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HomeMy WebLinkAboutMinutes 031296 Approved as Submitted Meeting Date: 03/26/96 ATASCADERO CITY COUNCIL MARCH 12, 1996 MINUTES CLOSED SESSION: The City met in Closed Session at 6:00 p.m. for purposes of discussions pertaining to: 1. CONFERENCE WITH LABOR NEGOTIATOR: Agency negotiator: City Manager Employee organizations: Management; Mid-Management/Professional; Fire Captains; Firefighters; Atascadero Sergeants Service Orgn.; Atascadero Police Officers Assoc.; Atascadero Public Safety Technicians Orgn.; Service Employees Intl. Union; Confidential Employees 2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Name of Case: Santa Lucia Neighbors Assoc. v. City of Atascadero The City Manager reported that the City Council had given him direction on Item #1, discussed Item #2 and added, by motion duly made and unanimously passed, an item of potential litigation. He noted that no action was taken on Items #2 or #3. Closed Session adjourned at approximately 6:50 p.m. REGULAR SESSION: The Mayor called the meeting to order at 7:03 p.m. and led the Pledge of Allegiance. ROLL CALL: Present: Councilmembers Bewley, Carden, Johnson, Luna and Mayor Highland Absent: None Also Present: Rudy Hernandez, City Treasurer and Lee Price, City Clerk Staff Present: Andy Takata, City Manager; Art Montandon, City Attorney; Roy Hanley, Deputy City Attorney; Brady Cherry, Director of Community Services; Brad Whitty, Finance Director; Steve DeCamp, City Planner; Lt. Bill Watton, Police Department; Steve Sylvester, City Engineer; John Neil, Assistant City Engineer and Gary Kaiser, Assistant Planner CC 03/12/96 Page 1 SPECIAL PRESENTATIONS: Special recognition of Atascadero Lions Club for rebuilding the pier at Atascadero Lake The Mayor presented a plague to David Graham and Gerald Blangsted, who accepted on behalf of the Atascadero Lions Club. Certificate of Appreciation to Traffic Committee Member Jerry L. Ferguson The Mayor presented a Certificate of Appreciation to Jerry L. Ferguson for his services to the Traffic Committee from September of 1994 to date and expressed gratitude. COMMUNITY FORUM: City Attorney: Status report on the Millhollin Mine (verbal) See Item #C-1 Deputy City Attorney: Status report on the adult book store (verbal) See Item #C-3 Leo Korba shared concern regarding recent Council action to loan money from the Wastewater Fund to the General Fund and suggested that the City Council relate to the public how it will be paid back. He asserted that cash flow projections are needed to prove that it can be done. Mr. Korba also reported that he has contacted the Public Utilities Commission to inquire about the possibility of making calls from Atascadero to San Luis Obispo toll-free. He noted that he would soon receive a petition required by the PUC to begin the process. Anne McMahon, Atascadero Youth Task Force, provided the first status report about this new committee and shared the mission statement. Additional updates will be provided, she noted. Joan O'Keefe, 9985 Old Morro Road East, voiced concerns about the recent loan of Wastewater Fund monies to the General Fund and questioned whether or not the transaction had been a gift of public funds. In addition, Ms. O'Keefe referred to previous "pro-development" Council actions whereby development fees were waived or developers were given special consideration and expressed concern about the impact that those decisions have had on the City's financial situation. She commented that she opposes the proposed hiring of an Economic Development Director and cautioned the City Council to get back to the basics in these times of financial difficulties. A. CONSENT CALENDAR: The Mayor read the Consent Calendar as follows: 1. CITY COUNCIL MINUTES - February 21, 1996 (Special Meeting) (City Clerk's recommendation: Approve) CC 03/12/96 Page 2 2. CITY COUNCIL MINUTES - February 27, 1996 (City Clerk's recommendation: Approve) 3. APPROVAL OF WARRANTS - January, 1996 (Staff recommendation: Approve) 4. CONSIDERATION OF NEW LOCATION FOR CHILDREN'S MURAL PROJECT AT LAKE PARK PAVILION (Staff/Parks & Rec. Commission recommendation: Approve proposed location) 5. RESOLUTION NO. 18-96 - Opposing Proposition 199 relative to mobilehome rent control and protesting the attempt to remove local government control (Staff recommendation: Adopt) 6. RESOLUTION NO. 19-96 - Supporting introduction and adoption of a validating act in response to Santa Clara County Local Transportation Authority v. Guardino (League of CA Cities recommendation: Adopt) Councilman Carden pulled Item #A-5. MOTION: By Councilman Luna, seconded by Councilman Johnson to approve Items #A-1, 2, 3, 4 and 6; motion carried 5:0. Councilman Luna expressed appreciation to Brady Cherry for his efforts on behalf of the City Council on Item #A-4. Re: Item #A-5. RESOLUTION NO. 18-96 Opposing Proposition 199 relative to mobilehome rent control and protesting the attempt to remove local government control (Staff recommendation: Adopt) Councilman Carden indicated that he objected to the fourth "whereas" in the resolution and mentioned that he believed Council action on the 27" of February reflects that there was not consensus to include language of this nature. MOTION: By Councilman Carden, seconded by Councilman Bewley to approve Resolution No. 18-96, as amended by removing the fourth "whereas"; motion passed unanimously by roll call vote. B. PUBLIC HEARINGS: 1. GENERAL PLAN AMENDMENT 95007, 6625 NAVAJOA AVE. A. Resolution No. 15-96 - Approving an amendment to the General Plan Land Use Map of the Land Use Element at 6625 Navajoa Ave. (Planning Commission recommendation: Adopt) CC 03/12/96 Page 3 B. Ordinance No. 301 - Amending the official zoning maps by rezoning certain real property at 6625 Navajoa Ave. from CP (Commercial Professional) to RMF 10 (PD#7) (ZC 95-010; Gearhart) (Planning Commission recommendation: Motion to introduce and adopt on first reading by title only) C. Tentative Parcel Map 95006 - Subdivision of one parcel located at 6625 Navajoa Ave. into four lots to accommodate residential development(Planning Commission recommendation: Approve) Steve DeCamp provided the staff report and recommendations to approve. Brief Council questions followed. Public Comments: John Faulkenstein, representing the applicant, reported that he was in concurrence with staff recommendations and availed himself for questions. Eric Greening, 7365 Valle, commented_that the zone change makes a lot of sense, although pointed out that the design appears to create a flag lot. He added that he hopes approval won't set an undesirable precedent. ---end of public testimony--- MOTION: By Councilman Carden, seconded by Councilman Bewley to approve Resolution No. 15-96; motion passed 5:0 by roll call vote. MOTION: By Councilman Carden, seconded by Councilman Johnson to waive the reading in full and introduce Ordinance No. 301 on first reading by title only; motion passed 5:0 by roll call vote. MOTION: By Councilman Carden, seconded by Councilman Johnson to approve Tentative Parcel Map 94005; motion passed unanimously by roll call vote. 2. TENTATIVE TRACT MAP 94005, 9244-9248 SAN RAFAEL RD. A. Ordinance No. 299 Amending Map 23 of the official zoning maps by rezoning certain real properties at 9244-9248 San Rafael Rd. from RMF/10 to RMF/10 (PD7) (ZC 94007 - O'Reilly/Vaughan) (Planning Commission recommendation: Motion to introduce and adopt on first reading by title only) B. Tentative Parcel Map 94005 - Consideration of application to subdivide a 1 .60 acre property into nine (9) lots for single family residential development using the Planned Development Overlay Zone #7 (PD7) (O'Reilly Family Trust) CC 03/12/96 Page 4 (Planning Commission recommendation: Approve) Steve DeCamp provided the staff report and recommendations. He explained that the Planning Commission had recommended the elimination of one lot (No. 9) adjacent to the freeway. Council questions followed. Public Comments: Tom Vaughan, representing the applicant, spoke in support of the application and requested that the ninth lot be restored. ---end of public testimony--- Responding to Council inquiry, Steve DeCamp reported that the acreage of the lot eliminated would be added to the adjoining lots to expand the size of the individual lots. Mayor Highland commented that he supports the removal of the ninth lot. MOTION: By Councilman Luna, seconded by Councilman Johnson to approve Zone Change 94007, waive the reading in full and introduce Ordinance No. 299; motion passed 3.2 (Carden, Bewley opposed). MOTION: By Councilman Luna, seconded by Councilman Johnson to approve Tentative Parcel Map 94005; motion passed 3.2 (Carden, Bewley opposed). C. REGULAR BUSINESS: 1. MILLHOLLIN MINE - Receive new information (Staff recommendation: Provide staff direction) Gary Kaiser provided the staff report and summarized new important information gathered at the Special Meeting on February 21St. He emphasized that at the time the existing reclamation plan for the Millhollin Quarry was approved, the County of San Luis Obispo was not a legitimate lead agency and therefore not authorized to approve the plan. He also noted that a recent Supreme Court ruling, Hansen Brothers Enterprises v. The Board of Supervisors of Nevada County, et aL sheds light on vested mining rights. Mr. Kaiser recommended that the City Council require an amended Reclamation Plan as required by the Surface Mining and Reclamation Act (SMARA) and reported that all parties have agreed that extraction and eventual closure of the mine shall be defined by the previously submitted subdivision plan prepared by Omni Design Group (to be referred to as the "Omni Plan") on behalf of the property owners, Glenn and Darlene Millhollin. Council questions followed regarding the process. Gary Kaiser indicated that there are two steps: 1) making the application complete at the staff level and 2) the prescribed process of approving the plan, including a 45-day review period at the State level. He speculated that it would take approximately one month to get the application ready for public hearing and estimated that the entire process could require up to ninety days to complete. CC 03/12/96 Page 5 The Mayor explained that the Omni Plan allows for a maximum of 120-140,000 cubic yards of additional mining (120,000 cubic yards of material removal and another 20,000 cubic yards of earth and material re-distributed on the site). He noted that if operations continue under the Interim Operating Agreement (although expired, still being followed), 20,000 cubic yards per year may be removed. The result, he clarified, would be eventual closure and reclamation of the land in approximately 6 years. Pursuant to Hansen Bros, if there is legitimate demand for more than 20,000 cubic yards within a year, the mine could conceivably close sooner, he concluded. Public Comments: Tom Torgerson, 6200 Llano Road, gave his allotted time of five minutes to his wife, Marcia. Marcia Torgerson, 6200 Llano Road, read a prepared statement supporting the staff recommendation (see Exhibit A). Fred Strong, land use consultant for the Millhollins, summarized two reports which he submitted for the record (filed under separate cover in the City Clerk's Office). He reported that the Millhollins have agreed to voluntary compliance despite the fact that they contend that the existing reclamation plan is adequate. Dorothy Flaherty, 12100 Santa Lucia, read a prepared statement asking what the City will do to ensure compliance with SMARA (see Exhibit B) and requesting that the site be surveyed. John Belsher, legal counsel for the Millhollins, reported that all parties have agreed to the preparation of an amended reclamation plan, although it is not required by State law. He asserted that the State Mining and Geology Board does not agree that there is a requirement for an amended plan and assured Council that the Board has been consulted every step of the way. Mr. Belsher argued that the oral opinion rendered by the Board at the special meeting relative to a site survey is being used as a tool by the Santa Lucia Neighbors Association for their lawsuit. The Millhollins have agreed to terms in the Omni Plan, he added, and proclaimed that there is no point in requiring a survey. Supporting this comment, Mr. Belsher noted that engineering analyses show that the operation is within the boundaries of the original plan. Jim Brenton, 11465 Santa Lucia Road, spoke in support of the staff recommendation and expressed gratitude to the Mayor for arranging the workshop with the Mining Board. He explained that he had three suggestions: 1) establish a time limit for submission of the plan, 2) until the amended reclamation plan is approved, limit the amount of material to that which is presently stock-piled at the base of the quarry and 3) if the new amended plan extends the boundaries of the quarry, require the operator to obtain a non-conforming use permit. Daphne Fahsing, 5105 Llano Road, spoke in favor of the staff recommendation and expressed concerns about how much more material will be taken off the hilltop. Gary Kaiser responded that there may be up to 12 feet in some locations, based on the plan. Mrs. Fahsing commented that the Neighbors may be willing to CC 03/12/96 Page 6 drop the lawsuit if the situation is resolved by June 10tH Marcia Torgerson, speaking for a second time, addressed comments made by Mr. Belsher and reiterated some of her earlier comments. ---end of public testimony--- Additional Council questions and comments followed. Staff reported that the amended reclamation plan will be done in-house. He emphasized that most of the information necessary to complete the plan is already available, with the exception of revised cost estimates relative to financial assurances. In addition, he clarified that CEQA and State Mining & Geology Board review can be done concurrently. Councilman Luna asserted that the City owes it to the neighborhood to place this matter as a top priority. Councilman Luna asked the City Attorney about the possibility of adopting an extraction ordinance similar to the one that the County has in place so that the City can receive a certain amount of money per cubic yard of what is removed. Art Montandon advised that recent Supreme Court rulings require that a logical nexus be established and indicated that this type of ordinance can only be tied to an application approval where impacts are identified and mitigated, in part, by entering into an extraction agreement with the land user. He noted that an extraction agreement may also be considered as part of an operational agreement depending upon what factual basis the City has to include in the agreement. By mutual concurrence, the City Council directed staff to proceed with the amended reclamation plan, research the possibility of adopting an extraction agreement and/or ordinance, and to bring back a status report in thirty days. The Mayor called a break at 8:20 p.m. The meeting reconvened at 8:40 p.m. 2. 1995 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING - Consideration of a revised spending plan for the funding of ADA improvements to the City Administration Building (Staff recommendation: Approve) Brady Cherry provided the staff report and recommendation. Council questions followed. Public Comments: Rush Kolemaine, Potrero Road resident, spoke in favor of the recommendation and asked if any other funding sources have been identified. Brady Cherry remarked that CDBG monies have been determined to be a funding source that the City can look towards to ensure continued progress. Don Shear, Chairman of the Board for SLOCO ACCESS, applauded the Council for allocating the funds to get a plan started and indicated that he would be willing to consult and advise the City. Paul Wolfe, Vice Chairman of the Board for SLOCO ACCESS, also verbalized CC 03/12/96 Page 7 support and clarified that the Americans with Disabilities Act is a civil rights law and addresses more than architectural barriers. ---end of public testimony--- Brady Cherry reported that staff will prepare a Request for Proposals with hopes of finding a firm that will do both the self-evaluation and transition plan. He noted, however, that it may be necessary to select two different firms to complete the work. MOTION: By Councilman Carden, seconded by Councilman Luna to approve the staff recommendation; motion carried 5.0 by roll call vote. 3. ATASCADERO SEXUALLY-ORIENTED BUSINESS ORDINANCE A. Ordinance No. 298 - Establishing the Atascadero Sexually-Oriented Business Ordinance by dispersing sexually-oriented businesses and limiting them to specified zoning districts; providing for licensing and regulation of sexually-oriented businesses and employees; and providing additional health and safety regulations for sexually-oriented businesses (Staff recommendation: Motion to adopt on second reading by title only) B. Ordinance No. 300 - Amending the Zoning Ordinance text to implement and conform to the provisions of the Atascadero Sexually- Oriented Business Ordinance (ZC 95-005; City of Atascadero) (Staff recommendation: Motion to adopt on second reading by title only) Roy Hanley provided the staff report and recommendations to adopt both ordinances on second reading by title only. He noted that a modification requested by Council at the meeting of February 27t' to further define display space will come back to Council shortly. The modification, he added, does not require a hearing at the Planning Commission level. Public Comments: Regina Foster, Paso Robles resident, shared concerns regarding provisions for access by minors (even when accompanied by an adult) to sexually explicit materials and urged a revision prohibiting such access to anyone under the age of 21 . She verbalized a fear that child pornography would result because there appears not to be adequate regulation for home occupancy permits. Mayor Highland pointed out that questions regarding access by minors have already been answered by the Deputy City Attorney in prior public hearings and clarified that the ordinance is based upon current and enforceable common law. Eric Greening asked what the process is for establishing an adult home occupation, the standards that would have to abided by and what recourse neighbors would have. Roy Hanley remarked that home occupation rules are long- CC 03/12/96 Page 8 established and emphasized that there is no available legal evidence of secondary effects relative to adult home occupations. He noted that if a home occupation does not comply with existing standards and the sexually-oriented businesses ordinance, the City has the power to prosecute. Leo Korba commented that he hopes the City Council will listen to the concerns of local residents and not to outsiders. MOTION: By Councilman Carden, seconded by,Councilman Johnson to adopt Ordinance No. 298 on second reading by title only; motion passed 5.0 by roll call vote. MOTION: By Councilman Carden, seconded by Councilman Johnson to adopt Ordinance No. 300 second reading by title only; motion passed 5.0 by roll call vote. 4. FACTORY OUTLET CENTER FISCAL ANALYSIS (Staff recommendation: Review and accept) Brad Whitty provided the staff report and responded to questions. Councilman Luna used an overhead transparency (see Exhibit C) todemonstrate an alternative analysis and asserted that revenues have been over-estimated. He pointed out that the City had forgiven development fees in the amount of $125,673 and $4,450 in permit fees. He argued that the City will not see more than $50,000 per year of sales tax revenues from the Outlet Center and contended that sales tax revenues will not save the City in these times of financial crisis. Councilman Johnson commented that there are other benefits to consider, for example, commercial draw to other local businesses. Councilman Bewley agreed adding that the Outlet Center has given the community a place to shop. Public Comments: Joan O'Keefe, 9985 Old Morro Road East, recommended that in the future the City avoid over-selling a project. She encouraged staff to research the projections and provide actual figures for the public to review. ---end of public testimony--- By mutual concurrence, the report was received and staff was directed to bring back a follow-up report annually. 5. PRESENTATION OF 1994-95 FINANCIAL AUDIT (Staff recommendation: Review and accept) Brad Whitty summarized the staff report and audit. Council discussion ensued regarding a statement (Item #6 of the auditor's CC 03/12/96 Page 9 management letter to the City dated February 8, 1996) indicating that the City is in violation of State Law because of the fact that it is over-budget in many departments and funds. The City Attorney advised that there are no statutory requirements that cities even have a budget, although it makes good business sense. He clarified that the City Council, as the legislative body, must authorize all expenditures and if those expenditures exceed approved amounts, this may violate Council authority and thus State Law. Mr. Montandon added that the accepted practice is to make adjustments to the adopted budget periodically. Rochelle Rickard, Moss, Levy & Hartzheim, reported that the intention of the management letter is not to criticize, but to provide recommendations for improvements. She admitted that the language in the letter may have been strong but emphasized that the concern is not that the City is violating State Law but that it is demonstrating a consistent pattern of going over-budget. Ms. Rickard remarked that all the governmental agencies they audit go over budget. She recommended that the Council instruct the department heads not to go over- budget and require a budget amendment if they do. City Treasurer Rudy Hernandez reported that common practice is that the City make a final budget adjustment before the audit report is issued and stated that this is an area that needs improvement. Councilman Johnson agreed that all year- end adjustments should be reflected in the audit. Councilman Luna commented that the City Council should take a look at those departments that are consistently over-budget at the mid-year budget review. Rudy Hernandez spoke highly of the City's methods for bill processing and said that it was important to note that the Finance Department has a competent staff who follow a good process. Council questions ensued regarding costs associated with workers compensation insurance and tax and revenue anticipation notes (TRANS). In addition, staff was asked about cash flow reports. Brad Whitty explained that a cash flow report has been created and can be provided to the Council. Councilman Luna illustrated by transparency a chart highlighting the history of expenditures and revenues over the past five years (see Exhibit D). He asserted that it is time that the Council develop a plan for getting out of the financial situation it is in and pointed out that the restructuring that took place in 1992 trimmed away any "fat" that was there. Andy Takata provided a brief status report on the Orange County Investment Pool litigation matter. Public Comments: Rush Kolemaine inquired as to whether or not the City has paid interest on inter- fund transfers and voiced concern about departmental over-spending. Brad Whitty indicated that interest has been charged on the inter-fund transfers and explained that current practices involve sending out monthly reports to department heads, who request budget adjustment authorizations to transfer money between line items. CC 03/12/96 Page 10 Mr. Kolemaine expressed discomfort because department heads can transfer money between line items without the Council's approval and suggested that another method be developed. In addition, he encouraged the City Council to expedite the final recommendations of the Citizens Task Force for Economic Recovery. The City Manager clarified line item transfers are only within operating accounts and provided assurances that if he or the Finance Director have any concerns about transfers, they will brought before the Council. Leo Korba voiced concern about how the City will pay its debts and urged the Council to develop a base-line for making safe financial decisions. Rush Kolemaine, speaking once more, encouraged the Council to study the financial data and project the City's debt service costs. ---end of public testimony--- Brief discussion ensued regarding un-funded vacation and sick leave. The auditor explained that these compensated absences total a liability of $599,730. The City Manager reported that the current year's budget includes a "bank" of $34,000, which staff intends to increase every year. The audit, having been reviewed, was approved. 6. CONSIDERATION OF PROPOSED PLAN TO EXPAND PARKING LOT FOR THE LAKE PARK PAVILION (Staff recommendation: Provide direction) Brady Cherry provided the staff report and requested direction. Mayor Highland commented that he was reluctant to use any funds designated for street maintenance for the parking lot expansion. Councilman Johnson suggested that staff look into a private/public partnership and proposed that some of the groups who regularly use the Pavilion may be willing to enter into a cooperative effort. Councilmembers Luna and Bewley concurred. Public Comments: George Beatie, 10025 EI Camino Real, addressed the safety issue of Marchant and suggested that the portion near the Pavilion be designated as a no-parking area. Jim Edwards, 2800 EI Camino Real, commented that the net gain of spaces will only be 15 or 16 spaces rather than 33 because of the de-facto lot already being used even though it is not yet paved. ---end of public testimony--- By mutual consent, staff was directed to contact local service organizations to determine interest in a public/private cooperative effort to fund the parking lot expansion at the Lake Park Pavilion. No direction was given to implement a No- Parking zone on Marchant formerly approved by Council Resolution No. 09-95 adopted in February of 1995. CC 03/12/96 Page 11 D. COMMITTEE REPORTS (The following represent standing committees. Informative status reports will be given, as felt necessary.): 1. Nacimiento Water Purveyors Advisory Group - Mayor Highland reported that this group will meet on March 131" 2. North County Council - Mayor Highland reported that the executive committee will meet March 21" (Note: meeting later canceled). 3. Integrated Waste Management Authority - Councilman Luna reported that the IWMA will meet on March 13" E. INDIVIDUAL DETERMINATION AND/OR ACTION: 1. City Council Councilman Carden indicated that because of scheduling conflicts he will have to step down from the Youth Task Force. No alternative appointment was made. 2. City Attorney Art Montandon thanked the City Council for their support during the past couple of years while negotiations and conflict resolution regarding the Millhollin Mine has been on-going. He noted that his policy is not to respond to public and personal attacks unless he is so directed to by the Council 3. City Clerk: Request to appoint a Council subcommittee (2 Councilmembers) to interview candidates for Youth Representative on the Parks & Recreation Commission The City Clerk noted that there was one applicant for the Youth Representative position and she comes highly recommended by Atascadero High School. Council mutually agreed to waive the interview provision of the committee member selection policy and informally appointed Grace Kim to the Parks & Recreation Commission as the Ex-Officio Youth Representative. The City Clerk was requested to bring back a resolution formalizing the appointment on the 26' of March. 4. City Manager The City Manager provided an overview of the next meeting's agenda. There was agreement to remove from each agenda regular status reports on the adult bookstore and Millhollin Mine issues. Andy Takata also reported that staff will be bringing forward a status report on drainage issues in the Spring and added that the Fire Chief is presently reviewing State and local laws in an effort to resolve conflicts relative to brush removal and fuel management. AT 10:41 P.M., THE MEETING WAS ADJOURNED. THE NEXT MEETING OF THE ATASCADERO CITY COUNCIL WILL BE TUESDAY, MARCH 26, 1996 AT 7:00 P.M. MINUTES RECORDED AND PREPARED BY: CC 03/12/96 Page 12 l_ MI TES RECORD AN PREPARED BY: LEE PRICE, CMC CITY CLERK Attachments: Exhibit A (Torgerson) Exhibit B (Flaherty) Exhibit C (Luna) Exhibit D (Luna) CC 03/12/96 Page 13 i f MARCIA MCCLURE TORGERSON 6200 Llano Road CC3/12/96 Atascadero, CA 93422 EXHIBIT A 805-466-7980 March 12, 1996 Atascadero City Council Atascadero, CA RE: Millhollin Mine Dear City Council: The Atascadero City Council actions or lack of actions over the past 3 3/4 years concerning this matter show an interesting pattern: In June of 1992 the City of Atascadero, in response to citizens' concerns regarding the un-regulated expansion of the Millhollin Mine, became lead agency. Then in June of 1993 the City of Atascadero, after receiving the report from the Sierra Pacific consulting firm, notified the Millhollins of the requirement of an amended reclamation plan and gave them 90 days to prepare one. These were positive actions which showed concern for the community you represent. However, after 180 days, you and the Millhollins agreed to close the mine for 90 days while negotiations continued. I've never understood why there was a need for negotiations at that time. The lead agency was requiring an amended reclamation pian. What was there to negotiate? I think this is where you, the City Council, started getting the advice of counsel that if you pursued the requirement of a reclamation plan, even though you had that authority as lead agency, the Millhollins would sue the City. And so, you were advised to back down and not fulfill your responsibility as lead agency, even though you knew requiring that amended reclamation plan was the right thing to do. 9 more months go by, it's now September 1994, and the Millhollins pressure the City to let the mine re-open even though they have never submitted the required amended reclamation plan. It has now been one year and three months since the City required that amended reclamation plan, more than enough time to have prepared it. But, instead of enforcing your requirement, you allowed the mine to re-open under the Interim Operational Agreement. This agreement allowed the mining of twice the amount allowed in the existing reclamation plan. This agreement also included the requirement of an amended reclamation plan or development plan to be submitted in another 90 days. Again, the City's reason for signing such an agreement was legal pressure from the Millhollins and on the advice of counsel to avoid a lawsuit by the Millhollins. So instead, a lawsuit was filed by the neighbors for your lack of enforcing SMARA and CEQA. 180 days later, a development plan was submitted and accepted by the City as complete. The Interim Operational Agreement expired in May 1995 but the City allowed the Mine to continue to operate after the Agreement expired, without an amended reclamation plan, again upon advice of Counsel to avoid legal issues. March 12, 1996 Atascadero City Council RE: Millhollin Mine Page Two in September 1995, the City Council asked for a report from the City Attorney regarding the City's legal options in regards to requiring an amended reclamation plan. I would like to read you a quote from his written report to you: "any action the City Council takes regarding the reclamation plan is appealable to the State Board. Thus, even if the City determines the plan inadequate, the state would probably overturn the decision." This is a prime example of, what I would call, slanted and un-researched advice. The City Attorney had no idea what the State Board would do. He wanted you to avoid legal confrontation, which would be his job to defend, by ignoring your responsibilities as lead agency. As we all know now, from discussions with Dr. Parrish and his associates, the State Board would NOT overturn ► such a lead agency decision. So, you must ask, why were you continually advised to avoid your responsibilities as lead agency? I hope that you are able to get a true answer to that question and are able to ensure that, in the future, you will be able to receive good, objective, and,;properly Tesearched advice. What I'm trying to say here is that I think the City Council has been trying to do the right thing from the very beginning. Your intentions were honest, responsible and showed concern for the community. Your actions were, in my opinion, a result of the poor advice you received. That is why i am glad that you have now finally consulted with the State Mining and Geology Board. I hope that you will continue to seek their advice on any future lead agency issues. If you and your advisors had only sought out the State Board's expert advice 2 1/2 years ago, you would have avoided being involved in a lawsuit now. I want to say that I think Gary Kaiser deserves a medal for his work on this matter. He has been working on this for five or six years now. He has treated all parties with respect even though I'm sure he gets frustrated with all of us sometimes. His obvious goal has always been to resolve this matter as soon as possible. I think he can recite SMARA in his sleep by now, and he has continuously recommended to the Council to enforce SMARA. It's too bad that his advice to you has not been valued as much as others. As you all can probably guess, I fully support the Staff's recommendation for an amended reclamation plan. We, the concerned neighbors, have always supported your requirement of an amended reclamation plan since you first required one back in June 1993. All we have ever asked it that you protect our neighborhood by enforcing SMARA and CEQA. I notice, in the staff report, that there is no mention of surveying the property as suggested by the State Board. I would hope that the reasoning behind this is to wait and have the new amended reclamation plan boundaries surveyed. if that is the case, I would strongly support that. I strongly urge you to take Dr. Parrish's advice, and require a survey. I hope that you will set a time limit as to when you expect to receive this COMPLETED amended reclamation plan. 60 days seems appropriate to me. However, the Mine should be required to comply under the existing reclamation plan until the amended one is approved. 1 do feel that you should stand firm on 60 days. If you do not receive a COMPLETED amended reclamation plan in that ! 60 days, then the Mine should be closed until the plan is received. Under the March 12, 1996 Atascadero City Council RE: Millhollin Mine i Page Three circumstances, being that you asked for this amended reclamation plan almost 3 years ago, I think this would be more than fair. I would also like to strongly urge you to consider adopting a land use ordinance, like the County has, which requires an extraction operation to enter into an agreement with the lead agency to deposit X amount of money into a road fund as compensation for the increase road use and road maintenance requirements generated by the operation. As we heard at the workshop on February 21st., the County does enforce this ordinance. An ordinance like this would help the City on future road repairs. When this was brought up before, the City Attorney discouraged your adoption of such an ordinance by advising you that if such an ordinance were adopted that all big trucks would be affected. But, that is not true. The County ordinance is worded specifically for extraction operations; we could do the same thing. I have copies of the County's ordinance for you to review that I will give to Lee. If such an ordinance is adopted before the approval of an amended reclamation plan, then the City could enforce it on that mine. As Dr. Parrish has told you, Mayor Highland, after the November 14, 1995 City Council meeting where you took no action, the Santa Lucia Neighbors' Association, Inc., filed a formal complaint with the State Mining and Geology Board. They are holding that complaint until they are apprised on your actions or lack of actions tonight. I want you to remember that the State is watching you, and they are also there as an advisor to you. Please take full advantage of their expertise. Again, I strongly support the recommendations of Staff and of the State Mining and Geology Board. Please do the right thing; act like the lead agency that you are and protect your community by enforcing SMARA. Sincerely, 01- Marcia McClure Torgerson Im Enclosure: County of San Luis Obispo Land Use Ordinance #22.08.198 i i i SECTION 45: Chapter 22.08 of the Land Use Ordinance is hereby amended to add Section 22.08.198, as follows: 22.08.198 - Use of County Roads by Extraction Operations. IN ANY CASE WHERE A PROPOSED RESOURCE EXTRACTION OPERATION (INCLUDING EXTRACTION WELLS, SURFACE AND SUBSURFACE MINING) WILL USE COUNTY ROADS FOR THE CONVEYANCE OF EXTRACTION EQUIPMENT OR EXTRACTED PRODUCTS, AND WHEN IN THE OPINION OF THE COUNTY ENGINEER, THE RESOURCE EXTRACTION OPERATION WOULD IMPACT THE COUNTY ROAD TO A DEGREE THAT WOULD LIKELY CAUSE THE EXPENDITURE OF ADDITIONAL. MAINTENANCE FUNDS, THE APPLICANT IS TO ENTER INTO AN AGREEMENT WITH THE COUNTY AS PROVIDED BY. THIS SECTION PRIOR TO THE COMMENCEMENT OF ANY RESOURCE EXTRACTION OPERATIONS. WHEN AN AGREEMENT IS REQUIRED, THE APPLICANT SHALL EXECUTE SUCH AGREEMENT WITH THE COUNTY ENGINEERING DEPARTMENT TO DEPOSIT INTO THE COUNTY ROAD FUND A SUM TO BE DETERMINED BY THE COUNTY ENGINEER BASED UPON THE VOLUME OF RESOURCE BEING HAULED OVER COUNTY ROADS AS COMPENSATION FOR THE IN- CREASE IN ROAD USE AND ROAD MAINTENANCE REQUIREMENTS GENERATED BY THE PROJECT. SECTION 46: Section 22.08.246 of the Land Use Ordinance is hereby amended by modifying subsections a(4) and d as follows: a.. (4) Time Limit: THE USE OF a temporary dwelling or office is SUBJECT TO THE FOLLOWING TIME LIMITS, WHICH MAY BE EXTENDED PURSUANT TO SECTION 22.02.050 (EXTENSIONS OF TIME). TEMPOR- ARY DWELLINGS OR OFFICES ARE allowed only while an approved building permit and an approved land use permit are in effect for the permanent use (Section 22.02.052 - Lapse of Land Use Permit) , and for no longer than one year in the ease o£ Construction of as ind-ividual residenee; except as PROVIDED IN THE FOLLOWING SUBSECTIONS: follows- (i) TEMPORARY DWELLINGS. USE OF A TEMPORARY DWELLING DURING CONSTRUCTION OF A PERMANENT RESIDENCE OR OTHER PROJECT IS LIMITED TO A MAXIMUM PERIOD OF ONE YEAR. (II) Temporary Financial Offices. A temporary office for a financial service (e.g. a bank) may be used for a maximum of 18 months before issuance of a LAND USE OR construction permit for a permanent facility, AND THEREAFTER UNTIL EITHER THE PERMANENT FACILITY IS ESTABLISHED OR THE LAND USE PERMIT FOR THE PERMANENT FACILITY EXPIRES. I (III)Temporary Real Estate Offices A temporary real estate office may be established on the site of an approved subdivision .under construction for a maximum of two years from approval of a tentative subdivision map, unless a longer period is authorized by the Planning i Commission through approval of a Development Plan. f i I 15 3/26/81 CC3/12/96 EXHIBIT B My name is Dorothy Flaherty and I live at 12100 Cenegal Road, Atascadero. 1 am here tonight to ask what the City as Lead Agency for the Milhollin Mine is going to do to require the owner of the mine to comply with the SMARA Law. Since the City's job is to protect all citizens, we hope the Council will insist that the quarry be surveyed to ascertain the true dimensions of Mr. Milhollin's "vested rights" and it is obvious that the cost of this survey should be carried by the quarry owner. I believe that there is no other way to check to see if the mineowner has already exceeded the acreage "grandfathered" in by the cartoon-map used in 1980 to give Mr. Milhollin license to mine at this site. I agree with you, Mr. Mayor, that this matter should be settled and hope that a proper survey will be the first step in determining how much Mr. Milhoflin has mined and what. will be the future of this industrial operation in my backyard. Thank you. CC3/12/96 EXHIBIT C xn �. CO O O O O N t0 qt x p p i� Lo N i" coClq i m m O C ,0 W Ln W M. O O O O N N c0 U) O w W 4t O O tV 4Q- f. .— Co .a. t0 N O U J «• O0 00 co Ir- NOM Nt O cotO Qco tC ON N 00 N N ct N I- r i m O p N O N 4-0 W p 0 N 0 00 �O 000 d0' p E co c0 It) w r- w co LL� DOO t'� M r co - N NN N r co Uj N } O O in X 0 �co 0 G9 ~ t� m RV tl.1 m ~ a)CL ♦♦�D a LL (� ~ CL 7E x rn CL W .. s i CC3712796 EXHIBIT D I s I i ECL t0d ntONn '� OOO � t0t0 N N N N N N p CL I N p r t0 r to n co r r m m CL (4 C7 ch N N N x V1 U). 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