITY FORUM period. B. MANAGEMENT REPORTS: 1. Analyzing the Desirability of a North County Animal Shelter  Fiscal Impact: Expenditure of up to $20,000 in existing budgeted funds.  Recommendation: Council authorize the City Manager to share costs, (at 50% in an amount not exceed $20,000), with the City of Paso Robles’ agreements with Ravatt Albrecht & Associates and Petaluma Animal Services Foundation to prepare an analysis of the cost-effectiveness of developing and operating a North County Animal Shelter. [City Manager] City Manager Rickard gave the staff report and answered questions from the Council. PUBLIC COMMENT: The following citizens spoke on this item: Jerry Clay, Susan Funk and Yvonne H. Mayor O’Malley closed the Public Comment period. MOTION: By Council Member Moreno and seconded by Mayor Pro Tem Fonzi to authorize the City Manager to share costs, (at 50% in an amount not exceed $20,000), with the City of Paso Robles’ agreements with Ravatt Albrecht & Associates and Petaluma Animal Services Foundation to prepare an analysis of the cost- effectiveness of developing and operating a North County Animal Shelter. Motion passed 5:0 by a roll-call vote. Mayor O’Malley recessed the meeting at 7:16 p.m. Mayor O’Malley reconvened the meeting with everyone in attendance at 7:25 p.m. C. PUBLIC HEARINGS: 1. Adult and Medical Use Cannabis Regulations Municipal Code Amendments (PLN 2017-1633)  Fiscal Impact: Enforcement of cannabis regulations will incur additional staff time, as City staff will need to respond to code enforcement issues and provide guidance to individuals with personal cultivation questions.  Recommendation: Council introduce on first reading, by title only, the Draft Ordinance repealing Title 9, Chapter 6, Section 9 -6.186, Medical Marijuana Facilities, of the Atascadero Municipal Code, and adding Chapter 17, Cannabis Activities and Regulations within Title 9, of the Atascadero Municipal Code. [Community Development] Page 9 of 42 ITEM NUMBER: A-1 DATE: 10/24/17 Atascadero City Council October 10, 2017 Page 5 of 6 Ex Parte Communications All Council Members stated they have had no communications on this item. Community Development Director Dunsmore gave the staff report and answered questions from the Council. City Manager Rickard and City Attorney Pierik also answered questions from the Council. An updated, redline version of the Draft Ordinance was provided by staff to the City Council (Exhibit A). Mayor O’Malley opened the Public Hearing and asked if anyone would like to address the City Council on this matter. The following individuals spoke on the matter: Gary Lee and Jim Shannon. Hearing no further requests to speak, Mayor O’Malley closed the Public Hearing. MOTION: By Council Member Sturtevant and seconded by Council Member Bourbeau to introduce on first reading, by title only, the Draft Ordinance as provided during the City Council meeting (Exhibit A) repealing Title 9, Chapter 6, Section 9-6.186, Medical Marijuana Facilities, of the Atascadero Municipal Code, and adding Chapter 17, Cannabis Activities and Regulations within Title 9, of the Atascadero Municipal Code. Deputy City Manager/City Clerk Christensen read the title of the Ordinance: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, REPEALING SECTION 9-6.186, MEDICAL MARIJUANA FACILITIES, OF TITLE 9 OF THE ATASCADERO MUNICIPAL CODE AND ESTABLISHING CHAPTER 17, CANNABIS ACTIVITIES & REGULATIONS Motion passed 5:0 by a roll-call vote. COUNCIL ANNOUNCEMENTS AND REPORTS: The City Council Members made brief announcements. D. COMMITTEE REPORTS: The following Council Members gave brief update reports on their committees since their last Council meeting: Mayor O’Malley 1. County Mayors Round Table Page 10 of 42 ITEM NUMBER: A-1 DATE: 10/24/17 Atascadero City Council October 10, 2017 Page 6 of 6 Mayor Pro Tem Fonzi 1. Air Pollution Control District 2. City of Atascadero Design Review Committee 3. Atascadero Basin Ground Water Sustainability Agency (GSA ) Council Member Moreno 1. Economic Vitality Corporation, Board of Directors (EVC) 2. Ad Hoc Animal Shelter Committee 3. E. INDIVIDUAL DETERMINATION AND / OR ACTION: None. F. ADJOURN Mayor O’Malley adjourned the meeting at 9:06 p.m. MINUTES PREPARED BY: ______________________________________ Lara K. Christensen Deputy City Manager / City Clerk The following exhibit is available for review in the City Clerk’s office:  Exhibit A – Updated, redline version of Draft Ordinance provided to the City Council. APPROVED: Page 11 of 42 ITEM NUMBER: A-2 DATE: 10/24/17 Atascadero City Council Staff Report – Public Works Department Purchase of Two Transit Buses for Dial-A-Ride Services RECOMMENDATION: Council authorize the purchase of two transit buses for Dial-A-Ride demand response services from Creative Bus Sales for $147,500. DISCUSSION: Background: The City of Atascadero operates a Dial-A-Ride program that provides curb-to-curb public transportation to those living and working in Atascadero. This customized service provides affordable travel, designed around individual needs, that allows riders to decide where and when to be picked up within the City Limits. All buses are equipped with wheelchair lifts to provide individuals, in need of mobility accommodations, an opportunity to use this service. Atascadero’s Dial-A-Ride program uses three transit buses for demand response service on weekdays from 7:30 am to 4:30 pm. Service is not provided during evenings, weekends, or holidays. A fourth bus is kept in the fleet as a back -up when maintenance or repairs are needed on one of the other buses. The City employs two part-time transit dispatchers who receive requests and schedule bus pick -ups/drop-offs. Bus drivers are provided by contract with MV Transportation. The City and other Public Transportati on Providers receive funding from the Federal Transit Administration (FTA) to operate public transportation services – primarily through FTA 5307 and 5339 funding for capital, operating, and planning assistance for the delivery of public mass transportatio n. The San Luis Obispo Council of Governments (SLOCOG) is the designated Metropolitan Planning Organization (MPO) and Regional Transportation Planning Agency (RTPA) for San Luis Obispo County. SLOCOG oversees the Regional Transportation Improvement Program (RTIP) and Federal Transportation Improvement Program (FTIP), and administers FTA 5307 and 5339 funding locally. Page 12 of 42 ITEM NUMBER: A-2 DATE: 10/24/17 Summary: Small transit buses, used as primary demand response vehicles , have useful lives of four years or 100,000 miles, depending on funding availability and bus performance. The back-up bus is commonly the last primary demand response transit bus retired from service. The current Dial-A-Ride fleet is comprised of the following transit buses: Bus No. Manufacture Year Mileage #24* 2009 160,945 #26 2010 154,489 #27 2015 50,781 #28 2017 4,294 *back-up Analysis: The current City budget includes monies for the purchase and replacement of two Dial- A-Ride transit buses. Transit buses are procured through the Vehicle and Materials Purchasing Cooperative, formed jointly by the California Association for Coordinated Transportation (CalACT) and the Morongo Basin Transit Authority (MBTA). This cooperative allows member agencies to procure transit vehicles and transit shelters. The procurement and award procedures approved by the State of California Department of Transportation Division of Mass Transportation meet all Federal Transit Administration requirements for third party contracts. Participation in the procurement saves considerable staff time that would otherwise be spent developing specifications and soliciting bids, and is compliant with the City’s purchasing policy. Staff received a quote for $147,500 for two Starcraft Buses, Class C Ford (E450) transit buses from Creative Bus Sales via the Vehicle and Materials Purchasing Cooperative . The buses will replace two of the older, higher mileage transit buses in the Dial-A-Ride fleet. The quote includes components for ADA compliance, such as wheelchair lift s, bike racks, and other amenities. Sales tax, preparation, delivery, and other fees are also included in the quote. Each bus will be outfitted, after delivery, with graphics (~$2,500), radios (~$500), back-up cameras (~$300), and include radio/back-up camera installation (~$900) which totals approximately $4,200 per bus. FISCAL IMPACT: The fiscal year 2017/2018 budget includes $163,000 for transit bus procurement, funded entirely with federal and state monies administered by SLOCOG. ATTACHMENTS: None. Page 13 of 42 ITEM NUMBER: A-3 DATE: 10/24/17 Atascadero City Council Staff Report - Community Development Department Adult and Medical Use Cannabis Regulations Municipal Code Amendments (PLN 2017-1633) RECOMMENDATION: City Council adopt on second reading, by title only, the Draft Ordinance, repealing Title 9, Chapter 6, Section 9-6.186, Medical Marijuana Facilities, of the Atascadero Municipal Code, and adding Chapter 17, Cannabis Activities and Regulations within Title 9, of the Atascadero Municipal Code. DISCUSSION: The Draft Ordinance repeals Title 9, Chapter 6, Section 9-6.186, Medical Marijuana Facilities, of the Atascadero Municipal Code, and replaces it with an entire new Chapter (Chapter 17), that will contain Cannabis Activities and Regulations. The following is a summary of the proposed Municipal Code Amendments:  Establish definitions specific to cannabis activities  Establish personal cultivation standards that to allow up to six (6) cannabis plants for personal indoor or outdoor cultivation, consistent with State established personal exemptions  Allow for adult and medical cannabis deliveries, from distribution centers located outside the City Limits, to residents of the City, provided these businesses meet established regulations, obtain a state license and obtain a business license  Allow for State licensed testing facilities, within certain non-residential zones, with either a Major Conditional Use Permit, or an Administrative Use Permit On June 27, 2017, the City Council conducted a public hearing to consider the proposed amendments to Title 9. At that meeting, the Council voted 5-0 to introduce the text change for first reading at the October 10, 2017, City Council meeting. The proposed text amendment is a necessary response to Proposition 64 and Senate Bill 94, which allow for a state licensing process for commercial cannabis activities, not withstanding a local ordinance. Page 14 of 42 ITEM NUMBER: A-3 DATE: 10/24/17 FISCAL IMPACT: Enforcement of cannabis regulations will incur additional staff time, as City staff will need to respond to code enforcement issues and provide guidance to individuals with personal cultivation questions. ATTACHMENT: Draft Ordinance Page 15 of 42 ITEM NUMBER: A-3 DATE: ATTACHMENT: 10/24/17 1 DRAFT ORDINANCE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, REPEALING SECTION 9-6.186, MEDICAL MARIJUANA FACILITIES, OF TITLE 9 OF THE ATASCADERO MUNICIPAL CODE AND ESTABLISHING CHAPTER 17, CANNABIS ACTIVITIES & REGULATIONS WHEREAS, an application has been received from the City of Atascadero to amend Title 9, Planning and Zoning, to implement provisions of the Medicinal and Adult Use of Cannabis Regulation and Safety Act (MAUCRSA) and certification of a Negative Declaration ("ND") for new regulations pertaining to cannabis regulations within the City of Atascadero; and WHEREAS, the City has analyzed the proposed zoning amendment and determined that it is not a project within the meaning of section 15378 of the California Environmental Quality Act (“CEQA”) Guidelines because it has no potential for resulting in a physical change in the environment, either directly or ultimately; and WHEREAS, in the event that the proposed amendment is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility of a significant effect on the environment; and WHEREAS, pursuant to Government Code sections 65854 and 65855, the Planning Commission has the authority to review and make recommendations to the City Council regarding amendments to the City’s zoning ordinances; and WHEREAS, on September 8, 2017, the City published a notice of public hearing, in the Atascadero News, of the Planning Commission’s intent to discuss and consider an amendment to the City’s zoning ordinances; and WHEREAS, on September 19, 2017, the Planning Commission held a duly noticed public hearing, at which interested persons had an opportunity to testify in support of, or in opposition to, the proposed amendment to the City’s zoning ordinance and at which time the Planning Commission considered the proposed amendment to the City’s zoning ordinance and recommended approval of the proposed ordinance; and WHEREAS, on September 26, 2017, the City published a notice of public hearing in the Atascadero News of the City Council’s intent to discuss and consider an amendment to the City’s zoning ordinances; and WHEREAS, on October 10, 2017, the City Council held a duly noticed public hearing, at which interested persons had an opportunity to testify in support of, or in opposition to, the proposed amendment to the City’s zoning ordinance and at which time the City Council considered the proposed amendment to the City’s zoning ordinance; and Page 16 of 42 ITEM NUMBER: A-3 DATE: ATTACHMENT: 10/24/17 1 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ATASCADERO HEREBY ORDAINS AS FOLLOWS: SECTION 1. The City Council hereby incorporates the foregoing recitals and makes the following findings, with respect to the Atascadero Municipal Code, Title 9, zoning, text and map amendments: A. Findings for Approval of a Zone Text Change Amendment repealing Section 9-6.186 of Title 9 and establishing Chapter 17, Cannabis Activities & Regulations in Title 9. 1. FINDING: The Planning and Zoning Text Change is consistent with General Plan policies and all other applicable ordinances and policies of the City. FACT: The proposed ordinance is consistent with the City’s General Plan policies and applicable ordinances and policies of the City. 2. FINDING: This Amendment, of the Zoning Ordinance, will provide for the orderly and efficient use of lands where such development standards are applicable. FACT: The proposed ordinance includes development standards for personal indoor cultivation of cannabis, outdoor cultivation of cannabis, testing facilities, and delivery services located outside the City limits. The proposed development standards ensure the health, safety, and welfare of surrounding residents. 3. FINDING: The Text Change will not, in and of itself, result in significant environmental impacts. FACT: The proposed ordinance will not result in significant environmental impacts, as the ordinance is exempt from CEQA, and at this point, it is speculative to consider potential new testing facilities and their potential locations. 4. FINDING: Proposed Plans, if any, offer certain redeeming features to compensate for requested modification. SECTION 2. Repeal and Establish. The City Council of the City of Atascadero, in a regular session assembled on October 10, 2017 resolved to introduce on first reading by title only, a Draft Ordinance that would repeal section 9-6.186 of Title 9 of the City’s Zoning Ordinance and establish Chapter 17 of Title 9 of the City’s Zoning Ordinance. SECTION 3. Adoption. The City Council of the City of Atascadero, in a regular session assembled on October 24, 2017 adopted on second reading this Ordinance hereby adding Chapter 17 of the Atascadero Municipal Code as follows: Chapter 17 Cannabis Activities & Regulations 9-17.001 Title. This chapter shall be known as the Cannabis Regulations of the City of Atascadero. Page 17 of 42 ITEM NUMBER: A-3 DATE: ATTACHMENT: 10/24/17 1 9-17.002 Purpose and Intent. (a) Purpose. It is the purpose and intent of this chapter to implement the provisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”) and to provide access to adult-use of cannabis for persons over the age of 21 as authorized by t he Control, Tax & Regulate the Adult Use Cannabis Act (“AUMA” or “Proposition 64” passed by California voters in 2016), while imposing sensible reasonable regulations on the use of land to protect the City’s residents, neighborhoods, and businesses from disproportionately negative impacts. As such, it is the purpose and intent of this chapter to regulate the cultivation, processing, manufacturing, testing, sale, delivery, distribution and transportation of medicinal and adult-use cannabis and cannabis products in a responsible manner to protect the health, safety, and welfare of the residents of Atascadero and to enforce rules and regulations consistent with state law. (b) The City makes no representation as to whether the possession, use, or provision of cannabis and/or cannabis products under this chapter is consistent with federal law. (c) Additional Provisions. The provisions of this chapter are in addition to any other permits, licenses and approvals which may be required to conduct business in the City, and are in addition to any permits, licenses and approval required under state, county, or other law. 9-17.003 Definitions. For the purposes of this chapter, the following definitions shall apply. (a) Accessory Structure. An accessory structure is a detached structure, with a “u” occupancy that is accessory to and subordinate to the primary residential use. (b) Cannabis. “Cannabis” shall have the meaning set forth in Business and Professions Code section 26001(f), which includes all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this chapter, “cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code. (c) Cannabis Canopy. All areas occupied by any portion of a cannabis plant, encompassing all vertical planes (i.e. stacking of plants), whether contiguous or noncontiguous on any one site. Cannabis Canopy” shall be measured by taking the longest length and widest width of existing plants (including all gaps and open areas between plants) and multiplying the length and width to get square footage. (d) Cannabis Greenhouse. A fully enclosed permanent structure that is clad in transparent material. Cannabis cultivation within an enclosed, non-transparent greenhouse is considered indoor cultivation. Page 18 of 42 ITEM NUMBER: A-3 DATE: ATTACHMENT: 10/24/17 1 (e) Cannabis Hoop Structure. A readily removable plastic covered hoop structure without in-ground footings or foundations, which are not more than 12 feet in height and do not have vertical sides that exceed 4 feet in height. Cannabis hoop structures are accessory uses on residential land use categories which shall not exceed 120 square-feet. Cannabis cultivation within hoop structures is considered outdoor cultivation. (f) Cannabis Testing Facility. A facility, entity, or site that offers or performs testing of cannabis or cannabis products and that is both accredited by an accrediting body that is independent from all other persons involved in the cannabis industry in the state, and registered with and licensed by the California State Department of Public Health. (g) Commercial Cannabis Activity. “Commercial cannabis activity” shall have the meaning set forth in Business and Professions Code section 26001(k), which includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis or cannabis products as provided in MAUCRSA (Business and Professions Code sections 26000 et seq.) and for which a state license is required. Commercial cannabis activity shall also include the sale or distribution of cannabis and/or cannabis products, in exchange for compensation in any form, for medicinal purposes under Health and Safety Code sections 11362.5 and 11362.7 and following. (h) Cultivation. “Cultivation” shall have the meaning set forth in Business and Professions Code section 26001(l), which includes any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. (i) Day Care Center. “Day care center” shall have the same meaning as Health and Safety Code section 1596.76, which any child day care facility other than a family day care home, and includes infant centers, preschools, extended day care facilities, and school -age child care centers. (j) Fully Enclosed Structure. A fully enclosed space within a building or separate structure that complies with the California Building Code (CBC), as adopted by the City of Atascadero, or if exempt from the permit requirements of the CBC, that has a complete roof, foundation, slab or equivalent base to which the floor is secured by bolts or similar attachments, and non-transparent walls on all sides. (k) Indoor Cultivation. Cultivation, as defined in subsection h, of this section, within a fully enclosed structure, as defined in subsection j, of this section. (l) Outdoor Cultivation. Any location within the City of Atascadero that is not within a fully enclosed structure, or cannabis green house, as defined in subsection d of this section. (m) Personal Cultivation. Cultivation of cannabis at a private residence, as defined by subsection n of this section, for non-commercial cannabis activities, which is defined in subsection g. Page 19 of 42 ITEM NUMBER: A-3 DATE: ATTACHMENT: 10/24/17 1 (n) Private Residence. A house, apartment unit, mobile unit, or other similar dwelling unit that is legally permitted within the City of Atascadero, and is considered a residential occupancy type in the California Building Code, as adopted by the City of Atascadero. (o) Retail Cannabis Delivery Center. A “Retail Cannabis Delivery Center” is a facility from which deliveries of cannabis and/or cannabis products originate pursuant to orders placed by customers inside and/or outside the City. (p) School. A private or public educational facility providing instruction in kindergarten or grades 1 through 12. (q) State Cannabis Laws. “State Cannabis Laws” shall mean and include California Health and Safety Code Sections 11362.1 through 11362.45; California Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996); California Health and Safety Code Sections 11362.7 to 11362.83 (Medical Marijuana Program Act); California Health and Saf ety Code Sections 26000 through 26211 (Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”)); California Health and Safety Code Sections 26220 through 26231.2; the California Attorney General’s Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use issued in August, 2008, as such guidelines may be revised from time to time by action of the Attorney General; California Labor Code Section 147.5; California Revenue and Taxation Code Sections 31020 and 34010 through 34021.5; California Fish and Game Code Section 12029; California Water Code Section 13276; all state regulations adopted pursuant to MAUCRSA; and all other applicable laws of the state of California. (r) Youth Center. “Youth center” shall have the same meaning as Health and Safety Code section 11353.1, which includes any public or private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities. 9-17.004 Personal Cannabis Cultivation. The following regulations pertain to the personal cultivation of cannabis. (a) All cannabis cultivation is prohibited within the City except that no more than six (6) living cannabis plants may be planted, cultivated, harvested, dried, or processed within a single private residence, or upon the grounds of that private residence, at one time. In no instance may personal cultivation occur on vacant property. (b) Indoor Cultivation Regulations. Indoor cultivation on residential properties is subject to the following regulations: (1) Indoor cannabis cultivation shall only occur inside a private residence or an accessory structure to a private residence that is fully enclosed and secured against unauthorized entry. (2) Sleeping Rooms within Residential Occupancies. Indoor cultivation may not occur inside rooms designed for sleeping. Sleeping rooms are defined by the California Building Code for residential occupancies. Page 20 of 42 ITEM NUMBER: A-3 DATE: ATTACHMENT: 10/24/17 1 (c) Outdoor Cultivation. Outdoor cultivation on residential properties is subject to the following regulations: (1) Visibility. Outdoor cannabis cultivation shall not be visible from public rights- of-way or neighboring properties. (2) Screening. Outdoor cannabis cultivation must be completely screened with permanent fencing and / or landscaping. Fencing must be compatible with the neighborhood and be constructed of wood pickets, block, or other typical fencing materials. (3) Prohibited Fence Types. Electrical fencing, razor wire fencing, chain link fencing, barbwire, plywood, and unfinished materials. Shade cloth, plastic, plywood, OSB, and other temporary screening materials shall not be allowed. (4) Fencing Height. Fencing for screening of outdoor cannabis cultivation must not exceed seven (7) feet in height, measured from natural grade. Additional plastic or other materials attached, suspended, or supported beyond the seven (7) foot height limitation shall be prohibited. (d) Setbacks. Personal cannabis cultivation shall be subject to the following setback requirements: (1) Property line. Cannabis greenhouses, cannabis hoop-structures, and all outdoor cannabis cultivation must be located 15 feet or more from the edge of property lines. (2) Distance from Adjacent Residences. Cannabis greenhouses, cannabis hoop- structures, and all outdoor cannabis cultivation must be located 25 feet or more from the nearest adjacent residence. (3) Front Setback. No cannabis cultivation may occur within a designated front setback as defined in Section 9-4.106 of this title. (e) Total Coverage of Personal Cannabis Cultivation. (1) Indoor Cannabis Cultivation. Indoor cannabis cultivation shall not take up more than 120 square feet of indoor residential space. (2) Outdoor Cannabis Cultivation. Outdoor cannabis cultivation shall not take up more than 120 square feet of cannabis canopy coverage. (f). Property Owner Consent. Where a private residence is not occupied or inhabited by the owner of the residence, the owner of the property must provide written consent expressly allowing cannabis cultivation to occur at said private residence. (g) Applicability of Adopted Building Codes. All personal cannabis cultivation at a private residence shall comply with applicable Building Code requirements set forth in the Atascadero Municipal Code Title 8. Page 21 of 42 ITEM NUMBER: A-3 DATE: ATTACHMENT: 10/24/17 1 (h) Use of Solvents. There shall be no use of gas products (CO2, butane, propane, natural gas, etc.) on a property for purposes of cannabis cultivation. (i) Waste Disposal. The following regulations apply to the disposal of cannabis waste on residential property: (1) Cannabis and cannabis infused products must be disposed in a s ecure waste receptacle located on the residential property. (2) Cannabis plants and products must be rendered unusable and unrecognizable by grinding and incorporating cannabis waste with any non-consumable solid waste with a resulting mixture of at least 50 percent non-cannabis waste. 9-17.005 Commercial Cannabis Activities. All commercial cannabis activities are prohibited unless specifically allowed in this Table 17-1. It shall be unlawful for any person to commence, operate, engage in, to conduct, or carry on (or to permit to be commenced, operated, engaged in, conducted or carried on) in or upon any property located within the City a commercial cannabis activity unless that person does so in strict compliance with State Cannabis Laws, this section, and all applicable Municipal Code provisions. (a) Table 17-1 identifies the uses of commercial cannabis activities that are permitted in non-residential districts, and the planning permit required to establish each use, in compliance with Chapters 9-1 and 9-2 of this code. Table 17-1 – Commercial Cannabis Use Table Allowed Land Uses and Permit Requirements Non-Residential Zones A Allowed Use, Zoning Clearance Required CUP Conditional Use Permit Required (Major) AUP Administrative Use Permit Required  Not Permitted Use Permitted Uses By Zones CN CP CR CS CT CPK DC DO IP I Commercial Cannabis Activity Testing Facility CUP CUP AUP AUP AUP AUP 9-17.006 Commercial Cannabis Activities Development Standards. (a) Cannabis Testing Facilities. The following are development standards for cannabis testing facilities: (1) On-Site Sales. Retail or wholesale sales to the public are prohibited. (2) Distance. Cannabis testing facilities shall be prohibited within 600 feet of schools, parks, and youth centers. (3) Signage. Signage shall be limited to 15 square feet in size. (b) Cannabis Deliveries. The following standards apply to Cannabis delivery services located outside the incorporated City Limits of the City of Atascadero: Page 22 of 42 ITEM NUMBER: A-3 DATE: ATTACHMENT: 10/24/17 1 (1) Deliveries within Incorporated City Limits. State-licensed Retail Cannabis Delivery Centers located outside the City may personally deliver cannabis and cannabis products to individuals located at private residences within the City, provided that such deliveries are in strict compliance with State Cannabis Laws and have obtained a business license tax certificate and paying the applicable business license tax under Municipal Code Chapter 3-5. All other deliveries of cannabis and/or cannabis products are prohibited. (2) Vehicle Advertising. Vehicles used in the delivery process must be unmarked without any designation or logo that identifies the vehicle as a cannabis delivery vehicle. (3) Delivery Times. Cannabis and cannabis product deliveries within the City may not occur between 11:00 p.m. and 7:00 a.m. 9-17.007 Commercial Cannabis Application and Procedures. (a) Application Requirements. Any person applying for an AUP or CUP for a cannabis testing facility, as allowed under this chapter, must submit the following information with their application: (1) The name of the proposed cannabis testing facility including, if applicable, the name on file with the California Secretary of State and any fictitious business names and/or DBA’s. (2) The location of the proposed cannabis testing facility (must comply with the zoning and location restrictions set forth above). (3) The names, addresses, and contact information for each owner of the proposed cannabis testing facility. (4) If the proposed cannabis testing facility is incorporated, the names, titles, addresses, and contact information of each corporate officer, the name, address, and contact information of the agent for service of process, a certified copy of the articles of incorporation, and copy of the bylaws. (5) If the proposed cannabis testing facility is a partnership, the names, addresses, and contact information for each partner and the agent for service of process. (6) The name and contact information for each manager of a proposed commercial cannabis business, establishment, or facility. If such information is not available at the time the application is submitted, the proposed commercial cannabis business, establishment, or facility shall submit such information to the Community Development Department as soon as it becomes available. (7) For each owner, corporate officer, partner, manager, employee, or volunteer, a criminal history (“LiveScan”) prepared not more than two weeks prior to the date of submitting the application demonstrating that there are no pending charges or convictions for a felony, a felony or misdemeanor involving moral turpitude, or any crime involving the sale, possession for sale, manufacture, transportation, cultivation, or distribution of a controlled substance within the Page 23 of 42 ITEM NUMBER: A-3 DATE: ATTACHMENT: 10/24/17 1 previous ten years, and that the subject is not currently on parole or probation for the sale, possession for sale, manufacture, transportation, cultivation, or distribution of a controlled substance. For each owner, corporate officer, partner, manager, employee, or volunteer who becomes part of a cannabis testing facility after the required permit is issued, the cannabis testing facility must submit the required criminal history to Community Development Department within two weeks of the new owner, corporate officer, partner, manager, employee, or volunteer joining the operation. (8) A site plan and operations plan that demonstrate how the proposed cannabis testing facility has already complied or will comply with the requirements of this chapter. (9) A copy of all required permits and certificates under Title 8 (Buildings Code) of this Code or an acknowledgment that the proposed cannabis testing facility will obtain all required permits and certificates under Title 8 prior to its opening, establishment, operation, and/or commencement. (10) The name, address, and contact information for the owner of the property on which the proposed cannabis testing facility will be located. (11) An agreement signed by the owner of the property on which the proposed cannabis testing facility is located consenting to use of the property as a cannabis testing facility and agreeing to indemnify, defend (with an attorney selected by the city), and hold harmless The City of Atascadero from any claims, damages, legal or enforcement actions arising from the use of the property as a cannabis testing facility. (12) Any supplemental information requested by the Community Development Director or their designee to establish compliance with the requirements of this chapter. 9-17.008 Commercial Cannabis Application Approval or Denial of Entitlement. (a) Criteria for Issuance or Denial of Permit. In addition to the criteria for land use permits set forth in this Title, the Planning Commission, or the City Council on appeal, shall consider the following criteria in determining whether to grant or deny a land use permit for a cannabis testing facility: (1) That the proposed location of the cannabis testing facility is not identified by the City Chief of Police, or their designee, as an area of increased or high crime activity. (2) For those applicants who have operated other businesses within the City, that there have not been significant numbers of calls for police service, crimes or arrests in the area of the applicant’s other business. (3) That the location is not prohibited by the provisions of this section or any local or state law, statute, rule, or regulation, and no significant nuisance issues or problems are likely or anticipated, and that compliance with other applicable requirements of the City’s Zoning Ordinance will be accomplished. Page 24 of 42 ITEM NUMBER: A-3 DATE: ATTACHMENT: 10/24/17 1 (4) That the operations plan and site plan have incorporated features necessary to assist in reducing potential crime-related problems and as specified in the operating requirements section. These features may include, but are not limited to, security on-site; procedure for allowing entry; openness to surveillance and control of the premises; the perimeter, and surrounding properties; reduction of opportunities for congregating and obstructing public ways and neighboring property; illumination of exterior areas; and limiting furnishings and features that encourage loitering and nuisance behavior. (5) That all reasonable measures have been incorporated into the operations plan and site plan or consistently taken to successfully control and/or prevent disturbances, vandalism, traffic problems, cannabis use in public, public or private nuisances, or interference in the operation of another business. (6) That the cannabis testing facility is likely to have no potentially adverse effect on the health, peace, or safety of persons living or working in the surrounding area, overly burden a specific neighborhood, or contribute to a public nuisance. (7) That any provision of the Municipal Code or condition imposed by a City- issued permit, or any provision of any other local or state law, regulation, or order, or any condition imposed by permits issued in compliance with those laws, will not be violated. (8) That the applicant has not made a false statement of material fact or has omitted to state a material fact in the application for a permit. (9) That the applicant has not engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices with respect to the operation of another business. 9-17.009 Commercial Cannabis Operational Requirements. (a) Operational Requirements (1) A cannabis testing facility permitted under this section may only operate between the hours of 7:00 a.m. and 8:00 p.m. (2) A cannabis testing facility permitted under this chapter must comply with all applicable State Cannabis Laws. (3) A cannabis testing facility permitted under this chapter must comply with all applicable provisions of Title 8 of this Code. (4) A cannabis testing facility permitted under this section may not employ any person who is not at least 18 years of age. (5) A cannabis testing facility permitted under this section shall not conduct or engage in the commercial or retail sales of any cannabis or cannabis products on the premises of the cannabis testing facility. (6) No cannabis cultivation may occur on the property of a cannabis testing facility permitted under this chapter. Page 25 of 42 ITEM NUMBER: A-3 DATE: ATTACHMENT: 10/24/17 1 (7) A cannabis testing facility permitted under this chapter may not allow or permit the use, inhalation, smoking, eating, ingestion, or consumption of cannabis or cannabis products on the property of the commercial cannabis activity, including in the parking areas of such property. (8) Criminal Background Requirements. (i) No person who is currently charged with or has been convicted within the previous ten years of a felony, a felony or misdemeanor involving moral turpitude, or any crime involving the sale, possession for sale, manufacture, transportation, cultivation, or distribution of a controlled substance, shall be an owner, corporate officer, partner, manager, employee, or volunteer of a cannabis testing facility permitted under this chapter. A conviction within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendre or no contest. (ii) Prior to commencing any work within or on behalf of a cannabis testing facility permitted under this chapter, each owner, corporate officer, partner, manager, employee, and volunteer must complete a current criminal history background check that demonstrates compliance with subsection (g)(13)(i). Each criminal history background check must be updated every 12 months. (iii) A cannabis testing facility permitted under this section shall maintain a complete register of each owner, corporate officer, partner, manager, employee, and volunteer working for and/or associated with the cannabis testing facility, including a copy of each required criminal history background check. The register and required records must be made available for inspection by any city officer or official for purposes of determining compliance with this chapter. (iv) A cannabis testing facility permitted under this chapter shall notify the city in writing of any disqualifying conviction described in subsection (g)(13)(i) for an owner, corporate officer, partner, manager, employee, or volunteer within 10 days of the conviction. (v) A cannabis testing facility permitted under this chapter may submit to the Police Chief a written request for a waiver of the prohibition in subsection (g)(13)(i) with regard to a particular owner, corporate officer, partner, manager, employee, or volunteer, on the ground that such person’s involvement with the cannabis testing facility will not pose a threat to public safety. The Police Chief, in his or her unfettered discretion, may deny such a written request, subject to the appeal procedures set forth in Municipal Code sections 1-2.13 through 1-2.16. (9) A cannabis testing facility permitted under this chapter shall provide the name, phone number, facsimile number, and e-mail address of a manager or representative who can be reached 24 hours a day in the event that the city decides to provide notice of an operating problem associated with the cannabis testing facility. Page 26 of 42 ITEM NUMBER: A-3 DATE: ATTACHMENT: 10/24/17 1 (10) Disposal of chemical, dangerous or hazardous waste must be conducted in a manner consistent with federal, state and local laws, regulations, rules or other requirements. Cannabis waste must be made unusable and unrecognizable prior to leaving the licensed premises by grinding it and incorporating it with fifty percent non-cannabis waste. (11) A cannabis testing facility permitted under this chapter must pay any applicable taxes pursuant to federal, state, and local law. (12) A cannabis testing facility permitted under this chapter shall provide a secured storage area on-site. All cannabis and cannabis products shall be stored in this area during non-business hours. 9-17.010 Suspension and Revocation of Entitlement. (a) Suspension and Revocation: (1) Authority to Suspend or Revoke. Any permit issued for a cannabis testing facility may be suspended or revoked by the Planning Commission if it shall appear to the Commission that the permittee has violated any of the requirements of this chapter or the Municipal Code, the permittee is operating in a manner which violates the operational requirements or operational plan required by this chapter, the permittee is operating in a manner which constitutes a nuisance, the permittee’s state license under MAUCRSA has been suspended, revoked, or terminated, or the permittee is operating in a manner which conflicts with state or federal law. (2) Annual Review of Permitted Cannabis Testing Facilities. The Community Development Department and the Police Department are hereby authorized to conduct an annual review of the operation of each permitted cannabis testing facility within the City for full compliance with the operational, recordkeeping, nuisance and all other requirements of this chapter. A fee in an amount established by resolution of the City Council may be established in order to reimburse the City for the time involved in the annual review process. The staff may initiate a permit suspension or revocation process for any cannabis testing facility which, upon completion of an annual review, is found not to be in compliance with the requirements of this chapter or which is operating in a manner which constitutes a public nuisance. Staff may, based upon its annual review of the operation of a cannabis testing facility, place on a Planning Commission meeting agenda, a proposal to suspend or revoke a cannabis testing facility permit. (3) Except as otherwise provided in this chapter, no permit shall be revoked or suspended by the Planning Commission under the authority of this section until written notice of the intent to consider revocation or suspension of the permit has been served upon a permittee at least 10 days prior to the date set for such review hearing. Such revocation or suspension notice shall state the specific reasons for the proposed suspension or revocation and must have been provided to the permittee in writing prior to the hearing. Such notice shall contain a brief statement of the grounds to be relied upon for revoking or suspending such permit. Notice may be given either by personal delivery to the permittee, or by depositing such notice in the U.S. mail in a sealed envelope, postage prepaid (via regular mail and return receipt requested), addressed to the person to be notified at his or her address as it appears in his or her application for a permit. Page 27 of 42 ITEM NUMBER: A-3 DATE: ATTACHMENT: 10/24/17 1 9-17.011 Enforcement. The City may enforce this chapter in any manner permitted by law. Any violation of this chapter shall be and is hereby declared to be a public nuisance and contrary to the public interest and shall, at the discretion of the City, create a cause of action for injunctive relief. SECTION 4. CEQA. This Ordinance is not a project within the meaning of section 15378 of the California Environmental Quality Act (“CEQA”) Guidelines because it has no potential for resulting in physical change in the environment, either directly or ultimately. In the event that this Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility of a significant effect on the environment. SECTION 5. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this ordinance. The City Council hereb y declares that it would have passed this ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 6. Publication. The City Clerk shall cause this ordinance to be published in full once within fifteen (15) days after its passage in the Atascadero News, a newspaper of general circulation, printed, published, and circulated in the City in accordance with Section 36933 of the Government Code. The City Clerk shall also certify the adoption and posting of this ordinance, and shall cause this ordinance and certification together to be entered into the Book of Ordinances of the City. Page 28 of 42 ITEM NUMBER: A-3 DATE: ATTACHMENT: 10/24/17 1 INTRODUCED at a regular meeting of the City Council held on October 10, 2017, and PASSED and ADOPTED by the City Council of the City of Atascadero, State of California, on ________________________________, by the following roll call vote: AYES: NOES: ABSTAIN: ADOPTED: CITY OF ATASCADERO, CA ______________________________ Tom O’Malley, Mayor ATTEST: ______________________________ Lara K. Christensen, City Clerk APPROVED AS TO FORM: ______________________________ Brian A. Pierik, City Attorney Page 29 of 42 ITEM NUMBER: A-4 DATE: 10/24/17 Atascadero City Council Staff Report – City Manager’s Office Letter of Support for Proposition 1 Grant Application Atascadero Basin Groundwater Sustainability Agency RECOMMENDATIONS: 1. Council support a Proposition 1 grant application for the development of a Groundwater Sustainability Plan for the Atascadero Basin. 2. Council authorize Mayor O’Malley and Mayor Pro Tem Fonzi to sign a letter of support for an application for Proposition 1 grant funding for the development of a Groundwater Sustainability Plan for the Atascadero Basin. DISCUSSION: In 2014, the California Legislature adopted, and the Governor signed into law, three bi lls (SB 1168, AB 1739, and SB 1319) collectively referred to as the Sustainable Groundwater Management Act (SGMA), that became effective on January 1, 2015. SGMA requires the formation of Groundwater Sustainability Agencies (GSAs) to undertake groundwater sustainability through the adoption and implementation of Groundwater Sustainability Plans (GSPs) for all medium and high priority basins as designated by the California Department of Water Resources (DWR). Also in 2014, California voters approved Proposition 1 (AB 1471) which enacted the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Act) that authorizes the issuance of bonds to finance, among other things, a Sustainable Groundwater Planning Grant Program. DWR opened the Sustainable Groundwater Planning Grant Program’s expedited “Groundwater Sustainability Plans and Projects” solicitation, available to GSAs for high and medium priority basins to support activities associated with the planning, development, or preparation of GSPs in compliance with the applicable regulatory requirements. On May 23, 2017, the City Council adopted Resolution No. 2017 -023 to participate in and jointly form the Atascadero Basin Groundwater Sustainability Agency (GSA). A Memorandum of Agreement (MOA) between the City of Atascadero, City of Paso Robles, County of San Luis Obispo, and the Templeton Community Services District jointly was executed forming the GSA and establishing governance of the GSA by an Executive Committee. This Executive Committee is comprised of representatives from Page 30 of 42 ITEM NUMBER: A-4 DATE: 10/24/17 the above-mentioned forming parties (the government entities) and participating parties (Atascadero Mutual Water Company and other water purveyors). Mayor Pro Tem Fonzi represents the City on the Executive Committee. The Executive Committee of the GSA held its first meeting on October 4, 2014. Following nominations for officers of the Executive Committee, the Committee elected Mayor Pro Tem Fonzi as Chair. At this meeting, it was also reported that the Atascadero Mutual Water Company (AMWC) would explore the possibility of applying for funding from the California Department of Water Resources’ Sustainable Groundwater Planning Grant program for the planning, development and preparation of the Atascadero Basin GSP. AMWC has agreed to be the lead entity in hiring a consultant to prepare an application for Proposition 1 grant funding to offset 50 percent of the costs of developing the GSP . At this time, which agency will submit the grant application is still being explored. Although one entity will be the submitting the application, it will be on behalf of the entire Groundwater Sustainability Agency. The grant, if awarded, will significantly reduce the costs, associated with the GSP, to the Forming Parties and Participating Parties of the Atascadero Basin GSA. The Executive Committee will meet later this month to authorize support of the application for grant funding. Forming and participating parties of the GSA will also be submitting letters of support to further the likelihood of the application’s success. FISCAL IMPACT: None. ALTERNATIVES: Council may choose not to issue a letter of support. ATTACHMENTS: None. Page 31 of 42 ITEM NUMBER: C-1 DATE: 10/24/17 Atascadero City Council Staff Report - Public Works Department Overview of Water Reclamation Facility and Wastewater Collection System Master Plan Updates RECOMMENDATION: Council receive and file report. REPORT-IN-BRIEF: Draft master plans were prepared for the wastewater treatment and sanitary collection facilities to evaluate key issues, programs, projects, and associated budgets to ensure current and future needs are and will be met in the next twenty years. The water reclamation facility (WRF) is roughly 35 years old and is approaching the end of its useful design life. Existing flows are near design capacity and anticipated future flows cannot be accommodated without major improvements. As a result of water conservation and water conserving building code mandates, the strength of wastewater to the WRF has increased to a level the current facility was not designed to handle. Focus areas for existing and future deficiencies are secondary wastewater treatment processes (stabilization ponds) and sludge management. Primary treatment (headworks) and disposal (percolation) appear to function for future needs with only minor improvements. The wastewater collection system is also aging and in need of repairs, improvements, and modifications. Generally, the capacity of the system components (pipelines, forcemains, and lift stations) appear to be meeting current needs. Most future needs can also be accommodated as-is or with increased capacity as part of planned system repairs and improvements. DISCUSSION: Background: The City of Atascadero owns and operates a water reclamation facility (WRF) and a wastewater collection system comprised of gravity sewers, lift stations, and force mains that collect and transport sewage to the WRF for safe and reliable treatment. The City took ownership of the wastewater collection and treatment systems from the Atascadero County Sanitation District (formed in 1956) following the 1982 construction of the current Page 32 of 42 ITEM NUMBER: C-1 DATE: 10/24/17 WRF located on at the end of Gabarda Road. The original treatment plant was located behind Colony Park Community Center near Lift Station No. 5. The City’s wastewater collection and treatment systems serve approximately 5,000 parcels and roughly half of the City’s current population, with the remainder of City residents utilizing onsite wastewater treatment systems for sewage treatment and disposal. Master plans are prepared for water and wastewater facilities to evaluate key issues, programs, projects, and associated budgets to ensure current and future needs are being met. Similar to a general plan for city development, utility master plans are the planning documents for water and wastewater facilities that forecast needs and issues into the next twenty years. Master plan updates are typically prepared every ten years or so, and other detailed studies and evaluations may take place as needed between these updates. The City retained Michael K. Nunley and Associates (MKN) to prepare master plan updates for the W RF and wastewater collection system. The master plans include a visual condition assessment of existing facilities, hydraulic and treatment capacity evaluations, identified system deficiencies based on existing flows, identified potential future deficiencies based on future flows, and recommended capital improvement projects (CIPs) to address the deficiencies. The purpose of this staff report is to provide a general overview of the master plans including discussion on key issues. MKN is planning to provide a presentation to the Council for this item, including answering questions or providing clarifications on the master plan updates. Wastewater Treatment 101: Wastewater treatment facilities could be considered giant chemistry laboratories. Raw sewage, that is dangerously harmful to humans, enters the treatment facility and is transformed into treated “clean” water and placed back into the environment. Treatment facilities exploit those same harmful microorganisms in wastewater to perform the bulk of wastewater processing, by creating processes and conditions that promote their growth, to destroy and break down organic and inorganic substances. Biochemical processes use and produce energy and waste, which is then decomposed through oxidation and reduction reactions. Wastewater is further processed to remove suspended solids, chemical compounds (phosphorus, ammonia, etc.), and infectious organisms. Organic material and bacteria are generally still present in treated wastewater (effluent), but discharging to a flowing surface water will substantially dilute the remaining contaminants. Alternatively, effluent can be discharged over porous soils and further filtered and treated by the underlying soils and replenish groundwater supplies (these types of treatment facilities, like Atascadero’s, are called “water reclamation facilities” or WRF for short). Water Reclamation Facilities Overview: The Atascadero WRF includes an RV waste receiving facility, comminuter and flow meter station, headwork screens, aerated lagoon, facultative lagoon, polishing pond, a chlorine contact chamber that has been repurposed for post‐aeration chamber, recirculation pump station, percolation basins, and sludge drying beds. The facility also includes a controls/office building and a building with conference room and restroom. Additional buildings on the property are utilized for other Public Works operations. A layout of the WRF is shown on the following page. Page 33 of 42 ITEM NUMBER: C-1 DATE: 10/24/17 Atascadero’s WRF was originally designed to treat an Average Daily Flow (ADF) of 1.40 million gallons per day (MGD) and configured for a four-stage treatment process that includes preliminary treatment, secondary treatment, disinfection, and disposal. Preliminary treatment is performed by the mechanical bar screen to remove litter and debris. Secondary treatment is performed by s tabilization ponds (aeration, facultative, and polishing) where the bulk of wastewater processing is completed using biological treatment. A byproduct of this secondary treatment is decomposed waste known as sludge, which settles at the bottom of the ponds (primarily the facultative pond) and is removed three times a year. Lastly, the treated effluent is discharged to the percolation ponds and filtered by the underlying soils before flowing into the groundwater basin. An irrigation well, located downgradient of the percolation basins, extracts a mix of treated effluent and groundwater for reuse as irrigation at Chalk Mountain Golf Course. The following figure provides an overview of the treatment process and identifies when each component of the WRF was originally constructed and/or rehabilitated. Page 34 of 42 ITEM NUMBER: C-1 DATE: 10/24/17 Permitted Waste Discharge Requirements: The Atascadero WRF is permitted through the California Regional Water Quality Control Board with Waste Discharge Requirements Order No. 01‐014. The permit authorizes discharge of up to 2.39 MGD of treated wastewater through percolation basins on a maximum month basis. It provides discharge specifications, including requirements for treated effluent quality, and a monitoring and reporting program. The effluent limitations are summarized in Table 6-1. Additionally, the following groundwater limitations are specified in the permit:  The discharge shall not cause nitrate concentrations in the groundwater downgradient of the disposal area to exceed 8 mg/L (as Nitrogen).  The discharge shall not cause a significant increase of mineral constituent concentrations in underlying groundwaters, as determined by comparison of samples collected from wells located upgradient and downgradient of the disposal area.  The discharge shall not cause concentrations of chemicals and radionuclides in groundwater to exceed limits set forth in Title 22, Chapter 15, Article 4 and 5 of the California Code of Regulations. Page 35 of 42 ITEM NUMBER: C-1 DATE: 10/24/17 Although the permitted Maximum Monthly Flow (average daily for month with highest flow) for effluent discharge from the WRF is 2.39 MGD, the highest measured MMF in the master planning period was 1.77 MGD. 2011 Plant Audit Finding: In 2011, the City hired AECOM to perform an audit of the WRF that provided an evaluation of the wastewater flows and loading, plant hydraulics and treatment capacity, and recommendations for addressing issues and improving operations at the plant. At the time, the main issues at the plant were operational challenges during wet weather seasons and storm events, frequent ragging of mechanical surface aerators, uneven accumulation of sludge in treatment ponds, and complaints of odors received from nearby residents. The audit review of theoretical aeration requirements indicated that treatment capacity at the plant is limited by hydraulic retention time, and additional capacity cannot be obtained from the existing treatment process by increasing or enhancing aeration. The Plant Audit also noted that “… hydraulic retention time in the aerated pond is lower than typically recommended for design, and organic loading relative to pond areas is very high. Prolonged operation of pond systems at low retention times could result in significant operational problems…” In short, additional volume would be required to significantly increase hydraulic retention time. Ability of Existing WRF System to Meet Existing and Future Flows and Loadings: Existing flows to the WRF are very close to design flow capacity and will not accommodate expected future flows without modifications or improvements. In addition, the strength of existing influent to the facility is much stronger than what the WRF was designed to accommodate. When the WRF was constructed 35 years ago, water conservation measures and low-water use toilets, faucets, showers, etc. were non- existent. These measures and items are now mandated by building codes and state/local regulations, which decreases flow but increases wastewater strength. The WRF is also currently experiencing difficulties with hydraulic capacity during wet weather events, sludge management, operational issues, and seasonal odors. Although the WRF is meeting current waste discharge requirements, it is at the end of its design life and is not performing at the level expected and needed. The main deficiencies with current wastewater processing at the WRF are secondary treatment and sludge management, which are related. Computer modeling done as part of the master plan suggests that secondary treatment is experiencing significant aeration from wind mixing in the facultative and polishing ponds. Wind mixing is typically not considered when designing treatment systems since it is unreliable for treatment. The wind action is likely assisting in meeting the effluent waste discharge requirements, but is also a likely source of public complaints regarding odors. Sludge management is a byproduct of secondary wastewater treatment. This waste material is harvested from the bottom of the treatment ponds (primarily the facultative pond) and placed onto concrete slabs to dry. The existing flows produce an estimated 786,400 pounds, or 247,340 cubic feet (CF), of sludge each year. The master plan Page 36 of 42 ITEM NUMBER: C-1 DATE: 10/24/17 estimates a volume deficiency of 152,840 CF/year or 50,947 square feet (SF) of drying bed area at one foot deep for current conditions, and 222,740 CF/year or 74,247 SF for future conditions. Given the shallow depth of the facultative and polishing ponds and substandard retention time, it is likely that sludge is leaving the pond through effluent. On a positive note, preliminary treatment (headwork bar screen) and disposal (percolation basins) are capable of handling existing and future flows and loadings with little or no improvements. No modifications to the headworks are needed, but upsizing discharge pipes to each percolation basin will increase the hydraulic capacity of effluent flow. Wastewater Collection System Overview: Approximately 11,000 parcels and (15,000 acres) are located within the City limits. Currently wastewater service is limited to approximately 5,000 parcels covering an estimated 1,900 acres, including a majority of the businesses within the City limits. Land uses served by the City’s sewer system include residential, retail, office, commercial and light industrial developments. Privately owned and maintained on‐site septic systems are utilized by the remainder of the City. A map showing parcels served is included below. Page 37 of 42 ITEM NUMBER: C-1 DATE: 10/24/17 The sewer collection system consists of 12 active lift stations, approximately 6.8 miles of forcemains, and more than 63 miles of gravity sewer mains and trunk lines ranging in size from 4 to 21 inches in diameter. A series of gravity collection system mains and lift stations convey most of the wastewater flow from the northern portion of the system to Lift Station 5. Flow from the southern portion of the system drains to Lift Station 3. Lift Stations 3 and 5 pump directly to the WRF. A schematic showing the pump flow is shown to the right. The average daily flow (ADF) collected by the system is currently estimated to be close to 1.40 MGD with future flows projected to be 1.75 MGD. Future estimated expansion of the Wastewater Collection Service Area (WCSA) was determined from approved residential and commercial development projects, potential residential and commercial development projects (Eagle Ranch), and residential and commercial vacant parcels identified to receive wastewater services based on their General Plan designation. The design capacity of the WRF is limited to an Average Daily Flow (yearly average) of 1.40 MGD with measured ADF fluctuating between 1.22 and 1.38 MGD during the master planning period. This indicates that the WRF is nearing its design capacity after 35 years, triggering the need to begin planning for the next generation of improvements. Although the flow data may seem to indicate that the WRF is ready to fail, capacity is only one measure of performance for wastewater treatment. This philosophy can also be applied to the aging lift stations, forcemains, and gravity sewers. While this infrastructure is aging and showing signs of deterioration, there have been no significant failures of the infrastructure requiring the City to undertake large-scale remediation efforts. Planning improvements, and securing grants and other funding sources, typically take several years to develop. The City is fortunate to still be in a position where decision- making is proactive, not reactive, to plan for system improvements to address current and future needs, including how to fund improvements. The City is able to control these processes, with the end goal of safe and reliable treatment as well as maximizing reuse of wastewater, realizing the lowest life cycle costs. Recommended Capital Improvements for Treatment and Collection A capital improvements plan was developed summarizing the recommendations to address existing and future deficiencies and needs at the WRF as discussed above. A variety of alternatives, options, and costs were evaluated to determine the recommendations. A Draft 10-Year Capital Improvement Plan summarizing all recommended water reclamation and wastewater collection improvements is attached. A brief description of each proposed project is included on the following page. Page 38 of 42 ITEM NUMBER: C-1 DATE: 10/24/17 WRF Process Improvements and Upgrades (WRF-01) -Est. Cost: $19.6M Construct a new extended aeration system (e.g., oxidation ditch or wave oxidation) to replace the existing stabilization pond system. When compared to pond systems, extended aeration systems improve effluent quality and reliability, and have the advantage of allowing for future higher level tertiary treatment. These systems typically have lower energy requirements and smaller footprints than conventional pond systems. Extended aeration systems achieve a higher level of treatment than pond systems by employing a longer solids retention time (SRT), increasing the stability of the system to allow for fluctuating loads under similar operating conditions. The process utilizes aeration and secondary clarification. Solids (“mixed liquor suspended solids” or “activated sludge”) are returned from the secondary clarifier back to the aeration zone for the longer SRT. Excess solids are wasted, typically to a thickener and/or dewatering system for volume reduction. Project components will include extended aeration system, sludge dewatering system and drying beds, clarifiers, RAS/WAS pumping system, piping and valves, distribution boxes, controls building, electrical instrumentation and controls, earthwork, influent lift station and forcemain, sitework, and other related work, work for installing new inlet pipelines to the five percolation basins, replacing influent flow meters and corporation building laterals, relocating RV dump station, and addition of a permanent standby generator. Lift Station No. 2 Replacement (LSF-01)- Est. Cost: $1.3M This lift station is 28 years old and in very poor condition; requiring significant maintenance to keep operational. There is a major corrosion issue likely due to hydrogen sulfide gas. To make matters worse, the lift station is situated in the sidewalk area of El Camino Real just north of the State Hospital entrance – creating potential safety issues for staff and public. It is anticipated the lift station will be abandoned and a new one will be reconstructed nearby – potentially directly across El Camino Real, or convert to gravity flow including upsizing of downstream, hydraulically deficient gravity sewers. Lift Station No. 4,7,9,11,15 Rehab. and Improvements (LSF-02)- Est. Cost: $445,000 This project would address a variety of minor work to rehabilitate and improve multiple lift station components including pumps, piping, electrical, controls, appurtenances, and site and safety improvements. Lift Station No. 13 Forcemain Modifications (LSF-03)- Est. Cost: $909,000 Construct forcemain modifications by realigning/relocating piping in Del Rio Road to Traffic Way. The project will reduce complaints caused by odors by relocating the force main discharge point away from a residential area. The current force main configuration requires chemical purchase, handling, and injection at the lift station. Lift Station No. 5 and Forcemain Replacements (LSF-04)- Est. Cost: $6.61M This lift station is 43 years old and in relatively poor condition. The lift station is planned to be replaced at its current location and to optimize its operation. The associated downstream forcemain is 2-miles long and constructed of asbestos cement pipe, making it a high risk for wastewater spills. This forcemain is also planned to be replaced. Page 39 of 42 ITEM NUMBER: C-1 DATE: 10/24/17 Traffic Way Sewer Improvements (GCS-01)- Est. Cost: $1.857M Replacement of approximately 5,230 feet of 8, 10, 12, and 18 -inch gravity sewer pipe with 15 and 18-inch gravity sewer pipe along Traffic Way from San Jacinto Avenue to Lift Station No. 5 to address existing peek flows in sewer exceeding pipe capacity. Highway 41 and El Camino Real Sewer Improvements (GCS-02)- Est. Cost: $1.38M Replacement of approximately 3,500 feet of 8, 10, and 15-inch gravity sewer pipe with 10, 12, and 18-inch gravity sewer pipe in the vicinity of Highway 41, El Camino Real, and Colony Square to address existing peek and future flows in sewer exceeding pipe capacity. Various Locations Sewer Condition Improvements (GCS-03)- Est. Cost: $2.833M There is currently approximately 55,630 lineal feet (10.5+ miles) of gravity sewer mains with various deficiencies identified from video surveys. Project involves repair, rehabilitation, or replacement of approximately 20%, or roughly 11,120 lineal feet, in the 10-year CIP. Conclusions:  The WRF has been operating as-is, with only minor improvements, for the past 35+ years at its original design capacity. Wastewater operation staff should be commended for the excellent work they’ve done to keep the existing facility operational and maintained for that duration, as well as keeping service charges low.  The WRF is experiencing flows that are close to maximum design flow capacity and at the end of its useful design life. In addition, the current strength of influent is much stronger, due to water conservation and low-flow fixtures, than what the WRF secondary treatment (stabilization pond) process is designed to accommodate.  There is no room to expand the stabilization pond system to address current and future treatment demands, and an extended aeration system and biosolids improvements are recommended to replace the pond system. This system is a better “fit” for Atascadero’s influent and will address current deficiencies, system fluctuations, and allow stricter waste disposal requirements to be met. Preliminary treatment and disposal (percolation basins) need only minor modifications to accommodate the new system and to meet future demand.  The wastewater collection system is aging and requires replacement of several dilapidated lift stations (2 and 5), forcemains, and gravity sewers (Traffic Way, Highway 41/ECR). Overall, the system is accommodating current demands and much of the capacity increase needs are anticipated to occur with improvements to address current deficiencies or life cycle replacements.  Sanitary sewer service charges have not increased in 24 years (still $20.18/month). While this amount is the lowest sewer charge in the County, steep increases may be needed to “catch up” and to fund recommended capital improvements. Developer related charges and fees may likely increase also to cost share in capacity improvements. Page 40 of 42 ITEM NUMBER: C-1 DATE: 10/24/17 FISCAL IMPACT: While there is no fiscal impact to receiving this report, there is a significant fiscal impact to implement the recommended capital improvements described in this report. It should be anticipated that sanitary sewer service charges will increase. Below is a comparison of local sewer service charges. ALTERNATIVES: Various alternatives for capital improvements were examined and analyzed as part of the master plan updates, especially with the Water Reclamation Facility secondary treatment options. Some of these options and alternatives will be evaluated further during project design, such as extended aeration systems and dewatering technologies. ATTACHMENT: 10-Year Capital Improvement Plan (Draft) – Water Reclamation and Wastewater Collection $112.30 $102.97 $62.50 $54.60 $45.89 $43.33 $37.52 $37.09 $26.09 $25.28 $24.21 $23.96 $20.18 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 $110 $120 Avila Beach CSD San Luis Obispo Morro Bay Paso Robles Nipomo CSD Pismo Beach Templeton CSD San Miguel CSD Heritage Ranch Grover Beach Oceano CSD Arroyo Grande Atascadero Current Rates Local Agency Monthly Wastewater Bill Comparison May 2017 Page 41 of 42 10-YEAR CAPITAL IMPROVEMENT PLAN ***DRAFT***CITY OF ATASCADERO WATER RECLAMATION AND WASTEWATER COLLECTION OCTOBER 2017 Project No.Total FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 FY26/27 WRF-01 WRF Process Improvements and Upgrades 19,600,000$ 2,940,000$ 8,330,000$ 8,330,000$ WRF-02 Aerator Replacement Program*36,000$ 18,000$ 18,000$ -$ WRF-03 Percolation Basin Capacity Evaluation*32,000$ 32,000$ WRF-04 Dredge Pipe Replacement*32,000$ 32,000$ Subtotal 19,700,000$ 18,000$ 50,000$ 2,972,000$ 8,330,000$ 8,330,000$ -$ -$ -$ -$ -$ LSF-01 Lift Station No. 2 Replacement 1,300,000$ 195,000$ 1,105,000$ LSF-02 Lift Station No. 4,7,9,11,15 Rehab. and Improvements 445,000$ 445,000$ LSF-03 Lift Station No. 13 Forcemain Modifications 909,000$ 137,000$ 772,000$ LSF-04 Lift Station No. 5 and Forcemain Replacements 6,610,000$ 992,000$ 5,618,000$ Subtotal 9,264,000$ 195,000$ 1,105,000$ 445,000$ 137,000$ 772,000$ 992,000$ 5,618,000$ -$ -$ -$ GCS-01 Traffic Way Sewer Improvements 1,857,000$ 279,000$ 1,578,000$ GCS-02 Highway 41 and El Camino Real Sewer Improvements 1,380,000$ 207,000$ 1,173,000$ GCS-03 Various Locations Sewer Condition Improvements 2,833,000$ 425,000$ 1,204,000$ 1,204,000$ GCS-04 Manhole Rehabilitation and Sewer Line Repairs*1,000,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ GCS-05 Inflow and Infiltration Study*85,000$ 27,500$ 27,500$ 30,000$ GCS-06 Sewer System Management Plan Audit*75,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ Subtotal 7,230,000$ 142,500$ 127,500$ 145,000$ 100,000$ 394,000$ 1,678,000$ 322,000$ 1,698,000$ 1,319,000$ 1,304,000$ Total 36,194,000$ 355,500$ 1,282,500$ 3,562,000$ 8,567,000$ 9,496,000$ 2,670,000$ 5,940,000$ 1,698,000$ 1,319,000$ 1,304,000$ Estimated Project Cost Project Name ITEM NUMBER: C-1 DATE: 10/24/17 ATTACHMENT: 1 Page 42 of 42