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HomeMy WebLinkAboutAgenda Packet 01/24/1995 i PUBLIC REVIEW COPY " Mon A at sorra AGENDA ATASCADERO CITY COUNCIL ` REGULAR MEETING CITY ADMINISTRATION BUILDING 6500 PALMA AVENUE, 4TH FLOOR ROTUNDA ROOM Tuesday, January 24, 1995 7:00 P.M. This agenda is prepared and posted pursuant to the requirements of Government Code Section 54954.2. By listing a topic on this agenda, the City Council hag expressed its intent to discuss and act on each item. In addition to any action identified in the brief general description of each item, the action that may be taken shall includ : A referral to staff with specific requests for information, continuance specific direction to staff concerning the policy ormission of the item;discontinuance of consideratioll, authorization to enter into negotiations and execute agreements pertaining to the ite adoption or approval,• and, disapproval 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 (Room 08) and in the Information Office(Room 103), available for public inspection during Cit K Hall business hours. The City Clerk will answer any questions;regarding the agenda. In compliance with the Americans with Disabilities Act, if you need sp 11 assistance;to participate in a City meeting or other services offered by this City,please ontact the City Manager's Office ((805)461-5010) or the City Clerk's Office ((805) 461-5074). Notifica- tion at least 48 hours prior to the meeting or time when services are neede Y will assist the City staff in assuring that reasonable arrangements can be made to prove a accessibility to the meeting or service. 'RULES OF PUBLIC PARTICIPATION: PLEASE SEE BACK PAGE CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL CITY COUNCIL COMMENTS COMMUNITY FORUM: Please see `"Rules of Public Participation ' (Back Page) A. CONSENT CALENDAR: All matters listed under Item A, Consent Calendar, are considered to be routine, and will be enacted by one motion in the form listed below. There will be no separate discussion on these items. A member of the Council or public may, by request,have any item removed from the Consent Calendar,which shall then be reviewedand acted upon separately after the adoption of the Consent Calendar: 1. CITY COUNCIL MINUTES - December 13, 1994 2. CITY COUNCIL MINUTES - December 29, 1994 3. CITY TREASURER'S REPORT - December, 1994 4. RESOLUTION NO. 04-95 - Authorizing the filing of a claim for Local Trans- portation Funds,and State Transit Assistance Funds in ,compliance with the Transportation Development Act B. PUBLIC HEARINGS: 1. ORDINANCE NO. 283 -Amending Title 7 of the City Municipal Code (Sanitation Ordinance) relative to sewer connection time limits (Recommend (1) motion to waive reading in full and read by title only, and (2) motion to introduce on first reading by title only) C. REGULAR BUSINESS: 1.`' SOLID WASTE MANAGEMENT A. Solid waste management issues Status report B. Discussion on cost savings associated with landfill change C. Wil-Mar Disposal - Consideration of 3-year contract extension request (cont'd from 1110/95) 2. LOAVES & FISHES - Request for use of City-owned property 3. RESOLUTION NO. 03-95 -_Appointing one member to the City's Planning Commission 4. ORDINANCE NO. 282 Amending Parks & Recreation Commissioner terms (cont'd'from 11/8/94) (Recommend motion to adopt on second reading by title only) 2 5• MID-YEAR FINANCIAL REVIEW Set Special Meeting ate: F 1995, 7 p.m. ebruary 23, 6• NORTH COUNTY SUMMIT - Set meeting date: Januar 1 19 Y 95, 7 p.m. 7. APPOINTMENTS TO SELECTION SUBCOMMITTEE - Par ks Commission Youth Representative (Verbal Mayor Bewley) 8i Recreation D. COMMITTEE REPORTS (The following represent ad hoc or standing committees. Informative status reports will be given, as felt . necessarYl�): 1• S.L.O.'Council of Governments/S.L.O. Regional Transit Authorit 2.' City/School Committee Y 3• County Water Advisory Board/Nacimiento Water Purveyors Advi 4• Economic Round Table sort' Group 5. Finance Committee 6. Highway 41 Realignment Community Advisory Committee 7• Air Pollution Control District E. INDIVIDUAL DETERMINATION_AND/OR ACTION: 1•' City Council 2.. City Attorney 3., City Clerk 4. City Treasurer 5. City Manager J I 3 • RULES OF PUBLIC PARTICIPATION: The City Council welcomes and encourages your ideas and comments as a citizen. To increase the effectiveness of your participation, please familiarize yourself with the following rules of decorum: o Members of the audience may speak on any item on the agenda, in the order the item(s) are addressed by the Council, as directed by the Mayor. Items not on the agenda should be submitted during the Community Forum period (see below). o Persons wishing to speak should step to the podium and state their name and address, for the official record. o All remarks shall be addressed to Council, as a whole, and hot to any individual member thereof. O No person shall be permitted to make slanderous, profane or personal remarks against any elected official, commissions and staff. o A person may speak for five (5) minutes. o No one may speak for a second time until everyone wishing to speak has had an opportunity to do so, and no one may speak more than''twice on any item. o Council Members may question any speaker; the speaker may respond but, after the allotted time has expired, may not initiate further, discussion. O The floor will then be closed to public participation and open for Council discussion. COMMUNITY FORUM: o The Community Forum period is provided to receive comments from the public on matters other than scheduled agenda items. o A maximum of 30 minutes will be allowed for Community Forum, unless Council authorizes an extension. o State law does not allow the Council to take action on issues not on the agenda; staff may be asked to follow up on such items. • r 4enda Item: A-1 Meeting Date: 01/24/95 I ATASCADERO CITY COUNCIL DECEMBER 13, 1994 MINUTES i The Mayor called the meeting to order at 7:00 p.m. Councilpersoo Johnson led the Pledge of Allegiance. ROLL CALL: Present: Councilmembers Carden, Highland, Johnson, Luna and Mayor Bewley Absent: None a Also Present: Muriel "Micki" Korba, City Treasurer and Lee Price, City Clerk Staff Present: Andy Takata, City Manager; Henry Engen, Community Development Director; Art Montandor , City Attorney; Brady Cherry, Director of Community Services; Brad Whitty, Finance Director; Bud McHale, Police Chief; Steve Sylvester, City Engineer and John Ne�l, Assistant City Engineer COMMUNITY FORUM: i Senator Jack O'Connell introduced himself and noted that the would soon open a district office in San Luis Obispo. He indicated that he was Io1oking forward to 1 working with the City. a Ray Jansen, 6655 Country Club Drive, appealed for a deeper sense of unity and a strong commitment to honesty and other enduring values. Michael Kovacs, Mesa Road resident, wanted to address th4 Orange County Investment Pool crisis. The Mayor asked him to hold his comment until the agenda item is addressed (Item #C-1). Terrill Graham, 6205 Conejo Road, argued that the CC 12/13/94 Page 1 i I Mayor was violating the Brown Act by not letting Mr. Kovacs speak. The City Clerk and City Attorney clarified public speaking rules. Rush Kolemaine, Potrero Road resident, asked that only residents of the City be allowed to address the Council under Community Forum. Don Saueressig, 10735 San Marcos Road, urged the removal of the Carlton Hotel sign and encouraged business owners in the downtown to paint their buildings. Terrill Graham asserted that the Carlton Hotel sign is of historic significance and encouraged rehabilitation rather than removal. A. CONSENT CALENDAR: 1. CITY COUNCIL MINUTES - November 8, 1994 2. CITY COUNCIL MINUTES - November 29, 1994 3. APPROVAL OF WARRANTS FOR THE MONTH OF NOVEMBER, 1994 4. TENTATIVE PARCEL MAP 07-91, 9210 ATASCADERO AVE. - Acceptance of final parcel map to divide an existing parcel of approximately one acre into two parcels, each having a net area of approximately 21,500 sq. ft. (Plotkin) 5. RESOLUTION NO. 119-94 - Authorizing the extension of a lease with the SLO County Genealogical Society for a library in the City Administration Building 6. RESOLUTION NO. 120-94 - Approving application for grant funds under the used oil 'recycling block grant program B. PUBLIC HEARINGS: 1. ECONOMIC DEVELOPMENT ELEMENT - Presentation by Greg Koert of Draft General Plan Element and recommendation of the Economic Round Table to refer the draft plan to the Planning Commission for hearing Henry Engen introduced consultant Greg Koert of the firm Palmer Koert who presented an overview of recommendations set forth in the Draft Economic Element. Brief Council questions followed. CC 12/13/94 Page 2 Public Comments: Rush Kolemaine complimented the consultant for his efforts relating to the technical report. He encouraged the City Council to act on recommendations previously forwarded. Sid Bowen, 5550 Cascabel Road, encouraged additional study on how the plan will impact other elements of the General Plan. He also suggested that goals should be more specific and that consumers' input be solicited to determine actual needs. Eric Michielssen, President of Chamber of Commerce, remarked that the Board of Directors has not come to any concrete conclusions but are Ourrently studying the draft's key points. He noted that there is support for some of the recommendations, specifically regarding economic development and tourism expansion. Lindsey Hampton, 8402 Alta Vista, asked the consultant to clarify the study's recommendation to locate a large retail store, like "Target", near the outlet center. Greg Koert explained that clustering retail uses in this manner will promote comparative shopping, draw shoppers from outside the community and offer a greater sales tax return. Livia Kellerman, Honda Avenue resident, asked what effect,'a discount store like "Target" would have on the downtown. Mr. Koert reported that he did not expect that it would help or hurt the downtown. He noted that people will shop downtown if entertainment is provided. Mrs. Kellerman asked if the City was aggressively recruiting for a restaurant in the downtown. Andy Takata noted that staff has been active in this regard and working with architect Frank Henderson in the rehabilitation of the Carlton Hotel for this attraction. Mrs. Kellerman proposed that the City develop a theme or character for the downtown. Terrill Graham proposed that instead of conducting another study, the City Council begin to rely upon themselves, local businessman and citizens to fulfill the economic goals and dreams of the community. ---End of Public Testimony--- Councilman Johnson, Council representative to the Economic Round Table, submitted the Summary Report of the Economic Round Table (see Exhibit"A"). He commented that Rush Kolemaine had offered some good administrative suggestions (like numbering the basic community goals on the first page) inhis letter to the City Council dated December 8, 1994 (see Exhibit "B") and suggested that the Planning Commission review them. In addition, he made the following observations and CC 12/13/94 Page 3 recommendations: 1 . Referring to "bubble" 3 of the basic community goals, proposed that language be expanded to allow for a variety of uses for industrial areas, as supported in the Technical Document. 2. Requested clear definitions for "Downtown Industrial Park Areas" and "Business Park Site". 3. Pointing to C-1 . Site Selection on page X-4 of the document, commented that the second sentence regarding a location fora discount department store was too restrictive and suggested that it be re-worded, as follows: "...located on a site best suited for development". 4. Referring to page X-5, Item #2, suggested that should a retail space directory be developed it be categorized by use. This would clarify what kinds of uses are appropriate and reasonable for vacant commercial space. Regarding Item #4 on the same page, pointed out that some vacant retail space is not rentable and commented that he supports the need to in-fill existing retail space, the space must be adequate and useable. He also suggested that the closing policy statement in this section be re-worded to encourage in-fill rather than discourage development of additional retail acreage without specifying that it should only occur between the two bookends of the downtown. 5. Regarding Section F. on page X-7, cautioned against limiting the use potential for acreage along north EI Camino Real and objected to verbiage in F-1 . He remarked that some industrial uses serve retail as well. 6. Recommended that Section G. (page X-9) be moved to the Appendix rather than being included as a part of the Element. Councilman Luna indicated that he had no objection to numbering the basic community goals as long as it is qualified that they are not ranked in order of priority. He also cautioned against recommendations made to replace all "shoulds" with "spalls" stressing that these are hard economic times and mandates will encumber the flexibility of the Council to make good fiscal decisions. Mayor Bewley remarked that he favors stronger language in the document and agrees with some of the recommendations set forth in Mr. Kolemaine's letter. Councilman Carden proposed that the Element include a recommendation to research and seek out the kinds of businesses that support local manufacturing companies that CC 12/13/94 Page 4 have an international market (i.e., Weatherby). Councilman Johnson concurred. The City Council, by consensus, agreed to forward the Economic Element along with recommendations made by the Council, to the Planning Commission for public hearing. 2. TENTATIVE PARCEL MAP 94-003, 8505 GRAVES CREEK, RD. - Appeal of Planning Commission-imposed Conditions of Approval on proposed division of 6.0-acre parcel into two lots of approximately 3.0 acres each,(Lavallee/Wilson) The Mayor noted that the appellant had requested a continuance. Council consented to continuing the matter until the first regular meeting in January,','' 1995. C. REGULAR BUSINESS: 1. DISCUSSION ON ORANGE COUNTY FUND: Mayor Bewley clarified that the public will be allowed to speak and;that there will be no discussion of a utility tax. Andy Takata summarized the Orange County Investment Pool (OCIP) situation and provided an account of what funds the City has in the pool. He outlined specific actions taken by staff in response and observed that the ultimate impact is unclear. The City Manager confirmed ,that there is no recommendation for utility tax, or any other tax, at this time. Councilman Highland read a prepared statement regarding the situation (see Exhibit A). City Treasurer Micki Korba reported that the Orange County Pool was rated Triple A and commented that there is no safer investment. She indicated that the first requirement for investments to ensure safety was observed and added that the State Fund also invests in reverse purchase agreements. She noted that she had consulted with the Finance Director and they had considered, before the crisis, transferring funds from Orange County to State Fund. Mrs. Korba asserted that as the elected treasurer she answers to the public and makes every effort to acquaint the Council about the City's investments. Councilman Johnson observed that there seems to have been a failure to disclose vital investment information on the part of Orange County. He commented that it is vital that the Council address inadequate funds and revenues in the City and added that it is unfortunate that the City has had to "live" on investment income. Councilman CC 12/13/94 . Page 5 Johnson indicated that he would present some specific recommendations following public testimony. Councilman Luna pointed out that there is a treasurer's report on the Council agenda each month and noted that it is public information. He also mentioned that the Treasurer was re-elected in June with 90% of the vote and there was no concern at that time about the investment policy. Investment authority, he stated, is determined by statute and the City's Municipal Code requires the City Treasurer to secure the maximum rate of return on invested City funds. He spoke in favor of continued efforts to cultivate economic development of the community and indicated that he hopes that there will be a detailed accounting for the public to review within a few months. Mayor Bewley noted that he had been confident the money was secure and explained that the Council takes responsibility. He encouraged all to avoid pointing fingers and instead to learn from the situation and move forward. Public Comments Rush Kolemaine, Potrero Road resident, stated that he agreed with Councilman Highland's comments and urged the City Council to construct a safer financial investment policy for the City. Don Saueressi9, 8735 San Marcos, asked the City Council to present to the public answers to questions like: Does the Treasurer have expertise in the area of investments? Did the Council review the investment policy and if so what input was made? Does the Council receive periodic reports from the City Treasurer? Was a memo to the City Manager from former Finance Director, Mark Joseph, brought to the attention of the Council at the time of its' writing? Why wasn't professional investment advice sought? He suggested that the City's investment policy be amended. The City Treasurer responded to the speaker's questions and Councilman Luna read a portion of Section 2-7.05 of the Atascadero Municipal Code relating to investments. In addition, Councilman Luna pointed out that the investment practices are reviewed annually by,the financial auditor. Michael Kovacs, Mesa Road resident, criticized the investment and asserted that it had not been made in the best interest of the public. Marvin Wilson, 9185 Santa Margarita Road, suggested that a committee be formed to guide and provide input to the Treasurer. Bob Johnson, 9469 Jornado Lane #4, commented that the Treasurer followed the CC 12/13/94 Page 6 investment policy approved by the Council and encouraged City officials to wait until all questions have been answered before making any changes in the policy. He asked the Council to call for an independent investigation into the situation and then act responsively. Sid Bowen, 5550 Cascabel, advocated proactive solutions andi suggested that there may be some expertise in the community that can provide guidance. Rush Kolemaine, speaking again, asked if the City could bankrupt. Andy Takata assured the public that staff feels confident the City will remain financially stable. ---End of Public Testimony--- Individual Council comments followed. Councilman Carden expressed support for forming an investment review committee composed of members of the banking community. He was not in favor of contracting for independent investigation; he noted that the government, state government and other regulating agencies already perform this function. What is needed, he concluded, is that the City learn a lesson from the investigations that take place, look more closely (and on a continuing basis) at the City's investment policy and regularly scrutinize investment reports. Councilman Johnson recommended that staff be directed to re-draft the investment policy annually (even though it is not now required by State law to do so), examine high risk investments and establish what kinds of investments are not appropriate. He suggested that a regular investment review process be !established, at least annually, and at any major change in investment strategy. The review, he added, should be done by an investment professional(s). In addition, he proposed that quarterly reports from the investment organization should be required and that a policy be established that if quarterly reports are not submitted, then the City will restrict investments with that organization. He also stated that he would like the Council to consider amending the Municipal Code relative to investments by adding a statement calling for fiduciary responsibility and prudent investments. Councilman Luna asked the City Attorney if it was proper to,:, at this time, discuss making changes to either the Municipal Code or to the investment policy resolution. Art Montandon advised that it is permissible for the Council to provide staff with input and direction to come back with proposed revisions and recommendations in the appropriate form. Councilman Highland commented that the investment policy''resolution should be adopted annually in July or August so that it will coincide with the beginning of the fiscal year. CC 12/13/94 • Page 7 Councilman Luna forwarded a copy of a League of California Cities paper regarding principles and techniques for protecting City funds and investments to staff and commented that he would like to see much of it incorporated into the City's investment policy. Councilman Carden requested that staff come back with recommendations regarding creating a financial investment review committee. Andy Takata reported that the city managers from all cities outside of Orange County will be meeting to come up with a common strategy and staff will know in a few days how much, if any, of the City's funds can be withdrawn. Staff, he added, is proposing a special Council meeting for December 29th as a work study session to look at the impact on pending capital projects and to on-going contracts. By mutual consent, the City Council agreed to meet December 29th as recommended. Staff recommended the adoption of the following two resolutions: A. Resolution No. 121-94 - Authorizing and directing City staff to request a property tax advance from the County of San Luis Obispo for the second half of the 1994-95 fiscal year The Finance Director noted that the request would only be exercised if staff determined it necessary. MOTION: By Councilman Luna, seconded by Councilman Carden to approve Resolution No. 121-94; motion carried 5:0 by roll call vote. B. Resolution No. 122-94 - Authorizing and directing City staff to obtain a line of credit from a financial institution to meet the short-term cash flow needs of the City The Finance Director noted that the line of credit would only be utilized if an identifiable revenue source can repay the amount drawn within ten days. MOTION: By Councilman Luna to approve Resolution No. 122-94. Discussion on the motion: Councilman Carden inquired if staff was researching the best rate. Andy Takata responded affirmatively. Second and vote on the motion: Councilman Johnson seconded the motion; motion passed 5.0 by roll call vote. CC 12/13/94 Page 8 • 2. SAN GABRIEL BOOSTER STATION - Consideration of request by the Atasca- dero Mutual Water Co. to conceptually approve future alignment of San Marcos Rd. across City property Henry Engen provided the staff report and recommendation to approve conceptually the realignment of San Marcos across City property and accept for processing a Conditional Use Permit application (noting that the matter will go to the Planning Commission for public hearing). Brief Council questions followed, Councilman Highland commented that he did not see any conflict with the General Plan. Public Comments: Steven Ward, 10012 Santa Marcos Road, voiced opposition to the realignment. He expressed discontentment about the Water Company's plans to construct a building that will block vision and create an unsafe situation for residents pulling into and out of a shared driveway. He suggested that the matter needed further study. Ken Weathers, Atascadero Mutual Water Company, reported that engineers are working on the design of the structure and noted that his staff is planning to address concerns before the matter goes to public hearing. He explained that the pump station is presently at capacity and, using overhead transparencies, illustrated objectives for the upgrade. Upon motion duly made and seconded, the City Council unanimousyagreed to extend the meeting past the hour of eleven o'clock. ---End of Public Testimony--- By general consensus, the City Council approved the concept, as>recommended. 3. GENERAL PLAN AMENDMENT REQUESTS -Consideration of.Planning Commis- sion's recommendation regarding initiation of hearings to consider applications to amend the General Plan Mayor Bewley asked the City Attorney to advise the Council on whether or not they could legally discuss the Portola Road General Plan request. Art Mgntandon explained that discussion would violate normal procedure but technically not!'legal requirements because the matter is referred to in the staff report. By mutual areement, the City Council elected not to consider the Portola Road General Plan request. CC 12/13/94 Page 9 Henry Engen provided the staff report and recommendation to approve initiation of five applications for consideration. Councilman Luna stated that he would vote against the GPA #94002 (Ramona request) when the if and when matter comes before the City Council for change. Public Comments: Richard Beck, applicant, spoke in support of GPA #94002 (Ramona request) and stated that he had not received notice that the matter was being set for the City Council agenda. Russ Thompson spoke in support of the request submitted by the Pentecostal Church (GPA #94005). Richard Summers spoke in support of his application (GPA #94003). Lee Price, on behalf of the Berean Baptist Church, thanked the Council for giving consideration to GPA #94001. The matter was closed to the public. --End of Public Testimony--- Henry Engen, responding to inquiry from Councilman Carden, clarified that the Ramona Road request was for a land use change with the applicant desiring a negative declaration(a finding that there are no significant environmental impacts) and that an Environmental Impact Report (EIR) not be performed. He also noted that the applicant is seeking a Tourist Commercial change and is not requesting an extension of the Urban Services Line (USL) to the property. Adjacent property (Hemingway), he added, is also Tourist Commercial without sewer and pointed out that most feasible uses for that zoning require sewer. Councilman Carden asked what types of uses are appropriate for the present zoning (Suburban Single Family Residential). Mr. Engen replied single family homes, schools and churches (with a use permit). Uses for Tourist Commercial, he added, are primarily gas stations, motels and restaurants. He mentioned that Caltrans has already indicated that a bridge widening will be required if there are any density changes to the west side of the freeway on the north end of town. The cost of this, he concluded, is approximately 1.3 million dollars. MOTION: By Councilman Luna, seconded by Mayor Bewley to go ahead with General Plan Amendments #94001, 94003, 94004, 94005. Discussion on the motion: Councilman Johnson asked for further clarification CC 12/13/94 Page 10 , regarding environmental review. Henry Engen explained that staff recommends that an EIR be conducted on the Ramona Road request. CEQA (California Environmental Quality Act) allows the recommendation of denial without doing an EIR. Councilman Highland pointed out that the Council's action is only to recommend that the applications be accepted for processing. Vote on the motion: Motion passed unanimously by roll call vote. MOTION: By Councilman Carden, seconded by Mayor Bewley, to approve GPA #94002 for review allowing the applicants to make the decision to pay for an EIR or not; motion 'failed 2:3 (Luna, Johnson, Highland). 4. ORDINANCE NO. 280 - Amending Title 8 Building Regulations Chapter 12 on unreinforced masonry buildings to amend time limits for compliance and related matters (Recommend motion to adopt on second reading by title only) MOTION: By Councilman Highland, seconded by Councilman Carden to waive the reading and adopt Ordinance No 280 on second reading by title only; motion carried 5:0 by roll call vote. . D. COMMITTEE REPORTS (The following represent ad hoc or standing committees. Informative status reports will be given, as felt necessary.): 1. S.L.O. Council of Governments/S.L.O. Regional Transit Authority - Councilman Carden reported that a draft transit proposal is on record and on the Council desk for review and comment. He noted that he has requested, in a review of Caltrans projects, that the+,,41 alignment and the 41 off-ramp improvement project be constructed''at the same time. 2. City/School Committee - The City Manager noted that, due to the OCIP meeting in southern California, the December meeting has been postponed until January. 3. County Water Advisory Board/Nacimiento Water Purveyors Advisory Group - Councilman Highland reported that the Board of Supervisors were today to take up approval of language of the finial contract for the Nacimiento Water project. 4. Finance Committee - Councilman Luna reported that the committee had met the previous week to discuss the OCIP situation. He pointed out CC 12/13/94 • Page 11 that there has never been adopted a resolution which establishes the Finance Committee and its' duties. There was consensus to direct staff to come back with said resolution. E. INDIVIDUAL DETERMINATION AND/OR ACTION: 1 . City Manager Andy Takata announced that the regular City Council meeting scheduled for Tuesday, December 27th had been canceled due to the Christmas Holiday and mentioned that the City Council would be adjourning the meeting to Thursday, December 29, 1994 at 7:00 p.m. for purposes of reviewing current and pending contracts. Staff, he added, will be requesting priority direction from the City Council. THERE BEING NO NEED FOR A CLOSED SESSION, MAYOR BEWLEY ADJOURNED THE MEETING AT 11:31 P.M. TO THURSDAY, DECEMBER 29, 1994 AT 7:00 P.M. MINUTES RECORDED AND PREPARED BY: LEE PRICE, City Clerk . Attachment: Exhibit A (Highland) CC 12/13/94 Page 12 CC 12/13/94 EXHIBIT A Page 1 HIGHLAND, George My purpose, in making a formal statement tonight, is to try to inform the citizens of Atascadero of my assessment of where the rssponsibility lies for Atascadero's current financial dilemna. The previous Council shares responsibility. On Decembev 14, 1993, they adopted Resolution 144-93, which formalized the Investment Policy of the City of Atascadero. In my opinion, this policy was lacking in several respects. The very first statement should have simply said, "It is the policy of the City of Atascadero that the primary concern im-investing public funds shall be the safety and security of such funds." Although the Council did put a maximum of 109E of the total investment portfolio that could be invested in a single security type or a single financial institution, it EXEMPTED from this limitation U. S. Treasury Securities, the State LAIF and the Orange County Agency Investment °'°,:Fund.The latter two are not subject to any oversight. It is my understanding this Policy Statement was originally written by the City Tressursr 'and the Finance Director. The City Manager shares responsibility. He did not bring to the attention of the previous Council, nor was his follow—up adequate, a March 1993 memo from Finance Director Mark Joseph. This memo questioned the advisability of putting a high percentage of City funds in a single investment fund. Joseph prophetically made the point "the higher the interest rate, the higher the risk". In addition, the City Manager failed to bring this Investment Policy Statement to the attention of the newly elected Council last July. With a majority of the Council not being aware of many of the existing City policies, a statement so fundamental to C,ity operation should have been a primary item of information. I, also, share responsibility. Having been a member of !',the first Council, I should have remembered that the Council must establish investment policy. Had I seen the current statement upon taking office, I 'would have expressed strong objections to parts of it and demanded revision.'' The major share of responsibility lies upon the shoulders of the City Treasurer. The Orange County Agency Investment Fund invested heavily in Reverse Repurchase Agreements, an investment mechanism which attempts to take advantage of the different interest rates between Song term and short term securities. The gross monthly interest rates for this fund have decreased steadily since March of 1992, which should hags suggested closer monitoring of the fund. The Federal Reserve Board has raised interest rates • 6 times this year. I suggest that, at the time of the third increase last Spring, the Treasurer should have had second thoughts concerning the role CC 12/13/94 EXHIBIT A H.oHLAND pg 2 of 2 of Reverse Repurchasing Agreement Apparently she did not. I have no investment expertise, but common sense tells me one does not invest 98.8° of one's funds with a single agency. Either the Treasurer was not fully informed of what was going on or, if she was, she didn't tell either the City Manager or the Council. All she told us was how much money she was making for the City. Interest earned, not safety, seemed to be her bottom line, to the exclusion of everything else. In my opinion, she was negligent. The Treasurer has handled this whole situation, in terms of informing the public, probably as poorly as could be done. Her first statement to the press, that she didn't know how much the City had in the Fund, was not designed to inform the public and had to be less than truthful. The follow— up statement, that it was "only a paper loss", would be comical if it wasn't so serious. I would remind her that a dollar bill is only paper, but a million of them (the potential loss) goes a long way toward paying City bills. The final insult to the concerns of the public was her appro— priation of Marie Antoinette's "Let them eat cake" and paraphrasing it 0 "The Council can adopt an utility tax". That statement alone kept my phone ringing all day Thursday. The Treasurer appears to be unwilling or unable to acknowledge any responsibility for the predicament in which the City finds itself. Not only has the Treasurer lost my confidence, she has antagonized a substantial number of Atascaderans. Finally, there is an attorney, living in Atascadero, who shares responsi— bility. In 1981, in a move designed solely to embarass the first Council and the City Manager, this individual forced an election to determine whether the offices of City Clerk and City Treasurer should be appointed or elected. He convinced voters that elected officials would be more answerable to the public. His argument prevailed. Since that time, the only require— ments for these two offices is a candidate shall be a registered voter and be breathing. No pertinent experience is required. Perhaps it's time to consider making a change. 1 1 { Agenda Item: A-2 Me} ting Date: 01/24/95 ATASCADERO CITY COUNCIL ADJOURNED MEETING DECEMBER 29, 199,0 MINUTES The Mayor called the meeting to order at 7:00 p.m. Coun3 ilperson Luna led the Pledge of Allegiance. 1 ROLL CALL: j 3 Present: Councilmembers Carden, Highland, Johnson, Luna and Mayor Bewley Absent: None Also Present: Muriel "Micki" Korba, City Treasurler and Lee Price, City Clerki 3 Staff Present: Andy Takata, City Manager; Henry Engen, Community Development Director; Art Mont ndon, City Attorney; Brady Cherry, Director of Community Services; Brad Whitty, Finance Director;John Neil, Assistant City Engineer and Mark Markwort, Chief of Wastewater Operations CITY TREASURER'S COMMENTS: City Treasurer, Micki Korba, indicated that she had a prepared statement and because of pending eye surgery had asked her husband, Leon Korba to read it. Mr. Korba stepped to the podium and read the statement (see Exhibit Al). 1 COMMUNITY FORUM: Ray Jansen, 6655 Country Club Drive, urged all to realize community roles, express what is heartfelt in rational actions, become more aware of i others, provide ethical guidance to the young and work for greater spiritual understlanding. i CC 12/29/94 Page 1 I 1 I Mike Hoover, General Manager of the Chicago Grade Landfill, urged the City Council not to intervene in the pending lawsuit between Chicago Grade Landfill and Wil-Mar Disposal, Inc. He commented that Wil-Mar can chose to haul Atascadero's solid waste to Chicago Grade with no change in rates and reported that Chicago Grade Landfill meets all state, county and local regulations. He asserted that the Paso Robles Landfill is in violation of State Law and suggested that there appears to be an undisclosed financial interest that may ultimately and adversely effect service and create a monopoly. The City Attorney reported that the City Council would be discussing the litigation matter during Closed Session but clarified that he is providing no recommendation to participate in an amicus brief filed in the case. Greg Grisanti, 5275 Cabrillo, commented that he was opposed to the fact that Wil- Mar can collect its' bad debts by having them placed on the tax rolls. He encouraged City officials to work things out with Wil-Mar and the landfill. If Chicago Grade goes out of business, he cautioned, who's going to pay for its' clean-up? A. CONSENT CALENDAR: 1. CITY COUNCIL MINUTES - November 29, 1994 (cont'd from 12/13/94) 2. APPROVAL OF WARRANTS FOR THE MONTH OF NOVEMBER, 1994 (cont'd from 12/13/94) 3. FINAL PARCEL MAP 94002, 5150 ATAJO ROAD - Subdivision of a 5.05 acre parcel into three parcels for single family residential use (Gearhart) 4. FINAL TRACT MAP 23-89, 11455 VIEJO CAMINO - 19-tot residential subdivision (Gearhart) Henry Engen requested that Items .#A-3 & 4 be continued. By mutual consent, the City Council continued these items until the next regular meeting (1110195). MOTION: By Councilman Luna, seconded by Councilman Carden to approve Items #A-1 & 2; motion unanimously approved by roll call vote. B. REGULAR BUSINESS: 1. PRIORITIZATION OF CONTRACTS AS FUNDS BECOME AVAILABLE Andy Takata reported that because of the Orange County Investment Pool (OCIP) CC 12/29/94 Page 2 situation and the present cash flow problem, staff had requested,:this study session to prioritize pending capital improvement projects and contracts. 1 He explained that staff would present a summary of the contracts (Items #A - U), in order as they appear in the staff report. Brady Cherry, Community Services Director, provided details regarding the current traffic signal maintenance contract and noted that staff had planned to come to the City Council with a recommendation for renewal in January of 1995. He summarized options, including performing maintenance in-house and responded to Council inquiry. The City Attorney advised that there would be additional liability to the City if there is an accident or problem associated with staff performing the maintenance. Brady Cherry then provided an overview of the street sweepingi contract and brief discussion ensued. Henry Engen summarized capital improvement projects (Items #C - M) and noted that Item #L should be corrected to include the name of the contractor: Miller Drilling Company. He added that this was a contract previously authorized, but not yet executed, and is for Phase I of the reclamation wells program at the wastewater treatment plant. Mr. Engen reported that there are remaining phases totalling $293,740 and noted that the first contract phase is essential. ' Other phases, he added, might be continued into the future. Mark Markwort, Chief of Wastewater, responded to questions regarding sewer improvements and thei, reclamation wells project. He recommended that, while remaining phases might be+, deferred, it would be far more expensive down the Fine to delay Phase I. The City Manager pointed out that there are some sewer improvements necessary for cease and desist areas that were not put on the agenda because they are state-mandated and,are not options for the Council to defer. Henry Engen noted that staff was presently interviewing design teams to work on the wastewater treatment plant upgrade (Item #M) and suggested that a firm be selected, but the contract award be delayed. Continuing, Henry Engen provided an explanation of Items#N - P and noted that these items involve grant funding. He outlined Items #Q - U. and indicated that these projects would be paid for out of General Fund monies. Following questions, Mr. Engen noted which funds monies would have to come from in order to pay for each item listed. Public Comments: Rush Kolemaine, Potrero Road resident, stated that he was disturbed by the fact that CC 12129/94 Page 3 grant projects are being considered for prioritization. Doug Chisholm, 5205 Escarpa, urged Council to reconsider paying for the Environmental Impact Report (EIR) for the "Dove Creek" (Hendrix) property given the OCIP crisis. Cheryl Pagliolongia, 11375 Atascadero Avenue, also asked the Council to reconsider the EIR for "Dove Creek". O.W. Smith, 11705 Atascadero Avenue,encouraged the Council to consider dropping funding the EIR for the "Dove Creek" project. Joan O'Keefe, 9985 Old Morro Road, read a prepared statement expressing her concerns about prioritizing the Hendrix property and Native Tree Fund monies (see Exhibit B). Sid Bowen, 5550 Cascabel, urged commitment to the downtown parking improvements and the "Dove Creek" EIR. Dorothy McNeil, 8765 Sierra Vista, read a prepared statement opposing funding the EIR for the Hendrix property (see Exhibit Cl. Bob Powers, 7505 Carmelita, urged the Council to eliminate "Dove Creek" as a priority. Daphne Fahsing, 5105 Llano Road, demanded that members of the City Council who voted in favor of EIR for "Dove Creek" be required to pay the City back for the cost. John McNeil, 8765 Sierra Vista, asked the City Council to remove the Hendrix property EIR from the priority list. Carol Dehart, 4375 Lobos, urged the Council to spend limited funds on developing the downtown, community children, Dial-A-Ride and citizens in general. Robert Huot, 3850 Ardilla Road, stated that he, too, was opposed to the City spending public funds on preparing an EIR for the Hendrix property. Eric Michielssen, 5300 Aguilla, Chamber of Commerce President, indicated that he was speaking for 400 members of the Chamber in favor of prioritizing the "Dove Creek" EIR because determining appropriate commercial retail property is a solution to generating more income. CC 12/29/94 Page 4 • Ray Jansen, 6655 Country Club Drive, commented that the presdnt crisis reveals an excellent opportunity to look for innovative ways to save money and eliminate waste. George Beatie, 10025 EI Camino Real, proposed that, in order to continue to provide services and recreational opportunities, the City needs to increase its' tax basis through development fees or a utility tax. Leo Korba, 10905 Santa Ana Road, asked that the Council carefully consider all arguments on both sides of the "Dove Creek" EIR issue. The City Clerk read letters from Donna Moss and K.M. Barthels (spe Exhibits D & E). Note: A letter from Elnora and Frank Garcia was submitted, but not read, and is made part of the record (see Exhibit F). Rush Kolemaine, speaking again, asserted that speakers representing the Atascadero Homeowners' Association have violated certain rules of public participation and have added nothing to the quality of deliberations. He asked the mayor to remind speakers of the rules. Mayor Bewley stated that everyone has the right to speak and there had not been any violations. Councilman Highland added that any group can come and say anything they want. Councilman Luna complimented the Magor for the way he was handling the meeting and pointed out that rules are guidelines for debate. Doug Chisholm, speaking once more, explained that he is a member of both the Atascadero Homeowners' Association and the Atascadero Chamber of Commerce. He debated comments made by Eric Michielssen and asserted that Mr. Michielssen had not polled the membership for a determination about the "Dove Creek" issue. He suggested that this matter might best be put to the voters. O.W. Smith spoke again and asked that all General Fund projects, including the "Dove Creek" EIR, be stricken off the list. ---End of Public Testimony--- The Mayor called a 15-minute break at 9:22 p.m. The meeting was reconvened at 9:35 p.m. Lengthy Council discussion followed regarding capital improvement projects. There was consensus to take grant items individually, as they come and on an as-needed basis. In addition, the Council agreed that capital improvement projects (Items #C - M) will be prioritized by staff, as follows: First priority will be heart and public safety issues;second priority will be those items relating to economic development and, third priority will be all others. CC 12/29/94 Page 5 Discussion ensued regarding Item #A, traffic signal maintenance. Councilman Highland spoke in favor of continuing with the contract service because of potential liability. There was concurrence that the traffic signal maintenance contract be continued. Brief discussion followed regarding Item #B, street sweeping services. Brady Cherry mentioned that the contract was due to expire in March of 1995 and explained that the contractor was willing to negotiate modified services. The City Council directed staff to negotiate with the contractor alternative sweeping schedules and pursue reduced monthly costs. Discussion followed regarding Items #Q - U to be funded by General Fund monies. There was general agreement that these items, with the exception of Item #S ("Dove Creek" EIR), would be deferred (see motion end of page). Individual Council comments followed regarding Item #S, "Dove Creek" EIR. Councilman Carden spoke in favor of moving forward and stated that the expenditure would have a positive impact because it will attract business. Councilman Luna argued that this item should, like the other General Fund projects, be deferred. Councilman Johnson debated that the EIR is critical to capturing leakage of sales tax revenue and claimed that it is a better idea than raising taxes or fees. Councilman Luna asserted that he disapproved of using tax dollars to fund the EIR and did not agree with the concept that if the City pays for it (the EIR), the project will come. He pointed out that an EIR has been paid for by a developer for the proposed auto mall on the north end of town and as yet, there is no project. Councilman Carden refuted that the potential for the auto mall site is limited. He proclaimed that preparing the EIR was an investment that will put the City in competition with other cities for commercial development and pointed out that a site specific EIR will still have be done later. Councilman Highland commented that reputation has it that Atascadero is not friendly toward business. He said the reason he is in favor of the limited EIR is because it will send a message that Atascadero welcomes business. MOTION: By Councilman Luna to defer all General Fund items [Items #Q - U]; motion died for lack of second. Councilman Johnson asked staff how long it would take to the prepare the EIR. Henry Engen reported that once approved, the EIR would take approximately ten weeks to complete. MOTION: By Councilman Carden, seconded by Councilman Highland to defer all the items on the General Fund list [Items #Q - U] except for the ["Dove Creek"] EIR; motion passed 4:1 (Luna opposing). CC 12/29/94 Page 6 MOTION: By Councilman Carden, seconded by Mayor Bewley to move forward with the EIR and concurrently prepare a cash flaw analysis before prioritizing the other programs. Discussion on the motion: Councilman Luna asked how much staff time this would take. Brad Whitty explained that Transit Development Act (TDA) funds, gas taxes and developer fees will take several weeks of dedicated time. Some projects, he added, are funded by more than one fund. He reported that the task is already underway and is part of the Finance Department work program. Motion withdrawn: The motion maker and second witlhdrew the motion because preparing a cash flow analysis is already a priority with the Finance Director. Staff was directed to execute the contract with the EIR consultants for the "Dove Creek" (Hendrix)property. [4:1, Luna opposing]. C. INDIVIDUAL DETERMINATION: 1. City Manager And Takata reported that he had attended an OCIP meeting the previous da in Y P 9 p Y southern California. At 10.32 p.m., the Mayor adjourned to Closed Session. D. CLOSED SESSION: 1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Closed Session was adjourned at 10:40 p.m. The City Attorney announced that the City Council discussed the possibility of joining in the litigation entitled, Chicago Grade Landfill, Inc., Walter and Patricia Johnson v. City of El Paso De Robles, City Council of the City of E/ Paso de Robles and Wil-Mar Disposal Comaan4 Inc. and decided unanimously not to participate in the litigation. THE NEXT MEETING OF THE ATASCADERO CITY COUNCIL WILL BE TUESDAY, JANUARY 10, 1995 AT 7:00 P.M. CC 12/29/94 Page 7 MINUTES RECORDED D PREPARED BY: LEE PRICE, City Nerk Attachments: Exhibit A (Korba) Exhibit B (O'Keefe) Exhibit C (McNeil) Exhibit E (Barthels) Exhibit E (Moss) Exhibit F (Garcia) CC 12/29/94 Page 8 Decener�f?lgV 4 CC 12/29/94 EEXHIBIT "A" EXHIBIT "A" Honorable Mayor, Members of the City Coun/7, and Residents of Atascadera. The purpose of this writing rs to inform the public of the /66wing data obtained from the office of the City Treasures Although, fm the Treasurer's husbare! I've spent the last two fiscal years as chairman of the Audit Coam nee with the San Luis Obispo County Grand Jury during which tare, the committee was able to review and study public financial records of the County and its constituent districts and nwmcipaft—% Included in this report are the following.. • A chrorbcle of events and the basis for actions from her election in 190 to the present. • A rebuttal to statements made to the Cou007 by Mr. Hk,Ihlaod who never visited the Treasurer's office, or talked to her about the City's finances at any tkne. • A table extrapolated from Treasurer's reports showing a total of interests earnings to be $1.94 million dollars, which included the Orme County Investment Pool(OCIP) since she came aboard. CHRONOLOGY • Prior to July 1990 -Aknost $2 million was invested in Federal Home Loan Bank fResoludw Trust Corporationl. • Last Investment Policy issued in August 1987 A violation of Goven meet Code 53646 requiring an amwal adoption by the City Counck • No interest on checking account with monthly cash flowing between $200,000 - $300,000 • Treasurer was appointed. • Elected Treasurer - July 1990 and rwkcted in July, 1994 • Safety . Checked with consultants on status of investments and found that aknost $2 million brokered through Dean Witter to a bank in Dallas, Texas was conv*reol high risk. Accent was closed in August 1990 and money transferred to Local Agency Invests a 0t Fund 011-7 • Prudence - Bids requested by Treasurer to obtain interest on checking &ftount. Mid-State Bank offer accepted. • Investment - Consultants and government agencies were contacted to determine another investment house other than LAIF since the doing of the Dean Witter account with the Federal Horne Loan Bank IfHLBI. The OCIP had a long history of good earnings, had a safety rating with 90% of investments rated AAA and 10% rated AA. • U4' - Was more constrained than L41F. Withdrawals required 48-hour notification as opposed to uidtY wire transfers and there was a Imut of two withdrawals per month. These are concerns for cash- flow since the Treasurer is required to provide mazm n capabdty for tke City to pay bills in its daily operations. Thus, the Finance Director had this capabilty with thesuse of two, not one, major funds. There were many municipal treasurers who would have liked to gain entry to the OCIP. (Page 2of51 However, if one's County had its own pool, t1m entry was denied. For Atascadero to enter, the San Luis Obispo (St01 County Auditor/Controlhr had to sub-nit a statement to the effect that SLD County had no investment pool. After Atascadero was accepted, the door was closed and a waiting list established for others, outside of Orange County, to enter the OCIP. Why investment pools? Small cities or entitles do not have the resowaes to pay staff to hendk mvestments on a daily basis. The State, Counties and large cities do have in-house investment personnel. • Investment Policy - This required consk�mbk research. The California Municipal Treasurer's Handbook and the National Municipal Treasurors Association sample Investment Policy as well as carries of many other city investment policies were obtained via phone and mail requests and studied for application to Atascadero. Based on the risky investment through Dean Witter, investments thereof were"ad to 10%. The balance to be applied to LAIF and OCIP. The Treasurer attended many seminars and works*s and consulted with other Treasurers, Finance Officers, mvesbre?nt brokers, advisors, etc., statewide. As late as lest April, she attended the are►eval Treasurers Conference and met with both LAIF and OCIP porsoreml, spoke with city personnel that have full staffs like Mountain View, which has $47 arm. in the OCIP. The OCIP was not considered a risk by the numerous conn!tants she contacted both in person and by phone as late as two weeks before the special mcethV of December 1, 1994 In 1991, the Gover wwt Code was chanr, d alleviating the requirement for an annual pokcy statament. However, the Treasurer has continued to issue an annual policy to protect the City from irWrudent decision • Accountability- From out of the blue a $99,000 Certificate of Deposit (CD1 showed up. Discovery was then necessary for the Treasurer to have more oversight of funds the City owned but were not accounted for: In the process, she was derad computer access, she was not a signer on the checking account, nor was she listed on the LAIF account. At the sane time, checks were being signed using the mayor's signature storm and the Finance Director's lire signature. The Treasurer, in essence, had no oversight but had the raWa n(hility. 1t wasn't until 1993, after a public report she issued that the accountability began turner around. Remember, the Finance Director had the flexibility to use either fumed for making deposits and paying bills Auroral audits of the City include knowkdge by the auditors of where the City has investments The Bank of America, who handled the TRANS accounts, knew funds were m the OCIP. The buyer of the notes, a bank, knew funds of the City were in the OCIP. • Tax Revenue Antgmtm Notes (TRANS! - Rewim emanatuul from tax colketions were not syndrronized with the City's needs Without any reserve in the General Furs, money would have to be borrowed hon other funds or a loan made at additional cost As an alte ove, the Treasurer recommended the application for TRANS whkh is essentially a short-term loan. It provides an opportunity for gain if you garner more interest than the total cost of borrowing. On a presentation to the Coincnl in October 1992, the Finance Dvector clakned it would take six months to obtain such a TRANS and could not be done before reit Spiro The Treasurer made the necessary contacts and got approval in three weeks A requirement of the lending agency is the submittal of cash-flow statements The Finance Director had never before issued to the Council any such statements which aro a necessary adjunct to rmnezel planning. A second TRANS was obtained the fo6win year and a third TRANS, based on possnbk lower interest rate chanes, was reluctantly agreed to at a Finance Committee meeting. • Responsibility - The Treasurer has never demod mWonsibl ty for the investment of the City's funds She has applied the basic principles of Safety, Liquidity, and Veld(SLY). She exercised prudence in i attempting to maximize yield, and allow for ulama/flexibility, with the use of more than one fund The decline of investment funds, as we/as the Finance Director's discretion in the use of such funds had resulted in the e'nbalance of ilgormsits currently in existence. /Page 3 of 5) • Orange County, what now? - Results of the deback are to be determined. !t`s 4onceivab/e that Orange County may have to pay all the mostors The Treasurer was aware that there'was a leveraging of funds but not to the extent of using $7.5 billion as collateral for an additional $12.5 bY/- Tliat data was not available to anyone. Treasons, throughout the State, are now being examined�risky strategies with public funds /REBUTTAL Damaging statements subrrdtted to the press by Mr. Highland who never visited the CityTreasurer to obtain data. There's some question as to whether he ever read the Treasurer's reports which clearly delineated the money invested in both the Orange County and the Calufonia State funds • Investment Polky - Mr. Highknd stated he had no mvesownt expertise, repeat, he had no investmeat expertise. Yet, had he seen the current policy upon takrinp office, he would have expressed strong objections to parts of it and demanded revision. Tlds represents an ex post facto thought of what one might do. Aside from the fact that inuch research and consultation was spent k devakpiV the policy, it was reviewed by the finance Director, the Assistant finance Director and the City Attorney. It was also approved at different times by an Economics professor, a lawyer, the fonner mayor who is a relatively successful investor and the entire City'Candle • Mark Joseph Memo - Mr. Highland castigated the City Manager for not bringing a novo to the attention of the previaus Comc#wherein a high percentage of City funs is in a single investment fund. The point was made "the higher the interest, the higher the risk." first, differences in interest rates, per sa, do not govern safety. Shop around from one ban to another and more • earnings may be damned from one institution without any difference in pjrotection. Secondly, max ► operational flexrbulity is required for the use of money in the payment of bills Transfer of funds for dady operations is the responsibility of the finance Director • Orange County Investments - Mr. Highland makes mention of reverse repurchase agreements which is done in arfferent degrees by cites, counties and states throughout theses United States. He did not include other strategies such as the use of inverse floaters and deavelim • Negligence - He must have been clairvoyant when he owlied that interest earned, not safety, seems to be her bottom line and thence opined that she was negligent. The pmkOles of Safety, Liquidity and nw, PnA*wm, and Operational FAwbaty were applied in her perfoilmance as Treasurer Had he sag& any information from her office, instead of shooting from the IMP, he may have learned differeritll! • Paper Loss -A memo to the Council covering an Orange County private meeting of pool participants which she attended on December 1, 1994 reflects status made by Orange Carty staff menb rs Mr. Highland made a mockery of that when he reminded hear that a dollar bill is only paper brut a nvllion of them goes a log way towards paying City's bills'' Those notes were suhWned to the kcal press by a person yet to be identified! • Utility Tax - At the last Finance Committee meeting, it was 1, not the O ty Treasurer, who suggested that the Councd coir this alternative for revenue enhancernent. I've I spoken before this Council several tam suggesting tks, independent of the Orange County drlemm8. Mr. Johnson summarized it briefly in stag that something had to be done, whether it be a tax Or other measures, to enhance revenues andlar reduce expenses Page 4 of 5J • Zet Them Eat Cake' - Represents a demeaning statement Mr. Highland made and attributed it to the Treasurer. His review of requiranents for ekction as City Treasurer is no different than for City Council- the candidate shall be a registered voter and be breathing. • • Resporasrbrlrty -Finally, neither the Council nor the Treasurer have denied any responsibility with respect to the investment of City funds Also, the Treasurer has not made unilateral decisions However, it is the responsibility of the Cama#to assure that the City is a going concern. Tlie Treasurer does not authorize expenditures and she has alerted this Council, as well as previous Councils, regarding an excess of expenses vs revenues In my opinion, Mr. Highland has provided this C&y with a great disservice and l suggest that this Council censure him for the defamation of character which he has perpetrated on the City Treasurer. TABLE OF EARNINGS The table shown on page 5 shows balances, earnings and interest rates from 1990 through the fiscal year ending in June 1994 Balance shown for fiscal 1994 includes a loan payment for the TRAMS made in early July 19.94 Fund balances declined approxanately $26 million between 1990 and 1994. Earnings of$1.94 million contain $1.35 million from the OCIP. Assuming interest rates generated by LIF and applied to OC/P, the earnings would have been !educed by $578,000. Composition of the City's funds in the OCIP contain mostly Wastewater funds Details of the contents will be presented subsequent to discussion with the Finance Director who has just returned from vacation. Respectfully, 4 f Korb 10905 Santa Ana Road Atescadero, CA 93422 [Pop 5 of 5) TABLE OF EARNINGS THROUGH FISCAL (1993-1994) 1989 t 19901981 t�t•t992 1992.1993 IOM1094 ACCOUNT BALANCE INTEREST BALANCE INTEREST BALANCE INTEREST BALANCE INTEREST BALANCE INTEREST 'FICO' $1,827,445 8125.052 LAIF - $8.101,000 $1R13A00 $406.3'17 $706,707 $15,707 $214274 $12,507 $8,889 $1,986 ORANGE COUNTY $9,000A00 $0 $4.851,548 $300,414 $5,677,310 $408.082 0,300,000 $570,681 MID-STATE $10,158 $9,818 $8,774 $5,121 BALANCE $7.928,445 $7,413,000 $508.255 $5,001.584 $5,308.875 INTERESTIYR $541,538 $381,840 $429,403 $577,788 DELTA INTERESTIYR $181,833 $186,783 $208'305 INTEREST TOTAL (1990-1994) $1,940,669 EARNINGS DO NOT INCLUDE USE OF CDS AND OTHER SUCH INSTRUMENTS DELTA INTEREST TOTAL (1990-1994) $578,021 DIFFERENCE IN EARNINGS BASED ON LAIF RATES VS. OCIP RATES MID-STATE INTEREST TOTAL (1991.1994) $33,873 NO INTEREST EARNED PRIOR TO 1990 INTEREST RATES 1988.1990 1990.1991 1001.1992 1992.1993 1993.1994 RATE(%) RATE(S) RATE(%) RATE(%) RATE(%1 'FICO' 8.35 8.35 LAIF 8.54 7.37 5.32 4.55 4.62 ORANGE COUNTY 0 6.54 9.07 7.84 7.46 MID-STATE 0 5.05 3.5 204 205 • DELTA INTEREST DOES NOT INCLUDE LOSS OF EARNINGS IF TRANS FUNDS WERE NOT USED • $1.9 MILLION TRANSFERRED FROM FHLB TO LAIF VIA MID-STATE IN AUGUST 1990 • TRANSFER OF FUNDS FROM LAIF TO ORANGE COUNTY ON MAY 22, 1991. INVESTMENT INITWO MAJOR POOLS • SIGNIFICANT DECLINE IN INVESTMENT FROM FISCAL 1991 TO 1992 • TRANS FUNDS INCLUDED IN FISCAL 1993. PAYMENT OF $2.07 MILLION TRANS NOTE OCCURRED IN JULY 1994 • TRANS FUNDS INCLUDED IN FISCAL 1994. MOST OF ACCOUNT IN OCIP CONSISTS OF ATASCADERO'S WASTEWATER FUND 0 DATA IS EXTRAPOLATED FROM TREASURER'S REPORTS. DOES NOT INCLUDE OTHER INVESTMENTS SUCH AS COP'S AND CO'S CC 12/29/94 EXHIBIT "B" Page 1 Rol Cnmments on Aygnan Aen C MA ,_ very _, .rt I._t_. I t i7em x'1'1 which ._ make aoma,±&F because au in �. I . .. _ l collection 4�rtapples and _'e'`} ! Waves }_ '�i l. � under the a,. . O-: Purr,se. Some _t these 1, :_11 r-+,_+m__ I which 1 ti..{.i'l i W__fTt e Y call projecis have _, doUnits nit _ourcs of r-venue and that revenue is to be used for th%7 collected. :11iG ILII ,,, _,_ -. ta,._._ _1:_,i as zhe waste.. . tm:-r"r tund. Otnef r H to road ,... jecw ancF have Partial state funding. Dov-- t � - _ _ the M .._,. _, ..._ _i:.•l' .VIII a_•. - _'i}IIII..',u we have le,n ._ . _1n! ,I- from i.,S tI�-- iolvent Tundo to over expenses for Joss project: that haven 't beer 1"nerating zuttioOnt Acome such az _, 1 io l .. in n{L,;-t'"..; in ,_t 1 I : MO.t .. 1 .. is mDnev That _,nv.. i.' on the sewer 5notom � aS;,t{.. i ' t`Tnovoranticinate, repairs _ _, upgrades. I . , should be ai_.rl" ti., vn...,ustthat their Public officialswI i , not -ran+ that . money for special interests. is this where You plan to get money to Pa'v for the Cove Volk 710 lundo which arc Vero for coo purpose and one purnoi- oniv and that to nd4gats • 1 Aun I{. '. ._.. to to EntaWshed when 1 .,,,= funds , _ spent i.. l I,, ,. n, �us, 7 .. t 1 ! { the ..,. ., .T Ot CC 12/29/94 EXHIBIT "B" Page 2 • is "l� V CC 12/29/94 EXHIBIT "C" Page 1 20 Atascadero City COancil • From Dorothy F. McNeil )ubject : LIR for the riendrix property Mr. Mayor and Councilmembers : During November and December I shopped in Atascadero for birth- day and Christmas gifts . As I went from the Factory Outlet to the K Mart area I was aware of the many vacancies. 4hen I went to Bank of America to renew my funds, the empty Riley' s complex confronted. me%e trip to the Luckey' s area, now called Ataseadero Oaks, and to Baekers in the Hawkins Plaza I observed more empty shores, particularly in the Lucky' s center where at one time most sT,,aces were filled. he r'almer-Koert re-ort tells us these vacancies amount to 16W of our commercial space and that we should not add any more until this figure has been much reduced. T1.1 report also told us that we need a department store such as a I1,lervyns or a Target . I'm sure we could use a Mervyns, something between a K I', art and Ra-1-oh Lauren. .Falmer-Koert also advised us to put the department store near the Factor;; Outlet so peo~>le could do comparative sho--ping. "he Hendrix property does not fit this need. V4e taxpayers have paid about ` 301000 to benefit from the advice of experts who have given us the benefit of their experience to help us plan for now and the future. At the last meeting Council voted to throw away the i-30,000 advice and it had the audacity to ask us taxpayers to spend ; 40,000 more to enhance the land value for a developer. :=ere are a few of the straws that break the camel ' s back: 1 . There is no project for the Hendrix property. I ask Council and the news media to refrain from calling the 62 acres "Dove Greek. " It doesn't exist . There is no project--period'.Call it the Hendrix property or the "something for nothing property" or the"free-rezoning-for-no-project n_ roperty. " These are more truly descriptive . 2. There has been a lot of irresponsible talk by council , citizens and newspapers about a department store for this land. It ' s gossip. Untruths should not be repeated. CC 12/29/94 EXHIBIT "C" Paye 2 Z . I 'm sick of having the public fed a diet of fart=asy, mirage , pipe dreams and illusions. Theme Parks, open-air year-round country music, overlighted, noise polluting amphitheaters, trams traversing El Camino from north to south ''to carry bus- loads of tourists from L.A. and S.F. A movie industry in the north end of town. And now more commercial sx)acMe to house the fantasies of Fr. Cardin. Citizens are outraged at the prospect of spending our money simply to enhance the land value for one or a few. And we are not forgetting the enormity of the original Cardin proposal. Nor are we forgetting the fact that these proposals were never mentioned to the voting public by Cardin when he ran for office. Almost as soon as he took his council seat , he produced his upturned hat and started pulling out rabbits. ��ith the Grange County debacle leaving us in the category of destitute , we need magic of another kind--the magic'' of sober responsibility to solve our fiscal problems. Dorot .y - , McNeil 8765 3iprra Vista Rd''.. Atascaaero, CA 465-4128 CC 12/29/94 EXHIBIT "D" There have been many letters to the editor and a considerable amount of discussion concerning the council's decision to fund the EIR for the 62 acre Hendrix property at the south end of town. The recent Orange County Investment Pool debacle has seriously altered the financial situation within this city and the council should now seriously reconsider that decision to demonstrate their fiscal responsibility. Although Mr. Carden viewed this decision as part of a long term solution to the growing financial problems of this city, the need to address short term considerations cannot be overlooked. Recently, each department has had to minimize spending and tighten budgets to help the city during this fiscal crisis. In turn, the city council should also carefully monitor their expenditure of city funds to ensure the protection of vital services such as police, fire and sewer. The city at this or any time should not invest the city's funds in a speculative rezoning project. The city council must also keep in mind that funding the EIR for the Hendrix property is setting a dangerous precedent that could come back to haunt them when other developers expect similar treatment for their projects. Provided the council fails to reverse their decision and still insists on allocating city funds for the EIR, they should do so with the stipulation that one very important condition must be agreed to by Mr. Hendrix in case the proposed "Dove Creek" project does not materialize. If the 62 acre parcel is actually sold at any time after the EIR is completed and the zoning is changed, Mr. Hendrix must reimburse the city for the cost of the EIR and all staff time associated with this project along with any other improvements to the site paid for by the city (such as the extension of the urban services line). Conditions such as these will hopefully dissuade developers from designing "pseudo" projects whose sole purpose is to effect a zoning change for their property to increase its value. Donna Moss resident of Atascadero since 1979 CC 12/29/94 EXHIBIT "E" Dec. 26, 1"4 To the Atascadero City Council: I have requested that this statement be read at the December 29 meeting of the Council because I am unable to voice my cans in person. I include myself among those who form a likely majority of taxpayers in this city who are angry and adamantly oppose the Council's wishes to spend our tax money to financially aid those engaged in development of private property, namely, the Dove Creels property. A request has been made of the city to fund the EIR for private development. I see no good rationale for the city to once again give away funds that should be used for city services, police, fire, and other emergency personnel and programs. A developer should fund his or her own EIR as others are required to do. In addition, it has been recognized that rezoning of this property to commercial retail would be entirely inappropriate, given the plethora of vacant commercial retail space that has existed in Atascadero for some time, now. I ate the recent econoinic study that rested the City has an adequate inventory of commercially-zoned property that should be utilized rather than creating additional vacant space. I am certain that many here tonight will express similar outrage over how our taxes are being used. Sincerely, r ' a K.M. Barthels Atascadero homeowner, voter and taxpayer 1161 —�a CC 12/29/94 EXHIBIT "F" December 29, 1994 To Members of the City Council Atascadero CA 93422 Dear Members: Please don't use any more of the money we don't seem to have to help fund business projects in our city. There are more important things to be done but since we haven't the money for them either it's time to sit tight and not spend. Dr E. arcia Elnora S. Garcia 1700 San Ramon Rd/ Atascadero CA 93422 466-5002 REPORT TO CITY COUNCIL CITY OF ATASCADERO Agenda Ite� A-3 3 Through: Micki Korba, City Treasurer Meeting Date: 1/24/95 From: Brad Whitty, Finance Director i i { SUBJECT: Treasurer' s Report - December, 1994 RECOMMENDATION: Council review and accept. j Attachment: Treasurer's Report, December, 1994 1 i i I i j i { 1 { { j I j 1 i I i i j yI 1 J{ 1 i 1 i { 1 1 I { a CITY OF ATASCADERO TREASURER'S REPORT FOR THE MONTH OF DECEMBER (Unaudited) GENERAL FISCAL ACCOUNT INVESTMENTS AGENT TOTAL BEGIN. TREASURER'S $229, 189 $5,089,691 $601,993 $5,920,873 BALANCE RECEIPTS 2,231,195 -0- -0- 2,231,195 DISBURSEMENTS < 890,381> -0- <21,064>< 911,445> TRANSFERS IN -0- 1, 142,000 -0- 1, 142,000 TRANSFERS OUT <1,142,000> -0- -0- <1,142,000> OTHER -0- -0- -0 -0- BALANCE $428,003 $6,231,690 $580,929 $7,240,623 DEPOSITS IN 13,780 TRANSIT CHECKS OUTSTANDING <286,730> ADJUSTMENTS -0- ADJUSTED TREASURER'S BALANCE $6,967,673 CITY OF ATASCADERO cp MUR EL C. KORBA City Treasurer a:treas-rpt #40 ALL FUNDS - GENERAL ACCOUNTIINVESTMENTS RESERVED UNRESERVED CASH ( 1) CAS5 (2) FUNDS General Fund Pooled Cash $ $1,034',„546 (3) 4ws Tax Fund Pooled Cash 76, 824 velopment Fee Pooled Cash 82 Donations Pooled Cash 7, 896 A.D. #4 - Reserve Pooled Cash 50,497 Zoo Enterprise Pooled Cash < 28,',,719> Payroll Trust Pooled Cash 6,516 92 St.A.D. Reserve 45 TRAN Repayment Pooled Cash 1, 164 93 STBG-688 Pool Cash 7, 127 93 EDBG-268 Pool Cash <361> Dial-A-Ride Pooled Cash <2T1227> WasteWater Fund Pooled Cash 1,884,435 Lake Park Pavil. Pooled Cash < 12768> Aquatics Pooled Cash < 20,591> Recreation Pooled Cash < 81,384> Tree Plant Fund Pooled Cash 371321 Tree Assn Fund Pooled Cash 1,428 Sidewalk Trust Pooled Cash 50';,477 Emergency Services Pooled Cash 131,309 Police Training Pooled Cash < 11a,388> Weed Abatement Pooled Cash 28;,239 A.D. #3Redemptn. Pooled Cash 1,768 A.D. #4 Redemptn. Pooled Cash 41,942 A.D. #5 Redemptn. Pooled Cash 2,683 Camino Real Redm Pooled Cash <4,374> 92 Street A.D. Redemptn Pooled Cash 48,842 9+ COP Debt Svc Pooled Cash < 60,291> apital Project Pooled Cash < 175,803> ' 89 COP Const. Pooled Cash -0- Pol. Dev. Fees Pooled Cash 7,893 Fire Dev. Fees Pooled Cash 67x, 168 P&R Dev. Fees Pooled Cash 441, 140 Drain. Dev. Fees Pooled Cash 3961746 Amapoa-Tec. Fee Pooled Cash 237;,711 Public Works Pooled Cash 41,570 St. Main. Dist. Pooled Cash 471571 TDA Non-Transit Pooled Cash 118,311 Sewer Facilities Capital 1,915,904 Camino Real Const. Pooled Cash 324;227 Las Encinas Const. Pooled Cash 153,649 3F Meadows Const. Pooled Cash 110, 820 Santa Rosa A.D. #7 Pooled Cash 48,799 TOTAL ALL FUNDS 131,030 $6,255,706 CASH WITH FISCAL AGENT Camino Real Resr Cash $ 203,907 92 St. A.D. Resv Cash 45,691 Wastewater Fund Cash 47,269 Camino Real Redm. Cash 81,543 92 St. A.D. Redm. Cash 44 COP Debt Svc. Cash 202,475 TOTAL WITH FISCAL AGENT $ 580,929 TOTAL RESTRICTED AND UNRESTRICTED CASH $6,967,673 INVESTMENTS TIME DEPOSITS CERTIFICATES OF DEPOSIT, SAVINGS, AND LOCAL AGENCY INVESTMENT FUND 12/31/94 INTEREST TIME DEPOSITS: AMOUNT RECEIVED (4 ) Orange County Investment Pool/TRAN $ 54,354(6) $ 29,354 Orange County Investment Pool 5,028,287(6) 115,021 Local Agency Investment Fund 1, 149,049 163 TOTAL TIME DEPOSITS $6,231,690 144,538 Mid-State Interest Received 3,395 TOTAL INTEREST RECEIVED $147,933(5) Notes: ( 1) Reserved Fund Cash is specified for City debt service. (2) Unreserved Fund cash can be used for normal operations of the City. (3) The City must repay the $1,300,000. Tax Revenue Anticipation Note (IRAN) from this fund including $59,634 interest at 4.60% per annum by July, 1995. (4 ) December, 1994 interest yields were as follows: Orange County Not available LAIF 5`.53% Mid-State 1.31% (5) This is actual amount deposited to City accounts through December 31, 1994 and does not reflect interest amounts accrued but not received. Also not included above are interest amounts earned in Fiscal Agent or County accounts, which are used for bond retirement purposes. (6 ) On December 6th, Orange County filed a Chapter 9 bankruptcy with the courts. The City is unable to utilize any of the $5,082,641 held in Orange County at the present time. However, it is anticipated that a portion of the funds will become available for release in the current fiscal year. I 1 1 1 REPORT TO CITY COUNCIL Agenda Item: A-4 CITY OF ATASCADERO Meeting Dae: 1-24-95 j Through: Andy Takata, City Manager j From: Brad Whitty, Finance DireDt3rt� SUBJECT: i Annual Claim for Local Transportation Funds: ]'994-95. i, RECOMMENDATION: Adopt attached Resolution No. 04-95, authorizing the filing of a claim for Local Transportation Funds. ll{ BACKGROUND/DISCUSSION: The City annually files a claim for its share of Local Transportation Funds. Our efforts are coordinated through the SLO Council of Governments (SLOCOG) . Funds are used to cover local transit needs (i.e. , Dial-A-Ride) ; two percent is earmarked for Bike/Pedestrian Bikeways; a portion is reserve by SLOCOG for regional transportation programs and administratio , any remaining balance may be used for streets and road . Encl: Resolution No 04-95 a i 1 l i l i { i i i' I I i RESOLUTION NO. 04-95 A RESOLUTION OF THE COUNCIL OF THE CITY OF ATASCADERO AUTHORIZING THE FILING OF A CLAIM FOR LOCAL TRANSPORTATION FUNDS AND STATE TRANSIT ASSISTANCE FUNDS IN COMPLIANCE WITH THE TRANSPORTATION DEVELOPMENT ACT WHEREAS, Articles 4 and 8 of Chapter 4 of the Public Utilities Code requires claims for operating funds to be filed with the transportation planning agency by local transportation operators; and WHEREAS, the City of Atascadero is eligible for transportation funds as provided in Chapter 4 of the Public Utilities Code; and NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Atascadero does hereby authorize the filing of a claim for Local Transportation Funds in the amount of $464,713 and State Transit Assistance funds in the amount of $27,950. If additional LTF funds become available said funds shall be used for the purpose of street maintenance. The Annual Project and Financial Plan prepared by SLOCOG is attached hereto marked Exhibit A and by reference thereof made a part hereof. On motion by Councilmember and seconded by Councilmember the foregoing resolution is hereby adopted in its entirety on the following vote: AYES: NOES: ABSENT: DATE: ATTEST: LEE RABOIN, City Clerk R. DAVID BEWLEY, Mayor APPROVED AS TO FORM: ARTHER MONTANDON City Attorney i CITY OF ATASCADERO TRANSPORTATION DEVELOPMENT ACT FY 1994/95 Item 3. ANNUAL pRdJECT AND FINANCIAL PLA Briefly describe all proposed projects(title and descriptions) the proposed use of these funds(by Article and Section of the Transportation Development Act) and the proposed expenditures for the ensuing year for all TDA funds including local transportation funds (previously SB 325) and State Transit Assistance Funds. Project Title/Brief Description Purpose/PUC Article & § Amount 1- Dike/pedestrian ways projects Article 3, PUC § 99234 and bicycle safety education LTF 9'294 2. Atascadero DAR - a local general Article 4, PUC § 308 244 purpose demand responsive system 99260 (a) LTF $308,244 - 3. Atascadero DAR - a local general Article 6.5, PUC § 99314 purpose demand responsive system STA Op. Revenues 940 with STA Operator Revenues 4. Atascadero DAR - a local general Article ,6;5 PUC § 99313 $ 27,010 purpose demand responsive system STA Allocation with STA Allocation 5. SLORTA - Jurisdictional share Article 4, PUG $ 130,976 of regional fixed route system § 99260 (a) LTF and demand responsive system operated by Joint Powers Agreement 6. street and Road Program - for Article 8, PUC 99400(a) $ 16 misc. street 199 LTF 199 construction, reconstruction, and maintenance projects. 1) Total Claim for LTF funds $ 464,713 2) Total Claim for STA funds $ 27,950 TOTAL TDA CLAIM AMOUNT $ 492,663 • JAN 30 '95 02;56PM P.13/32 WHY IS SAN LUIS PROPOSING THIS PROTE-9V • They ars proposing the project in order to obtain additional storage capacity in the reservoir. By adding the spillway gates they estimate that the storage capacity will increase by 17,0100 acre feet. The annual safe yield will increase ,by 1650 acre feet. WHAT ARE THE DAM OWNERSHIP ISSUE The _ 4rmy corps of Engineers wants to divest itself of ownership of the dam. While the Corps is the "owner" the dam is operated by the County via the County Water Conservation District.': Many years ago, North County communities_ fought with the city of San Luis to keep Ownership of toe dam in the hands of the Corps. it appears th4it some other arrangement will have to be reached in the near future if the Corps is successful. In the past, it was thought by North County citizens that the Corps could be "gusted" more than the city of San Luis. Much of; this line of thinking was brought on by early "water rights" (19401s) disagreements with the City of San Luis by "taking" water that originates in a North County watershed. The Salinas Dam captures water from 'ithe headwater area of the Salinas River which flows;, north through Atascadero, Templeton, pass Robles arjd onto Salinas and Monterey Say. (The City of san Wis filed with the State for the water rights to '4this dam area shortly after the Corps no longer needed the water supply for wartime emergency and prior to any North county entities filing.) There were disagreements and laws4its for many years over water entitlement. Many of these "crater rights" disagreements still linger to this day. North County residents along the Salinas River live with the "compromise" water rights agreement called the "live stream Concept". The "live stream" agreement means that NO runoff can be stored behind the dam UNTIL there exists a "live stream" from the dam to the confluence of the Salinas ,and Nacimiento Rivers. Jamiary 30, 9995 • JAN 30 '95 02:56PM P.14/32 The County checks the river flow each year and determines when the "live stream" exits and water can be stored in the reservoir. This is an extremely important agreement for the ,North County residents to continue to recharge the aquifers of the Salinas River and the Paso Robley Groundwater Basin. The communities of Atascadero, Templeton and Paso Robles have a river water l': entitlement, which need to be protected. Based on the information received from the County, negotiations are currently underway', between the City--.of San Luis Obispo, Army Corps ',of Engineers and the County regarding the ownership of the dam in the future. options that could be considered are: 1. petition the Army Corp to continue ownership of the facility. 2. Have the County Conservation District, which operates the dam now, take over ownership of the dam. 3. Have the City of San Luis take over ownership, with operations by the County Conservation District. 4. Have the City of San Luis take over ownership and operation of the dam. 5. Have a Joint Powers Authority take over the ownership and operation of the dam. HOW WILL THIS IMPACT THE NORTH COUN=? The North County's water rights under the "live stream concept" will be protected and will not be changed by the SLO proposal. There will be no proposed change to the current practice of releasing water into the Salinas River for downstream users. However there are concerns regarding the additional stgrave of water that may be needed by downstream users. Mitigation measures have not yet been proposed by the city of SLO for this impact. The concern of north county residents steins from the fact that water which would have gone into the Salinas river will now be stored for use by San Luis Obispo. Some alternatives which could be discussed with SLO are: dxuary 30, 1995 JHN de 'tO ec;�O N P.15/32 • 1. Entar into an agreement with SIO that requires that no water be stored above the existing level during times of draught. 2. Enter into an agreement with SLO which requires periodic releases from the dam based on percentage of rainfall in the North County. For example, if the north county has received only 50% normal rainfall by January 311, then SLO must release S0% of the water stored after _,:the "live stream" was established to replenish the Salinas river. 3. Take a more aggressive posture and attempt to secure a modification of either the water rights, the ownership of the : dam or the operation of the dam by the North county. Many other alternatives could be developed, but the Idea would be the agreement to release some portion of the stored water during times of less than normal rainfall.. options: 1. Establish a committee to further formulate a position paper on these issues and report back to the full Council. 2 . Receive and file. 3. Amend, modify or reject the above options. Attachment: Gam Expansion informs d on X;\lb\ccsgenda\waterlsiodam.mem January 30, 1995 gni, QYJ JJ e.i"-.rrrri t'.lb/bC • The Salinas Reservoir Expansion Ptro3ect would expand the msgrvoir capacity by irisialling a spillway gats tit the crest of the spillway:ipisitlg the dam's elevat Oq from 1,301.1jet tQ'l;'320 ' feetti':'This was considered at the time of cotistruction but cvncerns•i�egarding geolo8ia and= t .` 'faulting conditions;as well ps thc impact on the .., �_ .<__� consttuctiton schedule,eliml�naied the si�lway , ''; ' '''" ' gate. �Gonstruction of thc spi�iway jgee will raise '. the possible water surface-elevatlortjt y 20 feet and is estimated to iricirase the stotage'papacity . . . of tiro reservoir from?.3,300 acie fbeet tb•40;040 . ' als acne feet.The safe'anniial yield%hill o be, . A.,+" ;inoreasdd by abouf 1,650 acre feetprfr year:The. ., , b' o has 45,4010 acre' ' s Tit+. �"�;+ �,• City of San Luis Q isp . ' •3 :� 3'1;� t' Water storage rights at the reservoir.'' no pwrra=a operates Sauffm periods of water shottMc now faced rccbXF of the dolwnstram users' Dame'• by the City. gmuodwaterbesm before water is stored in the msemir._ the Army Corps of Engineers has . YY d Laues need fardurstadpp owned the Dam and much of the Is this project pail ofthe Cirty's. smrotmding prop"since 1942. wmnoenvkorcentaltx long mage wat+er?supplyProfactsP Reservoir operations are managed by -regulatory issues identified during the ft County Flood Control and Water initial study that would pc+edude the 'Yes,thus projrct is needed to meet Covation District The City pays rpyoirexpmL§'m'IheQfyvM water needs as projected in the operating costs and bas water rights fmdwstudy ioa d mil the eras of adopted tieneral flan,tegardless of to reservoir yield. Owpership and ettpaa4on on waterresau=inducting other long range Pwiects such as • opwiftom would t+e mmn unebanged water q„dy and downstream users; State Water PR WA or Naaimiento ` withal tbO temtvOk diversion. by the project. bi ca1 resouroes , and downstia�aatnnal moumms; It the reservoir project feasrbN? land rue and r Onali%m;and VhQ'V;; pay for'the project? posble growth inducmentdoe to Smdics completed in 1988 f_ouud the, t=e watrcr Mme' Development iMpact fees and water .prgJect to be technically, races will fund tete project. environmentally,and eaommically Wig tks pmjed fi ect Bra"live skvm" Prellmiisry stuOlm estimate the practical. While there arc issues to corrcTO cost at$6.5=don--this translates be resolved,the studies showed that , ' to$354 per am foot--WJsich is Ur.dam is strong enough try hold thc Nq rite"live stream"concept was comparable to other potential now additional wXff t3'ant a deeper estabadW to pomctdowosa cera water water sources. The 91193 %Mcial reservoir, The hydmloglaal review users.Under the oonoeM water cannot Plan includes funding for design indicated that there is enough wader. _be st[Red inthe tt until a visNe' and donstntctio n. Bonds will be in this watembW to justify inc rming pilve sfteW h ttowhg fitun the Salinas sold to pay for Oe project,with the storage capacity. The increased Dam to the eonff=me of the repayment coating from..ft City's capacity would significantly reduce 'Nafti.ento River. This assum full Wear Fund. ; ALfNAS RESERVOIR EXPANSION PROJECT.. - CT ! 0 Std US OIBIS / JAN 30 195 02:5BPM P.17/32 SNI SALTAS.RESWVO1R EXPA SIGH PROJECT .`ca san lank c spa . 7. August 18, 1992 O; All Interested Agencies: SLMJEC r-. Salinas Reservoir Expansion Prosect The Salinas Reservoir Expansion Project is moving ahead. Presently, the City of San • Luis Obispo is proceeding,with the-EnvirOnmental Impact Report. Site baseline surveys for flora and fauna and cultural resources have beers wmple%4. D s $ns on relocatingrecreational facilities are underway. It is necessary o studies and investigations with the Army Corps of gngiaeers because the Reservoir is currently owned by the Corps. The California Department of Water Resources and the County Flood Control and Water Conservation District have also been worlang with the Corps regarding use of the Salinas Tunnel for the State Water Project Coastal Aqueduct. Recent discussions with the Corps bave revealed that they do not desire to retalu ownership of the Reservoir, primarily because it is a water supply resdrvoir for a single non-federal jurisdiction. They are facing the same budget crunch and lack of staff that all government agencies are currently facing and would prefer not spending tinne on the Salinas Expansion and State Water Project Coastal Aqueduct projects. Historically, the Corps has wanted to dispose of the project since the Salinas Reservoir is the only project of this type they own. They are still very interested in relinquishing ownership to a local agency. if you recall during some of our initial public presentations on this project, the issue of local ownersbip was raised. City indicated at the time it was not Jiiterested in pursuing ownership because of the complexities and difficulties it would cause. Unfortunately, becauseof the position of the Corps, it now appears necessary to resolve the ownership issue. Both City and County staff have bad some preliminary discussions in[f'f,this area. These discussions have resulted in agreement to support cotined reaevaticod ough the nave se of the Reservoir and'protection of the downstream water users concept. At this point, there is no consensus on which local agency or group of agencies should obtain local ownership. All parties involved realize that this is a very difficult issue that needs to be resolved benefitting all interested agencies. There are many issues and concerns regarding ownership and we are hopeful a!consensus can be reached. We will be contacting youin the near future to request your participation and perspective regarding this issue. R E C E I VE:p sincerel � AUGUG 191992 " �- a;k 1�R: W aa--::T opF PUBLIC WOWS Clinton Milne, (County Engineer William. T. Hetla!�%�, Di City of San Luis Obispo County of San '',Curs Obispo 955 Morro Street . San Luis Obispo,GA 93401 • 805-781-7215 - Fax 781-7198 N(JRhI 30 j95 •02 59PML'U ^LL WKS U 11LI i 1t5 TQr• tt �l MEETING DATE: .aty of Shc't LUIS O1i1SPO Novembe MMW 1992 � COUNCIL. AGENDAREPORT • MOM: John Mass l?UPAR.BA $Y: GUY W- Htaidesson Acting Utilities N=wr Water ID, * * SUBFCT: Salinas Reservoir Ownership Transfer Alternatives NUV 12 1992 CAO RWON240MATION: DEPT.OF R9W WM Recdtve report from stag concerning the transfer of ownership Alternative& retaW to the Salinas Reservoir and direct staff to prod with the alternative transferring ownership to the County contingent an& mulation of an agracment between the City and County pratecdeg the City's concerns. DISCUSSION., BACKGROUND The Salinas Dam and Reservoir were built in 1941 by the War Department(now the V.S. Army carps of Eatgineers) to supply water to Camp San Luis Obispo and the City of San is Obispo. The.Saunas I'roject is owned by the Army Corps of Engineers (ACOS) and is leased to the County of San Luis Obispo for its operation and maintenance. 'The water from the project is regulated under water rights perndu issued to the Corps and rho City of Sin Luis Obispo. 77'e City is currently the only user of water from the reservoir. 'Dte City is currenfty proposing to expand the capacity of Salinas Rewzyoir in ander to meet curr+Gnt and projected futaue water supP1Y demand in the City. The ACOB has'begirt interested in trazzsfer ing ownership of the facilities to a local a9e016y for many years_ 7%e City and the . County bane not been,able to mutaalty agree which agency should own the, facilities. The ACOS has indicated that the Salinas Reservoir Fxpandon Project can not proceed until ownership is transferred to a local agency. This report outlines the varondy identified ownership hmsfrat allOnsativm- " a Both the City and County of Sart Luis Obispo have cemmns Od issues regarding the ownership of the proPenY and related facilities. Outlined below are the reasons the County and City feet that each respective agency Should have control of the facilitift. , County Issues ■ The Salinas Reservoir is it major recreational facility which the County would like to expand and develop further. This is one of their rnagar recretdonai sites in the north county.. The County is pursuing the acquisition of additional land currently controlled by the Bureau of Land Management(8LbQ to expand recreational Opportunities in the area. ■ The County Flood Control District=mflY operates the reserves and is responsible for decisions regarding the "liva st=eam.' The "live stream" requir¢tnent was estabUShed by the State Water Resources Control Board, Division of WRW Rights and is a legal condition of the City's water permit. The requirement limits ,when the City can storm water in the reservoir and was established to protect down stye m waw rights. Sines the+ County Flood Control District operates the dam,the District decodes when the live stream has occurred and wben to begin staring water ilk the reservoir. The County,as well as the north county agencies, generally feels that the County control of the live st;=rn is "'SAN"80f`95 03= I(JUliLlt w u i lei i is a • '•-..P.19�32 00P city op San Luis OBISPO COUNCIL AGENDA REPORT • Sanas Reaeavou Ownerrshi p Page 2 profxred sine the District will not benefit from the decisions,! made regarding down stream releases. ■ The Cqunty Flood Control District operations at Salinas Reservoir facilities'aovr for an efficient use of staff. Personnel assigned to these facilities are jaggnm to other north t County opesadalk.'During special projects mora employees can bio allocated while during slow times employees can be reassigned to other areas. This results in a cost effective operation. issues ■ The City needs to protect its SLUnas Reservoir water rights. 'b9m are ewmtly two primary sets of water rights on the Salinas Reservoir. The first belongs to the ACOL and the second belongg to the City of San Luis Obispo. The Corps neater right is the senior right because it war filed first. .716 City's right is identical but,'junior since it was filed second. The ACOB's permit Hsts the area of water use as Camp San Luis Obispo and the City of San Luis Obispo. The City's permit shows the City and Cuesta College as the areas of use. Tho City needs to make absolutely certain that Our watrr rights are: not Jeopardized with the tri ter of ownership to a local agency. s The protection of water quality at the rssuvOir is of the utmost,importance. 'Php City's water treatment plant is currently undergoing a 510.8 million upgrade in order to comply with newly mandated water quality regulations. As regulations become more r.*Sent"jn tiro futture,it is important for the City to be able to control the quOlitY of its water aource9tt N ThG County currently operates the facilities to deliver water&CM the M&MYC i:•to the City. The: City pays all the costs associated with the .operations fpr water delivery. 71* operations of the reservoir are a major expense to the City but the City has littler control over the operations and budget. The CMMt practice is based simply on the ability of the each agency's staff to coape.rate. PROPERTY DYSp OSAL PROCEDURE ALTERNATrM Theme am three procedural options available to the ACOS for disposal of the 1Sa nas Reservoir Project hicilitics. A1.1 the options will require studies and surveys as discussed under the Wdoa of "Costs Associated with Ownership Transfer." The alternatives and estimated time frames based on consultation with the ACOS for tramafer are outlined below. Is The: typical method for disposal of the property would be for';tho ACOV, to declass the property surplus and transfer the disposal responsibility to General Sem Administration (GSA). once the property has been transferred to GSA, they would typically to request bids from agencies or groups interested in acquiring rhe property w�tth first offering agencies followed by state agencies, them local.sgencics. This process may require a full N'JAN �0 '95 -03 01PMPUBLIC WKS UTILI i IL13 vK.2 32 • 1 ""AT city of san tuts OBfspO WMI&MCalJNCH. AGENDA REPORT • Salinas p.,gservoir Ownership gage 3 envlronmeatal impact study which the other two.alternatives may not require..Tbo transfer of property through this alternative would require at I" 18 moths. M 'rhe military coulddedere this prOPMY surplus since the faculty'was constructed for P The disposal process could Hien follow the accelerated ply MUMdisposition requi�ments under the Base Closum Act. TbC prot:e urea undear this act may simplify the ownership transfer but could allow Someone other then the City Or County (=Wing private parties)to purchase the property and facilities. The other possibity is that after the military declass this facility surplus, it would be 11 turned ovet to GSA for disposal as outlined in the first alternative abOve. This altermatitro is estimated to take a minimum of 12 to 18 months. ■ "m third option would be to have out local eottgressman, senator, or other congressional representative sponsor special legfislatian which would transfer the properly Oil facilities to a local agency at no cost. This would reduce the time and some of the'Muired work which would be necessary' at the Corps level. This option would also elbninste ti►a posdbMty of an agency or group'other than the City or qty Born resrcivin9 vwnershfp. Staff recontnmends pursuing this course of action as the first j option. This opium is esti &Umd to talcs less than 12 months to complete following PLOW of iegislatiori. COSTS ASSOCIATED WITS QwmmSM MANSM • Even if tete actual property and related Militias are =p*ed at 00 costp there are costs that will be incurred fcr studies and surveys ilial must be coinpkUd as a,000dition Of transfer. Wo dw am) a Consultants has pmepared$� Y cost estimate for the Salinas Reservoir PItaPYftwoft sfer are nm of required studies and surveys. T r-cost-incu�g activities�v+ith the proputy anticipated to include: ' {, '1. NEPA Environmental Rcvlew 2. Real Estate Tramfer Costs 3. Boundary Zein Surrey 4. Hazardous Materials Evaluation S. Cultund Resources Review 6. Special L.eeslative Assistanc* For detailed explanation of each item Listed above and estimated individual cos%te$470t��--$ t A. The total cost associated with the above activities is.estimated to be betwed These costs aro not based on a worst case scenario and were developed "ough discvssiont with the ACOS and the assumptions listed in Attachment A. • n4TAN 30 '95 01PK-U31-1G WK5 UTAL1I1= P.21132 city of sari Luis OBISPO • Salinas Reservoir Own=Wl? Page S reservoir cjq=siott project. the There would be many conditions which would;need to be worked out to insure that the City's input concerning budgets and operations of the � m6m are addressed. City staff's main concerns center around water qulality at the reservoir Ond eff dent operations. No Qwnerzk(p Dvwar ' would put the Saunas The last alt=ative is to do clothing regarding the iranhen of o„vnsfcm io. wn could be mutually RMMjr Expansion project on hold tmtil a later data when the o f the fa A 0=08b the mllitazy agrecfl upon by the City and County. Y'ho AC08 +could dispose surplus procedures and adagectcy or atdividual other than the City or County aPu mrasted for�marpy This is not a lrk+I ly situation but is a possibility. Since tho ACCB has b:tai ids that one n!the years in tt'ansfardng the ownership of this facility to a local agency. other altarnativa be pursued. Summary Based an all the information premed ab"s there are two readily viablo alter M,oves conmft trausfar of ownership to a local agency if the t"ounct�domes i 1�3 to E ' ' The toms would appear to be the preferred aitersadves. Of these two JPA or County ownership m rtin County ownership with the coblditicn that an agrt+et Wt alternatives, 'would recommend suPpo g This,would can bo worlaed out with the County to protect the City's interests as outfitted its'ft report. be the most cxyolent jaM advo and with sufficient conditions in an agroemet to would still allow City input concerning operations at the rc*xvok' MSCAL DWACT , 'Thera is no un=,&a% fisW impact. although dgWding ori-the outcome off' d1mussions cov g • ditures may be in the future to aeco=Flisb this trastsfol�. ownership transfer, �t expo Y uucmrnts would be to pursue spectsl ,he least evq=sive alternative rqudW the ACOB p=Wuml� � glong with the legislation. The other two options may require the pu=bes of the PIPEV w4 faalitias costs associated with the studies and surveys. Attachment: 1. Preliminary Cost Estimates for Salinas RUM* Propfty TwAr p�Uwue�.aou= ' 1 JAN 30 '95 03:02PM P.22/32. . 0"o City Of SAn IUIS OBIOV 990 Patm StreetrPost otilca Box 8100 o San Luis Oblapo.CA 9$403.8100 ti September 26, 1994 mcovE Th,e•Honorable Andrea Seastrand SEP .L R��E j V�� Assemblywoman, 'nirtyThird District 523 Higuera Street CVTY t COUNCIL ani San Luis Obispo, CA 93401 OCT 0 7 1994 Dear Assemblywoman Seastrand: DR'l:OF MUCyy4RKg This letter is sent in response to your correspondence dated September 7, 1994 regarding the concerns raised by the Salinas River Coordinated Resource Management and Planning Steering Committee and Water Task Group (CRMP) relative to the proposed Salinas Reservoir Expansion Project. As you may be aware, the City of Satz Luis Obispo (City) is proposing to increase the storage capacity at the reservoir by installing spillway gates at the existing dam. The proposed expansion project would increase the maximum reservoir storage capacity from 23,843 acre feet (a.f.) to 41,79? a.f. This project has been proposed _ for many years by the City to increase rhe available water supply to meet curttent and future water demands. As with any water supply project, there is opposition from individuals and agencies to the. proposed project. I will provide a brief background concerning the history of the Salinas Dam and the proposed expansion project and follow up with a detailed response to the issues raised by the CRMP. • History of Salinas Dam The Salinas Dam was constructed in 1941 by the War Department in response to World War II. The reservoir was built to ensure an adequate water supply for Crop San Luis Obispo as well as the City of San Luis Obispo. On May 27, 1941, the United States government filed an application to appropriate water from the Salinas Rivet for storage at the proposed Salinas Dam, On Juno 4, 1941, hbo City of San Luis Obispo filed a "mirror" application to appropriate water from the Salinas River. Both permits we#e approved by the State.Water Resources Control Board(Board),Division of Water Rights.'These permits are not additive but both allow for a maximum diversion to storage of 45,000,J, Camp San Luis Obispo has not utilized water from Salinas Dam in the past. The City of San Luis Obispo has been using water from the facility since the 1940's. The dam, pipeline and related facilities were constructed in a very short time frame due to WWII. The project construction was completed in approximately nine months. During construction, a small fault was discovered in the right abutmenr area of the dam. This is located on the spillway side of the dam. Due to this discovery and the short iitime frame for construction, the decision was made not to install the spillway gate at that time. As a • JAN 30 '95 03:03PM P.23i3Z-, ' `' ;. historical nota, the spillway gala was delivered to Salinas Reservoir but subsequently ,!',installed at Friant Dam located near Fresno. the City has included the installation of the spillway gate at the dam in numerous planning documents for many years, as a means of increasing the available water supply for the City. ' The expansion project is an important component of the City's water supply stralegy to meet current and future water demands. In the early 197VS, a series of concerns were raised by north county water users concerning possible impacts to the natural environment and water resources along the Salinas River due to the Salinas Dam. The State 'Water ResodreesControl Board issued a number of decisions that modified the operations at the reservoir and these conditions aro referred to as the"Live Stream.Agreement":'-The conditions were imposed to insure that downstream water rights are protected. The conditions require-that until there is a visible:surface flow of water in the river between the dam and the confluence n'ith the Naeimiento River, no water can be diverted to storage for later use by the City. Therefore,until the Alive stream' is established, all water flowing-into the back of the lake must be released downstream from valves located at the dam. It should be noted that establishing the "live stream" typically requires IO to 12 inches of rainfall during the rainy season and once established typically flows for months following closure of the valves at the dam. Previous Studies In February 1989, an evaluation report for hydrologic, seismicity, and damn safety was completed by Woodward-Clyde Consultants for the proposed expansion project. The detailed analysis revealed that with some additional minor modifications, thespillway gate could safely be installed at the dam and that the darn would withstand the maximum design iearthquake without failure. The small fault located in the right abutment was determined to be inactive, but strengthening the foundations with rock anchors was recommended. Once stabilized the right abutment would not be expected to`pose a problem. "fie final plans and modifications to install the spillway gate will meet all state and federal requirements for dam safety. The plans must be revic%ved and approved'', by the State Division of Safety of Dams prior to proceeding witli construction,which will afford an even greater level of safety oversight than previousl i conducted, In November 1993, the Draft Environmental Impact Report'(EIR) for the proposed expansion project was released for public review and comment. The commenj period closed on January 3, 1994. Many comments and concerns were received from individuals and agencies,and the City is now working�on implementing many of the suggestioos,'particularly for impact mitigation. All comments received during the review'period will be addressed in the final EIR. Ownership of the Brim During the development of the draft EIR, the U.S. Army Corps of Engineers decided that the expansion project would not be allowed to proceed until the ownership of the darn and - JAN 30 '95 03;03PM P.24/32•' 'A 3, The City has utilized water from the Salinas Dam since the 194p's. Prior to the 1940's, the City utilized local groundwater and small creeks to supply water to City regl4ents. Following construction of the Salinas Dam, the City relied almost exclusively on the reservoir to meet the water demands of the City. In 1961,Whale Rock Reservoir was completed. The State`,and the City e y are partners in the Whale Rock project and a portion of the";,.,City's water needs have been met from Whale Rock since the 1960's. It should s noted that Salinas Reservoir has provided the majority of the City's eater supplies since the 1940's and is still viewed as the City's primary source'',of water. 4. The draft EIR says that the continued operation of the reservoir under the terms of the "live-stream agreement" will insure protection of downstream water users and hibitat. •Since potential downstream flow reductions would not occur until after establishment of a visible stream, the pot0tial impacts were determined to be insignificant. The potential reductions!in flows only occur in periods of large flows in the river following extended periods of rain. The attached charts graphically show that the potential downstream flow reductions only occur in years were there is excess flow in the river. The charts also reveal that the reduction is minimal compared to the total river flow. 5. The County has proposed formation of a new zone (Zone 17) to the Flood Control District to oversee the operation of the facility. Even if the ownership is not transferred, the County may decide to form Zone 17. 'This is done to separate the costs and liabilities associated with the operations of the dam and related facilities. The costs anti liabilities would be born by the area benefiting from the facilities (ie. City of.San Luis Obispo). This is the i same way that other facilities are operated throughout the county, such as the Lopez Lake water supply. The County Board of Supervisors acts as the Board for the District. Four of the five Supervisors District's do includc portions of the City of San Luis Obispo,but due to this division there is no single strong voice for the City on the Board, The Board of Supervisors docs represent the entire County and the County has acted as a neutral third party to ensure proper operations for the past several decades. 6. As stated in the section on previous studies, there has been extensive structural analysis performed that confirms that,%iih minor improvements,the dam is capable of withstanding a magnitude 7.4,earthquake on the Riconada Fault,which is located-approximately one mile away from the dam. The dam was not found to be "unstable" when it was constructed, but,'due to the fast track construction, limited iMmediate water demand in 1942, and concern over the discovaty of a small,inactive fault(noted in the historical section of this letter) it was decided that the spillway gates did not need to be installed at that time. The damn=currently meet federal standards and is inspected every five years by the Corps of Engineers. Once ownership is transferred to the District, the dam will fall under the State Division of Safety of Dams and JAN 30 '95 03:04PM P.25i32 • will have to meet all the current standards established by the state, including '�. annual inspections. 'Ile statement that the dam"was intended to have a 25 year life" is an argument that is not based on any technical information that the City is aware of. Dams cannot economically or practically'be designed and constructed for only a 25 year life. 7. The California Department of Fish and Game (CIF&G) has expressed concern for the potential impacts associated with the expansion,project, and the City, through its environmental consultants, is in contact with CDF&G staff concerning these issues. The detailed mitigation measures and mitigation monitoring plans will be developed through consultation kith the CDF&G, Department of FM snd'Wiidlife, the Corps of Engineers as well as other regulatory agencies and interested parties. The final EIR will address the concerns raised by Fish and Game staff. The statement that "No mitigation measures were recommended for impacts to downstream resources because they were deemed too innumerable to address", is not true. The"live stream" concept protects the downstream resources and,with the continued operation of the facilities under these requirements, the impacts downstream were deemed to be insignificant. 8. Computer analysis of the reservoir, based on historical rainfall patterns, reveals that the reservoir will still spill once the spillway gates are installed. As previously pointed out, the average annual flow reductions alt Paso Robles after the dam expansion is less than 11-75. This will not create a "drought situation" for the Salinas itiver. As far as the impacts due to the river not being"flushed",the majority of the river flows at Atascadero and Paso Robles are from tributary flows downstream of the darn. Approximately 80 %of the flocs at Paso Robles are from water which flows' into the ,Salinas River downstream of the dam. Therefore, high seasonal flow rates would still occur as they have in the past following the expansion iof`the reservoir capacity. Again:, refer to the attached graphs which indicate the potential downstream flow impacts relative to the total flow that would be anticipated. As stated previously, the"live stream agreement"protects the vested downstream water rights of the north county and the project will MI result Lin a "drought situation"for the Salinas River forever. It should also be noted that as water demand and groundwater pumping increases in the north county (ie. municipal, agriculture,etc.) it may take more rainfall and discharges from the darn until the live stream is established. This will protect the north county comrounities available water resources from the Salinas River as growth occurs. 9. The City Council approved participation in the State`Vater Project following a eery close advisory ballot measure which indicated that the voters did not support the project. A referendum was circulated and a ballot measure was placed on the next election concerning the City's participation in the State - Water project. The ballot measure was binding and the voters turned down JRN 30 '95 03:05PM q' P.26/32 , participation in the project. The issues relative to state water were numerous and did include concerns for growth in the community, but this was not the q ' primary issue. "Ilse other areas of concern raised during the electign involved reliability, water quality, enviroranental impacts'(to the bay and jdelta) and _ costs. Cal Poly ("state university") and the California Men's Colony ("state prison") both have their own sources of water. Both agencies, along with',the City of San Luis Obispo,paid for the construction of Whale Rock Reservoir. These three agencies make up the Whale Rock Commission. The water from Whale Rock Reservoir is 1regied by the City at our water treatment plant for distribution to Cal Poly,but the raw water is Cal Poly's portion of their Whale Rock supply. CNt6''treats their own water and also has a small reservoir on Chorro Creek which they utilize to meet their water needs. The City does supply water to Caltrans ("state highway headquarters andsupport yard") which is located within the City. Cuesta College is currently served water from the City's portion of the Whale Rock Reservoir but this will cease once the State Water Project is completed. Both CMC and Cuesta:College are participating in the State Water Project. The statement that "All State facilities in other California Communities are required to use State Water° is not true. Many areas within the state are not served by the State Water Project and/or utilize other available water resources. It should be noted that all of the north county communities had'the opportunity 10 Participate in the State Water Project but each of their Councilsand Boards turned down participation. 10. As stated previously, there is no"strong"representation or voice on the Board • of Supervisors for the City of San Luis Obispo: The formation of a "lt County Water Resoprces District"would not be a'neutral third party anddhe the decisions made by such an agency would likely be self serving. The County Flood Control District has acted for many years_ in a professional and competent manner. Since the District does not directly benefit from the water supply at Salinas Reservoir, they are able to operate the facilities to insure protection of City as well as north county interests. Exercising appropriated water rights granted by the StatL Board 50,years ago `does gtot constitute "robbing" the water supply and Salinas"River flow from the North County. The City is legally untitled to store and use water for beneficial uses. Concerning the capability of Atascadero and Paso. Robles water supplies during the recent"Highway 41 Fire',newspaper reports following the fire said that there were concerns due to power outages which can cause problems with electrical booster pumps used in the water systems. As far as water quality problems in Paso Robles which has resulted in several wells being shut down, this is a result of new federal regulations (Surface Water Treatment Rule) which requires that groundwater wells which are under the "direct influence" of surface water must be treated using conventional treatment facilities. This • 1 JAN 30 '95 03:05PM P.27/32 .r 4 is very costly and the City of Paso Robles does not presently have The facilities to treat the water to meet the new requirements. r The Salinas Reservoir Expansion Project is a vital component in the City'4 long-term ' supplemental water supply strategy. The City is also pursuing additional 11111ater supply projects such as the Nacimiento Project, water reclamation and an aggressive water conservation program. I hope this clarifies the issues concerning the Salinas Reservoir Expansion Project. If you have any additional questions orwricerns, please give me a call at 805-781-7114. Also,feel free to contact the City's project manager for the Salinas Project, Gary Henderson (Water Division Manager) at 781-7237. Sin , John unn I dministrative Officer Attachments: A. Leiter from Salinas River CRMP B. Estimate Flow Reduction Charts c: Congressman Huffington City Council Board of Supervisors City Attorney ' County Counsel County Engineering County Parks JAN 30 '95 03:06PM P.26/32 Flow at Paso Robles (AFY) (Thousands) 0 0 © 0 a o cc) i . C CD CD. cn c- CD O• i t 1W a Cb 7n M C:) CD -4 € 0 03 Zoom I �a(D © c7 _ . { CD 0_ • g luewy3,014b JAN 30 '95 03:06PM P-29/32 Flow at Atascadero (AFY) (Thousands) (f� tv c -rtecna o0 0CD 0 (D (n cn { ! � 0 t) i O SM (ji { CD v I tU i tD --4 --� C`1 , o � ! 4./0JRN 30 '95 03:07PM Attachfff.,AQ/P� r" I IHE • _ Salinas River CRMP Steening Committee and Water Task Group SALINASERVOIR. EXPANSION CONCFRirS over the past t�•o yexss. landow-nals and concrr+'tcd citizens have pa�ciea Upper r oemert and ,anning (CRIMP) process- Tne Salinas River Coordinated Resource M. i' Miss-,.op 0 this effort is: to ensure the health and irten^ti' of theist d v c m rye Upper:�Salinas River as a vital 1i€aline it ou: e:oMomic En-P-11 the n:�r=r3 ...�.ra:.rr: As chizn:ns of the North County we are %-e,y concerned about the ef';eVs Of the Salinas Rese;`•ro:r i7= expansion on the 'Wess;ted; day forEae benefit a-Z-01 Cow ofd river -.esources. the City San Luis proposed ingination of .be Spillway sates. $olei_ %. Obispo, r the dam b7om 2.3,843 acre fact (� to •xill dramatically increase the capac'sty o, • 1.?92 AF, altowi:,� for capture and reravvxl of sisAiFscnntly :tore waiter oat of the Salinas R,wer v\y.ersbed. ; n, e Dry EIR estimates the annual reduction iris fsow=oe.$"in .gym 61dam ga asio could range Loan 1,617. AF toyer 300 million galtonsl ate mricemed the reduction in flow could exceed hL-.c amounts in,the future. «`e recY_mv this dawnstream Low serves %itaL'y impor�,nt roles. We end that the,Drai'` Envicornmetttal Impact Report for the proposed Salm•s Rise Res oiExpansion at emptstQ does not adequately address the serious,downstream imp . downplay 2nd disregard the enAronmental impacts. This 'project wouI4 do s4gn ica nt daM29e: o dry up the Uinas River corridor o destroy do,-nstre= `aquatic resources znd w-Bdli£c haVitat a destroy natural flushing of the Salinas RiVeT o harm vZter quality b}' diminishing bresh v.-ater cleansing of the �.cr corn 0 diMinish :eplenishment of gravel supplies o seriously threaten the main •Nater supplyin'the no--,Tiara Sari Luis Obispo County o aggravate Monterey Co�apty'S salt snorer untrusibn crisis Vt'hY and how is this happening in the 1990'5? Hos+can the en-ironme*W 1 Comet us Ct s of San suis Obispo be insensitive to the health and viability of the n most slgitifc3.rnt river resource- �_•wr HN 30 '95 03;0 t4rl P.31/32 1•t�V _ r/ Ground Water Recharge and River Cleansing The Salinas-Paso Robles Ground water basin is in an lover draft" condition and the long term caster quality is threatened (study of Paso Robles Water Basin 1993 Dr. Copping report, section S). o Salts and sulfurouAbild ups in the river must be fiusbed out by bi& volume river flews dating storm events that his.orically ba-•e cleansed the river &nd recbarged the ground water basin. o Tne dant expansion mil cripple t,c r:lvcrs abili-ty to heal ieelf. o 'i he"Dowaramm concepi'would not recharge nor cleanse the Salinas Water Basiv. The Caun:;► of San Luis Obispo eports that since '1941 zYie Salinas Dam bas c�erf�owed its spiilaay only I7 times in the last 53 vesrs. Sore averflow's last for montbs but often they last for only ds�vs. would o Doubling the size of the dam for the benefit of t1le City of San toss Qbispo guarantee a "drou& situation" for the Salinas Ri-ver forever! ?,Jternative5 for the City of San Luis Obispo The City bas tined down state w-atcr twice during elections that tied statewater to future growth for the City. Yet today tae cit wants water fiom the Salinas Valley to ensure its future gro'w'th. A state university, a commusiity college. a state prison. and a state hi�:a�.�ay headquarters and support }'ard are all using 'water 310PUed by the City of San LuisObispo instead of Stats:Water. All State facilities in other Caufornia Communities are required'to ase State Water. outstasiding River values The Bureau of Lased Management {BLKi recommended a 40 mile seziment of the Salinas River be studied for Wild and Scenic'Rkyer eligibility due to scenic quality. uniqueness, uradlife values, and ecological importance as a Tip+er corridor 1:n this r4gion. Political Chaliesues The actions za en by the City of San Luis Obispo strain normal relations between' o the ty and icm Couuty depaents and personnel Ci o the City of San Luis Obispo and iL�crtlt County Cities 0 the residents of San Luis Obispo City and ''NoZh County residents City Op san LUIS OBISPO Salinas xeservoir Ownership Page 4 There:will also be coats incurred by-ACM staff to process the disposal of the ffac"Aides. The Corps has nguested that $50,000 bee sent to the ACOE to develop a fimd to draw against for their sixvicaa. Depending on which of the following ownership trmtsfex alternatives is mutually agreed upon by the County and City, these costs should be the reslwnsibility of rho agency or a,gcocies that will eventuany acquire the proparty. OWNIs.RgHIP ALTERNATIVES There are basically four altUnatives that staff has identified concerning the IIACOE position that the Salinas Reservoir and relabel faciUtties must be transferred to a local agency pdor to the implementation of the reservoir expansion project. Theca four alternatives are briefly.outtinod below. Staff is requesting Council review them alternatives and i:anddering the informadon prcviouslyl provided in this report, provide staff with direction as to the preferred ownership alternative. My Ownershfi solo ownership of the facfliti6s. In The first option would be for the:City of San l:.uts Obispo 14 acquire to ire the S�litlas Dam1981,the City Council adopted Resolution No. 4567 stating the CRY desired ager ides staff and other co and related fhcM ies. Bite staff,has met with Coutroerneld whes many times ill to gain support for City ownership of the facilities. A number of north county agencies do not s►ttppotfi the City obtaining ownership of the reservoir. The main concern is the physical opearation of the valves which release water down stream to comply with the requirements of the"live strrram"agreement, These agencies f=h that the County Flood Control is an unbiased third park' and is abJective in adrniniMIng the r quirements of the live strum.agreement. ' ved coup staff and elected officials also oppose sole City owne"Mp of the facMdes. A number of tnvol . county residents and the control The County facts that this facility is a major riecreadOW benvat minty envies o r should restrain with the County._ purther discussions with the Cour and North County,ag o; appear to be promising for resoMAS their opposition to this alternative. Joint Posts Authoruy - of a joint powers The possibility of the formation of (VA has also been discussed with County staff as wallas staff from north county agetacies. The JPA would iriclud¢ reAresentatives from the out In the a The JPA could also include a ret+reser► tatives from a 'County, City, and of the north county agencies. of Water Resources (mu neutzai organization such as the Department ch like the whale flack of Cornmission). Although there are many details that would have to be because it allows afl'ectcd such an aued thority, there appears to biz some support for richt an.orgarn' agencies input in the opomdons of the reservoir. Count' ownaals;jp Ther third alternative would be for the City to support the County's acquisition of the facility, This is ip and moving forward on probably the most vgxAIdous alternative for achieving the transfer of ovrrters�t