Agenda packet — Atascadero City Council, October 13, 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, October 13, 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
Council Member Funk
C. ROLL CALL
Mayor Bourbeau
Mayor Pro Tem Dariz
Council Member Funk
Council Member Newsom
Council Member Peek
D. 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 - September 22, 2026, Regular Meeting 4 Recommendation: Council approve the September 22, 2026, City Council regular meeting minutes. [City Clerk]

2. June 2026 Investment Report 9
Recommendation: Council receive and file the City Treasurer's report for quarter ending June 30, 2026. [Administrative Services]

3. Continue Resolution 2026-059 Declaring Emergency Contracting for Storm Drain System Repairs and Emergency in Advance of 2026/2027 El Niño Winter Season
26 Fiscal Impact: There is no direct fiscal impact by approving the staff recommendation.

Recommendation: Council continue Resolution 2026-059 declaring that public interest and necessity demand the immediate expenditure of public money due to an emergency situation and authorizing the City Manager to enter into contracts with qualified contractors to complete various public storm drain system repairs in advance of the 2026/2027 El Niño winter season. [Public Works]
E. UPDATES FROM THE CITY MANAGER
(The City Manager will give an oral report on any current projects and events to the City Council.)
F. 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].)
G. MANAGEMENT REPORTS

1. Wastewater Capacity Charge Deferral Program 30
Fiscal Impact: The Program would delay receipt of up to 75% of eligible wastewater capacity charges up to $300,000 by the Wastewater Enterprise Fund. The City would, however, receive 100% of the applicable capacity charge plus interest over the three-year repayment period. The Promissory Note and Deed of Trust would secure the deferred obligation.The principal fiscal impact will therefore be a timing impact to Wastewater Enterprise Fund cash flow.

Recommendation: Council adopt proposed Wastewater Capacity Charge Deferral Program - Guidelines and Application Procedures to provide a financing tool for eligible commercial development projects in targeted commercial areas of Atascadero. The program will have a first-year cap of $300,000 that will borrow from and be paid back into the existing Wastewater Enterprise Fund. [Economic Development]

2. Wastewater Treatment Plant Project Updates and Phase 2 Preliminary Design Authorization
39 Fiscal Impact: Adopting staff recommendations will result in the expenditure of approximately $1,082,006 from budgeted Wastewater Funds. Total budgeted funds for this project are $6,000,000 through June 30, 2027. These funds are sufficient to cover authorized expenses, including all program management, engineering design of both interim improvements and through Phase 2 of the WRF. Cost estimates of future phases of the project will be adjusted based upon the findings and recommendations of the Preliminary Design Report.

Recommendation: Council:

1. Review Phase 1 (Process Selection) Alternatives Analysis and direct staff to proceed with Moving Bed Biofilm Reactor (MBBR) as the selected secondary treatment process for the Atascadero Water Reclamation Facility Replacement Project (City Proj. No. C2020W03).

2. Authorize Black & Veatch to proceed with Phase 2, Preliminary Design Report and Construction Cost Estimate, in the amount not to exceed $759,696 for the Atascadero Water Reclamation Facility Replacement Project .

3. Authorize the City Manager to execute a contract amendment with Water Systems Consulting (WSC) in the amount of $322,310 to design and prepare plans, specifications, and cost estimates for Interim Improvements for the Wastewater Reclamation Facility. [Public Works]

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H. 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) I. 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
J. ADJOURNMENT

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10/13/2026 | Item D1
Atascadero City Council
September 22, 2026

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CITY OF ATASCADERO

CITY COUNCIL MEETING

DRAFT MINUTES
September 22, 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
Mayor Pro Tem Dariz led the Pledge of Allegiance.

C. ROLL CALL

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

Absent: None
Staff City Manager James R Lewis, Assistant City Manager/City

Present: Clerk Lara Henderson, Administrative Services Director Jeri Rangel, City Attorney Dave Fleishman, Community
Development Director Phil Dunsmore, Community Services & Promotions Director Terrie Banish, Battalion Chief Andrew Luera, Public Works Director Nick DeBar, Police Chief Dan Suttles, Deputy City Manager – IT Luke Knight, Planning Manager Kelly Gleason
D. CONSENT CALENDAR

1. City Council Draft Minutes - September 8, 2026, Regular Meeting Recommendation: Council approve the September 8, 2026, City Council regular meeting minutes. [City Clerk]

2. July 2026 Accounts Payable & Payroll
Fiscal Impact: Total expenditures for all funds is $9,264,360.61 Recommendation: Council approve certified City accounts payable, payroll and payroll vendor checks for July 2026. [Administrative Services]

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10/13/2026 | Item D1
Atascadero City Council
September 22, 2026

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3. CFD Annexation No. 27, Barrel Creek
Fiscal Impact: Assessments for this annexation are estimated to be $53,020.20 annually, adjusted each year for inflation.

Recommendation: Council adopt on second reading, by title only, Draft Ordinance authorizing the levy of special taxes in Community Facilities District 2005-1 for certain annexation territory identified as Annexation No.

27. [Community Development]

4. Design Award for 2027 Measure F-14 Pavement Rehabilitation Project Fiscal Impact: Approving staff’s recommendations in this report will result in estimated expenditures of $181,530 from Sales Tax Measure F-14 Funds for the design phase of the 2027 F-14 Project. The adopted FY25- 27 Budget includes $325,000 in budgeted funding for the project with a total project estimate of $4,275,000. The upcoming FY27-29 Budget is anticipated to include additional funding for the construction phase of the project.

Recommendation: Council award a professional services agreement to North Coast Engineering for $181,530 to provide design engineering and prepare bidding documents for the 2027 Measure F-14 Pavement Rehabilitation Project (City Proj. No. C2026R01). [Public Works]

5. Design Award for North El Camino Real Pavement Rehabilitation Project, Phase 2
Fiscal Impact: Approving staff’s recommendations will result in estimated expenditure of $209,746 from the Road Repair and Accountability Act of 2017 Funds, also known as SB-1 Funds. The adopted FY25-27 Budget includes $250,000 for the project design in FY 26/27 with an anticipated total project cost of $2,100,000. Funding for the remaining $1,850,000 in project costs is anticipated to be allocated as part of the development of the FY 27-29 Budget, and this project has been identified as a candidate for continued SB-1 funding.

Recommendation: Council award a professional services agreement to RICK Engineering for $209,746 to provide design engineering and prepare bidding documents for the North El Camino Real Pavement Rehabilitation Project, Phase 2 (City Proj. No. C2026R02). [Public Works]

6. Continue Resolution 2026-059 Declaring Emergency Contracting for Storm Drain System Repairs and Emergency in Advance of
2026/2027 El Niño Winter Season
Fiscal Impact: There is no direct fiscal impact by approving the staff recommendation.

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10/13/2026 | Item D1
Atascadero City Council
September 22, 2026

Page 3 of 5 ends

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: Funk
SECOND BY: Dariz

1. Approve Consent Calendar (#D3: Ordinance No. 695) (#D4 Contract No. 2026-012) (#D5 Contract No. 2026-013)
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 events within the City.

F. COMMUNITY FORUM
The following persons spoke: Clyde Snyder, Geoff Auslen, Tess Davis Cheek G. PUBLIC HEARINGS

1. 2045 Atascadero General Plan and final EIR
Fiscal Impact: A Fiscal Impact Analysis was prepared as part of the overall General Plan evaluation. The FIA concludes that the General Plan Update is projected to have a positive fiscal impact on the City’s General Fund at buildout. More detailed information can be reviewed on Attachment 3.

Recommendation: Council:

1. Adopt Draft Resolution A certifying the final Environmental Impact Report, adopting findings of fact pursuant to the California Environmental Quality Act, adopting a mitigation monitoring and reporting program, and adopting a statement of overriding considerations for the 2045 general plan consisting of the following elements - Land Use and Community Form, Economic Development, Mobility, Recreation and Open Space, Public Services and Infrastructure, and Safety and Emergency Preparedness - and the corresponding zoning code update (sch#2024070598).

2. Adopt Draft Resolution B adopting the City of Atascadero 2045 General Plan consisting of the following elements: Land Use and Community Form, Economic Development, Mobility, Recreation and Open Space, Public Services and Infrastructure, and Safety and Emergency Preparedness. [Community Development]
City Attorney Fleishman explained that voting on this item would be held in three segments due to Council Members Peek and Newsom having real property interests within 500 feet of certain designated areas of the General Plan.

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10/13/2026 | Item D1
Atascadero City Council
September 22, 2026

Page 4 of 5 ends

Community Development Director Dunsmore gave the report and answered questions from Council.

Mayor Bourbeau opened the Public Comment period.

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

Council Member Newsom recused herself from voting on the portions of the 2045 General Plan identified in the Draft City Council Resolution B due to that decision affecting property within 500 feet of her real property interest.

Council Member Peek recused himself from voting on the portions of the 2045 General Plan identified in the Draft City Council Resolution B due to that decision affecting property within 500 feet of his real property interest which he stated are representations of his family's investment in Atascadero.

Council Members Newsom and Peek left the dais at 7:16 p.m.

MOTION BY: Funk
SECOND BY: Dariz

1. Certify EIR and Adopt Accompanying Documents (Resolution 2026-063)
AYES (3): Bourbeau, Dariz and Funk
ABSTAIN (2): Newsom and Peek
Passed 3-0
MOTION BY: Funk
SECOND BY: Dariz
Approve Land Use designations in Segment A - Low Density and Medium Density Multi Family Land Use
AYES (3): Bourbeau, Dariz and Funk
ABSTAIN (2): Newsom and Peek
Passed 3-0
Mayor Bourbeau noted that Council Member Newsom returned to the dais at 7:22 p.m. after resolving all segments for which she had a conflict.

MOTION BY: Funk
SECOND BY: Dariz
Approve Land Use designations in Segment B - Mixed Land Use Designation
AYES (4): Bourbeau, Dariz Funk and Newsom
ABSTAIN(1): Peek

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10/13/2026 | Item D1
Atascadero City Council
September 22, 2026

Page 5 of 5 ends

Passed 4-0
Mayor Bourbeau noted that Council Member Peek returned to the dais at 7:24 p.m. after resolving all segments for which he had a conflict.

MOTION BY: Funk
SECOND BY: Dariz
Adopt Resolution 2026-064 adopting the 2045 General Plan.

AYES (5): Bourbeau, Dariz, Funk, Newsom and Peek
Passed 5-0
H. COUNCIL ANNOUNCEMENTS AND COMMITTEE REPORTS
The following Council Members gave brief updates on their committees since their last Council meeting:

Mayor Bourbeau

1. County Mayor’s Round Table

2. Integrated Waste Management Authority (IWMA)

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

1. Attending the League of California Cities Conference Annual Conference September 22 - 25
Council Member Funk

1. Attending the League of CA. Cities Conference September 22 - 25 I. INDIVIDUAL DETERMINATION AND / OR ACTION:

None
J. ADJOURNMENT
Mayor Bourbeau adjourned the meeting at 7:29 P.M.

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CITY OF ATASCADERO

CITY COUNCIL STAFF REPORT
Department: Administrative
Services
Date: 10/13/26
Placement: Consent
TO: JAMES R. LEWIS, CITY MANAGER
FROM: JERI RANGEL, DIRECTOR OF ADMINISTRATIVE SERVICES/TREASURER PREPARED BY: KRYS CLARK, ACCOUNTING SPECIALIST
SUBJECT: June 2026 Investment Report
RECOMMENDATION:

REPORT IN BRIEF:

CASH AND INVESTMENTS
Checking Account $ 1,981,074
Zoo Credit Card Deposit Account 1,311
Mechanics Bank Money Market Account 5,701,858
Certificates of Deposit 14,932,872
Government Securities 25,658,379
Municipal Securities 13,577,145
Supranational Securities 1,004,477
LAIF 17,312,632
Cash with Fiscal Agents (2024 Bonds) 23,482
Cash with Fiscal Agents (2025 Bonds) 26,950,092
Cash in Banks at June 30, 2026 $ 107,143,322
Deposits in Transit 819,317
Timing Differences (1,973,790)
Cash and Investments at June 30, 2026 $ 105,988,849

INVESTMENT ACTIVITY
Securities Purchased:

Purchase Date Description Type Cost Maturity Date
04/02/26 Texas Exchange Bank
Crowley, TX
Certificate of
Deposit
$ 249,000 04/02/30
04/06/26 JP Morgan Chase
National Association
Certificate of
Deposit
239,000 04/04/31
04/14/26 Illinois St
CUSIP #452153PW3
Municipal
Security
504,425 04/01/31
04/29/26 State of California
CUSIP #13063ETP1
Municipal
Security
499,115 04/01/31
05/13/26 Malaga Bank
Palos Verdes, CA
Certificate of
Deposit
249,000 05/13/31
Council receive and file the City Treasurer's report for quarter ending June 30, 2026.

Item D2

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Securities Purchased (continued):

Purchase Date Description Type Cost Maturity Date
05/13/26 BMW Bank of North America
Salt Lake City, UT
Certificate of
Deposit
$ 243,835 08/21/28
05/13/26 Raymond James Bank
St. Petersburg, FL
Certificate of
Deposit
245,000 06/13/30
06/11/26 Minnesota St Hsg Fin Authority
CUSIP #60416TS41
Municipal
Security
208,444 01/01/31
06/22/26 Santa Cruz CA Pension Oblig
CUSIP #80182AAK5
Municipal
Security
448,245 06/01/31
06/22/26 Corona CA Pension Oblig
CUSIP #21969AAK8
Municipal
Security
455,185 05/01/31
06/24/26 Celtic Bank
Salt Lake City, UT
Certificate of
Deposit
249,000 06/24/31
06/24/26 Manufacturers & Traders Co.

Buffalo, NY
Certificate of
Deposit
244,000 06/22/29
06/25/26 Southern Bank
Bluff, MO
Certificate of
Deposit
249,000 05/13/30
06/26/26 United Roosevelt Savings
Carteret, NJ
Certificate of
Deposit
249,000 06/26/31
06/29/26 CFBank
National Association
Certificate of
Deposit
249,000 06/29/29
Securities Matured:

Maturity Date Description Type Original Cost Amount Matured 04/23/26 Malaga Bank
Palos Verdes, CA
Certificate of
Deposit
$ 245,000 $ 245,000
04/24/26 Federal National Mortgage Assn
CUSIP #3135G0K36
Government
Security
533,125 500,000
05/19/26 Eaglemark Savings Bank
Carson City, NV
Certificate of
Deposit
245,000 245,000
05/31/26 US Treasury
CUSIP #91282CCF6
Government
Security
444,914 500,000
06/01/26 Golden St TOB
CUSIP #38122NC59
Municipal
Security
139,970 150,000
06/05/26 Enterprise Bank
Omaha, NE
Certificate of
Deposit
223,070 249,000
06/24/26 First Financial Bank
Dakota Dunes, SD
Certificate of
Deposit
236,540 249,000
06/30/26 UBS Bank USA
Salt Lake City, UT
Certificate of
Deposit
245,000 245,000
Other Reportable Activities:

None
Investment Activity (continued)
10/13/26 | Item D2 | Staff Report

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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

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10/13/26 | Item D2 | Staff Report

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City of Atascadero
Treasurer's Report
Cash & Investments Activity Summary
for the quarter ending June 30, 2026

CHECKING FISCAL

ACCOUNTS INVESTMENTS AGENT TOTALS
Balance per Banks at
April 1, 2026 $ 754,668 $ 73,735,443 $ 27,860,786 $ 102,350,897 Receipts 553,333 16,960,645 231,308 17,745,286
Recognition of Premiums &
Discounts 58,713 - - 58,713
Disbursements (11,638,598) (23,837) (1,349,139) (13,011,574) Transfers In 18,393,000 5,849,399 976,014 25,218,413
Transfers Out (6,080,018) (18,393,000) (745,395) (25,218,413) Balance per Banks at
June 30, 2026 $ 1,982,385 $ 78,187,363 $ 26,973,574 107,143,322 Deposits in Transit 819,317
Timing Differences (1,973,790)
Adjusted Treasurer's Balance $ 105,988,849
10/13/26 | Item D2 | Attachment 1

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Fund (LAIF) n/a State Investment Fund n/a n/a 3.82% $ 17,312,632 n/a $ 17,312,632 $ 17,312,300 $ (332) n/a Mechanic's Bank Money Market n/a Money Fund n/a n/a 4.67% 5,701,858 n/a 5,701,858 5,701,858 - 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 245,000 244,978 (22) 07/20/26 Southern Bancorp Bank
Arkadelphia, AR
01/19/24 Certificate of Deposit n/a 4.00% 4.00% 249,000 n/a 249,000 249,000 - 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 245,000 244,542 (458) 08/01/26 Rancho Adobe Fire Protection
CUSIP #752096AE7
10/14/21 Municipal Security Aa 1.43% 1.25% 260,000 41 260,041 259,371 (670) 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 248,000 248,260 260 08/13/26 Synchrony Bank
Draper, UT
08/13/21 Certificate of Deposit n/a 0.90% 0.90% 245,000 n/a 245,000 244,074 (926) 08/15/26 Dallas TX Ind School District
CUSIP #235308D83
05/09/24 Municipal Security Aaa 4.00% 4.86% 150,000 (118) 149,882 149,964 82 08/15/26 El Paso TX
CUSIP #283734Y21
05/09/24 Municipal Security Aa 4.93% 4.93% 110,000 (524) 109,476 109,581 105 09/24/26 Federal National Mortgage Assn
CUSIP #3135G0Q22
09/24/21 Government Security Aaa 1.88% 0.80% 500,000 1,269 501,269 497,650 (3,619) 09/29/26 First Bank Richmond
Richmond, IN
09/29/21 Certificate of Deposit n/a 0.55% 0.55% 245,000 n/a 245,000 242,878 (2,122) 10/01/26 California Infrastructure Bonds
CUSIP #13034AL73
10/05/22 Municipal Security AAA 1.04% 4.69% 155,000 (1,418) 153,582 153,851 269 10/01/26 Manteca Redevelopment Bonds
CUSIP #56453RBA1
10/05/22 Municipal Security AA 2.04% 4.81% 115,000 (796) 114,204 114,346 142 10/13/26 Federal Agricultural Mtge Corp
CUSIP #31424WAN2
11/08/23 Government Security n/a 5.00% 4.77% 700,000 456 700,456 701,827 1,371 10/31/26 US Treasury Notes
CUSIP #912828YQ7
11/23/22 Government Security Aaa 1.63% 4.07% 250,000 (2,024) 247,976 248,145 169 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 245,000 242,254 (2,746) 11/17/26 Capital One National
McLean, VA
11/17/21 Certificate of Deposit n/a 1.10% 1.10% 245,000 n/a 245,000 242,254 (2,746) 10/13/26 | Item D2 | Attachment 1

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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
June 30, 2026
11/17/26 Federal Agricultural Mtge Corp
CUSIP #31422XPS5
09/27/23 Government Security n/a 1.15% 4.86% 500,000 $ (6,960) $ 493,040 $ 494,610 $ 1,570 $ 12/21/26 Federal Home Loan Bank
CUSIP #3130AQF65
12/30/21 Government Security Aaa 1.25% 1.26% 500,000 (18) 499,982 493,565 (6,417) 12/28/26 Federal Farm Credit Bank
CUSIP #3133EJ4E6
01/18/22 Government Security Aaa 3.13% 1.58% 200,000 1,521 201,521 199,040 (2,481) 12/31/26 Bank Kremlin
Kremlin, OK
12/31/21 Certificate of Deposit n/a 1.05% 1.05% 245,000 n/a 245,000 241,425 (3,575) 01/15/27 San Joaquin Hills Trans Agency
CUSIP # 798111HF0
01/19/22 Municipal Security A2 2.15% 1.88% 500,000 729 500,729 494,625 (6,104) 01/19/27 First Foundation Bank
Irvine, CA
10/25/23 Certificate of Deposit n/a 4.70% 5.05% 230,000 (432) 229,568 230,828 1,260 01/28/27 First Bank Hamilton
Hamilton, NJ
07/28/25 Certificate of Deposit n/a 3.95% 3.95% 245,000 n/a 245,000 244,882 (118) 02/10/27 Federal Agriculture Mtge Corp
CUSIP #31422XTX0
02/17/22 Government Security n/a 1.60% 1.96% 550,000 (1,204) 548,796 542,086 (6,711) 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 245,000 241,817 (3,183) 02/23/27 Sallie Mae Bank
Salt Lake City, UT
10/13/22 Certificate of Deposit n/a 2.20% 4.17% 184,000 (2,310) 181,690 181,858 168 03/01/27 Sonoma Marin Area Rail Transit
CUSIP #835588BA1
12/07/22 Municipal Security AA 1.73% 4.45% 500,000 (8,861) 491,139 492,125 986 03/12/27 Federal Home Loan Bank
CUSIP #3130A3DU5
03/17/22 Government Security Aaa 3.00% 2.20% 500,000 2,758 502,758 496,200 (6,558) 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 245,000 241,467 (3,533) 03/17/27 Beal Bank
Plano, TX
03/23/22 Certificate of Deposit n/a 2.00% 2.00% 245,000 n/a 245,000 241,212 (3,788) 04/12/27 Bank of America
National Association
04/10/25 Certificate of Deposit n/a 4.00% 4.00% 245,000 n/a 245,000 244,870 (130) 04/14/27 Comenity Capital Bank
Draper, UT
04/14/22 Certificate of Deposit n/a 2.65% 2.65% 245,000 n/a 245,000 242,344 (2,656) 04/30/27 US Treasury Notes
CUSIP # 91282CEN7
01/18/23 Government Security Aaa 2.75% 3.64% 1,000,000 (7,257) 992,743 989,310 (3,433) 05/01/27 LA Unified School District
CUSIP # 544646A77
05/11/22 Municipal Security Aa3 5.72% 3.81% 500,000 7,929 507,929 477,955 (29,974) 10/13/26 | Item D2 | Attachment 1

Page 14 of 47 ends

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
June 30, 2026
05/15/27 US Treasury Notes
CUSIP #912828X88
05/24/22 Government Security Aaa 2.38% 2.87% 500,000 $ (2,090) $ 497,910 $ 492,740 $ (5,170) $ 06/09/27 Federal Home Loan Bank
CUSIP #3130A5JU4
06/22/22 Government Security Aaa 3.04% 3.43% 200,000 (707) 199,293 198,076 (1,217) 06/11/27 Federal Home Loan Bank
CUSIP #3130ASGU7
06/22/22 Government Security Aaa 3.50% 3.41% 200,000 179 200,179 198,934 (1,245) 06/15/27 Federal Farm Credit Bank
CUSIP #3133EHNR0
06/22/22 Government Security Aaa 2.58% 3.43% 480,000 (3,793) 476,207 473,362 (2,845) 07/01/27 Sequoia CA Union High
CUSIP #817409N50
05/10/23 Municipal Security AA1 1.95% 4.20% 350,000 (7,639) 342,361 343,042 681 07/16/27 Federal Farm Credit Bank
CUSIP #3133EAXT0
07/26/22 Government Security Aaa 2.75% 2.98% 135,000 (313) 134,687 133,198 (1,489) 07/20/27 Federal Farm Credit Bank
CUSIP #3133ELV92
10/25/23 Government Security Aaa 0.77% 4.86% 500,000 (20,753) 479,247 483,385 4,138 08/01/27 Corona Norco Ca Unif Sch Dist
CUSIP # 219764SB4
08/04/22 Municipal Security AA- 2.30% 3.63% 250,000 (3,515) 246,485 244,923 (1,563) 08/01/27 Escondido CA Unif Sch Dist
CUSIP # 2963871UV7
08/05/22 Municipal Security AA2 1.13% 3.53% 100,000 (2,535) 97,465 96,798 (667) 08/01/27 Martinez CA Uni Sch Dist
CUSIP # 573428MN6
08/04/22 Municipal Security AA 1.26% 3.43% 250,000 (5,729) 244,271 242,338 (1,934) 08/01/27 San Marcos CA Uni Sch Dist
CUSIP # 798755GC2
08/05/22 Municipal Security AA 2.31% 3.68% 185,000 (2,670) 182,330 181,368 (962) 08/01/27 Southwestern Comm College
CUSIP # 845389LS2
08/04/22 Municipal Security AA- 1.53% 3.53% 155,000 (3,270) 151,730 150,576 (1,154) 08/26/27 Federal Agriculture Mtge Corp
CUSIP #31422XF23
09/02/22 Government Security n/a 3.20% 3.49% 500,000 (1,620) 498,380 494,875 (3,505) 09/15/27 Luminate Bank
Minnetonka, MN
09/15/22 Certificate of Deposit n/a 3.40% 3.40% 245,000 n/a 245,000 242,834 (2,166) 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 245,000 243,123 (1,877) 09/15/27 University of Pittsburgh
CUSIP # 798755GC2
09/15/22 Municipal Security AA+ 3.18% 3.81% 500,000 (3,688) 496,312 494,060 (2,252) 10/08/27 Federal National Mortgage Assn
CUSIP #3135G05Y5
10/12/22 Government Security Aaa 0.75% 4.12% 1,000,000 (41,404) 958,596 958,610 14 10/31/27 US Treasury Notes
CUSIP # 91282CAU5
11/09/22 Government Security Aaa 0.50% 4.31% 600,000 (29,409) 570,591 571,830 1,239 10/13/26 | Item D2 | Attachment 1

Page 15 of 47 ends

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
June 30, 2026
11/15/27 Tulare CA Sewer Rev
CUSIP #899124MH1
04/12/23 Municipal Security AA 1.93% 4.47% 325,000 $ (10,914) $ 314,086 $ 314,691 $ 605 $ 11/15/27 US Treasury Notes
CUSIP # 9128283F5
12/07/22 Government Security Aaa 2.25% 3.79% 500,000 (10,218) 489,782 487,325 (2,457) 12/01/27 Federal Agricultural Mtge Corp
CUSIP #31422XR95
10/20/23 Government Security n/a 4.03% 5.04% 500,000 (6,836) 493,164 498,525 5,361 12/15/27 Forbright Bank
Potomac, MD
12/15/22 Certificate of Deposit n/a 4.00% 4.00% 245,000 n/a 245,000 244,390 (610) 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 245,000 244,388 (613) 01/12/28 Inter-American Dev Bank
CUSIP # 4581X0EH7
01/19/23 Supranational Security Aaa 4.00% 3.70% 1,000,000 4,477 1,004,477 997,340 (7,137) 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 249,000 247,095 (1,905) 02/15/28 Belmont Bank & Trust
Chicago, IL
02/15/23 Certificate of Deposit n/a 3.75% 3.75% 249,000 n/a 249,000 247,269 (1,731) 02/15/28 US Treasury Notes
CUSIP # 9128283W8
02/01/23 Government Security Aaa 2.75% 3.64% 500,000 (6,996) 493,004 488,945 (4,059) 02/17/28 Vision Bank
St. Louis, MN
02/17/23 Certificate of Deposit n/a 3.75% 3.75% 249,000 n/a 249,000 247,262 (1,738) 03/10/28 Federal Home Loan Bank
CUSIP # 3130ATS57
03/15/23 Government Security Aaa 4.50% 3.90% 600,000 5,845 605,845 603,186 (2,659) 03/17/28 Affinity Bank
Covington, GA
03/17/23 Certificate of Deposit n/a 4.90% 4.90% 245,000 n/a 245,000 247,825 2,825 03/20/28 Bank Five Nine
Oconomowoc, WI
03/20/23 Certificate of Deposit n/a 4.65% 4.65% 245,000 n/a 245,000 246,818 1,818 04/01/28 California State Bonds-GO
CUSIP #13063DGC6
04/12/23 Municipal Security AA 3.50% 3.98% 525,000 (4,221) 520,779 518,411 (2,368) 04/01/28 California State Bonds-Taxable
CUSIP #13063DGC6
04/12/23 Municipal Security AA 3.50% 3.98% 150,000 (1,206) 148,794 148,118 (677) 04/06/28 Morgan Stanley Bank
Salt Lake City, UT
09/28/23 Certificate of Deposit n/a 4.65% 4.69% 244,000 (159) 243,841 245,718 1,877 05/12/28 Central Bank
Little Rock, AR
05/12/23 Certificate of Deposit n/a 3.85% 3.85% 249,000 n/a 249,000 248,031 (969) 05/16/28 CIBC Bank
Chicago, IL
05/16/23 Certificate of Deposit n/a 4.35% 4.35% 244,000 n/a 244,000 244,451 451 10/13/26 | Item D2 | Attachment 1

Page 16 of 47 ends

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
June 30, 2026
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 $ 249,817 $ 817 $ 05/30/28 Idaho First Bank
McCall, ID
05/30/23 Certificate of Deposit n/a 4.20% 4.20% 245,000 n/a 245,000 248,802 3,802 05/31/28 Customers Bank
Phoenixville, PA
05/31/23 Certificate of Deposit n/a 4.45% 4.45% 244,000 n/a 244,000 247,645 3,645 06/09/28 Federal Home Loan Bank
CUSIP #3130AEB25
06/20/23 Government Security AA+ 3.25% 4.03% 170,000 (2,453) 167,547 166,974 (573) 06/30/28 Federal Home Loan Bank
CUSIP #3130AWN63
08/03/23 Government Security Aaa 4.00% 4.33% 500,000 (3,133) 496,867 498,400 1,533 07/06/28 HSBC Bank USA
McLean, VA
07/18/23 Certificate of Deposit n/a 3.30% 4.57% 249,000 (6,124) 242,876 244,212 1,336 07/24/28 Valley National Bank
Passaic, NJ
07/22/25 Certificate of Deposit n/a 4.00% 4.00% 245,000 n/a 245,000 243,898 (1,103) 07/26/28 Park State Bank
Duluth, MN
07/26/23 Certificate of Deposit n/a 4.45% 4.45% 249,000 n/a 249,000 250,066 1,066 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 249,000 249,822 822 08/01/28 New York City Transitional Fin Auth
CUSIP #64971XBN7
08/16/23 Municipal Security Aa1 4.90% 4.90% 850,000 (29,291) 820,709 830,127 9,418 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 249,000 250,332 1,332 08/21/28 BMW Bank of North America
Salt Lake City, UT
05/13/26 Certificate of Deposit n/a 3.80% 4.02% 245,000 (1,102) 243,898 242,837 (1,061) 09/05/28 Discover Bank
Greenwood, DE
09/07/23 Certificate of Deposit n/a 4.55% 4.55% 244,000 n/a 244,000 245,542 1,542 09/13/28 Optum Bank Inc
Draper, UT
09/13/23 Certificate of Deposit n/a 4.55% 4.55% 244,000 n/a 244,000 245,440 1,440 09/21/28 Merrick Bank
South Jordan, UT
09/21/23 Certificate of Deposit n/a 4.50% 4.50% 249,000 n/a 249,000 250,365 1,365 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 249,000 250,370 1,370 09/29/28 Star Bank
Maple Lake, MN
09/29/23 Certificate of Deposit n/a 4.65% 4.65% 244,000 n/a 244,000 245,974 1,974 10/17/28 Southern First Bank
Greensville, SC
10/26/23 Certificate of Deposit n/a 4.85% 4.85% 244,000 n/a 244,000 247,516 3,516 10/13/26 | Item D2 | Attachment 1

Page 17 of 47 ends

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
June 30, 2026
10/23/28 Federal Home Loan Bank
CUSIP #3130AXLQ9
10/25/23 Government Security Aaa 5.03% 4.89% 500,000 $ 1,479 $ 501,479 $ 508,365 $ 6,886 $ 10/27/28 Iowa State Bank
Clarksville, IA
10/27/23 Certificate of Deposit n/a 4.70% 4.70% 249,000 n/a 249,000 251,495 2,495 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 248,000 252,476 4,476 11/16/28 Federal Home Loan Bank
CUSIP #3130AFFX0
12/12/23 Government Security Aaa 3.25% 4.29% 500,000 (11,641) 488,359 489,965 1,606 12/01/28 Sulphur Springs CA Uni Sch District
CUSIP #865485EL6
12/07/23 Municipal Security A2 1.97% 4.58% 110,000 (6,492) 103,508 103,918 410 12/04/28 Federal Agricultural Mtge Corp
CUSIP #31424WCR1
12/12/23 Government Security n/a 4.38% 4.33% 750,000 718 750,718 751,875 1,157 12/04/28 Federal Farm Credit Bank
CUSIP #3133EHZ48
05/08/24 Government Security Aaa 2.77% 4.49% 194,000 (7,631) 186,369 187,381 1,012 01/05/29 San Joaquin Hills CA
CUSIP #798111HH6
11/24/25 Municipal Security n/a 3.80% 3.80% 500,000 (15,645) 484,355 477,230 (7,125) 01/18/29 Federal Farm Credit Bank
CUSIP #3133EPW84
01/19/24 Government Security AA+ 3.88% 4.04% 750,000 (2,945) 747,055 744,315 (2,740) 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 249,000 246,522 (2,478) 01/26/29 Parkside Financial Bank
Clayton, MO
01/26/24 Certificate of Deposit n/a 3.85% 3.85% 249,000 n/a 249,000 246,522 (2,478) 02/13/29 Federal Farm Credit Bank
CUSIP #3133EP3B9
02/14/24 Government Security AA+ 4.13% 4.28% 1,250,000 (4,635) 1,245,365 1,248,688 3,323 03/09/29 Federal Home Loan Bank
CUSIP #3130AVBD3
04/10/24 Government Security AA+ 4.50% 4.47% 1,000,000 622 1,000,622 1,007,000 6,378 04/10/29 Federal Farm Credit Bank
CUSIP #3133ERAK7
04/17/24 Government Security AA+ 4.38% 4.71% 1,000,000 (8,588) 991,412 1,005,010 13,598 05/01/29 Pasadena CA Ref Taxable
CUSIP #70227RBQ2
05/03/24 Municipal Security Aaa 2.30% 4.95% 330,000 (22,946) 307,054 311,434 4,380 05/15/29 Federal National Mortgage Assn
CUSIP #31359MEU3
05/16/24 Government Security AA+ 6.25% 4.36% 750,000 37,901 787,901 791,760 3,859 06/08/29 Federal Home Loan Bank
CUSIP #3130B1BC0
06/11/24 Government Security Aaa 4.63% 4.49% 1,000,000 3,491 1,003,491 1,012,010 8,519 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 244,000 246,735 2,735 10/13/26 | Item D2 | Attachment 1

Page 18 of 47 ends

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
June 30, 2026
06/22/29 Manufacturers & Traders Co
Buffalo, NY
06/24/26 Certificate of Deposit n/a 4.25% 4.25% 244,000 $ n/a 244,000 $ 243,766 $ (234) $ 06/29/29 CFBank
National Association
06/29/26 Certificate of Deposit n/a 4.15% 4.15% 249,000 n/a 249,000 248,091 (909) 07/05/29 Federal Farm Credit Bank
CUSIP #3133ERKJ9
07/11/24 Government Security Aaa 4.38% 4.18% 1,000,000 5,401 1,005,401 1,002,900 (2,501) 07/17/29 BNY Mellon
National Association
07/17/24 Certificate of Deposit n/a 4.15% 4.15% 244,000 n/a 244,000 243,046 (954) 08/01/29 Federal Farm Credit Bank
CUSIP #3133ERNC1
08/14/24 Government Security Aaa 4.13% 3.66% 1,000,000 13,545 1,013,545 998,520 (15,025) 09/01/29 California State
CUSIP #13063EBP0
09/18/24 Municipal Security Aa2 5.13% 3.59% 500,000 22,843 522,843 511,460 (11,383) 10/01/29 California ST
CUSIP #13063DRE0
07/16/25 Municipal Security Aa2 2.50% 4.11% 235,000 (11,415) 223,585 221,995 (1,590) 11/26/29 Goldman Sachs Bank
New York, NY
11/25/25 Certificate of Deposit Aa 2.47% 3.77% 245,000 n/a 245,000 241,060 (3,940) 01/31/30 US Treasury Notes
CUSIP #91282CMG3
02/21/25 Government Security Aaa 4.25% 4.32% 1,000,000 (2,158) 997,842 1,002,190 4,348 01/31/30 US Treasury Notes
CUSIP #91282CMG3
03/12/25 Government Security Aaa 4.25% 3.97% 1,000,000 9,211 1,009,211 1,002,190 (7,021) 03/31/30 US Treasury Notes
CUSIP #91282CGS4
04/09/25 Government Security Aaa 3.63% 3.86% 1,000,000 (8,205) 991,795 980,630 (11,165) 04/02/30 Texas Exchange Bank
Crowley, TX
04/02/26 Certificate of Deposit n/a 4.00% 4.00% 249,000 n/a 249,000 246,129 (2,871) 04/30/30 US Treasury Notes
CUSIP #91282CGZ8
05/07/25 Government Security Aaa 3.50% 3.91% 1,000,000 (14,511) 985,489 975,780 (9,709) 05/13/30 Southern Bank
Bluff, MO
06/26/26 Certificate of Deposit n/a 3.95% 3.95% 249,000 n/a 249,000 245,539 (3,461) 05/15/30 Los Angeles Dept of Airports
CUSIP #54445CAB9
02/13/26 Municipal Security AA 3.26% 3.80% 500,000 (9,850) 490,150 506,090 15,940 06/13/30 Raymond James Bank
St. Petersburg, FL
05/13/26 Certificate of Deposit n/a 4.05% 4.05% 245,000 n/a 245,000 242,281 (2,720) 07/01/30 Florida St Board
CUSIP #341271AF1
11/19/25 Municipal Security Aa2 2.15% 3.90% 500,000 (32,076) 467,924 458,120 (9,804) 07/25/30 Security Bank
Paris, TN
07/25/25 Certificate of Deposit n/a 3.85% 3.85% 245,000 n/a 245,000 240,443 (4,557) 10/13/26 | Item D2 | Attachment 1

Page 19 of 47 ends

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
June 30, 2026
08/01/30 Tennessee Valley Authority
CUSIP #880591FE7
11/19/25 Government Security Aa1 3.88% 3.74% 500,000 $ 2,481 $ 502,481 $ 493,805 $ (8,676) $ 09/01/30 Maine Muni Bk
CUSIP #56045PEF6
02/04/26 Municipal Security AA- 3.91% 3.91% 500,000 (97) 499,903 489,945 (9,958) 11/01/30 Colorado St Hsg & Fin Authority
CUSIP #19648G4L3
02/18/26 Municipal Security Aaa 3.94% 3.94% 745,000 n/a 745,000 733,080 (11,920) 12/01/30 Denver CO Cty & Cnty Housing Auth
CUSIP #24917NAL5
01/23/26 Municipal Security AA+ 2.68% 3.93% 800,000 (39,987) 760,013 743,152 (16,861) 01/01/31 MN St Hsg Fin Authority
CUSIP #60416TS41
06/11/26 Municipal Security Aa1 5.25% 4.83% 205,000 3,461 208,461 209,004 543 02/01/31 NY City Transit
CUSIP #64972JZY7
02/03/26 Municipal Security Aa1 4.06% 3.94% 500,000 2,549 502,549 490,915 (11,634) 02/01/31 NY City Transit
CUSIP #64972JZY7
02/05/26 Municipal Security Aa1 4.06% 3.95% 500,000 2,275 502,275 490,915 (11,360) 04/01/31 Illinois St
CUSIP #452153PW3
04/14/26 Municipal Security A2 4.68% 4.48% 500,000 4,258 504,258 498,375 (5,883) 04/01/31 State of CA
CUSIP #13063ETP1
04/29/26 Municipal Security Aa2 4.05% 4.09% 500,000 (852) 499,148 491,970 (7,178) 04/04/31 JP Morgan Chase
National Association
04/06/26 Certificate of Deposit n/a 4.25% 4.25% 239,000 n/a 239,000 236,189 (2,811) 05/01/31 Corona Pension Oblig
CUSIP #21969AAK8
06/22/26 Municipal Security AA+ 2.34% 4.41% 500,000 (44,634) 455,366 453,900 (1,466) 05/13/31 Malaga Bank
Palos Verdes, CA
05/13/26 Certificate of Deposit n/a 3.80% 3.80% 249,000 n/a 249,000 242,999 (6,001) 06/01/31 Santa Cruz Pension Oblig
CUSIP #80182AAK5
06/22/26 Municipal Security AAA 1.91% 4.26% 500,000 (51,548) 448,452 444,660 (3,792) 06/24/31 Celtic Bank
Salt Lake City, UT
06/24/26 Certificate of Deposit n/a 4.20% 4.20% 249,000 n/a 249,000 247,329 (1,671) 06/26/31 United Roosevelt Savings
Carteret, NJ
06/26/26 Certificate of Deposit n/a 4.00% 4.00% 249,000 n/a 249,000 245,098 (3,902) Total Funds Managed by the City 78,591,490 (404,127) 78,187,363 77,973,618 (213,745) 10/13/26 | Item D2 | Attachment 1

Page 20 of 47 ends

10/13/26 | Item D2 | Attachment 1 Page 21 of 47
City of Atascadero
Investments by Type
June 2026
Investment June 2026
LAIF 17,312,632 $
Money Market 5,701,858
Certificates of Deposit 14,932,872
Government Securities 25,658,379
Municipal Securities 13,577,145
Supranational Securities 1,004,477
Cash with Fiscal Agents 26,973,574
$ 105,160,937
LAIF
17%
Money Market
5%
Certificates of
Deposit
14%
Government
Securities
24% Municipal Securities
13%
Supranational
Securities
1%
Cash with Fiscal
Agents
26%
10/13/26 | Item D2 | Attachment 1

Page 22 of 47 ends

City of Atascadero
Investments by Maturity *
June 2026
Investment June 2026
On Demand 23,014,490 $
Within One Month 739,000
One Month to One Year 11,703,370
One to Five Years 42,730,503
$ 78,187,363
* 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
29%
Within One Month
1%
One Month to One Year
15%
One to Five Years
55%
10/13/26 | Item D2 | Attachment 1

Page 23 of 47 ends

City of Atascadero
Investments by Custodial Agent
June 2026
Custodial Agent June 2026
State of California 17,312,632 $
US Bank 55,172,873
Bank of New York 6,439,423
Mechanics Money Market 5,701,858
Toronto-Dominion Bank 20,534,151
$ 105,160,937
State of California
16%
US Bank
53%
Bank of New York
6%
Mechanics Money
Market
5%
Toronto-Dominion
Bank
20%
10/13/26 | Item D2 | Attachment 1

Page 24 of 47 ends

City of Atascadero
Investment Yield vs. 2-Year Treasury Yield
For the Quarter Ended June 30, 2026
City Yield
2-Yr Treasury
Weighted
Portfolio Yield
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%
March 2026 3.79% 3.77%
June 2026 3.86% 3.93%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%
City Yield 2-Yr Treasury Weighted Portfolio Yield
10/13/26 | Item D2 | Attachment 1

Page 25 of 47 ends

CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item D3
Department: Public Works
Date: 10/13/26
Placement: Consent
TO: JAMES R. LEWIS, CITY MANAGER
FROM: NICK DE BAR, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER PREPARED BY: JOE MURPHY, ASSOCIATE CIVIL ENGINEER
SUBJECT: Continue Resolution 2026-059 Declaring Emergency Contracting for Storm Drain System Repairs and Emergency in Advance of 2026/2027 El Niño Winter Season
RECOMMENDATION:

Council continue Resolution 2026-059 declaring that public interest and necessity demand the immediate expenditure of public money due to an emergency situation and authorizing the City Manager to enter into contracts with qualified contractors to complete various public storm drain system repairs in advance of the 2026/2027 El Niño winter season.

DISCUSSION:

BACKGROUND
On September 8, 2026, Council reviewed immediate storm drainage system repairs and appropriated $700,000 toward eleven (11) critical repair locations listed as follows:

Resolution 2026-059 was also adopted by Council at that meeting allowing the Council to make the necessary declarations and authorizations, including authorizing the City Manager to enter into contracts with qualified contractors to complete various public storm drain system repairs in Local Trans.

Fund (LTF)
Measure
F-14 Fund
7950 El Camino Real $ 165,000 $ 165,000 $ 165,000 $ -
7434 El Camino Real $ 130,000 $ 130,000 $ 130,000 $ -
11405 San Marcos Road $ 52,000 $ 52,000 $ 52,000 $ -
11805 San Marcos Road $ 65,000 $ 65,000 $ 65,000 $ -
7395 Santa Ysabel Road $ 39,000 $ 39,000 $ 39,000 $ -
6855 San Gabriel Road $ 52,000 $ 52,000 $ 52,000 $ -
10810 Escondito Road (non-maint.) $ 32,000 $ 32,000 $ 32,000 $ - 5850 Rosario Avenue $ 50,000 $ 50,000 $ - $ 50,000
Cascada Road at El Centro Avenue $ 45,000 $ 45,000 $ - $ 45,000 4560 Obispo Road $ 35,000 $ 35,000 $ - $ 35,000
7640 Castano Avenue $ 35,000 $ 35,000 $ - $ 35,000
Total $ 295,000 $ 240,000 $ 165,000 $ 700,000 $ 535,000 $ 165,000 Funding Source

ESTIMATED EXPENDITURES AND FUNDING SOURCES
Storm Drain Location
Priority #1
El Camino
Real
Priority #2
Collector &
Non-Maint.

Priority #3
Measure F-14
Eligible Total

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10/13/26 | Item D3 | Staff Report
advance of the 2026/2027 El Niño winter season, in accordance with the Public Contract Code.

Delays in repair work until competitive bids are obtained may result in negative impacts to public safety and flooding, and staff therefore believe that there is sufficient basis under the Public Contract Code to support the emergency procurement to repair the failed storm drain pipes. The Resolution also requires that Council review this emergency action at its next regularly scheduled meeting, and each regularly scheduled meeting thereafter until the repairs to the failed storm drain pipes and culverts are complete, to determine whether there is a need to continue the action pursuant to Public Contract Code Section 22050(c).

SUMMARY
The following table summarizes the costs and status of the various storm drainage system repair locations under the emergency contracting action:

Since the last Council meeting, eight bids were received for the two Priority #1 repair locations at 7950 and 7434 El Camino Real ranging from $105,857 to $221,625 with the low bid submitted by Souza Construction. Plans were prepared by AKA Engineering and bid documents were under public solicitation on September 8, 2026 when Council adopted Resolution 2026-059. The City Manager has awarded this work to Souza Construction for $105,857. Souza plans to start work in the first part of October 2026.

Priority #2 and 3 locations have had USA North underground markings performed and staff is currently soliciting prices for Priority #2 work and preparing exhibits and estimated quantities for Priority #3 work. This work will be expected to take several months to complete and staff recommends that Council continue the actions under Resolution 2026-059. In accordance with the resolution, a staff report that provides an update on the progress of this work will be included at each Council meeting until all repairs have been complete.

ALTERNATIVES TO THE STAFF RECOMMENDATION:

None.

FISCAL IMPACT:

There is no direct fiscal impact by approving the staff recommendation. 1 7950 El Camino Real $ 165,000 $ 56,424 $ 65,000 Souza 1 7434 El Camino Real $ 130,000 $ 49,434 $ 57,000 Souza 2 11405 San Marcos Road $ 52,000
2 11805 San Marcos Road $ 65,000
2 7395 Santa Ysabel Road $ 39,000
2 6855 San Gabriel Road $ 52,000
2 10810 Escondito Road (non-maint.) $ 32,000
3 5850 Rosario Avenue $ 50,000
3 Cascada Road at El Centro Avenue $ 45,000
3 4560 Obispo Road $ 35,000
3 7640 Castano Avenue $ 35,000
Total $ 700,000 $ 105,857 $ 122,000
Contracting/Pre-Const.

Contracting/Pre-Const.

Soliciting Prices
Soliciting Prices
Soliciting Prices
Soliciting Prices
Soliciting Prices
Preparing Plans for Pricing
Preparing Plans for Pricing
Preparing Plans for Pricing
Preparing Plans for Pricing
Pri.
#

STORM DRAIN SYSTEM REPAIR SUMMARY
Storm Drain Location Status
Estimated
Amount
Contract
Amount
Est. Final
Amount Contractor

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10/13/26 | Item D3 | Staff Report
REVIEWED BY OTHERS:

This item has been reviewed by the Administrative Services Director.

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

1. Bid Summary for El Camino Real Culvert Replacement Project

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Name of Bidder Base Bid Total Add Alternate
Souza $105,857.00
Whitaker Construction Group, Inc. $206,739.00
M.E. Avila Construction $221,624.85
Seamair Construction $140,545.00
Main Line Engineering Construction, Inc. $162,475.00
Andrew Brown General Engineering, Inc. $180,272.00
J.L. Plank Inc. dba Cen-Cal Construction $152,251.00
Kies & Son Construction Inc. $219,397.00

BID SUMMARY
To: Darcy Price, Public Works
From: Jessica Krouse, Deputy City Clerk
Bid Number: 2026-006
Opened: September 24, 2026
Project: El Camino Real Culvert Replacement Project No. C2026D02 Bids Opened: 8 Bids were received and opened today, as follows:
10/13/26 | Item D3 | Attachment 1
City of Atascadero
CITY CLERK’S OFFICE

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CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item G1
Department: Economic
Development
Date: 10/13/26
Placement: Management
Report
TO: JAMES R. LEWIS, CITY MANAGER
FROM: LORELI CAPPEL, ECONOMIC DEVELOPMENT DIRECTOR
PREPARED BY: LORELI CAPPEL, ECONOMIC DEVELOPMENT DIRECTOR SUBJECT: Wastewater Capacity Charge Deferral Program
RECOMMENDATION:

Council adopt proposed Wastewater Capacity Charge Deferral Program - Guidelines and Application Procedures to provide a financing tool for eligible commercial development projects in targeted commercial areas of Atascadero. The program will have a first-year cap of $300,000 that will borrow from and be paid back into the existing Wastewater Enterprise Fund.

REPORT IN BRIEF:

Wastewater capacity charges are one-time charges paid by new or expanding development to provide capacity in the City's wastewater collection and treatment system. While these charges are an important source of funding for the City's wastewater infrastructure, the upfront cost combined with other City and private construction and financing fees can create a challenge for new commercial development.

The City is undertaking substantial wastewater infrastructure improvements, including modernization of the wastewater treatment plant to meet State permit requirements and accommodate future growth. Improvements to the treatment plant alone are anticipated to exceed $100 million and represent the largest capital investment in the City's history.

The proposed Wastewater Capacity Charge Deferral Program (Program) would provide eligible commercial projects with the ability to defer 75% of their wastewater capacity charge and repay that amount over three years, with interest, as the completed development concurrently begins to generate revenue for the property owner. The City would recover 100% of the required capacity charge plus accrued interest.

The Program is intended to encourage investment in targeted commercial areas, support business creation and expansion, activate vacant and underutilized properties, and attract businesses that provide jobs, sales tax revenue, and community-serving amenities.

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DISCUSSION:

BACKGROUND
Wastewater capacity charges are paid when new or expanded development is approved to cover their fair share toward capacity in the City's wastewater system. The charges are an important component of funding the City's wastewater infrastructure. However, the timing of the charge can present a challenge for commercial development. Businesses may incur significant costs for property acquisition, tenant improvements, equipment, permitting, and other startup expenses before a project begins generating revenue.

The proposed Program is designed to address this timing issue without reducing or waiving the City's wastewater capacity charges. Instead, the City would provide a secured, short-term financing mechanism that allows qualified projects to spread payment over three years.

PROPOSED PROGRAM
Under the proposed Program:
 25% of the total wastewater capacity charge is paid at permit issuance.  The remaining 75% is deferred and repaid in three equal annual installments.  The three installments are due on the first, second, and third anniversaries of permit issuance.
 Interest will be fixed based on the date of the first payment and accrues on the outstanding deferred balance at the City's investment portfolio yield rate.  The City ultimately recovers 100% of the wastewater capacity charge plus accrued interest.
 The deferred amount is secured by a Promissory Note and Deed of Trust recorded against the subject property.

The Program is a financing convenience and not a grant, fee waiver, or permanent reduction in the wastewater capacity charge.

ELIGIBLE AREAS AND PROJECTS
The Program would be available for qualifying commercial and mixed-use development that exceed $25,000 in wastewater capacity charges in the following zoning districts:
 Downtown Commercial (DC)
 Commercial (C)
 Commercial Innovation (CI)
 Mixed-Use 4 (MU-4)
Eligible projects would include new commercial construction, commercial redevelopment or expansion, and changes of use that trigger a new or increased wastewater capacity charge.

Mixed-use projects may participate for the commercial component only; residential components are not eligible. The program is first-come first-serve, until the deferral amount reaches a cumulative maximum of $300,000. Priority would be given to businesses that activate the community and provide local economic benefit, including:

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 Restaurants and food service establishments;
 Entertainment venues;
 Breweries and tasting rooms;
 Event facilities; and
 Other commercial uses determined by the City Manager to be consistent with the Program's goals.

CITY PROTECTION
The Program is structured to protect the City's financial interests while providing flexibility to eligible businesses. Participation requires:
 The property owner to be in good standing with the City;  Demonstration of financial capacity to meet the repayment obligations;  Execution of a Promissory Note;
 Recordation of a Deed of Trust against the property prior to permit issuance; and  Approval of the individual deferral agreement by the City Manager and Administrative Services Director.

If a required payment is more than 30 days delinquent, the City may declare the full outstanding balance immediately due and payable and pursue remedies available under the security documents and applicable law. If the property is sold or transferred before the obligation is fully repaid, the outstanding balance and accrued interest would generally become immediately due and payable unless the City approves assumption by the buyer. Program participation may be limited by annual funding or capacity limits established through the City's budget process.

ALTERNATIVES TO THE STAFF RECOMMENDATION:

1. Council may elect not to establish the Program. Under this option, eligible commercial projects would continue to pay wastewater capacity charges pursuant to the City's existing requirements.

2. Council may refer the Program back to staff for additional information or modifications.

3. Council may approve the Program with modifications to the proposed eligibility criteria, payment structure, geographic areas, or other Program provisions.

FISCAL IMPACT:

The Program would delay receipt of up to 75% of eligible wastewater capacity charges up to $300,000 by the Wastewater Enterprise Fund. The City would, however, receive 100% of the applicable capacity charge plus interest over the three-year repayment period. The Promissory Note and Deed of Trust would secure the deferred obligation.

The principal fiscal impact will therefore be a timing impact to Wastewater Enterprise Fund cash flow.

REVIEWED BY OTHERS:

This item has been reviewed by the Administrative Services Director, Planning Manager, and Public Works Director.

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

1. Wastewater Capacity Charge Deferral Program - Guidelines and Application Procedures

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Wastewater Capacity Charge Deferral Program
Program Guidelines and Application Procedures

1. PURPOSE AND BACKGROUND
Wastewater capacity charges, also known as sewer connection fees, are one-time charges paid by a new customer connection to the sewer collection system for that connection’s pro-rated capacity in the wastewater collection and treatment systems. Capacity charges are also charged to existing customer connections that require increased capacity from changes in the use of the development (e.g., office to restaurant). The City of Atascadero is pursuing improvements and modernization of its wastewater treatment plant to meet new stringent State permit requirements and increase capacity in both the plant and collection system to support continued growth and economic vitality in the community. Improvements to the wastewater treatment plant alone are anticipated to exceed $100 million and will be the single largest capital investment in the City’s history. Capacity charges are an important mechanism for funding this critical community investment.

Capacity charges are paid at issuance of sewer connection and building permits. The upfront cost of these charges can present a significant barrier to investment, particularly for commercial businesses that generate jobs, sales tax revenue, and community amenities. The Wastewater Capacity Charge Deferral Program ("Program") is established to encourage targeted commercial development in specific commercial nodes by spreading the payment obligation over three (3) years while ensuring the City ultimately recovers 100% of required capacity charges. Eligible projects would include new commercial construction, commercial redevelopment or expansion, and changes of use that trigger a new or increased wastewater capacity charge.

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2. PROGRAM STRUCTURE

2.1 Payment Schedule
Eligible developments may pay Wastewater Capacity Charges under this Program as follows:

Payment Amount / Timing
Year 0 – At Permit Submittal 25% of total Wastewater Capacity Charges due (1/4 of total charge)
Years 1–3 – Annual Installments 25% of original total charge is due on each anniversary of the permit issuance date (three installments)
Interest Interest accrues at a fixed rate set at the time of the first payment on the deferred balance based on the City's
investment portfolio yield rate, applied to the
outstanding principal.

Total City Recovery 100% of Wastewater Capacity Charges plus accrued interest over the three-year period. The program is firstcome first-serve, until the deferral amount reaches a maximum of $300,000 cumulative.

2.2 City Subsidy / Cash Flow Assistance
To facilitate permit issuance without requiring full upfront payment, the City will book 75% of the Wastewater Capacity Charge as a loan payable back to the Wastewater Enterprise Fund on behalf of the approved developer/property owner at the time of permit issuance. This advance is not a grant — it is a bridge loan that the developer is obligated to repay in full over the three remaining annual installments, together with accrued interest. This arrangement will promote targeted commercial development without impacting Wastewater Enterprise Fund balance needed to pay for ongoing critical wastewater investments.

2.3 Security Requirement
As a condition of Program participation, the developer/property owner shall execute a Promissory Note and Deed of Trust against the subject property, securing repayment of all deferred amounts and accrued interest. The Deed of Trust and an Owner’s Notice of Intent to Transfer shall be recorded in the Official Records of San Luis Obispo County prior to permit issuance.

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3. ELIGIBILITY REQUIREMENTS

3.1 Eligible Zoning Districts
Eligible properties must be located within one of the following zoning districts:
• Downtown Commercial (DC)
• Commercial (CI)
• Commercial Innovation (CI)
• Mixed Use 4 (MU-4)

3.2 Eligible Project Types
The Program is available for projects whose wastewater capacity charges exceed $25,000 and include the following project types:
• Commercial redevelopment, expansion, or change of use that triggers a new or increased Wastewater Capacity Charge
• Mixed-use projects with a commercial component (residential components are ineligible)

3.3 Eligible Uses / Business Types
The Program targets uses that activate the community, generate local economic benefit, and/or provide services and amenities to Atascadero residents. Priority will be given to, but is not limited to:
• Restaurants and food service establishments
• Entertainment venues, breweries, tasting rooms, and event facilities • Other commercial uses as determined by the City Manager to be consistent with Program goals. Decisions of the City Manager are not appealable.

Because tenants are not always committed at the time of permit issuance, if the deferral is in place and a tenant doesn’t meet the criterion for the program, the loan is immediately payable.

3.4 Additional Eligibility Criteria
To qualify for the Program, an applicant must:
• Be in good standing with the City of Atascadero (no delinquent fees, taxes, or liens) • Demonstrate financial capacity to meet the annual installment obligations, as determined by the City

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• Hold or be acquiring fee title on the subject property • Agree to execute an Owner’s Notice of Intent to Transfer, a Promissory Note, and Deed of Trust as security

4. APPLICATION AND APPROVAL PROCESS
The following steps govern Program application and approval:

1. Pre-Application Meeting. Applicant meets with City staff to confirm project eligibility and discuss Program terms.

2. Application Submittal. Applicant submits a completed Program application, project description, and any supporting financial information requested by the City.

3. Staff Review. City staff reviews the application for completeness prior to City Manager and Administrative Services Director consideration.

4. City Manager and Administrative Services Director Approval. The City Manager and Administrative Services Director will consider and approve/deny the deferral agreement.

Findings shall include that the project is consistent with Program Eligibility Criteria and serves a public benefit.

5. Agreement Execution & Recordation. Following approval, applicant executes the Deferral Agreement, Promissory Note, an Owner’s Notice of Intent to Transfer, and Deed of Trust.

These will be recorded prior to permit issuance.

6. Permit Issuance. Upon payment of the initial 25% installment and recordation of security documents, the City issues the building permit.

5. TERMS AND CONDITIONS

5.1 Default
If a developer fails to make any required annual payment within thirty (30) days of its due date, the City may declare the full outstanding balance immediately due and payable and may exercise all remedies available under the Deed of Trust and applicable law.

5.2 Sale or Transfer of Property
During the payback period, the applicant is obligated to inform the City of their intent to transfer the property. In the event the subject property is sold or transferred prior to full repayment, the outstanding balance of loan charges and accrued interest shall become immediately due and payable at close of escrow, unless the City, in its sole discretion, approves assumption of the agreement by the buyer.

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5.3 Program Capacity and Availability
Participation in the Program is subject to annual Program capacity limits established by the City Council as part of the budget process. The City reserves the right to suspend, modify, or discontinue the Program at any time. Approvals already granted will be honored for the term of the executed agreement. Payment of the fees for a certain type of business vest the number of EDUs paid. If a qualified business leaves during the repayment period, there is no credit for a less-intensive use that replaces it.

5.4 Prevailing Wage
The parties acknowledge that deferral of Wastewater Capacity Charges under this Program does not constitute a payment of public funds for the Project. Developer is absolutely bound to pay all required charges. The loan program is a financing convenience only. Developer and City each acknowledge they have separately investigated California Prevailing Wage Law requirements applicable to this arrangement.

6. PROGRAM ADMINISTRATION
The Program shall be administered by the Community Development Department in coordination with the Directors of Administrative Services and Public Works. The City Manager or designee is authorized to run credit checks, develop application forms, create standard agreement templates and administrative procedures consistent with these guidelines.

Annual installment billing and collections shall be the responsibility of the Administrative Services Department. The City shall maintain a register of all active loan agreements and the Economic Development Manager shall report Program status to the City Council annually.

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CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item G2
Department: Public Works
Date: 10/13/26
Placement: Management
Report
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: Wastewater Treatment Plant Project Updates and Phase 2 Preliminary Design Authorization
RECOMMENDATIONS:

Council:

REPORT IN BRIEF:

City staff has been managing multiple wastewater planning and design projects since last presenting to Council in November of 2025. These efforts are briefly outlined below and will be discussed in detail in the staff report:

1. Completion of Phase 1 (Process Selection) of the Wastewater Reclamation Facility (WRF) Replacement Project.
 Overview of shortlisted secondary treatment process alternatives  Recommendation to proceed with MBBR as the selected secondary treatment process and Belt Filter Press (BFP) as the solids handling process
 Recommendation to authorize Black & Veatch to proceed with Phase 2 (Preliminary Design Report and Construction Cost Estimate) work scope

2. WSC evaluation and recommendations for WRF Interim Improvements to prolong the existing plant’s useful life

3. Atascadero State Hospital (ASH) Connection Status Wastewater User Classification Study Wastewater Rate Study Update

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The City Manger’s Task Force on Wastewater continues to meet and has very helpful in reviewing and providing feedback on the items included in this report. The task force supports the recommendations outlined in this report.

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 services are generally concentrated in the City’s core, where approximately 2,000 of the roughly 15,000 acres are connected to the system. Within this service area, roughly 5,500 parcels depend on City wastewater service, while the remainder of the community is served by private on-site septic systems. Wastewater services are a long-term community investment that supports public health and safety, economic prosperity, and efficient land use for residents, businesses, and public facilities.

City staff is currently managing multiple planning and design efforts focused on ensuring the long-term viability and sustainability of the wastewater treatment system. Although Atascadero has provided wastewater collection and treatment for many decades, increased development and evolving regulatory requirements have driven significant infrastructure expansion over the past century. Major growth in the 1970’s and 1980’s, combined with the implementation of the federal Clean Water Act, resulted in the most substantial expansion of the collection system and construction of the existing Wastewater Reclamation Facility (WRF) in 1983. Continued growth over the last 40 years, along with new State regulatory requirements adopted in 2020, now necessitate a transition to a modern treatment process and targeted upgrades to the collection system. To fund these improvements, the City must also evaluate and update the wastewater rates in a fair, equitable, and transparent manner. Over the past five years, staff have been evaluating alternatives and charting a viable pathway forward for major improvements and modifications to the Wastewater Treatment Plant (WWTP) and selected portions of the collection system. These improvements are required to comply with new regulatory discharge requirements and to expand treatment capacity to support future City growth and system expansion.

The most significant driver of change is the new regulatory framework established by the Central Coast Regional Water Quality Control Board (RWQCB). On September 25, 2020, the RWQCB adopted General Waste Discharge Requirements (WDR) Order No. R3-2020-0020 for domestic wastewater systems with flows greater than 100,000 Gallons per Day (WDR General Permit). The City applied for enrollment in December 2021 and was formally enrolled on June 6, 2023. The General Permit imposes stringent effluent discharge limits for land application, effectively prohibiting continued reliance on the existing lagoon treatment system and requiring construction of a new wastewater treatment facility. At minimum, compliance will require replacing the existing stabilization pond process with a modern mechanical treatment system capable of reliably removing nitrogen and organic material.

Following a comprehensive RFP process in the summer 2025, Black & Veatch was identified as the most qualified consultant for design engineering services for the Wastewater Treatment Plant Replacement Project. In November 2025, Council awarded a single contract for all project phases totaling $9,749,491, while authorizing the consultant to begin only Phase 1 work, process selection and preliminary cost estimating, in the amount of $520,840. The project is structured into four project phases, each with its own timeline and scope of work. This phased approach allows the City to manage limited wastewater fund reserves responsibly while establishing clear checkpoints for progress updates, decision-making Council and stakeholder engagement.

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TABLE 1 – WRF DESIGN AND CONSTRUCTION SCHEDULE
11/12/2025 Council authorizes Phase I, “Process Selection and Preliminary Cost Estimate,” of contract with Black & Veatch
Winter 2025-
Fall 2026
Evaluate alternatives and select cost-effective, robust and adaptable treatment process and prepare preliminary cost estimate.

Conduct Collection System Inflow & Infiltration Study (Carollo) Initiate Customer User Classification Study (HDR)
10/13/2026 Council consider authorizing Phase II, “Preliminary Design,” of contract with Black & Veatch
Fall-Winter
2026
Develop preliminary design report for WWTP upgrade, complete building facilities analysis, and complete Class 4 Opinion of Probable Cost Initiate Wastewater Rate Study based on refined WWTP cost estimate (Consultant TBD) and Customer User Classification Study
Spring 2027
Council consider authorizing Phase III, “Detailed Design,” of contract with Black & Veatch
Spring 2027 -
Fall 2028 Preparation of Final Engineering Plans, Specifications and Estimates.

Fall 2028
Council consider awarding necessary construction contracts, and consider authorizing Phase IV, “Bid Phase and Engineering Services During Construction,” of contract with Black & Veatch
Fall 2028 -
Winter 2030 WWTP Construction

ANALYSIS
WRF Secondary Process Alternatives Analysis and Selection As noted above, the new WRF must include a modern secondary treatment process capable of reliably removing nitrogen and organic material from the wastewater stream to meet new permit requirements.

In addition, the existing facility is reaching its operational limits; average daily flows are now effectively at 100% of current treatment capacity. With several major development projects expected to come online in coming years, coupled with Atascadero State Hospital currently in discussions with the City to connect to the system, the WWTP will soon be unable to accommodate both average and wet weather flows.

To address these needs, the evaluation of secondary treatment process options was conducted with significant rigor and structured into five separate stages, as outlined below. At each stage, Black & Veatch’s treatment process experts refined the list of viable alternatives based on technical analysis and input from City and WSC staff. The final Alternatives Analysis Technical Memorandum summarizes the full evaluation and recommends moving forward with Moving Bed Biofilm Reactor (MBBR) technology as the preferred treatment process for the new WRF.

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STAGE PURPOSE & INTENT
Background Review and Scenario
Planning Workshop (February 2026)
Establish City-specific background information. What
are the City’s current and future flows? What are the
key needs and priorities?
Technology Identification Workshop
(March, 2026)
Explore all secondary treatment and solids handling
options. Eliminate those that don’t fit the City’s needs or provide specific value.

Alternatives Analysis Workshop
(June 2026)
Incorporate input from City’s project team to refine and prioritize the selection criteria.

Sensitivity Analysis (July 2026) Compare the final alternatives under a variety of assumptions; provide detailed economic analysis.

Site Tours (August 2026) Tour operating MBBR and MLE treatment plants; discuss pros and cons with wastewater operators.

The primary objective of the Process Selection Phase was to identify a reliable, cost-effective treatment solution for the new WRF that meets current and future regulatory requirements while accommodating the City’s projected growth. Through the Background Review and Scenario Planning effort, the project goals were further refined to the following:
 Achieve compliance with updated effluent limits, particularly total nitrogen.  Provide sufficient treatment capacity to meet projected flows, targeting approximately 2.1 million gallons per day (MGD) average dry weather flow (ADWF) under near-term conditions (2030) and 3.1 MGD ADWF under long-term conditions.
 Improve operational reliability and process control compared to the existing lagoon-based system.
 Maintain flexibility to adapt to evolving regulatory conditions, flow variability, and future expansion needs.
 Support future recycled water production and beneficial reuse opportunities.  Enhance biosolids handling capabilities to meet anticipated regulatory changes and future enduse strategies.

The Technology Identification Workshop evaluated 13 secondary treatment technologies and 14 solid handling technologies. The initial screening focused on identifying potential “red flags” based on criteria such as technology maturity, O&M complexity, O&M cost, nitrogen removal, WRF footprint, and capital costs, among others. Following this initial screening, five secondary treatment and two solids handling technologies were advanced for further review. The secondary treatment processes included Modified Ludzack-Ettinger (MLE), Oxidation Ditch, Membrane BioReactor (MBR), Aerobic Granular Sludge (AGS) and Moving Bed Biofilm Reactor (MBBR). The solids handling technologies carried forward were the Belt Filter Press and the Screw Press.

The subsequent Alternatives Analysis Workshop conducted a more detailed evaluation of the remaining technologies using seven weighted criteria: Reliability and Resiliency, Operability and Maintainability, Footprint, Compatibility with other processes, Constructability, Regulatory Compliance & Future Adaptability, and Community Acceptability. Weighting for each criteria was informed by a survey completed by project team members from the City Manager’s Office, Administrative Services and Public Works, along with WSC program management staff.

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Following the Alternatives Analysis Workshop, the Belt Filter Press was identified as the preferred solids handling technology, and secondary treatment alternatives were narrowed to MLE, MBBR and Oxidation Ditch. It is important to note that cost considerations were intentionally excluded up to this point to ensure that only the most technically suitable and operationally reliable options are advanced for final evaluation. During the final stage, the Sensitivity Analysis, life cycle costs were incorporated. The economic evaluation calculated Net Present Value (NPV) for each alternative, accounting for initial capital costs, buildout capital costs, additional labor needs, electricity consumption, equipment replacement costs, and chemical input costs. Costs common for all alternatives, such as design services and support facilities, were excluded to allow for an unbiased comparison. In this analysis, MBBR emerged as the most cost-effective option, offering lower initial capital costs and the ability to costeffectively increase future treatment capacity through the simple addition of media.

After ten months of evaluation, City staff, WSC and Black & Veatch concur that MBBR best meets the project objectives by providing a reliable, adaptable, and cost-effective treatment solution that satisfies current and future regulatory requirements while supporting projected growth. Site visits to existing MBBR plants further reinforced this conclusion, as City engineering and operations staff were impressed with the technology’s operational simplicity, resilience to influent variability, and overall system stability.

It is recommended that that Council direct staff to proceed with selection of MBBR as the secondary process, and authorize Phase 2 of the Black & Veatch contract. As noted in the November 2025 staff report, scopes and fees for Phases 2 through 4 would be evaluated and potentially modified as necessary to reflect the secondary process selected and pertinent new information. Black & Veatch revised Phase 2 scope to reflect additional scope due to the selection of MBBR, the City request to provide design evaluation and considerations to allow future conversion to IFAS, a more extensive evaluation of repurposing the facultative lagoon as an equalization basin, and additional project management time effort required to support City staff. This Phase 2 scope revision and $150,000 fee increase has been reviewed by City and WSC staff and found to be fair and reasonable for the expanded scope.

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WRF Interim Improvements
As outlined in Table 1, design and construction of the new WRF is anticipated to be completed no earlier than 2030. The City has already committed to accepting wastewater flows from planned developments that exceed the existing facility’s treatment capacity, and will also need sufficient time with updated rates in place to generate the revenue necessary to fund the WRF improvements. To ensure adequate system performance during the interim period, WSC evaluated short-term improvement options with the following objectives:
 Address near-term maintenance condition concerns.
 Ensure sufficient hydraulic throughput at the WRF over the next five years.  Maintain adequate treatment performance during the same timeframe.

WSC evaluated interim improvement alternatives with a strong emphasis on minimizing potential sunk cost expenditures. City staff, WSC and Black & Veatch collaborated closely to collect detailed operational and treatment data across the existing WRF process train to identify targeted improvements, organized into two bid packages to optimize construction timing and sequencing:

Bid Package 1 (Maintenance and Hydraulic Capacity):
 Repair asphalt along the upper liner/wave-impact zone of the aeration pond  Construct new controlled overflow from the aeration pond to the facultative lagoon Bid Package 2 (Hydraulic Capacity and Treatment Performance):
 Add dedicated effluent pump to the former effluent low lift pump station to overcome gravity constraint and allow increased depths in percolation ponds  Upgrade recirculation pumps at the effluent low lift pump station to increase treatment capacity WSC has submitted proposals to complete the design for both Bid Package 1 and Bid Package 2, as these services were not included in their initial program management scope. Total fee proposal for these services are $81,529 for Bid Package 1 and $240,778 for Bid Package 2. Included in the fee for Bid Package 2 is full construction management services due to the technical complexity of the project. Staff recommends authorizing the City Manager to execute a contract amendment with WSC for $322,310 to prepare these bid packages and provide construction management, as they are uniquely positioned to complete the design efficiently given their extensive familiarity with the project and their strong engineering design qualifications. Once the designs are completed, construction of the interim improvements will be publicly advertised for bid and returned to Council for contract award. Staff anticipates bringing Bid Package 1 forward for Council consideration before the end of 2026, with Bid Package 2 anticipated for award in spring of 2027.

Atascadero State Hospital (ASH) Connection Status Update Negotiations with ASH and the Department of General Services (DGS) are progressing along two parallel tracks. Discussions regarding ASH’s connection to the City’s wastewater system began more than five years ago, and City and State staff continue to work toward a mutually acceptable agreement for ASH to discharge wastewater to the WRF for treatment and disposal. Most major terms have been reached, with only a few details still under review. As a condition of connection, ASH will be required to screen its wastewater prior to discharging to the City’s collection system and will be responsible for paying both

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capacity charges at initial connection and ongoing service charges. Council and the Wastewater Task Force have provided clear direction that ASH must pay its fair share, calculated based on flow and wastewater strength (capacity charge) and on Equivalent Dwelling Units (EDUs) for monthly service charges.

Separately, staff is negotiating with ASH and DGS for the potential purchase or long-term lease of approximately 15 acres of undeveloped State-owned property adjacent to the WRF. This property is needed to support expansion of the percolation ponds required for wastewater disposal. While City can likely accommodate current flows with its existing ponds, additional disposal capacity will be necessary to manage projected future flows. Securing this property is critical, as insufficient percolation capacity would require the WRF to transition to a surface discharge (NPDES) permit, which carries significantly more stringent effluent constituent requirements. Once negotiation with the State are complete, covering both ASH connection agreement and property acquisition or lease, staff will bring the finalized agreement to Council for consideration and approval. These actions are anticipated to come forward in 2027, though the precise timeline remains uncertain.

WASTEWATER USER CLASSIFICATION STUDY
The intention of this staff report is to provide updates on all the ongoing wastewater planning projects, most of which will supply critical information during the setting of future wastewater rates. The graphic below shows these multiple elements and how they feed into the rate setting process.

A critical element to setting fair rates is completion of a Wastewater User Classification Study. The User Classification Study incorporates available water use data, wastewater strength averages by customer type, land uses, and measured and modeled wastewater flows to establish proportional connection and service fees for every individual wastewater customer. The last time a similar effort was undertaken to establish wastewater user classes was in the mid-1990’s. Over the ensuing 30 years significant changes

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to both Atascadero’s land use makeup and wastewater generation trends have occurred. Amongst other changes, the City’s percentage of commercial wastewater users has risen, and water conservation measures have significantly shifted the volume and strength of wastewater by land use.

In December of 2025, City Public Works contracted with HDR Engineering to complete a new Wastewater User Classification Study. This work includes evaluation of existing user classifications, evaluation of land uses and commercial, industrial and residential users, and development of a new User Classification Study that recommends an expanded list of user classifications with fair and equitable fees based on wastewater collection system and treatment demand. This is a particularly complicated assessment within the City since Atascadero is not the water purveyor. Nearly all local agencies, as the water purveyor, have water use data by parcel so are able to accurately charge individual users. The Atascadero Mutual Water Company has provided water use by user classification, but has declined to provide parcel-by-parcel data. As a result, HDR has recommended the City continue to establish EDU’s based on average water use and strength data by customer classification.

Staff expects that HDR will provide draft recommendations by the end of October. New user classifications and proposed EDU’s will be reviewed by staff and taken to the Wastewater Task Force for discussion. It is expected that there will be adjustments needed after review, with the goal of having final recommendations in early 2027.

WASTEWATER RATE STUDY
All of the ongoing reports, studies and preliminary WRF design are intended to provide anticipated future wastewater costs, and resulting revenue needs. Combining revenue needs with established user classifications determines capacity and service charges. Wastewater rate studies must be completed at least every five years and generally require approximately six months to prepare and to meet the requirements of the Proposition 218 process. In order to meet the July deadline for setting new rates for inclusion on the property tax rolls, the Wastewater Rate Study will need to begin in December 2026 or early January 2027. If it is not possible for the Rate Study to be completed, the previous Rate Study completed in 2024 remains valid. That Rate Study recommended 18.5% annual increases, which have been approved for the last two years and could be brought to Council for the third year if needed, although it would be optimal to have a new Rate Study complete which captures true anticipated costs and revenue needs.

FISCAL IMPACT:

Adopting staff recommendations will result in the expenditure of approximately $1,082,006 from budgeted Wastewater Funds. Total budgeted funds for this project are $6,000,000 through June 30, 2027. These funds are sufficient to cover authorized expenses, including all program management, engineering design of both interim improvements and through Phase 2 of the WRF. Cost estimates of future phases of the project will be adjusted based upon the findings and recommendations of the Preliminary Design Report.

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ESTIMATED EXPENDITURES
WSC Program Management and administration $ 2,000,000
WSC Interim Improvements: Design and Construction Management 322,310 City staff time, admin., legal, etc. 250,509
Black & Veatch
Phase 1 – Process Selection and Preliminary Cost Estimate 520,840 Phase 2 – Preliminary Design Report 759,696
Phase 3 – Detailed Design* 6,532,523
Phase 4 – Engineering Services During Construction* 2,086,432 Interim Improvements – Construction* 2,000,000
WWTP Secondary Treatment Improvements and Modernization Project* TBD *requires future Council authorization and funding
Total Estimated Expenditures: $14,472,310

BUDGETED FUNDING
Wastewater Funds (FY 2025-2027 Budget) $6,000,000
Total Estimated Funding Sources $6,000,000

FUTURE FUNDING NEEDS (DESIGN)
Wastewater Funds (FY 2027-2029 Budget) $6,472,310
Wastewater Funds (FY 2029-2031 Budget) 2,000,000
Total Future Funding $8,472,310
ALTERNATIVES:

Council may direct staff to reevaluate WRF secondary process alternatives or select a process other than MBBR, but staff does not recommend this since the process selection has been thorough and there is broad agreement between City, WSC and Black & Veatch staff that this selection provides the best value to the City of Atascadero.

REVIEWED BY OTHERS:

This item has been reviewed by the Administrative Services Director.

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

None

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Atascadero City CouncilOctober 13, 2026

Atascadero City Council
October 13, 2026