Atascadero City Council
March 10, 2026

City of Atascadero

CITY COUNCIL AGENDA
* Note that the Zoom livestream option is provided to the public as a courtesy. The City does not guarantee that viewing the meeting live will be available via Zoom. If Zoom livestream is not enabled, or streaming is disrupted, the meeting will continue with public attendance in-person only.

HOW TO SUBMIT PUBLIC COMMENT:

Public comment may be provided in-person.

Written public comments are accepted at [email protected]. Comments should identify the Agenda Item Number in the subject line of the email. Such comments will be forwarded to the City Council and made a part of the administrative record. To ensure distribution to the City Council before consideration of an item, please submit comments not later than 12:00 p.m. the day of the meeting. All correspondence will be distributed to the City Council, posted on the City’s website, and be made part of the official public record of the meeting. Please note, comments will not be read into the record. Any written comments received for items not appearing on the agenda will be treated as general Council correspondence. Please be aware that communications sent to the City Council are public records and are subject to disclosure pursuant to the California Public Records Act and Brown Act unless exempt from disclosure under applicable law. Communications will not be edited for redactions and will be printed/posted as submitted.

AMERICANS WITH DISABILITIES ACT ACCOMMODATIONS:

Any member of the public who needs accommodations should contact the City Clerk’s Office at [email protected] or by calling 805-470-3400 at least 48 hours prior to the meeting or time when services are needed. The City will use their best efforts to provide reasonable accommodations to afford as much accessibility as possible while also maintaining public safety in accordance with the City procedure for resolving reasonable accommodation requests.

DISCLOSURE OF CAMPAIGN CONTRIBUTIONS:

California Government Code section 84308 (“Levine Act”) requires a party to or participant in a proceeding involving a license, permit, or other entitlement, including all contracts other than competitively bid, labor, or personal employment contracts, to disclose any contribution of more than $500 that the party or participant (or their agent) has made to a member of the City Council within the prior 12 months. The City Council Member(s) who receive such a contribution are disqualified and not able to participate in the proceedings and are also required to disclose that fact for the official record of the subject proceedings. Disclosures must include the amount of the campaign contribution and identify the recipient City Council Member and may be made either in writing to the City Clerk before the agenda item or by verbal disclosure during consideration. The Levine Act also prohibits, during the proceeding and for 12 months following a final decision, a party to or participant in (or their agent) a proceeding involving a license, permit, or other entitlement, including all contracts other than competitively bid, labor, or personal employment contracts, from making a contribution of more than $500 to any member of the City Council or anyone running for City Council.

City Council agendas and minutes may be viewed on the City's website:
www.atascadero.org/agendas
Copies of the staff reports or other documentation relating to each item of business referred to on the Agenda are on file in the office of the City Clerk and are available for public inspection on our website, www.atascadero.org.

Contracts, Resolutions and Ordinances will be allocated a number once they are approved by the City Council. The Minutes of this meeting will reflect these numbers. All documents submitted by the public during Council meetings that are made a part of the record or referred to in their statement will be noted in the Minutes and available for review by contacting the City Clerk's office. All documents will be available for public inspection by appointment during City Hall business hours.

MEETING INFORMATION:

The City Council meeting will be held in the City Council Chambers and in-person attendance will be available at that location.

HOW TO OBSERVE THE MEETING REMOTELY:

To observe remotely, residents can livestream the meeting on Zoom and listen live on KPRL Radio 1230AM and

99.3FM. The video recording of the meeting will be available through the City’s website and on the City’s YouTube Channel. To observe remotely using the Zoom platform please visit:
https://us02web.zoom.us/webinar/register/WN_ZwJ7a031S3KXauEym9ehaA

CITY OF ATASCADERO

CITY COUNCIL
AGENDA

Tuesday, March 10, 2026, 6:00 p.m.

City Hall Council Chambers, Fourth Floor
6500 Palma Avenue, Atascadero, California
Pages
A. REGULAR SESSION - CALL TO ORDER
B. PLEDGE OF ALLEGIANCE
Mayor Bourbeau
C. ROLL CALL
Mayor Bourbeau
Mayor Pro Tem Dariz
Council Member Funk
Council Member Newsom
Council Member Peek
D. PRESENTATIONS

1. Operating Budget Excellence Award Presented to City of Atascadero

2. 2026 Outstanding Local Streets and Roads Project Award Presented to City of Atascadero
E. CONSENT CALENDAR
(All items on the consent calendar are considered routine and non-controversial by City staff and will be acted upon by a single action of the City Council unless otherwise requested by an individual Council Member for separate consideration. Public comment on Consent Calendar items will be invited prior to action on the Calendar.)

1. City Council Draft Minutes - February 24, 2026 Regular Meeting 4 Recommendation: Council approve the February 24, 2026, City Council Regular Meeting Minutes [City Clerk]

2. December 2025 Investment Report 10
Fiscal Impact: None
Recommendation: Council receive and file the City Treasurer's report for quarter ending December 31, 2025 [Administrative Services]

3. Old Morro Road Functional Classification Change 25
Fiscal Impact: There are no expected fiscal impacts associated with adoption of this resolution. If the functional classification change is approved by Caltrans and FHWA, Old Morro Road would become eligible for emergency funding during declared natural disasters, potentially saving the City significant costs in the future.

Recommendation: Council adopt Draft Resolution approving the submittal of a functional classification change request for Old Morro Road to Caltrans. [Public Works]
F. UPDATES FROM THE CITY MANAGER
(The City Manager will give an oral report on any current issues of concern to the City Council.)
G. COMMUNITY FORUM
(This portion of the meeting is reserved for persons wanting to address the Council on any matter not on this agenda and over which the Council has jurisdiction. Speakers are limited to three minutes. Please state your name for the record before making your presentation. Comments made during Community Forum will not be a subject of discussion. A maximum of 30 minutes will be allowed for Community Forum, unless changed by the Council. Any members of the public who have questions or need information may contact the City Clerk’s Office, between the hours of 8:30 a.m. and 5:00 p.m. at (805) 470- 3400, or [email protected].)
H. MANAGEMENT REPORTS

1. Proposed Sewer Service Charge Rate Increase 29
Fiscal Impact: Administering the Proposition 218 process will cost approximately $6,200 in budgeted wastewater funds. If approved, the rate increase will generate an estimated $1,061,000 in revenue from increased sewer service charges over FY25/26 revenue..

Recommendation: Council:

1. Direct staff to administer the Proposition 218 majority protest process and send out notice of the proposed sewer service charge rate increases to all property owners connected to the municipal sanitary sewer system.

2. Set a Public Hearing on May 12, 2026 for the City Council’s consideration of the proposed sewer service charge rate increases. [Public Works]

2. Zoning Code Update – Mixed-Use Zones and Standards 38 Fiscal Impact: None
Recommendation: Council receive an update on the Zoning Code Update project, provide direction to staff on policy questions related to Mixed-Use zoning districts and development standards, and receive information about next steps. [Community Development]
I. COUNCIL ANNOUNCEMENTS AND COMMITTEE REPORTS
(On their own initiative, Council Members may make a brief announcement or a brief report on their own activities. The following represent standing committees.

Informative status reports will be given, as felt necessary):

Mayor Bourbeau

1. City Selection Committee

2. County Mayor’s Round Table

3. Integrated Waste Management Authority (IWMA)

4. Central Coast Community Energy (3CE)
Mayor Pro Tem Dariz

1. Air Pollution Control District

2. California Joint Powers Insurance Authority (CJPIA) Board

3. Community Action Partnership of San Luis Obispo (CAPSLO)

4. Visit SLO CAL Advisory Committee
Council Member Funk

1. Atascadero Basin Ground Water Sustainability Agency (GSA)

2. Design Review Committee

3. Homeless Services Oversight Council

4. REACH SLO Advisory Commission
Council Member Newsom

1. City of Atascadero Finance Committee

2. City / Schools Committee

3. League of California Cities – Council Liaison

4. SLO Council of Governments (SLOCOG)

5. SLO Regional Transit Authority (RTA)
Council Member Peek

1. City of Atascadero Finance Committee

2. City/Schools Committee

3. Design Review Committee

4. SLO County Water Resources Advisory Committee (WRAC) J. INDIVIDUAL DETERMINATION AND / OR ACTION:
(Council Members may ask a question for clarification, make a referral to staff or take action to have staff place a matter of business on a future agenda. The Council may take action on items listed on the Agenda.)

1. City Council

2. City Clerk

3. City Treasurer

4. City Attorney

5. City Manager
K. ADJOURNMENT

03/10/26 | Item E1
Atascadero City Council
February 24, 2026

CITY OF ATASCADERO

CITY COUNCIL MEETING

DRAFT MINUTES
February 24, 2026, 6:00 p.m.

City Hall Council Chambers, Fourth Floor
6500 Palma Avenue, Atascadero, California
_____________________________________________________________________ A. REGULAR SESSION - CALL TO ORDER
Mayor Bourbeau called the meeting to order at 6:00 P.M.

B. PLEDGE OF ALLEGIANCE
Council Member Peek led the Pledge of Allegiance.

C. ROLL CALL

Present: Mayor Bourbeau, Mayor Pro Tem Dariz, Council Member Funk, Council Member Newsom, Council Member Peek

Absent: None
Staff

Present:

City Manager James R. Lewis, Assistant City Manager/City Clerk Lara Christensen, City Attorney Dave Fleishman, City Treasurer/ Director of Administrative Services Jeri Rangel, Public Works Director Nick DeBar, Community Development Director Phil Dunsmore, Fire Chief Casey Bryson, Police Chief Dan Suttles, Deputy City Manager - IT Luke Knight,
Community Services and Promotions Director Terrie Banish, Public Works Analyst Ryan Betz, Associate Planner Erick Gomez
D. CONSENT CALENDAR

1. City Council Draft Minutes - January 30 & 31, 2026 Special Meeting Goal Setting Workshop
Recommendation: Council approve the January 30 & 31, 2026, City Council Special Meeting, Goal Setting Workshop draft minutes. [City Clerk]

03/10/26 | Item E1
Atascadero City Council
February 24, 2026

2. City Council Draft Minutes - February 10, 2026 Regular Meeting Recommendation: Council approve the February 10, 2026, City Council Regular Meeting Minutes [City Clerk]

3. January 2026 Accounts Payable and Payroll
Fiscal Impact: Total expenditures for all funds is $3,040,084.93 Recommendation: Council approve certified City accounts payable, payroll and payroll vendor checks for January 2026. [Administrative Services]

4. Apple Valley Street and Storm Drain Maintenance District No. 01 Budget Adjustment
Fiscal Impact: Authorizing staff’s recommendation will result in additional fiscal year 2025/26 budget expenditures up to $19,200 from the Apple Valley Street and Storm Drain Maintenance District No. 01 Fund balance, which has ample fund balance available to cover the requested allocation.

Any remaining balance from the repair project will be returned to the Apple Valley Fund balance.

Recommendation: Council authorize the Administrative Services Director to allocate an additional $19,200 from the Apple Valley Street and Storm Drain Maintenance District No. 01 (District) Fund balance to the District’s fiscal year 2025/26 Budget to repair damaged street pavers on San Ramon Road. [Public Works]

5. 2025 Building and Fire Code Updates
Fiscal Impact: Costs associated with enforcement of the new code requirements are covered through the collection of plan check and inspection service fees. Staff expects minimal fiscal impact from the adoption of the new building codes and proposed code text amendments to property and business owners.

Recommendation: Council:

1. Adopt, on second reading, by title only, Draft Ordinance A repealing and replacing in its entirety Title 4, Public Safety, of the Atascadero Municipal Code for consistency with the 2025 California Fire Code and adopting local amendments.

2. Adopt, on second reading, by title only, Draft Ordinance B, repealing and replacing in its entirety Title 8, Building Code, of the Atascadero Municipal Code for consistency with the 2025 California Building Code and adopting local amendments. [Community Development]
Mayor Bourbeau removed item D6 from the Consent Calendar for separate discussion and vote. The item was moved on the Agenda to after Management Reports.

Mayor Bourbeau opened the Public Comment period.

The following persons spoke on this item: None

03/10/26 | Item E1
Atascadero City Council
February 24, 2026

Mayor Bourbeau closed the Public Comment period.

MOTION BY: Funk
SECOND BY: Peek

1. Approve Consent Calendar Items D1-D5 (Item D5: Ordinance No. 692 & 693)
AYES (5): Bourbeau, Dariz, Funk, Newsom, and Peek
Passed 5 - 0
E. UPDATES FROM THE CITY MANAGER
City Manager Lewis gave an update on projects and issues within the City.

F. COMMUNITY FORUM
The following persons spoke: Geoff Auslen
G. PUBLIC HEARINGS

1. ** CANCELLED ** Zoning Change and Conditional Use Permit USE25-0069 Chick-Fil-A
This item has been cancelled and has been rescheduled to the 3/24/26 Regular City Council Meeting
H. MANAGEMENT REPORTS

1. Short-Term Rental Discussion
Fiscal Impact: No significant fiscal impacts are expected.

Recommendation: Staff recommends the City Council review options and provide direction on whether or not the City should continue with the adoption of a Municipal Code Amendment that incorporates regulations on Short-Term Rentals and what such regulations might include.[Community Development]
Council Member Newsom declared a potential conflict of interest due to short term rental ownership and recused herself from the discussion and vote on this item.

Council Member Peek declared a potential conflict of interest due to owning property in a mixed use zoned area and recused himself from the discussion and vote on this item.

Council Members Newsom and Peek stepped down from the dais and left Council Chambers.

03/10/26 | Item E1
Atascadero City Council
February 24, 2026

Community Development Director Dunsmore presented this item and answered questions from the Council. Associate Planner Gomez also answered questions from the Council.

Council Member Newsom and Peek returned for Public Comment Mayor Bourbeau opened the Public Comment period.

The following persons spoke on this item: Sarah Maggelet, Ranelle Porter, Kay Porter, Tori Keen, Kathy Reed, Heather Newsom, Seth Peek, Geoff Auslen, Tom Foran, Lewis Olaf
Mayor Bourbeau closed the Public Comment period.

Council Member Newsom and Peek left Council Chambers
Council provided direction to Staff.

Mayor Bourbeau recessed the meeting at 8:41 pm
Mayor Bourbeau resumed the meeting with all present at 8:50 pm

2. San Luis Obispo Council of Governments Final Transportation Expenditure Plan for Potential Transportation Sales Tax Measure Fiscal Impact: While there is no immediate fiscal impact associated with this action, approving the staff recommendation has the potential for the City to receive over $2 million annually for local transportation needs if a potential ballot measure moves forward and is approved by voters.

Recommendation: Council adopt the Draft Resolution approving the San Luis Obispo Council of Governments Final Transportation Expenditure Plan for a potential transportation sales tax measure. [Public Works] Public Works Analyst Ryan Betz introduced the item and Annie Bowski from SLOCOG gave the presentation and answered questions from the Council.

James Worthley from SLOCOG also answered questions from Council.

Mayor Bourbeau opened the Public Comment period.

The following persons spoke on this item: Geoff Auslen
Mayor Bourbeau closed the Public Comment period.

MOTION BY: Bourbeau
SECOND BY: Dariz

1. Council adopt Draft Resolution approving the San Luis Obispo Council of Governments Final Transportation Expenditure Plan for a potential transportation sales tax measure.

AYES (4): Bourbeau, Dariz, Funk, and Newsom
NOES (1): Peek

03/10/26 | Item E1
Atascadero City Council
February 24, 2026

Passed 4 - 1
D. Consent Calendar

6. Fiscal Years 2026-30 Animal Control Services Agreement Fiscal Impact: The annual cost of the Agreement will start at $396,974 in fiscal year 2025-26, with annual adjustments to this amount each subsequent year. Fiscal years 2025-26 and 2026-27 include budgeted General Funds for this Agreement.

Recommendation: Authorize the City Manager to execute a five-year agreement with the County of San Luis Obispo for the continued provision of Animal Care and Control Services for the period of July 1, 2025, to June 30, 2030, in the amount of $396,974 for the first year, with annual adjustments thereafter [Police]
Police Chief Suttles answered questions from Council.

Mayor Bourbeau opened the Public Comment period.

The following persons spoke on this item: None
Mayor Bourbeau closed the Public Comment period.

MOTION BY: Funk
SECOND BY: Newsom

1. Council authorize the City Manager to execute a five-year agreement with the County of San Luis Obispo for the continued provision of Animal Care and Control Services for the period of July 1, 2025, to June 30, 2030, in the amount of $396,974 for the first year, with annual adjustments thereafter. (Contract No. 2026-003)
AYES (5): Bourbeau, Dariz, Funk, Newsom and Peek
Passed 5-0
I. COUNCIL ANNOUNCEMENTS AND COMMITTEE REPORTS
The following Council Members gave brief update reports on their committees since their last Council meeting:

Mayor Bourbeau

1. City Selection Committee
Mayor Pro Tem Dariz

1. Community Action Partnership of San Luis Obispo (CAPSLO) Council Member Funk

1. Atascadero Basin Ground Water Sustainability Agency (GSA)

2. Homeless Services Oversight Council

03/10/26 | Item E1
Atascadero City Council
February 24, 2026

Council Member Peek

1. City/Schools Committee
J. INDIVIDUAL DETERMINATION AND / OR ACTION:

None
K. ADJOURNMENT
Mayor Bourbeau adjourned the meeting at 9:55 P.M.

MINUTES PREPARED BY:
_____________________________
Alyssa Slater
Deputy City Clerk
APPROVED:

CITY OF ATASCADERO

CITY COUNCIL STAFF REPORT
Department: Administrative
Services
Date: 3/10/26
Placement: Consent
TO: JAMES R. LEWIS, CITY MANAGER
FROM: JERI RANGEL, DIRECTOR OF ADMINISTRATIVE SERVICES/TREASURER PREPARED BY: KRYS CLARK, ACCOUNTING SPECIALIST
SUBJECT: December 2025 Investment Report
RECOMMENDATION:

REPORT IN BRIEF:

CASH AND INVESTMENTS
Checking Account $ 2,272,744
Zoo Credit Card Deposit Account 2,253
Mechanics Bank Money Market Account 1,089,479
Certificates of Deposit 15,033,696
Government Securities 27,976,797
Municipal Securities 8,067,787
Supranational Securities 1,005,869
LAIF 10,347,204
Cash with Fiscal Agents (2024 Bonds) 23,482
Cash with Fiscal Agents (2025 Bonds) 30,167,359
Cash in Banks at December 31, 2025 $ 95,986,670
Deposits in Transit 129,368
Timing Differences (1,508,967)
Cash and Investments at December 31, 2025 $ 94,607,071

INVESTMENT ACTIVITY
Securities Purchased:

Purchase Date Description Type Cost Maturity Date
11/19/25 Florida St Board
CUSIP #341271AF1
Municipal
Security
$ 463,490 07/01/30
11/19/25 Tennessee Valley Authority
CUSIP #880591FE7
Government
Security
502,860 08/01/30
11/24/25 San Joaquin Hills CA
CUSIP #798111HH6
Municipal
Security
480,895 01/15/29
12/05/25 Goldman Sachs Bank
New York, NY
Certificate of
Deposit
245,000 11/26/29
Council receive and file the City Treasurer's report for quarter ending December 31, 2025.

Item E3

Securities Matured:

Maturity Date Description Type Original Cost Amount Matured 10/01/25 Folsom Cordova School Dist
CUSIP #34440PCN9
Municipal
Security
$ 438,096 $ 400,000
10/03/25 Investar Bank
Baton Rouge, LA
Certificate of
Deposit
248,000 248,000
11/07/25 Federal National Mortgage Assn
CUSIP #3135G06G3
Government
Security
501,935 500,000
11/15/25 Tulare Sewer Revenue
CUSIP #899124MF5
Municipal
Security
417,052 400,000
12/11/25 BMW Bank North America
Salt Lake City, UT
Certificate of
Deposit
245,000 245,000
12/18/25 Third Federal Savings & Loan
Cleveland, OH
Certificate of
Deposit
245,000 245,000
12/29/25 American National Bank of MN
Baxter, MN
Certificate of
Deposit
248,000 248,000
Securities Sold Prior to Maturity:

Transaction
Date Description / Type
Original Cost /
Maturity Sale Price
Gain / (Loss)
on Call
Called
10/21/2025
The Citizens Bank
Certificate of Deposit
$ 249,000
8/21/29
$ 249,000 $ -
Other Reportable Activities:

None
REVIEWED BY OTHERS:

This item has been reviewed by the Administrative Services Director/City Treasurer and the Deputy Administrative Services Director.

REVIEWED AND APPROVED FOR COUNCIL AGENDA
James R. Lewis, City Manager
ATTACHMENT:

1. Treasurer's Report
Investment Activity (continued)
03/10/26 | Item E2 | Staff Report

City of Atascadero
Treasurer's Report
Cash & Investments Activity Summary
for the quarter ending December 31, 2025

CHECKING FISCAL

ACCOUNTS INVESTMENTS AGENT TOTALS
Balance per Banks at
October 1, 2025 $ 800,011 $ 66,681,781 $ 1,237,107 $ 68,718,899 Receipts 228,327 12,849,936 30,375,589 43,453,852
Recognition of Premiums &
Discounts 51,320 - - 51,320
Disbursements (14,815,326) (220) (1,421,855) (16,237,401) Transfers In 21,977,230 5,915,245 - 27,892,475
Transfers Out (5,915,245) (21,977,230) - (27,892,475)
Balance per Banks at
December 31, 2025 $ 2,274,997 $ 63,520,832 $ 30,190,841 95,986,670 Deposits in Transit 129,368
Timing Differences (1,508,967)
Adjusted Treasurer's Balance $ 94,607,071
03/10/26 | Item E2 | Attachment 1

MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/ COST OF MARKET UNREALIZED DATE (ISSUER) DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT) INVESTMENT VALUE GAIN / (LOSS) City of Atascadero
Investment Report
December 31, 2025
Funds Managed by City
n/a
Local Agency Invest.

Fund (LAIF) n/a State Investment Fund n/a n/a 4.03% $ 10,347,204 n/a $ 10,347,204 $ 10,369,776 $ 22,572 n/a Mechanic's Bank Money Market n/a Money Fund n/a n/a 4.67% 1,089,479 n/a 1,089,479 1,089,479 - 01/15/26 First Reliance Bank
Florence, SC
01/15/21 Certificate of Deposit n/a 0.30% 0.30% 245,000 n/a 245,000 244,642 (358) 01/22/26 ConnectOne Bank
Englewood Cliffs, NJ
01/22/21 Certificate of Deposit n/a 0.45% 0.45% 245,000 n/a 245,000 244,498 (502) 01/22/26 Luana Savings Bank
Luana, IA
01/22/21 Certificate of Deposit n/a 0.40% 0.40% 245,000 n/a 245,000 244,486 (515) 02/09/26 First United Bank & Trust
Durant, OK
03/16/23 Certificate of Deposit n/a 4.25% 4.81% 120,000 (76) 119,924 120,058 134 02/11/26 Ind'l & Com'l Bank of China
New York, NY
02/22/21 Certificate of Deposit n/a 0.45% 0.45% 245,000 n/a 245,000 244,040 (960) 02/24/26 Eaglebank
Bethesda, MD
03/16/23 Certificate of Deposit n/a 4.25% 4.25% 244,000 n/a 244,000 244,039 39 03/02/26 Federal Farm Credit Bank
CUSIP #3133EFH91
03/03/21 Government Security Aaa 2.22% 0.75% 876,000 2,146 878,146 874,047 (4,099) 03/27/26 Federal Agriculture Mtge Corp
CUSIP #31422XDX7
03/30/21 Government Security n/a 0.83% 0.87% 500,000 (45) 499,955 496,795 (3,160) 04/23/26 Malaga Bank
Palos Verdes Peninsula, CA
04/23/21 Certificate of Deposit n/a 0.55% 0.55% 245,000 n/a 245,000 242,548 (2,452) 04/24/26 Federal National Mortgage Assn
CUSIP #3135G0K36
04/26/21 Government Security Aaa 2.13% 0.77% 500,000 2,113 502,113 497,700 (4,413) 05/19/26 Eaglemark Savings Bank
Reno, NV
05/19/21 Certificate of Deposit n/a 0.70% 0.70% 245,000 n/a 245,000 242,195 (2,805) 05/31/26 US Treasury Notes
CUSIP #91282CCF6
11/23/22 Government Security Aaa 0.75% 4.15% 500,000 (6,893) 493,107 494,245 1,138 06/01/26 Golden St TOB
CUSIP #38122NC59
05/10/23 Municipal Security A 2.16% 4.52% 150,000 (1,444) 148,556 148,782 226 06/05/26 Enterprise Bank
Omaha, NE
09/27/23 Certificate of Deposit n/a 0.85% 4.99% 249,000 (4,355) 244,645 245,995 1,350 06/24/26 First Financial Bank
Dakota Dunes, SD
09/27/23 Certificate of Deposit n/a 3.15% 5.11% 249,000 (2,306) 246,694 248,395 1,701 06/30/26 UBS Bank USA
Salt Lake City, UT
05/19/21 Certificate of Deposit n/a 0.90% 0.90% 245,000 n/a 245,000 241,685 (3,315) 03/10/26 | Item E2 | Attachment 1

MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/ COST OF MARKET UNREALIZED DATE (ISSUER) DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT) INVESTMENT VALUE GAIN / (LOSS) City of Atascadero
Investment Report
December 31, 2025
07/01/26 New York Community Bank
Hicksville, NY
06/29/21 Certificate of Deposit n/a 0.85% 0.85% 245,000 $ n/a 245,000 $ 241,619 $ (3,381) $ 07/20/26 Southern Bancorp Bank
Arkadelphia, AR
01/19/24 Certificate of Deposit n/a 4.00% 4.00% 249,000 n/a 249,000 249,498 498 07/22/26 Toyota Financial Savings Bank
Henderson, NV
07/22/21 Certificate of Deposit n/a 0.95% 0.95% 245,000 n/a 245,000 241,379 (3,621) 08/01/26 Rancho Adobe Fire Protection
CUSIP #752096AE7
10/14/21 Municipal Security Aa 1.43% 1.25% 260,000 272 260,272 256,474 (3,798) 08/03/26 Bridgewater Bank
St. Louis Pk, MN
11/03/23 Certificate of Deposit n/a 5.15% 5.15% 248,000 n/a 248,000 250,202 2,202 08/13/26 Synchrony Bank
Draper, UT
08/13/21 Certificate of Deposit n/a 0.90% 0.90% 245,000 n/a 245,000 240,940 (4,060) 08/15/26 Dallas TX Ind School District
CUSIP #235308D83
05/09/24 Municipal Security Aaa 4.00% 4.86% 150,000 (746) 149,254 150,305 1,051 08/15/26 El Paso TX
CUSIP #283734Y21
05/09/24 Municipal Security Aa 4.93% 4.93% 110,000 (2,553) 107,447 108,259 812 09/24/26 Federal National Mortgage Assn
CUSIP #3135G0Q22
09/24/21 Government Security Aaa 1.88% 0.80% 500,000 3,931 503,931 493,870 (10,061) 09/29/26 First Bank Richmond
Richmond, IN
09/29/21 Certificate of Deposit n/a 0.55% 0.55% 245,000 n/a 245,000 239,605 (5,395) 10/01/26 California Infrastructure Bonds
CUSIP #13034AL73
10/05/22 Municipal Security AAA 1.04% 4.69% 155,000 (4,130) 150,870 152,080 1,210 10/01/26 Manteca Redevelopment Bonds
CUSIP #56453RBA1
10/05/22 Municipal Security AA 2.04% 4.81% 115,000 (2,319) 112,681 113,552 871 10/13/26 Federal Agricultural Mtge Corp
CUSIP #31424WAN2
11/08/23 Government Security n/a 5.00% 4.77% 700,000 1,231 701,231 707,084 5,853 10/31/26 US Treasury Notes
CUSIP #912828YQ7
11/23/22 Government Security Aaa 1.63% 4.07% 250,000 (4,952) 245,048 246,035 987 11/17/26 Capital One Bank
Glen Allen, VA
11/17/21 Certificate of Deposit n/a 1.10% 1.10% 245,000 n/a 245,000 239,779 (5,221) 11/17/26 Capital One National
McLean, VA
11/17/21 Certificate of Deposit n/a 1.10% 1.10% 245,000 n/a 245,000 239,779 (5,221) 11/17/26 Federal Agricultural Mtge Corp
CUSIP #31422XPS5
09/27/23 Government Security n/a 1.15% 4.86% 500,000 (15,769) 484,231 488,615 4,384 12/21/26 Federal Home Loan Bank
CUSIP #3130AQF65
12/30/21 Government Security Aaa 1.25% 1.26% 500,000 (36) 499,964 489,205 (10,759) 03/10/26 | Item E2 | Attachment 1

MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/ COST OF MARKET UNREALIZED DATE (ISSUER) DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT) INVESTMENT VALUE GAIN / (LOSS) City of Atascadero
Investment Report
December 31, 2025
12/28/26 Federal Farm Credit Bank
CUSIP #3133EJ4E6
01/18/22 Government Security Aaa 3.13% 1.58% 200,000 $ 3,030 $ 203,030 $ 199,136 $ (3,894) $ 12/31/26 Bank Kremlin
Kremlin, OK
12/31/21 Certificate of Deposit n/a 1.05% 1.05% 245,000 n/a 245,000 238,919 (6,081) 01/15/27 San Joaquin Hills Trans Agency
CUSIP # 798111HF0
01/19/22 Municipal Security A2 2.15% 1.88% 500,000 1,387 501,387 492,290 (9,097) 01/19/27 First Foundation Bank
Irvine, CA
10/25/23 Certificate of Deposit n/a 4.70% 5.05% 230,000 (806) 229,194 232,500 3,306 01/28/27 First Bank Hamilton
Hamilton, NJ
07/28/25 Certificate of Deposit n/a 3.95% 3.95% 245,000 n/a 245,000 245,813 813 02/10/27 Federal Agriculture Mtge Corp
CUSIP #31422XTX0
02/17/22 Government Security n/a 1.60% 1.96% 550,000 (2,161) 547,839 538,351 (9,488) 02/17/27 Beal Bank USA
Las Vegas, NV
02/23/22 Certificate of Deposit n/a 1.90% 1.90% 245,000 n/a 245,000 240,419 (4,582) 02/23/27 Sallie Mae Bank
Salt Lake City, UT
10/13/22 Certificate of Deposit n/a 2.20% 4.17% 184,000 (4,025) 179,975 181,080 1,105 03/01/27 Sonoma Marin Area Rail Transit
CUSIP #835588BA1
12/07/22 Municipal Security AA 1.73% 4.45% 500,000 (15,267) 484,733 487,950 3,217 03/12/27 Federal Home Loan Bank
CUSIP #3130A3DU5
03/17/22 Government Security Aaa 3.00% 2.20% 500,000 4,691 504,691 496,810 (7,881) 03/16/27 American Express Nat'l Bank
Sandy, UT
03/16/22 Certificate of Deposit n/a 2.00% 2.00% 245,000 n/a 245,000 240,374 (4,626) 03/17/27 Beal Bank
Plano, TX
03/23/22 Certificate of Deposit n/a 2.00% 2.00% 245,000 n/a 245,000 239,943 (5,057) 04/12/27 Bank of America
National Association
04/10/25 Certificate of Deposit n/a 4.00% 4.00% 245,000 n/a 245,000 246,164 1,164 04/14/27 Comenity Capital Bank
Draper, UT
04/14/22 Certificate of Deposit n/a 2.65% 2.65% 245,000 n/a 245,000 242,011 (2,989) 04/30/27 US Treasury Notes
CUSIP # 91282CEN7
01/18/23 Government Security Aaa 2.75% 3.64% 1,000,000 (11,475) 988,525 990,310 1,785 05/01/27 LA Unified School District
CUSIP # 544646A77
05/11/22 Municipal Security Aa3 5.72% 3.81% 500,000 12,440 512,440 511,240 (1,200) 05/15/27 US Treasury Notes
CUSIP #912828X88
05/24/22 Government Security Aaa 2.38% 2.87% 500,000 (3,252) 496,748 492,460 (4,288) 06/09/27 Federal Home Loan Bank
CUSIP #3130A5JU4
06/22/22 Government Security Aaa 3.04% 3.43% 200,000 (1,070) 198,930 198,852 (78) 03/10/26 | Item E2 | Attachment 1

MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/ COST OF MARKET UNREALIZED DATE (ISSUER) DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT) INVESTMENT VALUE GAIN / (LOSS) City of Atascadero
Investment Report
December 31, 2025
06/11/27 Federal Home Loan Bank
CUSIP #3130ASGU7
06/22/22 Government Security Aaa 3.50% 3.41% 200,000 $ 270 $ 200,270 $ 199,738 $ (532) $ 06/15/27 Federal Farm Credit Bank
CUSIP #3133EHNR0
06/22/22 Government Security Aaa 2.58% 3.43% 480,000 (5,706) 474,294 473,530 (764) 07/01/27 Sequoia CA Union High
CUSIP #817409N50
05/10/23 Municipal Security AA1 1.95% 4.20% 350,000 (11,300) 338,700 341,957 3,257 07/16/27 Federal Farm Credit Bank
CUSIP #3133EAXT0
07/26/22 Government Security Aaa 2.75% 2.98% 135,000 (459) 134,541 133,392 (1,149) 07/20/27 Federal Farm Credit Bank
CUSIP #3133ELV92
10/25/23 Government Security Aaa 0.77% 4.86% 500,000 (30,154) 469,846 479,695 9,849 08/01/27 Corona Norco Ca Unif Sch Dist
CUSIP # 219764SB4
08/04/22 Municipal Security AA- 2.30% 3.63% 250,000 (5,072) 244,928 244,835 (93) 08/01/27 Escondido CA Unif Sch Dist
CUSIP # 2963871UV7
08/05/22 Municipal Security AA2 1.13% 3.53% 100,000 (3,658) 96,342 96,115 (227) 08/01/27 Martinez CA Uni Sch Dist
CUSIP # 573428MN6
08/04/22 Municipal Security AA 1.26% 3.43% 250,000 (8,271) 241,729 240,783 (947) 08/01/27 San Marcos CA Uni Sch Dist
CUSIP # 798755GC2
08/05/22 Municipal Security AA 2.31% 3.68% 185,000 (3,852) 181,148 181,139 (9) 08/01/27 Southwestern Comm College
CUSIP # 845389LS2
08/04/22 Municipal Security AA- 1.53% 3.53% 155,000 (4,720) 150,280 149,852 (428) 08/26/27 Federal Agriculture Mtge Corp
CUSIP #31422XF23
09/02/22 Government Security n/a 3.20% 3.49% 500,000 (2,295) 497,705 497,385 (320) 09/15/27 Luminate Bank
Minnetonka, MN
09/15/22 Certificate of Deposit n/a 3.40% 3.40% 245,000 n/a 245,000 243,905 (1,095) 09/15/27 Ponce de Leon Fed Bank
Bronx, NY
09/15/22 Certificate of Deposit n/a 3.50% 3.50% 245,000 n/a 245,000 244,309 (691) 09/15/27 University of Pittsburgh
CUSIP # 798755GC2
09/15/22 Municipal Security AA+ 3.18% 3.81% 500,000 (5,150) 494,850 495,975 1,125 10/08/27 Federal National Mortgage Assn
CUSIP #3135G05Y5
10/12/22 Government Security Aaa 0.75% 4.12% 1,000,000 (56,953) 943,047 953,340 10,293 10/31/27 US Treasury Notes
CUSIP # 91282CAU5
11/09/22 Government Security Aaa 0.50% 4.31% 600,000 (39,897) 560,103 568,524 8,421 11/15/27 Tulare CA Sewer Rev
CUSIP #899124MH1
04/12/23 Municipal Security AA 1.93% 4.47% 325,000 (14,680) 310,320 314,158 3,838 11/15/27 US Treasury Notes
CUSIP # 9128283F5
12/07/22 Government Security Aaa 2.25% 3.79% 500,000 (13,766) 486,234 488,905 2,671 03/10/26 | Item E2 | Attachment 1

MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/ COST OF MARKET UNREALIZED DATE (ISSUER) DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT) INVESTMENT VALUE GAIN / (LOSS) City of Atascadero
Investment Report
December 31, 2025
12/01/27 Federal Agricultural Mtge Corp
CUSIP #31422XR95
10/20/23 Government Security n/a 4.03% 5.04% 500,000 $ (9,102) $ 490,898 $ 503,515 $ 12,617 $ 12/15/27 Forbright Bank
Potomac, MD
12/15/22 Certificate of Deposit n/a 4.00% 4.00% 245,000 n/a 245,000 246,384 1,384 12/16/27 Community West Bank NA
Goleta, CA
12/16/22 Certificate of Deposit n/a 4.00% 4.00% 245,000 n/a 245,000 246,384 1,384 01/12/28 Inter-American Dev Bank
CUSIP # 4581X0EH7
01/19/23 Supranational Security Aaa 4.00% 3.70% 1,000,000 5,869 1,005,869 1,008,160 2,291 02/10/28 First National Bk of Michigan
Kalamazoo, MI
02/10/23 Certificate of Deposit n/a 3.70% 3.70% 249,000 n/a 249,000 248,928 (72) 02/15/28 Belmont Bank & Trust
Chicago, IL
02/15/23 Certificate of Deposit n/a 3.75% 3.75% 249,000 n/a 249,000 249,177 177 02/15/28 US Treasury Notes
CUSIP # 9128283W8
02/01/23 Government Security Aaa 2.75% 3.64% 500,000 (9,043) 490,957 492,460 1,503 02/17/28 Vision Bank
St. Louis, MN
02/17/23 Certificate of Deposit n/a 3.75% 3.75% 249,000 n/a 249,000 249,174 174 03/10/28 Federal Home Loan Bank
CUSIP # 3130ATS57
03/15/23 Government Security Aaa 4.50% 3.90% 600,000 7,501 607,501 612,546 5,045 03/17/28 Affinity Bank
Covington, GA
03/17/23 Certificate of Deposit n/a 4.90% 4.90% 245,000 n/a 245,000 251,118 6,118 03/20/28 Bank Five Nine
Oconomowoc, WI
03/20/23 Certificate of Deposit n/a 4.65% 4.65% 245,000 n/a 245,000 249,834 4,834 04/01/28 California State Bonds-GO
CUSIP #13063DGC6
04/12/23 Municipal Security AA 3.50% 3.98% 525,000 (5,347) 519,653 523,761 4,108 04/01/28 California State Bonds-Taxable
CUSIP #13063DGC6
04/12/23 Municipal Security AA 3.50% 3.98% 150,000 (1,528) 148,472 149,646 1,174 04/06/28 Morgan Stanley Bank
Salt Lake City, UT
09/28/23 Certificate of Deposit n/a 4.65% 4.69% 244,000 (201) 243,799 248,807 5,008 05/12/28 Central Bank
Little Rock, AR
05/12/23 Certificate of Deposit n/a 3.85% 3.85% 249,000 n/a 249,000 250,496 1,496 05/16/28 CIBC Bank
Chicago, IL
05/16/23 Certificate of Deposit n/a 4.35% 4.35% 244,000 n/a 244,000 247,375 3,375 05/16/28 Univest Bank & Trust
Souderton, PA
05/16/23 Certificate of Deposit n/a 4.40% 4.40% 249,000 n/a 249,000 252,760 3,760 05/30/28 Idaho First Bank
McCall, ID
05/30/23 Certificate of Deposit n/a 4.20% 4.20% 245,000 n/a 245,000 252,568 7,568 03/10/26 | Item E2 | Attachment 1

MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/ COST OF MARKET UNREALIZED DATE (ISSUER) DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT) INVESTMENT VALUE GAIN / (LOSS) City of Atascadero
Investment Report
December 31, 2025
05/31/28 Customers Bank
Phoenixville, PA
05/31/23 Certificate of Deposit n/a 4.45% 4.45% 244,000 $ n/a 244,000 $ 251,388 $ 7,388 $ 06/09/28 Federal Home Loan Bank
CUSIP #3130AEB25
06/20/23 Government Security AA+ 3.25% 4.03% 170,000 (3,044) 166,956 168,989 2,033 06/30/28 Federal Home Loan Bank
CUSIP #3130AWN63
08/03/23 Government Security Aaa 4.00% 4.33% 500,000 (3,870) 496,130 506,420 10,290 07/06/28 HSBC Bank USA
McLean, VA
07/18/23 Certificate of Deposit n/a 3.30% 4.57% 249,000 (7,535) 241,465 245,950 4,485 07/24/28 Valley National Bank
Passaic, NJ
07/22/25 Certificate of Deposit n/a 4.00% 4.00% 245,000 n/a 245,000 246,450 1,450 07/26/28 Park State Bank
Duluth, MN
07/26/23 Certificate of Deposit n/a 4.45% 4.45% 249,000 n/a 249,000 253,263 4,263 07/31/28 Medallion Bank
Salt Lake City, UT
07/31/23 Certificate of Deposit n/a 4.40% 4.40% 249,000 n/a 249,000 252,999 3,999 08/01/28 New York City Transitional Fin Auth
CUSIP #64971XBN7
08/16/23 Municipal Security Aa1 4.90% 4.90% 850,000 (35,797) 814,203 836,400 22,197 08/17/28 United Fidelity Bank FBS
Evansville, IN
09/13/23 Certificate of Deposit n/a 4.50% 4.50% 249,000 n/a 249,000 253,636 4,636 09/05/28 Discover Bank
Greenwood, DE
09/07/23 Certificate of Deposit n/a 4.55% 4.55% 244,000 n/a 244,000 248,970 4,970 09/13/28 Optum Bank Inc
Draper, UT
09/13/23 Certificate of Deposit n/a 4.55% 4.55% 244,000 n/a 244,000 248,885 4,885 09/21/28 Merrick Bank
South Jordan, UT
09/21/23 Certificate of Deposit n/a 4.50% 4.50% 249,000 n/a 249,000 253,746 4,746 09/27/28 Legacy Bank & Trust
Mountain Grove, MO
09/27/23 Certificate of Deposit n/a 4.50% 4.50% 249,000 n/a 249,000 253,766 4,766 09/29/28 Star Bank
Maple Lake, MN
09/29/23 Certificate of Deposit n/a 4.65% 4.65% 244,000 n/a 244,000 249,568 5,568 10/17/28 Southern First Bank
Greensville, SC
10/26/23 Certificate of Deposit n/a 4.85% 4.85% 244,000 n/a 244,000 251,415 7,415 10/23/28 Federal Home Loan Bank
CUSIP #3130AXLQ9
10/25/23 Government Security Aaa 5.03% 4.89% 500,000 1,788 501,788 518,475 16,687 10/27/28 Iowa State Bank
Clarksville, IA
10/27/23 Certificate of Deposit n/a 4.70% 4.70% 249,000 n/a 249,000 255,190 6,190 11/14/28 Wells Fargo Bank
Sioux Falls, SD
11/14/23 Certificate of Deposit n/a 5.05% 5.05% 248,000 n/a 248,000 256,593 8,593 03/10/26 | Item E2 | Attachment 1

MATURITY DESCRIPTION PURCHASE INVESTMENT INVESTMENT STATED FACE PREMIUM/ COST OF MARKET UNREALIZED DATE (ISSUER) DATE TYPE RATING % RATE YIELD VALUE (DISCOUNT) INVESTMENT VALUE GAIN / (LOSS) City of Atascadero
Investment Report
December 31, 2025
11/16/28 Federal Home Loan Bank
CUSIP #3130AFFX0
12/12/23 Government Security Aaa 3.25% 4.29% 500,000 $ (13,909) $ 486,091 $ 497,125 $ 11,034 $ 12/01/28 Sulphur Springs CA Uni Sch District
CUSIP #865485EL6
12/07/23 Municipal Security A2 1.97% 4.58% 110,000 (7,733) 102,267 103,905 1,638 12/04/28 Federal Agricultural Mtge Corp
CUSIP #31424WCR1
12/12/23 Government Security n/a 4.38% 4.33% 750,000 874 750,874 765,090 14,216 12/04/28 Federal Farm Credit Bank
CUSIP #3133EHZ48
05/08/24 Government Security Aaa 2.77% 4.49% 194,000 (9,085) 184,915 189,344 4,429 01/05/29 San Joaquin Hills CA
CUSIP #798111HH6
11/24/25 Municipal Security n/a 3.80% 3.80% 500,000 (18,565) 481,435 480,540 (895) 01/18/29 Federal Farm Credit Bank
CUSIP #3133EPW84
01/19/24 Government Security AA+ 3.88% 4.04% 750,000 (3,468) 746,532 757,538 11,006 01/26/29 Old Dominion National Bank
North Garden, VA
01/26/24 Certificate of Deposit n/a 3.85% 3.85% 249,000 n/a 249,000 249,451 451 01/26/29 Parkside Financial Bank
Clayton, MO
01/26/24 Certificate of Deposit n/a 3.85% 3.85% 249,000 n/a 249,000 249,451 451 02/13/29 Federal Farm Credit Bank
CUSIP #3133EP3B9
02/14/24 Government Security AA+ 4.13% 4.28% 1,250,000 (5,428) 1,244,572 1,269,938 25,366 03/09/29 Federal Home Loan Bank
CUSIP #3130AVBD3
04/10/24 Government Security AA+ 4.50% 4.47% 1,000,000 751 1,000,751 1,027,720 26,969 04/10/29 Federal Farm Credit Bank
CUSIP #3133ERAK7
04/17/24 Government Security AA+ 4.38% 4.71% 1,000,000 (9,984) 990,016 1,024,110 34,094 05/01/29 Pasadena CA Ref Taxable
CUSIP #70227RBQ2
05/03/24 Municipal Security Aaa 2.30% 4.95% 330,000 (26,634) 303,366 313,101 9,735 05/15/29 Federal National Mortgage Assn
CUSIP #31359MEU3
05/16/24 Government Security AA+ 6.25% 4.36% 750,000 43,990 793,990 812,460 18,470 06/08/29 Federal Home Loan Bank
CUSIP #3130B1BC0
06/11/24 Government Security Aaa 4.63% 4.49% 1,000,000 4,118 1,004,118 1,032,850 28,732 06/12/29 Morgan Stanley Private Bank
National Association
06/12/24 Certificate of Deposit n/a 4.70% 4.70% 244,000 n/a 244,000 250,956 6,956 07/05/29 Federal Farm Credit Bank
CUSIP #3133ERKJ9
07/11/24 Government Security Aaa 4.38% 4.18% 1,000,000 6,244 1,006,244 1,022,130 15,886 07/17/29 BNY Mellon
National Association
07/17/24 Certificate of Deposit n/a 4.15% 4.15% 244,000 n/a 244,000 246,635 2,635 08/01/29 Federal Farm Credit Bank
CUSIP #3133ERNC1
08/14/24 Government Security Aaa 4.13% 3.66% 1,000,000 15,598 1,015,598 1,017,040 1,442 03/10/26 | Item E2 | Attachment 1

City of Atascadero
Investment Report
December 31, 2025

MATURITY
DATE

DESCRIPTION
(ISSUER)

PURCHASE
DATE

INVESTMENT
TYPE

PREMIUM/
(DISCOUNT)

INVESTMENT
RATING
STATED
% RATE
FACE
VALUE

COST OF

INVESTMENT
MARKET
VALUE

UNREALIZED

GAIN / (LOSS) YIELD
09/01/29 California State
CUSIP #13063EBP0
09/18/24 Municipal Security Aa2 5.13% 3.59% $ 500,000 $ 26,192 $ 526,192 $ 523,065 $ (3,127) 10/01/29 California ST
CUSIP #13063DRE0
07/16/25 Municipal Security Aa2 2.50% 4.11% 235,000 (13,029) 221,971 224,637 2,666 11/26/29 Goldman Sachs Bank
New York, NY
11/25/25 Certificate of Deposit Aa 2.47% 3.77% 245,000 n/a 245,000 244,833 (167) 01/31/30 US Treasury Notes
CUSIP #91282CMG3
02/21/25 Government Security Aaa 4.25% 4.32% 1,000,000 (2,415) 997,585 1,022,230 24,645 01/31/30 US Treasury Notes
CUSIP #91282CMG3
03/12/25 Government Security Aaa 4.25% 3.97% 1,000,000 10,399 1,010,399 1,022,230 11,831 03/31/30 US Treasury Notes 04/09/25
CUSIP #91282CGS4
Government Security Aaa 3.63% 3.86% 1,000,000 (9,190) 990,810 998,130 7,320 04/30/30 US Treasury Notes
CUSIP #91282CGZ8
05/07/25 Government Security Aaa 3.50% 3.91% 1,000,000 (16,221) 983,779 992,770 8,991 07/01/30 Florida St Board
CUSIP #341271AF1
11/19/25 Municipal Security Aa2 2.15% 3.90% 500,000 (35,710) 464,290 460,055 (4,235) 07/25/30 Security Bank
Paris,TN
07/25/25 Certificate of Deposit n/a 3.85% 3.85% 245,000 n/a 245,000 244,804 (196) 08/01/30 Tennessee Valley Authority
CUSIP #880591FE7
11/19/25 Government Security Aal 3.88% 3.74% 500,000 2,764 502,764 502,200 (564) Total Funds Managed by the City 63,899,683 (378,852) 63,520,831 63,923,375 402,543 Funds Managed by Fiscal Agent or Trustee
n/a n
Aa2
/a Bond Funds $ BNY Western Trust- 2024 Bonds
Trustee
n/a 0.00% 23,482 n/a $ 23,482 $ 23,482 $
n/a BNY Mellon - 2025 Bonds Aa2
Trustee
n/a Bond Funds n/a 0.00% 3,080,460 n/a 3,080,460 3,080,460 Guaranteed Investment
n/a Toronto-Dominion Bank - 2025 Bonds n/a Contract Aa3 3.73% 3.73% 27,086,899 n/a 27,086,899 27,086,899 Total Funds Managed by Fiscal Agent 30,190,841 30,190,841 30,190,841 $ 94,090,524 $ (378,852) $ 93,711,672 $ 94,114,216 $ 402,543 Average Maturity of Total Portfolio 691Days
Weighted Average Yield of Total Portfolio 3.7%
Certification:

It has been verified that this investment portfolio is in conformity with the City of Atascadero's investment policy, which was approved by the City Council on October 22, 2024.

The City Treasurer certifies that there is sufficient liquidity to meet the City of Atascadero's estimated future expenditures for a period of sixjnonths.

Cynthia Chavez^Deputy Directorof Administrative Services Verified by :

Jeri Rangel - City Treasurer
Approved by:
03/10/26 | Item E2 | Attachment 1

City of Atascadero
Investments by Type
December 2025
Investment December 2025
LAIF $ 10,347,204
Money Market 1,089,479
Certificates of Deposit 15,033,695
Government Securities 27,976,797
Municipal Securities 8,067,787
Supranational Securities 1,005,869
Cash with Fiscal Agents 30,190,841
$ 93,711,672
LAIF
11%
Money Market
1%
Certificates of
Deposit
16%
Government
Securities
30%
Municipal Securities
9%
Supranational
Securities
1%
Cash with Fiscal
Agents
32%
03/10/26 | Item E2 | Attachment 1

City of Atascadero
Investments by Maturity *
December 2025
Investment December 2025
On Demand $ 11,436,683
Within One Month 735,000
One Month to One Year 9,987,099
One to Five Years 41,362,049
$ 63,520,831
* Cash with fiscal agent is not included in the totals for this graph because the amounts are restricted based on bond covenants, and therefore, the City doesn't retain the option to liquefy these funds at will.

On Demand
18%
Within One Month
1%
One Month to One Year
16%
One to Five Years
65%
03/10/26 | Item E2 | Attachment 1

City of Atascadero
Investments by Custodial Agent
December 2025
Custodial Agent December 2025
State of California $ 10,347,204
US Bank 52,084,148
Bank of New York 3,103,942
Mechanics Money Market 1,089,479
Toronto-Dominion Bank 27,086,899
$ 93,711,672
State of California
11%
US Bank
56%
Bank of New York
3%
Mechanics Money
Market
1%
Toronto-Dominion
Bank
29%
03/10/26 | Item E2 | Attachment 1

City of Atascadero
Investment Yield vs. 2-Year Treasury Yield
For the Quarter Ended December 31, 2025
City Yield
2-Yr Treasury
Weighted
Portfolio Yield
December 2023 3.12% 3.10%
March 2024 3.23% 3.20%
June 2024 3.68% 3.67%
September 2024 3.53% 3.39%
December 2024 3.52% 3.48%
March 2025 3.69% 3.67%
June 2025 3.76% 3.73%
September 2025 3.69% 3.63%
December 2025 3.70% 3.63%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%
City Yield 2-Yr Treasury Weighted Portfolio Yield
03/10/26 | Item E2 | Attachment 1

CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item E3
Department: Public Works
Date: 03/10/26
Placement: Consent
TO: JAMES R. LEWIS, CITY MANAGER
FROM: NICK DE BAR, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER PREPARED BY: RYAN HAYES, DEPUTY DIRECTOR OF PUBLIC WORKS SUBJECT: Old Morro Road Functional Classification Change RECOMMENDATION:

Council adopt Draft Resolution approving the submittal of a functional classification change request for Old Morro Road to Caltrans.

DISCUSSION:

Old Morro Road is an approximately 20’ wide City owned and maintained two lane road, extending 1.76 miles between its eastern and western intersections with Highway 41 in west Atascadero. Originally constructed in 1915, large sections of Old Morro Road were reconstructed later as part of what is currently Highway 41. However, there are several segments of the original roadway which remain, including Old Morro Road.

Old Morro Road is classified as a local street, both in the Atascadero General Plan and on the Caltrans Functional Classification Map, since it normally serves as access for a limited number of homes and has low average daily traffic volumes. The existing roadway surface is in poor condition, and there are also a number of locations with subgrade stability issues, including a small portion which has been reduced to a single lane due to a slope failure in 2023. As a result, Old Morro Road is scheduled to be rehabilitated as part of the 2030 F-14 Pavement Rehabilitation Project.

Despite these planned repairs, the area geology and original construction method of Old Morro Road will continue to leave it vulnerable to natural disasters like earthquakes and large storms.

Although Old Morro Road is classified as a local road and normally sees limited traffic, when vehicular accidents or other conditions require the closure of the parallel segment of Highway 41 that contains the steep double “S” curves, Old Morro Road becomes the de facto detour route.

Subsequently, maintaining Old Morro Road is critical to providing local and regional traffic access, as well as emergency response.

One of the primary funding sources for roadway repairs resulting from natural disasters is the Federal Highway Administration (FHWA) Emergency Relief Program. This program is administered through Caltrans and roadways considered “on-network” are eligible for funding for damages sustained during declared disasters. In order to be classified as “on-network,” a roadway must have a Caltrans Functional Classification as a “Major Collector.” Due to the importance of Old

03/10/26 | Item E3 | Staff Report
Morro Road as a parallel ingress/egress and emergency access route, the attached draft resolution authorizes submittal of a request to Caltrans to change the functional classification of Old Morro Road from “Local” to “Major Collector.” If granted by Caltrans, this change would make Old Morro Road eligible for FHWA Emergency Relief funding for damages sustained during declared natural disasters. The reclassification would not allow for funding for routine operations and maintenance, or damages sustained that were not associated with a declared natural disaster.

If Council adopts the draft resolution, staff will submit a package to Caltrans requesting a functional classification change, which includes the resolution, roadway map, and a concurrence letter from SLOCOG. The request must then be reviewed and approved by the Caltrans division coordinator, Caltrans headquarters and FHWA. Granting of a new functional classification is not assured but approval by Council to submit the request package to Caltrans is the first step in the process.

ALTERNATIVES TO THE STAFF RECOMMENDATION:

Council may choose to not adopt the resolution. This alternative is not recommended as the functional classification change request process cannot move forward without formal Council authorization.

FISCAL IMPACT:

There are no expected fiscal impacts associated with adoption of this resolution. If the functional classification change is approved by Caltrans and FHWA, Old Morro Road would become eligible for emergency funding during declared natural disasters, potentially saving the City significant costs in the future.

REVIEWED BY OTHERS:

This item has been reviewed by the City Attorney.

REVIEWED AND APPROVED FOR COUNCIL AGENDA
James R. Lewis, City Manager
ATTACHMENT(S):

1. Draft Resolution

03/10/26 | Item E3 | Attachment 1

DRAFT RESOLUTION

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ATASCADERO, CALIFORNIA, APPROVING THE SUBMITTAL OF A

FUNCTIONAL CLASSIFICATION CHANGE FOR OLD MORRO ROAD

TO STATE OF CALIFORNIA, DEPARTMENT OF TRANSPORTATION
WHEREAS, incorporated cities are responsible for initiating requests for changes to the functional classification of streets and roads under their jurisdiction; and

WHEREAS, the City of Atascadero receives State and Federal road improvements and maintenance funding based on street and road designation; and WHEREAS, Old Morro Road serves as a detour for regional and local traffic when the closure of the adjacent State Highway is required; and
WHEREAS, said Functional Classification Change, as presented in Exhibit A, has been reviewed and examined by the City Council of the City of Atascadero.

NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero that it does hereby approve the submittal of a Functional Classification Change for Old Morro Road to the State of California, Department of Transportation.

PASSED AND ADOPTED at a regular meeting of the City Council held on the 10th day of March, 2026.

On motion by Council Member _________ and seconded by Council Member _______, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

CITY OF ATASCADERO
___________________________________
Charles Bourbeau, Mayor
ATTEST:
___________________________________
Lara K. Christensen, City Clerk

EXHIBIT A

OLD MORRO ROAD

FUNCTIONAL CLASSIFICATION CHANGE
SCALE: 1"=1000'
03/10/26 | Item E3 | Attachment 1| Exhibit A

CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item H1
Department: Public Works
Date: 03/10/26
Placement: Management
Report
TO: JAMES R. LEWIS, CITY MANAGER
FROM: NICK DE BAR, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER PREPARED BY: RYAN BETZ, PUBLIC WORKS ANALYST
SUBJECT: Proposed Sewer Service Charge Rate Increase
RECOMMENDATIONS:

Council:

1. Direct staff to administer the Proposition 218 majority protest process and send out notice of the proposed sewer service charge rate increases to all property owners connected to the municipal sanitary sewer system.

2. Set a Public Hearing on May 12, 2026 for the City Council’s consideration of the proposed sewer service charge rate increases.

REPORT IN BRIEF:

The City is proposing to increase sewer service charge rates in order to accommodate the costs of providing wastewater services. Sewer service charges are monthly service charges levied and imposed upon any occupied premises within the City having any sewer connection to the City’s wastewater system. Escalating wastewater costs are due to a number of key factors including, but not limited to, rising treatment (chemicals and technical analysis) and energy costs; impacts of regulation and legislation; and past and continued critical upgrades and replacement of wastewater facilities and infrastructure. Increasing wastewater rates must comply with Proposition 218, which requires certain procedures be followed with regard to “property-related” fee increases imposed by governmental agencies. This report provides an analysis of the rate increases and identifies the procedures to implement the proposed rates.

DISCUSSION:

BACKGROUND
The City of Atascadero provides wastewater collection and treatment service for nearly all commercial and industrial properties, as well as a portion of the City’s residential population.

Sewered parcels are generally within the more urban core of Atascadero, with approximately 2,000 acres of the roughly 15,000 acres within the City boundary connected to the sewer system.

Within this area, there are approximately 5,500 parcels, with the remainder of the City’s population served by private on-site septic systems. Wastewater services are considered a

03/10/26 | Item H1 | Staff Report
community investment that helps ensure public health and safety, economic prosperity, and maximizes land use potential and reasonable development and expansion for businesses, residents and other community buildings. The City of Atascadero assumed ownership and operation of the wastewater collection and treatment system from the Atascadero County Sanitation District in 1982 shortly after incorporation (1979). While there have been upgrades, modifications, and additions to wastewater treatment facilities, the overall process has not changed significantly since 1982 and is considered a stabilization pond treatment system. Such systems are no longer permittable or able to be operated or built as a result of the regulatory environment in California.

WASTEWATER FUNDING
Agencies that provide water and wastewater services customarily use water consumption during winter months as a basis for the year-round sewer service charges at a volumetric rate. In Atascadero, customers connected to the City’s sanitary sewer system are billed a fixed charge for the City’s service to collect and treat the wastewater, which is called a sewer service charge or wastewater service charge. This fixed rate methodology is used since the City is not the water supplier and does not have access to individual customer water consumption data without the customer’s or Atascadero Mutual Water Company’s consent. The fixed charge used by the City is based upon Equivalent Dwelling Units (EDUs), where one EDU is the basis for a single-family residence (SFR) service charge, which is based upon an estimated average daily flow of 240 gallons of wastewater and typical wastewater strength. Other user types are assigned a multiple or fraction of an EDU based upon expected average daily flow and strength of wastewater compared to that of an SFR. For example, an apartment or condo is 0.75 EDUs and charged 0.75 times that of a SFR service charge, and a restaurant with less than 40 seats is four EDUs and charged 4 times that of a SFR service charge. The increased charge for a restaurant or certain other commercial uses is not just based on volume but also on the strength of the wastewater which may include cleaners, other chemical products, and stronger waste materials that impact the treatment process. Currently, there is a total of approximately 8,300 EDUs connected to the City system.

Sewer service charges are collected by placing a levy each year on the property taxes of individual customers, administered by the County of San Luis Obispo. The City provides data to the County including the Assessor’s Parcel Number (APN) and the associated sewer service charge being levied on the property. The charge is included as a line item on the customer’s property tax statements. Revenue from sewer service charges is paid to the City twice each year. Last year Council adopted the current monthly rate of $57.06 per EDU, which went into effect in July 2025.

This rate was calculated as part of the most recent five-year wastewater rate study, which evaluated costs and revenues for Fiscal Years 2026 through 2031. A previous five-year rate study was conducted in 2019, prior to which wastewater rates had remained unchanged since 1994.

WASTEWATER CAPITAL NEEDS
The City’s wastewater system is comprised of two components: wastewater collection and wastewater treatment. The wastewater collection system is the system of pipes, manholes and

03/10/26 | Item H1 | Staff Report
lift stations that convey wastewater from individual properties to the wastewater treatment plant. The Wastewater Treatment Plant, also known as the Water Reclamation Facility (WRF), receives and treats all wastewater from the collection system. The WRF was originally constructed in 1980 and is classified as a stabilized pond treatment system. Such systems are no longer permittable or able to be operated or built as a result of the regulatory environment in California. New state regulations require more stringent effluent discharge parameters, effectively prohibiting the continued use of stabilized pond treatment systems and requiring that the City construct a new secondary treatment system and modernize the plant. In addition to the plant improvements, there are also significant upgrades needed to the collection system to replace aging and undersized infrastructure, including lift station and force main replacement projects.

Facing these challenges, the City Manager established a Task Force on Wastewater (Task Force), a cross-section of stakeholders including residents, business owners and developers to learn more about the wastewater system and discuss meaningful solutions. At the November 12, 2025, Council meeting, staff provided an update on the success of the Task Force efforts and the next steps including moving forward with the design for the WRF improvements and modernization, preparing a Customer User Classification Study and considering a FY 26/27 sewer service charge increase for FY26/27. Black & Veatch is currently working on design for the treatment plant improvements, and HDR is currently working on the Customer User Classification Study which is expected to be completed and presented to Council by late 2026. A preliminary cost estimate for plant improvements is also expected by late 2026 which, along with the new customer classifications, will be used in a new wastewater rate study in early 2027.

WASTEWATER RATE ANALYSIS
The City is dedicated to keeping rates low by maintaining lean staffing levels, absorbing increasing operational and maintenance costs, and using reserves when necessary. Tuckfield & Associates, an independent financial consultant, completed a comprehensive wastewater rate study for the City’s wastewater enterprise in April 2025. This study analyzed the City’s wastewater services, wastewater enterprise revenue and revenue requirements, and current rate structure. The study also analyzed and determined the cost of providing wastewater services and their corresponding impacts to customers’ bills. This analysis identified several key factors that result in the proposed rates. These key factors include, but are not limited to:
• Rising treatment and energy costs
• Impacts of regulation and legislation
• Past and continued critical upgrades and/or replacement of wastewater facilities and infrastructure
Based upon this analysis, the wastewater rate study recommends annual increases of 18.5% over the next several yearsto fund the WRF design, operations and maintenance and emergency work in the collection system. Staff recognize that future rate increases, principally related to the investment for the WRF Retrofit and Secondary Treatment Improvement project, will be necessary and the subject of discussion over the upcoming year while working on a

03/10/26 | Item H1 | Staff Report
comprehensive implementation plan. The current monthly sewer service charge of $57.06 per EDU (equivalent to a single-family residence) is proposed to increase by $10.54 for a total monthly rate of $67.60 in FY26/27. The table on the next page shows the current and proposed FY26/27 sewer service charges for the various connection user categories. The proposed increase for the City of Atascadero was compared to neighboring communities in San Luis Obispo County as of January 2026 and is below the median in San Luis Obispo County. While rates would remain below the median over the next several years, major required capital improvements will likely move Atascadero’s rates above the median in future years.

Current Proposed1
Residential Fixed Charges
Single Family 1.00 Dwelling Unit $ 57.06 $ 67.60
Apartment, Condo 0.75 Dwelling Unit $ 42.79 $ 50.70
Mobile Home 0.60 Spaces $ 34.23 $ 40.56
Senior Apartment Unit 0.35 Dwelling Unit $ 19.97 $ 23.66 Non-Residential Fixed Charges $ -
Financial Institutions 2.00 Unit $ 114.12 $ 135.20
Bars 1.50 Unit $ 85.59 $ 101.40
Carwash 7.50 Unit $ 427.94 $ 507.00
Churches/Meeting Halls $ -
< 150 seats 1.33 Seats $ 75.89 $ 89.91
150 to 250 seats 2.66 Seats $ 151.77 $ 179.82
> 250 seats 3.00 Seats $ 171.17 $ 202.80
Commercial Unit 1.00 Unit $ 57.06 $ 67.60
Funeral Home 9.00 Unit $ 513.52 $ 608.40
Gas Station 2.00 Unit $ 114.12 $ 135.20
Grocery Store > 10,000 sq. ft. 8.00 1,000 sq. ft. $ 456.46 $ 540.80 Gymnasium 10.00 Unit $ 570.58 $ 676.00
Laundry 9.00 Unit $ 513.52 $ 608.40
Motel (per room) 0.33 Room $ 18.83 $ 22.31
Office Unit 1.00 Unit $ 57.06 $ 67.60
Rest Home (per bed) 0.35 Bed $ 19.97 $ 23.66
Restaurants $ -
< 40 seats 4.00 Seats $ 228.23 $ 270.40
40 to 60 seats 6.00 Seats $ 342.35 $ 405.60
61 to 100 seats 8.00 Seats $ 456.46 $ 540.80
> 100 seats 10.00 Seats $ 570.58 $ 676.00
Schools (per student enrolled on March. 1) 0.05 Student $ 2.86 $ 3.38 Theater 4.00 Unit $ 228.23 $ 270.40
Veterinarians 3.00 Unit $ 171.17 $ 202.80
Unlisted Uses21.00 Unit $ 57.06 $ 67.60

CURRENT AND PROPOSED MONTHLY SEWER SERVICE CHARGES
Classification Description
EDU3
Multiple
Unit of
Measure
Monthly Rate
2 Unlisted uses are determined by use of fixture units from the California Plumbing Code or as by means deemed appropriate by the City Engineer.
3 EDU = Equivalent Dwelling Unit is the average daily peak flow and strength of wastewater discharge from single family residence (240 gallons per day with BOD5=250 ml/L and SS=250 ml/L). 1 Proposed Rates effective July 1, 2026

03/10/26 | Item H1 | Staff Report
PROPOSITION 218 PROCESS
Sanitary sewer rate increases must follow the Proposition 218 majority protest process that requires certain procedures be followed regarding “property-related” fee increases imposed by governmental agencies. Those rate increases are subject to a “majority protest” process that provides if a majority of the parcels subject to the City fee protest the proposed rate increase, the City cannot impose the increase.

Proposition 218 requires that the City provides all properties receiving the sewer service for which the fee is charged with a minimum of 45 days’ written notice prior to the City Council holding a Public Hearing on a proposed rate increase. The property owners (and record owners) have the ability to "protest" the proposed rate increase until the close of the Public Hearing. If a majority of the parcels file written protests with the City prior to the closure of the Public Hearing, the Proposition states that the City cannot implement the proposed increase. If a majority of parcels do not protest the proposed increase, the City Council has the authority to implement the proposed rate increase.

The majority protest process is part of the California Constitution (Article XIIID), and it is mandatory that the City adhere to this voter-enacted process. As reference, the specific relevant text from Proposition 218 is included below:

ARTICLE 13D (ASSESSMENT AND PROPERTY-RELATED FEE REFORM) SEC. 6. Property Related Fees and Charges. (a) Procedures for New or Increased Fees and Charges. An agency shall follow the procedures pursuant to this section in imposing or increasing any fee or charge as defined pursuant to this article, including, but not limited to, the following:
(1) The parcels upon which a fee or charge is proposed for imposition shall be identified. The amount of the fee or charge proposed to be imposed upon each parcel shall be calculated. The agency shall provide written notice by mail of the proposed fee or charge to the record owner of each identified parcel upon which the fee or charge is proposed for imposition, the amount of the fee or charge proposed to be imposed upon each, the basis upon which the amount of the proposed fee or charge was calculated, the reason for the fee or charge, together with the date, time, and location of a public hearing on the proposed fee or charge. (2) The agency shall conduct a public hearing upon the proposed fee or charge not less than 45 days after mailing the notice of the proposed fee or charge to the record owners of each identified parcel upon which the fee or charge is proposed for imposition. At the public hearing, the agency shall consider all protests against the proposed fee or charge. If written protests against the proposed fee or charge are presented by a majority of owners of the identified parcels, the agency shall not impose the fee or charge.

The City levies the sewer service charges to property taxes, and the parcel owner is billed by the County twice annually, with one-half of the total being due with each bill. Every party listed on the parcel ownership will be mailed a notice. However, the City is only required to count one

03/10/26 | Item H1 | Staff Report
protest per parcel. Accordingly, even if all parties listed on an individual parcel file a protest, only one protest shall be counted for purposes of determining whether there is a majority protest.

Listed on the table below is the proposed schedule to implement the proposed rates:

Target Dates Description
March 10, 2026 City Council reviews proposed rates; directs staff to administer the Proposition 218 process; sets public hearing
March 11-27, 2026 Authorize printing/mailing vendor to proceed with mailings March 28, 2026 or before Mail Notices to wastewater parcel (and record) owners March 28 – May 12, 2026 45-day protest period requirement May 12, 2026 Public Hearing and Protest Results; Council adopts New Rates May 26, 2026 Council adopts Resolution to levy sewer service charges July 1, 2026 New rates become effective (30+ days after adoption of new rates) mid-July 2026 The County deadline to levy sewer service charges to property tax rolls has not been released
In accordance with Title 7, Chapter 10 of the Municipal Code, the wastewater rates are adopted by resolution.

CONCLUSION
The City has operated the wastewater collection and treatment systems in a very economical manner for nearly 45 years with only eight increases in sewer service rates during that time. The sewer service rates have not kept up with the increasing costs of maintaining, operating and replacing the wastewater collection and treatment systems. The 2025 rate study shows that the City will have to continue to increase the sewer service rates in order to continue operating and replacing the existing system. This proposed rate increase is the second of the five proposed rate increases intended to phase in the necessary higher sewer service rates needed to align revenues and expenses in the wastewater system. After further study and more information from the WRF design consultant, additional increases are anticipated.

ALTERNATIVES TO THE STAFF RECOMMENDATION:

Council may reject staff recommendations and not pursue sewer service rate increases or may decide to pursue a lower rate increase than that recommended. Staff does not recommend this alternative since the proposed sewer rate increase is critically needed to meet increased costs and make improvements to the wastewater system.

FISCAL IMPACT:

Administering the Proposition 218 process will cost approximately $6,200 in budgeted wastewater funds. If approved, the rate increase will generate an estimated $1,061,000 in revenue from increased sewer service charges over FY25/26 revenue.

03/10/26 | Item H1 | Staff Report
REVIEWED BY OTHERS:

This item has been reviewed by the Administrative Services Director and City Attorney.

REVIEWED AND APPROVED FOR COUNCIL AGENDA
James R. Lewis, City Manager
ATTACHMENT(S):

1. Proposed Wastewater Rate Increase Prop 218 Notice

NOTICE CONCERNING PROPOSED WASTEWATER

INCREASES AND PUBLIC HEARING
To Property Owner/Customer:

NOTICE IS HEREBY GIVEN that on Tuesday, May 12, 2026, at 6:00 p.m., a Public Hearing will be held in-person at the City of Atascadero Council Chambers located at 6500 Palma Avenue, Atascadero, California 93422 to consider proposed increases in wastewater rates. If approved by the City Council, the proposed rate increases will be effective for services provided on or after July 1, 2026.

WHY ARE THE RATE CHANGES BEING
CONSIDERED?
The City is dedicated to keeping rates low by maintaining lean staffing levels, absorbing increasing operational and maintenance costs, and using reserves when necessary.

However, much like other utilities and services delivered to homes, the costs involved to collect and treat
wastewater have risen and continue to rise. An
independent analysis determined annual rate increases
would be needed over a five-year period. This year’s rate increase represents the second year of that period.

INDEPENDENT ANALYSIS
The City engaged an independent consulting engineer to
assess and analyze the capital needs of the wastewater
collection and treatment systems. The independent
engineer identified numerous capital facility
replacements and upgrades required to continue to
provide a safe and reliable wastewater system. In
addition to other minor projects, the most significant
capital projects identified consist of the wastewater
treatment plant process improvements totaling in excess of $100 million, and other wastewater collection system improvements to lift stations, force mains, sewer pipes and manholes over the next ten years that exceed $170
million. However, the rate study excludes many projects except the treatment plant improvements and only the
highest priority collection system improvements.

Additionally, the City engaged an independent financial consultant to analyze its wastewater services, revenues, and rates and prepare a wastewater rate study. The City commissioned this analysis to determine the cost of
providing wastewater services and their corresponding
impacts to customers’ bills. This analysis identified a number of key factors that result in the proposed rates.

These key factors include, but are not limited to:
• Impacts of State regulation and legislation
• Rising treatment and energy costs
• Past and continued critical upgrades and/or
replacement of wastewater facilities and
infrastructure

PROPOSED WASTEWATER REVENUE INCREASES
The City proposes to increase its wastewater service
charges. All wastewater customers would be charged a
fixed monthly wastewater service charge in the same
manner as they are currently charged. Customers of the
wastewater system are charged proportionally to their
wastewater flow and relative strength contributed to the wastewater collection and treatment facilities. Current and proposed wastewater service charges are provided
on the following page.

WASTEWATER MONTHLY BILL IMPACT FOR THE

AVERAGE RESIDENTIAL CUSTOMER
The wastewater bill for a single-family residential customer will increase by $10.54 per month under the proposed
rates. The table below provides the increase in monthly charges for residential customers in 2026-2027.

Revenues derived from the proposed rate changes do
not exceed the revenue requirements needed to provide
property-related services by the City, nor will the
revenues from the rates and charges referenced herein
be used for any purpose other than that for which the
corresponding rates are imposed. The amount of the
proposed rates imposed upon any parcel or person as
an incident of property ownership will not exceed the
proportional cost of the service(s) attributable to such parcel; and no rate will be imposed for a service unless that service is used by, or immediately available to the property or customer in question.

Current Proposed1 Difference
Single Family $ 57.06 $ 67.60 $ 10.54
Apartment, Condo $ 42.79 $ 50.70 $ 7.91
Mobile Home $ 34.23 $ 40.56 $ 6.33
Senior Apartment Unit $ 19.97 $ 23.66 $ 3.69
Residential Classification
FY 2026-27 Monthly Rate
1 Proposed Rates effective July 1, 2026
03/10/26 | Item H1| Attachment 1

PUBLIC HEARING AND PROTEST

PROCEEDING
The City Council will hear and consider all
written protests and oral comments to the
proposed rate increases at the Public
Hearing. All interested parties are invited to
participate in the public hearing and present
written protests and/or oral comments on the
proposed rate increases referenced herein.

Direction and information for participating in
the meeting will be available on the City
Council Agenda & Minutes webpage.

Agendas are available on the City’s website:
www.atascadero.org/agendas
Oral comments made at the public hearing
will not qualify as formal protests of the
proposed rate increases unless
accompanied by a written protest setting forth
the required information (as detailed below).

Upon the conclusion of the Public Hearing,
the City Council will consider adoption of a
resolution authorizing the rate increases to
the City’s wastewater service charges as
described in this Notice. If written protests
against the proposed rate increases and
adjustments to the wastewater rates as
outlined are not presented by a majority of
property owners of the identified parcels upon
which the wastewater rates are proposed to
be imposed, the City Council will be
authorized to impose the respective rate
increases and adjustment. If adopted, the
proposed rate increases to the wastewater
service charges will be in effect beginning
July 1, 2026.

Pursuant to State Law, written protests may be submitted by any record property owner of a parcel, subject to the proposed City rate changes, against any or all of the proposed rate changes described in this Notice. However, only one written protest will be counted per identified parcel. Any written protest must: (1) state that the identified property owner is in opposition to the proposed increases to the wastewater rates; (2) provide the location of the identified parcel [by street address or assessor’s parcel number (APN)]; (3) include the printed name and original, wet signature of the property owner submitting the protest; (4) date the protest was signed; and (5) certification by the named property owner that the contents of the protest are true and correct. Written protests may be submitted by mail or in person to the City Clerk at 6500 Palma Avenue, Atascadero, CA 93422, or at the Public Hearing on May 12, 2026 (date, time, and location specified on the front of this Notice), provided they are received prior to the close of the Public Hearing, which will occur when the public testimony on the proposed increases and adjustments is concluded.

Due to the inability to verify the authenticity of each individual protest, protests received by telephone, electronic mail (e-mail), or via social media sites, including, but not limited to, Facebook or X shall NOT be accepted. Please identify on the front of the envelope for any written protest, whether mailed or submitted in person to the City Clerk, the following: “Attn: Protest Wastewater Rate Increases”. Written protest in marked envelopes may be submitted in person by dropping them off in the locked box in the foyer at City Hall. For more information or questions about the proposed wastewater rate increases, written protest submittal procedures, or public testimony options at the Public Hearing, you may contact the Department of Public Works at (805) 470-3456 or visit the City’s website at www.atascadero.org/Prop218. Additional information and protest procedures will be available on the City’s website not later than March 27, 2026.

ESTA CARTA ESTÁ DISPONIBLE EN ESPAÑOL, LLAME (805) 461-5000 Current Proposed1
Residential Fixed Charges
Single Family 1.00 Dwelling Unit $ 57.06 $ 67.60
Apartment, Condo 0.75 Dwelling Unit $ 42.79 $ 50.70
Mobile Home 0.60 Spaces $ 34.23 $ 40.56
Senior Apartment Unit 0.35 Dwelling Unit $ 19.97 $ 23.66 Non-Residential Fixed Charges $ -
Financial Institutions 2.00 Unit $ 114.12 $ 135.20
Bars 1.50 Unit $ 85.59 $ 101.40
Carwash 7.50 Unit $ 427.94 $ 507.00
Churches/Meeting Halls $ -
< 150 seats 1.33 Seats $ 75.89 $ 89.91
150 to 250 seats 2.66 Seats $ 151.77 $ 179.82
> 250 seats 3.00 Seats $ 171.17 $ 202.80
Commercial Unit 1.00 Unit $ 57.06 $ 67.60
Funeral Home 9.00 Unit $ 513.52 $ 608.40
Gas Station 2.00 Unit $ 114.12 $ 135.20
Grocery Store > 10,000 sq. ft. 8.00 1,000 sq. ft. $ 456.46 $ 540.80 Gymnasium 10.00 Unit $ 570.58 $ 676.00
Laundry 9.00 Unit $ 513.52 $ 608.40
Motel (per room) 0.33 Room $ 18.83 $ 22.31
Office Unit 1.00 Unit $ 57.06 $ 67.60
Rest Home (per bed) 0.35 Bed $ 19.97 $ 23.66
Restaurants $ -
< 40 seats 4.00 Seats $ 228.23 $ 270.40
40 to 60 seats 6.00 Seats $ 342.35 $ 405.60
61 to 100 seats 8.00 Seats $ 456.46 $ 540.80
> 100 seats 10.00 Seats $ 570.58 $ 676.00
Schools (per student enrolled on March. 1) 0.05 Student $ 2.86 $ 3.38 Theater 4.00 Unit $ 228.23 $ 270.40
Veterinarians 3.00 Unit $ 171.17 $ 202.80
Unlisted Uses2 1.00 Unit $ 57.06 $ 67.60

CURRENT AND PROPOSED MONTHLY SEWER SERVICE CHARGES
Classification Description
EDU3
Multiple
Unit of
Measure
Monthly Rate
2 Unlisted uses are determined by use of fixture units from the California Plumbing Code or as by means deemed appropriate by the City Engineer.
3 EDU = Equivalent Dwelling Unit is the average daily peak flow and strength of wastewater discharge from single family residence (240 gallons per day with BOD5=250 ml/L and SS=250 ml/L). 1 Proposed Rates effective July 1, 2026
03/10/26 | Item H1| Attachment 1

CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item H2
TO: JAMES R. LEWIS, CITY MANAGER
FROM: PHIL DUNSMORE, COMMUNITY DEVELOPMENT DIRECTOR
PREPARED BY: KELLY GLEASON, PLANNING MANAGER
SUBJECT: Zoning Code Update – Mixed-Use Zones and Standards

RECOMMENDATION:

Council receive an update on the Zoning Code Update project, provide direction to staff on policy questions related to Mixed-Use zoning districts and development standards, and receive information about next steps.

BACKGROUND:

The new General Plan replaces land use designations with new “Placetypes” that will need to be reflected within the new zoning code for consistency. One of those placetypes includes a MixedUse designation. Mixed-use typically includes a mixture of commercial and residential uses on a single site, whether the residential use is above or alongside the commercial use. New zoning standards will implement the placetype by specifying property development standards (density, form) for up to four different mixed-use districts. This report focuses on the second of three specific zoning code update study sessions: “Mixed-Use standards and uses”.

DISCUSSION:

The General Plan Update includes a new placetype called “Mixed-Use”. This designation applies to specific commercial areas to encourage infill and economic development outside of major commercial nodes. Up to four Mixed-Use zoning districts are proposed (see Attachment 2a for the proposed MU zoning map), each with varying characteristics that may warrant differentiation through development standards which can be applied to each district. Areas designated under the Mixed-Use placetype are generally:
 Del Rio Marketplace and Mission Oaks at Del Rio Road and El Camino Real  South of Curbaril (Food-4-Less, Smart & Final, and surrounding parcels)  Ramona Road south of Del Rio Road
 The Morro Road Corridor
 Locations surrounding the San Anselmo interchange
Department: Community
Development
Date: 03/10/2026
Placement: Management
Report

03/10/26 | Item H2 | Staff Report
o San Palo
o North-east quadrant of ECR and San Anselmo East
 Mid-Block areas fronting El Camino real to the north and south of Downtown o South of the Major retail center (Vons) on the east side of ECR o North of downtown to San Anselmo The Morro Road Corridor The General Plan lists a density range of 20 to 36 dwelling units per acre, allowing for neighborhood compatibility and a transition between existing commercial and residential areas.

The purpose of the designation is to provide opportunities for a mix of residential and nonresidential uses to stimulate redevelopment of vacant or underutilized commercial strips, increase housing opportunities, and support economic strength throughout the City.

1. MIXED-USE CONCEPTS:

There are generally two forms of mixed-use: vertical and horizontal. Some sites may contain both.
 Vertical mixed-use requires commercial on the ground floor with residential uses on upper floors. Generally, some incidental residential areas can be located on the ground floor such as parking, entry lobbies and mail rooms, and bike storage areas, but commercial remains the primary ground floor use. Outdoor residential amenity spaces are generally shared with commercial tenants or located above the ground floor, such as a roof deck or upper floor courtyard.
 Horizontal mixed-use concepts allow for some residential on the ground floor, generally in the rear (behind street oriented commercial uses) or in areas of a site where a transition to residential uses is desired. Horizontal mixed-use projects may also include vertical mixed-use buildings along the main street frontage. Residential amenity areas may be incorporated into the site design for residential use only or may be shared spaces with the commercial tenants.

Development Standards
The shift to “Placetypes” from “Land Uses” in the General Plan increases the focus on building form, aesthetics, massing, and placement on a site. Incorporating these elements in the zoning code will implement the vision established on the General Plan by establishing site and building design parameters for new development. Development standards focus on the following key concepts:
 Ground floor ceiling height: Viable commercial tenant spaces require adequate ceiling height in order to be successful in accommodating a variety of tenants. Establishing standards for minimum ceiling height can ensure that commercial tenant spaces can be modified over time to accommodate a wide variety of uses.  Setbacks/Build-to lines: How development interacts with the street is a key factor in encouraging pedestrian vibrancy and synergy. Setbacks are already in place to accommodate street trees for shading and layering, however, setting standards for a

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maximum setback can ensure that buildings are oriented to the street and parking is located toward the middle or rear of the site.
 Minimum commercial standards: Similar to ground floor height, establishing standards for commercial spaces can ensure a successful commercial component. Standards can include minimum square-footage, minimum depth, and/or minimum width. When applying minimum commercial standards to horizontal mixed-use projects, placement of each use on the site becomes more critical.

A comparison chart summarizing the development standards for each zone, as discussed below, is included as Attachment 1.

Use Considerations
Zoning districts will identify which uses are “Allowed” and “Conditionally Allowed” in each of the mixed-use districts. The list of uses can be tailored to the vision and goals for each area and can respond to the need for neighborhood compatibility. Each proposed zoning district listed below includes a brief overview of the types of uses that may be appropriate. Staff will provide a complete list of allowed and conditionally allowed uses with the draft zoning code based on Council and community feedback once the draft code is complete.

The zoning code can also establish performance standards for uses to further ensure compatibility within a particular use designation. For example, artisan production or specialized light-duty assembly/manufacturing type uses may only be appropriate in a mixed-use setting if odors, noise, and hours of operation are limited. Establishing performance standards for use categories will ensure viable mixed-use projects with minimized conflicts.

2. PROPOSED MIXED-USE ZONING DISTRICTS
 MU-4: Del Rio Road and Curbaril Road (Marketplace, Mission Oaks, Food-4-Less and Smart & Final). (Attachment 2b)
This zone would be limited to vertical mixed-use and the focus would remain on commercial activity. This district would be applied to existing and new shopping centers, incorporating some surrounding areas. The purpose would be to support revitalization of existing centers, such as the Food-4-Less and Mission Oaks center and increase vibrancy and redevelopment opportunities.
 MU-3: Morro Road corridor, San Palo Road and El Camino Real north of San Anselmo East (former Ford Dealership). (Attachment 3c and 3d)
This zone would allow for horizontal mixed-use (some residential on ground floor) with a strong commercial presence along the primary street frontage. Standards in this district can also be tailored to respond to adjacent residential uses and double frontage parcels along Morro Road.
 MU-2: Parcels facing Ramona Road from Campo Road to the commercial property at the corner of Del Rio Rd and Ramona Rd. (Attachment 2e)

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The future placetype designation for this area was changed from Innovation/Flex to Mixed-Use during the October 28, 2025 City Council meeting to provide a transition from existing residential neighborhoods to commercial uses fronting the 101 freeway. This is proposed to be a distinct zone to accommodate a lower residential density and specific land uses, providing compatibility and transition to Apple Valley residential sites.  MU-1: Mid-block locations on the east side of El Camino Real north and south of Downtown. (Attachment 2f and 2g)
These areas are generally characterized by smaller parcels with limited depth. Many have gradual to moderate slopes, limiting their development potential due to access and site accessibility options.

A. MU-4 (VERTICAL MU ZONE)
MU-4 is intended to be the highest intensity mixed-use zoning district with a focus on preserving commercial activity at key nodes. Areas proposed for this designation include existing shopping centers in addition to some surrounding parcels where continuing the strong commercial focus will support synergy and vibrancy. Specifically, this district includes:
 Del Rio Marketplace
 Mission Oaks Center (and parcels to the south abutting the Innovation/Flex zone)  Food-4-Less and Smart & Final centers (and parcels directly across on the east side of ECR) While allowing residential uses can provide opportunities for revitalization and increased vibrancy, requiring vertical mixed-use with minimal incidental residential spaces on the ground floor will maintain a strong commercial focus in these zones. These centers and surrounding properties can remain as anchors for commercial activity in the City outside of Downtown. Zoning standards can guide future development and redevelopment toward this vision. Proposed standards include:

Development Standard MU - 4
Density 36 du/ac
Height 35 ft (plus 10 feet for architectural features)
Setbacks:

Front No minimum or maximum required except as needed to accommodate street tree setbacks.

Side/Rear None required except transitions to adjacent single-family (existing standard) and 10 ft setback if adjacent to multi-family zoning district (proposed).

Floor to Ceiling Height
for first floor
16 ft

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Use Considerations Commercial uses may include hotel, restaurants, retail, service, gyms, offices, etc. Industrial and auto-repair oriented uses are not allowed.

Residential Use
Requirements
Residential uses allowed only on upper stories (vertical mixed use only).

MU4 Key Discussion Topics:

1. Are the parcels identified appropriate for this zoning district (vertical mixed-use only)?

2. Are the setbacks appropriate? Should there be a certain percentage of frontage where buildings are required to avoid parking only along the frontage?

3. What types of uses may be allowed in this zone? Are hotel uses appropriate here? Are medical offices appropriate? Are there any uses that are not appropriate or may require a use permit?
B. MU-3 (HORIZONTAL MU ZONE: MORRO RD, SAN ANSELMO ADJACENT) MU-3 is intended to allow for horizontal mixed-use with a strong commercial component along major streets. This district is focused along Morro Rd where parcels range from narrow to deep and some have double frontage on neighboring residential streets. The vision for this area in the General Plan is to create a corridor for office and supporting uses. Due to the depth of many lots and the double frontage condition, horizontal mixed-use presents an opportunity to incorporate transitions to adjacent residential neighborhoods and flexibility in use while maintaining a commercial focus along Morro Rd.

Similar to Morro Rd, the existing commercial and hotel area on San Palo Road, and the old Ford dealership site and adjacent vacant or underutilized parcels, offer similar characteristics and opportunities. Standards can be adopted to ensure that commercial components of development projects provide adequate space for the types of uses envisioned for these areas and that certain site design criteria be incorporated to enhance activation toward the street and provide for greater pedestrian orientation. Proposed standards include:

Standard MU - 3
Density 36 du/ac
Height 35 ft (plus 10 feet for architectural features)
Setbacks:

Front Commercial:

Maximum: 15 ft setback for commercial
Minimum: As needed to accommodate street tree setbacks
Residential: 12 ft minimum, no maximum

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Double Loaded
Secondary Front
12 ft minimum, no maximum
Side/Rear None required except transitions to adjacent single-family (existing standard) and 10 ft setback if adjacent to multi-family zoning district (proposed).

Floor to Ceiling Ground
Floor Height
14 ft
Use Considerations Commercial uses may include hotel, restaurants, retail, service, gyms, offices, etc. Industrial and auto-repair oriented uses are not allowed. Vertical and horizontal mixed use allowed.

Commercial
Requirement
Building frontage: 100% of the primary front ground floor building frontage must be commercial
Commercial: 35 ft minimum depth
MU3 Key Discussion Topics:

1. Are the parcels identified appropriate for this zoning district (horizontal mixed-use, 36du/ac)?

2. Are the frontsetbacks appropriate? Should there be a larger setback if commercial uses abut residential streets?

3. Should there be a certain minimum percentage of building frontage along the primary street to avoid parking only along the frontage such as minimum of 70%?

4. Should there be different development standards for double frontage parcels vs. single frontage parcels?

5. What types of uses may be allowed in this zone? Are hotel uses appropriate here? Are there any uses that are not appropriate or may require a use permit? C. MU-2 (HORIZONTAL MU ZONE: RAMONA ROAD)
The MU-2 zoning district is proposed for the parcels fronting Ramona Road toward Del Rio Road.

Ramona Road fronts the 101 freeway, providing visibility for commercial businesses and easy access from the Del Rio Road off ramps. This area was originally identified as an opportunity zone for development centered on employment and small business uses (Innovation/Flex Zone); however, during the October 28, 2025 City Council meeting, concerns related to adjacency to single-family neighborhoods were expressed and the designation was changed to mixed-use to provide for greater compatibility. While this area is envisioned to allow for horizontal mixed-use similar to the Morro Rd corridor, a unique zoning designation is proposed to set a lower residential density of 24 units/acre.

Parcels in this district tend to be relatively deep providing opportunities for commercial uses along the frontage and residential uses in the rear. This area also tends to have a more rural feel

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than parcels along El Camino Real or Morro Road which may lead to a desire for increased front setbacks to maintain existing character. These differences have been incorporated into staff’s proposed standards, as follows:

Standard MU - 2
Density 24 du/ac
Height 35 ft (plus 10 feet for architectural features)
Setbacks:

Front Minimum 15 ft
Side/Rear Minimum 5 ft; unless adjacent to a zoning district other than MU-2 – then setbacks match the adjacent zoning district.

Floor to Ceiling Ground
Floor Height
12 ft
Use Considerations Commercial uses may include restaurants, retail, service, gyms, offices, etc. Artisan maker spaces allowed with performance standards. Industrial, hotel, and auto-repair oriented uses are not allowed. Vertical and horizontal mixed use allowed.

Commercial
Requirement
Building frontage: 100% of the primary front ground floor building frontage must be commercial
Commercial: 35 ft minimum depth
As this is a unique zoning district, the City also has the option to tailor uses specific to this area.

This could result in a different mix of uses identified for this zone relative to similar mixed-use zoning districts. For example, artisan maker spaces and some light industrial type uses may be appropriate in this area with performance standards applied to ensure compatibility with residential uses.

MU2 Key Discussion Topics:

1. Are the parcels identified appropriate for this zoning district (horizontal mixed-use, 24du/ac)?

2. Are the setbacks appropriate? Should there be a greater rear setback or any required buffering for these parcels if they are adjacent to single-family residential uses?

3. What types of uses may be allowed in this zone? Are artisan maker spaces and light industrial uses appropriate here providing performance standards are established? Are there any uses that are not appropriate or may require a use permit? D. MU-1 (MID BLOCK INFILL ON ECR)

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The MU-1 zoning district would apply to parcels along the east side of El Camino Real north and south of Downtown. These parcels can be narrow in depth and width and can have slopes that limit development potential. As these parcels have limited potential for larger retail or entertainment type uses, they can provide an opportunity for infill development that supports commercial nodes by allowing for increased residential density. Although these parcels are currently zoned for commercial uses, many are underutilized or maintained as residential properties, creating a pattern of inefficient and disconnected shopping and activity areas.

Leveraging these parcels for increased residential density may support redevelopment and may enhance the vibrancy of adjacent nodes by increasing demand for retail, personal service, and entertainment uses at larger commercial nodes.

Continuous ground-floor retail can lead to fragmented demand and vacancies. Ensuring viable and “right-sized” retail within this area will increase the potential for success. Based on these characteristics, there are a number of options for this zone related to “right-sizing” commercial components:

1. Require commercial on every parcel along the ECR frontage.

2. Requiring design elements on the ground floor frontage that could accommodate commercial tenants but let the market dictate use. Under this scenario, the ground floor may be taller and/or be designed to accommodate storefront entries, but residential uses may be permitted in these spaces until a commercial tenant is viable.

3. Requiring a commercial component only at key locations. Commercial development would be allowed throughout the zone, but not required. There are two options for identifying key locations. The following options can be separated or combined:
a. Requiring ground floor retail only at intersection corners and allowing for 100% residential development on other parcels. Corners in this zone include:
i. San Jacinto
ii. Rosario
iii. Pueblo
iv. Curbaril
b. Applying an alternative mixed-use zone to key parcels within this area where commercial remains more viable. These parcels, while within the MU1 corridor, may be more appropriately zoned MU4 which would require all residential units to be in the upper floors, reserving ground floor spaces for commercial use to ensure that a stronger commercial presence is maintained. Specific locations would include:
i. Adobe Plaza
ii. Plaza de Pueblo
iii. 7635 El Camino Real
iv. San Jacinto Center

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General development standards would remain similar to other mixed-use zoning designations, as follows:

Standard MU - 1
Density 36 du/ac
Height 35 ft (plus 10 feet for architectural features)
Setbacks:

Front Commercial:

Maximum: 15 ft setback for commercial
Minimum: As needed to accommodate street tree setbacks
Residential: 12 ft minimum, no maximum
Side/Rear None required except transitions to adjacent single-family per Section 9-4.130(j)
Floor to Ceiling Ground
Floor Height
15 ft
Use Considerations Commercial uses may include hotel, restaurants, retail, service, small gyms, clinics, offices, etc. Industrial and auto-repair oriented uses are not allowed or may be allowed with a use permit.

Commercial
Requirement
TBD: As discussed above
MU3 Key Discussion Topics:

1. Are the parcels identified appropriate for this zoning (horizontal mixed-use, 36du/ac, minimized commercial component)?

2. Are the setbacks appropriate?

3. Should commercial uses be required on all parcels or only at “key” locations? Should more viable commercial centers be rezoned to MU4 to require commercial on the ground floor and residential above?

4. If a commercial appearance is important to maintain, would the Council support flexibility in allowing those spaces to be incidental residential uses such as an expanded lobby or resident gym, or residential support services?

5. What types of uses may be allowed in this zone? Are hotel uses appropriate here? Are medical offices appropriate? Are there any uses that are not appropriate or that may require a use permit?

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NEXT STEPS
Staff will incorporate Council direction for mixed-use zoning districts and integrate standards and uses into the updated zoning code. The next zoning code update check-in will be focused on Use tables and standards for the innovation/flex zone. These topics are scheduled for the March 24th Council meeting. Staff will also prepare an overview of the zoning code changes once draft language is finalized. This will present another opportunity for review and feedback prior to the formal adoption process.

CONCLUSION
While mixed-use development has been allowed in certain commercial zoning districts for many years, implementation of the Mixed-Use General Plan placetype through the establishment of unique zoning districts allows for the adoption of tailored standards for each district. This can help achieve the City’s vision for development in each area and respond to varied site characteristics.

FISCAL IMPACT:

None.

REVIEWED BY OTHERS:

This item has been reviewed by the Community Development Director, the Administrative Services Director, and the City Attorney.

REVIEWED AND APPROVED FOR COUNCIL AGENDA
James R. Lewis, City Manager
ATTACHMENTS:

1. Mixed-Use zone comparison chart

2. Mixed Use Zone Maps
a. Combined MU zoning map
b. MU-4
c. MU-3a
d. MU-3b
e. MU-2
f. MU-1
g. MU-1 options

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