Minutes 2007-06-26MINUTES
REGULAR MEETING OF THE
CITY COUNCIL/REDEVELOPMENT AGENCY
TUESDAY, JUNE 26, 2007
COUNCIL CHAMBERS, 215 EAST BRANCH STREET
ARROYO GRANDE, CALIFORNIA
1. CALL TO ORDER
Mayor/Chair Ferrara
7:04 p.m.
2. ROLL CALL
CC/RDA:
called the Regular City Council/Redevelopment Agency meeting to order at
Council/Board Members Chuck Fellows and Jim Guthrie, and Mayor/Chair
Tony Ferrara were present. Council/Board Member Joe Costello and Mayor
Pro Tem/Vice Chair Ed Arnold were absent.
City Staff Present: City Manager Steven Adams, City Attorney Tim Carmel, Director of
Administrative Services/City Clerk Kelly Wetmore, Director of Financial
Services Angela Kraetsch, Director of Public Works Don Spagnolo, Director
of Community Development Rob Strong, and Director of Building and Fire
Mike Hubert.
3. FLAG SALUTE
Phil Johanknect, representing Central Coast Masonic Lodge #237, led the Flag Salute.
4. INVOCATION
Pastor Robert Banker, Open Door Church, Oceano, delivered the invocation.
5. SPECIAL PRESENTATIONS
None.
6. AGENDA REVIEW
6.a. Ordinances Read in Title Only.
Council/Board Member Guthrie moved, Council/Board Member Fellows seconded, and the motion
passed unanimously that all ordinances moved for introduction or adoption at the meeting shall be
read in title only and all further reading be waived.
7. CITIZENS' INPUT. COMMENTS. AND SUGGESTIONS
Jean Wade referred to Phase 2 of the Five Cities Center and requested an update on plans to
further develop the site. Mayor Ferrara responded that a project submittal was forthcoming from
Investec, the item would be placed on a future agenda, and the adjacent neighborhood would be
notified of the date and time of public hearing.
8. CONSENT AGENDA
Mayor Ferrara invited members of the public who wished to comment on any Consent Agenda Item
to do so at this time. No public comments were received.
Council Member Fellows requested that Item 8.f. be pulled.
Mayor Ferrara requested that Item 8.h. be pulled.
Minutes: City Council/Redevelopment Agency Meeting
Tuesday, June 26, 2007
Page 2
Action: Council Member Guthrie moved to approve Consent Agenda Items 8.a. through 8.e., and
8.g., with the recommended courses of action. Council Member Fellows seconded, and the motion
passed on the following roll call vote:
AYES: Guthrie, Fellows, Ferrara
NOES: None
ABSENT: Costello, Arnold
8.a. Cash Disbursement Ratification.
Action: Ratified the listing of cash disbursements for the period June 1, 2007 through June
15, 2007.
S.b. Consideration of Statement of Investment Deposits.
Action: Received and filed the report of current investment deposits as of May 31, 2007.
8.c. Consideration of Approval of Minutes.
Action: Approved the minutes of the Regular City Council/Redevelopment Agency meeting
of May 22, 2007, the Special City Council/Redevelopment Agency meeting of May 29, 2007,
the Special City Council Meeting of June 12, 2007, and the Regular City
Council/Redevelopment Agency meeting of June 12, 2007, as submitted.
8.d. Consideration of Appropriation of Funds for Internal Revenue Service (IRS) Costs.
Action: Appropriated $21,341 from the General Fund, $2,992 from the Street Fund, and
$4,151 from the Water Fund, and $4,151 from the Sewer Fund for Internal Revenue
Services (IRS) costs associated with the IRS audit for calendar year 2004.
8.e. Consideration of Approval of Revised Agreement For Management, Administrative
and Training Services with the City of Grover Beach.
Action: Approved the revised Agreement for Management, Administrative and Training
Services and authorized the Mayor to execute the Agreement.
8.g. Consideration of Adoption of Ordinance Amending Portions of Arroyo Grande
Municipal Code Chapters 16.04 and 16.44 of Title 16 to Implement Creek Setback
Standards (Development Code Amendment 07-003).
Action: Adopted Ordinance No. 591 as follows: "ANORD/NANCEOFTHECITYCOUNCIL
OF THE CITY OF ARROYO GRANDE TO APPROVE DEVELOPMENT CODE
AMENDMENT 07-003 AMENDING PORTIONS OF ARROYO GRANDE MUNICIPAL
CODE CHAPTERS 16.04 AND 16.44 OF TITLE 16 TO ESTABLISH CREEK SETBACK
STANDARDS".
8.f. Consideration of Approval of Lease Agreement for Public Parking Area.
Recommended Action: Approve and authorize the Mayor to execute a Lease Agreement
between the City and Howard and Aileen Mankins and Blair and Mark Mankins for lease of
certain parking areas on the north side of East Branch Street for public off-street parking.
Council Member Fellows referred to the two parking areas in the Village and expressed concerns
about the appearance of one of the areas (the Car Corral). He suggested that when the lease is
renewed that this issue should be addressed. He also stated that the map of the site attached to the
proposed Lease was not correct. Community Development Director Strong gave a brief overview
and status of the two lease agreements for the public parking areas in the Village and assured the
Council the correct map would be attached to the document. City Manager Adams noted that
improvements to the parking areas would be coordinated in conjunction with the planned
streetscape improvements for East Branch Street.
Minutes: City Council/Redevelopment Agency Meeting Page 3
Tuesday, June 26, 2007
Action: Council Member Fellows moved to approve and authorize the Mayor to execute a Lease
Agreement between the City and Howard and Aileen Mankins and Blair and Mark Mankins for lease
of certain parking areas on the north side of East Branch Street for public off-street parking, as
amended to include the correct location map. Council Member Guthrie seconded, and the motion
passed on the following roll-call vote:
AYES: Fellows, Guthrie, Ferrara
NOES: None
ABSENT: Costello, Arnold
8.h. Consideration of Grease Control Program and Interagency Agreement with the South
San Luis Obispo County Sanitation District (SSLOCSD).
Recommended Action: 1) Request the SSLOCSD assist in coordinating a Grease Control
Program for all food service facilities located within the City; 2) Approve an Interagency
Agreement; and 3) Authorize the Mayor to execute the Agreement.
Mayor Ferrara stated that at the Sanitation District Board meeting, a correction had been made in
the Agreement (#3) to change the time of year when the District will report inspection findings to
each Parent Agency and asked for clarification on the matter.
Melissa Mudoett, representing Wallace Group, clarified that the change in the Agreement agreed on
by all parties was that the District would report inspection findings to each Parent Agency by the
end of January 2008, instead of July 2007 (pursuant to Section 3 of the proposed Agreement).
Action: Mayor Ferrara moved to approve staff's recommendation concerning coordination of a
Grease Control Program for all food service facilities located within the City and to approve an
Interagency Agreement between the South San Luis Obispo County Sanitation District, the City of
Arroyo Grande, the City of Grover Beach, and the Oceano Community Services District. Council
Member Guthrie seconded, and the motion passed on the following roll-call vote:
AYES: Ferrara, Guthrie, Fellows
NOES: None
ABSENT: Costello, Arnold
11. NEW BUSINESS ITEMS
Mayor Ferrara requested, and the Council concurred, to move up Item 11.a. on the Agenda prior to
Item 9.a.
11.a. Consideration of a Center Left Turn Lane on East Grand Avenue Between Halcyon
Road and EI Camino Real.
Council Member Fellows declared a conflict of interest due to ownership of real property on E.
Grand Avenue and stepped down from the dais.
Mayor Ferrara announced that due to a lack of a quorum, no action could be taken and the item
would have to be tabled and rescheduled for Council consideration.
Council Member Fellows returned to the dais.
Minutes: City Council/Redevelopment Agency Meeting Page 4
Tuesday, June 26, 2007
9. PUBLIC HEARINGS
9.a. Consideration of Utility Rate Increases and Adoption of Resolutions Establishing
Water, Sewer, and Lopez Water Rates and Charges.
Director of Financial Services Kraetsch presented the staff report and recommended the Council
adopt Resolutions establishing water rates and charges, sewer rates and charges, and Lopez
Contract charges.
Mayor Ferrara opened the public hearing, and upon hearing no public comments, he closed the
public hearing.
Council comments included recognition of the Council's action in 2005 to approve utility rate
increases for FY 2005-06, FY 2006-07, FY 2007-08, and FY 2008-09 based on the 2005 Water and
Sewer Rate Study; acknowledgment that water and sewer charges are now subject to the
provisions of Proposition 218 which requires the City to provide written notice of rate increases to
property owners and to conduct a public hearing; that the increased revenues are needed to
support the ongoing maintenance and operation of the City's utility infrastructure; recognition that
the purpose of the previously approved tiered utility rate structure is to encourage users to conserve
water; and recognition to those in the community who are participating in water conservation efforts.
Action: Council Member Guthrie moved to adopt Resolution No. 4021 as follows: "A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ESTABLISHING
WATER RATES AND CHARGES". Council Member Fellows seconded, and the motion passed on
the following roll-call vote:
AYES: Guthrie, Fellows, Ferrara
NOES: None
ABSENT: Arnold, Costello
Action: Council Member Fellows moved to adopt Resolution No. 4022 as follows: "A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ESTABLISHING
SEWER RATES AND CHARGES". Council Member Guthrie seconded, and the motion passed on
the following roll-call vote:
AYES: Fellows, Guthrie, Ferrara
NOES: None
ABSENT: Arnold, Costello
Action: Council Member Guthrie moved to adopt Resolution No. 4023 as follows: "A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ESTABLISHING
THE AMOUNT OF LOPEZ CONTRACT CHARGES". Council Member Fellows seconded, and the
motion passed on the following roll-call vote:
AYES: Guthrie, Fellows, Ferrara
NOES: None
ABSENT: Arnold, Costello
Minutes: City Council/Redevelopment Agency Meeting Page 5
Tuesday, June 26, 2007
9.b. Consideration of Exclusive Negotiating Agreement with South Valley Developers for
Purchase and Hotel Development at the Vacant Parcel Owned by the Redevelopment
Agency Located at Faeh Street and EI Camino Real. [COUNCIL/RDA]
City Manager/Executive Director Adams presented the staff report and recommended the Council
approve the proposed Exclusive Negotiating Agreement with South Valley Developers for purchase
and development of a hotel at the vacant parcel owned by the Redevelopment Agency at Faeh
Street and EI Camino Real.
Mayor/Chair Ferrara opened the public hearing.
Mollv Younger, Faeh Street, spoke in opposition to a hotel on the site and expressed concerns
about potential building height; clientele the hotel would attract; and noise.
Maureen Herrera, N. Alpine, spoke in opposition and expressed concerns about loss of privacy;
loss of property value; traffic congestion on Halcyon; parking; and requested further notification if
and when a project comes forward.
Lori Hunstad, N. Alpine, stated she understood a specific project was not being proposed tonight;
however, she expressed concerns about parking, safety, property values, traffic, lot size, and
requested the City keep the neighborhood involved in the process.
Marv Perry, N. Alpine, expressed concerns about development of a hotel on the site as it relates to
noise and dust during construction; length of time the project would be under construction; whether
a noise barrier would be installed between the residential neighborhood and the hotel; traffic and
parking problems; congestion at Brisco/Halcyon; where the money is coming from to build the hotel;
and suggested that hotel development would be more appropriate south of town.
Jean Wade expressed concerns about water consumption by a hotel and inquired whether
circulating water systems could be considered for new construction.
Dennis Kinp, Faeh Street, expressed concerns about traffic, lighting, parking, and building height if
a hotel is built on the site.
John Keen, N. Elm Street, expressed concerns about assumptions in the Agreement with regard to
density as it relates to the minimum number of hotels rooms; that the project should fit the property;
the development of a "standard" hotel; and the developer's ability to choose or replace consultants
to perform services.
Upon hearing no further public comments, Mayor/Chair Ferrara closed the public hearing.
Council/Board comments ensued including recognition that the subject site has been identified in
the City's Economic Element as a hotel site; that a specific project is not being considered at this
time; that the nature of the proposed agreement provides the City and the developer with exclusive
negotiating abilities; that any hotel development application would be reviewed by the Architectural
Review Committee, Planning Commission, and City Council and would include public notification
and public hearings; clarification concerning Section 8.3 of the Agreement as it relates to the
developer's ability to hire it's own architect; that this is an opportunity to offer more hotels in the City
and to generate additional transient occupancy tax; and support for the proposed Exclusive
Negotiation Agreement.
Action: Council/Board Member Fellows moved to approve the proposed Exclusive Negotiating
Agreement with South Valley Developers for purchase and development of a hotel at the vacant
parcel owned by the Redevelopment Agency at Faeh Street and EI Camino Real. Council/Board
Member Guthrie seconded, and the motion passed on the following roll-call vote:
Minutes: City Council/Redevelopment Agency Meeting Page 6
Tuesday, June 26, 2007
AYES: Fellows, Guthrie, Ferrara
NOES: None
ABSENT: Costello, Arnold
10. CONTINUED BUSINESS ITEMS
None.
12. CITY COUNCIL REPORTS
a. MAYOR TONY FERRARA:
(1) San Luis Obispo Council of Governments/San Luis Obispo Regional Transit
Authority (SLOCOG/SLORTA). The Executive Board met twice and discussed
SLORTA issues including relocation of the operation/maintenance facility to S.
Higuera in San Luis Obispo.
(2) South San Luis Obispo County Sanitation District (SSLOCSD). Attended two
meetings; currently working on the budget with adoption to be considered at a
special meeting on July 5`h; the treatment plant continues to operate within required
standards and limits.
(3) Other. None.
b. MAYOR PRO TEM ED ARNOLD: (ABSENT)
(1) Integrated Waste Management Authority Board (IWMA). No report.
(2) Economic Vitality Corporation (EVC). No report.
(3) Other. None.
c. COUNCIL MEMBER JOE COSTELLO: (ABSENT)
(1) Zone 3 Water Advisory Board. No report.
(2) Air Pollution Control District (APCD). No report.
(3) Fire Oversight Committee. No report.
(4) Fire Consolidation Oversight Committee. No report.
(5) Other. None.
d. COUNCIL MEMBER JIM GUTHRIE: (ABSENT)
(1) South County Area Transit (SCAT). Finalizing changes in scheduling to implement
1-hour service in the South County between Santa Maria and San Luis Obispo by
August 1 s'; adopted Budget for next year - no additional funds required from the City
in order to provide public transportation services.
(2) California Joint Powers Insurance Authority (CJPIA). No report.
(3) Other. None.
e. COUNCIL MEMBER CHUCK FELLOWS:
(1) South County Youth Coalition. Announced availability of Summer Activity Guide
and summer childcare programs at Harloe Elementary and Elm Street Park; reported
that Big Brothers/Big Sisters needs volunteers and that they have a golf tournament
fundraiser coming up on August 26~h
(2) County Water Resources Advisory Committee (WRAC). Reported that Pismo
Beach has applied for a Clean Beaches grant; Paso Robles is still discussing water
banking; and that Quagga Muscles are heading this way which could impact water
pipes and drainage systems.
(3) Other. None.
Minutes: City Council/Redevelopment Agency Meeting page 7
Tuesday, June 26, 2007
13. CITY COUNCIL MEMBER ITEMS:
a. Request to Appeal approval of Plot Plan Review Case No. 06-009 to remove an existing
house and accessory structure and construct a new home and garage at 795 East Cherry
Avenue (GUTHRIE)
Council Member Guthrie requested, and the Council concurred, to appeal the Planning
Commission's approval of Plot Plan Review Case No. 06-009.
14. CITY MANAGER ITEMS:
None.
15. COUNCIL COMMUNICATIONS:
Mayor Ferrara reported that the Cortina d'Arroyo senior housing project at 241 S. Courtland
received the National Association of Homebuilder's Best of 50+ housing awards. He stated this was
a great accomplishment and commended everyone who worked hard on that project.
Mayor Ferrara reported he would be attending the League of California Cities Policy Committee
meetings in San Jose this week.
18. STAFF COMMUNICATIONS:
None.
17. COMMUNITY COMMENTS AND SUGGESTIONS:
None.
18. ADJOURNMENT
Mayor/Chair Ferrara ad' urned the meeting at 8:20 p.m.
. ~j, _ ~
Tony Ferrar~~fiorlChair
ATTEST: Iy /~
~GQ~L~~
Kelly Wet ore, ' y Clerk/Agency Secretary
(Approved at CC Mtg 7-.Zy-2oo7