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HomeMy WebLinkAboutMinutes 2004-08-24MINUTES REGULAR MEETING OF THE CITY COUNCIL TUESDAY, AUGUST 24, 2004 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor Ferrara called the Regular City Council meeting to order at 7:00 p.m. 2. ROLL CALL City Council: Council Members Runels, Dickens, Costello, Mayor Pro Tern Lubin, and Mayor Ferrara were present. City Staff Present: City Manager Adams, City Attorney Carmel, Director of Administrative Services Wetmore, Interim Financial Services Director O'Reilly, Community Development Director Strong, Director of Public Works Spagnolo, and Associate Planner McClish. 3. FLAG SALUTE Bill Clark, President and Anne McCracken, President -Elect, representing Arroyo Grande Valley Kiwanis Club, led the Flag Salute. 4. INVOCATION Jean Bowser, Bahai Faith, delivered the invocation. 5. SPECIAL PRESENTATIONS 5.a. Presentation of Mayor's Commendation Recognizing District 50 Champions. Mayor Ferrara presented Mayor's Commendations to the Arroyo Grande Valley Little League District 50 Champions. 6. AGENDA REVIEW 6.a. Resolutions and Ordinances Read in Title Only Council Member Costello moved, Mayor Pro Tern Lubin seconded, and the motion passed unanimously that all resolutions and ordinances presented at the meeting shall be read in title only and all further reading be waived. 7 CITIZENS' INPUT. COMMENTS, AND SUGGESTIONS None. 8. CONSENT AGENDA Mayor Pro Tern Lubin moved, and Council Member Runels seconded the motion to approve Consent Agenda Items 8.a. through 8.g., with the recommended courses of action. The motion carried on the following roll -call vote: AYES: Lubin, Runels, Dickens, Costello, Ferrara NOES: None ABSENT: None CITY COUNCIL MINUTES AUGUST 24, 2004 PAGE 2 8.a. Cash Disbursement Ratification. Action: Ratified the listing of cash disbursements for the period August 1, 2004 — August 15, 2004. 8.b. Consideration of Cash Flow Analysis and Approval of Interfund Advances from the Water and Water Facility Funds. Action: Accepted the July 2004 cash report, and approved the interfund advance from the Water and Water Facility Funds to cover cash deficits in other funds as of July 31, 2004. 8.c. Consideration of Resolution Authorizing the Fire Station Expansion General Obligation Bond Property Tax Levy. Action: Adopted Resolution No. 3772 authorizing the FY 2004-05 property tax levy approved by voters on November 5, 2002. 8.d. Consideration of Annual Report — FY 2003-04 Cash Activity in Transportation Facilities Development Impact Fund. Action: Accepted the annual report of Transportation Facilities Development Impact Fund cash activity and ending cash balance as of June 30, 2004. 8.e. Consideration of Disadvantaged Business Enterprise (DBE) Program for Federal Fiscal Year (FFY) 2004-2005. Action: Approved the FFY 2004-2005 DBE Program with established Overall Annual DBE Goal to Caltrans by October 1, 2004. 8.f. Consideration of Resolution Supporting Proposition IA. Action: Adopted Resolution No. 3773 supporting Proposition 1 A. 8.g. Consideration of Agreement for Legal Services — Carmel & Naccasha LLP. Action: Approved the Legal Services Agreement with the firm of Carmel & Naccasha LLP and authorized the Mayor to execute the Agreement. 9. PUBLIC HEARINGS 9.a. Consideration of Development Code Amendment 03-008: An Ordinance of the City Council of the City of Arroyo Grande Adopting a Mitigated Declaration and Directing the Director of Administrative Services to File a Notice of Determination to 1) Amend the Zoning Map and Portions of Title 16 of the Arroyo Grande Municipal Code Rezoning to Mixed Use Districts the Commercial, Industrial, and Office Professional and Commercial Portions of Planned Development 1.1 and 1.2 Districts, and Adopt Regulations for the Regional Commercial District; and 2) Adopt Design Guidelines and Standards Pertaining to East Grand Avenue and a Portion of El Camino Real. Director of Community Development Strong stated that due to changes in scheduling this item for Architectural Review Committee and Planning Commission review, it was recommended that the Council continue the public hearing on this item to September 28, 2004. Mayor Ferrara opened the public hearing, and upon hearing no public comments, he closed the public hearing. Mayor Pro Tern Lubin moved to continue the public hearing to the City Council meeting of September 28, 2004. Council Member Dickens seconded the motion, and on the following roll - call vote: CITY COUNCIL MINUTES AUGUST 24, 2004 PAGE 3 AYES: Lubin, Dickens, Runels, Costello, Ferrara NOES: None ABSENT: None There being 5 AYES and 0 NOES, the motion is hereby declared to be passed. 9.b. Consideration of a Request from South County Sanitary Service, Inc. for Integrated Solid Waste Collection Rate Increase. City Manager Adams presented the staff report and recommended the Council adopt a Resolution approving the solid waste collection rate increase. He introduced Bill Statler, City of San Luis Obispo Finance Director, who performed the formal rate review study. Bill Statler gave an overview of the Integrated Solid Waste Rate Review Report, including the purpose of the report, an overview of the report findings, the rate review work scope, the basis for review, the Franchise Agreement review and analysis, whether the costs are reasonable, costs by type, percentage of change in South County Sanitary Services costs versus CPI, the reasonable rate of return on the costs, the methodology of the review, and the recommended increase. Mr. Statler then responded to questions from Council regarding cost accounting issues; which company has the controlling interest (Waste Connections Inc.); clarification of ownership issues between solid waste collection entities and the Cold Canyon landfill; tipping fees; labor costs; and confirmation that the rate increase includes costs for recycling and greenwaste collection. Mayor Ferrara opened the public hearing, and upon hearing no public comments, he closed the public hearing. Council Member Dickens moved to adopt a Resolution as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ESTABLISHING INTEGRATED SOLID WASTE COLLECTION SERVICE RATES". Council Member Runels seconded the motion, and on the following roll -call vote: AYES: Dickens, Runels, Costello, Lubin, Ferrara NOES: None ABSENT: None There being 5 AYES and 0 NOES, the motion is hereby declared to be passed 9.c. Consideration of Continued Public Hearing for General Plan Amendment 04-002; Change in Land Use Designation from Conservation/Open Space and Single Family Residential Low Density Planned Development to Conservation/Open Space and Single Family Very Low Density Planned Development for an Approximate 53-Acre Property Located on the South Side of Noyes Road at the Northwest Edge of the City Limits in the Rancho Grande Planned Development (1.2), City of Arroyo Grande (Castlerock Development). Mayor Pro Tern Lubin declared a potential conflict of interest due to ownership of real property near a project that is related to the subject property and stepped down from the dais. CITY COUNCIL MINUTES AUGUST 24, 2004 PAGE 4 Associate Planner McClish presented the staff report and recommended the Council adopt a Resolution to amend the Land Use Element (Land Use Map) of the General Plan to change the land use designation for the subject properties to Conservation/Open Space and Single Family — Very Low Density Planned Development. Associate Planner McClish responded to questions from Council regarding the slopes on the site, density bonuses, and clarification on land use designations. Mayor Ferrara opened the public hearing. Holly Covington, Noyes Road, stated she resides directly across the street from the proposed development. She expressed concerns about chemical drift and resulting impacts to wildlife. She opposed any development in this area. Dean Burto, rural Arroyo Grande, expressed concerns regarding a number of potential negative impacts to the existing woodlands, wildlife habitat, and Meadow Creek as noted by a representative from the Nature Conservancy who visited the site, and he asked what the developer was going to do to mitigate these impacts. Mayor Ferrara clarified the nature of a General Plan Amendment as it relates to environmental analysis. He explained that there is no pending application for a development project on the site. He further explained that if the applicant decides in the future to submit a project to the City, then a further detailed project specific environmental analysis would be conducted and at that time mitigation measures would be considered to address environmental impacts. Pam Burto, rural Arroyo Grande, stated that when they purchased their property, they were under the impression that the property in question would remain as open space. She opposed any development on the site. Charlotte Singleton, Cuesta del Sol, referred to the existing water tank and stated if the tank were to rupture, it would drain downhill to Noyes Road. She stated this was an important factor to think about when considering development of this property. She referred to removal and replanting of oak trees of which four have died. She opposed development of the site. Mike Laprade, Noyes Road, expressed concerns about the number of homes being proposed considering the slope of the property. He expressed concerns specifically about Noyes Road as it relates to the existing curve and adding additional traffic. He spoke in opposition to the development of 21 homes on the property. Jeff Auerbach, Noyes Road, expressed concerns about proposed lot sizes, traffic safety issues, the potential for groundwater contamination for those homes currently on wells, and stated that the schools are already overcrowded. He stated that there were many impacts that would have to be mitigated if a project were to move forward. Janice Lanrade, Noyes Road, expressed concerns about traffic and circulation on Noyes Road, and opposed development at the proposed density. Louis Rosenbera, rural Arroyo Grande, agreed with the comments expressed relating to congestion and environmental impacts and spoke about the rural aesthetics of the area. He opposed placing 21 houses in this area stating it would change the look and feel of the entire neighborhood. Upon hearing no further public comments, Mayor Ferrara closed the public hearing Council Member Costello reiterated that there was no development project before the Council this evening and that the Council was only considering the General Plan land use designation. CITY COUNCIL MINUTES AUGUST 24, 2004 PAGE 5 He spoke about General Plan land use designation versus zoning. He explained that there was a proposal to amend the existing land use designation of the subject property. He acknowledged the concerns expressed by the public and stated they were all important issues many of which will be addressed when a development project comes forward. He reviewed the General Plan Amendment findings, referred to several specific supporting policies and objectives from the City's Land Use Element and stated that the findings were consistent with the General Plan and he could support redesignating this property from Low Density to Very Low Density. He stated that this would allow up to a maximum of 21 dwelling units; however, a significant part of the development review process would likely be a project specific EIR which would address all environmental concerns. Council Member Dickens referred to the 2001 General Plan EIR and highlighted areas concerning water resources and cumulative impact issues relating to the subject property, as well as issues relating to slopes, grading, groundwater and biological resources. He supported the redesignation of the subject property to Very Low Density Residential. Council Member Runels stated his focus would be on the City's water resources; however, he felt the property owner has the right to petition the City to change the zoning. He stated the City was getting close to its water capacity and until the City develops more water supply projects, he would not be interested in any large developments in the City and could support the proposed land use designation. Mayor Ferrara also referred to the 2001 General Plan Program EIR and agreed with the concerns expressed relating to the Noyes Road property. He stated that as the City grows toward its rural fringe, there needs to be an appropriate transition of land use. He emphasized smart growth principles which concentrates development in urban areas where infrastructure already exists. He supported reducing the density on the subject property. Council Member Costello moved to adopt a Resolution approving General Plan Amendment 04- 002 for a change in land use designation from Conservation/Open Space and Single Family Residential -Low Density Planned Development to Conservation/Open Space and Single Family - Very Low Density Planned Development for an approximate 53-acre property located on the south side of Noyes Road at the northwest edge of the City limits in the Rancho Grande Planned Development (1.2), City of Arroyo Grande (Castlerock Development). Council Member Dickens seconded the motion, and on the following roll -call vote: AYES: Costello, Dickens, Runels, Ferrara NOES: None ABSENT: Lubin Mayor Pro Tern Lubin returned to the dais. Mayor Ferrara called a break at 8:50 p.m. The Council reconvened at 9:00 p.m. 10. CONTINUED BUSINESS None. CITY COUNCIL MINUTES AUGUST 24, 2004 PAGE 6 11. NEW BUSINESS 11.a. Consideration of Appointment to San Luis Obispo County Housing Trust Fund Commission. City Manager Adams presented the staff report and recommended the Council appoint Associate Planner Kelly Heffernon to the San Luis Obispo County Housing Trust Fund (HTF) Commission. Council Member Dickens asked if a Planning Commissioner could be appointed to the HTF Commission. City Manager Adams responded yes. Mayor Ferrara opened the item for public comment, and upon hearing none, he closed the public comment period. Council Member Runels supported the recommended action Council Member Dickens suggested an alternate proposal to appoint a Planning Commissioner to the HTF Commission due to the fact that the HTF Commission is making policy decisions. Council Member Costello stated he had no objection to appointing a staff member or a Planning Commissioner. Mayor Pro Tern Lubin stated he had no objection to appointing a staff member. He referred to the letter from Gerald Rioux, HTF Executive Director, which indicated that this is a detail oriented Commission. He commented that staff might have more technical expertise to provide to the HTF Commission. Mayor Ferrara asked if there was a mechanism in place to delay and/or refer HTF Commission issues to the Planning Commission before voting on an issue. City Manager Adams responded yes and that policy related issues could be directed to the Planning Commission. Mayor Ferrara asked if there could be more than one representative on the HTF Commission. City Manager Adams responded he could follow up with the HTF Commission. Council Member Dickens stated that it would be an opportunity to broaden the scope of the Planning Commission's responsibility. Mayor Ferrara agreed in concept with Council Member Dickens; however, he acknowledged Associate Planner Heffernon's knowledge and expertise with the Housing Task Force. He suggested designating a primary and an alternate to the HTF Commission. Following further discussion, Mayor Pro Tern Lubin moved to appoint Kelly Heffernon to the San Luis Obispo County Housing Trust Fund Commission with a Planning Commissioner as Alternate as designated by the Planning Commission. Council Member Runels seconded the motion, and on the following roll -call vote: AYES: Lubin, Runels, Costello, Dickens, Ferrara NOES: None ABSENT: None CITY COUNCIL MINUTES AUGUST 24, 2004 PAGE 7 There being 5 AYES and 0 NOES, the motion is hereby declared to be passed. 11.b. Consideration of Water Supply Alternatives Study Recommendations Director of Public Works Spagnolo presented the staff report and stated that it was recommended the Council provide direction to staff on the following options: 1) Pursue an agreement to utilize unused groundwater from other agencies participating in the Groundwater Management; 2) Prepare for City Council consideration a change to a tiered water rate structure; 3) Proceed with selection of a design consultant for Well No. 10 located on Deer Trail Circle; 4) Pursue an agreement with Plains Exploration and Production Company for Reclaimed Price Canyon Oil Field water; 5) Develop a request for proposal to select a consultant to perform a groundwater study in cooperation with the parties to the Groundwater Management Agreement; 6) Develop a request for proposal with other interested agencies to select a consultant to prepare a Supplemental Environmental Impact Report for the Nacimiento Water Project; and 7) Pursue further discussions with Santa Barbara County agencies regarding potential purchase of State Water. Director Spagnolo and Tom Zender, representing Wallace Group, responded to questions from Council. Mayor Ferrara opened up the item for public comment. Steve Ross, Arroyo Grande, referred to discussions regarding plumbing retrofitting and asked if conservation programs had been developed to cut down on the use of water in the City. He suggested investigating a program implemented by Marin County to mandate replacement of toilets to low -flow toilets upon the sale of property. Jim Guthrie, Arroyo Grande, commented that the Plains project seemed like an obvious option to pursue. Additionally, he suggested that the Council reconsider the tiered water rate structure option. Upon hearing no further public comments, Mayor Ferrara closed the item to public comment Council Member Runels supported pursuing all options and stated that Option D (pursuing an agreement with Plans Exploration and Production Company for Reclaimed Price Canyon Oil Field Water) was the most feasible option. Council Member Costello supported pursuing all recommended options and stated it would be prudent to look at short, medium, and long-term solutions to address and solve water usage issues. Council Member Dickens supported options A (pursuing an agreement to utilize unused groundwater from other agencies participating in the Groundwater Management Agreement); B (preparing for City Council consideration a change to a tiered water rate structure); and C (proceeding with selection of a design .consultant for Well No. 10 located on Deer Trail Circle). He stated he was not prepared to move forward on options D, E, F, & G until additional information was available and presented. He supported continuing to pursue water conservation efforts. He suggested continuing this item, and moving forward with some of the intermediate solutions, such as looking at the tiered water rate structure. Mayor Pro Tern Lubin stated it was important to look at what the City's responsibilities are in the long-term and how we can best prepare for the future. He commented that it was important to CITY COUNCIL MINUTES AUGUST 24, 2004 PAGE 8 look at all options and the costs of those options. He stated his only concern was option E, a consultant study of the groundwater, because there were so many studies that have been done and no conclusions have been made. He referred to option B and stated that there was need to look at a tiered water rate structure quickly. He also agreed with public comments made regarding plumbing retrofit requirements upon sale of property and encouraged investigating this suggestion. He concluded by stating that he supported pursuing options A through G. Following further discussion on current water conservation programs and implementing a tiered water rate structure, staff was directed to provide data on how effective the retrofit program has been with regard to reducing per capita water consumption and data on how effective tiered water rate structures are in reducing water consumption. City Manager Adams explained that this was a starting point and that more extensive information regarding all of these options would come back to Council before considering any final approval of the options. Mayor Ferrara stated he was not comfortable moving forward with option B to implement a tiered water rate structure unless it was preceded by a significant public outreach and education effort. He referred to options E and F and suggested that instead of moving forward to develop requests for proposals, that the City pursue further discussions on these options to determine the feasibility of moving forward with these options. He concurred with Council Member Runels about immediately pursuing option D, an agreement with Plans Exploration and Production Company for Reclaimed Price Canyon Oil Field Water. He commented it was important to keep this item moving to address both short and long term needs. Council Member Costello moved to direct staff to: A) Pursue an agreement to utilize unused groundwater from other agencies participating in the Groundwater Management Agreement; B) Prepare for City Council consideration a change to a tiered water rate structure, to include public education efforts before implementation of a change in the water rate structure; C) Proceed with selection of a design consultant for Well No. 10 located on Deer Trail Circle; D) Pursue an agreement with Plains Exploration and Production Company for Reclaimed Price Canyon Oil Field Water; E) Pursue further discussions as to the feasibility of performing a groundwater study in cooperation with the parties to the Groundwater Management Agreement; F) Pursue further discussions with other interested agencies to select a consultant to prepare a Supplemental Environmental Impact Report for the Nacimiento Water Project; and G) Pursue further discussions with Santa Barbara County agencies regarding potential purchase of State Water, all of which are contingent upon staff taking steps to bring back additional information before any definitive actions are taken. Mayor Pro Tern Lubin seconded the motion, and on the following roll -call vote: AYES: Costello, Lubin, Runels, Dickens, Ferrara NOES: None ABSENT: None There being 5 AYES and 0 NOES, the motion is hereby declared to be passed. 11.c. Consideration of a Formal Position on Halcyon / Highway 1 Realignment Project by the County. CITY COUNCIL MINUTES AUGUST 24, 2004 PAGE 9 Director of Public Works Spagnolo presented the staff report and recommended the City Council: 1) review the information regarding the road alignment project at the intersection of Halcyon Road and Highway 1 by the County; and 2) provide direction to staff if the Council desires to take a position concerning this project. Director Spagnolo and Dale Ramey, representing the County Public Works Department, responded to questions from Council. Mayor Ferrara opened the item for public comment. Fred Baur, Arroyo Grande, referred to the map and stated that Halcyon should have a straighter alignment than what is being proposed. He commented on the regional traffic problems and the need for an interchange at Brisco/101. Upon hearing no further public comments, Mayor Ferrara closed the public comment period. Council Member Dickens explained that he brought this item forward for Council consideration and he would like to provide the County with the City's position on placing a higher value on the agricultural resources within the Arroyo Grande Valley. He stated that he felt if the County was going to move forward with Alternative 1, there should be greater efforts placed on appropriate mitigation and suggesting a one-to-one ratio for the replacement of agriculture land. Council Member Runels referred to Alternative 2 and commented that obtaining the required permits from the various regulatory agencies to work in the creek would extend the construction of the project by several years. He referred to Alternative 1 and acknowledged that it would take some farmland; however, he thought something needed to be done to relieve the congestion at this location. Council Member Costello acknowledged that there was an existing circulation problem; however, the County's proposed solution to the problem will add to the City's circulation problems. He suggested directing staff to request an EIR be prepared as there will be significant impacts resulting from this project. He also recommended that the City request appropriate mitigation for the loss of any agriculture land, whether from Alternative 1 or 2, and that it be a one-to-one replacement of agriculture land. Mayor Pro Tern Lubin commented that there would continue to be traffic problems whether this project was implemented or not. He agreed that the City's formal position should include letting the County know the City's concerns with the taking of agriculture land; with the dumping of traffic into Arroyo Grande; suggesting that the County prepare an EIR; and the cumulative problems at the 101/Brisco Interchange. Mayor Ferrara supported sending a letter to Supervisor Achadjian and the Board of Supervisors expressing the City's request that the County responsibly address the community's concerns. He stated that extra efforts should be made to explore the environmental impacts and an EIR is a must for this project. He stated that as far as the alignment itself, he felt it should be a straighter approach, and that the County should investigate other alignment options that will have less impact on existing agriculture land. Council Member Costello moved to direct staff to convey to the County that the City would like to see an EIR prepared on this project; recommend that mitigation measures for the loss of agricultural land should include a one -for -one replacement or permanent preservation of CITY COUNCIL MINUTES AUGUST 24, 2004 PAGE 10 agricultural land off -site of the project; should include the Council's belief that the proposed improvement of this intersection will exacerbate existing regional traffic problems in Arroyo Grande that stem from traffic coming from the Mesa; and that the County should explore alternatives that would take less farmland. Mayor Pro Tern Lubin seconded the motion, and on the following roll -call vote: AYES: Costello, Lubin, Runels, Dickens, Ferrara NOES: None ABSENT: None There being 5 AYES and 0 NOES, the motion is hereby declared to be passed. 12. CITY COUNCIL REPORTS a. MAYOR TONY M. FERRARA: (1) San Luis Obispo Council of Governments/San Luis Obispo Regional Transit Authority (SLOCOG/SLORTA). Council Member Dickens attended last meeting. (2) Integrated Waste Management Authority (IWMA). No report. (3) Other. None. b. MAYOR PRO TEM SANDY LUBIN: (1) South County Area Transit (SCAT). No report. (2) Economic Vitality Corporation (EVC). No report. (3) CJPIA. Forwarded Insurance Policy to staff. (4) Other. None. C. COUNCIL MEMBER THOMAS A. RUNELS: (1) Zone 3 Water Advisory Board. No report. (2) County Water Resources Advisory Committee (WRAC). Received presentation on the most recent actions in the Santa Maria groundwater case. (3) Other. None. d. COUNCIL MEMBER JIM DICKENS: (ABSENT) (1) San Luis Obispo Council of Governments/San Luis Obispo Regional Transit Authority (SLOCOG/SLORTA). Reviewed annual STIP funding plans and legislative updates. (2) South County Youth Coalition. No report. (3) South San Luis Obispo County Sanitation District (SSLOCSD). Received presentation on the collection system for the District; reviewed areas of concerns and alternatives on the Bakeman Lane and Fair Oaks trunk sewer systems; approved a brine disposal plan and permitting update. (4) Other. None. e. COUNCIL MEMBER JOE COSTELLO: (1) Air Pollution Control District (APCD). Discussed upcoming budget; issue of establishing new fees for stand by generators held over to next meeting; Discussed ban on backyard burning. (2) Other. None. CITY COUNCIL MINUTES AUGUST 24, 2004 PAGE 11 13. CITY MANAGER ITEMS: None. 14. COUNCIL COMMUNICATIONS: None. 15 STAFF COMMUNICATIONS: City Manager Adams annou aced that a Rancho Grande Park Tree Dedication ceremony would be held tomorrow, August 25 , at 2:30 p.m. in memory of Michelangelo Mora in recognition of his service and sacrifice to the community of Arroyo Grande and the United States of America. 16. COMMUNITY COMMENTS AND SUGGESTIONS: the City should consider John Keen_ suggested .that in order to enhance conservation efforts, converting data on water bills from units to gallons so that the public can more easily understand their water bills and how much water they are using. The Council concurred and directed staff to investigate this issue. 17. ADJOURNMENT Mayor Ferrara adjourned the meeting at 11:00 p.m. - Tony M. Fe ,Mayor ATTEST: KellyWor , Director of Administrative Services/ Deputy City Clerk (Approved at CC Mtg