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HomeMy WebLinkAbout6725-6735RESOLUTION NO. 6735 (1989 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO GRANTING APPROVAL OF TENTATIVE TRACT NO. 1833 LOCATED AT 960 NIPOMO STREET BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. That this council, after consideration of the tentative map of Tract 1833 and the Planning Commission's recommendations, staff recommendations, and reports thereof makes the following findings: L The design of the tentative map and proposed improvements are consistent with the general plan. 2. The site is physically suited for the type and density of development allowed in an Office with Historical overlay zone. 3. The design of the tentative map and the proposed improvements are not likely to cause serious health problems, substantial environmental damage or substantially and unavoidably injure fish or wildlife or their habitat. 4. The design of the subdivision or type of improvements will not conflict with easements for access through (or use of property within) the proposed subdivision.' 5. The Community Development Director has determined that the proposed subdivision will not have a significant effect on the environment and has granted a negative declaration with mitigation. 6. The Architectural Review Commission has reviewed the project and approves of the site layout. SECTION 2. Conditions. The approval of the tentative map for Tract 1833 be subject to the following conditions: 1. The subdivider shall submit a final map for approval and recordation. 2. Subdivider shall provide individual water services for each unit. Meters shall be clustered at property frontage, to the approval of the City Engineer. 3. Subdivider shall extend individual gas and electrical services and metering for each unit, to the approval of affected utilities and the City Engineer. 6735 r^' C Resolution No. 6735 (1989 Series) Tract 1833 Page 2 4. Final map shall note a blanket easement over the common lot area, except under the structure, for underground public utilities serving the .site, to the approval of the City Engineer and affected utility agencies. 5. The subdivider shall establish covenants, conditions, and restrictions for the regulation of all buildings and facilities. These CC &R's shall be approved by the Community Development Department and administered by a property owners' association. 6. There shall be no change in city- regulated provisions of the CC&R's without prior approval of the community Development Department. 7. The subdivider shall include the following provisions in the CC&R's for the tract: a. Property owners' association shall be created to enforce the CC &R's and provide for professional, perpetual maintenance of common areas including, but not limited to, the driveway, parking lot, landscaping, sewer, utilities and building exteriors. b. The right shall be granted to the city to maintain common areas if the property owners' association fails to do so and to assess said association for expenses incurred. C. All parking spaces provided in the project shall be available for use by all of the individual owners. 8. A qualified archaeologist shall be present at the site during grading operations. If grading or other operations unearth archeological resources, construction activities shall cease, to allow the archeologist to record the extent and location of the discovered materials. Disposition of artifacts shall comply with state and federal laws. Costs of any archeological work shall be the applicants' responsibility. 9. The applicants shall have a site assessment performed by a qualified environmental or soils engineering consultant. If the soil is determined to be contaminated, the property owner will be required to remove the contamination, to the approval of the city's Hazardous Waste Inspector. 1.0. Prior to occupancy, the City Engineer must be supplied with written certification by a registered land surveyor or civil.engineer that the lowest floor elevation or floodproofed elevation complies with the Flood Damage Prevention Regulations. Resolution No. 6735 (1989 Series) Tract 1833 Page 3 On motion Of Councilman Roalman ,seconded by Councilman Reiss and on the following roll call voter AYES: Councilmembers Roalman, Reiss, Rappa and Mayor Dunin NOES None ABSENT: Councilwoman Pinard the foregoing resolution was passed and adopted this 12th day of December 1989. APPROVED: MayoI Ron Dunin V3 0 i C C RESOLUTION NO. 6734 (1989 Series) RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING PLANS AND SPECIFICATIONS FOR LAGUNA LAKE PARK IMPROVEMENTS, AUTHORIZING STAFF TO ADVERTISE FOR BIDS AND AUTHORIZING CAO TO AWARD CONTRACT TO SUCCESSFUL BIDDER WHEREAS, the City of San Luis Obispo is desirous of continuing public improvements at Laguna Lake Park; and WHEREAS, funds for these improvements are available through grant monies received from the Land and Water Conservation Fund and Park In -Lieu Fees ; NOW THEREFORE BE IT RESOLVED, that the City Council'hereby approves the Plans and Specifications for City Plan No. N -59Y, Laguna Lake Park Improvements, directs staff to advertise for bids and authorizes the CAO to award the contract to the low bidder if bids are below or equal to the Engineer Estimate. On motion of Councilwoman Rappa and on the following roll call vote: s seconded by Councilman Roalman AYES: Councilmembers Rappa, Roalman, Reiss and Mayor Dunin NOES: None ABSENT: Councilwoman Pinard the foregoing Res,glution was passed and adopted this 12th day of December 1989. R n Dunin ATTEST City Cldh Pam Voges APPROVED: Director of inance irecgor or Parks and Recreation 6734 �C �U i 0 C' C' RESOLUTION NO. 6733 (1989 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING PLANS AND SPECIFICATIONS FOR PHASES I & II. OF FRENCH PARK, AUTHORIZING STAFF TO ADVERTISE FOR BIDS AND AUTHORIZING CAD TO AWARD CONTRACT TO SUCCESSFUL BIDDER WHEREAS, the City of San Luis Obispo is desirous of beginning public improvements at French Park; and WHEREAS, funds for these improvements are "available in the Park In- Lieu reserves and the Capital Improvement reserves; NOW THEREFORE BE IT RESOLVED, that the City Council hereby approves the Plans and Specifications for City Plan No. M- 57Y,.E. A. French Park, Phases I & I.I, directs staff to advertise for bids and authorizes the CAO to award the contract to the low bidder if bids are below or equal to the Engineer Estimate. On motion of Councilwoman Rappa and on the following roll call vote: Seconded by Councilman Roalman AYES: Councilmembers Rappa, Roalman, Reiss and Mayor Dunin NOES: None ABSENT: Councilwoman Pinard the foregoing Resolution was passed and adopted this 12th day of December_ 1989, ayor Ron Dunin ATTE T: (A City lerk Pam Vogel 6733 J C\ U. 0 RESOLUTION NO. 1 6732 (1989 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING PLANS AND SPECIFICATIONS FOR WASTEWATER TREATMENT PLANT, CITY PLAN NO. P -38S AND AUTHORIZING STAFF TO ADVERTISE FOR BIDS WHEREAS, the Anaerobic Digester Cleaning Project is a project required as scheduled maintenance of major plant equipment at the City's Wastewater Treatment Plant; and WHEREAS, Anaerobic Digesters are used for the treatment and stabilization of sewage sludge; and WHEREAS, this project is three separate phases, one phase for each digester requiring a separate contract; and WHEREAS, Council approved funding for this project in the 1989 -91 Financial Plan on July 24, 1989. NOW, THEREFORE, BE IT RESOLVED adopting a resolution approving plans and specifications for Wastewater Treatment Plant, Digester 1 (Phase 1, $25,000); Digester 2 (Phase 2, $15,000); Digester 3 (Phase 3, $15,000) Empty and Clean Projects, City Plan No. P -38S; authorize staff to advertise for bids; and authorizing City Administrative Officer to award contracts if successful bids are equal to or below engineer's estimates. On motion of Councilwoman Rappa seconded by Mayor Dunin and on the following roll call vote: AYES: Councilwoman Rappa, Mayor Dunin, Councilmembers Reiss and Roalman NOES: None ABSENT: Councilwoman Pinard the foregoing Resolution was passed and adopted this 12th day of December, 1989. MAYOR RON DUNIN ATT CITY LERK PAM VQ5ES 6732 Resolution No. (1989 Series) APPROVED: City AI-mist 47zit, 1 ;06 - 0 If f, ic I er Utilities.Director lic Works Director 6111w /Z e4 � z ewater.Division Manager 4 VY ;,.MEETING AGENDA RESOLUTION NO. (1989 Series) Re!;otution of AppReciAtion A Resolution of the City of San Luis Obispo Expressing Gratitude and Appreciation to Vicki J. Finucane for Her Dedicated Service to the City and its Citizens WHEREAS, Vicki Finucane has loyally served the City of San Luis Obispo as both Assistant City Attorney and Acting City Attorney; and WHEREAS, her outstanding service was during a time when the Council faced several controversial issues, all of which required quality legal "representation; and WHEREAS, Vicki provided that service to the Councii.in such a fashion that her peers voted her an outstanding City Employee award•, and WHEREAS, her accomplishments were above and beyond the call of duty and occurred at a time when she was short handed in legal staffing; and WHEREAS, her spirited and vivacious personality will be missed by those of us who have enjoyed working with her. NOW, THEREFORE, BE IT RESOLVED, that the City Council wishes to express its gratitude for her numerous accomplishments and outstanding performance which she has given to the City of San Luis Obispo; and wish Vicki well in her future endeavors. On the motion of Councilmember seconded by Councilmember, and -on the following roll call vote: Ayes: Noes:: Absent: the foregoing Resolution of Appreciation was passed and adopted this day of . 1989. MAYOR RON DUNIN ATTEST: CITY CLERK PAM VOLES Z.6731 ,52-84 MEEE AGENDA /� 9 DATE /•Zf ITEM # Resolution No.673b (1989 Series) City Of sAn WIS. OBIS PO p Resotution of AppizeciAtion A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO EXPRESSING THE CITY'S GRATITUDE.AND APPRECIATION TO NANCY KNOFLER FOR HER DEDICATED SERVICE TO THE CITY AND ITS CITIZENS WHEREAS, Nancy Knofler began her career with the City of San Luis Obispo as the youngest Transit Manager in the State; and WHEREAS, she is leaving the City of San Luis Obispo as the youngest Transit Manager in the State; and. UHEREAS, she has distinguished herself as an innovator in regional transit cooperation, grant proposals for facilities construction, and many other areas, not limited to being the first Transit Manager to have a bus park at the gas pumps of a local service station during a daily run; and WHEREAS, she always displayed the "horse" sense to avoid controversial methods of transportation; and WHEREAS, her "bouncy" personality will be leaving the "Courts" of San Luis Obispo for the Streets (and tracks) of San Francisco; NOW, THEREFORE, be it resolved', that the City Council wishes to express its gratitude for her numerous accomplishments and outstanding performance which she has given to the City of San Luis Obispo during the past 6 -1!2 yearrs, and wish Nancy well in her new position. On the motion of Councilmember , seconded by Councilmember , and on the following roll call vote: Ayes: Noes: Absent: the foregoing Resolution of Appreciation was passed and adopted this ,day of November, 1989. ATTEST: City Clerk Pam Voges Mayor Ron unin Ea .V ao REVISED RESOLUTION NO.6 7 2 9 (1989 Series) • RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO DENYING • MINOR SUBDIVISION AT 124 HIGHLAND DRIVE (MS 89 -116). BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. That this council, after consideration of public testimony, the minor subdivision request MS 89 -116, the advisory body recommendation, staff recommendations and reports thereon, hereby denies the minor subdivision subject to the findings listed below: 1. The design of the tentative map is inconsistent with General Plan policies encouraging residential development to be designed to be compatible with present and potential adjacent land uses. 2. The design of the tentative map would result in development which is inconsistent with the prevailing neighborhood character, since it would necessitate a common driveway to serve the lots, and result in closer spacing between houses on adjacent lots than is typical for the neighborhood. 3. The proposed minor subdivision conflicts with the intent of private deed restrictions for Tract 164, intended to establish standards for the location, design, and use of property and to maintain neighborhood compatibility within the tract. 4. At its May 4, 1989 meeting, the Cultural Heritage Committee found that the site and the structure at 124 Highland Drive are culturally and historically significant; and that to preserve their historic value, the site should not be further subdivided. On motion of Councilwoman Rappa ,seconded by Councilman _ Roalman and on the following roll call vote: AYES: Councilmembers Rappa, Roalman, Pinard, and Mayor Dunin- NOES: Councilman Reiss ABSENT: None 6729 Page 2; Resolution No. 6729 the foregoing resolution was passed and adopted this 5th day of December 1989. kbN-DUNIN . W . . W W . . . . . W I APPROVED: 9 fr . . RESOLUTION NO. 672.8 (1989' Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING AN INTER - COMPANY TRANSFER OF THE CABLE TELEVISION FRANCHISE FROM SONIC CABLE TELEVISION TO SONIC CABLE LEASING, BOTH WHOLLY OWNED SUBSIDIARIES OF SONIC COMMUNICATIONS. Whereas, the City of San Luis Obispo approved an Ordinance No. 790 granting a fifteen year franchise agreement to Sonic Cable Television for community antenna television services, commencing April 1, 1978. Whereas, Sonic Communications, owner of Sonic Cable Television and Sonic Cable Leasing, has requested to reassign the franchise agreement from Sonic Cable Television to Sonic Cable Leasing to �. aid in restructuring corporate operations. Whereas, the reassignment only involves a change in legal title to the franchise agreement and will not effect cable service in the City of San Luis Obispo. Whereas, the current ordinance granting the franchise agreement to Sonic Cable allows for the reassignment of the franchise agreement subject to meeting conditions setforth in the ordinance and obtaining City Council consent. Whereas, Sonic Communications has demonstrated through an Officer's Certificate (Exhibit A) , a legal opinion prepared by the law firm representing Sonic Communications (Exhibit B) , and a Financial Statement (Exhibit C) , that the reassignment to Sonic Cable Leasing meets the conditions prescribed in the ordinance. Now, therefore, be it resolved by the Council of the City of San Luis Obispo as follows: Section 1. All benefits and obligations granted to Sonic Cable Television by the provisions of the franchise agreement, Ordinance No. 790 are hereby transferred to Sonic Cable. Leasing, as of the date of this Resolution. Section 2. Sonic Cable Leasing, franchise, hereby accepts the terms of the aforesaid transfer of rights and duties and agrees to perform all obligations imposed upon the .franchisee by the terms of said franchise agreement, Ordinance No. 790. 6728 G PAGE 2: Resolution No. 6728 On motion of Councilwoman Rappa seconded by rminr;lman Roalman , and on the following role call vote: AYES: Councilmembers Rappa, Roalman, Pinard, Reiss and Mayor Ron Dunin NOES None ABSENT: None the foregoing Resolution was passed and adopted this 5th day of December 1989 ayor Ron Dunin ATTEST: city AF lerk Pam" gds APPROVED: City A - ninistrative Officer 1 W Will`� r/ i J J/ O. lli'Lli�y 13:SU ��r- 2iSuli ACCEPTANCE OF FRANCHISE CITY OF SAN LUIS OBISPO SONIC CABLE LEASING CORPORATION, an Alaska Corporation, hereby agrees and undertakes during the life of the transferred franchise, to perform all of the terms, conditions, provisions, and obligations thereof.. SONIC CABLE LEASING CORPORATION further agrees to comply with the restrictions of said franchise and the laws and ordinances of the City of San Luis Obispo, and be subject to all rights, powers and privileges reserved and reservable to the City of San Luis Obispo and its officers as in said laws and ordinances contemplated and provided. Dated: November 21, 1989 SONIC CABLE LEASING CORPORATION' an Alaska Corporation Presi en Secretary Z 002 OFFICER'S CERTIFICATE ' FOR SONIC COMMUNICATIONS Christopher Cohan certifies that: 1. He is the President of Sonic Communications, Sonic Leasing Corporation and Sonic Cable. Television of San Luis Obispo. 2. He is the sole shareholder of Sonic Communications. Sonic Communications is the sole shareholder of Sonic Cable Television of San Luis Obispo and the sole shareholder of Sonic Leasing Corporation. 3. Because of the common ownership by Sonic Communications, Sonic Leasing Corporation has the same financial resources available to it as are available to Sonic Cable Television of San Luis Obispo. I further declare under penalty of perjury under the laws of the State of California that the matters set forth in this certificate are true and correct of my own knowledge. Dated: November 17, 1989 37:S1oCert.snc 111489 i w ���•� . - EXHIBIT "A" WARREN A. SINSHEIMER III ROBERT K. SCHIEBELHLIT K. ROBIN. BAGGETT MARTIN J. TANGEMAN MARTIN P. MOROSKI DAVID A. JUHNKE M. SUZANNE FRYER STEVEN J. ADAMSKI DIANE W. MOROSKI CYNTHIA CALDEIRA JALYNNE GILES MICHAEL R PETERSON SCOTT E. LEWIS ROBERT R. ORELLANA ALAN D. SHEWELL OF COUNSEL D. JAN DUFFY THOMAS M. DUGGAN, CG SINSHEIMER. SCHIEBELHUT & BAGGETT A PROFESSIONAL CORPORATION ATTORNEYS AT LAW POST OFFICE BOX 31 SAN LUIS OBISPO. CALIFORNIA 93406 -0031 805- 541-2800 November 21, 1989 STREET ADDRESS: 1010 PEACH STREET TELECOPI ER: 805 -541 -2802 City of San Luis Obispo HAND- DELIVERED 990 Palm Street San Luis Obispo,_California 93401 Attention: City Attorney Re: Inter- Company Transfer of Cable.Franchise Dear Sir: We are counsel to Sonic Communications_, Sonic Cable Leasing Corporation and Sonic Cable Television of San Luis Obispo (collectively, the "Corporations "). We have been asked to render this opinion to you in connection the proposed transfer of a cable television franchise from Sonic Cable Television of San Luis Obispo to Sonic Cable.Leasing Corporation. As counsel to the Corporations, we are familiar with the Articles of Incorporation, Bylaws_, records -of meetings of stockholders and directors and the stock ledgers of the corporations. In connection with this opinion, we have also reviewed and relied upon an Officer's Certificate of Christopher Cohan, President of each of the Corporations. _In making our examination of the above - mentioned documents, we have assumed the conformity to the originals of all documents submitted to us as copies. We wish to advise you that Mr. K. Robin Baggett, a partner- in our firm, is a director of Sonic Communications and Assistant Secretary to each of the Corporations. Based upon and subject to the :foregoing, we hereby advise you that Christopher Cohan is the sole shareholder of Sonic Communications, and Sonic Communications is the sole shareholder of Sonic Cable Leasing Corporation and Sonic Cable Television of San Luis Obispo. This opinion is solely for the information of the addressee hereof and is not to be quoted in whole or in part or otherwise EXHIBIT "B" City of San November 21, Page 2 Luis Obispo 1989 referred to nor is it to be agency or other person without than the addressee hereof and rely on this opinion. RKS /bh e:City.Ltr filed with any other governmental our prior written consent. Other its counsel, no one is entitled to Very truly yours, 717�Rj. SCHIEBELHUT & BAGGETT �SCHIEBELHUT S w Lrtj b SONIC COMMUNICATIONS AND SUBSIDIARIES Consolidated Financial Statements March 31, 1989. . and 1988 EXHIBIT "C" r C. SONIC COMMUNICATIONS AND SUBSIDIARIES TABLE OF CONTENTS President's Letter ................_.._ ................... ............,........,,..,..1 Operations Discussion and Analysis ..__ ....................: .......__..._.........__......4 Report of Management .......................................... ..............................5 Independent Auditors' Report ..... .. .............. ............. ..............................6 C_ onsolidated Financial Statements for the Years ended March 31, 1989 and 1988: Consolidated_ Balance Sheets .. ............................... ,.... ................7 Consolidated Statements of Operations and.Accumulated Deficit.... ..:............ 8 Consolidated Statements of Cash Flows ......................... .._........._.........9 Notes to Consolidated Financial St atements ................ ..........:.:.................. 10 Supplemental Consolidating Schedules for the Year ended March.31, 190' Sheet Information ............ ............................... 16 Operations Information .....................:.................. .............................._ 17 Operating Statistics ......... : .......................................... I. .......... .............. 18 FYE FYE % Increase Perforrriance Highliehts 351/$9 331 g (in thousands) Consolidated operating revenue S 44,036 38,902 13.2 Consolidated operating expense 23,364 21,781 7.3 Consolidated operating income 20,672 17,121 20.7 Consolidated net loss (5,768) (8,870) (35.0) Net property, plant and equipment 67,226 69,565 (3.4) Number of basic subscribers 119 116 2.6 Number of pay TV subscribers 104 109 (4.6) Annual pay per view buys 315 174 81.0 Homes passed 234 240 (2.5) PRESIDENT'S LETTER To our employees and business associates: At the conclusion of our last fiscal year, I established a five point set of priorities for the company. These priorities were: BECOMfNG MORE COST COMPETITIVE As we conclude this fiscal year, the threat of re- regulation of the cable industry looms on the horizon. Much of the blame for this rests with the industry, as the subscriber has seen significant increases in the cost of cable over the past few years. Our primary approach has been to reduce costs whenever possible. To that end, we joined a programming co -op of various cable operators so that we could, collectively, bargain for programming rates comparable to the larger cable operators. We continue to be successful in aggressively pursuing methods to reduce and hold the line on the additional costs associated with the new copyright regulations and the deplorable "possessory interest" property tax, that only cable operators are assessed. Considerable time was spent at the corporate and system level standardizing our customer reporting system (CableData) to allow more accurate and timely subscriber information and reports. In order to track staffing and spending more adequately, the customer service department was established as its own cost center in our financial reporting system. CPREPARING FOR FUTURE GROWTH C The beginning of this fiscal year saw the completion of the company -wide standardization and reorganization of the previous year. It was now time to evaluate the long term direction the company should take. As we explored possible options and opportunities; it became apparent, that in every case, the restrictive nature of our existing debt structure made the actual undertaking of these opportunities unfeasible. Therefore, after much consideration, the decision was made to sell our Alaskan operation. This was a difficult decision to make because, due to the efforts of our Alaskan personnel, the Alaska system was having its most successful year since acquisition. Unfortunately, the oil industry recession of the past few gears has had a serious detrimental impact on the Alaskan economy. This has made the original projections for the Alaska system unrealistic and the existing loan structure and covenants an onerous burden that we have been unable to extricate the company from by negotiation. As a result, in bctober of 1988, the company entered into an agreement to7sell the Alaska system for 5143,000,000. This sales price is contingent on a number of factors, all of which we believe the company will achieve. The proceeds of this sale will be used to retire the existing bank and insurance company debt, which will eliminate the operating constraints that exist under the loan agreements. We believe the sate will be completed during the summer of 1989, at which time we will begin to actively pursue other financial opportunities and the establishment of financing agreements under favorable management terms. ,..E BECOMING MORE CUSTOMER ORIENTED The cable industry has seen the need to become more sensitive toward the needs of the subscriber. In years past, our customer service representatives were simply "order takers," however, cable television is in a competitive marketplace and we can no longer afford to sit back and let other entertainment options take the place of cable television. To this end. we at Sonic have taken an aggressive approach to become more consumer oriented with the introduction of intensive customer service training. In this training we are focusing on "selling" the service that best fits the customers interests, Le:, Disney for the children, HBO for sports programming, etc. Additionally, we have eliminated the packaging concept of pay services and established a simple list of services for customers to select from. We feel this allows for ease of purchase and gives the subscriber more choice. In an attempt to curtail video rentals and make movie viewing more convenient for the subscriber, we have lowered the price of our Pay - Per -View service. As a result of this price reduction, we have seen the buy rates steadily increase. It is our opinion that Pay -Per -View services will become more and more popular as - subscribers become more Pay -Per -View savvy. Not only has our customer service personnel become more service oriented, so has our technical and installation personnel. The field personnel have received customer service training by rotating in the office and taking calls from subscribers_ In turn, the customer service staff has gone in the field to observe how installations are performed. Cross training builds teamwork and promotes unity between the field and in- house personnel. We feel this comradery reflects in how we treat subscribers. The customization of our subscriber billing statement has made them easier to understand. We have itemized on the bill the amounts.attributable to franchise fees, copyright fees, and city users taxes Sonic pays to the governmental agencies. This was done to make the subscriber aware of the portion of the bill attributable to taxes the company has little control over. HUMAN RESOURCES C The maximization and utilizauoo of our human resources is of the- upmost importance to the company. We operate with a very lean staff which encourages personnel to be creative, responsible.-and innovative. During the past. year, senior staff at the system level have become a more cohesive group, not only among themselves, but other systems.as well. The sharing of ideas, such as new ways to gain subscribers; ups on how to collect bad debts, incentive programs, and employee motivational techniques have been an integral part of the systems communication network. Our theory is, "why reinvent the wheel." c. The staffing levels have been reduced, even though the company realized a 3% growth in basic subscribers. Once again maximization to the fullest. The Federal Communications Commission (F.C.C.), Equal Employment Opportunity Branch, has taken more steps toward enforcement of the Cable Act Because of this, the company has taken an aggressive, rather than passive, approach with regard- to :EEO compliance, and devoted considerable resources to achieving the goals established by the FCC: The fast step was to negotiate a "Multiple Reporting Agreement" on our EEO program with the FCC. The purpose of the MRA is to outline the general administrative provisions and EEO reporting procedures agreed to by the company and the EEO Enforcement Branch_ This presentation was made in Washington, D.C_ earlier this year and it appears as if the program was well received- The fulfillment of our EEO goals is much improved, and the company made the achievement of these goals a component of "the management bonus program. -2- 1 SATISFYING OUR INTERNAL AND EXTERNAL CONSTITUTENCIES ( With the assimilation of the previously discussed issues, the newly implemented financial reporting system has become a critical management tool for measuring and monitoring the company's progress in these key areas Due to the increased awareness and co- operation of management and operations we have realized the benefits of timely and accurate reporting, as the financial statements will illustrate. This has also allowed its to satisfy the reporting requirements of our lending institutions. LOOKING AHEAD With the numerous bills in Congress to re- regulate the industry, cable is going to be scrutinized even more than ever. We feel this is a major consumer issue and will receive much.attention. Therefore, our goal for the upcoming year is to stay focused on service, and provide the best cable can offer. The upcoming fiscal year should prove to be a pivotal one for both the cable industry and for Sonic. As we embark upon the new year, we feel confident.that we will meet the challenges that lie ahead Sins r ; Christopher Cohan President C. -3- I I 1 OPERATIONS DISCUSSION AND ANALYSIS REVENUES C, For the fiscal year ending March 31, 1989, Consolidated Revenues of the Company were $44,036,000, an increase over the prior year of 13.296, or $5,134,000. This increase represents the second year in a row that Sonic has increased total revenue over 13% annually. As with last year, this is attributable to increases in both subscribers and rates. Basic subscribers increased almost 3 %, from 116,476 to 119,471. This, coupled wiih rite increases accounted for a majority of the S3,502,000 increase in Basic Revenue. Pay TV Revenues for the year were up 7.2%. or 5768,000. This increase is due entirely to pay -per -view revenues which increased 101% this year d_ ue to promotion and increased subscriber awareness. Revenues from the.standard pay channels such as HBO and Showume were essentially flat as the decrease in subscribers this year was due.pcimarily to the increasing difficulty of marketing to a mature pay service market_ This decrease in pay penetrations was offset partially by pay rate increases. The subscriber has also become aware of the value of auxiliary services such as remote control, which increased 24.7 %, or 5387,000. Better cash management techniques enabled us to increase Interest Income 322 %, or $385,000, for the year. EXPENSES The expense side of the ledger saw operating costs up 7.3 %, or 51,583,000 from last year. In the CATV Operations area, while we. were able to reduce labor and fringe costs, this was more than offset by increased subcontractor costs for non - capital projects (5282,000). Material costs also increased (S249,000) due to both increases in supplier prices (primarily in cable) and. increased maintenance costs as our plant is aging in some system areas. To rectify this situation we have already budgeted at the operations level for increased installation staffing to reduce. subcontractor costs to a minimum, and we have allocated a significant portion of next year's capital budget to the rebuild of the older sections of our CATV plant. CIn the Programming area costs ,ere up 13%, or S 1,006,000. Pay -per -view licensing costs were up 73 or 5353,000, as a result of our increased revenues. Pay TV license fees were also up 7.6%, or 5353,000. reflecting increasing programmer costs and declining Pay TV margins. These figures support our current pay- per-view emphasis. C The largest increased cost was mat of the satellite services such as ESPN, CNN, USA Network, etc. Costs for these services rose 36%. or 5605,000. This reflect the continuing trend of significant increases and programming expenses as suppliers continue to secure programming at any cost and pass these increases along to the cable operator. These increases were partially offset by lower copyright fees due to the implementation of Broad_cast.Basic Service, allowing a reduction of the copyright fee where feasible, and in January of this fiscal year we began the pass through of the copyright fees to the subscriber in most system areas. Marketing costs for the current year were up 12.8 %, or 5195,000, paralleling our increased revenue base, and were attributable to increases in advertising and promotional expenses. Advertising sales and local origination costs were down 56% or $90,060. Due to the cost efficiency programs discussed in the President's Letter, Customer Service and General and Administrative costs were maintained at last year's level: -4- a .� OPERATING INCOME The Operating Income or in cable parlance "Cash Flow" of the Company was S20,67Z000, an increase of C 20.7%, or 53.551,000, for the fiscal year. OTHER EXPENSES Interest Expense was up 5.6%. or 5687,000, due primarily to increasing interest rates during the year on the S30,000,000 Bank Debt Depreciation and Amortization was down from last year 12%, or S289,000, as some of our older plant has become fully depreciated, mirroring the increased maintenance costs discussed under CATV Operations. Report of Management The management of Sonic Communications has prepared and is responsible for the financial statements and related financial information included in this annual report The financial statements have been prepared in accordance with generally accepted accounting principles. Other financial information included elsewhere in this report is consistent with information in the financial statements. To meet its responsibilities with respect to financial information, management maintains a system of internal accounting controls that is designed to provide reasonable assurance, on a cost effective basis, as to the integrity, objectivity, and reliability of the financial records and as to the protection of assets. This system includes communication through written policies and procedures, and an organizational structure that provides for appropriate division of responsibility and the training of personnel. The independent public accountants-provide an objective assessment of the degree to which management meets its responsibility for fairness of financial reporting. They regularly evaluate the system of internal accounting controls and perform such tests and such other procedures as they deem necessary to reach and express an opinion on the fairness of the financial s=ements. Manag gist believes that its policies and procedures provide reasonable assurance that its operations are caniyd�tt with a high Atandard of business conduct- Christopher Cohan President David E. Wagner Controller C -5- KPWG- -'P� 't Marwick Certified Public Accountants Peat Marwick Main & Co. C 2121 No. California Blvd.. Suite 840 Walnut Creek. CA 945963572 The Board of Directors Sonic Communications: We have audited the accompanying consolidated balance sheets of Sonic Communications and subsidiaries as of March 31, 1989, and the related consolidated statements of operations'and accumulated deficit and cash flows for the year then ended_ These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. The consolidated financial statements of Sonic Communications and subsidiaries as of March 31, 1988 were audited by other auditors whose report dated June 17, 1988 expressed an unqualified opinion on those statements. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining; on a test basis; evidence supporting the ( amounts and disclosures in the financial statements_ An audit also includes assessing the accounting principles used and significant estimates made by management. as well as eva!uating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. . In our opinion, the 1989 consolidated financial statements referred to above present fairly, in all material respects. the financial position of Sonic Communications and subsidiaries as of March 31, 1989, and the results of their operations and their c.sh flows for the year then ended in conformity with generally accepted accounting principles. As discussed in Note 2 to the consolidated financial statements, the Company changed its method of accounting for income taxes in 1989. Our audit was made for the purpose of forming an opinion on the consolidated financial statements taken as a whole. The consolidating information included in Schedules I and 11 is presented for purposes of additional analysis of the consolidated financial statements rather than to present the financial position. results of operations and cash flows of the individual companies. The consolidating information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and, in our opinion; is fairly presented in all material respects in relation to the consolidated financial statements taken as a whole. i AE May 26. 1989. j S 92,827 105,207 Liabilities and Shareholder's Deficit Liabilities: Accounts payable 3,308 3,440 SONIC COMMUNICATIONS 3,430 3,577 AND SUBSIDIARIES 1,403 1,374 Consolidated Balance Sheets 102,555 109,170 March 31, 1989 and 1988 1.282 1.029 Assets 1989 111,978 118,59 (in thousands) Cash and cash equivalents S 2,017 5,512 Accounts receivable (net of allowance for doubtful accounts of $91,000 in 1989 and $207,000 in 1988) 829 771 Prepaids and other assets 985 774 Notes receivable — 1,153 Property, plant and equipment, net 67;226 69,565 Acquisition deposit — 2,328 Intangibles and deferred costs, net 11,770 5 1 4 S 92,827 105,207 Liabilities and Shareholder's Deficit Liabilities: Accounts payable 3,308 3,440 Accrued liabilities 3,430 3,577 Deposits and prepaid subscriptions 1,403 1,374 Notes payable 102,555 109,170 Capital lease obligations 1.282 1.029 Total liabilities 111,978 118,59 Shareholder's deficit Common stock, no par value; authorized, 100,000 shares; issued and outstanding, 7,950 shares 1 ;012 1,012 Additional paid -in capital 1,232 1,232 Accumulated deficit 21 395 1( 5.627 ) Total shareholder'sdeficii .• (19.151) 11 3.383) S 92,827 105,207 See accompanying notes to consolidated financial statements. -7- C.. C. C SONIC COMMUNICATIONS AND SUBSIDIARIES Consolidated Statements of Operations and Accumulated Deficit Years ended March 31, 1989 and 1988 See accompanying notes to consolidated financial statements: 1$2 im (in thousands) Revenues: CATr $ 28,173 24,671 PAY TV 11,390 10,622. Other 4,473 1609 Total revenues 44,036 39,902 Operating expenses: CATV operations 4,424 3,882 Programming costs 8,708 7,702 Customer service 2,802 2,274 Marketing and sales 1,837 1,732 General and administrative 5,593 6,191 Total operating expenses 23,364 21381 Operating income before other expenses 20,672 Other expenses: Depreciapon and amortization 12,733 13,022 Interest (net of amounts capitalized of $147,000 in 1989 and $258,000 in 1988) 12,948 12,261 Other 759 760 Total other expenses 26A4 26,043 Loss before income taxes (5,768) (8,922) Income tax benefit _ — — 2 Net loss (5,768) (8,870) Accumulated deficit, beginning of year (15,627 (6,757 Accumulated deficit, end of year $ 2( 1,395) 1� 627) See accompanying notes to consolidated financial statements: C AND SUBSIDIARIES' Consolidated Statements of Cash Flows Years ended March 31, 1989 and 1988 1.4$2 128.$ (in thousands) Cash flows from operating activities: Net loss $ (5.768) (8,870) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 12,733 13,022. Wan-ant amortization 150 334 Allowance for bad debts (116) 62 Effect of changes.inc 58 172 Accounts receivable Prepaids and other assets (211) (62) Accounts payable (132) 1,547 Accrued liabilities (147) 1,220 Deposits and prepaid.subscriptions 29 52. Net cash provided by operating activities 6,596 7.477 Cash flows from investing activities: Issuance of notes receivable — (391) Collection of notes receivable 1,153 238 Capital expenditures (3,800) (5,847) Payment for purchase of subsidiary (638) — Net cash used in investing activities (3.285) '(6.000) Cash flows from financing activities: Issuance of notes payable 1,985 — Payment of notes payable (8.750) (4) Payments on capital lease obligations (41 (16) Net cash used in financing activities (6,806) 120) Net increase (decrease) in cash and cash equivalents (3,495) 1,457 Cash and cash equivalents, beginning of year 5.512 4,055 Cash and cash equivalents, end of year $ 2,017 5,512 Supplemental Disclosures of Cash Flow Information: Cash paid for interest, net of amount capitalized $ 13,329. 111906 Assets acquired under capital leases $ 294 56 See accompanying notes to consolidated financial statements.. C. -9- C r� SONIC COMMUNICATIONS AND SUBSIDIARIES Notes to Consolidated Financial Statements March 31, 1989 and 1988 (1) QMani=*0 Sonic Communications (the Company) operates television (CATV) systems in California and Alaska. The California cable operations are located in San Luis Obispo County and the surrounding areas, Watsonville and.sti rounding areas, West Sacramento, Woodland, Auburn, the Portola/Feather River area and the Riverbank area.of the San Joaquin Valley. The Alaskan operation is loeated.in the city of Anchorage and surrounding communities with satellite operations in the Kenai Peninsula and Bethel. (2) ummary of Si mp 'Frans Acrnimting Policies The consolidated financial statements include the accounts of the Company and its wholly -owned subsidiaries. All significant intercompany balances and transactions have been eliminated_ PPr ner(y Plant and Equ amen[ CATV systems are star_ ^d at cost and are depreciated using the straight -line method over estimated useful lives of S to 18 years for systems acquired after April 1, 1981. System additions prior to April 1, 1981 are depredated using the declining balance method over estimated useful lives of 8 to 20 years. Vehicles, machinery, office and data processing equipment and buildings are depreciated using the straight -line and declining balance methods over estimated useful lives of 3 to 25 years. Capital leases and lea- ce;hold improvements are amortized using the straight -line and declining balance methods over the shorter of the lease term or the estimated useful life of the asset. Construction in progress consists of expenditures incurred for expansion of existing CATV systems. Interest inured during the period of construction is capitalized as part of the cost of the CATV system. Repair and maintenance costs are charged to operations as incurred. IntandbIcs Intangibles are stated as cosL The excess of amounts paid over the fair values of tangible and intangible assets acquired in purchase aansactions is recorded as goodwilI and is amortizes using the straight -line method over the life of the franchise, or 40 years if the franchise has an indefinite life. Franchise development costs are generally deferred and amortized using the straight -line method over the life of the franchise. Financing Costs Financing costs are deferred and amortized. using the interest method, over the life of the loans. which are 10 to 12 year- (Continued) (2) Summary of Significant Accounting Policies Conunued CATV and Pay W– Revenues CATV and Pay TV revenues include monthly subscriber billings. Installation fees and other charges to subscribers are included in other revenue. lncorne Taxes In 1989, the Company adopted the liability method to account for income taxes in accordance with Statement of Financial Accounting Standards No. 96. Deferred income taxes are provided for temporary differences in reporting income and expenses for income tax and financial statement purposes. This adoption had no effect on income in the current year. Cash Eouivalents For purposes of the statement of cash flows, the Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. Reclassifications Reclassifications have been made in the 1988 financial statements in order to conform to the proscntation adopted for 1989. (3) Prr Xgy Plant and Eauioment Propeny, plant and equipment consists of: (in thousands) CATV systems S 89,515 84,457 C- Vehicles 1,517 1,378 Machinery, office and data 2,673 2,626 processing equipment Buildings and leasehold improvements 2,711 2 530 96,416 90,991 Accumulated depreciation and amortization (30) (24261 65.526 66,730 Construction in progress and inventory 1,618 2.760 Land —8 ? -- 75 S 67,226 69,565 Property, plant and equipment includes capital leases for:an office building, data processing equipment and vehicles totaling 51,353.000 and 51,043,000 in 1989 and 1988, respectively. (Continued) C -11- r (4) intangibles and Deferred Costs Intangibles and deferred costs consist of: 14$4 14$$ ' (in thousands) Goodwill S 18,077 17,843 Non-compete agreements and subscriber lists; 12,659 11,467 Franchise development costs 5,592 5,057 Financing costs 1-659 1,659 Total intangibles and deferred costs 37,987 36.026 Accumulated amortization (16 21 (10-922 Intangibles and deferred costs, net S 21,770 25104 (5) Notes Receivabie Notes receivable at March 31, 1988 are unsecured and due from the sole shareholder with interest rates ranging from 6-9%. These not swere repaid in the current year. (6) Notes Pavable Notes payable consist of` 1989 .. 14.$$ (in thousands) No= payable to insurance companies: 11.50% senior notes due 1996 S 17,500 20.000 11.75% senior notes due 1998 29,700 33,000 12.50% subordinated notes due 1996 8,521 9.682 \ \. 12.75 % subordinated notes due 1998 14,849 16.488 70,570 79.170 I Notes payable to banks 30,000 30.000 Notes payable to shareholder 1.985 — S 102,555 109,170 lncurance Comtrani In connection with issuance of the subordinated notes. 10,000 detachable Class A warrants and 17,000 detachable Class B warrants were issued to the noteholders. The warrants have an imputed value of 51,232,000 (S15 per unit for Class A and S46 per unit for Class B), are exercisable after February 28, 1992 and before March 1, 1996 at 52.00 per share and have been recorded as additional paid -tit capital. The number of shares of the Company's common stock for which each warrant is exercisable will be determined at the time of exercise and is based on a certain percentage of the Company's financial value at that time. The Company may, at the holder's option, purchase the warrants during the exercise period. During the period March 1, 1994 to March 1, 1996, the Company may, at its option, purchase all outstanding warrants. The effective interest rates on the subordinated notes, discounted for the imputed value of the warrants, is 13.55% for the 12.50% notes and 13.75% for the 12.75% notes. -12- (Continued) (6) Notes Payable Continued The notes require payments of $4.375,000 in 1990, 58;750,000 per year from 1991 through 1995, and $5,000,000 per .year in 1996 and 1997. Optional prepayments both with and without penalty are permitted under certain conditions. Prepayment penalties for fiscal year 1990 range from 7.67% to 927% of outstanding principal. In 1989• principal payments include an optional prepayment as allowed under the loan agreement. without penalty paid to the insurance companies of $4375,000. The notes, collateralized by substantially all of the Company's assets, require the Company to maintain certain financial ratios and include; among other things, restrictions as to additional borrowings and payment of dividends. Barks The bank loan agreement provides for a maximum revolving line of credit of S30,000.000. The principal outstanding was refinanced by a replacement term note scheduled to be paid:in 29 quarterly installments commencing on June 30, 1989. Borrowings under the agreement are at fluctuating interest rates (12% at March 31, 1989). The agreemenrrequ_ires that the Company maintain certain financial ratios similar to the insurance company notes. T ...K In 1989 the Company established a term loan agreement with its sole shareholder. This debt is subordinate to the insurance companies and bank debt_ The balance of this loan at March 31, 1989 was 51,985,000, which is due in one lump sum payment on March 31, 1998. no existing insurance company and bank loan agreements require that the interest rate on this loan be greater than or equal to the avenge rate of the existing insurance company and bank debt_ The average borrowing rate to the shareholder for the year ending March 31. 1989 was 12 %. Notes payable mature as follows: (in thousands) CS 1990 7,675 1991 12,350 1992 12,350 1993 12,800 1994 13.400 years Later yea — S 102,555 rnLc= The Company leases an office building from its sole shareholder under a capival lease which expires October 1, 2004 and requires monthly payments of 513,000. The Company and its subsidiaries have various noncancelable operating leases for vehicles, office facilities and head-end site locations with terms in excess of one year. (Continued) 1,; J m Leases_ Continued The present value of the minimum lease payments for all capital leases and the minimal annual lease payments for operating leases as of March 31, 1989 are: 1990 1991 1992 1993 1994 Later years Total minimum lease payments iM Caipp�t.a....l Opaanng �2 (in thousands) S 303 $ 511 284 442 270 419 185 385 156 377 2,836 5 2,476 Less amount representing interest (1554) Obligations under capital leases S 1,282 Interest expense on capital leases was S155.000 and S147,000 in 1989 and 1988, respectively. In addition, the Company and its subsidiaries lease other office space and land under month -to -month or other cancelable arrangements. Rental expense for 1989 and 1988 was as follows: Sole shareholder Others (8) Income Taxes The income tax benefit consists of: im i. (in thousands) S 144 144 571 707 S 715 851 Im lu (in thousands) pcf'mlcd S — 52 Current S — 52 In 1988, the tax benefit of S52,000 arising from operating loss carryforwards was recognized in the financial statements as a reduction of deferred income tax credits which resulted from timing differences that will reverse during the carryforward period. At March 31, 1989, the Company has operating loss carryforwards (expiring through 2004) of approximately 562,709,000 for federal income tax purposes and 510,910,000 for financial reporting purposes. In addition, the Company has certain stare operating loss carryforwards and investment tax credit car yforwards available to offset future income taxes. (Continued) C_ -14- C (9) Profit Sharing Plan The Company has a profit sharing plan covering all employees with more than one year of service. Contributions to the plan are at the discretion of the Board of Directors, subject to certain limitations under the Internal Revenue Code. Contributions to the plan were $46,000 and $30,000 in 1989 and 1988, respectively. On October 7, 1988. the Company signed an asset sale agreement with another CATV company to sell substantially all the assets of Sonic Cable Tv of Alaska (a wholly -owned subsidiary). The sale price of the assess is estimated at 5143,000,000, but is contingent on a number of conditions The most significant of these conditions are: the actual number of "paying" basic customers at a specified measurement date and a calculation of adjusted assets and liabilities for various prepayments and accruals of revenue and expenses. The sale is also contingent upon approval by the Alaska Public Utilities Commission: The sale, according to management estimates, is expected to be. completed during the first or second quarter of the 1990 fiscal year. (11) Commitments and Contingencies Terms of various franchise agreements generally require that the Company and its subsidiaries pay franchisors 2 -5% of annual CATV subscriber receipts, as described in the various agreements. CATV franchises are normally granted for 15 to 20 years and have varying termination dates ranging through 2006. Management is of the opinion that all existing franchises will be renewed. Franchise fees expensed for 1989 and 1988 were 5706.000 and 5747,000, respectively. The Company is.a guarantor on a 52 .500,000 personal line of credit for the sole shareholder. The Company is involved in various legal actions and other claims in the ordinary course of business relating to its CATV operations. Management believes that the resolution of these matters will not materially affect the Company's financial position or operations. -15- • u C` p Fa INFO F > C t O E N N�I J '01 a` C � E _._� H a u v m v Yyy e C V X u T T59 u 0 I I C4 ��. za JC C a3a 3 0. 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CoC6 co d6 < << z z YC]2 oc RESOLUTION NO.. 6 7 2 7 (1989 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO AUTHORIZING THE SUBMITTAL OF A NATIONAL REGISTER APPLICATION FOR THE JACK RESIDENCE LOCATED AT 536 MARSH STREET WHEREAS, the Jack Residence, located at 536 Marsh Street, is owned by the City of San Luis Obispo and is - managed by the Jack House Committee; and WHEREAS, in 1983 the City Council adopted Resolution 6157 which designated. the Jack Residence as a "Historic Resource" that is "potentially eligible for the National Register -" WHEREAS, the San Luis Obispo Cultural Heritage Committee, in cooperation with the Jack House Committee, has prepared a National Register application for the Jack Residence; and WHEREAS, it is the desire of the San Luis Obispo City Council that the Jack Residence and grounds be recognized as an important cultural and historic resource by its inclusion on the National Register of Historic Places administered by the National Park Service and the Department of the Interior-. NOW THEREFORE BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: 1. The Cultural Heritage Committee is authorized to submit the National Register Application for the Jack Residence, attached as Exhibit "A," to the California Office of Historic Preservation for consideration and action. 2. The Cultural Heritage Committee is authorized to act on the city's behalf in processing the attached National Register Application. Councilmember Council-member On motion Of Ranpa , seconded by Roalman and on the following roll call vote: AYES: Councilmembers Rappa, Roalman, Pinard, Reiss and Mayor Dunin NOES: None ABSENT: None the foregoing Resolution was passed and adopted this _ 5 ,. h day of De- m b e `r 1989. r-----Mor Ron Dunin ATTEST: 0I TACLERY, PAM ES 6727 t Page 2: Resolution No. 6 7 2 7 (1989 Series) APPROVED: Randy Rossi, Interim Community Development Director s ov r»s F� 104M (Row. W United States Department of the Interior National Park Service EXHIBIT "A" National Register of Historic Places Registration Form I ore ra 102 W18 This form is for use in nominating or requesting determinations of eligibility for individual properties or districts. See instructions in Guidelines forComplefiong National Register Forms (National Register Bulletin 16). Complete each item by marking "x" in the appropriate box or by entering the requested information. If an item does not apply to the property being documented, enter "N/A" for "not applicable." For functions, styles, materials, and areas of significance, enter only the categories and subcategories listed in the instructions. For additional space use continuation sheets (Form 10 -9Wa). Type all entries. other names/site number Jack House Ownership of Property Category of P ❑ private X❑ building(s) Q public -local ❑ district ❑ public -State ❑ site ❑ public - Federal ❑ structure ❑ object of Resources Contributing Noncontributing 3 1 buildings sites 1 structures objects Total Name of related multiple property listing: Number of contributing resources Previously N/A listed in the National Register 0- 4. State /Federal Agency Certification ( 0 H P use 0n 1 y l As the designated authority under the National Historic Preservation Act of 1966, as amended, I hereby certify that this ❑ nomination ❑ request for determination of eligibility meets the documentation standards for registering properties in the National Register of Historic Places and meets the procedural and professional requirements set forth in 36 CFR Part 60. In my opinion, the property ❑ meets ❑ does not meet the National Register criteria. ❑ See continuation sheet. Signature of certifying official Date State or Federal agency and bureau In my opinion, .the property ❑meets ❑does not meet the National Register criteria. ❑See continuation sheet. Signature of commenting or other official Date State or Federal agency and bureau I, hereby, certify that this property is: ❑entered in the National Register. See continuation sheet. ❑determined eligible for the National Register. ❑ See _continuation sheet. [:]determined not eligible for the National Register. ❑ removed from the National Register. ❑ other, (explain:) - Signature of the Keeper Date—of Action Historic Functions (enter categories from instructions) DomAetir/ei -ng1" dwelling r. vescnpoon - (enter categories from instructions) Late Victorian /Italianate Describe present and historic physical appearance. Current Functions (enter categories from instructions) RarrPAtion Anti r ult re /M uc— m - Materials (enter foundation concrete walls wood - roof cedar ehip„g Le% other Except for the maturation of the trees, the Jack House looks much the same as it did when it was finished in the early 1880's It is located about four blocks sou't'hwest of the business center of San Luis Obispo on the northwest side of Marsh Street. The house is a two -story wood, balloon= framed, single residence, sitting on a raised concrete foundation. The overall shape is rectangular with rooms located off a central hallway. A full porch extends across the front of the house with a balustrade over the center entrance section only. The tall, thin windows are double hung and evenly spaced with a cornice head. The hip roof has a balustrade with a decorative vent. The eves are decorated with paired brackets, medallion blocks, and a decorative frieze. Single -story bay windows are found on each side with a similar design on the eves. There is a third ba,y- window in the rear. on the west side. It is two stories and now has an elevator attached to it (1970). The exterior sheeting is shiplap redwood, typical. of the era. The carriage house and washroom are located to the north and northwest Of-the house. These structures are assumed to have been built at the same time as the house. A uti.lity room is between and a gazebo is in the eastern corner of the property. These were built by the city in 1980. The driveway enters the property from Marsh Street and continues straight back to the rear of the lot where it makes a 90- degree turn to the right and continues to the carriage house which is entered from the northwest side. The driveway and surrounding grounds are covered with many mature trees planted by Nellie Jack who was particularly fond of trees and-exotic plants. [—]See continuation sheet -,- - 8. Statement of Significance - Certifying official has considered the significance of this property in relation to other properties: ❑ nationally statewide ❑ locally Applicable National Register Criteria Q A X❑ B O C [::]D Criteria Considerations (Exceptions) ❑ A Q B EC [JD ❑ E ❑ F [:]G Areas of Significance (enter categories from instructions) Period of Significance Significant Dates Commerce 1881 -1916 Cultural Affiliation Significant Person Archiiect/Builder Jack, Robert Edgar _ Evans, William State significance of property, and justify criteria, criteria considerations, and areas and periods of significance noted above. The Jack House was the residence of Robert Edgar and Nellie Hollister Jack.. He was a prominent land developer, banker, and rancher in Central California from the 1870's until his death in 1916. R.E. Jac, was born in Maine and came to California in 1868. He started ranching the following year by buying'half of Rancho Cholame from W.W. Holl.ister. In 1870. he married Nellie, the niece of W.W., and the following year they moved to the City of San Luis Obispo: When her uncle died in 1874, Jack bought the remainder of the ranch from his widow. The ranch's Circle C brand is the oldest brand registered with the State of California that is still in regular use.. At this time, the area was mainly ranching, both, sheep and cattle. R.E. Jack brought new breeds and breeding methods to California. As one of the 'largest sheepfarmers., he employed hundreds of Basque sheepherders and had numerous connect.ions along the 1200 mile sheep grazing routes which ran from San Bernadino in the south, to Glenn and Tehama counties in the north as well as east of the Sierras. The drought of the 1860's had encouraged diversification into grains. dairy, fruit trees. and vegetable production. However, transportation to markets north and south was generally slow (ship) and expensive (road). The West Coast had just been linked by the Trans- continental Railroad to the east and the Southern Pacific Line extended south to Soledad in 1873. Everyone expected it to be extended through San Luis Obispo to link Los Angeles. R.E. Jack was ready for the railroad. Although wool growing was listed as his occupation as late as 1883, R.E. Jack was already an established banker by that time. In the early 1870's., he was the cashier of the First National Bank, which was later the Bank of San Luis Obispo. He was a principal in the banks of Paso Robles, Santa Maria and Lompoc. Q See continuation sheet Guinn, J.M., His.to.rY_of_the State of California, (Santa Cruz, San Benito, Monterey, and San Luis Obispo), Chapman Publishing Co., Chicago,.1903. Nicholson, Loren, Rails Across-.the Ranchosi Valley Publishers, Fresno, 1980. Storke, Mrs. Yda Addis, A —Memorial — and_ Biographical _History_of_Santa_Barbara., San Luis —----- - -- - -- - - -- ---------------- Obispo_and_Ventura_Counties, Lewis Publishing Co., Chicago, 1891; Previous documentation on file (NPS): ❑ preliminary determination of individual listing (36 CFR 61) has been requested ❑ previously listed in the National Register ❑previously determined eligible by the National Register ❑designated a National Historic Landmark ❑ recorded by Historic American Buildings Survey # ❑ recorded by Historic American Engineering ❑ See continuation sheet Primary location of additional data: State historic preservation office ❑ Other State agency ❑ Federal agency Q Local government ❑x University:. ❑ Other Record # _(_1 )_San Luis Office; (2) California Polytechnic State University - Robert E, rar rder'• Acreage of property • $4 UTM References A II-1 I- 'I I I I I I L I I _Lj e Lid ..l -1 . ,__I J I 1 1 1 1 Zone Easting Northing Zone Easting- _ Northing C L.1_1 1 1 1 1 I I_ 1 .1 1 I I D W I I I I l I I I ❑ See continuation sheet Verbal Boundary Description - E See continuation sheet Boundary Justification - These City lots have always been occupied by the Jack House and its out - buildings. ❑ See continuation sheet' 11.. Form Prepared By - name /title Leo W._Pinacd, II, Member - - organization SLO- Cultural Heritage Committee date December_5-,._1989 street & number - -714- Buchon Street telephone -(805 )_544-_4566 city or town Sa.n -Luis Obispo state_Caa_i,f6rn.ie_ zipoale 93401 wve ram 1049W� CAM yv� Na 1024401e 04M) United States Department of the interior National Park Service National Register of Historic Places Continuation Sheet Section number B Page 9 -- By 1886, the rails had reached Templeton and the local business elite in San Luis Obispo were concerned that it continue through their town. To accomplish this, the Board of Trade (Chamber of Commerce) was established with R.E.. Jack as the Treasurer. He was already the Treasurer of the West Coast Land Company which was selling land adjacent to the railroad in Templeton. He was also the Secretary and Co- Treasurer of the California Southern Hotel Col, which had built the Ramona Hotel in anticipation of the railroad coming to San Luis Obispo. To get hotel guests from the narrow gauge Pacific Railroad, Jack bought the City's first horse -drawn rail trolley. Consequently, he was most anxious, for the Southern Pacific to arrive in San Luis Obispo., In 1887, the Southern Pacific asked Jack, Isaac Goldtree, and J.P. Andrews to procure the right -of =way for the railroad through the City of San Luis Obispo. Prominent citizens were enlisted for this job since the railroad expected landowners along the proposed route to give up their land for the "good of all" citizens in the community. Mr. Jack also represented the City as its Mayor from 1890 to 1893.' This pattern of land sales and hotel buildings continued south to Los Olivos and Lompoc. However, much before the land boom was over, R.E. Jack was a millionaire. The San Francisco Examiner listed'him as the richest taxpayer in the County in 1890. Nellie Jack was known for her love of reading and was a founding member of the library in 1892 which eventually became the City Library in 1898. She hosted 'many lawn parties at her house to raise funds for the library. For a time, the Andrews Building was used to house the collection until the Carnegie Library was finished in 1905. _ .r \ Nft ram 104W" OW Aas09d Na. 16 4=8 United States Department of the Interior National Park Service National Register of Historic Places Continuation Sheet Section number 10 page 10.1 VERBAL BOUNDARY DESCRIPTION: Commencing at a point on the southerly line of Higuera Street South 53° 7' West, One Hundred and Eighty -Three feet, six inches (183 -6/12 feet) from the Southwest corner of Higuera and Nipomo Streets and running.thence South 53 °7' West on the South line of Higuera Street Two Hundred and Twenty -Five (225) feet,' thence South M6 53' East to the line of Marsh Street: thence, Northeasterly along the.line of Marsh Street, Two Hundred and Twenty -Five (1225) feet.: thence, at right an Northwesterly to Higuera Street and the point of beginning and being all that portion of Block 62 of the City of San Luis Obispo, occupied as a residence of R.E. Jack and wife, and extending from Higuera Street to Marsh Street according to two deeds: One made by H.M. Warden to Nellie Hollister Jack, dated August 9, .1875: and the other made by Thomas Higuera and others on February 11, 1876, to R. Edgar Jack.: and both of record in the Recorders Office of San Luis Obispo County, State of California. Excepting therefrom that portion thereof conveyed to Manuel F. Lima, et ux, by deed dated September 29, 1922, and recorded October 2, 1922, in Book 157, Page 410 of Deeds. Also; excepting therefrom, that portion thereof conveyed by deed dated November 22, 1917, in Book 188, Page 449 of Deeds to Nicholas F. Schlicht, a�S >7i M f •( v J '4. � ., � _ • i �I�ir 1 � : 7 � �' �" � rrr —.ter r ..;r.x c r L f ��r. . 4 1 1 / �r t •" .1 \ ��' /.'� i /.%1 � ii,D �i),y�i, :. `. •� .r` K7r.1z��'➢""ui' i� S#"'1 , �•: } , � ' �'. �� s•)1�� ...i W � atr r a... it Y grY"'• • ''ii �• r- r' .i i 1' A L n t t •+1 �• 1 T7�� �. 1( � -, 3 .•{.} "t''< > \���i "'� r4'�6iF'� -' �S•v' �ti r\ ��.Y �\ �.r 5Y •...,j YR�� t ... '?•' ..'.,wi+ `��1,e r`t1� �.•" 1J \ •ti Y J - L' S ��jj s r (ri r. Pii ?r�z1t'i��i' •`i .I^ ����r ��?:1.+ir .ac � \f t 1� t' t .•a rJ• iR � ' � °•brit \K�`lt\ .r Zv. �� t Z u'O'rw s •n �, �.�s,_��iF�j+ xi t. (� iiiiA ;i �s t � � � v� � ��v� l''1,2� •� ~ t� •'�+ T• In twi x � .. ..�t S. y i • • Y .-x � �_ l b :•.' _.ticA r V , "�n^�..�.^— •.E+^ec— •^-r"S-sY. i 'i . ' Ila tT. t`p t - 1 1 Yy {•r - `,�{�A�" � �• �r ' • � ,lam �. _' _ it , i A RESOLUTION OF THE CULTURAL HERITAGE COMMITTEE_ OF THE CITY OF SAN LUIS OBISPO SUPPORTING THE SUBMITTAL OF A NATIONAL REGISTER APPLICATION FOR THE JACK RESIDENCE WHEREAS, the Jack Residence, located at 536 Marsh Street, is owned by the City of San Luis Obispo and is managed by the Jack House Committee; and WHEREAS, in 1983 the City Council adopted .Resolution 6157 which designated the Jack Residence as an Historic Resource that is "potentially eligible for the National Register;" and WHEREAS, consistent with the city's adopted Historical Preservation Guidelines, it is an important function of the Cultural Heritage Committee to assist with the preparation of applications to the National Register. of Historic Places; and WHEREAS, the Cultural Heritage Committee, in cooperation with the Jack House Committee, has prepared a draft National Register application for the Jack Residence; and WHEREAS, it is the desire of the Jack House Committee and the Cultural Heritage Committee that the Jack Residence and grounds be recognized as an important community cultural and historic resource by its inclusion on the National Register of Historic Places maintained by the U.S. Department of the Interior. NOW THEREFORE BE IT RESOLVED by the Cultural Heritage Committee of San Luis Obispo as follows: 1. The attached National Register Application for the Jack Residence is forward to the City Council with a recommendation that the council authorize its submittal to the California Office of Historic Preservation for processing. 2. The Cultural Heritage Committee requests that the City Council authorize it to work with the California Office of Historic Preservation to complete the processing of the attached application. On motion of _Kreiger_, seconded by _Nicholson_ and on the following role call vote: AYES: Kreiger, Nicholson, Graham, Hall-Patton,, Pinard, Sievertson, Heinz, Waldron, and Faekes NOES: None ABSENT: None the foregoing resolution was passed and adopted this 2nd day of November, 1989. 4 Chairperson, Cultural Heritage Committee r, RESOLUTION NO. 6726 (1989 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING A CITY OF SAN LUIS OBISPO SEXUAL HARASSMENT AVOIDANCE POLICY. WHEREAS, the City Council and Management Team are desirous of adopting a Sexual Harassment Avoidance Policy; and WHEREAS, the Personnel Department will use this Policy to enhance its Sexual Harassment Avoidance Training; and WHEREAS, the Sexual Harassment Avoidance Training Program has been purchased by the Personnel Department; NOW, THEREFORE, BE IT RESOLVED that the City Council adopt the City of San Luis Sexual Harassment Avoidance Policy. On motion of Rappa, seconded by Roalman, and on the following roll call vote: AYES: Councilmembers Rappa, Roalman, Pinard, Reiss and Mayor Dunin NOES: None ABSENT: None the foregoing Resolution was passed and adopted this 5th day of December, 1989. ATTEST: MAYOR i' 6726 Resolution No. 6726 APPROVED: 1t City dininistratve Officer t n Personnel Director (1989 Series) L December 1989 CITY OF SAN LUIS OBISPO SEXUAL HARASSMENT AVOIDANCE POLICY Resolution No. 6726 (1989 Series) It is the policy of the City of San Luis Obispo that all employees should be able to enjoy a work environment free from all forms of discrimination, including sexual harassment. In accordance with federal regulations requiring employers to adopt clear policies prohibiting sexual harassment in employment, the City Council has adopted the policy statement forth in full below: Policy Against Sexual Harassment: It is the policy of the City of San Luis Obispo that employees have a working environment free of unlawful discrimination. The work environment should be business -like and assure fair, courteous treatment for employees and the public we serve. Sexual harassment may constitute illegal .sex discrimination and may violate both state and federal law. It is employee misconduct that could decrease work productivity, undermine the integrity of employment relationships, decrease moral and cause severe emotional and physical stress. All employees should be informed of the discrimination complaint process and be assured of their right to file complaints without fear of reprisal. All employees, including supervisors and managers, shall receive on -going training regarding behavior that constitutes sexual harassment. Employees should also understand the importance of reporting incidents promptly to assure that further incidents do not occur. The City Council expects City department heads to convey to their employees strong disapproval of sexual harassment. All employees including supervisors and managers should be clearly informed regarding behavior that constitutes sexual harassment or creates the perception of sexual harassment and the consequences of such actions. The employees should be aware that sexual harassment of another employee shall be grounds for disciplinary action. Employees also should be aware that ignoring sexual harassment complaints is also grounds for disciplinary action. Definition.of Sexual Harassment: "Sexual harassment ", as used in this policy includes any unsolicited and unwelcome sexual overtures by any employee, supervisor, manager, or non - employee, be they written, verbal, physical, visual, whenever. Submission is made either explicitly or implicitly a term or condition on employment; Submission or rejection by an employee is used as a basis for employment decisions affecting the employee; or Such conduct has the potential to affect an employee's work performance negatively or create an intimidating, hostile or otherwise offensive work environment. COMPLAINT PROCEDURE Any employee who feels he /she has been the victim of sexual harassment should contact EITHER his /her supervisor, Department Head or Personnel Director as soon as possible a_s time is of the essence in investigating charges. Th_ a initial report can be oral or written, but a written and signed statement of the ,complaint must be submitted by the complaining employee within five (5) working days of the initial report so an investigation can proceed into the matter. The formal written complaint must cite the specific incident(s) as well as the desired resolution. The Personnel Director will advise the City Administrative Officer of the receipt of all written, "sexual harassment complaints. 2. Upon receipt of the written complaint, the Personnel Department will conduct or refer to others an investigation of the charges, including contacting the person who allegedly engaged in sexual harassment, informing him /her of the basis of the complaint and providing an opportunity to respond. 3. Upon completion of the investigation, the Personnel Department and Department Head will consult on what, if any, disciplinary action will be taken. Discipline will be imposed by the Department Head. Both parties will be notified of the action to be taken. The Personnel Director will advise the City Administrative Officer of the disposition of all sexual harassment complaints. 4. If it is determined that sexual harassment occurred; appropriate disciplinary action, up to and including dismissal, will be taken. The severity of the discipline will be determined by the severity and /or frequency of the offense. 5. Disciplinary action taken under this procedure may be appealed with or without representation subject to appeal or grievance procedures indicated in the appropriate Memorandum of Agreement or Personnel Rules and Regulations. 6. An employee who is not satisfied with the disposition of the investigation may submit an appeal to the City Administrative Officer within ten (10) calendar days from receipt of the conclusion of the Personnel Director. 7. Employees may appeal the City Administrative Officer's disposition of the investigation to the Personnel Board. CONFIDENTIALITY To the extent feasible, proceedings under this policy and all reports and records filed shall be confidential to the parties involved, and reasonable effort shall be; made to protect the privacy interests of the parties. RESPONSIBILITY Emnlovee: 1. If possible, politely but firmly confront whoever is doing the harassing. State how you feel about his /her actions and request that the person cease harassing you immediately. Document in writing the date, location and conversation for your own records.. 2. If this does not resolve the concern (problem /situation) or if the employee feels uncomfortable or threatened, report any act of sexual harassment to your immediate supervisor or Department Head or the Personnel Department, as provided in the complaint procedure. The choice is left uo to the emnlovee. _2- -3- (007, Supervisor / Department Head 1. Inform all employees under your direction of the City policy and complaint procedure regarding sexual harassment. 2. Receive complaints of sexual harassment from employees and immediately report any complaints of sexual harassment to the Personnel Department. 3. Confer with the Personnel Department. on extent of investigation and discipline. 4. Following investigation, take appropriate action, including discipline as appropriate. Personnel Department 1. Conduct Sexual Harassment Avoidance Training Programs for all City employees. 2. Assume responsibility for administration of the complaint procedure. 3. Receive and review any and all complaints. 4. Conduct or assist in investigation and consult with the Department Head on disciplinary action as may be appropriate. 5. Advise City Administrative Officer of the receipt and disposition of all sexual harassment complaints. 6. Prepare the documentation for the hearing before the City Administrative Officer. City Administrative fficer I. Assume responsibility for the administrative appeal process. 2. Conduct a confidential hearing as expeditiously as possible upon receipt of an appeal. 3. Provide the employee with a written response within ten (10) calendar days from the conclusion of the administrative hearing. Personnel Board 1. Hear appeals of disciplinary action pursuant to the City Grievance Procedures and appeals from employees dissatisfied with the City Administrative Officer's disposition of the investigation. -3- RESOLUTION NO. 6725 (1989 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING AMENDMENT NO. 3 TO THE WASTEWATER MANAGEMENT PLAN WHEREAS, the City has adopted a Wastewater Management Plan; WHEREAS, the City has applied for a State low - interest loan for funding of the facilities improvements projects for implementation of the Wastewater Management Plan; WHEREAS, the State requires preparation of a Project Report Supplement for a facilities plan and loan approval for all projects applying for State funds. NOW THEREFORE, BE IT RESOLVED that the City Council approve Amendment No. 3 to the Wastewater Management Plan for Engineering Services of Brown and Caldwell Engineers for preparation of a Project Report Supplement. On motion of Mayor Dunin seconded by Councilman Reiss. and on the following roll call vote: AYES: Mayor Dunin, Councilmembers Reiss, Rappa,and Settle NOES: Councilmember Pinard ABSENT: None The foregoing Resolution was passed and adopted this 21st day of November , 1989. MAYOR RON DUNIN ATT ST CITA CLERK PAM OGES * * * * * * * * * * * 6725 I Resolution No. 6725 (1989 Series) Page Two APPROVED: City 4dministrative off City A Finance Director Utilities Director resno3 /moss AMENDMENT NO. 3 TO AGREEMENT FOR ENGINEERING SERVICES BETWEEN CITY OF SAN LUIS OBISPO AND BROWN AND CALDWELL FOR IMPLEMENTATION OF WASTEWATER 14ANAGEMENT PLAN THIS AMENDMENT NO. 3 to the Engineering Services Agreement dated February 23, 1988, between City of San Luis Obispo, hereinafter referred to as "Owner ", and Brown and Caldwell, a California corporation, hereinafter referred to as "Engineer," is made and entered into this day of November 1989. WITNESSETH: WHEREAS, on February 23, 1988, Owner and Engineer entered into an agreement for engineering services; and WHEREAS, in Article IIB of said Agreement, Owner and Engineer agreed that certain of the work contemplated to be performed by Engineer could not be sufficiently defined at the time of execution of the Agreement; and WHEREAS, during the detailed engineering design of the improve- ments, it became apparent that additional facilities were required to comply with the receiving water requirements; and WHEREAS, Owner has requested Engineer to prepare a Project Report in accordance with the State Water Resources Control Board (SWRCBT policy for implementing the State Revolving Fund (SRF) for construction of wastewater treatment facilities. WHEREAS, Owner has requested changes in the scope of work; NOW THEREFORE, Owner and Engineer agree to amend the Agreement as follows: I. SCOPE OF PLANNED ENGINEERING SERVICES The scope of planned engineering services as described in Exhibit B of the original Agreement is amended to provide the following additional engineering services: Page 1 of 2 N /AGR :SLO -A3 1. Prepare a Project Report in accordance with the requirements outlined on Pages 6 through 8 of the SWRCB "Policy for Implementing the SRF for Construction of Wastewater Treatment Facilities, August 18, 1988 ". 2. Submit five copies of the draft Project Report to the City and SWRCB for their review and comments. Incorporate review comments and submit ten copies of the final Project Report to the City. IV. SCHEDULE Engineer was authorized to proceed with the modified scope of work effective on November 13, 1989. The modified scope of work shall be completed by January 31, 1990. IV. COMPENSATION Compensation for the services provided under Article I of this Amendment shall be calculated on the same basis as in the original Agreement. The cost ceiling for the work done under this Amendment is $35,500 which increases the total cost ceiling under the Agreement to $1,271;52.5. The fixed professional fee for the work done under this Amendment is $4,500 which increases the total fixed professional fee to $153,820. All other terms and conditions of the Agreement dated February 23, 1988 remain unchanged. BROWN AND Signature Printed Name Pervaiz Anwar Title Vice President Date (. N /AGR:SLO -A3 OWNER Signature Printed name Title Date. Page 2 of 2