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HomeMy WebLinkAboutCC_2018-06-12_MinutesCITY OF A TASCADERO CITY COUNCIL MINUTES Tuesday, June 12, 2018 City Hall Council Chambers, 4th floor 6500 Palma Avenue, Atascadero, California (Entrance on Lewis Ave.) City Council Closed Session: 5:00 P.M. City Council Regular Session: 6:00 P.M. CITY COUNCIL CLOSED SESSION: Mayor O'Malley called Closed Session to order at 5:01 p.m. 1. CLOSED SESSION -- PUBLIC COMMENT 2. COUNCIL LEAVES CHAMBERS TO BEGIN CLOSED SESSION 3. CLOSED SESSION -- CALL TO ORDER a. Conference with Labor Negotiators (Govt. Code Sec. 54957.6) Agency designated representatives: Rachelle Rickard, City Manager Employee Organizations: Atascadero Professional Firefighters, Local 3600; Atascadero Police Association; Service Employees International Union, Local 620; Mid-Management/Professional Employees; Non - Represented Professional and Management Workers and Confidential Employees 4. CLOSED SESSION -- ADJOURNMENT 5. COUNCIL RETURNS TO CHAMBERS 6. CLOSED SESSION -- REPORT The City Attorney reported that there was no reportable action. Atascadero City Council June 12, 2018 Page 1 of 14 REGULAR SESSION — CALL TO ORDER: 6:00 P.M. Mayor O'Malley called the meeting to order at 6:01 p.m. and Council Member Sturtevant led the Pledge of Allegiance. ROLL CALL: Present: Council Members Bourbeau, Moreno, Sturtevant, and Mayor O'Malley Absent: Mayor Pro Tem Fonzi Staff Present: City Manager Rachelle Rickard, Public Works Director Nick DeBar, Police Chief Jerel Haley, Administrative Services Director Jeri Rangel, Community Development Director Phil Dunsmore, Fire Chief Casey Bryson, City Attorney Brian Pierik, Deputy City Manager/City Clerk Lara Christensen, Deputy City Clerk Amanda Muther 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 4:0 by a roll -call vote. Fonzi absent. PRESENTATION: 1. Commendation to Glenn's Repair & Rental - In Business for 50 years The City Council presented a Commendation to Geoff Auslen, owner of Glenn's Repair & Rental. Mr. Auslen thanked the Council for the commendation. At the request of Mayor O'Malley, Chief Bryson spoke briefly on the history of the Bertha Shultz Trust Fund and the generosity of Mrs. Shultz. Atascadero City Council June 12, 2018 Page 2 of 14 A. CONSENT CALENDAR: 1. City Council Draft Action Minutes — May 22, 2018 • Recommendation: Council approve the City Council Draft Action Minutes of the May 22, 2018, City Council meeting. [City Clerk] 2. 2018-2019 Annual Spending Limit ■ Fiscal Impact: None. ■ Recommendation: Council adopt Draft Resolution establishing the annual spending limit for Fiscal Year 2018-2019. [Administrative Services] 3. Approval of Minor Staffing Changes at the Charles Paddock Zoo ■ Fiscal Impact: The re -organization is expected to have negligible fiscal impact. ■ Recommendation: Council concur with minor staffing changes in the Zoo Division, as recommended by the City Manager. [City Manager] 4. Bertha Shultz Trust Fund Infrastructure & Vehicle Improvement Plan Update ■ Fiscal Impact: Support of the staff proposed budget for remaining items will result in the expenditure of $109,120 in donated funds. ■ Recommendation: Council receive an update on the Bertha Shultz Trust Fund Infrastructure and Vehicle Improvement Plan that was approved by Council in 2014 and support staff proposed plan for remaining fund balance. [Fire Development] 5. Adopting a List of Projects for Fiscal Year 2018-2019 Funded by SB1 - The Road Repair and Accountability Act of 2017 ■ Fiscal Impact: No fiscal impact is anticipated from approving the recommendations in the staff report and the Draft Resolution. ■ Recommendation: Council adopt Draft Resolution adopting a list of projects to be funded with Road Maintenance and Rehabilitation Account revenues from SB 1 (The Road Repair and Accountability Act of 2017) for Fiscal Year 2018-2019. [Public Works] MOTION: By Council Member Moreno and seconded by Council Member Sturtevant to approve the Consent Calendar. (#A-2: Resolution No. 2018-035) (#A-5: Resolution No. 2018-036) Motion passed 4:0 by a roll -call vote. Fonzi Absent. UPDATES FROM THE CITY MANAGER: City Manager Rachelle Rickard gave an update on projects and issues within the City. COMMUNITY FORUM: The following citizens spoke during Community Forum: Livea Coleman, Derek Kirk and Geoff Auslen Atascadero City Council June 12, 2018 Page 3 of 14 B. PUBLIC HEARINGS: 1. Apple Valley Assessment Districts ■ Ex -Parte Communications: ■ Fiscal Impact: Annual assessments for 2018/2019 will total $28,000 for road/drainage system maintenance and $73,500 for landscape and lighting maintenance. These amounts will be assessed to the owners of parcels in Apple Valley. ■ Recommendations: Council: 1. Adopt Draft Resolution A approving the final Engineer's Report regarding the Street and Storm Drain Maintenance District No. 01 (Apple Valley), and the levy and collection of annual assessments related thereto for Fiscal Year 2018/2019. 2. Adopt Draft Resolution B ordering the levy and collection of assessments for Fiscal Year 2018/2019 for Street and Storm Drain Maintenance District No. 01 (Apple Valley). 3. Adopt Draft Resolution C approving the final Engineer's Report regarding the Landscaping and Lighting District No. 01 (Apple Valley), and the levy and collection of annual assessments related thereto in Fiscal Year 2018/2019. 4. Adopt Draft Resolution D ordering the levy and collection of assessments for Fiscal Year 2018/2019 for Landscaping and Lighting District No. 01 (Apple Valley). [Administrative Services] Ex Parte Communications None were disclosed. Administrative Services Director Rangel gave the staff report and answered questions from the Council. Mayor O'Malley opened the Public Hearing and asked if anyone would like to address the City Council on this matter. Hearing none, Mayor O'Malley closed the Public Hearing. MOTION: By Council Member Moreno and seconded by Council Member Sturtevant to: 1. Adopt Draft Resolution A approving the final Engineer's Report regarding the Street and Storm Drain Maintenance District No. 01 (Apple Valley), and the levy and collection of annual assessments related thereto for Fiscal Year 2018/2019. 2. Adopt Draft Resolution B ordering the levy and collection of assessments for Fiscal Year 2018/2019 for Street and Storm Drain Maintenance District No. 01 (Apple Valley). 3. Adopt Draft Resolution C approving the final Engineer's Report regarding the Landscaping and Lighting District No. 01 (Apple Valley), and the levy and collection of annual assessments related thereto in Fiscal Year 2018/2019. Atascadero City Council June 12, 2018 Page 4 of 14 4. Adopt Draft Resolution D ordering the levy and collection of assessments for Fiscal Year 2018/2019 for Landscaping and Lighting District No. 01 (Apple Valley). (#1: Resolution No. 2018-037, #2: Resolution No. 2018-038, #3: Resolution No. 2018-039, #4: Resolution No. 2018-040) Motion passed 4:0 by a roll -call vote. Fonzi Absent. Administrative Director Rangel presented Item B3 before Item 82. 2. Woodridge (Las Lomas) Assessment Districts ■ Ex -Parte Communications: ■ Fiscal Impact: Annual assessments for 2018/2019 will total $88,528 for road/drainage system maintenance and $63,731 for landscape and lighting maintenance. These amounts will be assessed to the owners of parcels in Woodridge (Las Lomas). The City General Fund will contribute $1,250 for the fiscal year 2018/2019 for 25% of the maintenance costs of the trails and open space. ■ Recommendations: Council: 1. Adopt Draft Resolution A approving the final Engineer's Report regarding the Street and Storm Drain Maintenance District No. 02 — Woodridge (Las Lomas), and the levy and collection of annual assessments related thereto for Fiscal Year 2018/2019. 2. Adopt Draft Resolution B ordering the levy and collection of assessments for Fiscal Year 2018/2019 for Street and Storm Drain Maintenance District No. 02 — Woodridge (Las Lomas). 3. Adopt Draft Resolution C approving the final Engineer's Report regarding the Landscaping and Lighting District No. 02 — Woodridge (Las Lomas), and the levy and collection of annual assessments related thereto in Fiscal Year 2018/2019. 4. Adopt Draft Resolution D ordering the levy and collection of assessments for Fiscal Year 2018/2019 for Landscaping and Lighting District No. 02 — Woodridge (Las Lomas). [Administrative Services] Ex Parte Communications None were disclosed. Administrative Services Director Rangel gave the staff report and answered questions from the Council. Mayor O'Malley opened the Public Hearing and asked if anyone would like to address the City Council on this matter. Hearing none, Mayor O'Malley closed the Public Hearing. MOTION: By Council Member Moreno and seconded by Council Member Sturtevant to: 1. Adopt Draft Resolution A approving the final Engineer's Report regarding the Street and Storm Drain Maintenance District No. 02 — Woodridge (Las Lomas), and the levy and collection of annual assessments related thereto for Fiscal Year 2018/2019. Atascadero City Council June 12, 2018 Page 5 of 14 2. Adopt Draft Resolution B ordering the levy and collection of assessments for Fiscal Year 2018/2019 for Street and Storm Drain Maintenance District No. 02 — Woodridge (Las Lomas). 3. Adopt Draft Resolution C approving the final Engineer's Report regarding the Landscaping and Lighting District No. 02 — Woodridge (Las Lomas), and the levy and collection of annual assessments related thereto in Fiscal Year 2018/2019. 4. Adopt Draft Resolution D ordering the levy and collection of assessments for Fiscal Year 2018/2019 for Landscaping and Lighting District No. 02 — Woodridge (Las Lomas). (#1: Resolution No. 2018-041, #2: Resolution No. 2018-042, #3: Resolution No. 2018-043, #4: Resolution No. 2018-044) Motion passed 4:0 by a roll -call vote. Fonzi Absent. 3. De Anza Estates Assessment Districts ■ Ex -Parte Communications.- Fiscal ommunications:Fiscal Impact: Annual assessments for 2018/2019 will total $30,562 for road/drainage system maintenance and $15,875 for landscape and lighting maintenance. These amounts will be assessed to the owners of parcels in De Anza Estates. The City General Fund will contribute $1,400 for the fiscal year 2018/2019 for half of the maintenance costs of the trails and open space. ■ Recommendations: Council - 1 . ouncil:1. Adopt Draft Resolution A approving the final Engineer's Report regarding the Street and Storm Drain Maintenance District No. 03 (De Anza Estates), and the levy and collection of annual assessments related thereto for Fiscal Year 2018/2019. 2. Adopt Draft Resolution B ordering the levy and collection of assessments for Fiscal Year 2018/2019 for Street and Storm Drain Maintenance District No. 03 (De Anza Estates). 3. Adopt Draft Resolution C approving the final Engineer's Report regarding the Landscaping and Lighting District No. 03 (De Anza Estates), and the levy and collection of annual assessments related thereto in Fiscal Year 2018/2019. 4. Adopt Draft Resolution D ordering the levy and collection of assessments for Fiscal Year 2018/2019 for Landscaping and Lighting District No. 03 (De Anza Estates). [Administrative Services] Ex Parte Communications None were disclosed. Administrative Services Director Rangel gave the staff report and answered questions from the Council. Mayor O'Malley opened the Public Hearing and asked if anyone would like to address the City Council on this matter. Hearing none, Mayor O'Malley closed the Public r1l Hearing. Atascadero City Council June 12, 2018 Page 6 of 14 MOTION: By Council Member Sturtevant and seconded by Council Member Bourbeau to: 1. Adopt Draft Resolution A approving the final Engineer's Report regarding the Street and Storm Drain Maintenance District No. 03 (De Anza Estates), and the levy and collection of annual assessments related thereto for Fiscal Year 2018/2019. 2. Adopt Draft Resolution B ordering the levy and collection of assessments for Fiscal Year 2018/2019 for Street and Storm Drain Maintenance District No. 03 (De Anza Estates). 3. Adopt Draft Resolution C approving the final Engineer's Report regarding the Landscaping and Lighting District No. 03 (De Anza Estates), and the levy and collection of annual assessments related thereto in Fiscal Year 2018/2019. 4. Adopt Draft Resolution D ordering the levy and collection of assessments for Fiscal Year 2018/2019 for Landscaping and Lighting District No. 03 (De Anza Estates). (#1: Resolution No. 2018-045, #2: Resolution No. 2018-046, #3: Resolution No. 2018-047, #4: Resolution No. 2018-048) Motion passed 4:0 by a roll -call vote. Fonzi Absent. 4. Atascadero Tourism Business Improvement District Confirmation of Annual Assessment (Fiscal Year 2018-2019) • Ex -Parte Communications: ■ Fiscal Impact: Annual assessments for 2018/2019 are expected to be approximately $266,480 and will be assessed as 2% of the rent charged on the occupied rooms and spaces for transient occupancies. ■ Recommendation: Council adopt Draft Resolution confirming the annual assessment for the Atascadero Tourism Business Improvement District (Fiscal Year 2018-2019). [City Manager] Mayor O'Malley recused himself and stepped down from the dais noting that he is the owner of the Portola Inn, which creates a potential conflict of interest for him. Ex Parte Communications None were disclosed. Deputy City Manager Christensen gave the staff report and answered questions from the Council. PUBLIC COMMENT: The following citizens spoke on this item: Tom O'Malley and Deana Alexander Council Member Moreno closed the Public Comment period. MOTION: By Council Member Bourbeau and seconded by Council Member Sturtevant to adopt Draft Resolution confirming the annual assessment for the Atascadero Tourism Business Improvement District (Fiscal Year 2018-2019). (Resolution No. 2018-049) Atascadero City Council June 12, 2018 Page 7 of 14 Motion passed 3:0 by a roll -call vote. Fonzi Absent, O'Malley abstained. 5. Downtown Parking and Business Improvement Area Confirmation of Annual Assessment (FY 2018-2019) ■ Ex -Parte Communications: ■ Fiscal Impact: Adopting the staff recommendation will result in the collection and expenditure of approximately $8,000 in BIA funds. The actions will also result in the expenditure of $8,000 in one-time General Fund Reserves for Fiscal Year 2018-2019. ■ Recommendations: Council: 1. Adopt Draft Resolution confirming the annual assessment for the Downtown Parking and Business Improvement Area (Fiscal Year 2018-2019). 2. Authorize the Director of Administrative Services to appropriate $8,000 of General Fund Reserves monies to the Marketing, Outreach, and Promotions budget. 3. Authorize the Director of Administrative Services to budget $8,000 in Business Improvement Area revenues and expenses for Fiscal Year 2018-2019.[City Manager] Ex Parte Communications None were disclosed. Deputy City Manager Christensen gave the staff report and answered questions from the Council. PUBLIC COMMENT: The following citizens spoke on this item: Deana Alexander, Marie Ramie, Derek Kirk, Deborah Kyle Hintergardt, and Susan Funk Mayor O'Malley closed the Public Comment period. MOTION: By Council Member Moreno and seconded by Council Member Sturtevant to: 1. Adopt Draft Resolution confirming the annual assessment for the Downtown Parking and Business Improvement Area (Fiscal Year 2018-2019). 2. Authorize the Director of Administrative Services to appropriate $8,000 of General Fund Reserves monies to the Marketing, Outreach, and Promotions budget. 3. Authorize the Director of Administrative Services to budget $8,000 in Business Improvement Area revenues and expenses for Fiscal Year 2018-2019. (#1: Resolution No. 2018-050) Motion passed 4:0 by a roll -call vote. Fonzi Absent. Atascadero City Council June 12, 2018 Page 8 of 14 C. MANAGEMENT REPORTS: 1. General Municipal Election - November 6 2018 ■ Fiscal Impact: The City Clerk's estimate for the 2018 election of officials in Atascadero is $22,000 in budgeted General Funds. ■ Recommendations: Council adopt the following Resolutions for the purpose of electing a Mayor, two members to the City Council and a City Treasurer: 1. Draft Resolution A, calling and giving notice of the holding of a General Municipal Election to be held on Tuesday, November 6, 2018 for the election of a Mayor, two Council Members and a City Treasurer. 2. Draft Resolution B, requesting the Board of Supervisors of the County of San Luis Obispo to consolidate a General Municipal Election to be held on November 6, 2018. [City Clerk] Deputy City Manager/City Clerk Christensen gave the staff report and answered questions from the Council. PUBLIC COMMENT: The following citizens spoke on this item: None. Mayor O'Malley closed the Public Comment period. MOTION: By Council Member Sturtevant and seconded by Council Member Bourbeau to adopt the following Resolutions for the purpose of electing a Mayor, two members to the City Council and a City Treasurer: 1. Draft Resolution A, calling and giving notice of the holding of a General Municipal Election to be held on Tuesday, November 6, 2018 for the election of a Mayor, two Council Members and a City Treasurer. 2. Draft Resolution B, requesting the Board of Supervisors of the County of San Luis Obispo to consolidate a General Municipal Election to be held on November 6, 2018. (#1: Resolution No. 2018-051, #2: Resolution No. 2018-052) Motion passed 4:0 by a roll -call vote. Fonzi Absent. 2. Cannabis Tax Ballot Measure ■ Fiscal Impact: The City Clerk's estimate for the 2018 election of officials in Atascadero is $22,000. The City Clerk's estimate for the addition of the ballot measure is approximately $16,000. Therefore, the total estimate for the 2018 election including ballot measures is $38,000 in budgeted General Funds. ■ Recommendations: Council adopt the following Resolutions to submit to the voters a cannabis business tax ballot measure: 1. Draft Resolution A, calling and giving notice of the holding of a General Municipal Election to be held on Tuesday, November 6, 2018, for the submission to the voters of a question relating to a cannabis business tax measure. Atascadero City Council June 12, 2018 Page 9 of 14 2. Draft Resolution B, requesting the Board of Supervisors of the County of San Luis Obispo to consolidate a General Municipal Election to be held on November 6, 2018. 3. Draft Resolution C, setting priorities for filing written arguments regarding the City measure and directing the City Attorney to prepare an impartial analysis. 4. Draft Resolution D, providing for the filing of rebuttal arguments for City measures submitted at Municipal Elections. 5. Authorize the Director of Administrative Services to appropriate $8,000 of General Fund Reserves monies to the City Clerk budget. [Administrative Services] Administrative Services Director Rangel gave the staff report and answered questions from the Council. During her report, Director Rangel provided Council with a handout on proposed tax rates (Exhibit A). Deputy City Manager/City Clerk Christensen also answered questions from the Council. Council Member Moreno expressed concern that the proposed maximum tax rates for Atascadero were lower than rates listed by other local cities, as detailed in Exhibit A. Director Rangel clarified how the proposed rates had been reached and the Council further discussed the topic of maximum tax rates. By consensus, the City Council authorized Mayor O'Malley and Council Member Moreno to write a rebuttal argument with regards to the Cannabis Tax Measure. n PUBLIC COMMENT: The following citizens spoke on this item: Susan Funk Mayor O'Malley closed the Public Comment period. MOTION: By Mayor O'Malley and seconded by Council Member Bourbeau to adopt the following Resolutions to submit to the voters a cannabis business tax ballot measure: 1. Draft Resolution A, calling and giving notice of the holding of a General Municipal Election to be held on Tuesday, November 6, 2018, for the submission to the voters of a question relating to a cannabis business tax measure with the following amendments to the Ballot Measure and Exhibit A: BALLOT MEASURE # Yes Shall the measure be adopted to tax cannabis businesses operating illegally or allowed in the future by the voters, State or City, at annual rates not to exceed 510.00 per canopy square foot for cultivation (adjustable for inflation), 6% 1 WV,of gross receipts for retail cannabis businesses, and 4% of gross receipts for all other cannabis businesses, generating $0- No $500,000 annually for unrestricted general revenue purposes, such as police, fire and parks, until ended by the voters? Atascadero City Council June 12, 2018 Page 10 of 14 Exhibit A (Ordinance): _ Section 3-17.050(d)(1)(a)(ii): Seven Ten dollars ($-710.00) annually per square foot of canopy space for indoor cultivation within a permanent structure that uses a combination of natural and supplemental artificial lighting. Section 3-17.050(d)(1)(a)(iii): Ten dollars (5410.00) annually per square foot of canopy space for outdoor cultivation that uses no artificial lighting. Section 3-17.050(d)(1)(a)(iv): Two Ten dollars (,S210.00) annually per square foot of canopy space for any nursery. Section 3-17.050(d)(3): For every person who engages in the retail sales of cannabis as a retailer (dispensary) or non -store front retailer (delivery business), or microbusiness (retail sales activity) the maximum tax rate shall not exceed si-x ten percent (610'%,) of gross receipts. Section 3-17.050(d)(5): For every person who engages in a cannabis manufacturing, processing, or microbusiness (non -retail activity) or any other type of cannabis business not described in Section (D) (1), (2), (3) or (4), the maximum tax rate shall not exceed few six percent (461%,) of gross receipts. 2. Draft Resolution B, requesting the Board of Supervisors of the County of San Luis Obispo to consolidate a General Municipal Election to be held on November 6, 2018 with the following amendment to the Ballot Measure: BALLOT MEASURE # IYes Shall the measure be adopted to tax cannabis businesses operating illegally or allowed in the future by the voters, State or City, at annual rates not to exceed $10.00 per canopy square foot for cultivation (adjustable for inflation), " 10%, of gross receipts for retail cannabis businesses, and 4% 6% of gross receipts for all other cannabis businesses, generating $0- No $500,000 annually for unrestricted general revenue purposes, such as police, fire and parks, until ended by the voters? 3. Draft Resolution C, setting priorities for filing written arguments regarding the City measure and directing the City Attorney to prepare an impartial analysis with the following amendment to the Ballot Measure, the inclusion of all City Council Members names listed under authorization and adding a sentence at the end of Section 1 stating "Council Members Bourbeau and Sturtevant, with Mayor O'Malley as an alternate, will be responsible to write an argument in favor of the Ballot Measure": BALLOT MEASURE # 1Yes Shall the measure be adopted to tax cannabis businesses operating illegally or allowed in the future by the voters, State or City, at annual rates not to exceed $10.00 per canopy square foot for cultivation (adjustable for inflation), " 10'%, of gross receipts for retail cannabis businesses, and 4% 6'% of gross receipts for all other cannabis businesses, generating $0- No $500,000 annually for unrestricted general revenue purposes, such as police, fire and parks, until ended by the voters? Atascadero City Council June 12, 2018 Page 11 of 14 4. Draft Resolution D, providing for the filing of rebuttal arguments for City measures submitted at Municipal Elections. 5. Authorize the Director of Administrative Services to appropriate $8,000 of General Fund Reserves monies to the City Clerk budget. (#1: Resolution No. 2018-053, #2: Resolution No. 2018-054, #3: Resolution No. 2018-055, #4: Resolution No. 2018-056) Motion passed 4:0 by a roll -call vote. Fonzi Absent. Mayor O'Malley recessed the meeting at 8:10 p.m. Mayor O'Malley reconvened the meeting at 8:21 p.m. 3. Santa Lucia Road and Via Avenue Bridge Replacement Project Updates ■ Fiscal Impact: No fiscal impact is related to staff recommendations. ■ Recommendations: Council: 1. Review preliminary design plans for the Santa Lucia Road Bridge over Graves Creek (Project No. C20151303) and the Via Avenue Bridge over Atascadero Creek (Project No. C20151302). 2. Approve bridge railing design options for Santa Lucia Road and Via Avenue Bridge projects. [Public Works] Public Works Director DeBar gave the staff report and answered questions from the Council. PUBLIC COMMENT: The following citizens spoke on this item: Susan Funk Mayor O'Malley closed the Public Comment period. MOTION: By Council Member Sturtevant and seconded by Council Member Bourbeau to: 1. Review preliminary design plans for the Santa Lucia Road Bridge over Graves Creek (Project No. C20151303) and the Via Avenue Bridge over Atascadero Creek (Project No. C20151302). 2. Approve bridge railing design options for Santa Lucia Road and Via Avenue Bridge projects with the following direction: 1. Santa Lucia Road Bridge - Type 80 design with the addition of railing. 2. Via Avenue Bridge - Type 80 design with the same railing treatment on both sides of the bridge. Motion passed 4:0 by a roll -call vote. Fonzi Absent. Atascadero City Council June 12, 2018 Page 12 of 14 4. Sustainable Transportation Planning Grant - EI Camino Corridor Study - Professional Services Award ■ Fiscal Impact: PlaceWorks's negotiated fee is time and material basis for a contract amount of $174,905, which is fully covered by the Caltrans planning grant. Staff recommends that Council appropriate up to $25,000 in General Fund Reserves to fund a Market Assessment which will act as an economic basis for developing the land use and transportation corridor plan. ■ Recommendations: Council: 1. Authorize the City Manager to execute a contract with PlaceWorks, in the amount of $174,905, to provide professional services for the EI Camino Real Corridor Study, funded by the Caltrans planning grant. 2. Authorize the Director of Administrative Services to appropriate up to $25,000 from the City's General Fund Reserves to complete a Market Assessment which will identify economic opportunities and quantify market potential within the City's commercial sector. [Community Development] Community Development Director Dunsmore gave the staff report and answered questions from the Council. City Manager Rickard also answered questions from the Council. Tammi Seale, Associate Principal for Placeworks spoke briefly on the proposed Market Assessment Study and answered questions from the Council. PUBLIC COMMENT: The following citizens spoke on this item: Susan Funk Mayor O'Malley closed the Public Comment period. MOTION: By Mayor O'Malley and seconded by Council Member Moreno to: 1. Authorize the City Manager to execute a contract with PlaceWorks, in the amount of $174,905, to provide professional services for the EI Camino Real Corridor Study, funded by the Caltrans planning grant. 2. Authorize the Director of Administrative Services to appropriate up to $25,000 from the City's General Fund Reserves to complete a Market Assessment, which will identify economic opportunities and quantify market potential within the City's commercial sector. (#1: Contract No. 2018-003) Motion passed 3:1 by a roll -call vote. Bourbeau NO. Fonzi Absent. Atascadero City Council June 12, 2018 Page 13 of 14 COUNCIL ANNOUNCEMENTS AND REPORTS: On the suggestion of Mayor O'Malley, there was Council consensus to have staff prepare and present a report regarding the possibility of a ballot measure for discussion at the June 26, 2018 meeting to extend the term of the Mayor from two -years to four -years. D. COMMITTEE REPORTS: The following Council Members gave brief update reports on their committees since their last Council meeting: Council Member Bourbeau 1. City of Atascadero Design Review Committee 2. Homeless Services Oversight Council E. INDIVIDUAL DETERMINATION AND I OR ACTION: None F. ADJOURN Mayor O'Malley adjourned the meeting at 9:42 p.m. MINUTES PREPARED BY: 4, z!62!, -,c+- Amanda Muther Deputy City Clerk The following exhibits are available for review in the City Clerk's office: • Exhibit A — Cannabis Tax maximum rate comparison provided by Director Rangel APPROVED: June 26, 2018 Atascadero City Council June 12, 2018 Page 14 of 14 _ City Council Minutes Exhibit A Date: j. ;,yne Maximum Rates Unicorporated County (Passed by 76.81% Atascadero (Proposed) Morro Bay (Proposed) San Luis Obispo (Proposed) unofficially) Grover Beach Commercial Cultivation $10.00 annually per sq ft of $25.00 annually per sq ft of $10.00 annually per sq ft of Indoor, exclusively artifical canopy space canopy space canopy space $25.00 annually per sq ft of canopy space for lighting + CPI Increase + CPI Increase + CPI Increase 10% of gross receipts the first 5,000 sq ft and $10 per sq ft after that $7.00 annually per sq ft of $25.00 annually per sq ft of $10.00 annually per sq ft of canopy space canopy space canopy space $25.00 annually per sq ft of canopy space for Indoor, mixed lighting + CPI Increase + CPI Increase + CPI Increase 10% of gross receipts the first 5,000 sq ft and $10 per sq ft after that $4.00 annually per sq ft of $25.00 annually per sq ft of $10.00 annually per sq ft of Indoor, exclusively natural canopy space canopy space canopy space $25.00 annually per sq ft of canopy space for lighting + CPI Increase + CPI Increase + CPI Increase 10% of gross receipts the first 5,000 sq ft and $10 per sq ft after that $2.00 annually per sq ft of $25.00 annually per sq ft of $10.00 annually per sq ft of Nusery, only minimal canopy space canopy space canopy space $25.00 annually per sq ft of canopy space for artificial lighting + CPI Increase + CPI Increase + CPI Increase 10% of gross receipts the first 5,000 sq ft and $10 per sq ft after that 5% of gross receipts for medical use Testing Lab 2.5% of gross receipts 10% of gross receipts 2.5% of gross receipts exempt 10% of gross receipts for adult use 5% of gross receipts for medical use Retail sales 6% of gross receipts 10% of gross receipts 10% of gross receipts 10% of gross receipts 10% of gross receipts for adult use 5% of gross receipts for medical use Distribution 3% of gross receipts 10% of gross receipts 3% of gross receipts 10% of gross receipts 10% of gross receipts for adult use Manufacturing, processing, 5% of gross receipts for medical use miscrobusiness, or other 4% of gross receipts 10% of gross receipts 6% of gross receipts 10% of gross receipts 10% of gross receipts for adult use