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Agenda Packet 2007-08-28City Council Tony Ferrara Ed Arnold Joe Costello Jim Guthrie Chuck Fellows Mayor Mayor Pro Tem Council Member Council Member Council Member AGENDA SUMMARY CITY COUNCIL MEETING TUESDAY, AUGUST 28, 2007 7:00 P.M. Agenda Steven Adams City Manager Timothy J. Carmel City Attorney Kelly Wetmore City Clerk Arroyo Grande City Council Chambers 215 East Branch Street, Arroyo Grande 1. CALL TO ORDER: 2. ROLL CALL 7:00 P.M. 3. FLAG SALUTE: ARROYO GRANDE POLICE DEPARTMENT EXPLORER POST 542 4. INVOCATION: PASTOR GEORGE LEPPER PEACE LUTHERAN CHURCH 5. SPECIAL PRESENTATIONS: 5.a. Oath of Office Administered to Chief of Police Steve Annibali (WETMORE) 5.b. Mavor's Commendation ~leremv Kaufman. Public Works Maintenance Worker 6. AGENDA REVIEW: 6a. Move that all ordinances presented for introduction or adoption be read in title only and all further readings be waived. AGENDA SUMMARY -AUGUST 28, 2007 PAGE 2 7. COMMUNITY COMMENTS AND SUGGESTIONS: This public comment period is an invitation to members of the community to present issues, thoughts, or suggestions on matters not scheduled on this agenda. Comments should be limited to those matters that are within the jurisdiction of the City Council. The Brown Act restricts the Council from taking formal action on matters not published on the agenda. In response to your comments, the Mayor or presiding Council Member may: Direct City staff to assist or coordinate with you. A Council Member may state a desire to meet with you. It may be the desire of the Council to place your issue or matter on a future Council agenda. Please adhere to the following procedures when addressing the Council: • Comments should be limited to 3 minutes or less. • Your comments should be directed to the Council as a whole and not directed to individual Council members. • Slanderous, profane or personal remarks against any Council Member or member of the audience shall not be permitted. 8. CONSENT AGENDA: The following routine items listed below are scheduled for consideration as a group. The recommendations for each item are noted. Any member of the public who wishes to comment on any Consent Agenda item may do so at this time. Any Council Member may request that any item be withdrawn from the Consent Agenda to permit discussion. or change the recommended course of action. The City Council may approve the remainder of the Consent Agenda on one motion. 8.a. Cash Disbursement Ratification (KRAETSCH) Recommended Action: Ratify the listing of cash disbursements for the period August 1, 2007 through August 15, 2007. 8.b. Consideration of Statement of Investment Deaosits (KRAETSCH) Recommended Action: Receive and file the report of current investment deposits as of July 31, 2007. 8.c. Oblisration Bond Proaertv Tax Levv Rate (KRAETSCH) Recommended Action: Adopt a Resolution authorizing the FY 2007-08 property tax levy rate approved by voters on November 5, 2002. 8.d. Consideration of Approval of Minutes (WETMORE) Recommended Action: Approve the minutes of the Regular City Council meeting of July 10, 2007 as submitted. 8.e. Authorization to Reiect Claim Filed As~ainst the City - Recommended Action: Reject claim and authorize the City Clerk to send a standard rejection letter to the claimant. AGENDA SUMMARY -AUGUST 28, 2007 PAGE 3 8. CONSENT AGENDA (cont'dl: 8.f. Consideration of Approval of Agreement for Legal Services (ADAMS) Recommended Action: 1) Approve the revised Agreement for Legal Services with Carmel & Naccasha; and 2) appropriate an additional $15,000 for legal services. 8.g. Recommended Action: Adopt a Resolution adopting salary and benefit adjustments for management employees for FY 2007-08 and FY 2008-09. 8.h. Consideration of Compensation Adjustments for Part-time Emplovees (ADAMS) Recommended Action: Adopt a Resolution adopting a salary and benefit program for part-time employees for FY 2007-08 and FY 2008-09. 8.i 8.j 8.k. 8.1. Luis Obispo County Desalination Funding Studv (SPAGNOLO) Recommended Action: 1) Approve an Interagency Agreement in regard to the South San Luis Obispo County Desalination Funding Study; and 2) authorize the Mayor to execute the agreement. Radios and Communication Equipment (HUBERT) Recommended Action: Authorize staff to purchase replacement base station radios and communication equipment for the Fire Department from Sterling Communications for $12,169. Recommended Action: Award a contract to Toste Grading and Paving in the amount of $27,000 for resurfacing portions of Fair Oaks Avenue and Nevada Street. 8.m. Consideration of Approval of Land Lease Agreement with Clearwire US. LLC (CARMEL) Recommended Action: Approve and authorize the Mayor to execute a Land Lease Agreement between the City and Clearwire US, LLC, for use of approximately eighty- three (83) square feet of property located at 200 Hillcrest, Arroyo Grande, California (the "Reservoir Site"). 8.n. (DSEIR) for the Los Robles Del Mar Project (ADAMS) Recommended Action: Approve and authorize submittal of the attached letter providing comments to LAFCO in response to the DSEIR for the Los Robles Del Mar project. Recommended Action: Authorize the City Manager to formally submit the supplemental environmental project proposals in response to the Civil Liability Complaint issued by the California Regional Water Quality Control Board. AGENDA SUMMARY -AUGUST 28, 2007 PAGE 4 9. PUBLIC HEARINGS: None. 10. CONTINUED BUSINESS: 10.a. Consideration of the Citv's Drainage Master Plan (SPAGNOLO) Recommended Action: Approve the 2006 Drainage Master Plan. 11. NEW BUSINESS: None. 12. CITY COUNCIL REPORTS: This item gives the Mayor and Council Members the opportunity to present reports to the other members regarding committees, commissions, boards, or special projects on which they may be participating. (a) MAYOR TONY FERRARA: (1) San Luis Obispo Council of Governments/San Luis Obispo Regional Transit Authority (SLOCOG/SLORTA) (2) South San Luis Obispo County Sanitation District (SSLOCSD) (3) Other (b) MAYOR PRO TEM ED ARNOLD: (1) Integrated Waste Management Authority Board (IWMA) (2) Economic Vitality Corporation (EVC) (3) Other (c) COUNCIL MEMBER JOE COSTELLO: (1) Zone 3 Water Advisory Board (2) Air Pollution Control District (APCD) (3) Fire Oversight Committee (4) Fire Consolidation Oversight Committee (5) Other (d) COUNCIL MEMBER JIM GUTHRIE: (1) South County Area Transit (SCAT) (2) California Joint Powers Insurance Authority (CJPIA) (3) Other (e) COUNCIL MEMBER CHUCK FELLOWS: (1) South County Youth Coalition (2) County Water Resources Advisory Committee (WRAC) (3) Other AGENDA SUMMARY -AUGUST 28, 2007 PAGE 5 13. CITY COUNCIL MEMBER ITEMS: The following item(s) are placed on the agenda by a Council Member who would like to receive feedback, direct staff to prepare information, and/or request a formal agenda report be prepared and the item placed on a future agenda. No formal action can be taken. a. Request for staff to prepare analysis and plan for addressing remaining Development Code items that are inconsistent with the General Plan. (GUTHRIE) b. Request to place on a future agenda review of the agricultural buffer policy. (FELLOWS) 14. CITY MANAGER ITEMS: The following item(s) are placed on the agenda by the City Manager in order to receive feedback and/or request direction from the Council. No formal action can be taken. a. None. 15. COUNCIL COMMUNICATIONS: Correspondence/Comments as presented by the City Council. 16. STAFF COMMUNICATIONS: Correspondence/Comments as presented by the City Manager. 17. COMMUNITY COMMENTS AND SUGGESTIONS: This public comment period is an invitation to members of the community to present issues, thoughts, or suggestions. Comments should be limited to those matters that are within the jurisdiction of the City Council. The Brown Act restricts the Council from taking formal action on matters not published on the agenda. 18. ADJOURNMENT •~~yy~t~t~t~attatt~t~ta~~ This agenda was prepared and posted pursuant to Government Code Section 54954.2. Agenda reports can be accessed and downloaded from the City's website at www.arrovoorande.oro •f~Rtf114f •tttl~Nf •tttf~f All staff reports or other written documentation relating to each item of business referred to on the agenda are on file in the City Clerk's office and are available for public inspection and reproduction at cost. If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by the Americans with Disabilities Act. To make a request for disability-related modification or accommodation, contact the Administrative Services Department at 805-473-5414 as soon as possible and at least 48 hours prior to the meeting date. City Council/Redevelopment Agency Meetings are cablecast live and videotaped for replay on Arroyo Grande's Government Access Channel 20. The rebroadcast schedule is published at www.slo-soan.org. 5.b. CITY ®F w ~ . JVlayor s Commendation presented to: 2'eresa J~1cCCish On this 28th day of August 2007 In 1~ecognition of 2'our ~l~lem6ersFiip in the platinum Service CCu6 forServiceA6ove and ~eyoncl tFie Call of duty Tony Ferrara, Mayor ~ ieconvon.reo '_ v e • ~u~r ,o. n„ f ~ .CITY OF _ -. .Mayor s Commendation 1~"resented to: ,~eremy Kaufman On this 28th clay ofAugust 2007 In 12ecognition of `Your ~l~lem6ership in the ~1'latinum Service Club forServiceA6ove and Beyond the Call of Duty Tony ~F'errara, ~l~layor 8.a. MEMORANDUM TO: CITY COUNCIL FROM: ANGELA KRAETSCH, DIRECTOR OF FINANCIAL SERVICE BY: FRANCES R. HEAD, ACCOUNTING SUPERVISOR SUBJECT: CASH DISBURSEMENT RATIFICATION DATE: AUGUST 28, 2007 RECOMMENDATION: It is recommended the City Council ratify the attached listing of cash disbursements for the period August 1 through August 15, 2007. FUNDING: There is a $673,798.68 fiscal impact that includes the following items: • Accounts Payable Checks 132537-132715 $ 192,235.87 • Payroll Checks & Benefit Checks $ 481,562.81 All payments are within the existing budget. DISCUSSION: The attached listing represents the cash disbursements required of normal and usual operations. It is requested that the City Council approve these payments. ALTERNATIVES: The following alternatives are provided for the Council's consideration: • Approve staffs recommendation; • Do not approve staff's recommendation; • Provide direction to staff. Attachments: Attachment 1-August 1, 2007-August 15, 2007, Accounts Payable Check Register Attachment 2- August 3, 2007, Payroll Checks & Benefit Checks Register ATTACHMENTI apCkHist Check History Listing Page: 1 08/20/2007 10:19AM CITY OF ARROYO GRANDE Bank code: boa Check # Date Vendor Status ClearNoid Date invoice Inv. Date Amount Paid C heck Total I 132537 08103/2007 006130 ALLIANCE READY MIX, INC 3088 07/1912007 324.15 324.15 132538 08/03/2007 005940 AMERICA IN BLOOM JULY 2007 07/31/2007 199.00 199.00 ~i 132539 08/03/2007 006226 APPLIED TECHNOLOGY 180954 07/20/2007 199.05 199.05 ~ 132540 08/03/2007 001944 BASIC CHEMICAL SI5335986 07/16/2007 567.86 567.86 '~ 132541 08/03/2007 000069 BAUER COMPRESSORS, INC 96128 07/11/2007 987.86 987.86 132542 08/03/2007 000090 BRISCO MILL & LUMBER 134059 07129/2007 23.66 23.66 132543 08/03/2007 006274 CAROL BROWNE 072607 07/26/2007 10.23 10.23 132544 08/03/2007 005147 BUSINESS 21 PUBLISHING 072407 07/2412007 99.00 99.00 132545 08/03/2007 000851 CA CRIME PREVENTION 071907 07/19/2007 30.00 30.00 132546 08/03/2007 000603 CAROUEST AUTO PARTS 7314-182902 08101/2007 70.03 7314-179190 07/18/2007 50.16 120.19 132547 08/03/2007 005444 CASA-COURT APP.SPECIAL 030706 08/02/2007 868.00 868.00 132548 08/03/2007 002868 MICHELLE COTA 073107 08/02/2007 74.59 74.59 132549 08/03/2007 000190 CREEK ENVIRONMENTAL 03806 07/24/2007 15.00 15.00 132550 08/03/2007 000198 L N CURTIS & SONS 113109101 07111/2007 1,400.33 113257000 07/23/2007 1,146.28 113109100 07/16/2007 843.46 113188200 07/23/2007 130.11 3,520.18 132551 08/03/2007 000201 D G REPAIR (DBA) 1918 07/1812007 80.00 80.00 ' 132552 08/0312007 005091 JOHN DEERE LANDSCAPES 12586103 07/17/2007 102.26 102.26 132553 08/03/2007 000208 J B DEWAR, INC 162002 07/10/2007 170.00 937776 07/16/2007 35.96 205.96 ~' 132554 08/03/2007 000230 NADINE ELLIOTT 073007 07130/2007 115.46 115.46 132555 08/03/2007 000234 ENTENMANN-ROVIN 0031973-IN 07123/2007 33.69 33.69 '; Page: 1 apckHist Check History Listing Page: 2 08120/2007 10:19AM CITY OF ARROYO GRANDE Bank code: boa Check # Date Vendor 132556 08/0312007 006275 FIRE-END & CROKER CORP 132557 08/03/2007 004202 CLAIRE FLOYD 132558 08103/2007 004790 DEANNA FLOYD 132559 08/03/2007 000262 FRANK'S LOCK & KEY 132560 08/03/2007 000280 GRAND PERFORMANCE 132561 08/03/2007 000288 CITY OF GROVER BEACH 132562 0810312007 004188 EDDIE HARRIS 132563 08103/2007 006276 DANIEL HILL 132564 08103/2007 001386 HOPKINS TECHNICAL 132565 08/03/2007 000348 J W ENTERPRISES 132566 08103/2007 006277 THE LIGHTHOUSE 132567 08103/2007 005511 CHRISTOPHER LINTNER 132568 08103/2007 003818 LITERACY COUNCIL 132569 08/0312007 006020 RYAN MICHAEL 132570 08/03/2007 000419 MIDAS AUTO SERVICE 132571 0810312007 000429 MINER'S ACE HARDWARE, 432.97 85.00 375.22 60.00 15.00 658.88 85.00 114.77 32.00 698.67 60.00 624.77 Page:2 Status ClearNoid Date Invoice 218209 080107 080107 25782 25732 25780 815609 073107 080107 080107 080207 004559 202546 1949230 1949231 080107 12312006 080107 18531 212417 214677 214273 213035 214882 213566 214687 212423 Inv. Date 0 711 0/2 0 0 7 08/01/2007 08/0112007 07126/2007 0 711 7/2 0 0 7 07/24/2007 07/23/2007 07/3112007 08/0112007 08/01 /2007 08/02/2007 07/16/2007 07/19/2007 07/17/2007 07/17/2007 08/01 /2007 06/29/2007 08101 /2007 07/20/2007 07/05/2007 07/22/2007 07/18/2007 07/10/2007 07/23/2007 07/13/2007 07122/2007 07105/2007 Amount Paid Check Total 84.76 84.76 48.00 48.00 48.00 48.00 284.46 78.47 70.04 85.00 197.22 178.00 60.00 15.00 658.88 85.00 79.90 34.87 32.00 698.67 60.00 624.77 31.16 25.26 23.46 19.37 17.22 16.85 11.84 10.21 apckHist 08/20/2007 10:19AM Check History Listing CITY OF ARROYO GRANDE page; 3 Bank code: boa Check # Date Vendor Status ClearlVoid Date Invoice Inv. Data Amount Paid Check Total 213962 07/16/2007 9.68 214023 07/17/2007 7.08 ~ 213779 07/15/2007 5.90 ~ 215588 07/28/2007 5.38 ' 212722 07/08/2007 4.30 215503 07/27/2007 3.22 190.93 132572 08/03/2007 000441 MULLAHEY FORD FOCS179936 07/10/2007 339.70 FOCS180027 07/13/2007 308.84 FOCS179956 07/10/2007 87.72 FOCS179984 07/12/2007 63.58 120653 07/30/2007 13.09 812.93 132573 08103/2007 000454 NATIONAL NOTARY ASSN MEMBER#15362348 08/01/2007 84.00 84.00 ' 132574 08103/2007 006268 NATL CRIME PREVENTION AR9340-653358 07/1312007 197.17 197.17 132575 08/03/2007 000472 ORCHARD SUPPLY AUTH#213002 08/01/2007 62.25 62.25 132576 08/03/2007 003265 PLATINUM PLUS FOR 7/20-6313 (06/07) 07120/2007 876.08 7120-4383 (06/07) 07/20/2007 380.32 7/20-7615 (07(08) 07/20/2007 339.80 7/20-4015(06107) 07120/2007 329.68 7/20-6289 (07/08) 07/20/2007 285.82 7/20-0918 (07/08) 07/20/2007 193.53 7/20-6321 (06/07) 07/20/2007 169.96 7/20-6305 (06/07) 07/20/2007 150.69 7120-6347 (06/07) 07/2012007 116.35 7/20-7583 (06/07) 07/20/2007 86.16 7/20-6305 (07/08) 07/20/2007 75.46 7/20-6347 (07/08) 07/20/2007 68.41 7/20-7615 (06/07) 07/20/2007 66.64 7120-6313 (07/08) 07/20/2007 61.90 7/20-7583 (07/08) 07/20/2007 39.85 7/20-6263 (07/08) 07/20/2007 39.07 7/20-9702 (06/07) 07/20/2007 33.51 7/20-6321 (07(08) 07/20/2007 23.50 3,336.73 132577 08/03/2007 000503 POOR RICHARD'S PRESS, 128193 07/17/2007 665.90 665.90 Page: 3 apckHist Check History Listing Page: 4 08/20/2007 10:19AM CITY OF ARROYO GRANDE Bank code: boa Check # Date Vendor 132578 08/03/2007 004833 STEVE ROMO 132579 08/0312007 000536 GREG ROSE 132580 08/03/2007 003649 CHARLES D (DON) RUIZ 132581 08/03/2007 000538 S & L SAFETY PRODUCTS 132582 08/03/2007 000803 SAN LUIS MAILING SERVICE 132583 08/03/2007 000575 SANTA MARIA TIRE, INC 132584 08/0312007 000578 ANGELITA ANN SARMIENTO 132585 08/03/2007 006080 MARTINA SARMIENTO 132586 08/0312007 003024 MARK SCRAPPER 132587 08/03/2007 002177 SECRETARY OF STATE 132588 08/03/2007 004860 TAMMY SMITH 132589 08/03/2007 000598 SNAP-ON TOOLS CORP 132590 08/03/2007 004393 SP MAINTENANCE 132591 08/03/2007 000609 BOB SPEAR 132592 08/03/2007 003276 TASER INTERNATIONAL INC 132593 08/03/2007 000637 TEXAS REFINERY CORP 132594 08/03/2007 006278 JEFFREY TIETZ 132595 08/03/2007 002370 TITAN INDUSTRIAL 132596 08/0312007 000659 UNDERGROUND SERVICE 132597 08/03/2007 005326 UNITED PORTFOLIO MGT INC 132598 08/0312007 002137 VERIZON WIRELESS Status Clear/Void Date Invoice Inv. Date Amount Paid Check Total 080107 08/0112007 60.00 60.00 080107 08/01/2007 160.00 160.00 080107 08/01 /2007 140.00 140.00 249811 07/20/2007 661.63 661.63 32015 08/01/2007 1,547.06 1,547.06 143899 07/20/2007 1,474.12 543726 07/18/2007 335.95 1,810.07 080107 08/01 /2007 16.00 16.00 080107 08/01 /2007 64.00 64.00 080107 08/01 /2007 100.00 100.00 MEMBER#15362348 08101/2007 40.00 40.00 080107 08/01/2007 88.00 88.00 166088 07/13/2007 220.40 220.40 19511 07/17/2007 127.50 127.50 080107 08/01 /2007 100.00 100.00 INV041063305 07126/2007 86.20 86.20 793047 07116/2007 776.65 776.65 D28752 07127/2007 40.00 40.00 1020728 07118/2007 309.85 1020659 07116/2007 29.03 338.88 70070142 07/20/2007 252.96 252.96 19741 07/10/2007 151.80 19742 07/10/2007 150.97 302.77 0573221189 07/22/2007 140.57 Page: 4 apckHist Check History Listing Page: 5 08120/2007 10:19AM CITY OF ARROYO GRANDE Bank code: boa Check # Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total 132599 08/0312007 000687 WAYNE'S TIRE, INC 132600 08/03/2007 004097 WELLS FARGO BANK NATL 132601 08103/2007 002289 WULFING'S BACKGROUND & 132602 08/03/2007 005615 AT&T/MCI 132603 08/03/2007 003074 MATTHEW BENDER & 132604 08/0312007 000110 CA ST DEPT OF 132605 08/0312007 002039 DELTA LIQUID ENERGY 132606 08/03/2007 005435 CHARLES DICKEY 132607 08/03/2007 002673 DOCTORS MEDPLUS 132608 08/03/2007 000441 MULLAHEY FORD 132609 08103/2007 000468 OFFICE DEPOT 132610 08/03/2007 000492 PETTY CASH 132611 08/03/2007 000498 PITNEY BOWES, INC 132612 08/03/2007 000538 S & L SAFETY PRODUCTS 132613 08/0312007 000556 SLO COUNTY 132614 08/03/2007 000613 STATEWIDE SAFETY & 132615 08/0312007 006279 URBAN TREE FOUNDATION 132616 08/06/2007 006280 JAMES GARDINER 0573402105 07/2212007 103.16 243.73 768599 07/16/2007 15.00 15.00 072607 07/26/2007 96,509.93 96,509.93 072607 07/2612007 50.00 50.00 T6746052 07/23/2007 287.86 287.86 51421969 07/17/2007 874.65 5142195X 07/17/2007 38.69 913.34 7164 07/13/2007 3,355.76 3,355.76 21503839 07/2012007 253.01 253.01 072607 07/26/2007 195.00 0726 07/26/2007 134.40 329.40 13883838 06/08/2007 255.00 13886510 06/29/2007 255.00 13876519 03/26/2007 75.00 585.00 120168 07109/2007 219.58 219.58 392255726001 07/06/2007 768.28 392260410001 07/06/2007 80.45 392255726002 07/06/2007 27.13 875.86 PETTY CASH-PD 08/03/2007 97.66 97.66 7147128-JY07 07/13/2007 165.00 165.00 249814 06/15/2007 150.44 150.44 51628 07/20/2007 443.37 443.37 55679 06/21/2007 1,530.00 1,530.00 3125 06/20/2007 1,556.40 1,556.40 27 07/05/2007 4,848.26 4,848.26 Page: 5 apCkHist Check History Listing Page: s 08120/2007 10:19AM CITY OF ARROYO GRANDE Bank code: lwa Check # Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Totai 132635 08/0712007 001917 BOB'S EXPRESS WASH JUNE 2007 06/30/2007 227.00 227.00 132636 0810712007 004548 CARMEL &NACCASHA, LLP V 08/10/2007 10935 08102/2007 1,541.00 1,541.00 132637 08/0712007 004548 CARMEL &NACCASHA, LLP 10934 08/02/2007 12,836.30 12,836.30 132638 08/0712007 004548 CARMEL &NACCASHA, LLP 10935a 08/02/2007 1,541.00 1,541.00 132639 08/08/2007 001473 DAVID CROCKETT REFUND 08/08/2007 6.50 6.50 132640 08/10/2007 003887 JIM BERGMAN 072307 08/09/2007 148.00 148.00 132641 08/10/2007 006281 MARY BERRY 080107 08/01/2007 60.00 60.00 132642 08/10/2007 006282 ELAINE BOZANICH 080107 08/01/2007 30.00 30.00 132643 08/10/2007 001266 BRANCH STREET DELI 1484 07/25/2007 230.59 230.59 132644 08110/2007 000094 BRUMIT DIESEL, INC 370 07/25/2007 640.12 640.12 132645 08/10/2007 004565 CAR SERVICE CENTER, INC 26561 07/24/2007 176.50 176.50 132646 08/1012007 000603 CARQUEST AUTO PARTS 7314-184064 08/06/2007 58.12 7314-182275 07/30/2007 20.26 7314-182268 07/30/2007 16.21 7314-179711 07/20/2007 15.04 7314-184055 08/0612007 12.61 7314-182778 08/01/2007 12.52 7314-180761 07/24/2007 12.06 177904 07/12/2007 11.85 158.67 132647 08/10/2007 000164 CHRISTIANSON CHEVROLET 19448 07/10/2007 62.19 62.19 132648 08/10/2007 000174 COASTLINE 3955407 07/25/2007 76.99 76.99 132649 08/10/2007 006283 CIMON CORMIER 070207 07/02/2007 60.00 60.00 132650 08110/2007 001250 CTI/VALUELINE 388795 07/18/2007 179.10 179.10 132651 0811012007 000198 L N CURTIS & SONS 113303500 07/24/2007 32.26 32.26 132652 08/10/2007 000208 J B DEWAR, INC 939193 07/3112007 224.51 22370 07/25/2007 18910 413.61 Page: 6 apCkHist 08/20/2007 10:19AM Check History Listing CITY OF ARROYO GRANDE Page: 7 Bank code: boa Check # Date Vendor Status ClearlVoid Date Invoice Inv. Date Amount Paid Check Total 132653 0811012007 003611 DISPLAY SALES COMPANY 0053778 07/2012007 525 .00 525.00 132654 08/10/2007 005688 DESERAE DOMINGUEZ 080107 08101/2007 60 .00 60.00 132655 08/10/2007 006296 DYER'S DIESELRO 22351 07/16/2007 73 .23 73.23 132656 08/1012007 001525 FERGUSON ENTERPRISES, 1341122 07/20/2007 943 .89 1343379 07/2412007 646. 46 1343776 07125/2007 9. 12 1,599.47 132657 08110/2007 006284 FIVE CITIES VINEYARD 080107 08101/2007 70. 00 70.00 132658 0811012007 004202 CLAIRE FLOYD 080807 08/08/2007 24. 00 24.00 132659 08/1012007 004790 DEANNA FLOYD 080807 08/08/2007 40. 00 40.00 132660 08/1012007 003590 SERENA FLOYD 080707 08/0712007 16. 00 16.00 132661 08/1012007 000605 THE GAS COMPANY 8/2-140 08102/2007 61. 68 8/2-211 08/02/2007 32 79 94.47 132662 08/10/2007 002405 CHUCK HARE 080707 08/07/2007 40. 00 40.00 132663 08/10/2007 004188 EDDIE HARRIS 080807 08/08/2007 100. 00 100.00 132664 08/10/2007 000311 HINDERLITER, DE LLAMAS 0013093-IN 07/24/2007 975. 00 975.00 132665 08/10/2007 000318 HOTLINE OF SLO COUNTY 06262007 06/26/2007 1,000. 00 1,000.00 132666 08/10/2007 006285 VANESSA HURTADO 080107 08/01/2007 30. 00 30.00 132667 08/10/2007 001793 J J KELLER 8 ASSOCIATES, 006870044 07/18/2007 146. 90 146.90 132668 08/1012007 003903 LAHR ELECTRIC MOTORS 3939 07/20/2007 2,205. 41 2,205.41 132669 08/1012007 006286 FABION MADINA 080107 08/01/2007 30. 00 30.00 132670 08/10/2007 006287 LISA MCKINIEY 072507 07/25/2007 22. 50 22.50 132671 0811012007 000417 MELLO & SON'S PUMPS & 2049 08/01/2007 537. 93 2050 08/01/2007 294. 16 832.09 132672 0811012007 006020 RYAN MICHAEL 080707 08/07/2007 60. 00 60.00 Page: 7 apCkHist Check History Listing Page: 8 08/20/2007 10:19AM CITY OF ARROYO GRANDE ~ Bank code: boa ! Check # Date Vendor Status Clear/VOid Date Invoice ' 132673 08110/2007 000423 MID-STATE CONCRETE 26140 132674 08110/2007 000429 MINER'S ACE HARDWARE, 216282 216290 212654 ' 215518. 214378 216894 217032 132675 08/1012007 000439 MOSS, LEVY & HARTZHEIM 2512 132676 08/1012007 000441 MULLAHEY FORD 180472 180345 132677 08/10/2007 006288 KIMBERLY NAGAYO 080107 132678 08/10/2007 002849 NEXTEL COMMUNICATIONS 933066312-069 132679 08/10/2007 004550 OAK PARK CHRISTIAN 080107 132680 08/10!2007 005744 OCEANO COMMUNITY AG-9 132681 08/10/2007 000468 OFFICE DEPOT 393871901-001 132682 08/10/2007 000481 PACIFIC GAS & ELECTRIC 7/20-194097 132683 08/10/2007 000492 PETTY CASH PETTY CASH 132684 08/10/2007 000520 QUINN COMPANY PC030148889 132685 0811012007 005284 R & B MOBILE EQUIPMENT & 1188 132686 0811012007 006289 KIT RANGEL 080107 132687 08/1012007 003800 LYN REARDON-SMITH 080907 132688 0811012007 000536 GREG ROSE 080807 132689 08/10/2007 003649 CHARLES D (DON) RUIZ 080707 132690 08/10/2007 006290 DEBRA RUSAW 080107 Inv. Date Amount Paid Check Total 07/19/2007 2,074.19 2,074.19 08102/2007 50.50 08/02/2007 43.09 07/07/2007 25.81 07/2712007 24.22 07/19/2007 22.61 08107/2007 5.92 08108/2007 1.02 173.17 07/31/2007 5,000.00 5,000.00 07/30/2007 249.22 07/24/2007 76.92 326.14 08/0112007 65.00 65.00 07/29/2007 97.86 97.86 08/01/2007 30.00 30.00 08/06/2007 1,960.00 1,960.00 07/20/2007 873.03 873.03 07120/2007 14, 019.48 14, 019.48 08/09/2007 135.25 135.25 07/25/2007 10.09 10.09 06/06/2007 228.24 228.24 08/01/2007 30.00 30.00 08/09/2007 139.00 139.00 08/0812007 240.00 240.00 08/07/2007 120.00 120.00 08/01/2007 30.00 30.00 Page: 8 apCkHist Check History Listing Page: 9 08/20/2007 10:19AM CITY OF ARROYO GRANDE Bank code: boa Check # Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total 132691 08!10/2007 000538 S & L SAFETY PRODUCTS 249812 07/20/2007 226.11 226.11 132692 08/10/2007 006291 SANTA BARBARA COUNTY 080807 08/08/2007 151.00 151.00 132693 08/10/2007 000578 ANGELITA ANN SARMIENTO 080707 08107/2007 72.00 72.00 132694 08/10/2007 006080 MARTINA SARMIENTO 081707 08/17/2007 96.00 96.00 132695 08/10/2007 000581 SUSAN SAXE-CLIFFORD 7-0730-2 07/3012007 350.00 350.00 132696 08/1012007 003024 MARK SCRAPPER 080707 08107/2007 120.00 120.00 132697 08110/2007 006292 JASON SHEWBERT 080107 08101/2007 30.00 30.00 132698 08/10/2007 004860 TAMMY SMITH 080707 08/07/2007 72.00 72.00 132699 08/10/2007 003343 SNAP-ON INDUSTRIAL 23V/13881080 07/2312007 884 30 . 23V/13883873 07/25/2007 342. 17 1,226. 47 132700 08/10/2007 000609 BOB SPEAR 080807 08/08/2007 100. 00 100. 00 132701 08/10/2007 002370 TITAN INDUSTRIAL 1020866 07124/2007 175. 25 175. 25 132702 08/10/2007 006293 HOLLY TODD 080107 08101/2007 30. 00 30. 00 132703 08/10/2007 000669 UNION ASPHALT, INC 282383 07118/2007 476. 02 282617 07/1912007 371. 37 282258 07/17/2007 355. 82 282728 07/2012007 355. 22 1,558. 43 132704 08/10/2007 006294 WESTERN FIRE CHIEFS 080707 08/09/2007 50. 00 50. 00 132705 08/1012007 006295 LARRY WINTERBOURNE 080107 08/01/2007 30. 00 30. 00 132706 08/10/2007 006059 YOUNG & ASSOC INC, 6280701 06128/2007 226. 80 226. 80 132707 08/10/2007 000127 CA ST DEPT OF FISH & GAME 081007 08110/2007 750. 00 750. 00 132708 08/13/2007 006303 JOE KING 073107 07131/2007 115. 50 115. 50 132709 08/13/2007 000403 MAINTENANCE 081307 08/13/2007 80. 00 80. 00 132710 08113/2007 006302 NEETA BONFIELD Ref000079150 08/08/2007 18. 74 18. 74 Page: 9 apCkHist Check History Listing Page: 10 08120/2007 10:19AM CITY OF ARROYO GRANDE Bank code: boa Check # Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total 132711 08/13/2007 006300 TED BURDUMY 132712 08113/2007 006298 PETER CANESSA 132713 08/1312007 006297 ROBERT GALLATY 132714 08/13/2007 006301 LAURIE ROCHA 132715 08/1312007 006299 KELLI THORNTON 161 Checks in this report Ref000079148 08108/2007 133.82 133.82 Ref000079146 08/08/2007 104.89 104.89 Ref000079145 08/08!2007 37.84 37.84 Ref000079149 08108/2007 114.60 114.60 Ref000079147 08/08/2007 281.26 281.26 boa Total: 193,776.87 Total Checks 193,778.87 (Including Voids) Less Void Checks -7541.00 Total Checks Issued 192,235.8 Page: 10 ATTACHMENT 2 DEPARTMENTAL LABOR DISTRIBUTION PAY PERIOD 7113/07 - 7/26!07 08103/07 FUND 010 431,398.02 5101 Salaries Full time 195,922.48 FUND 220 19,127.74 5102 Salaries Part-Time - PPT 24,748.22 FUND 284 715.04 5103 Salaries Part-Time - TPT 18,714.11 FUND 285 715.08 5105 Salaries OverTime 15,354.45 FUND 612 7,990.49 5107 Salaries Standby 369.00 FUND 640 21,616.44 5108 Holiday Pay 8,253.00 481,562.81 5109 Sick Pay 3,933.85 5110 Annual Leave Buyback 5111 Vacation Buyback 8,406.73 5112 Sick Leave Buyback 17,433.60 5113 Vacation Pay 16,880.01 5114 Comp Pay 7,262.36 5115 Annual Leave Pay 14,368.22 5121 PERS Retirement 72,679.38 5122 Social Security 23,263.75 5123 PARS Retirement 553.42 5126 State Disability Ins. 740.35 5127 Deferred Compensation 675.00 5131 Health Insurance 43,774.24 5132 Dentallnsurance 4,942.80 5133 Vision Insurance 1,128.42 5134 Life Insurance 571.92 5135 Long Term Disability - 5143 Uniform Allowance 5144 Car Allowance 975.00 5146 Council Expense 5147 Employee Assistance - 5148 Boot Allowance 5149 Motor Pay 75.00 5150 Bi-Lingual Pay 200.00 5151 Cell Phone Allowance 337.50 481,562.81 8.b. MEMORANDUM TO: CITY COUNCIL FROM: ANGELA KRAETSCH, DIRECTOR OF FINANCIAL SERVIC BY: FRANCES R. HEAD, ACCOUNTING SUPERVISOR SUBJECT: STATEMENT OF INVESTMENT DEPOSITS DATE: AUGUST 28, 2007 RECOMMENDATION: Staff recommends that the Council receive and file the attached report listing the current investment deposits of the City of Arroyo Grande, as of July 31, 2007, as required by Government Code Section 53646 (b). DISCUSSION: This report represents the City's investments as of July 31, 2007. It includes all investments managed by the City, the investment institution, investment type, book value, maturity date, and rate of interest. As of July 31, 2007, the investment portfolio was in compliance with all State laws and the City's investment policy. ALTERNATIVES: The following alternatives are provided for the Council's consideration: • Approve staff's recommendation; • Do not approve staffs recommendation; • Provide direction to staff. Attachment: Portfolio Summary CITY OF _~ • • CALIFORNIA ; CIN OF ARROYO GRANDE Portfolio Management Polfolio Summary July 31, 2007 City of Arroyo Grande 214 E. Branch St. Arroyo Grande, CA 93430 Phone: (805)473-5400 Interest Investments Book Value Interest Rate Rate PY Date of Purchase Tenn Maturity Date % of Portfolio Local Agency Investment Funds $ 16,266,589.30 5.26% 4.85% 92.63% Certicates of Deposit -Banks State Bank of India 200,000.00 5.64% December 8, 2006 213 August 11, 2007 1.14% Mission NB 100,000.00 5.65% July 11, 2007 365 July 11, 2008 0.57% First Credit Bank 99,000.00 5.70% July 26, 2006 365 July 25, 2007 0.56% Redding Bank of Commerce 500,000.00 5.48% February 16, 2007 9 Mos. November 17, 2007 2.85% First Standard Bank 99,000.00 5.46% December 2, 2006 365 December 2, 2007 0.56% Bank of Santa Clarita 99,000.00 5.50% March 10, 2007 365 March 10, 2008 0.56% Redding Bank of Commerce 99,000.00 5.00% April 9, 2007 366 April 9, 2008 0.56% Metro United Bank 99,000.00 5.85% September 12, 2006 730 September 12, 2008 0.56% Total Certificates of Deposit $ 1,295,000.00 Totallnvestments $ 17,561,589.30 7.37% 100.00% 8.c. TO: CITY COUNCIL MEMORANDUM FROM: ANGELA KRAETSCH, DIRECTOR OF FINANCIAL SERVICES SUBJECT: CONSIDERATION OF A RESOLUTION AUTHORIZING THE FIRE STATION EXPANSION GENERAL OBLIGATION BOND PROPERTY TAX LEVY RATE DATE: AUGUST,28, 2007 RECOMMENDATION: It is recommended the City Council adopt the attached resolution authorizing the FY 2007- 08 property tax levy approved by voters on November 5, 2002. City staff and the San Luis Obispo County Auditor Controller's Office have calculated a .00891 % levy per $100 of assessed value. FUNDING: The tax levy rate of .00891 % is expected to result in revenues of approximately $199,500. This will provide sufficient revenues for paying FY 07-08 principal and interest of $135,570; paying agent fees and banking administrative cost of $1,800; and San Luis Obispo County handling charges of $500. DISCUSSION: On November 5, 2002, voters approved Measure 0-02, authorizing the expansion of the Arroyo Grande Fire Station and the issuance of $1,900,000 in general obligation bonds. The Measure, which was approved by more than two-thirds of the Arroyo Grande voters, authorized bonded indebtedness and placing a tax on real property within the Arroyo Grande city limits. The election results were subsequently certified and the bonds issued in accordance with all laws and regulations. Interest and principal payments, paying agent fees and banking administrative costs on the general obligation bonds are due during FY 2007-08. The San Luis Obispo County Auditor-Controller requires that all tax levies be submitted by August 31, 2007 for collection and remittance in December 2007 and April 2008. Staff from the SLO Auditor-Controller's office and the City concurs on the amount required for principal, interest, and fees; the calculation arriving at the tax levy rate; and the tax levy rate amount of .00891 %. This represents a decrease from last year's rate of .00964%, and a further decrease from the rate the first year, which was .0130%. CITY COUNCIL CONSIDERATION OF GENERAL OBLIGATION BOND PROPERTY TAX LEVY AUGUST 28, 2007 PAGE 2 ALTERNATIVES: The following alternatives are provided for City Council consideration: - Approve staff recommendations by approving the attached resolution; - Do not approve staff recommendations; - Modify staff recommendations and approve; - Provide direction to staff. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AUTHORIZING THE FIRE STATION EXPANSION PROPERTY TAX LEVY FOR FISCAL YEAR 2007-08 WHEREAS, City of Arroyo Grande, County of San Luis Obispo, State of California ("City") is duly authorized and existing under the laws of said State; and WHEREAS, in the City of Arroyo Grande, a special election (the "Election") was duly and regularly held on the 5th day of November 2002, in that territory included within the boundaries of the City at which Election there was submitted to the qualified voters of said City the following question: MEASURE 0-02: Shall the City of Arroyo Grande expand the Fire Station including the addition of sleeping facilities, a federally required area for safe clean up of blood-borne pathogens, a federally required room to store turnout clothing, a system to divert vehicle exhaust from the apparatus rooms, an expanded training room, fire sprinklers, seismic retrofit of the facility to meet current standards, and expansion of the apparatus bay, by issuing $1,900,000 in general obligation bonds; and WHEREAS, more than two-thirds of the votes cast at the Election were in favor of and assented to the incurring of such indebtedness, and the City Council of the City is now authorized and empowered to provide for the form of bonds of the City, and for the issuance thereof for the purpose and objects provided for in the election, payable, principal and interest, from taxes levied exclusively upon the taxable property within the City, as permitted by law: and WHEREAS, on December 3, 2002, the City Council of the City adopted Resolution No. 3636 which certified the results of the November 5, 2002, election conducted by the Registrar of Voters, which results showed that more than two-thirds of the votes cast were in favor of the proposition to incur bonded indebtedness and levy the tax; and WHEREAS, the City issued its General Obligation Bonds, Series A of 2003 (Fire Station Project) in the amount of $1,900,000 pursuant to Resolution No. 3648, adopted by the City Council of the City, which bonds were issued for the purpose of the fire station expansion and retrofitting project (the "Bonds'); and WHEREAS, the City Council is further authorized to determine by resolution on or before August 31 of each year, the specific tax to be levied on each parcel of land in the City; and WHEREAS, it is now necessary and appropriate that the City Council of the City levy and collect the taxes for Fiscal Year 2007-08 for the purpose specified in the Election, by the adoption of a resolution; and RESOLUTION NO. PAGE 2 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby resolves as follows: 1. In accordance with Section 43632 of the Act, there is hereby levied upon the parcels of land within the City the taxes for Fiscal Year 2007-08 (the "Taxes"), at the tax rates set forth in Exhibit A attached hereto. The City Manager or his designee (the "City Manager") is designated and directed to file this Resolution with the San Luis Obispo County Auditor-Controller no later than August 31, 2007. 2. The Taxes shall be collected in the same manner as ordinary ad valorem taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in cases of delinquency as provided for ad valorem taxes, as such procedure may be modified by law or the City Council of the City from time to time. 3. The City Manager is hereby authorized to transmit a certified copy of this Resolution to the San Luis Obispo County Assessor and/or the San Luis Obispo Treasurer-Tax Collector, together with other supporting documentation as may be required to place the Taxes on the secured property tax roll for Fiscal Year 2007-08 and for the collection of the Taxes in the manner of ad valorem property taxes, and to perform all other acts which are required by the Act, or by law or deemed necessary by the City Manager in order to accomplish the purpose of this Resolution, the Act or Bond covenants. 4. The assessment shall be collected at the same time and in the same manner as County ad valorem property taxes are collected, and all laws providing for the collection and enforcement of County ad valorem property taxes shall apply to the collection and enforcement of the assessments. After collection by the County, the amount of the assessments, after deducting compensation due the County for collection, shall be paid to the City. On motion of Council Member ,seconded by Council Member and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this day of 2007. RESOLUTION NO. PAGE 3 TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY EXHIBIT A SCHEDULE OF TAX RATE Tax rate per $100 of assessed value = .00891% 8.d. MINUTES REGULAR MEETING OF THE CITY COUNCIL TUESDAY, JULY 10, 2007 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor Ferrara called the Regular City Council meeting to order at 7:03 p.m. 2. ROLL CALL City Council: Council Members Chuck Fellows, Jim Guthrie, Joe Costello, Mayor Pro Tem Ed Arnold and Mayor Tony Ferrara were present. 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, Assistant City Engineer Mike Linn, Director of Parks, Recreation and Facilities Doug Perrin, and Acting Community Development Director Kelly Heffernon. 3. FLAG SALUTE Steve Champeau, representing the Veterans of Foreign Wars, led the Flag Salute. 4. INVOCATION Retired Pastor Richard Scharn delivered the invocation. 5. SPECIAL PRESENTATIONS S.a. Honorary Proclamation -Parks and Recreation Month. Mayor Ferrara presented an Honorary Proclamation proclaiming July as "Parks and Recreation Month". Director of Parks, Recreation and Facilities Director Perrin accepted the Proclamation. 6. AGENDA REVIEW 6.a. Ordinances Read in Title Only. Council Member Costello moved, Mayor Pro Tem Arnold 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. Bob Lund spoke about the upcoming Village enhancement project, which will include new trees, street furniture, and street enhancements. 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. Action: Council Member Costello moved, and Mayor Pro Tem Arnold seconded the motion to approve Consent Agenda Items 8.a. and 8. b., with the recommended courses of action. The motion passed on the following roll-call vote: AYES: Costello, Arnold, Guthrie, Fellows, Ferrara NOES: None ABSENT: None Minutes: City Council Meeting Page 2 Tuesday, July 10, 2007 8.a. Cash Disbursement Ratification. Action: Ratified the listing of cash disbursements for the period June 16, 2007 through June 30, 2007. ' 8.b. Consideration of an Award of Contract to Souza Construction, ilnc., for Construction of the Brisco Road Rehabilitation Project, PW 2007-02. Action: 1) Awarded a contract for the construction of the Brisco Road Rehabilitation Project, PW 2007-02 to Souza Construction, Inc. in the amount of $270,878; 2) Authorized the City Manager to approve change orders not to exceed the contingency of $27,088.00 for unanticipated costs during the construction phase of the project; and 3) Transferred $107,966, currently allocated for the Annual Pavement Management Program. Mayor Ferrara requested, and the Council concurred, to move up Item 11.a. on the Agenda to be considered prior to Item 9.a. 11. NEW BUSINESS ITEM 11.a. Consideration of Confirmation of Appointment of Chief of Police. City Manager Adams presented the staff report and recommended the Council confirm the appointment of Steven Annibali as the City's new Chief of Police. Mayor Ferrara invited comments from those in the audience who wished to be heard on the matter, and upon hearing no public comments, he closed the public comment period. At Mayor Ferrara's invitation, Mr. Annibali introduced himself and briefly addressed the Council, staff, and those in the audience. Action: Council Member Costello moved to confirm the appointment of Steven Annibali as the City's new Chief of Police. Mayor Pro Tem Arnold seconded, and the motion passed on the following roll call vote: AYES: Costello, Arnold, Guthrie, Fellows, Ferrara NOES: None ABSENT: None 9. PUBLIC HEARINGS 9.a. Consideration of Development Code Amendment No. 06-004 to Change the Zoning of the Subject Property from Residential Rural (RR) to Single Family Residential (SF); Applicant -City of Arroyo Grande; Location - 12.77 Acres North of East Cherry Avenue Extension (Subarea 2 of the East Village Neighborhood Plan); and Resolution Approving Neighborhood Plan No. 04-001 (East Village Neighborhood Plan); Applicant - Creekside Estates of Arroyo Grande, LLC; Location - 22 Acres East of Noguera Court Subdivision, North of East Cherry Avenue Extension, and South of Arroyo Grande Creek. Minutes: City Council Meeting Page 3 Tuesday, July 70, 2007 Acting Community Development Director Heffernon presented the staff report and recommended the Council introduce an Ordinance amending the Zoning Map to change the designation of the subject property from Residential Rural (RR) to Single-Family (SF), and adopt a Resolution approving the East Village Neighborhood Plan. Staff responded to questions from Council regarding zoning and development standards as it relates to density; timing of infrastructure improvements; clarification concerning the Neighborhood Plan as it relates to Planned Unit Developments, proposed road widths, and agricultural buffer requirements; how changes to the project could impact the City's affordable housing allocations required by the State; whether or not all the surrounding property owners support the proposed plan; and clarification about the drainage plan and its coordination with the Neighborhood Pfan. Mayor Ferrara opened the public hearing. Mark Vasquez, representing the Subarea 2 property owners, noted that the property owners assisted in cooperative efforts to create the proposed conceptual plan. He noted that the issue tonight is a change in zoning to achieve consistency with the General Plan and to approve the Neighborhood Plan. He stated that the property owners were not presenting a specific project tonight, and that it is difficult at this time to address specific concerns expressed by the Council. He stated that the property owners have an interest in assuring infrastructure improvements are installed for future development. He emphasized that the property owners have had a significant role in creating a conceptual plan and spoke in support of approving the zone change and Neighborhood Plan. Reuel Estes, E. Cherry, stated he is the property owner most affected and to the greatest extent; that 1/3 of the land is in the agricultural buffer; expressed concern about the drainage problem; spoke about the effort put forth in the Neighborhood Plan and stated the City needs to help the property owners. Matt Janowicz, Lierly Lane, stated he currently rents; he would like an opportunity to buy property in the City; and supported the proposal. Damien Mavis, Subarea 1 developer, explained how the proposal fits into the development for Subarea 1; commended the property owners for their cooperative efforts; stated that they would be breaking ground on Subarea 1 soon and that utilities and infrastructure would be installed; noted that the proposal is a good transition into the rural area; the proposal is consistent with the Housing Element and conforms to the General Plan, and supported the proposal. Nora Loonev, Lierly Lane, thanked the neighbors for their involvement in the Neighborhood Plan. She stated that the Plan addresses all the issues; there is no opposition to the Neighborhood Plan among the current owners; and supported approval of the zone change and Neighborhood Plan. Hearing no further public comments, Mayor Ferrara closed the public hearing. Council Member Costello provided the following comments: - Supports zone change to single-family residential; however, expressed concern about potential Planned Unit Developments (PUD) that would cluster enough homes to reach the maximum allowable units and would support a condition to prohibit PUD's; - Supports approving Neighborhood Plan as submitted; - Noted that issues relating to drainage and agricultural buffers would be addressed when project applications come forth; - Does not think a Specific Plan is required. Minutes: City Council Meeting Tuesday, July 10, 2007 Page 4 Council Member Guthrie provided the following comments: - Referred to Subarea 1 and the objectives identified in the General Plan associated with rezoning the area, including a comprehensive drainage solution for Newsom Springs, opportunities for in-fill projects, and to provide an agricultural buffer that would permanently protect the neighborhood and the adjacent farm operations, and noted that these objectives were met; - Referred to Subarea 2 and stated it was his understanding that the agricultural buffer would be in place for the entire property and expressed disappointment that was not the case; does not see any alternative at this time; - Acknowledged State's affordable housing requirements; - Prefers a neighborhood drainage solution rather than addressing on individual properties; - Prefers going back to review the drainage solution; - Reluctantly supported moving forward. Council Member Fellows provided the following comments: - Concerned about lack of total drainage solution and agricultural buffer for entire area of Subarea 2; - Cannot support Plan as proposed; - Stated that the agricultural buffer is important because it will protect the farmer in the future and the homeowners that will be living in Subarea 2. Mayor Pro Tem Arnold provided the following comments: - Expressed concern that approval of the Neighborhood Plan does not provide final approval of the layouts within each Subarea and that individual proposals for each property will be reviewed separately by the City Council, and that it contradicts approval of the conceptual plan being proposed this evening. City Attorney Carmel read from Policy LU2-7 in the General Plan, which requires a Neighborhood Plan to coordinate street, drainage, water, sewer, agricultural buffer, creek trail, conservationlopen space consideration prior to approval of any subdivision or parcel map. He explained that the intent was to provide flexibility to evaluate each application as it comes in and clarified that the proposal is a conceptual plan. - Referred to the Estes property and opposed the proposed layout and density as shown in the conceptual plan. City Attorney Carmel clarified that the proposal was conceptual, was not intended to be a subdivision, that the Council would retain discretion over subdivision approvals, and approval of the Neighborhood Plan is not binding as it relates to the conceptual plan. - Inquired whether the Neighborhood Plan should identify who will bear the expense of water and sewer facilities; - Concerned about density; wants to remove option for Planned Unit Developments from the Neighborhood Plan; - Would like to document in the Plan that expenses for infrastructure improvements will be the responsibility of the applicant; - Opposes the proposed density calculated for the Estes property and would support a change in the conceptual plan to reduce the plan by one unit; could otherwise support the Neighborhood Plan as proposed. Minutes: City Council Meeting Page 5 Tuesday, July 70, 2007 Mayor Ferrara provided the following comments: - Uncomfortable that the Neighborhood Plan is not a binding document; - Recognized that the Council would have to consider each application as it comes forth individually; however, he believed that the 130 foot agricultural buffer zone shown on the map should be applied from one end of Subarea 2 to the other; - Prefers that the agricultural buffer in Subarea 2 have a softer look than Subarea 1 as it is transitioning into a more rural area; - Expressed concerns about the overall drainage issue in this area and preferred that staff continue to work with the property owners to create a comprehensive drainage plan; - Supported removing the PUD option from the Neighborhood Plan. Council Member Costello moved to introduce an Ordinance of the City Council of the City of Arroyo Grande amending the Zoning Map to designate the subject property as Single-Family Residential, Development Code Amendment 06-004, Applied for by the City of Arroyo Grande for property located north of the East Cherry Avenue Extension (Subarea 2 of the East Village Neighborhood Plan), to exclude Planned Unit Developments in this area; to direct staff to continue to work with any potential applicants on any potential projects to provide drainage plans that will benefit multiple properties; and that the cost of the infrastructure improvements are to be borne by the applicants. City Attorney Carmel advised the Council it would be more appropriate to consider approval of the Neighborhood Plan prior to introducing the ordinance for the Development Code Amendment. Council Member Costello tabled the motion. Council Member Costello moved to adopt a Resolution of the City Council of the City of Arroyo Grande approving East Village Neighborhood Plan (Neighborhood Plan Case No. 04-001) for approximately 22 acres located east of the Noguera Court Subdivision, north of the East Cherry Avenue Extension, and south of Arroyo Grande Creek; Applicant - Creekside Estates of Arroyo Grande, LLC. Mayor Pro Tem Arnold seconded the motion. Discussion ensued concerning the removal of PUD's from the Neighborhood Plan, and City Attorney Carmel informed the Council that the Plan contains numerous references to PUD's and he suggested the Council take tentative action to approve the Plan in order to allow staff to thoroughly review and revise the document based on the Council's direction. Mayor Ferrara asked for clarification that if the Council took tentative action to approve the Plan, then it would come back to the Council in a revised form for final approval. City Attorney replied that was correct. Action: Council Member Costello amended his motion to take tentative action to adopt the Resolution approving the East Village Neighborhood Plan. Mayor Pro Tem Arnold asked if this included a modified Site Plan to reflect seven lots on the Estes property instead of eight. Council Member Costello stated that it was not necessary at this time as the Council would have the option to review individual development proposals on their own merits as they come forward. Discussion ensued to clarify that the Neighborhood Plan would be modified to remove the option for PUD's in Subarea 2 and to include a more detailed drainage strategy for Subarea 2. Mayor Ferrara seconded the amended motion. Minutes: City Council Meeting Page 6 Tuesday, July 10, 2007 Council Member Fellows expressed concern about dealing with the agricultural buffer later as projects come forward in Subarea 2, as only the people that own land in or adjacent to the buffer would be responsible for providing the buffer. He said that leaves fewer than half of the property owners who would bear that burden. The motion passed on the following roll-call vote: AYES: Costello, Ferrara, Guthrie NOES: Fellows, Arnold ABSENT: None City Attorney Carmel recommended that the Council defer taking action on the Development Code Amendment until the Neighborhood Plan has been modified and approved. Action: Council Member Costello moved to continue consideration of the Development Code Amendment to a date uncertain. Mayor Pro Tem Arnold seconded. Mayor Ferrara requested that this item be expedited and returned to the Council as soon as possible. The motion passed on the following roll-call vote: AYES: Costello, Arnold, Guthrie, Fellow, Ferrara NOES: None ABSENT: None Mayor Ferrara called for a break at 9:05 p.m. The Council reconvened at 9:15 p.m. 10. CONTINUED BUSINESS ITEM 10.a. Consideration of Resolution Certifying a Five-Year Radar Speed Survey and Establishment of Speed Limits on Rancho Parkway, Valley Road and North Halcyon Road. Assistant City Engineer Linn presented the staff report and recommended the Council adopt a Resolution certifying alive-year radar speed survey establishing speed limits on Rancho Parkway, Valley Road and North Halcyon Road. Mayor Ferrara invited comments from those in the audience who wished to be heard on the matter, and upon hearing no public comments, he closed the public comment period. Council comments included acknowledgement of the restriping on Rancho Parkway, which has appeared to calm traffic speed; and support for the Resolution as proposed. Mayor Pro Tem Arnold moved to adopt a Resolution as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE CERTIFYING THE FIVE-YEAR RADAR SPPED SURVEY AND ESTABLISHING SPEED LIMITS ON RANCHO PARKWAY, VALLEY ROAD AND NORTH HALCYON ROAD". Council Member Fellows seconded, and the motion passed on the following roll call vote: Minutes: City Council Meeting Page 7 Tuesday, July 10, 2007 AYES: Arnold, Fellows, Costello, Guthrie, Ferrara NOES: None ABSENT: Arnold 11. NEW BUSINESS ITEM 11.b. 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 in the project area and stepped down from the dais. Director of Public Works Spagnolo presented the staff report and stated that the Traffic Commission recommended the City Council approve Option A for the proposed striping revisions on East Grand Avenue between Halcyon Road and EI Camino Real for a center left turn lane. Mayor Ferrara invited comments from those in the audience who wished to be heard on the matter. Evan Larson, Le Point Street, referred to the City Council's adoption of the Strategic Plan and the goal for providing balanced transportation facilities in the City. He stated there was no bikeway currently along E. Grand Avenue and referred to the City's goal to create a minimum of five new bike lanes in the City; requested the Council not approve Option A; and requested the Council continue the item to seek further public input on the matter. Adam Fukushima, representing SLO Bicycle Coalition, spoke in support of bike lanes on E. Grand Avenue. Fred Pope, 715 & 717 E. Grand Avenue, spoke in support of Option B and noted he wanted the parking in front of his building removed. Ted Aclan presented a petition signed by 86 members of the community in support of Option B. Tom Gerard, 723 E. Grand, spoke in support of Option A; stated that E. Grand Avenue is a business route; and stated E. Grand Avenue is not a safe route for bicycles. Jessica Balseiro submitted a letter, which was read into the record by a member of the public, in support of Option A. Ron Gould, E. Grand Avenue, spoke in support of Option A. Kenneth Price spoke in support of Option B. Warren Hockingberry spoke in support of Option B. Upon hearing no further public comments, Mayor Ferrara closed the public comment period. Council comments included support for the restriping plan identified in Option B which would provide a bike lane with 11-foot travel lanes on both sides of E. Grand Avenue except for mid- block; support for creating additional bike lanes in the City; acknowledgement that bike lanes are a key part of the City's Bike Plan, Circulation Plan, Strategic Plan, and Economic Element; that bicycling is more than recreational, it provides another form of transportation; that bike lanes provide a path to the schools; that most businesses have available on-site parking; that the City should assist those property owners to identify alternative parking arrangements or investigate the use of passenger loading and unloading zones; that a large segment of the community supports Minutes: City Council Meeting Tuesday, July 10, 2007 Page 8 additional bike lanes; and acknowledgement of safety concerns for bicyclists as it relates to visibility. Action: Mayor Pro Tem Arnold moved to approve Option B for the proposed striping revisions on East Grand Avenue. Council Member Guthrie seconded, and the motion passed on the following roll call vote: AYES: Arnold, Guthrie, Costello, Ferrara NOES: None ABSENT: Fellows Council Member Fellows returned and took his place at the dais. 12. CITY COUNCIL MEMBER ITEMS None. 13. CITY MANAGER ITEMS None. 14. COUNCIL COMMUNICATIONS Mayor Pro Tem Arnold referred to Heacock Welding and Ira's Bike Shop, two merchants located in the Village, where he had recently conducted business and thanked them for their good work and professionalism. Mayor Ferrara distributed material to staff concerning a potential class action lawsuit relating to unpaid transient occupancy taxes to cities by online travel booking services, and requested that City staff follow up on the matter. 15. STAFF COMMUNICATIONS None. 16. COMMUNITY COMMENTS AND SUGGESTIONS None. 17. ADJOURNMENT Mayor Ferrara adjourned the meeting at 10:18 p.m. Tony Ferrara, Mayor ATTEST: Kelly Wetmore, City Clerk (Approved at CC Mtg ) 8.e. MEMORANDUM TO: CITY COUNCIL FROM: KELLY WETMORE, DIRECTOR OF ADMINISTRATIVE SERVICES/CITY CLERK ~ ~/,_ ~ SUBJECT: AUTHORIZATION TO REJECT CLAIM FILED AGAINST THE CITY - CLAIMANT: STATE FARM INSURANCE (DIAS) DATE: AUGUST 28, 2007 RECOMMENDATION: It is recommended the City Council reject the claim and authorize the City Clerk to send a standard rejection letter to the claimant as recommended by the City's Claims Administrator, Carl Warren & Company. FUNDING: None. DISCUSSION: State Farm Insurance, as subrogee for Rebecca & Lunsi Dias, filed a timely claim against the City on June 7, 2007. Carl Warren & Company, the City's claims administrator, is recommending that the claim be rejected on the basis of the claim administrator's investigation and authorize the City Clerk to send a standard rejection letter to the claimant. The statute of limitations will run six months from the date the rejection letter is sent. ALTERNATIVES: 1. Reject the claim and authorize the City Clerk to send a standard rejection letter to the claimant. 2. Take no action; however, this will extend the statute of limitations. Attachment: None, claim on file in the City Clerk's office. 8.f. MEMORANDUM TO: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER /~ SUBJECT: CONSIDERATION OF AGREEMENT FOR LEGAL SERVICES DATE: AUGUST 28, 2007 RECOMMENDATION: It is recommended the City Council: 1) approve the attached revised Agreement for Legal Services with Carmel &Naccasha; and 2) appropriate an additional $15,000 for legal services. FUNDING: It is estimated that the amendment to the Agreement will result in an increased annual cost of approximately $25,000. Of this, $10,000 is available in both years of the existing Bi-Annual Budget. Therefore, an additional appropriation of $15,000 in FY 2007-08 and FY 2008-09 is necessary. It is proposed that available funding will be available from two new proposed cell tower lease agreements. DISCUSSION: The City has had an Agreement with the City Attorney for legal services for the past 12 years, currently with Carmel &Naccasha and formerly with Lyon & Carmel. There has been no change in the rate structure for this entire period. Proposed is an increase at this time from $140 per hour to $165 per hour for general services and from $160 per hour to $180 per hour for special services. This will bring the rate more in line with other cities in the county, although the rate will remain lower than a number of the cities. Attached is a revised Agreement, which implements this change. All other terms of the Agreement remain the same. S:WdminisUration\CITY MANAGER\STEVE\Council Reports\City Attorney Agreement 8.28.07.doc CITY COUNCIL CONSIDERATION OF LEGAL SERVICES AGREEMENT AUGUST 28, 2007 PAGE 2 ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Approve Agreement and appropriate additional funding in the amount of $15,000 per year; - Modify and approve the Agreement and appropriation; - Do not approve Agreement or funding; - Provide direction to staff. Attachments: Agreement for Legal Services S:Wdministra[ion\CITY MANAGER\STEVE\Council Reports\City Attorney Agreement 8.28.07.doc AGREEMENT FOR LEGAL SERVICES THIS AGREEMENT is entered into by and between the CITY OF ARROYO GRANDE (hereinafter "CITY") and CARMEL & NACCASHA LLP (hereinafter "ATTORNEY"). This Agreement is required by Business and Professions Code Section 6148 and is intended to fulfill the requirements of that section. ATTORNEY maintains errors and omissions insurance coverage applicable to the services to be rendered pursuant hereto. 1. CITY hereby employs ATTORNEY to act as attorney for CITY as a part- time independent contractor. 2. ATTORNEY shall be paid at an hourly rate of One Hundred Sixty Five dollars ($165) for regular duties by an attorney of the firm for ordinary services including, but not limited to. a. Drafting and review of ordinances, resolutions, contracts, leases, opinions, and similar documents; b. Attendance at City Council meetings; c. Rendering written and oral opinions to the City Council and/or City Manager; d. Reviewing contracts for correct legal form and content for insurance compliance. 3. ATTORNEY shall be paid at the increased rate of One Hundred Eighty dollars ($180) per hour when assigned to perform any of the following duties or services: a. Defending or prosecuting actions in all courts or administrative agencies on behalf of the CITY; b. Representing the CITY or CITY's officers before local, State or Federal Courts, boards, or commissions when there is opposing counsel, or when specifically requested to do so by the CITY; c. Any other unusual, extraordinary, or complicated matters as requested by CITY. 4. ATTORNEY shall provide the services referred to in Paragraphs 2 and 3 only as requested by CITY's Council, its Mayor, or the CITY's City Manager. 5. In addition to his hourly compensation, ATTORNEY will be reimbursed for out-of-pocket expenses for such items as court filing fees, long distance telephone calls, photocopying, fax charges and other similar out-of-pocket items. 6. It is understood and agreed that ATTORNEY may retain, on behalf of CITY, special counsel to associate with ATTORNEY in any matter customarily requiring or warranting the need of such special counsel by reason of their expertise in particular matters, upon the recommendation of ATTORNEY and approval and authorization thereof by the City Council or City Manager. 7. ATTORNEY is employed to serve at the pleasure of the CITY's Council and shall at all times hold himself ready to perform CITY's duties pursuant to this Agreement. However, it is understood that ATTORNEY is free to engage in a full-time private practice and it will be necessary to provide adequate notice to ATTORNEY of the need for extraordinary service. 9. This Agreement supersedes any and all prior agreements. This Agreement can be terminated by either party giving (90) days written notice. Dated: .2007 CITY OF ARROYO GRANDE: By: TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK CARMEL & NACCASHA LLP: By: TIMOTHY J. CARMEL 8.9• MEMORANDUM TO: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER ,~' , SUBJECT: CONSIDERATION OF SALARY AND MANAGEMENT EMPLOYEES DATE: AUGUST 28, 2007 ADJUSTMENTS FOR RECOMMENDATION: It is recommended the City Council adopt the attached resolution approving salary and benefit adjustments for management employees for FY 2007-08 and FY 2008-09. FUNDING: The cost impact of the recommendation is approximately $125,000 for FY 2007-OS and $130,000 for FY 2008-09. Sufficient revenue is available in the existing FY 2007-08/ FY 2008-09 Bi-Annual Budget. If approved, the appropriate adjustments will be made at the first quarter budget report. DISCUSSION: Management compensation is reviewed on an annual basis and adjustments are normally recommended in conjunction with the annual budget process. The City's current salary and classification system was structured based on a compensation and classification study completed by Ralph Andersen & Associates in September 1997. As noted in the study, the goals of the City's compensation plan are to: Ensure that the City has the ability to attract and retain. well-qualified personnel for all job classes; Ensure that the City's compensation practices are competitive with those of comparable employers; Provide defensibility to City salary ranges based on the pay practices of similar employers; and Ensure pay consistency and equity among related classes based on the duties and responsibilities assumed. CITY COUNCIL MANAGEMENT SALARY AND BENEFIT ADJUSTMENT AUGUST 28, 2007 PAGE 2 In order to maintain these goals, the attached resolution will implement the following salary and benefit adjustments to all management classifications: • 4% cost of living adjustment (COLA) effective June 29, 2007; • 4% COLA effective June 27, 2008; • Increase in the amount of maximum accumulated annual leave from 725 to 750 hours; • Increase in severance pay for department directors from 3 months to 4 months; • Employees will pay 12.5% of increase in medical insurance premium for 2008 and 25% in 2009; • Auto allowance will increase from $200 to $275 per month for the Director of Parks, Recreation & Facilities, Director of Public Works, and Director of Community Development effective January 1, 2008; • Retiree medical cost control measures implemented with unions will apply to management employees; and • Employees will be eligible for an additional 1% merit bonus pay based upon a program and criteria that the City Manager will present to the City Council by November 2007. These recommendations are designed to balance needs for efficiency and to maintain a quality workforce. The recommendations are fiscally responsible, do not exceed funding available, make progress towards maintaining competitive salaries, but also maintain salary and benefit levels that do not exceed the majority of other cities in San Luis Obispo County. ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Adopt resolution approving the proposed salary and benefit adjustments; - Modify as appropriate and adopt the resolution; - Do not adopt the resolution; - Provide direction to staff. - S:\P.dministration\CITY MANAGER\STEVE\Council Reports\Salary and Benefit Reports\Management Salary Benefit Report FY 2007-OS.doc RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING SALARY ADJUSTMENTS FOR MANAGEMENT EMPLOYEES FOR FISCAL YEAR 2007-08 AND FISCAL YEAR 2008-09 WHEREAS, the City Council of the City of Arroyo Grande ("City") deems it in the best interest of the City that compensation for management employees be adjusted as hereinafter provided. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande that: Salary ranges for management employee classifications shall be adjusted as designated in Exhibit "A" attached hereto and incorporated herein bythis reference, to be effective beginning June 29, 2007. 2. Salary ranges for management employee classifications shall be adjusted as designated in Exhibit "B" attached hereto and incorporated herein bythis reference, to be effective for the pay period beginning June 27, 2008. 3. 4. 5. Maximum accumulated annual leave for management employee classifications shall be increased from 725 to 750 hours effective August 1, 2007. Severance pay provisions for department director classifications shall be increased from 3 months to 4 months effective August 1, 2007. For the period of January 1, 2008 through December 31, 2008, the City shall pay the amount in effect on December 31, 2007 for medical insurance benefits for management employee classifications, plus 87.5% of any increase to the premium for the base plan available to the City. For the period of January 1, 2009 through December 31, 2009, the City shall pay the amount in effect on December 31, 2008 for medical insurance benefits for management employee classifications, plus 75% of any increase to the premium for the base plan available to the City. Automobile allowance shall be increased from $200 to $275 per month for the Director of Public Works, Director of Parks, Recreation & Facilities, and Director of Community Development effective January 1, 2008. Any retiree medical cost control measures negotiated and implemented with unions representing other full-time City employees shall be applied to management employee classifications. RESOLUTION NO. PAGE 2 9. Management employee classifications shall be eligible for an additional 1 % merit bonus pay, which will be based upon a program, schedule and criteria that the City Manager will present to the City Council for consideration by November 2007. No eligibility for merit pay shall take effect until the program criteria and guidelines are presented and approved. 10. All other management employee salary and benefit terms and conditions remain in full force and effect. On motion of Council Member seconded by Council Member and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this day of , 2007. RESOLUTION NO. PAGE 3 TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY EXHIBIT "A" CITY OF ARROYO GRANDE Management Salary Ranges 4.0% Salary Range Adjustments 06-29-07 Range LOW MID HIGH M-10 Old 2,224 2,451 2,703 New '2,313 2,549 2,811':: M-11 Old 2,279 2,512 2,770 New '.2;370- '2,612, 2;881- M-12 Old 2,336 2,577 2,841 New 2,429 2;680 .2,955 M-13 Old 2,394 2,641 2,911 New, 2;490 2;747' 3;027 M-14 Old 2,454 2,706 2,984 New 2,552 2,814 3;103' M-15 Old 2,515 2,773 3,059 'New 2;616. 2,884' 3;181, M-16 Old 2,579 2,844 3,134 New 2,682.. 2;958- 3;259- M-17 Old 2,643 2,914 3,214 New 2;749 3;031 3;343,. M-18 Old 2,709 2,987 3,294 New 2;817 3,106'' 3;426 M-19 Old 2,776 3,062 3,376 New .2,887 3,184 3;511' M-20 Old 2,846 3,138 3,461 New 2;960 - 3,264 - 3;599 M-21 Old 2,917 3,217 3,547 New ,3;034 3;346 3,689' M-22 Old 2,990 3,297 3,635 New 3;110 3;429 3,780! M-23 Old 3,065 3,379 3,727 New 3;188 ' 3,514 3;876 Position Office Assistant I Office Assistant II EXHIBIT "A" CITY OF ARROYO GRANDE Management Salary Ranges 4.0% Salary Range Adjustments 06-29-07 4.0% 4.0% 4.0% Range LOW MID HIGH Position M-24 Old 3,141 3,464 3,819 Administrative Secretary New. '3,267 3,603 3,972 M-25 Old 3,220 3,551 3,915 ,New 3;349- 3;693 4,072 M-26 Old 3,300 3,639 4,013 New 3;432' 3,785 4;174. M-27 Old 3,382 3,730 4,114 New 3;512:, 3,879,.:.. 4,279°-. M-28 Old 3,468 3,824 4,216 New 3;607 3;977 4;385 M-29 Old 3,554 3,919 4,322 Executive Secretary `New 3;696 4,076 ! 4;495 M-30 Old 3,642 4,017 4,430 .New., ;3788 4,178 4;607 M-31 Old 3,734 4,118 4,540 New '' 3;883 4;283 4,722' M-32 Old 3,828 4,221 4,653 New 3;981 4;390 ,_.4;839 M-33 Old 3,923 4,326 4,771 Assistant Planner `New 4>080 ! 4 499 .` 4;967 M-34 Old 4,021 4,434 4,890 New 4,182 !' 4,611 `5,086 M-35 Old 4,122 4,545 5,011 New 4,287'. 4,727• 5,211 M-36 Old 4,225 4,659 5,137 New :4;394 4,845 5;342- EXHIBIT "A" CITY OF ARROYO GRANDE Management Salary Ranges 4.0% Salary Range Adjustments 06-29-07 4.0% 4.0% 4.0% Range LOW MID HIGH M-37 Old 4,330 4,776 5,265 New 4;503 :,:;4,967 5,476'• M-38 Old 4,438 4,894 5,397 New , 4,616 _. 5,090 5,613: M-39 Old 4,549 5,016 5,531 New 4;731 5;217. 5,752'. M-40 Old 4,663 5,143 5,670 New , 4;850..- '5,349 5,897 M-41 Old 4,780 5,270 5,812 New 4;971 5,481. 6,044'- M-42 Old 4,899 5,403 5,958 New.. 5;Q95 5;619:. 6;196.. M-43 Old 5,022 5,538 6,106 New 5,223 5;760 6;350 "; M-44 Old 5,147 5,676 6,259 New 5,353 5,903' 6;509.;;, M-45 Old 5,275 5,818 6,415 New 5;486 '' 6,051 6,672" M-46 Old 5,408 5,964 6,575 New 5;624 6;203 6,838`'.: M-47 Old 5,544 6,113 6,740 New 5,766 .6;358 7;010 M-48 Old 5,681 6,265 6,908 New'', 5;908'_.._: :6,516 7,184 M-49 Old 5,824 6,422 7,081 New 6,057 6,679 7,364-` M-50 Old 5,970 6,583 7,258 New. 6,209' .6;846 7;548 = Position Associate Planner Accounting Supervisor Executive Assistant to the C.M. Information Technology Manager Building Official Human Resources Manager Administrative Services Director EXHIBIT "A" CITY OF ARROYO GRANDE Management Salary Ranges 4.0% Salary Range Adjustments 06-29-07 4.0% 4.0% 4.0% Range LOW MID HIGH Position M-51 Old 6,119 6,747 7,440 New 6;364- ~" 7;017 .7,738 M-52 Old 6,272 6,916 7,627 Assistant City Engineer New 6,523 :- 7,193, 7,932 M-53 Old 6,429 7,088 7,816 New 6,686 7;372 :8;129. M-54 Old 6,589 7,266 8,012 New 6;853 7,557 8,332.`' M-55 Old 6,754 7,447 8,212 Police Commander New 7;024 7;745 8;540- M-56 Old 6,923 7,634 8,418 :New 7;200; °' 7;939. :8,755 M-57 Old 7,095 7,824 8,628 -New ,7;379- 8,137 __ 8;973'.. M-58 Old 7,274 8,020 8,843 ' New ,,7;565 ': 8,341 9,197• M-59 Old 7,454 8,221 9,065 New 7;752 " i 8,550 9,428 . M-60 Old 7,642 8,426 9,292 Pks, Rec. & Facilities Director New 7;948 8,763 9,664,. Financial Services Director M-61 Old 7,833 8,637 9,524 C.D. Director New 8;146 7;: 8,982 ''9,905 M-62 Old 8,027 8,853 9,762 Building & Fire Director New 8,348 9,207 " 10,152' P.W. Director M-63 Old 8,228 9,074 10,005 New 8;557 ': 9,437 10,405 M-64 Old 8,434 9,301 10,256 Police Chief 'New 8;771 ~ ::: 9,673 10,666:' EXHIBIT "A" CITY OF ARROYO GRANDE Management Salary Ranges 4.0% Salary Range Adjustments 06-29-07 4.0% 4.0% 4.0% Range LOW MID HIGH M-65 Old 8,646 9,533 10,512 New 8;992. 9,914- 10,932' M-66 Old 8,861 9,772 10,775 New 9;215 10,163 11;206.. M-67 Old 9,083 10,016 11,045 New 9;446 10;417 11,487 M-68 Old 9,311 10,266 11,321 New 9;683 10;677 11,774 M-69 Old 9,542 10,523 11,604 New 9;924. 10,944 12,068 M-70 Old 9,782 10,785 11,894 New 10;173 11,216- 12;370 M-71 Old 10,027 11,057 12,191 New 10;428 11;494 12,679 M-72 Old 10,278 11,332 12,496 :New 10;689 11,785 12;996 M-73 Old 10,535 11,616 12,808 New- 10,956 12;081 13,320 M-74 Old 10,798 11,906 13,128 New 11,230 12;382 13;653 M-75 Old 11,067 12,204 13,457 New 11,510 12;692 13,995 Position EXHIBIT "B" CITY OF ARROYO GRANDE Management Salary Ranges 4.0% Salary Range Adjustments 06-27-OS 4.0% 4.0% 4.0% Range LOW MID HIGH M-10 Old 2,313 2,549 2,811 New '2;406 2;651 2;923 M-11 Old 2,370 2,612 2,881 New '2;465" 2,716; 2,996 M-12 Old 2,429 2,680 2,955 New 2;526 2,787- 3;073 M-13 Old 2,490 2,747 3,027 New. 2,590, 2,857 3,148'; M-14 Old 2,552 2,814 3,103 New 2,654 2,927 '. 3;227 M-15 Old 2,616 2,884 3,181 New. 2,721 2,999: 3;308 M-16 Old 2,682 2,958 3,259 New 2;789 3,076- 3;389 , M-17 Old 2,749 3,031 3,343 New 2;859 '3;152. 3;477' M-18 Old 2,817 3,106 3,426 New ' ' 2,930: 3;230 3,563; M-19 Old 2,887 3,184 3,511 New 3;002 -3,311 3,651 M-20 Old 2,960 3,264 3,599 New - 3;078 ,.3;395', 3,743' M-21 Old 3,034 3,346 3,689 New 3,155 3;480 3;837 M-22 Old 3,110 3,429 3,780 New 3;234 ' ,3;566 3,931 M-23 Old 3,188 3,514 3,876 New - 3;316 3,655:. 4;031` Position Office Assistant I Office Assistant II EXHIBIT "B" CITY OF ARROYO GRANDE Management Salary Ranges 4.0% Salary Range Adjustments 06-27-OS Range M-24 Old New M-25 Old New M-26 Old New M-27 Old :New M-28 Old -New. M-29 Old New M-30 Old New M-31 Old New M-32 Old '' New M-33 Old 'New M-34 Old New M-35 Old New M-36 Old New 4.0% 4.0% 4.0% LOW MID HIGH Position 3,267 3,603 3,972 Administrative Secretary '.3,398 8,747 :4;131 3,349 3,693 4,072 3;483 3,841 4,235" 3,432 3,785 4,174 3,569- 3,93b- 4,341 3,517 3,879 4,279 3,658 ` ° 4;034 ,4,450 3,607 3,977 4,385 3,75T ' 4;136 4,560 3,696 4,076 4,495 Execurive Secretary ,3;844 ,, 4;239 4,675 3,788 4,178 4,607 .3,940 '' 4;345 4;791' 3,883 4,283 4,722 4,038::- 4,454 4,911. 3,981 4,390 4,839 4;140:° 4,566' 5>033' 4,080 4,499 4,962 Assistant Planner 4;243 4;679- .5;160 4,182 _ ... 4,611 5,086 . _. 4,349,. .::: 4,795 5,289', 4,287 4,727 5,211 4,458 4,916 5,419 4,394 4,845 5,342 4;570 5,039 5,556.: EXHIBIT "B" CITY OF ARROYO GRANDE Management Salary Ranges 4.0% Salary Range Adjustments 06-27-08 4.0% 4.0% 4.0% Range LOW MID HIGH Position M-37 Old 4,503 4,967 5,476 Associate Planner New 4;683 ; 5,166 5,695 Accounting Supervisor M-38 Old 4,616 5,090 5,613 !New 4,801 ~ 5,294 '' 5;838-' M-39 Old 4,731 5,217 5,752 Executive Assistant to the C.M. New 4,920 5;426 ~ ;;5,982 M-40 Old 4,850 5,349 5,897 New `5,044 5,563 ''' 6,133' M-41 Old 4,971 5,481 6,044 :New '5,170 ,+' 5;700 6;286- M-42 Old 5,095 5,619 6,196 New 5,299 °5;844 6,444 '. M-43 Old 5,223 5,760 6,350 New 5,432.: 5,990 - 6';604 M-44 Old 5,353 5,903 6,509 New ,;5,567 6,139; ': ~ 6,769. M-45 Old 5,486 6,051 6,672 Information Technology Manager New. 5,705 6,293 ' 6;939 M-46 Old 5,624 6,203 6,838 New 5;849 6,451 '7,112 M-47 Old 5,766 6,358 7,010 New 5,997 6,612!- 7;290 M-48 Old 5,908 6,516 New 6,144 ` '6,772 M-49 Old 6,057 6,679 New 6,299 ' :: ;' 6,946' M-50 Old 6,209 6,846 New 6,457 ~. 7,120 7,184 Building Official 7,471' Human Resources Manager Administrative Services Director 7,364 7;659 7,548 7,850 EXHIBIT "B" CITY OF ARROYO GRANDE Management Salary Ranges 4.0% Salary Range Adjustments 06-27-08 4.0"/0 4.0% 4.0"/0 Range LOW MID HIGH Position M-51 Old 6,364 7,017 7,738 New 6;619' _ _ 7,298 _ 5;048 M-52 Old 6,523 7,193 7,932 Assistant City Engineer New 6;784: 7,481 8,249 M-53 Old 6,686 7,372 8,129 New :6;953 7;667 - 8,454 M-54 Old 6,853 7,557 8,332 New 7,127 7,859 8,665 M-55 Old 7,024 7,745 8,540 Police Commander New `- 7,305 8,055 8,882''-, M-56 Old 7,200 7,939 8,755 New 7;488 8;257 9,lOS M-57 Old 7,379 8,137 8,973 New 7;674 ! 8;462 - ; 9;332 M-58 Old 7,565 8,341 9,197 New = 7,868 8,675 9,565 M-59 Old 7,752 8,550 9,428 New '8,062: 8,892 ' 9,805 ' M-60 Old 7,948 8,763 .9,664 Pks, Rec. & Facilities Director New. '81266 9,114 '10,051 Financial Services Director M-61 Old 8,146 8,982 9,905 C.D. Director New 8;472 9,341;_;: 10,301, M-62 Old 8,348 9,207 10,152 Building & Fire Director 'New $;682 9;575 10,558 ' P.W. Director M-63 Old 8,557 9,437 10,405 New 8;899 9,814' 10;821 M-64 Old 8,771 9,673 10,666 Police Chief New :,9,122 10;060 11,093 EXHIBIT "B" CITY OF ARROYO GRANDE Management Salary Ranges 4.0% Salary Range Adjustments 06-27-08 4.0% 4.0°/a 4.0% Range LOW MID HIGH M-65 Old 8,992 9,914 10,932 New 9,357 ; 10;311 11,369 M-66 Old 9,215 10,163 11,206 New ' 9;584 10,570- 11,654 - M-67 Old 9,446 10,417 11,487 New '' 9;$24 10;834 ,11;946,: M-68 Old 9,683 10,677 11,774 New 10,070 11;104 12,245 M-69 Old 9,924 10,944 12,068 New 10,321- ' .11;382, 12;551 M-70 Old 10,173 11,216 12,370 New 10;580 11;665 12,865 ' M-71 Old 10,428 11,499 12,679 New '-'-' 10,845',... 11,959 13,186 M-72 Old 10,689 11,785 12,996 New 11,117 `'' 12,256 "' 13,516 M-73 Old 10,956 12,081 13,320 New 11;394 12;564 13,853 M-74 Old 11,230 12,382 13,653 New 11;679 12,877 -, 14,199. M-75 Old 11,510 12,692 13,995 New 11,970 13;200 14;555 Position 8.h. TO: FROM: SUBJECT: DATE: MEMORANDUM CITY COUNCIL STEVEN ADAMS, CITY MANAGER CONSIDERATION OF TIME EMPLOYEES AUGUST 28, 2007 COMPENSATION ADJUSTMENTS FOR PART- RECOMMENDATION: It is recommended the City Council adopt the attached resolution approving a 4% Cost of Living ("COLA") adjustment for all part-time employees for FY 2007-08 effective June 29, 2007 and a 3% COLA for FY 2008-09 effective June 27, 2008. FUNDING: The cost impact to the General Fund of the recommendation is approximately $34,000 for FY 2007-08 and $26,000 for FY 2008-09. Available funding exists in the FY 2007- 08/ FY 2008-09 Bi-Annual Budget. Necessary adjustments will be made in the First Quarter Budget Report. DISCUSSION: In order to continue to enable the City to recruit and maintain quality employees in part- time positions, it is recommended that a 4% COLA be provided to all part-time employees, effective June 29, 2007, and another COLA of 3% be provided effective June 27, 2008. ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Adopt resolution approving the COLAs; - Modify as appropriate and adopt the resolution approving COLAs at a different percentage; - Do not adopt the resolution - Provide direction to staff. S:\Administration\CITY MANAGER\STEVE\Council Reports\Salary and Benefit Reports\Part-Time Salary Benefit Report FY 2007-08. FY 2008-09.doc RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING A SALARY AND BENEFIT PROGRAM FOR PART-TIME EMPLOYEES FOR FISCAL YEAR 2007-OS AND FISCAL YEAR 2008-09 WHEREAS, the City Council of the City of Arroyo Grande ("City") deems it in the best interest of the City that compensation for part-time employees be fixed as hereinafter provided. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande that: 1. Part-time employees shall receive the salaries as designated in Exhibit "A" attached hereto and incorporated herein by this reference effective for the pay period beginning June 29, 2007. 2. Part-time employees shall receive the salaries as designated in Exhibit "B" attached hereto and incorporated herein by this reference effective for the pay period beginning June 27. 2008. 3. All other part-time employee salary and benefit terms and conditions remain in full force and effect as set forth in Resolution No. 3463. On motion of Council Member ,seconded by Council Member ,and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this day of , 2007. RESOLUTION NO. PAGE 2 TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY RESOLUTION NO. PAGE 3 EXHIBIT "A" PART-TIME EMPLOYEES SALARIES 2007-08 PERMANENT PART-TIME EMPLOYEES POLICE DEPARTMENT Designated Level I Reserve Officer Senior Police Reserve Officer Police Reserve Officer Police Reserve Officer Trainee Police Dispatcher/Clerk II Police Dispatcher/Clerk I Police Dispatcher/Clerk Trainee FIRE DEPARTMENT Administrative Officer Administrative Officer (Fire Grants) HOURLY RATE y LL.bU 20.13 17.96 15.09 19.28 16.97 14.68 12.14 27.58 HOURLY RATE PARKS AND RECREATION DEPARTMENT Recreation Senior Leader Recreation Assistant Senior Leader AM/PM Childcare Coordinator AM/PM Teacher AM/PM Assistant Teacher AM/PM Assistant I AM/PM Assistant II AM/PM Assistant III, High School Pre School Teacher 3 YEARS START 1 YEAR 2 YEARS (+) PAY SERVICE SERVICE SERVICE $ 9.92 $ 10.19 $ 10.69 $ 11.19 8.29 8.53 8.96 9.42 12.75 13.02 13.69 14.34 10.76 11.03 11.63 12.19 10.12 10.37 10.90 11.42 8.77 8.95 9.40 9.86 8.43 8.69 9.15 9.60 8.26 8.48 8.90 9.34 12.75 13.02 13.69 14.34 MISCELLANEOUS PART-TIME Printer Recreation Building Supervisor Recreation Building Coordinator Office Assistant Maintenance Worker -Parks, Public Works, Building Mechanic's Assistant Neighborhood Services Coordinator Associate Planner Sr. Office Assistant HOURLY RATE $ 17.62 10.58 8.22 13.54 HOURLY RATE 2 YEARS 3 YEARS START 1 YEAR (+) (+) PAY SERVICE SERVICE SERVICE $ 10.65 $ 11.99 $ 14.56 14.48 15.54 17.63 20.07 22.22 24.39 25.72 27.44 29.28 31.28 16.66 17.49 18.37 19.29 RESOLUTION NO. PAGE 4 EXHIBIT "A" PART-TIME EMPLOYEES SALARIES 2007-08 TEMPORARY PART-TIME EMPLOYEES POLICE DEPARTMENT Crossing Guard HOURLY RATE $ 8.76 HOURLY RATE Police Cadet START 1 YEAR 2 YEARS PAY SERVICE SERVICE $ 9.03 $ 10.20 $ 11.36 HOURLY RATE PARKS AND RECREATION DEPARTMENT (Substitute) Recreation Senior Leader (Substitute) Recreation Assistant Senior Leader (Substitute) AM/PM Childcare Coordinator (Substitute) AM/PM Teacher (Substitute) AM/PM Assistant Teacher (Substitute) AM/PM Assistant I (Substitute) AM/PM Assistant II (Substitute) AM/PM Assistant III, High School (Substitute) Pre-School Teacher 3 YEARS START 1 YEAR 2 YEARS (+) PAY SERVICE SERVICE SERVICE $ 9.92 $ 10.19 $ 10.69 $ 11.19 8.29 8.53 8.96 9.42 12.75 13.02 13.69 14.34 10.76 11.03 11.63 12.19 10.12 10.37 10.90 11.42 8.77 8.95 9.40 9.86 8.43 8.69 9.15 9.60 8.26 8.48 8.90 9.34 12.75 13.02 13.69 14.34 MISCELLANEOUS PART-TIME Administrative Secretary Office Assistant (Seasonal) Maintenance Worker -Parks, Public Works, Building Student Intern Administrative Intern HOURLY RATE $ 16.47 13.54 10.65 8.08 HOURLY RATE 2 YEARS START 1 YEAR (+) PAY SERVICE SERVICE $ 11.12 $ 11.66 $ 12.25 RESOLUTION NO. PAGE 5 EXHIBIT "B" PART-TIME EMPLOYEES SALARIES 2008-09 PERMANENT PART-TIME EMPLOYEES HOURLY POLICE DEPARTMENT RATE Designated Level I Reserve Officer $ 23.28 Senior Police Reserve Officer 20.73 Police Reserve Officer 18.50 Police Reserve Officer Trainee 15.54 Police Dispatcher/Clerk II 19.86 Police Dispatcher/Clerk I 17.48 Police Dispatcher/Clerk Trainee 15.12 FIRE DEPARTMENT Administrative Officer 12.50 Administrative Officer (Fire Grants) 28.41 HOURLY RATE 3 YEARS START 1 YEAR 2 YEARS (+) PARKS AND RECREATION DEPARTMENT PAY SERVICE SERVICE SERVICE Recreation Senior Leader $ 10.22 $ 10.50 $ 11.01 $ 11.53 Recreation Assistant Senior Leader 8.54 8.79 9.23 9.70 AM/PM Childcare Coordinator 13.13 13.41 14.10 14.77 AM/PM Teacher 11.08 11.36 11.98 12.56 AM/PM Assistant Teacher 10.42 10.68 11.23 11.76 AM/PM Assistant I 9.03 9.22 9.68 10.16 AM/PM Assistant II 8.68 8.95 9.42 9.89 AM/PM Assistant III, High School 8.51 8.73 9.17 9.62 Pre School Teacher 13.13 13.41 14.10 14.77 MISCELLANEOUS PART-TIME Printer Recreation Building Supervisor Recreation Building Coordinator Office Assistant Maintenance Worker- Parks, Public Works, Building Mechanic's Assistant Neighborhood Services Coordinator Associate Planner Sr. Office Assistant HOURLY RATE $ 18.15 10.90 8.47 13.95 HOURLY RATE 2 YEARS 3 YEARS START 1 YEAR (+) (+) PAY SERVICE SERVICE SERVICE $ 10.97 $ 12.35 $ 15.00 14.91 16.01 18.16 20.67 22.89 25.12 26.49 28.26 30.16 32.22 17.16 18.01 18.92 19.87 RESOLUTION NO. PAGE 8 EXHIBIT "B" PART-TIME EMPLOYEES SALARIES 2008-09 TEMPORARY PART-TIME EMPLOYEES POLICE DEPARTMENT Crossing Guard HOURLY RATE $ 9.02 HOURLY RATE Police Cadet START 1 YEAR 2 YEARS PAY SERVICE SERVICE $ 9.30 $ 10.51 $ 11.70 HOURLY RATE PARKS AND RECREATION DEPARTMENT (Substitute) Recreation Senior Leader (Substitute) Recreation Assistant Senior Leader (Substitute) AM/PM Childcare Coordinator (Substitute) AM/PM Teacher (Substitute) AM/PM Assistant Teacher (Substitute) AM/PM Assistant I (Substitute) AM/PM Assistant II (Substitute) AM/PM Assistant III, High School (Substitute) Pre-School Teacher MISCELLANEOUS PART-TIME Administrative Secretary Office Assistant (Seasonal) Maintenance Worker -Parks, Public Works, Building Student Intern Administrative Intern 3 YEARS START 1 YEAR 2 YEARS (+) PAY SERVICE SERVICE SERVICE $ 10.22 $ 10.50 $ 11.01 $ 11.53 8.54 8.79 9.23 9.70 13.13 13.41 14.10 14.77 11.08 11.36 11.98 12.56 10.42 10.68 11.23 11.76 9.03 9.22 9.68 10.16 8.68 8.95 9.42 9.89 8.51 8.73 9.17 9.62 13.13 13.41 14.10 14.77 HOURLY RATE y io.av 13.95 10.97 8.32 HOURLY RATE 2 YEARS START 1 YEAR (+) PAY SERVICE SERVICE $ 11:45 $ 12.01 $ 12.62 .1. MEMORANDUM TO: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER~~ SUBJECT: CONSIDERATION OF PROPOSED SUPPLEMENTAL ENVIRONMENTAL PROJECT IN RESPONSE TO THE CALIFORNIA REGIONAL WATER QUALITY CONTROL BOARD ADMINISTRATIVE CIVIL LIABILITY COMPLAINT DATE: AUGUST 28, 2007 RECOMMENDATION: It is recommended the City Council authorize the City Manager to formally submit the supplemental environmental project (SEP) proposals in response to the Civil Liability Complaint issued by the California Regional Water Quality Control Board. FUNDING: The total cost of the proposal is projected to be $75,000. It is recommended funding from the Local Sales Tax established for creek restoration work be allocated for the proposed projects. The amount exceeds the penalty amount, but is consistent with funding available. California Water Quality Control Board staff indicated that proposals exceeding the penalty have a higher likelihood of Board approval. It is proposed that the projects be credited towards all but $4,500 of the City's penalty. Therefore, an additional $4,500 would need to be appropriated from the General Fund for the fine. DISCUSSION: On June 27, 2007, the California Regional Water Quality Control Board issued a Civil Liability Complaint to the City of Arroyo Grande in response to a sewage spill that occurred in Arroyo Grande Creek on March 14 -15, 2007. The complaint included a fine of $65,000. The Water Board indicated that the City could expend up to $40,000 of the penalty on an SEP. Staff believes the penalty is excessive given the fact that there was no negligerice on the part of the City and staff did not violate any normal maintenance practices that are set forth in the City's Water Quality Control Board's permits. However, staff believes seeking approval to increase the amount of the penalty towards an SEP would be a more successful and CITY COUNCIL WATER QUALITY CONTROL BOARD ADMINISTRATIVE CIVIL LIABILITY COMPLAINT PROPOSAL AUGUST 28, 2007 PAGE 2 constructive strategy than trying to lower the fine given that creek protection has already been established as a high priority by the City Council. Therefore, staff proposes that in exchange for waiving the City's right to appeal, the Water Quality Control Board allow $60,500 of the complaint be expended on three important Supplemental Environmental Projects. One includes design and construction. The other two include design costs for projects to be constructed within the next two years. The project proposals have been developed in coordination with representatives from the Coastal Resource Conservation District (RCD), Salmon Enhancement, and Natural Resources Conversation Service (NRCS). Staff submitted a draft proposal and received positive feedback from the Regional Water Quality Control Board staff. Therefore, staff is now requesting authorization by the City Council to formally submit the proposal for the Board's consideration. The following are the proposed projects: City Hall Parking Lot Bioswale and Drainage Filtration Project Purpose: To improve water quality from City Hall and Branch Street drainage which discharges into Arroyo Grande Creek between Mason Street and Short Street. Project Description: Prior to or concurrent with the planned Branch Streetscape Enhancement project scheduled for 2008, the City of Arroyo Grande proposes to retrofit the City Hall parking lot along Olohan Alley to include a landscaped bioswale and drainage filtration. Located between Short Street and Mason Street, the existing public parking lot containing 50 spaces is paved and currently drains, unfiltered, discharging form an existing drop inlet near the southwest corner of the pavement directly into Arroyo Grande Creek. The proposed bioswale and drainage filtration project would create a triangular, landscaped shallow detention basin/swale adjoining the existing concrete walkway along the creekbank between Mason Street and Short Street picnic areas. This would involve removal of approximately 2450 sf. of pavement, installation of about 175 linear feet of new 4" curb to define the south edge of the reconfigured parking lot, and include new landscaping in the detention basin/bioswale. Although reduced in size, the parking lot would still provide the same number of spaces. The existing drop inlet would be retrofitted with a filtration element or replaced with an in-line filter to improve the water quality discharged from the detention basin/bioswale, including filtration of hydrocarbons. The bioswale would also reduce heavy metals, intercept debris and detain low flow parking lot drainage rather than discharge it directly to the adjoining creek. CITY COUNCIL WATER QUALITY CONTROL BOARD ADMINISTRATIVE CIVIL LIABILITY COMPLAINT PROPOSAL AUGUST 28, 2007 PAGE 3 The future Short Street storm drain system from E. Branch Street would also discharge to this new bioswale and drainage filtration to reduce or prevent existing Highway 227 and Village are runoff from reaching Arroyo Grande Creek without detention or filtration. Finally, filters would be installed at two other inlets to Arroyo Grande Creek from other areas of Olohan Alley. Projected Total Cost: $56,000 Design of Tally Ho/Corbett Canyon Creek Headcuf Project Purpose: Stabilize a deep headcut on Tally Ho/Corbett Canyon Creek within the City of Arroyo Grande for channel restoration/Flood prevention between the eastern City limit and Arroyo Grande Creek. Description: The design phase will include one field visit by Swanson Hydrology with stakeholders to discuss options. Options include spreading the headcut over a larger distance to make it easier to stabilize which would require potential easement discussions with landowners. Additionally, a topographic survey will be conducted for data necessary for hydrology and hydraulic calculations, and preparation of preliminary design and construction cost estimates. A detailed scope of work will be developed. Projected Cost for Design Phase: $13,000 Design of Tally Ho/Corbett Canyon Creek Confluence Restoration/Sedimentation Reduction Project Purpose: Restoration/Sedimentation reduction to detain peak flows and fine sediment at the confluence of Tally Ho/Corbett Canyon and Carpenter Canyon Creeks on a portion of a 15 acre site (Clark property) within the City of Arroyo Grande. The project objective will alleviate flooding on Tally Ho/Corbett Canyon Creek and reduce stress on lower Arroyo Grande Creek as well as restoring riparian and floodplain habitat on and within the vicinity of the project area. Description: The design phase will include one detailed site visit by Swanson Hydrology with the landowner in order to discuss the best approach in accordance with future plans for the property (a conservation easement is preliminarily favored by the landowner). A partial topographic survey and preparation of a memorandum outlining the opportunities, constraints and site concepts will be prepared and a detailed scope of work/recommendation will be provided for permitting, design cost and potential land acquisition costs. Projected Design Phase Cost: $6,000 CITY COUNCIL WATER QUALITY CONTROL BOARD ADMINISTRATIVE CIVIL LIABILITY COMPLAINT PROPOSAL AUGUST 28, 2007 PAGE 4 Staff believes these projects will take a significant step in improving management of the watershed and water quality. They are exciting projects because they go beyond past efforts to prevent problems and actually begin to improve and correct existing quality and deficiencies. In addition to responding to the Water Quality Control Board penalties, the Public Works Department is taking steps to better prevent the possibility of spills in the future similar to the one that recently occurred. Maintenance of the lines in areas adjacent to the creeks has been increased. The Public Works Department is also documenting specific procedures regarding response to complaints from residents regarding potential sewer line backups. ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Authorize the City Manager to formally submit the supplemental environmental project (SEP) proposals in response to the Civil Liability Complaint issued by the California Regional Water Quality Control Board. - Modify the SEP proposals and authorize the City Manager to submit them to the Water Quality Control Board; - Direct staff to formally appeal the Civil Liability Complaint; - Provide staff direction. Attachments: 1. California Regional Water Quality Control Board Administrative Civil Liability Complaint ~- - ATTACHMENT1 v California Regional Water Quality Control Board Central Coast Region Linda Adams www.waterboards.ca.gov/cenbalcoast Arnold Secretary for 895 Aerovisla Place, Suitc 101, San Luis Obispo, California 93401 Schwaranegger Enniraunenla! Pbone (BOS) 549.3147 • FAX (605)543.0397 Governor Protection June 27, 2007 CERTIFIED MAIL 7006 0100 0000 1777 6075 RETURN RECEIPT REQUESTED Mr. Don Spagnola, Public Works Director City of Arroyo Grande 208 East Branch Street Arroyo Grande, CA 93421 Dear Mr. Spagnola: ADMINISTRATIVE CIVIL LIABILITY COMPLAINT, CITY OF ARROYO GRANDE, SAN LUIS OBISPO COUNTY Attached is Administrative Civil Liability Complaint No. R3-2007-0065 in the matter of City of Arroyo Grande, San Luis Obispo County. This Complaint concerns your large sewage spill to Arroyo Grande Creek on March 14 and 15, 2007. j Unless you waive your right to a public hearing and pay the amount proposed in the Complaint ($65,000), we plan to present an order to the Regional Water Quality Control Board, Central Coast Region (Water Board) for the amount proposed, at the Water Board meeting on September 7, 2007, at the Water Board Conference Roam, 895 Aerovista Place, Suite 101, San Luis Obispo, California. We have not yet scheduled a specific time for this item. The Water Board may allow you to expend up to $40,000 of the penalty on a supplemental environmental project (SEP} in accordance with the State Water Resources Control Board's Water Qualify Enforcement Policy. You may submit a proposal for one or more SEPs. If you do choose to submit a proposal, please submit it for our consideration no later than Jufy 27, 2007. The Water Quality Enforcement Policy specifies 'the criteria a SEP must meet to qualify for funding at httn://www.waterboards.ca.aov/olnsgols/index.html. You may find a number of SEPs listed, as well as other useful information, on our website at: ham://www.waterboards.ca.qov/centralcoast/seplindex.htm. California Environmental Protection Agency Recycled Pnper City of Arroyo Grande June 27, 2007 Please review the Complaint carefully and submit your comments and/or your Waiver of Hearing form and copy of payment, or an SEP proposal by July 27, 2007. If you have questions, please contact Mari Thompson at (805) 549-3159, or Harvey Packard at (805) 542-4639. Sincerely, ~`~"f Michael Thomas Assistant Executive Officer Attachment: Administrative Civil Liability Complaint No. R3-2007-0065 cc: Mr. Rich Lichtenfels San Luis Obispo County Environmental Health P. O. Box 1489 San Luis Obispo, CA 93406 Mr. Tom Zehnder South SLO Co. Sanitation District P. O. Box 339 Oceano, CA 93445 Ms. Lori Okun State Water Resources Control Board P. O. Box 100 Sacramento, CA 95812-0100 S:WPDESWPDES FacllitieslSan Luis Olzspo Co1Sou8t SLO Co~ollectlon systemsVvroyo Grande ACL 20W- 00851ComplainflTransmittal Letter, ACLC 07-BS.DOC CALIFORNIA REGIONAL WATER QUALITY CONTROL BOARD CENTRAL COAST REGION ADMINISTRATIVE CIVIL LIABILITY COMPLAINT NO. R3-2007-0065 IN THE MATTER OF: CITY OF ARROYO GRANDE SAN LUIS OBISPO COUNTY THE CITY OF ARROYO GRANDE IS HEREBY GIVEN NOTICE THAT: The City of Arroyo Grande (hereafter "City° or "Discharger') is alleged to have violated provisions of Califomia State law and an Order of the Regional Water Quality Control Board, Central Coast Region (hereafter "Central Coast Water Board"), for which the Central Coast Water Board may impose civil liability pursuant to California Water Code Section 13385. Unless the Discharger waives its right to a hearing and pays the recommended civil liability, a public hearing on this matter will be held before the Central Coast Water Board on September 7, 2007, at the Central Coast Water Board Conference Room, 895 Aerovista Place, Suite 101, San Luis Obispo, Califomia. The Discharger and its authorized representative(s) will have an opportunity to be heard and to contest the allegations in this Complaint and the imposition of civil liability by the Central Coast Water Board. An agenda will be mailed to the Discharger separately, not less than ten days before the public hearing date. At the public hearing, the Central Coast Water Board will consider whether to affirm, reject, or modify the proposed administrative civil liability, or whether to refer the matter to the State Attorney General for recovery of judicial civil liability. ALLEGATIONS The Discharger owns and operates wastewater collection facilities that are subject to Waste Discharge Requirements Order No. R3-20040062 for Loca! Wastewater Collection Agencies Tributary to South San Luis Obispo County Sanitation Dtsfrict Wastewater Treatment Facility, San Luis Obispo County (hereinafter "Order No. R3-2004-0062"), adopted by the Central Coast Water Board on September 10, 2004. The Dischargers, collection system conveys the City's wastewater to South San Luis Obispo County Sanitation District's facilities for treatment and disposal. 2. Order No. R3-2004-0062 includes the following prohibition: "A. Prohibition 1. The discharge of untreated wastewater outside of the described wastewater collection systems and the Treatment Facility is prohibited." 3. On March 14 and 15, 2007, a clogged 12-inch diameter sewer line caused approximately 50,000 gallons of raw sewage to overflow into Arroyo Grande Creek. The Discharger thereby violated Order No. R3-2004-0062, Prohibition A.1. The Discharger is therefore liable civilly pursuant to California Water Code Section 13385. ACL Complaint No. R3.2007A065 June 27, 2007 4. Maximum Clvtl Liability. Water Code Section 13385(c) authorizes the Central Coast Water Board to administratively impose civil liability in an amount not to exceed the sum of $10,000 per day for each day a violation occurs and $10 per gallon for each gallon in excess of 1,000 that is not susceptible to cleanup or is not cleaned up. The maximum civil liability that may be imposed by the Centro! Coast Water Board in this case is $510,000 ([$10,000 per day x 2 days] +[(50,000 gal. -1,000 gal.) x $10 per gallon]). 5. Minimum Civil Liability. Water Code Section 13385(e) provides that, at a minimum, civil liability shall be assessed at a level. that recovers the economic benefit or savings, if any, derived from the acts that constitute the violations. As discussed below, the Discharger did not derive any economic benefit or savings from this violation. 6. Factors to Consider in Assessment of Civil Liability. Pursuant to Water Code Section 13385(e), in determining the amount of liability, the Water Board shall: ...take into account the nature, circumstances, extent, and gravity of the violation or violations, whether the discharge is susceptible to cleanup or abatement, the degree of toxicity of the discharge, and, with respect fo the violator, the ability to pay, the effect on its ability to continue its business, any voluntary cleanup efforts undertaken, any prior history of violations, the degree of culpability, economic benefrt or savings, if any, resulting horn the violation, and other matters that justice may require. Af a minimum, liability shall be assessed at a level that recovers the economic benefits, if any, derived from the acts that constitute the violafiori. These factors are considered as follows: a. The Nature, Circumstances, Extent, and Gravity of the Violations This sewage spill occurred behind an antique shop at 410 East Branch Street, at the east end of the Village of Arroyo Grande, in San Luis Obispo County. The spill occurred where a 12-inch diameter sewer line serving 10 to 15% of the City discharges into South San Luis Obispo County Sanitation District's 18-inch trunk sewer line. This junction is on the north bank of Arroyo Grande Creek, just upstream of where the 18-inch trunk line crosses Arroyo Grande Creek in a pipe bridge. There is not a manhole to facilitate cleaning where the 12-inch line joins the 18-inch line. Instead, there is a 6 in. cleanout that angles back Into the 12-inch line. This leaves a 6 to 10-foot section at the end of the 12-inch line that cannot be easily accessed for cleaning. Grease, soap., and sludge accumulated in this section of line, which eventually blocked flow and caused sewage to surcharge the 12-lnch line and exit from the 6-inch cleanout. The sewage flowed down the bank and into Arroyo Grande Creek. Sewage flowed into Arroyo Grande Creek for at least 29 hours (from 8:OOa March 14 to 1:30p March 15, 2007). The spill continued undetected by City staff for approximately 22 hours due to a miscommunication between the party who found and reported the spill, and the City staff who received the report. City Public Works Supervisor Shane Taylor estimated and reported the total volume of the spill as 50,000 gallons. ACL Complaint No. R3-2007-0065 3 June 27, 2007 On March 16, 2007, approximatety 21 hours after the City stopped the spill, City staff grabbed samples of Arroyo Grande Creek upstream of where the spill entered the creek, immediately where the spill entered the creek, and downstream of where the spill entered the creek. The analytical results are as follows: Location Fecal Cofiform MPPU100mL Total Coliform MPW100mL U stream 50 1,600 S ill Site 170 3,000 Downstream 2,400 9,000 The downstream fecal coliforcn concentration is more than one order of magnitude greater than the upstream fecal colfform concentration. The Central Coast Ambient Monitoring Program (CCAMP) monitored several locations along Arcoyo Grande Creek from January 2002 through March 2003, to establish the ambient water quality of Arroyo Grande Creek. Of 15 samples that CCAMP took from the creek of Strother Park, which is the Gosest monitoring station upstream of the spill site, the maximum fecal colfform concentration was 1,600 MPN/t00mL. Of 15 samples that CCAMP took from the creek at where it crosses Fair Oaks Boulevard, which is the closest monitoring station downstream of the spill site, the maximum fecal concentration was 1,300 MPN/100mL (these data are available at: htto:/lccamo.org). The sample taken on March 16, 2007, downstream of the spill site was 2,400 MPNI100mL, which is greater than both of these historic maximums. This downstream sample was taken approximately 21 hours after the spill had ended. The creek was flowing well at this time of year and likely flushed most of the sewage downstream before the sample was taken. It is quite likely that had the sample been taken during the spill or shortly thereafter, the fecal coliform concentration would have been greater than 2,400 MPN/100mL. The Central Coast Basin Plan's water contact recreation standard for feel coliform states, "Fecal coliforcn concentration, based on a minimum of not less than five samples for any 30-day period, shall not exceed a log mean of 2001100 mL, nor shat) more than ten percent of total samples during any 30-day period exceed 400/100 mL." Five or more samples in the 30-day period around the date of the subject spill are not available, so a definitive determination of compliance with this standard is not possible. However, the one sample taken downstream of the spill site exceeded both of these thresholds. For the sake of comparison, 4 of the 15 samples (or 27%) that CCAMP took at Strother Park exceeded the 400 MPN/100mL threshold. Eight of the 15 samples (or 54%) that CCAMP took at Fair Oaks Boulevard exceeded the 400 MPN/100 mL threshold. Based on this ambient data, staff concludes that this spill degraded the water quality of Arcoyo Grande Creek. After the City reported the spill, County of San Luis Obispo Environmental Health Services (County Health) posted signs at several locations along the creek and at Oceano Dunes State Vehicular Recreation Area, where the creek enters the Pacific Ocean. The signs at the beach prohibited water contact activities a half mile north and south of the creek outlet County Health took beach water quality samples on March 15, 2007, at approximately 12:00 p.m. This is approximately the time when the spill would have affected beach water quality (the ocean is approximately 4.6 miles downstream of where the spill occurred and staff estimates it took 4 to 8 hours for the spill to reach the ocean). Samples were taken ACL Complaint No. R3-2007-0065 4 June 27, 2007 100 feet north of the creek, at the creek, and 100 feet south of the creek. The analytical results are as follows: Location Total Colifortn MPN/100mL E. Coli MPN/100mL Enterococcus MPNHOOmL 100 feet north of creek 31 <10 <10 At creek 121 20 10 100 feet south of creek <10 <10 <10 State Standard for water contact recreation 10,000 400 104 Based on these results, the spill did not cause any exceedances of ocean water quality standards for water contact recreation. b. Degree of Culpability The City owns and is responsible for maintaining the sewer line from which the spill occurred. The City Is responsible for responding to public reports of water discharges and sewage spills in their service area. The City's response to the initial spill report is a key factor when considering its culpability, so the City's response is discussed in detail here. The spill was initially found at approximately B:OOa on March 14, 2007, by the residents of 505 Nelson Street, which is immediately across the creek from where the spill occurred. Water Board staff interviewed these residents on May 1 and 2, 2007. Because they could not smell sewage and the origin of the spill was obscured by heavy vegetation, the residents originally assumed the water flow was coming from a nearby construction site. When the discharge continued into the afternoon, one of the residents called the City at approximately 3:OOp, gave her name and address, and explained that she lived °up against the creek." She reported that water was running down the creek bank, "across the big sewer pipe from [her] house." The City staff person that took the call said the he was not aware of any work being done in that area, but would check it out. Water Board staff interviewed that City staff person on May 2, 2007. He said that he understood the report to mean that water was entering the storm drain system on Nelson Street. He took the reporting party's name and address, but she declined to give him her phone number, saying that a call back would not be necessary. The City staff person then called the City's Streets Supervisor to respond to the report (the City Streets department is responsible for the City's storm drain system). The Streets Supervisor did not find a water discharge on Nelson Street. He then left work for the day. Meanwhile, the sewage spill continued. It wasn't until approximately 10:OOa on March 15, 2007, when the residents of 505 Nelson Street again reported the discharge as being from the area around the sewer pipe bridge over the creek, that the City's Utilities Supervisor found the sewage spill and stopped it (the Utilities Department is responsible for the City's sewer systems). Staff believes the spill would not have continued for so long if the initial report had been directed to a City's Utilities Supervisor, rather than the Streets Supervisor, as called for in the City's Wastewater Collection System Management Plan. There was a 600 gallon ACL Complaint No. R3-2007-0065 June 27, 2007 sewage spill from this same location in 2001 (see Prior History of Violations below). There are large sewer Tines that run parallel to and across Arroyo Grande Creek in the vicinity of Nelson Street. The Utilities Supervisor would have known this and likely would have properly understood the meaning of the initial report. When the Streets Supervisor did not find any discharges to the storm drain system on Nelson Street, he could have gone to 505 Nelson Street fo get more information from the reporting party. Alternatively, he could have called out the Utilities Supervisor to investigate the water and sewer systems in the vicinity of Nelson Street. Due to the City's poor response to the initial spill report, staff concludes the City's degree of culpability is high. c. Voluntary Cleanup Efforts Undertaken by the Violator Neady all of the 50,000 gallons of sewage entered Arroyo Grande Creek and flowed away before the spill was found, hence it was not deaned up. The City's March 19, 2007 spill report states "the spill area was vacuumed, washed and spray disinfected with a bleach solution. The creek was inspected for debris. No debris was found in the creek." d. Susceptibility to Cleanup or Abatement The sewage that reached Arroyo Grande Creek was not susceptible to cleanup. In order to have been deaned up, the spill would have to been detected early and the creek flow would have to have been blocked and pumped out for treatment, or treated in place, which may not have been practicable. The spill was not detected until Heady all of the 50,000 gallons had already entered the creek and flowed downstream. e. Degree of Toxicity of the Discharge Staff presumes this sewage spill was not toxic. The sewage originated from the eastern part of the City of Arroyo Grande, whidh is primarily residential, with little or no industrial facilities that might discharge toxic chemicals to the sewer. The sewage was diluted by -creek flow. No dead fish or other indications of toxicity were observed downstream of the spill. f. Prior History of Violations The City's prior compliance record is apparently good. The City has an aggressive cleaning program. It cleans all its mains (275,000 feet) annually, problematic sections of mains (6,500 feet) quarterly, and all pump stations quarterly. In addition to the subject spill, the City reported only one spill from 2002 to present. It was a 200-gallon spill caused by a root blockage, on December 8, 2005. The spill did not reach surtace waters. However, the City did report two large sewage spills in 2001, one of which is related to the subject spill. On September 9, 2001, a blockage at the same exact location as the subject spill caused 600 gallons of sewage to spill into Arroyo Grande Creek. The other spill was approximately 2,500 gallons from a cracked force main and into a storm drain system, on December 21 and 23, 2001. The 600 gallon spill on September 9, 2001, is notable because it was caused by the same problem that caused the subject spill. In its September 2001 spill report, the City ACL Complaint No. R3-2007-0065 June 27, 2007 states it has "continued preventative maintenance cleaning of the main per our Sewer Main Cleaning Program" to prevent further sewage spills at this location. When staff interviewed City Utilities Supervisor Shane Taylor on May 1, 2007, Mr. Taylor indicated that he had decided to increase cleaning of this problematic section to quarterly, from the normal frequency of annually, in response to the latest spill at this location. As discussed above, there is not a manhole to facilitate cleaning where the 12-inch line joins the 18-inch line. Instead, there is a irinch cleanout that angles bads into the 12 in. line. This leaves a 6 to 10 feet section at the end of the 12-inch line that cannot be easily accessed for cleaning. When asked how he would clean that section of line, Mr. Taylor said that he would jet that section from-the upstream manhole, rather than pulling a bads jet from a downstream manhole (which is how he would normally clean such a section of line). In staffs engineering judgment, there is a flaw at the junction of the 12- inch and 18-inch lines which inhibits proper cleaning, and causes grease and sludge to accumulate in the 12-inch line. The most appropriate long term solution is to install a manhole or junction box at that junction to improve access and facilitate cleaning. Frequent cleaning is not a sustainable solution. This and another nearby problem lead staff to believe that the City may be compensating for a weak capital improvement program with its aggressive cleaning program. According to Mr. Taylor, in East Branch Street, one block from this spill location, there is a stretch of old 18-inch sewer main that is too Flat, so (t accumulates sludge and must be cleaned out quarterly to continue flowing without surcharging. The most appropriate long-term solution is to replace that line with a new line set at the proper slope, so that it achieves proper cleaning flow velocity. Frequent cleaning is not a sustainable solution. Water Board staff reviewed the City's latest Wastewater Collection System Management Plan. The City has no plans to replace this line. g. Economic Benefit or Savings Resulting from the Violation The subject spill may not have occurred if the junction of the 12 in, line and 18 in. line had a manhole or junction box to facilitate proper access and cleaning of the 12 in, line. The City could have realized an economic benefit by not installing a manhole orjunction box, but staff has no reason to believe the City knew this was a problematic junction until now. Staff therefore concludes that the City did not derive any economic benefit or savings as a result of this violation. However, staff has now pointed out what it believes to be necessary improvements to that junction. if the City does not improve that junction and another spill occurs there, staff plans to pursue full recovery of economic benefit through a future administrative civil liability. h. Discharger's Ability to Pay Civil Liability and Ability to Stay in Business The Discharger has not provided any information that would Indicate an inability to pay the proposed civil liability. ACL Complaint No. R3-2007.0065 7 June 27, 2007 i. Other Matters that Justice May Require Responding to these violations and preparing this Administrative Civil Liability Complaint required approximately 60 hours of staff time. Estimated staff costs are $4,500 (60 hours staff time x $75/hour). PROPOSED CIVIL LIABILITY Upon consideration of all factors required by California Water Code Section 13385, the Assistant Executive Officer recommends the Discharger be assessed civil liability in the amount ofsixty-five thousand dollars (565,000). 2. The Central Coast Water Board will hold a public hearing on this matter on September 7, 2007, unless the Discharger agrees to waive its right to a public hearing by filling out, signing, and submitting the enclosed "Waiver of Hearing.° If the Discharger chooses not to waive its right to a public hearing, the Central Coast Water Board may proceed with the scheduled public hearing and consider testimony received from interested persons during the public hearing and decide whether to affirm, reject, or modify the amount of administrative civil liability proposed by the Executive Officer. The Central Coast Water Board may also decide to continue the matter to a future hearing or refer the matter to the State Ariomey General. The public hearing is scheduled at the regularly scheduled Central Coast Water Board meeting on September 7, 2007, at the Central Coast Water Board Conference Room, 895 Aerovista Place, Suite 101, San Luis Obispo, California. The meeting is scheduled to begin at 8:30 a.m.; however, no specific time has been set for consideration of this item. If you have questions regarding this matter, please direct them to Central Coast Water Board staff, Matt Thompson, at (805) 549-3159, or Harvey Packard at (805) 542-4639. Micha I J. Thomas Assistant Executive Officer 6 ~ 7~ 07 Date S:WPDES\NPDES Fadli0eslSan Luis Obispo Co\SOUIh SLO Colcollectlon syslemsV+noyo Grantle ACL 2007-0065\ComplainMCL Complaint No. R3-2007-0065.doc PROCEDURAL INFORMATION FOR ADMINISTRATIVE CIVIL LIABILITY COMPLAINT PUBLIC HEARING AND PAYMENT WAIVER OF PUBLIC HEARING You may waive your right to a public hearing. If you wish to waive your right to a public hearing, a duly authorized person' must check the first box, sign, and submit the following Waiver of the Right to a Public Hearing form and pay the penalty amount specified in the Complaint no later than July 27, 2007, 5:00 P.M. Please follow the payment instructions below. If you choose to waive your right to a public hearing, and if full payment and a signed Waiver of the Rlghf fo a Public Hearing form are received before the hearing, the hearing will not be held, and the violation will Ge settled. If fuA payment and a signed Waiver of the Right to a Public Hearing form are not received, the matter will be placed on the Central Coast Water Board's agenda for a hearing as stated below. If you do not waive your right to a public hearing, the Assistant 6tecutive Officer will present an Order to the Central Coast Water Board for the amount proposed in this Complaint at the Central Coast Water Board meeting on September 7, 2007, at the Central Coast Water Board Conference Room, 895 Aerovista Place, Suite 101, San Luis Obispo, California. The Central Coast Water Board will proceed with the scheduled hearing, consider testimony received from interested persons during the hearing, and decide whether to accept the amount of the avil liability proposed by the Assistant Executive Officer, or to increase or decrease the amount. If the Water Board adopts an Order, payment of the civil liability to the State Water Resources Control Board vn71 be due and payable no later than October 8, 2007, in accordance with the Order. The Central Coast Water Board may also decide to continue the matter to a future hearing or refer it to the State Attorney General. The meeting is scheduled to begin at 8:30 A.M.; however, no speck time has been set for consideration of the Order. PAYMENT OF ADMINISTRATIVE CIVIL LIABILITY No later than July 27, 2007, please make your check payable to State Water Resources Contra! Board, and note "MMP Complaint No. R3-2007-0065" on the check. Please mail the check and signed waiver form to SWRCS Accounfing, Attn: Enforcement, P.O. Box 100, Sacramento, CA 95812-0100. Please also mail conies of the check and signed waiver form to Regional Water Quality Control Board, Attn: Matt Thompson, 895 Aerovlsta Place, Suite 101, San Luis Obispo, CA 93401. ' A duly authorized person is defined as a principal executive officer of at least the level of vice president in a corporation, a general partner or the proprietor in a partnership ar sole proprietorship, a principal executive officer or ranking elected official in a public agency, or a duly authorized representative. REQUEST FOR HEARING DATE EXTENSION FOR SUPPLEMENTAL ENVIRONMENTAL PROJECT If you would like to propose a Supplemental Environmental Project, please contact Water Board staff as soon as possible. If staff determines your proposed Supplemental Environmental Project meets applicable requirements, you can elect to settle this matter without a hearing, using a form settlement agreement that Water Board staff will provide. In some cases, finalizing a settlement that includes a Supplemental Environmental Project takes several weeks or months. Unless waived, California Water Code Section 13323(b) requires the Water Board to hold a hearing on Complaint No. R3-2007-0065 within 90 days after the date of service of the complaint. Before any hearing date extension is granted, you must waive the 90-day requirement. In order to request an extension, a duly authorized person must check the second box, sign, and submit the following Waiver of the Righf fo a Public Hearing forth no later than July 2T, 2007, 5:00 P.M. A waiver and request for extension do not guarantee that the Water Board will grant the extension request or that you will be able to reach a settlement agreement. In many cases, a settlement agreement including a Supplemental Environmental Project can easily be completed within 90 days and no extension is necessary. The Water Board will set a new hearing date if a settlement agreement is not finalized in a timeframe acceptable to Water Board staff. The due date for written comments is not automatically extended when the hearing date is changed. WAIVER OF THE RIGHT TO A HEARING AND/OR WAIVER OF TIME FOR HEARING By signing below, I acknowledge that I have read and understand the PROCEDURAL INFORMATION FOR ADMINISTRATIVE CIVIL LIABILITY COMPLAINT, PUBLIC HEARING AND PAYMENT that was attached to this waiver form. Check one of the following boxes: [ ] By checking this box, I agree to waive City of Arroyo Grande's right to a hearing before the Central Coast Water Board with regard to the violations alleged in Complaint No. 83-2007- 0065. Also, I agree to remft payment for the civil liability proposed. I understand that I am giving up the City of Arroyo Grande's right to argue against the allegations made by the Assistant Executive Officer in this Complaint, and against the imposition or amount of proposed civil liability. [Check this box if the City of Arroyo Grande will pay the full amount of proposed liability without a hearing, and initial here: _~ [ ] By checking this box, I agree to waive the 90-day requirement of California Water Code Section 13323(b]. I understand this means the Water Board may hold a hearing more than 90 days after the date of service as long as I receive at least ten calendar days' notice of the new hearing date. I understand that the City of Arroyo Grande's waiver of the 90-day requirement does not extend the original due date for written comments, unless the Water Board also extends that due date. I understand that the Water Board may deny the request for extension. [Check this box if the City of Arroyo Grande requests an extension of the hearing date for any reason, including an extension to discuss settlement and/or Supplemental Environmental Projects with Water Board staff. After checking the box, initial here: ~. Signature Printed Name Title/Position Date ' A duly authorized person must sign the waiver. A duly authorized person Is. defined as a principal executive officer of at least the level of vice president in a corporation, a general partner or the proprietor in a partnership, a principal executive officer or ranking elected official In a public agency, or a representative authorized in writing by a vice president or higher ranking corporate officer, general partner, principal executive officer or ranking elected official. 8.j. MEMORANDUM TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: CONSIDERATION TO APPROVE AN INTERAGENCY AGREEMENT BETWEEN CITY. OF GROVER BEACH, OCEANO COMMUNITY SERVICES DISTRICT, AND THE CITY FOR THE SOUTH SAN LUIS OBISPO COUNTY DESALINATION FUNDING STUDY DATE: AUGUST 28, 2007 RECOMMENDATION: It is recommended that the Council: A. approve an interagency agreement in regard to the South San Luis Obispo County Desalination Funding Study; and B. authorize the Mayor to execute the Agreement. FUNDING: Funding for the Desalination Study will be shared equally with the other two participating agencies. The estimated cost to perform the study is $90,000.00. The State Department of Water Resources has awarded a Proposition 50 Grant for $45,000.00. The City's share of $15,000.00 will be funded from the Water Fund. DISCUSSION: The City of Arroyo Grande, City of Grover Beach, and the Oceano Community Services District, based on various studies, have identified the need for a supplemental water source to enhance the reliability of their existing water supply. Findings from these studies have shown that a new water source will be required to meet the agencies projected water demands. Results of these studies have also shown that the most cost-effective and viable alternative for additional potable water in the South San Luis Obispo County area appears to be seawater desalination. In order to further evaluate the viability and advance towards design of a desalination facility, the agencies have committed to performing a Seawater Desalination Funding Study ("Funding Study"). The main objectives of the Funding Study include preliminary design of the desalination facility, which would then be used to develop a cost estimate for the project. In addition, the Funding Study would outline regulatory and environmental issues associated with seawater desalination, while also identifying other possible funding sources, such as construction grant funding or low interest loan programs. CITY COUNCIL CONSIDERATION TO APPROVE AN INTERAGENCY AGREEMENT IN REGARD TO THE SOUTH SAN LUIS OBISPO COUNTY DESALINATION FUNDING STUDY AUGUST 28, 2007 PAGE 2 The City of Arroyo Grande has agreed to take the lead on the project and the City of Grover Beach and the Oceano Community Services District would serve as equal participants throughout the project. If the project is ultimately approved, operation would likely be recommended by a modified or similar cooperative arrangement. Being that the desalination facility could be located at the South San Luis Obispo County Sanitation District ("SSLOCSD") wastewater treatment plant, personnel from the SSLOCSD would be available to operate the new water treatment plant. The Funding Study is the next crucial step in the development of a new water source from a seawater desalination facility. While seawater desalination has presented itself as the most viable option as a supplemental water source for the agencies, it was realized that a more in-depth analysis on the preliminary design, overall cost, environmental impacts, and probable timeframe will be required to determine the actual viability of the project. The technical aspect of the Funding Study will cover many issues, including the preliminary design of the recommended seawater intake system, design of a combined wastewater treatment ocean ouffall and brine disposal system, preliminary design of a reverse osmosis filter system, design of an energy recovery system and preliminary outline of the product water distribution system. Along with the technical aspects, the Funding Study will match dollar amounts to the various pieces of a seawater desalination facility to produce a life cycle cost estimate of the entire potable water supply project. The Interagency Agreement sets forth the terms and conditions for each agency. The City of Arroyo Grande will act as the lead agency in regard to processing of the grant funds through the State Department of Water Resources. Each agency will pay one third of the cost to prepare the study excluding any funds received from the State. ALTERNATIVES: The following alternatives are provided for the Council's consideration: • Approve staff recommendation to enter into an Interagency Agreement; • Do not approve staff recommendation to enter into an Interagency Agreement; • Modify the Agreement and approve staff recommendation; or • Provide direction to staff. Attachment: Interagency Agreement in regard to the South San Luis Obispo County Desalination Study U.\2007\City CcuncilW my\Drafl Council Memo - SSLOC Desalination Plant00626007.doc INTERAGENCY AGREEMENT IN REGARD TO THE SOUTH SAN LUIS OBISPO COUNTY DESALINATION FUNDING STUDY This Agreement ("Agreement") reached this day of 2007, between the CITY OF ARROYO GRANDE, the CITY OF GROVER BEACH, and the OCEANO COMMUNITY SERVICES DISTRICT, herein referred to as the "agencies". WHEREAS, the agencies desire to enter into this Agreement to pursue a desalination funding study (the "study"); and, WHEREAS, the agencies agree to fund the cost to prepare the study; and, WHEREAS, each agency will participate in the selection of a consultant to perform the study; and WHEREAS, the City of Arroyo Grande applied for a grant from the State Department of Water Resources on behalf of the participating agencies to pay for a portion of the study; and WHEREAS, the State Department of Water Resources ("DWR") has recently granted Proposition 50 funds to pay for one-half (1/2) of the estimated cost of the study, in the amount of $45,000.00; and WHEREAS, amongst the provisions of the grant, it is required that one agency be approved to act as the "lead agency"; and WHEREAS, the City of Arroyo Grande has agreed to act as the "lead agency'; and, WHEREAS, the agencies agree to share equally in the costs to prepare the study; NOW, THEREFORE, IT IS AGREED BY AND BETWEEN the City of Arroyo Grande, the City of Grover Beach and the Oceano Community Services District: 1. The City of Arroyo Grande will act as the lead agency in regard to the processing of the grant funds for the study through the State Department of Water Resources. 2. Each agency will pay one third (1/3) of the cost to prepare the study, excluding any grant funds for the study received from the State Department of Water Resources. 3. Each agency will participate in the selection of a consultant to perform the study. INTERAGENCY AGREEMENT IN REGARD TO THE SOUTH SAN LUIS OBISPO COUNTY DESALINATION FUNDING STUDY PAGE 2 4. The parties shall not be held liable for any costs incurred as a result of negligence on the part of the lead agency meeting State Grant requirements. 5. Each agency guarantees and warrants as accurate the information provided to the City of Arroyo Grande for compliance with the State Department of Water Resources grant funding and related requirements. 6. The City of Arroyo Grande will prepare documents necessary for the State Department of Water Resources approval for said grant funding. 7. This Agreement shall commence on the date set forth above and shall continue in effect until terminated by any or all of the agencies. 8. Any and all notices or other communications required or permitted by this Agreement or by law to be delivered to, served on, or given to any party to this Agreement by any other party of this Agreement shall be in writing and shall be deemed properly delivered, served, or given when personally delivered to the party to whom it is directed, or in lieu of such personal service, when deposited in the United States mail, first class, postage pre- paid, addressed to: To Arroyo Grande: CITY OF ARROYO GRANDE City Manager 214 East Branch Street Arroyo Grande, CA 93420 To Grover Beach: CITY OF GROVER BEACH City Manager 154 South 8~' Street Grover Beach, CA 93433 To Oceano Community Services District: OCSD General Manager Post Office Box 599 Oceano, CA 93445-0599 Any party to this Agreement may change his address for the purposes of this Section by giving written notice of such change in accordance herewith. 9. This Agreement may be amended or modified only by an instrument in writing, stating the amendment or modification, executed by the agencies. IN WITNESS WHEREOF, the Parties hereto have caused their duly authorized representatives to execute this Agreement effective as of the date first written above. INTERAGENCY AGREEMENT IN REGARD TO THE SOUTH SAN LUIS OBISPO COUNTY DESALINATION FUNDING STUDY PAGE 3 CITY OF ARROYO GRANDE: Tony Ferrara, Mayor CITY OF GROVER BEACH: Stephen C. Lieberman, Mayor Attest: Kelly Wetmore, City Clerk Approved as to Form: Timothy J. Carmel, City Attorney Attest: Donna L. McMahon, City Clerk Approved as to Form: Martin D. Koczanowicz, City Attorney OCEANO COMMUNITY SERVICES DISTRICT: Jim Hill. President Attest: Patrick O'Reilly, General Manager/ Secretary to the Board Approved as to Form: Alex Simas, District Legal Counsel 8.k. MEMORANDUM TO: CITY COUNCIL FROM: MICHAEL E. HUBERT, DIRECTOR OF BUILDING AND FIRE ~n~' SUBJECT: CONSIDERATION OF AUTHORIZATION TO PURCHASE REPLACEMENT FIRE BASE STATION RADIOS AND COMMUNICATION EQUIPMENT DATE: AUGUST 28, 2007 RECOMMENDATION: It is recommended that the City Council authorize staff to purchase replacement base station radios and communication equipment for the Fire Department from Sterling Communications for $12,169. FUNDING: The project will be funded by the FY 2007-08 Capital Improvement Program that has $25,000 for radio communication upgrades. DISCUSSION: The current radio communications system was purchased in FY 1986-87 and is approximately 20 years in age. Our communications maintenance contractor has notified us that the manufacturer will no longer support elements of the current system with replacement components. Last year the Police Department was approved to purchase new radio equipment to upgrade their aging communication system. In May of this year, the Police Department was approved to purchase replacement dispatch consoles. Both radio and console purchases were made from Sterling Communications who is also contracted to install the equipment. Sterling Communications has proposed to provide Motorola equipment so it's fully compatible with the equipment purchased by the Police Department. Additionally, Sterling Communications has recommended that we purchase an uninterrupted power supply to protect our equipment in the event of a power outage. Sterling Communications is the contractor currently maintaining and servicing the radio communications equipment at the Police Department. CITY COUNCIL CONSIDERATION OF AUTHORIZATION TO PURCHASE REPLACEMENT FIRE BASE STATION RADIOS AND COMMUNICATION EQUIPMENT AUGUST 28, 2007 PAGE 2 The proposal from Sterling Communications is broken down as follows: Item Unit Cost Amount 2 MTR2000 base stations 4,400.00 ea. 8,800.00 1 46" cabinet 500.00 ea. 500.00 (2) Trade in 30" cabinets from the reservoir (250.00) ea. (500.00) 1 Omni antenna 365.00 ea. 365.00 1 Tripod for antenna 39.00 ea. 39.00 1 50 ft. of LMR400 cable with connectors & jumpers 375.00 ea. 375.00 1 Tripplite 1500w Smart UPS, rack mount 746.00 ea. 746.00 Subtotal 10,325.00 Labor 1,000.00 Freight 40.00 Sales Tax 803.29 Total $12,168.29 Staff believes it is appropriate to purchase and replace our fire communications equipment concurrently with the Police Department's replacement process. Both Police and Fire Department's communications equipment are housed and integrated as one system. There is a cost savings to have all equipment installed at one time rather than having the Fire Department equipment installed at a later date. ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Approve staff's recommendation; - Do not approve staffs recommendation; - Modify as appropriate and approve staff's .recommendation; - Provide direction to staff. 8.1. MEMORANDUM TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER~"~ SUBJECT: CONSIDERATLON TO AWARD A CONTRACT TO TOSTE GRADING AND PAVING FOR RESURFACING PORTIONS OF FAIR OAKS AVENUE AND NEVADA STREET DATE: AUGUST 28, 2007 RECOMMENDATION: It is recommended the City Council award a contract to Toste Grading and Paving in the amount of $27,000 for resurfacing portions of Fair Oaks Avenue and Nevada Street. FUNDING: Funding for this project will be from several sources including $9,460 from the developer of Tract 2669, $8,100 from the Public Works Operating budget and $50,000 from a capital improvement project funded by the Water Fund for a total of $67;560. The majority of the funds were used to install a new waterline, fire line and utility conduits. The remaining balance will be used to resurface a portion of each street DISCUSSION: The existing four inch waterline in Nevada Street was identified in the Water Master Plan to be replaced with an eight inch waterline to increase water flow, water circulation and fire flow. The waterline replacement was coordinated with the offsite improvements for Tract 2669 located at the intersection of Le Point and Nevada Streets. The developer provided funding for the street paving instead of paving Nevada Street to allow the City to schedule construction of the new waterline and utility conduits. The work is now complete and the street is ready to be resurfaced. There was also a portion of Fair Oaks Avenue from Orchard Street to California Street that needed to be resurfaced. The asphalt surface in the travel lane adjacent to the curb had deteriorated from heavy truck traffic and needs to be replaced. A bid was received from Toste Grading and Paving to resurface both Fair Oaks Avenue and Nevada Street. The resurfacing on Fair Oaks Avenue is in close CITY COUNCIL CONSIDERATION TO AWARD A CONTRACT TO TOSTE GRADING AND PAVING FOR RESURFACING PORTIONS OF FAIR OAKS AVENUE AND NEVADA STREET AUGUST 28, 2007 PAGE 2 proximity to Arroyo Grande High School. The resurfacing of Fair Oaks Avenue was determined to be urgent and was completed on August 20, 2007 to avoid interference with vehicles traveling to and from the high school when classes begin on August 27, 2007. Therefore, staff is requesting ratification by the City Council of this expenditure. Resurfacing of Nevada will be scheduled after the award of contract. ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Approve staff's recommendation to award a contract to Toste Grading and Paving; - Do not approve a contract with Toste Grading and Paving; - Modify staff's recommendation as appropriate and approve; or - Provide direction to staff. 8.m. MEMORANDUM TO: CITY COUNCIL FROM: TIMOTHY J. CARMEL, CITY ATTORNEY SUBJECT: CONSIDERATION OF APPROVAL OF AGREEMENT WITH CLEARWIRE US, LLC DATE: AUGUST 28, 2007 LAND LEASE RECOMMENDATION: It is recommended that the City Council approve and authorize the Mayor to execute a Land Lease Agreement between the City and Clearwire US, LLC ("Clearwire") for use of approximately eighty three (83) square feet of property located at 200 Hillcrest, Arroyo Grande, California (the "Reservoir Site'). FUNDING: Clearwire will pay the City rent of two thousand dollars ($2,000) per month. Rent is increased each year by an amount equal to four percent (4%) of the rent for the previous year. A monopine will be constructed, at Clearwire's sole cost, to accommodate Clearwire's antenna and other appurtenances; the City shall have the right to 50% of all rental paid from any subleases by Clearwire. Additionally, Clearwire will pay aone-time administrative review and processing fee of three thousand five hundred dollars ($3,500). DISCUSSION: Cleanvire has expressed an interest in leasing a portion of the Reservoir Site for a wireless broadband Internet facility site. After negotiations, the parties drafted the attached Land Lease Agreement ("Lease") for an approximate 83 square foot portion of the Reservoir Site and the construction of a monopine. The term of the Lease is for five (5) years with four (4) additional five (5) year extensions. Prior to construction of any improvements of the proposed Lease site, Clearwire will be required to obtain all necessary use and building permits and comply with all applicable conditions for its proposed facility. ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Approve staffs recommendation; - Do not approve staff's recommendation; - Modify staffs recommendation as appropriate and approve; or - Provide direction to staff. Attachment: 1. Land Lease Agreement LAND LEASE AGREEMENT This Lease Agreement (the "Agreement" or "Lease"), made this _ day of 2007 between the City of Arroyo Grande, a municipal corporation of the State of California, with its mailing address located at P. O. Box 550, 214 East Branch Street, Arroyo Grande, California 93421, Tax ID #95-6000-668, hereinafter designated LESSOR and Clearwire US LLC, a Nevada limited liability company ("Clearwire"), having a mailing address of 4400 Carillon Point Kirkland, WA 98033, hereinafter designated LESSEE. The LESSOR and LESSEE are at times collectively referred to hereinafter as the "Parties" or individually as the "Party". 1. PREMISES. LESSOR is the owner of that certain parcel of property (the entirety of LESSOR'S property is referred to hereinafter as the Property), located at 200 Hillcrest, Arroyo Grande, California, 93421, which property is more particularly described in Exhibit "A" attached hereto and made a part hereof, also known as assessor's parcel number 077-061-016. LESSOR hereby leases to LESSEE a portion of the Property, which portion is more particularly described as an eight foot three inch (8'3") by ten foot (10') parcel containing eighty three (83) square feet, as described below, plus that area necessary to accommodate the Clearwire antennas on the proposed monopine, which is to be installed at Clearwire's sole cost, together with the non-exclusive right for ingress and egress, seven (7) days a week twenty-four (24) hours a day, on foot or motor vehicle, including trucks, and for the installation and maintenance of utility wires, cables, and conduits, under, a twelve (12') foot wide right-of--way extending from the nearest public right-of--way, at Hillcrest, and running to the demised premises, said demised premises and right-of--way (hereinafter collectively referred to as the "Premises") for access being substantially as described herein in Exhibit "B" attached hereto and made a part hereof. In the event any public utility is unable to use the aforementioned right-of--way, the LESSOR hereby agrees to grant an additional right-of--way to either the LESSEE or to the public utility at no cost to the LESSEE. 2. SURVEY. LESSOR also hereby grants to LESSEE the right to survey the Property and the Premises, and said survey shall then become Exhibit "C" which shall be attached hereto and made a part hereof, and shall control in the event of boundary and access discrepancies between it and Exhibit "B". Cost for such work shall be borne by the LESSEE. 3. TERM. This Agreement shall be effective as of the date of execution by both parties, provided, however, the initial term shall be for five (5) years and shall commence on the Commencement Date (as hereinafter defined). The Commencement Date is defined as the first (1st) day of the month following the date this Agreement is executed by the Parties or the first (1st) day of the month following the date LESSEE is granted a building permit by the governmental agency charged with issuing such permits, whichever event occurs last. This Agreement shall automatically be extended for four (4) additional five (5) year terms unless the LESSEE terminates it at the end of the then current term by giving the LESSOR written notice of the intent to terminate at least six (6) months prior to the end of-the then current term. 4. ADDITIONAL EXTENSIONS. If at the end of the fourth (4th) five (5) year extension term this Agreement has not been terminated by either party by giving to the other written notice of an intention to terminate at least six (6) months prior to the end of such term, this Agreement shall continue in force upon the same covenants, ternrs and conditions for a further term of five (5) years and for five (5) year terms thereafter until terminated by either Party by giving to the other written notice of its intention to so terminate at least six (6) months prior to the end of such term. 5. RENT. (a) Within thirty (30) business days of the Commencement Date, and on the first day of each month thereafter, LESSEE shall pay to LESSOR Two Thousand and No/100 dollazs ($2000.00) per month ("rent"). Rent for any fractional month at the beginning or at the end of the Term or Renewal Term shall be prorated. Rent shall be payable to LESSOR at City of Arroyo Grande, P.O, Box 550, 214 East Branch Street Arroyo Grande, CA 93421; Attention: Financial Services Director. (b) Rent shall be increased on each anniversary of the Commencement Date by an amount equal to four percent (4%) of the rent for the previous year during the initial term and all extension terms. (c) Rent payments made after the fifteenth (15th) day of any month will be considered delinquent, and shall accrue interest at the rate often percent (10%) per annum on that delinquent amount until LESSEE'S account is paid to current. If the fifteenth (15th) day of the month is on a Saturday, Sunday or holiday, then LESSEE has until the next business day for the payment to be received by LESSOR. (d) Within thirty (30) days of the full execution of this Agreement, LESSEE shall pay to LESSOR as additional consideration a one time administrative fee of Three Thousand Five Hundred Dollazs ($3,500.00) for City transactional costs associated with preparation and processing of this Agreement. 6. USE: GOVERNMENTAL APPROVALS. LESSEE shall use the Premises solely for the purpose of constructing, maintaining and operating a wireless broadband internet service site and all necessary appurtenances and shall abide by, and keep itself fully informed of all Federal, State and local rules and regulations including, but not limited to, City's Telecommunication Facilities Siting and Permit Submittal Requirements, Resolution No. 3569. A security fence consisting of chain link construction or similar but compazable construction may be placed azound the perimeter of the Premises at the discretion of LESSEE, subject to obtaining all necessary permits and approvals. All improvements shall be at LESSEE'S expense and the installation of all improvements shall be at the discretion and option of the LESSEE subject to site design approval by LESSOR. LESSEE shall have the right to replace, repair, add or otherwise modify its equipment or any portion thereof, whether the equipment is specified or not on any exhibit attached hereto, during the term of this Agreement LESSEE will maintain the Premises in a good condition, reasonable wear and tear excepted. LESSOR will maintain the Property, but excluding the Premises, in good condition, reasonable wear and teaz excepted. It is understood and agreed that LESSEE'S ability to use the Premises is contingent upon its obtaining after the execution date of this Agreement all of the certificates, permits and other approvals (collectively the "Governmental Approvals") that maybe required by any Federal, State or Local authorities, including all land use permits required by the City of Arroyo Grande which will permit LESSEE use of the Premises as set forth above. LESSOR shall cooperate with LESSEE in its effort to obtain such approvals. In the event that any of Governmental Approvals should be finally rejected or any Governmental Approval issued to LESSEE is canceled, revoked, expires, lapses, or is otherwise withdrawn or terminated by governmental authority, or soil boring tests are found to be unsatisfactory so that LESSEE in its reasonable discretion will be unable to use the Premises for its intended purposes, LESSEE shall have the right to terminate this Agreement. Notice of the LESSEE'S exercise of its right to terminate shall be given to LESSOR in writing by certified mail, return receipt requested, and shall be effective upon the mailing of such notice by the LESSEE. All rentals paid to said termination date shall be retained by the LESSOR. Upon such termination, this Agreement shall be of no further force or effect except to the extent of the representations, warranties and indemnities made by each party to the other hereunder. Otherwise, all the Parties shall have no further 2 obligations including the payment of money, to each other 7. TAXES. LESSEE shall pay any personal property taxes assessed on, or any portion of such taxes attributable to, LESSEE" s communications facility or use and occupancy of the Property. LESSOR shall pay when due all real property taxes and all other fees and assessments attributable to the Premises. LESSEE shall pay, as additional rent, any increase in real property taxes levied against the Property which is attributable to LESSEE' s use of the Property upon production of documentary proof of such increase to LESSEE. Either Party to this Agreement may timely file a protest with the appropriate taxing authority, and Lessor consents to Lessee's intervention and timely protest with the appropriate taxing authority. The Parties will reasonably cooperate with each other with information regarding the relative valuation of their property and allow each other to participate in any proceeding related to the tax protest. LESSEE shall indemnify, defend and hold LESSOR harmless from and against any damage or loss arising out of or in any way attributable to LESSEE'S tax protest with the respective taxing authority. In the event one Party fails to comply with the requirement to pay taxes or any other legal requirement and that noncompliance interferes with the other Party's rights under this Agreement, the compliant Party will have the right after ten (10) days written notice to the noncompliant Party to takes steps necessary to effect compliance. All costs and expenses incurred by the compliant Party in effecting compliance will be either charged to the LESSEE, in the event the LESSEE is the noncompliant Party, or offset against me Rent in the event the LESSOR is the noncompliant Parry. 8. INDEMNITY; INSURANCE; (a) Indemnity. This Agreement is made upon the express condition that LESSEE shall indemnify, defend, keep and save harmless LESSOR, and its directors, officials, officers, agents and employees against any and all suits, claims or actions, and any losses, costs or damages, including reasonable attorneys' fees, arising out of any injury or injuries to, or death or deaths of, persons or damage to property that may occur, or that may be alleged to have occurred, from any cause or causes whatsoever, in any way resulting From LESSEE'S negligent use or occupancy of the Premises during the term of this Agreement, including any extension term or during any holdover tenancy thereof, except to the extent caused by the proven negligence or willful misconduct of LESSOR, its Councilmembers, officers, agents and employees. (b) Insurance. LESSEE shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit "D" attached hereto and incorporated herein as though set forth in full. 9 ANNUAL TERMINATION. Notwithstanding anything to the contrary contained herein, and provided LESSEE is not in default hereunder and shall have paid all rents and sums due and payable to the LESSOR by LESSEE, LESSEE shall have the right to terminate this Agreement upon the annual anniversary of this Agreement provided that six (6) months prior notice is given the LESSOR. 10. INTERFERENCE. LESSOR agrees that LESSOR and/or any other tenants of the Property who currently have or in the future take possession of the Property will be permitted to install only such radio equipment that is of the type and frequency, which will not cause measurable interference to the existing equipment of the LESSEE. (a) LESSEE shall construct, maintain and operate the Premises and improvements thereon in such a manner that will not cause interference to LESSOR including, but not limited to, LESSOR'S re- broadcaster for its fire, police and other public safety departments, and other lessees or licensees of 3 the Property. All operations by LESSEE shall be in compliance with all Federal Communications Commission ("FCC") requirements and all applicable laws. (b) Subsequent to LESSEE'S construction, installation and operation of improvements in the Premises, LESSOR shall not permit itself; its lessees or licensees to install new equipment on the Property contiguous thereto owned or controlled by LESSOR, if such equipment will cause interference with LESSEE'S operations. In the event interference occurs, LESSOR agrees to take all reasonable steps necessary to eliminate such interference, in a reasonable time period. Notwithstanding anything herein to the contrary, in the event LESSOR fails to comply with this Section 10, LESSEE'S sole remedy is to terminate this Agreement. 11. REMOVAL UPON TERMINATION. LESSEE, upon termination of the Agreement, shall, within ninety (90) days, remove its building(s), antenna installation(s) (except footings), fixtures and all personal property and otherwise restore the Premises to its original condition, reasonable wear and tear and casualty excepted. LESSOR agrees and acknowledges that all of the equipment, fixtures and personal property of the LESSEE shall remain the personal property of the LESSEE and the LESSEE shall have the right to remove the same, whether or not said items are considered fixtures and attachments to real property under applicable law. The parties acknowledge and agree that the subject monopine shall be considered a fixed improvement of the Property. If such time for removal causes LESSEE to remain on the Premises after termination of this Agreement, LESSEE shall pay rent at the then existing monthly rate or on the existing monthly pro- rata basis if based upon a longer payment term, until such time as the removal of the building, antenna structure, fixtures and all personal property are completed. 12. RIGHTS UPON SALE. Should the LESSOR, at anytime during the term of this Agreement, decide to sell all or any part of the Property to a purchaser other than LESSEE, such sale shall be under and subject to this Agreement and LESSEE'S rights hereunder, and any sale by the LESSOR of the portion of this Property underlying the right-o£ way herein granted shall be under and subject to the right of the LESSEE in and to such right-of--way. 13. QUIET ENJOYMENT: LESSOR covenants that LESSEE, on paying the rent and performing the covenants shall peaceably and quietly have, hold and enjoy the Premises. 14. TITLE. LESSOR covenants that LESSOR is seized of good and sufficient title and interest to the Property and has full authority to enter into and execute this Agreement LESSOR further covenants that there are no other liens, judgments or impediments of title on the Property or affecting LESSOR'S title to the same and that there are no covenants, easements or restrictions which prevent the use of the Premises by the LESSEE as set forth above. 15. INTEGRATION: It is agreed and understood that this Agreement contains all agreements, promises and understandings between the LESSOR and LESSEE and that no verbal or oral agreements, promises or understandings shall be binding upon either the LESSOR or LESSEE in any dispute, controversy or proceeding at law, and any addition, variation or modification to this Agreement shall be void and ineffective unless made in writing and signed by the Parties. In the event any provision of the Agreement is found to be invalid or unenforceable, such finding shall not affect the validity and enforceability of the remaining provisions of this Agreement. The failure of either Party to insist upon strict performance of any of the terms or conditions of this Agreement or to exercise any of its rights under the Agreement shall not waive such rights and such Party shall have the right to enforce such rights at any time and take such action as may be lawful and authorized under this Agreement, either in law or in equity. 4 16. GOVERNING LAW. This ,Agreement and the performance thereof shall be governed, interpreted, construed, and regulated by the laws of the State in which the Property is located. 17. ASSIGNMENT. This Agreement maybe assigned by the LESSEE without any approval or consent of the LESSOR to the LESSEE'S lender in connection with a financing agreement or to its principal, affiliates, subsidiazies of its principal; to any entity which acquires all or substantially all of LESSEE'S assets in the market defined by the Federal Communications Commission in which the Property is located by reason of a merger, acquisition or other business reorganization; or to any entity which acquires or receives an interest in the majority of communication towers of the LESSEE in the market defined by the Federal Communications Commission in which the Property is located. If there is a permitted assignment as described herein, information regazding the type of technology that will be used by the new lessee ahall be submitted to the City Community Development Department within ten (10) days of such change. As to other parties, this Agreement may not be sold, assigned, sublet or transferred without the prior written consent of the LESSOR which consent maybe granted or withheld in its sole discretion. In the event LESSEE subleases any portion of the Premises to any party which is not a permitted assignee as described above, in accordance with this Agreement, any rental paid by any Sublessees) shall be divided between the LESSOR and the LESSEE in the following manner: fifty percent (50%) to LESSOR and fifty percent (50%) to LESSEE. Any Sublessee shall be instructed to pay the foregoing percentage amounts directly to the LESSOR and the LESSEE. The LESSEE shall not be responsible to the LESSOR for the collection or payment of rents by the Sublessee to the LESSOR, and the LESSEE shall have no liability to the LESSOR in the event of failure of payment by Sublessee. In this event (i) the LESSEE shall have no liability of any nature to the LESSOR for failure to sublet all or any part of the Premises to any or all potential Sublessee(s), and (ii) at LESSOR'S request, LESSEE will provide LESSOR with a tri-party agreement to be executed by the LESSEE, it's Sublessee, and LESSOR to confirm direct payment obligation from the Sublessee to the LESSOR and to indicate LESSOR has been notified of the sublease. It is understood and agreed by the Parties that the foregoing rental percentage amounts shall only apply if the LESSEE is able to accommodate all of Sublessee's facilities within the Premises. If the LESSEE is unable to accommodate any or part of Sublessee's facilities within the Premises, then LESSOR may enter into an agreement with the Sublessee for a .portion of the Property that Sublessee requires to locate its facilities. In this event, LESSOR shall receive 100% of the rental, negotiated by the LESSOR and Sublessee, for the portion of Sublessee's facilities that aze located on the Property outside LESSEE'S Premises. 18. NOTICES. All notices hereunder must be in writing and shall be deemed validly given if sent by certified mail, return receipt requested or by commercial courier, provided the courier's regular business is delivery service and provided further that it guarantees delivery to the addressee by the end of the next business day following the courier's receipt from the sender, addressed as follows (or any other address that the Party to be notified may have designated to the sender by like notice. LESSOR: City Manager, City of Arroyo Grande P.O. Box 550, 214 Ash Street Arroyo Grande, California 93421 LESSEE: Clearwire US LLC Attn: Site Leasing 4400 Carillon Point Kirkland, WA 98033 Telephone: 425-216-7600 Fax: 425-216-7900 With a copy to: Clearwire US LLC Attention: Legal Department 4400 Carillon Point Kirkland, WA 98033 Telephone: 425-216-7600 Fax: 425-216-7900 Notice shall be effective upon actual receipt or refusal as shown on me receipt obtained pursuant to the foregoing. 19. SUCCESSORS. This Agreement shall extend to and bind the heirs, personal representatives, successors and permitted assigns of the Parties hereto. 20. SUBORDINATION AND NON-DISTURBANCE. At LESSOR'S option, this Agreement shall be subordinate to any mortgage or other security interest by LESSOR which from time to time may encumber all or part of the Property or right-of--way, provided, however, every such mortgage or other security interest shall recognize the validity of this Agreement in the event of a foreclosure of LESSOR'S interest and also LESSEE'S right to remain in occupancy of and have access to the Premises as long as LESSEE is not in default of this Agreement. LESSEE shall execute whatever instruments may reasonably be required to evidence this subordination clause. In the event the Property is encumbered by a mortgage or other security interest, the LESSOR immediately after this Agreement is executed, will obtain and furnish to LESSEE, anon-disturbance agreement for each such mortgage or other security interest in recordable form. In the event the LESSOR defaults in the payment and/or other performance of any mortgage or other security interest encumbering the Property, LESSEE, may, at its sole option and without obligation, cure or coirect LESSOR'S default and upon doing so, LESSEE shall be subrogated to any and all rights, titles, liens and equities of theholders of such mortgage or security interest and the LESSEE shall be entitled to deduct and setoff against all rents that may otherwise become due under this Agreement the sums paid by LESSEE to cure or correct such defaults. 21. RECORDING. LESSOR agrees to execute a Memorandum of this Lease Agreement which LESSEE may record with the appropriate Recording Officer. The date set forth in the Memorandum of Lease is for recording purposes only and bears no reference to commencement of either term or rent payments. 22. DEFAULT. In The event there is a default by the LESSEE with respect to any of the provisions of this Agreement or its obligations under it, including the payment of rent, the LESSOR shall give LESSEE written notice of such default. After receipt of such written notice, the LESSEE shall have fifteen (15) days in which to cure any monetary default and thirty (30) days in which to cure any non-monetary default, provided the LESSEE shall have such extended period as may be required beyond the thirty (30) days if the nature of the cure is such that it reasonably requires more than thirty (30) days and the LESSEE commences the cure within the thirty (30) day period and thereafter continuously and diligently pursues the cure to completion. 6 The LESSOR may not maintain any action or effect any remedies for default against the LESSEE unless and until the LESSEE has failed to cure the same within the time periods provided in this Paragraph. 23. ENVIRONMENTAL. LESSOR represents that, to the best of LESSOR'S knowledge, the Premises have not been used for the generation, storage, treatment or disposal of hazardous materials, hazazdous substances or hazardous wastes. In addition, LESSOR represents that, to the best of LESSOR'S knowledge, no hazardous materials, hazardous substances, hazardous wastes, or underground storage tanks are located on or near the Premises. LESSEE will not bring onto or store on the Premises hazardous materials, hazazdous substances or hazardous wastes. Notwithstanding the immediately preceding sentence, LESSOR and LESSEE acknowledge that LESSEE may be utilizing and maintaining on the Premises sealed batteries, propane/diesel/gasoline, HVAC system, and a halon/FM200 fire suppression system and that the use and maintenance of such items shall not constitute a violation or breach of this pazagraph. LESSEE shall be responsible for and shall indemnify and hold harmless LESSOR from any and all liabilities and damages, including but limited to removal costs, arising out of any environmental damage caused by LESSEE. 24. CASUALTY. In the event of damage by fire or other casually to the Premises that cannot reasonably be expected to be repaired within forty-five (45) days following same or, if the Property is damaged by fire or other casualty so that such damage may reasonably be expected to disrupt LESSEE'S operations at the Premises for more than forty-five (45) days, then LESSEE may at any time following such fire or other casualty, provided LESSOR has not completed the restoration required to permit LESSEE to resume its operation at the Premises, terminate this Lease upon fifteen (15) days written notice to LESSOR. Any such notice of termination shall cause this Lease to expire with the same force and effect as though the date set forth in such notice were the date originally set as the expiration date of this Lease and the Parties shall make an appropriate adjustment, as of such termination date, with respect to payments due to the other under this Lease. Notwithstanding the foregoing, all rents shall abate during the period of repair following such fire or other casualty. 25. CONDEMNATION. 1n the event of any condemnation of the Property, LESSEE may terminate this Lease upon fifteen (15) days written notice to LESSOR if such condemnation may reasonably be expected to disrupt LESSEE'S operations at the Premises for more than forty-five (45) days. LESSEE may on its own behalf make a claim in any condemnation proceeding involving the Premises for losses related to the antennas, equipment, its relocation costs and its damages and losses (but not for the loss of its leasehold interest). Any such notice of termination shall cause this Lease to expire with the same force and effect as though the date set forth in such notice were the date originally set as the expiration date of this Lease and the Parties shall make an appropriate adjustment as of such termination date with respect to payments due to the other under this Lease. 26. SUBMISSION OF LEASE. The submission of this Lease for examination does not constitute an offer to lease the Premises and this Lease becomes effective only upon the full execution of this Lease by the Parties. If any provision herein is invalid, it shall be considered deleted from this Lease and shall not invalidate the remaining provisions of this Lease. Each of the Parties hereto wan•ants to the other that the person or persons executing this Lease on behalf of such Party has the full right, power and authority to enter into and execute this Lease on such Party's behalf and that no consent from any other person or entity is necessary as a condition precedent to the legal effect of this Lease. 7 27. APPLICABLE LAWS. LESSEE shall use the Premises as may be required or as permitted by applicable laws, rules and regulations. LESSOR agrees to keep the Property in conformance with all applicable, laws, rules and regulations and agrees to reasonably cooperate with the LESSEE regarding any compliance required by the LESSEE in respect to its use of the Premises. 28. SURVIVAL. The provisions of the Agreement relating to indemnification from one Party to the other Party shall survive any termination or expiration of this Agreement Additionally, any provisions of this Agreement which require performance subsequent to the termination or expiration of this Agreement shall also survive such termination or expiration. 29. CAPTIONS. The captions contained in this Agreement are inserted for convenience only and are not intended to be part of the Agreement. They shall not affect or be utilized in the construction or interpretation of the Agreement. IN WITNESS WHEREOF, the parties have caused this Agreement to be effective as of the first date written above. CITY OF ARROYO GRANDE CLEARWIRE US LLC By: Tony M. Ferrara, Mayor Attest: Kelly Wetmore, City Clerk Approved As To Form: By: (Title) Timothy J. Cannel, City Attorney EXHIBIT A DESCRIPTION OF PROPERTY Page _1_ of _2_ to the Agreement dated , 2007, by and between City of Arroyo Grande, a municipal corporation, as Landlord, and Clearwire US LLC, a Nevada limited liability company, as Tenant Real property in the City of Arroyo Grande, County of San Luis Obispo, State of California, described as follows: PARCEL 1: THAT PORTION OF LOT 106 OF THE RANCHO CORRAL DE PIEDRA, PISMO AND BOLSA DE CHEMISAL, IN THE CITY OF ARROYO GRANDE, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, SUBDIVIDED BY JAS. T. STRATTON, SEPTEMBER, 1873, RECORDED IN BOOK A PAGE 65 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST SOUTHERLY CORNER OF TRACT NO. 46 AS SHOWN ON MAP ENTITLED .TRACT NO. 46, A SUBDIVISION OF A PART OF LOTS A, B, C, 22 AND 23 OF THE TOWN OF GROVER AND A PART OF LOT 106 OF THE SUBDIVISION OF RANCHO CORRAL DE PIEDRA ETC.. RECORDED IN BOOK S PAGE 64 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE NORTH 03°22.30. EAST, A DISTANCE OF 218.84 FEET; THENCE SOUTH 86°34.30. EAST, A DISTANCE OF 495.50 FEET TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 86°34.30. EAST, A DISTANCE OF 400.00 FEET TO A POINT; THENCE NORTH 30°25.30. EAST, A DISTANCE OF 200.00 FEET TO A POINT; THENCE NORTH 86°34.30. WEST, 400.00 FEETTO A POINT; THENCE NORTH 03°25.30. WEST, A DISTANCE OF 200.00 FEET TO THE TRUE POINT OF BEGINNING. PARCEL 2: RIGHTS OF WAY FOR THE CONSTRUCTION, OPERATION AND MAINTENANCE OF ROADWAYS AND PIPE LINES AND FOR ANY AND ALL OTHER PURPOSES NECESSARY AND INCIDENT TO THE MAINTENANCE, AND OPERATION OF A RESERVOIR ON THE HEREINBEFORE DESCRIBED REAL PROPERTY. SAID RIGHT, OF WAY TO COVER AND AFFECT THE FOLLOWING DESCRIBED REAL PROPERTY: BEGINNING AT A POINT ON THE EASTERLY LINE OF TRACT NO. 46, SAID POINT BEING LOCATED NORTH 03°22.30. EAST, A DISTANCE OF 218.84 FEET FROM THE MOST SOUTHERLY CORNER OF TRACT NO. 46 AS SHOWN ON MAP ENTITLED .TRACT NO. 46, A SUBDIVISION OF A PART OF LOTS A, B, C, 22 AND 23 OF THE TOWN OF GROVER AND A PART OF LOT 106 OF THE SUBDIVISION OF RANCHO CORRAL DE PIEDRA ETC.. RECORDED IN BOOK 5 PAGE 64 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE SOUTH 86°34.30. EAST, A DISTANCE OF 495.50 FEET TO THE SOUTHEAST CORNER OF ABOVE DESCRIBED PROPERTY; THENCE NORTH 03° 25.30. EAST, A DISTANCE OF 20.00 FEET TO A POINT; THENCE NORTH 86°34.30. WEST, A DISTANCE OF 464.64 FEET TO A POINT ON THE EASTERLY LINE OF SAID TRACT NO. 46; THENCE SOUTH 60°29. WEST, A DISTANCE OF 36.78 FEET TO THE POINT OF BEGINNING. EXHIBIT A DESCRIPTION OF PROPERTY Page _2_ of _2_ PARCEL 3: RIGHTS OF WAY FOR THE CONSTRUCTION, OPERATION AND MAINTENANCE OF ROADWAYS AND PIPE LINES AND FOR ANY AND ALL OTHER PURPOSES NECESSARY AND INCIDENT TO THE MAINTENANCE, AND OPERATION OF A RESERVOIR ON THE HEREINBEFORE DESCRIBED REAL PROPERTY. SAID RIGHT, OF WAY TO COVER AND AFFECT THE FOLLOWING DESCRIBED REAL PROPERTY: BEGINNING AT A POINT IN LOT 106 OF THE SUBDIVISION OF RANCHO CORRAL DE PIEDRA, SAID POINT OF BEGINNING BEING LOCATED AS FOLLOWS, BEGINNING AT THE MOST SOUTHERLY CORNER OT TRACT NO. 46 AS SHOWN ON MAP ENTITLED .TRACT NO. 46, A SUBDIVISION OF A PART OF LOTS A, B, C, 22 AND 23 OF THE TOWN OF GROVER AND A PART OF LOT 106 OF THE SUBDIVISION OF RANCHO CORRAL DE PIEDRE ETC.., RECORDED IN BOOKS PAGE 64 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCENORTH 03°22.30. EAST, A DISTANCE OF 218.84 FEET; THENCE SOUTH 86°34.30. EAST, A DISTANCE OF 895.50 FEET TO THE TRUE POINT OF BEGINNING; THENCE FROM SAID TRUE POINT OF BEGINNING SOUTH 86°34.30. EAST, A DISTANCE OF 100.00 FEET TO A POINT; THENCE NORTH 03°25.30. EAST, A DISTANCE OF 20.00 FEET TO A POINT; THENCE NORTH 86°34.30. WEST, A DISTANCE OF 100.00 FEET TO A POINT; THENCE SOUTH 03°25.30. WEST, A DISTANCE OF 20.00 FEET TO THE TRUE POINT OF BEGINNING. APN: 077-061-016 10 EXHIBIT B DESCRIPTION OF PREMISES Page _1_ of_1_ to the Agreement dated , 2007, by and between City of Anoyo Grande, a municipal corporation, as Landlord, and Clearwire US LLC, a Nevada limited liability company, as Tenant. ~HU,LCREST AVENUE (BEYOND) EL CAMINO REAL (BEYOND) BOUNDARIES EXISTING WATER TANK IN FENCED COMPOUND ~~ W1RE 8' 3' X 10' LEASE AREA AND MONOPINE NORTH ~ ''`~_PARKING AND TEMPORARY ~i GENERATOR LOCATION ACCESS FROM HII.LCREST AVENUE 200 HII.LCREST AVENUE, ARROYO GRANDE, CA APN 077-061-016 NOT TO SCALE Drawn by: John T. Merritt 4/10/07 Notes• 1. Tenant may replace this Exhibit with a survey of the Premises once Tenant receives it. 2. The Premises shall be setback from the Property's boundaries as required by the applicable governmental authorities. 3. The access road's width will be the width required by the applicable govemmental authorities, including police and fire deparhnents. 4. The type, number, mounting positions and locations of antennas and transmission lines are illustrative only. The actual types, numbers, mounting positions and locations may vary from what is shown above. 5. The locations of any utility easements are illustrative only. The actual locations will be determined by the servicing utility company in compliance wi h all local laws and regulations 11 EXHIBIT "D" INSURANCE Prior to the fieginning of and throughout the duration of this Agreement, LESSEE will maintain insurance in conformance with the requirements set forth below. LESSEE will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth here, LESSEE agrees to amend, supplement or endorse the existing coverage to do so. LESSEE acknowledges that the insurance coverage attd policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to LESSOR in excess of the limits and coverage required in this agreement and which is applicable to a given loss, will fie available to LESSOR. LESSEE shall provide the following types and amounts of insurance: Commercial General Liability Insurance using Insurance Services Office "Commercial General Liability" policy from CG 00 O1 or the exact equivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits by one insured against another. Limits are subject to review but in no event less than $1,000,000 per occurrence. Business Auto Coverage on ISO Business Auto Coverage from CA 00 O1 including symbol 1 (Any Auto) or the exact equivalent. Limits are subject to review, but in no event to be less than $1,000,000 per accident. If LESSEE or LESSEE'S employees will use personal autos in any way on this project, LESSEE shall provide evidence of personal auto liability coverage for each such person. Fire and Insurance. LESSEE shall maintain a policy of standard fire and extended coverage insurance on its improvements to the Premises. Workers Compensation on astate-approved policy form providing statutory benefits as required by law with employer's liability limits no less than $1,000,000 per accident or disease. Excess or Umbrella Liability Insurance (Over Primary) if used to meet limit requirements, shall provide coverage at least as broad as specified for the underlying coverages. Coverage shall be provided on a "pay on behalf' basis, with defense costs payable in addition to policy limits. Policy shall contain a provision obligating insurer at the time insured's liability is determined, not requiring actual payment by the insured first. Coverage shall be applicable to LESSOR for injury to employees of LESSEE. The scope of coverage provided is subject to approval of LESSOR following receipt of proof of insurance as required herein. Limits are subject to review but in no event less than $1,000,000 per occurrence. Insurance procured pursuant to these requirements shall be written by insurer that are admitted carriers in the state California and with an A.M. Bests rating of A- or better and a tttinimum financial size VII. General conditions pertaining to provision of insurance coverage by LESSEE. LESSEE and LESSOR agree to the following with respect to insurance provided by LESSEE: 12 1. LESSEE agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. No liability insurance coverage provided to comply with this Agreement shall prohibit LESSEE, or LESSEE's employees, or agents, from waiving the right of subrogation prior to a loss. LESSEE agrees to waive subrogation rights against LESSOR regazdless of the applicability of any insurance proceeds, and to require all LESSEE to do likewise. LESSOR agrees to waive subrogation rights against LESSEE regardless of the applicability of any insurance proceeds, and to require all LESSOR to do likewise. 2. All insurance coverage and limits provided by LESSEE and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the LESSOR or its operations limits the application of such insurance coverage. 3. No liability policy shall contain any provision or definition that would serve to eliminate so-called "third party action over" claims, including any exclusion for bodily injury to an employee of the insured or of any LESSEE or subcontractor. 4. Al] coverage types and limits required are subject to approval, modification and additional requirements by the LESSOR, as the need arises. LESSEE shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect LESSOR'S protection without LESSOR'S prior written consent. 5. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to LESSEE's general liability policy, shall be delivered to LESSOR at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, LESSOR has the right, but not the duty, to obtain any insurance it deems necessazy to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by LESSOR shall be charged to and promptly paid by LESSEE or deducted from sums due LESSEE, at LESSOR'S option. 6. Certificate(s) are to reflect that the insurer will provide 30 days notice to LESSOR of any cancellation of coverage. LESSEE agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the certificate. 7. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by LESSEE is intended to apply first and on a primary, noncontributing basis in relation to any other insurance or self insurance available to LESSOR. 8. The LESSOR reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the LESSEE ninety (90) days advance 13 written notice of such change. If such change results in substantial additional cost to the LESSEE, the LESSOR will negotiate additional compensation proportional to the increase benefit to LESSOR. 9. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 10. LESSEE acknowledges and agrees that any actual or alleged failure on the part of LESSOR to inform LESSEE of non-compliance with any insurance requirements in no way imposes any additional obligations on LESSOR nor does it waive any rights hereunder in this or any other regard. 11. LESSEE will renew the required coverage annually as long as LESSOR, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until LESSOR executes a written statement to that effect. 12. LESSEE shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from LESSEE'S insurance agent to this effect is acceptable. A certificate of insurance as required in these specifications applicable to the renewing or new coverage must be provided to LESSOR within five days of the expiration of the coverages. 13. The provisions of any workers' compensation or similar act will not limit the obligations of LESSEE under this agreement. 14. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive. 15. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such. 16. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section. 17. LESSEE agrees to provide immediate notice to LESSOR of any claim or loss against LESSEE arising out of the work performed under this agreement. LESSOR assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve LESSOR. 14 8.n. MEMORANDUM TO: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER SUBJECT: CONSIDERATION OF COMMENTS TO THE LOCAL AGENCY FORMATION COMMITTEE (LAFCO) IN RESPONSE TO THE DRAFT SUPPLEMENTAL ENVIRONMENTAL IMPACT REPORT FOR THE LOS ROBLES DEL MAR PROJECT DATE: AUGUST 28, 2007 RECOMMENDATION: It is recommended the City Council approve and authorize submittal of the attached letter providing comments to the Local Agency Formation Committee (LAFCO) in response to the Draft Supplemental Environmental Impact Report (DSEIR) for the Los Robles Del Mar project. FUNDING: There is no direct financial impact to the City from this action. DISCUSSION: During the past eleven year period, the annexation of approximately 182 acres of vacant hillside land on the west side of Oak Park Boulevard north of the Pismo Beach has been under consideration by the City of Pismo Beach. The proposed development and annexation is referred to as Los Robles del Mar, which consists of a 38-acre site owned by Coastal Christian School and a 154- acre hillside area owned by Pacific Harbor Homes intended for future suburban residential subdivision. While the City of Pismo Beach certified a final EIR in 1996 and a Supplemental FEIR for the proposed development in 2003, LAFCO determined that a supplemental document was necessary pursuant to CEQA. The purpose of the Supplemental Environmental Impact Report is to focus particularly on the potential impacts of groundwater pumping for water supply to the proposed development, a resource also utilized by numerous unincorporated area private wells and two municipal wells of the City of Arroyo Grande. The adopted Los Robles del Mar Specific Plan approved by Pismo Beach in 1993 proposed 298 single-family homes, the private school, and 69 acres of open space. The revised Specific Plan approved in 2004 provides for 312 dwelling units, including 60 senior apartments, 99 terrace homes on small lots, 107 estate homes on suburban SFR CITY COUNCIL COMMENTS TO THE LOCAL AGENCY FORMATION COMMITTEE (LAFCO) IN RESPONSE TO THE DRAFT SUPPLEMENTAL ENVIRONMENTAL IMPACT REPORT FOR THE LOS ROBLES DEL MAR PROJECT AUGUST 28, 2007 PAGE 2 lots, 37 custom homes on quarter to half acre lots and 9 rural estate lots on 1 acre or larger, with 71 acres of open space, and the private school for 500 students. The prior EIR anticipated that the proposed project would be served primarily by City of Pismo Beach water supplies, but the proposal for annexation now submitted to LAFCO involves municipal pumping of these three existing private wells by the City of Pismo Beach. The Los Robles Del Mar development is estimated to need a maximum of 151 acre feet per year from these wells and the City's Development Agreement allows unrestricted pumping. LAFCO distributed the DSEIR on July 13, 2007 and is inviting public review and comment ending September 12, 2007. A public hearing including response to comments is scheduled for November 15, 2007. Attached for City Council consideration is a draft letter to LAFCO prepared by the City Attorney outlining the proposed City comments, which primarily involve staff's concerns that the DEIR does not adequately address the impact on the City of Arroyo Grande wells. Also attached are comments submitted by the Oak Park Estates Homeowners Association (OPEHA). ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Approve and authorize submittal of the attached letter providing comments to the Local Agency Formation Committee (LAFCO) in response to the Draft Supplemental Environmental Impact Report (DSEIR) for the Los Robles Del Mar project; - Make modifications to the proposed letter and approve; - Do not approve the letter; - Provide staff direction. Attachments: Proposed letter providing comments to the Local Agency Formation Committee (LAFCO) in response to the Draft Supplemental Environmental Impact Report (DSEIR) for the Los Robles Del Mar project Letter from OPEHA S:\Administration\CITY MANAGER\STEVE\Council ReportsU.os Robles Del Mar SEIR Comment Letter Report 8.28.07.doc tPiG~ o~. OFFICE of the MAYOR August 28, 2007 Paul Hood Executive Officer Local Agency Formation Commission 1042 Pacific Stteet, Ste. A San Luis Obispo, CA 93401 ATTACHMENT1 P.O. Box 550 214 East Branch Street Arroyo Grande, CA 93421 Phone: (805) 473.5404 FAX: (805) 473-0386 E-Mail: agcity@arroyogrande.org Re: .Los Robles Del Mar Annexation Drafr Supplemental Environmental Impact Report Dear Mr. Hood, The City of Arroyo Grande has reviewed the Draft Supplemental Environmental Impact Report ("DEIR' for the proposed Los Robles Del Mar Annexation (the "Project"). On behalf of the City, we respectfully submit the following comments: I. TESTING AND WELL INTERFERENCE As you know, the DEIR indicates that 1) long term pumping tests were performed on LRDM well #2 from August '05 to August '06; 2) a one month pumping test was performed in February '07; and that AG well #10 was tested by the City in January '07. The pump testing was performed primarily in order to determine interference between the deep aquifer and the shallow aquifer to determine impacts to the private domestic wells, which all draw from the shallow aquifer. In addition, interference between the LRDM and AG wells was observed. The results from the tests are indicated in pages V-12 to V-14 of the DEIR. ` As the pumping tests demonstrate, interference was observed between the LRDM wells and the AG wells, however, the DEIR (under Impact A-5) indicates that the amount of interference between the deep aquifer wells will not significantly hinder the ability of any of the wells to produce groundwater and therefore, the potential impact of mutual interference is considered to be insignificant. However, the results o£ the pumping tests aze not accurately reflected in the DEIR. In fact, AG well #10 is currently non-operational and,the City of AG does not know the pumping capabilities of the well. During the pumping test, gravel was accidentally pumped through due [o an oversized screen being installed. Once the well becomes operational hopefully within the near future, the City of AG does intend on extracting the highest possible yield from well #10, estimated to be over 100 afy. Furthermore, no pumping tests were performed on LRDM wells #1 or #3, only recovery tests. No pump test was performed on AG well #9, only measurement of water levels. Again, potential interferences were determined to be insignificant, however, a full range of pumping tests was not performed. An accurate analysis of such interference cannot be made without comprehensive testing. Moreover, City of AG data indicates that when LRDM wells are operating, AG well #9 incurs at least a IS% - 20% drop in water production: Such similar interference could easily carry over to AG well #]0 once it is fully operational. II. CUMULATIVE IMPACTS TO THE DEEP AQUIFER The DEIR misrepresents the total cumulative impact to the deep aquifer in terms of its safe yield and potential for overdraft condition. The cumulative impacts for the estimated safe yield for the deep aquifer do not take into account pumping from AG well #10 or the Tract 1998 wells; only AG well #9 was taken into account for the cutriulative safe yield. Further, the estimated safe yield for the deep aquifer is 270 afy; the total cumulative draw from the deep aquifer is estimated to be 261 afy, however, that is assuming that: 1) AG does not increase its pumping with well #9 and does not pump from well #10; 2) that 270 afy is the correct safe yield of the deep aquifer; 3) that the 15] afy pumped from the LRDM wells is the actual amount that is pumped; and 4) that no water is ever pumped from the wells located on Tract ] 998 (within the Ciry of Arroyo Grande's limits). It should be noted that the PB Public Works Department indicated that the 151 afy is the minimum that will be pumped (see page V-19 of DEIR). Additionally, this estimated safe yield amount assumes that inflows will be static and does not take into account drought conditions or other occurrences which may reduce the inflow of water to the deep aquifer. The fact that AG well #10 is not included in the cumulative impact calculation is a serious flaw in the DEIR. While the City is in the process of correcting mechanical issues with AG well #l0, the City believes that the well will have the ability to pump more than 100 afy, which it fully intends on extracting. With AG well #10 in the picture, the LRDM wells will only be able to extract 60 afy before an overdraft condition will occur. This is a far cry from the estimated minimum of l51 afy. k i ~" ~Py '~1 f' My ' { y ~ '..+ ~ ~S~ 9{^ ~P b ' ~ j N T ~ f t A ~6 i '1 ~'N } 1A ~.3 {dr*%J~4' k.J 4 ; b. ~ 4 fr ' T ~.d .f yyF ~N''y~ ~l ~ Y~ ~ ,~{ ' ti '%M.t~'.e I0.Y ' S ' ~a'F / ' }-rsIPPiC~~~ 1t.2 i~~M~P~' +4~yy y'~ }' , s ~ ~ UMMARY,OF CUMULATIVE D "' R AW OF THE DEEP3AQUIFER~~, ~ ~-{V~9{ ~~~ h ~~ v4~ ~ ~q ~h Y ~j~ ~ 1 ~~ ..$'YT' C}~y~ Rh ~ Y1g i%" ~y{+} ~L1 ~v ~ ., yy rN ~,.""M1~,?h}ra.x ~o#a»&"y'~n.~ru ~. 1v R~ r ~ ~ .,~4Rkc'~`R _ x T . .:'iv 4~n'. ~ E <i~'Ir3 ~~ +~ :" n.''i}.~~.zI~.2!tle'.T-P_~Y 1S.....; WELL AFY PUMPED Ri arian Ve elation 20 a interce led LRDM # 1, #2 and #3 Cumulative estimated ]51 a AG Well #9 100 a AG Well #10 Est. 100+ a Tract 1998 Well Est. 20 a l u 3 f ny ..:fit 1 ~ ~ T T t l G i i l ti e ~` ; M~ " 391 ~ , o a ; u r u a v : , , , a Totallmdicated in DEIR 261 a Di erence 130 a 2 .III. Monitoring Program The proposed monitoring program is not an appropriate means of mitigation. A monitoring program will simply provide a check to ensure that pumping of the deep water wells does not exceed this 270 afy threshold, whereas, the exact pumping amount(s) are unknown and certain parries intend on and have clearly expressed an interest in increasing the amount that is pumped from their respective deep water wells. Additionally, as noted above, the analysis does not take into consideration the Ciry of AG's potential plans to pump water from a well located within Tract 1998, which also may extract water from the deep aquifer, or other domestic users that could potentially drill domestic wells into the deep aquifer. A monitoring program is not mitigation. CEQA not only requires impacts to be identified, but requires mitigation measures which actually mitigate that impact; the proposed monitoring program provides no such means. The Mitigation Measure for Impact A-2 misrepresents total extraction from the deep aquifer by the LRDM wells. Specifically, MM A-2 indicates: "Total extraction of groundwater from the deep aquifer via the LRDM wells #1, #2 and #3 after annexation of the LRDM site shall be restricted to the identified safe yield of the deep aquifer (currently estimated at 270 afy)..." (emphasis added) The total extraction of groundwater from the deep aquifer must also take into account not only the current extractions from AG well #9, but the proposed extractions from AG well #10 and the wells within Tract 1998, with yields that are yet to be determined. Moreover, it should be noted that the LRDM wells are capable of pumping 240 afy; while it is their intention to monitor and limit their extraction amounts, the capability is there to extract substantially more than the safe yield, given AG well extractions. We hope that the significant issues surrounding the Project are evident and that, at this time, LAFCO determines that the DEIR is inadequate, nor sufficient in its quest to identify, address and mitigate all potential impacts. It should be underscored that this supplemental DEIR (1 of 3 environmental impact assessment documents), was prepared due to LAFCO's need for additional environmental documentation regarding water resources. This DEIR blindly suggests that water related impacts are insignificant based off of incomplete and incorrect information and data. The significance and potential negative impact that this Project has on the area's water supply is evident through LAFCO's requirement of this supplemental DEIR and the time and resources utilized in commenting on it by affected parties. Please keep in mind that the Ciry of Arroyo Grande is not opposed to the Project per se, but is seriously concerned with the water impacts of the Project and the current analysis set forth in the DEIR. Thank you for your time and consideration and please call if you have any questions or comments. Sincerely, Tony Ferraza Mayor 3 cc: ~lar~~ Inn Rciss, Mayor of the Ciry of Pismo Beach Timothy J. Cannel, Arroyo Grande City Attorney Don Spagnolo, Arxoyo Grand Director of Public Woxks 4 ATTACHMENT2 August 22, 2007 Mr. Steven Adams City Manager, Arroyo Grande 214 East Branch Street Arroyo Grande, CA 93420 Deaz Mr. Adams: I am a citizen of Arroyo Grande, and Vice President of the Oak Park Estates Homeowners Association (OPERA), located in Arroyo Grande. OPERA is a 70 home organization located along Equestrian Way, bordered roughly by Oak Pazk Blvd on the west, Noyes Road on the North, and James Way on the South. The collective value of our properties exceeds $70 million. Part of the valuable property that OPERA owns, is the 80 acre green space opposite the Los Robles Del Maz (LRDM) planned development, on the other side of Oak Pazk Blvd., at the bottom of Oak Pazk Canyon. OPERA charges fees to graze cattle and horses in this green space, using these fees to defray the cost of maintenance in our association. Also, our green space has a wetlands (with several sensitive species) located at the south end of the green space at James Way. Several of our homes border this green space, allowing us to enjoy hundreds of oaks sustained by the green space's springs. As you know, the San Luis Obispo Local Area Formation Commission (SLO LAFCO) has released a draft Supplemental Environmental Impact Report (SEIR) that attempts to address pumping the deep aquifer located beneath our land (and the LRDM). There are several problems that OPERA has with the LRDM SEIR 1). The SEIR states that pumping the deep aquifer will not impact our green space, its wetlands, or its species, because the SEIR states that our green space is fed solely by the shallow aquifer, and that the shallow and the deep aquifer communicate only at the deep aquifer outcropping. The SEIR is in error, since according to Figure #6 of the SEIR, the southern end ojour green space lies between the 2 orange lines denoting the outcropping of the deep aquifer. The SEIR goes on to state that pumping LRDM wells will eliminate alluvial (removing 75 AFY page V-16) outflow as a source of out flow from the deep aquifer. Page 1 of 4 We believe that this 75 AFY alluvial outflow is responsible for our wetlands. Moreover, the outflow from the deep aquifer means that the shallow aquifer stays on the surface and does not end up recharging the deep aquifer. This keeps our green space .green, allowing grazing for our tenant animals, and for the proliferation of sensitive biological species in our green space. These species include cranes, ducks, and various plant life (which was NOT noted by the SEIR, since the SEIR biologist felt no need to check out our green space, given the FUGRO water report!). 2). The water equation is in error: The water equation shown on osee 18 of the Fu¢ro resort does not include AG well #10 in the variable OM. AG well #]0 is mentioned as needing to be monitored in Mitigation Measure #A1. AG well #]0 is also stated as being measured at producing 100 gallons per minute for certain of the well tests. Given this (conservative) rate of pumping capacity, if AG Well #10 pumped 24 hours a day for a full year it could pump 160 AF all by itself (page V-13). Does AG not intend to operate well #10? As citizens of AG and being well aware that our current water utilization is at 99%. OPERA would consider NOT using AG well #10 to be a waste of taxpayers' money. If AG well # 10 is pumped say at half capacity, 80 AFY, then there would be only 70 AFY safe yield available to LRDM, by the SEIR's own admission! This would put the deep aquifer into a very bad overdraft condition, inviting salt water incursion to the deep aquifer. And, any pumping beyond 75 AFY would begin to drain our green space! (Page V-16). Therefore, if LRDM is built, AG well #10 is useless, and our green space dries out! OPERA wants AG to pump well #10 at less than 75AFY 3). The mitigation measures are inadequate and conflict with the interests of surrounding residents. The mitigation measures have Pismo Beach monitoring its own well use. At several places in the SEIR, it says that Pismo has an agreement with the developer to pump the LRDM wells in excess of the requirements for LRDM. The mitigation measures amount to the foa guarding the henhouse. What incentive does Pismo Gave NOT to use more than 150 AFY? Page 2 of 4 Who has oversight over Pismo's monitoring? LAFCO? Is LAFCO saying that they now going to include well pumping oversight in their charter? Which agency has enforcement capabilities? The SLO Tribune has documented the fact that Pismo's state water allocation is being cut. When interviewed about this, the Pismo City Manager said "no problem, we can get more water from wells". Two years earlier, when the Tribune ran a story about AG's and Grover Beach's water woes, they quoted Pismo officials as saying " no problem, we get all the water we need from the State of California...". 4). Arroyo Graude becomes legally liable for damages due to Pismo's water usage. The aze 21 users of the deep aquifer living up Oak Pazk Canyon (this is current users . If Pismo uses more than 150 AFY, the wells of these homeowners run dry, without pumpurr a drop from AG well #10. Since the well users up Oak Pazk Canyon aze senior appropriators of the deep aquifer, and the municipalities of Pismo and AG are junior appropriators, AG and Pismo are liable for damages to these users. Moreover, since the aquifer is bowl-shaped, some of these well users draw from the deep aquifer closer to the surface. Some of the well users reported adverse wells. As citizens of OPERA, we do not think it prudent for the City of AG to assume liability for Pismo's water usage. 5). Existing homes and property in Arroyo Grande and San Luis Obispo county will be adversely impacted to accommodate the needs of a development that does not yet exist. AG already is using the .deep aquifer to meet existiug municipal needs. LRDM does not yet exist. Why should the citizens of AG be asked to ration fiuther water usage to support LRDM, and for that matter, future Pismo development? Why should OPERA have a beautiful 80 acre green space be degraded just so some developer can make money in Pismo Beach? 6). There was no variance analysis cited in the SEIR No mention was made of any factors that can affect the water equation. These numbers aze not static; they are based on averages. But in cases where the averages come so "close to the edge", variances from these average can play havoc with the assumptions. Page 3 of 4 For example: • No mention was made of the fact that several new estates are being built up Oak Pazk Canyon • No mention was made of the fact that many of the residents up the canyon aze putting granny units on their land, increasing draw from the deep aquifer. • Governor Schwaaenegger himself has expressed the feaz that California may be entering a prolonged (30 year) drought period. If so, Pismo's allocation will be cut, and there will be less recharge to the aquifer. Recommendation For all of the reasons stated above, the Oak Park Estates Homeowners Association fOPEHA) unanimously opposes LRDM usinn around water from the aouifers to support its development OPERA requests that the City of Arroyo Grande support the OPEHA's 70 homeowners in opposing LRDM's water usage. The e/)`ects of LRDM development on the City otAC and on our homeowners' ornanization are too adverse to be mitinated Since ly~ ' __ ~~ Harry .Goodnight Vice President, Oak Pazk Estates Homeowners Association 170 Vista Circle Arroyo Grande, CA 93420 805 720-2851 Cc: Don Spagnolo Jce Costello Ed Arnold Attachments: Picture of OPERA green space Picture of OPERA wetlands in green space Map of affected azea Page 4 of 4 r:. ~:,~' ~' e~i/~CS(~~c~y Cw i'1~-~ c `A~ !tom' ©~~~2. 2 C70 ~ ~~TI.~~OS - ~e~~z(` 2vo Co http:lJmaPs.google.comfmaPs4clienr-tueiox a.,~..~ CO Vista Circle, 43420 - Google Maps Address 170 Vista Cir ~op~le Arroyo Grande, CA 93420 niiaRs yb bi °' ~. 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Or. 8/2y2007 12:34 P loft MEMORANDUM TO: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER SUBJECT: ITEM 8N SUPPLEMENTAL INFORMATION -LOS ROBLES DEL MAR DRAFT SUPPLEMENTAL EIR LETTER DATE: AUGUST 28, 2007 Please find attached the revised proposed letter with comments regarding the Los Robles Del Mar project draft supplemental EIR. Minor corrections have been included to clarify that the letter is in reference to the "DSEIR" rather then "DEIR." Please let me know if you have any questions. Attachment ~`~ OFFICE of the MAYOR August 28, 2007 Paul Hood Executive Officer. Local Agency Formation Commission 1042 Pacific Street, Ste. A San Luis Obispo, CA 93401 P.o. Box sso 214 East Branch Street Arroyo Grande, CA 93421 Phone: (805)473-6404 FAX: (805) 473.0386 E-Mail: agcity@arroyogrande.org Re: Los Robles Del Mar Annexation Draft Supplemental Environmental Impact Report Dear Mr. Hood, The City of Arroyo Grande has reviewed the Draft Supplemental Environmental Impact Report ("DSEIR' for the proposed Los Robles Del Mar Annexation (the "Project"). On behalf of the City, we respectfully submit the following comments: I. TESTING AND WELL INTERFERENCE As you know; the DSEIR indicates that 1) long term pumping tests were performed on LRDM well #2 from August 'OS to August '06; 2) a one month pumping test was performed in February '07; ,and that AG well #10 was tested by the City in January '07. The pump testing was performed primarily in order to determine interference between the deep aquifer and the shallow aquifer to determine impacts to the private domestic wells, which all draw from the shallow aquifer. In addition, interference between the LRDM and AG wells was observed. The results from the tests are indicated in pages V-12 to V-14 of the DSEIR. As the pumping tests demonstrate, interference was observed between the LRDM wells and the AG wells, however, the DSEIR (under Impact A-5) indicates that the amount of interference between the deep aquifer wells will not significantly hinder the ability of any of the wells to produce groundwater and therefore, the potential impact of mutual interference is considered to be insignificant. However, the results of the pumping tests are not accurately reflected in the DSEIR. In fact, AG well #10 is currently non-operational and the City of AG does not know the pumping capabilities of the well. During the pumping test, gravel was accidentally pumped through due to an oversized screen being installed. Once the well becomes operational hopefully within the near future, the City of AG does intend on extracting the highest possible yield from well #10; estimated to be over 100 afy. Fuethermore, no pumping tests were performed on LRDM wells #1 or #3, only recovery tests. No pump test was performed on AG well #9, only measurement of water levels. Again, potential interferences were determined to be insignificant, however, a full range of pumping tests was not performed. An accurate analysis of such interference cannot be made without coinprehensive testing. Moreover, City of AG data indicates that when LRDM wells are operating, AG well #9 incurs at least a 15% - 20% drop in water production. Such similar interference could easily carry over to AG well #10 once it is fully operational. II. CUMULATIVE IMPACTS TO THE DEEP AQUIFER The DSEIR misrepresents the total cumulative impact to the deep aquifer in terms of its safe yield and potential for overdraft condition. The cumulative impacts for the estimated safe yield for the deep aquifer do not take into account pumping from AG well #10 or the Tract 1998 wells; only AG well #9 was taken into account for the cumulative safe yield. Further, the estimated safe yield for the deep aquifer is 270 afy; the total cumulative draw from the deep aquifer is estimated to be 261 afy, however, that is assuming that: 1) AG does not increase its pumping with well #9 and does not pump from well #10;.2) that 270 afy is the correct safe yield of the deep aquifer; 3) that the l51 afy pumped from the LRDM wells is the actual amount that is pumped; and 4) that no water is ever pumped from the wells located on Tract 1998 (within the City of Arroyo Grande's limits). It should be noted that the PB Public Works Department indicated that the t51 afy is the minimum that will be pumped (see page V-19 of DSEIR). Additionally, this estimated safe yield amount assumes that inflows will be static and does not take into account drought conditions or other occurrences which may reduce the inflow of water to the deep aquifer. The fact that AG well #10 is not included in the cumulative impact calculation is a serious flaw in the DSEIR. While the City is in the process of correcting mechanical issues with AG well #1Q, the City believes that the well will have the ability to pump more than 100 afy, which it fully intends on extracting. With AG well #10 in the picture, the LRDM wells will only be able to extract 60 afy before an overdraft condition will occur. This is a far cry from the estimated min;mum of 151 afy. i .L R a . ) -: a w a Y x 7- k;' '. , , .t ,., -t ~ S 5 t .h k a rw ~ ~".~ Gi xs 1"~ 2 4 crt S e t 5.., .n (ti r'k .~ ~'^ 7 t~7 i 4 t s~~'t ~, . txi 6..H , , ~' ~ ms s ~ _` SUMMARY OF CUMUI:ATNE DRAW OF;THE;DEEPxA UIFER ~' `" , ;~~4y4 ~ ti v ,~1 :*~. " ~ ~ ~ d r li ~ ~ I ~ ~ ~ ~ ~ ~ ,. . .5 i k ! f. ~ ~ c ~. - a,.e . , uavr.. ... . _.,. ~... . a ., - - >k~ E WELL AFY PUMPED Ri titian Ve elation 20 a interce red LRDM # 1, #2 and #3 Cumulative estimated 151 a AG Well #9 100 a AG Well #10 Est. 100+ a Tract 1998 Well Est. 20 a r ~~~_ «, t ~ ~ ° , ~,, = To al la ioe C "~ ° 391 s`` `^ , tunu t = +~~~ . t a Tatallndicated in DSEIR 261 a Di ennce 130 a 2 III. Monitoring Program The proposed monitoring program is not an appropriate means of mitigation. A monitoring program will simply provide a check to ensure that pumping of the deep water wells does not exceed this 270 afy threshold, whereas, the exact pumping amount(s) are unknown and certain parries intend on and have clearly expressed an interest in increasing the amount that is pumped from their respective deep water wells. Additionally, as noted above, the analysis does not take into consideration the Ciry of AG's potential plans to pump water from a well located within Tract 1998, which also may extract water from the deep aquifer, or other domestic users that could potentially drill domestic wells into the deep aquifer. A monitoring program is not mitigation. CEQA not only requires impacts to be identified, but requires mitigation measures which actually mitigate that impact; the proposed monitoring program provides no such means. The Mitigation Measure for Impact A-2 misrepresents total extraction from the deep aquifer by the LRDM wells. Specifically, MM A-2 indicates: "Total extraction of groundwater from the deep aquifer via the LRDM wells #1, #2 and #3 after annexation of the LRDM site shall be restricted to the identi5ed safe yield of the deep aquifer (currently estimated at 270 afy)..." (emphasis added) The total extraction of groundwater from the deep aquifer must also take into account not only the current extractions from AG well #9, but the proposed extractions from AG well #10 and the wells within Tract 1998, with yields that are yet to be determined. Moreover, it should be noted that the LRDM wells are capable of pumping 240 afy; while it is their intention to monitor and limit their extraction amounts, the capability is there to extract substantially more than the safe yield, given AG well extractions. We hope that the significant issues surrounding the Project are evident and that, at this time, LAFCO determines that the DSEIR is inadequate, nor sufficient in its quest to identify, address and mitigate all potential impacts. It should be underscored that this supplemental DSEIR (1 of 3 environmental impact assessment documents), was prepared due to LAFCO's need for additional environmental documentation regarding water resources. This DSEIR blindly suggests that water related impacts are insignificant based off of incomplete and incorrect information and data. The significance and potential negative impact that this Project has on the area's water supply is evident through LAFCO's requirement of this supplemental DSEIR and the time and resources utilized in commenting on it by affected parties. Please keep in mind that the Ciry of Arroyo Grande is not opposed to the Project per se, but is seriously concerned with the water impacts of the Project and the current analysis set forth in the DSEIR. Thank you for your time and consideration and please call if you have any questions ox comments. Sincerely, Tony Ferrara Mayor cc: Mary Ann Reiss, Mayor of the City of Pismo Beach Timothy J. Carmel, Arroyo Grande City Attorney Don Spagnolo, Arroyo Grand Director of Public Works 4 10.a. MEMORANDUM TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER/~.~ SUBJECT: CONSIDERATION OF THE CITY'S DRAINAGE MASTER PLAN DATE: AUGUST 28, 2007 RECOMMENDATION: It is recommended the City Council approve the 2006 Drainage Master Plan. FUNDING: There are no costs at this time. Section VI of the draft 2006 Drainage Master Plan Update explains the methods of financing available to meet the future funding requirements for the proposed recommendations. The identified projects are prioritized and will be incorporated into the Capital Improvement Program. DISCUSSION: The Drainage Master Plan ("Master Plan") was first approved by the Council in 1999. This is the first update of the plan, which provides the City with a review and recommendations regarding the adequacy of its stormwater drainage infrastructure. Major components of the Master Plan include the following • A review of the area drainage patterns, • A review of the city's major creeks and flood plain management programs, • Identified drainage policy zones, • Drainage basin policies, • Best Management Practices for improvement of storm water quality, • Identification of drainage problems in the City, • Proposed capital improvement projects to correct City drainage problems. The City Council on August 8, 2006, authorized distribution of the draft Drainage Master Plan for public review and comment for a period of 60 days. The draft Master Plan was made available for review at City Hall, distributed to the County Library, the Home Builders Association of the Central Coast, and the Chamber of Commerce. In addition, the public was notified via the City's web site and through an advertised public notice. The public comment period for the Drainage Master Plan ended on October 7, 2006. No comments were received. The original 1999 Master Plan included 24 projects to address storm water and drainage issues. Projects that have been completed include: • Expand the Poplar Street Infiltration Basin, • Pike and Elm Street Intersection, • Tally Ho and Le Point Street Intersection, CITY COUNCIL CONSIDERATION OF THE CITY'S DRAINAGE MASTER PLAN AUGUST 28, 2008 PAGE2 • Pearwood Avenue Retarding Basin Overflow Ditch, • Stagecoach Road Underground Drainage System. The draft 2006 Drainage Master Plan also provides for an additional 15 projects, which primarily provide for oil and grease separators in existing facilities. The plan was originally considered at the August 8, 2006 City Council meeting. However, it was decided to address the Newsom Springs project separately and delay approval of the Plan until the Newsom Springs project recommendations were finalized. The Newsom Springs project EIR was approved at the July 24, 2007 meeting and has now been incorporated into the Plan, which consists of improvements in two phases. The Phase 1 improvements include a low flow bioswale and outfall to release storm water at a non-erosive velocity and with a minimum of sediment, a collection area upstream of the bioswale to de-silt and slow stormwater, and a storm drain to intercept runoff that historically moved west causing flooding. Phase II of the project includes a storm drain from the mouth of Newsom Springs Canyon crossing the Dixson road to connect with the Phase 1 improvements. The diagonal route joins the Phase 1 improvements at the first culvert and continues diagonal across the Dixson Ranch connecting to the Cherry Creek project bioswale and creek outfall. Prior discussion also involved performing environmental review of the entire master plan. However, after additional staff review, it is recommended that this is not necessary at this time. Environmental review will be performed for each project prior to construction, which precludes the need to perform an environmental review of the entire document. The document is intended to be only an overview of targeted projects. ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Approve staffs recommendations; - Do not approve staff s recommendations; - Modify as appropriate and approve staffs recommendations; or - Provide direction to staff Attachment: - Drainage Master Plan (on file in the Public Works Department and Administrative Services Department for public review)