Minutes 2017-03-28 ACTION MINUTES
REGULAR MEETING OF THE CITY COUNCIL
• TUESDAY, MARCH 28, 2017.
COUNCIL CHAMBERS, 215 E. BRANCH STREET
ARROYO GRANDE, CALIFORNIA
1. CALL TO ORDER
Mayor Hill called the Regular City Council Meeting to order at 6:0Q p.m.
2. ROLL CALL
City Council: Council Members Caren Ray, Barbara Harmon, Kristen Barneich, Mayor
Pro Tern Tim Brown and Mayor Jim Hill were present.
Staff Present: Interim City Manager Bob McFall, City Attorney Heather Whitham,
Director of Legislative and Information Services/City Clerk Kelly Wetmore,
Administrative Services Director Debbie Malicoat, Community
Development Director Teresa McClish, Public Works Director Geoff
English, Acting Police Chief Beau Pryor, Five Cities Fire Authority Fire
Chief Steve Lieberman, and Planning Manager Matt Downing.
3. MOMENT OF REFLECTION
4. FLAG SALUTE
Members of the Central Coast Exchange Club and Cub Scout Pack 13 led the Flag Salute.
5. AGENDA REVIEW
5.a. Closed Session Announcements.
Regular City Council Meeting of March 14, 2017 -
a) •Conference with Legal Counsel — Existing Litigation pursuant to Government Code
Section 54956.9(d)(1):
Name of Case: Appeal of CaIPERS determination dated January 26, 2017,
(CaIPERS ID: 4633639204)
City Attorney Whitham announced that the City Council met in closed session on March 14,
2017 and no reportable action was taken.
5.b. Ordinances Read in Title Only.
Mayor,Pro Tern Brown moved, Council Member Barneich seconded, and the motion passed
unanimously that all ordinances presented at the meeting shall be read by title only and all
further readings be waived.
6. SPECIAL PRESENTATIONS
6.a. Honorary Proclamation Declaring the Month of April 2017 as "Month of the Child"
and "Child Abuse Prevention Month" and April 8, 2017 as "Day of the Child".
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Tuesday, March 28,.2017
Mayor Hill presented an Honorary Proclamation declaring the Month of April 2017 as "Month of
the Child" and "Child Abuse Prevention Month" and April 8, 2017 as "Day of the Child". Maddy
Quaglino, representing Child Care Planning Council, accepted the Proclamation.
6.b. Presentation by Arroyo Grande Public Art Committee/Arroyo Grande in Bloom —
An Update on Public Art in Arroyo Grande.
Trudy Jarratt provided a presentation on the status of public art in Arroyo Grande, introduced
the concept of crosswalk art, and suggested that the Council consider creation of a public art
maintenance set-aside fund during preparation of the upcoming budget.
7. CITIZENS' INPUT, COMMENTS, AND SUGGESTIONS
Mayor Hill invited public comment. Speaking from the public were Linda Osty, who offered an
invocation and announced that the Pismo Beach Rotary Club is selling tickets to the Melodrama
to raise funds for scholastic scholarships; Paul Rensler, Board Member of Atheist United,
announced that there would be a March for Science on April 22, 2017 and urged the Council to
support science in the community; and Patricia Price, spoke of the 2013 Grand Jury report
regarding South San Luis Obispo County Sanitation District audit and operations and further
spoke regarding the investigation of the Mayor.
8. INTERIM CITY MANAGER REPORT:
In response to a request by Interim City Manager McFall to move Item 12.a. up on the Agenda,
the Council unanimously agreed.
12.a. Consideration of a Resolution Confirming the Appointment of James Bergman as
City Manager for the City of Arroyo Grande
Interim City Manager McFall presented the staff report and recommended that Council adopt a
Resolution confirming the appointment of James Bergman as City Manager for the City of
Arroyo Grande and authorizing the Mayor to execute the employment agreement.
Mayor Hill invited public comment. Speaking from the public was Greg Steinberger, in support of
the appointment of Mr. Bergman as City Manager.
Action: Council Member Ray moved to adopt a Resolution entitled: "A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPOINTING JAMES BERGMAN AS
CITY MANAGER FOR THE CITY OF ARROYO GRANDE AND AUTHORIZING THE MAYOR
TO EXECUTE THE EMPLOYMENT AGREEMENT". Mayor Hill seconded, and the motion
passed on the following roll-call vote:
AYES: Ray, Hill, Harmon, Barneich, Brown
NOES:- None
ABSENT: None
9. CONSENT AGENDA
Council Member Ray requested that Item 9.m. be pulled.
Mayor Hill invited public comment on the remaining consent agenda items. No public comments
were received.
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Tuesday, March 28, 2017
Mayor Hill referred to Item 9.e. and acknowledged Kevin Delaney's appointment as a member
of the Downtown Parking Advisory Board.
Action: Council Member Barneich moved, and Council Member Harmon seconded the motion
to approve Consent Agenda Items 9.a. through 9.1., with the recommended courses of action.
The motion passed on the following roll-call vote:
AYES: Barneich, Harmon, Ray, Brown, Hill
NOES: None
ABSENT: None
9.a. Consideration of Cash Disbursement Ratification.
Recommended Action: Ratified the listing of cash disbursements for the period March
1, 2017 through March 15, 2017
9.b. Consideration of Statement of Investment Deposits.
Recommended Action: Received and filed the report listing of investment deposits of
the City of Arroyo Grande, as of February 28, 2017, as required by Government Code
Section 53646(b).
9.c. Consideration of Sole Source Purchase for Plymovent Diesel Exhaust Removal
System.
Recommended Action: Approved a sole source purchase with Air Exchange for a
Plymovent diesel exhaust removal system and authorize the Interim City Manager to
execute any required documents. - -
9.d. Consideration of Approval of Minutes.
Recommended Action: Approved the minutes of the Special City Council Meeting of -
March 11, 2017 and the Regular City Council Meeting of March 14, 2017, as submitted.
9.e. Consideration of Council Appointment to Downtown Parking Advisory Board.
Recommended Action: Approved the appointment of Kevin Delaney to the Downtown
Parking Advisory Board.
9.f. Consideration of Temporary Use Permit No. 17-002; Regarding Street Closures for
the Amgen Tour of California Bike Race on Tuesday, May 16, 2017.
Recommended Action: Adopted a Resolution entitled: "A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING TEMPORARY
USE PERMIT CASE NO. 17-002; AUTHORIZING STREET CLOSURES AND
RELATED ACTIONS FOR THE AMGEN TOUR OF CALIFORNIA BIKE RACE;
APPLIED FOR BY AEG CYCLING, LLC".
9.g. Consideration of the 2016 General Plan Annual Report.
Recommended Action: Reviewed and accepted the 2016 General Plan Annual Report
and direct staff to forward the Report to the Governor's Office of Planning and Research.
9.h. Monthly Water Supply and Demand Update.
Recommended Action: Received and reviewed the monthly Water Supply and
Demand Report.
9.i. Consideration of Award of a Contract for the Plumbing Retrofit Program.
Recommended Action: 1) Awarded the contract for the Plumbing Retrofit contract to
Waterboys Plumbing, Inc. in the amount of $90,695.00; 2) Authorized the Mayor to
execute the contract; and 3) Directed staff to issue the Notice of Award and Notice to
Proceed along with other necessary contract documents.
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Tuesday, March 28, 2017
9.j. Consideration to Declare Surplus Property.
Recommended Action: Adopted a Resolution entitled: "A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF ARROYO GRANDE DECLARING AN UNUSED VEHICLE,
FURNITURE AND EQUIPMENT AS SURPLUS PROPERTY AND AUTHORIZING ITS
SALE OR DISPOSAL".
9.k. Consideration of Acceptance of the 2016 Street Repairs Project, PW 2016-03.
Recommended Action: 1) Accepted the project improvements as constructed by R.
Burke Corporation in accordance with the plans and specifications for the 2016 Street
Repairs Project; 2) Directed staff to file a Notice of Completion, and 3) Authorized
release of retention, thirty-five (35) days after the Notice of Completion has been
recorded, if no liens have been filed.
9.1. Consideration of Approval of a Contractor Services Agreement for Traffic Signal
Maintenance and Operation Services.
Recommended Action: Approved and authorized the Mayor to execute a Contractor
Services Agreement with Lee Wilson Electric Company in the amount of $36,360 for
Traffic Signal Maintenance and Operation Services.
ITEMS PULLED FROM THE CONSENT AGENDA
9.m. Consideration of Submission of a Comment Letter to the County of San Luis
Obispo Regarding the 2014-16 Resource Summary Report - Public Review Draft.
Recommended Action: Authorize the Mayor to sign the comment letter regarding the
County of San Luis Obispo 2014-16 Resource Summary Report Public Review Draft and
Golden State Water Company's advice letter to the Public Utilities Commission.
In response to questions from Council Member Ray, Public Works Director English confirmed
that Nipomo Community Services District's (NCSD) plan is to use the extra 3,000 feet to
account for new development within NCSD and that he would amend the letter accordingly.
Mayor Hill invited public comment. Speaking from the public was Brad Snook, expressing the
importance of this item and the ongoing conflict and noted that the public is unaware of the
issues that keeps us in conflict and urged solid messaging No further public comments were
received.
Action: Council Member Ray moved to authorize the Mayor to sign the comment letter
regarding the County of San Luis Obispo 2014-16 Resource Summary Report Public Review
Draft and Golden State Water Company's advice letter to the Public Utilities Commission, as
amended. Council Member Brown seconded, and the motion passed on the following roll-call
vote:
AYES: Ray, Brown, Harmon, Barneich, Hill
NOES: None
ABSENT: None
10. PUBLIC HEARINGS
- 10.a. Consideration of Development Code Amendment 16-003; An Ordinance Amending
Section 16.44.050 of the City of Arroyo Grande Municipal Code Regarding
Floodplain Management; Location —Citywide; Applicant— City of Arroyo Grande.
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Tuesday, March 28, 2017
Community Development Director McClish introduced the item. Planning Manager Downing
presented the staff report and recommended that the Council introduce an Ordinance amending
Section 16.44.050 of the City of Arroyo Grande Municipal Code regarding floodplain
management.
Mayor Hill opened the public hearing. No comments were received, and the public hearing was
closed.
City Attorney Whitham read the full title of the proposed Ordinance as follows: "AN
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING
SECTION 16.44.050 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING
FLOODPLAIN MANAGEMENT".
Action: Mayor Pro Tern Brown moved to introduce the Ordinance as read in title by the City
Attorney Council Member Barneich seconded, and the motion passed on the following roll-call
vote:
AYES: Brown, Barneich, Ray, Harmon, Hill
NOES: None
ABSENT: None
10.b. Consideration of the Formation of a Groundwater Sustainability Agency in
Compliance with the Sustainable Groundwater Management Act of 2014.
Public Works Director English presented the staff report and recommended that the Council: 1)
Adopt a Resolution directing the formation of a Groundwater Sustainability Agency (GSA) over -
the non-adjudicated portion of the Santa Maria Groundwater Basin within the Arroyo Grande
City limits in compliance with the Sustainable Groundwater Management Act of 2014 (SGMA);
2) Appropriate $15,000 from the Water Fund to secure the services of a consulting firm to assist
City staff with the necessary Department of Water Resources requirements to form a GSA; and
3) Direct staff to work with the County of San Luis Obispo and any other GSA's over the Santa
Maria Groundwater Basin Fringe Areas to prepare a Memorandum of Agreement for the
management of the subject basin. Staff responded to questions from Council.
Mayor Hill opened the public hearing. Speaking from the public were Brad Snook, who asked if
there was a water study for the groundwater areas outside of the adjudicated basin, stated that
there are urban water users north of Hwy 101 and that 5% of the users are in the unadjudicated
basin, stated he would like clarification on the percentage of citizens in Arroyo Grande that are
not urban water users in the non-adjudicated basin, asked if it would make sense to move the
whole City into the adjudicated basin area; and Keith Storton, commented that his development
uses a portion of the well and that residents have expressed concern regarding the costs
associated with not forming a GSA. No further comments were received, and Mayor Hill closed
the public hearing. Staff responded to the additional questions raised by the public.
Action: Council Member Harmon moved to: 1) adopt a Resolution entitled: "A RESOLUTION
OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE, COUNTY OF SAN LUIS
OBISPO ADOPTING AND DIRECTING THE FORMATION OF A GROUNDWATER
SUSTAINABILITY AGENCY (GSA) OVER THE NON-ADJUDICATED PORTION OF THE
SANTA MARIA GROUNDWATER BASIN WITHIN THE ARROYO GRANDE CITY LIMITS IN
•
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Tuesday, March 28, 2017
COMPLIANCE WITH THE SUSTAINABLE GROUNDWATER MANAGEMENT ACT OF 2014",
2) appropriate $15,000 from the Water_Fund to secure the services of a consulting firm to assist
City staff with the necessary Department of Water Resources requirements to form a GSA; and
3) direct staff to work with the County of San Luis Obispo and any other GSA's over the Santa
Maria Groundwater Basin Fringe Areas to prepare a Memorandum of Agreement for the
management of the subject basin. Council Member Ray seconded, and the motion passed on
the following roll-call vote:
AYES: Harmon, Ray, Barneich, Brown, Hill
NOES: None
ABSENT: None
Mayor Hill called for a break at 7:45 p.m. The Council reconvened at 7:55 p.m.
11. OLD BUSINESS
None.
12. NEW BUSINESS
12.b. Consideration of Fiscal Year 2017-18 Pre-Budget Discussion.
Interim City Manager McFall and Administrative Services Director presented the staff report and
recommended that the Council receive information and provide direction to staff for the
preparation of the Fiscal Year 2017-18 Budget regarding: 1) Status quo budget concept; 2)
Updating the fund balance policy for the General Fund; 3) Opportunities for policy or procedural
shifts in responsibility; -4) Reaffirm City Council Goals, and 5) Future consideration of
accelerated funding of CaIPERS liabilities.
Mayor Hill invited public comment. No public comments were received.
Council Member Barneich provided the following comments.
• Interested in options for accelerated funding of CaIPERS liabilities and stated Option 1
(making extra principal payments when funding is available) appears to be the best
option;
• Supports the current fund balance policy for the General Fund, but would recommend
implementing more detail and guidelines; -
• Supports status quo budget concept;
• Would be interested in considering opportunities for policy or procedural -shifts in
responsibility but would like more information and discussion on this topic;
• Reaffirm City Council Goals: Acknowledged completion of user fee study which will
improve cost recovery on services, supported focused parking study for Grand Avenue,
but not for the whole City, commented that the City is nearing build-out, and emphasized
the need to focus on economic development.
- Mayor Pro Tern Brown provided the following comments:
• Supported status quo budget concept;
• Stated it is premature for changing the fund balance policy for the General Fund until
other priorities are set. Wants to work on goals first, and then adjust the policy to fit the
goals;
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Tuesday, March 28, 2017
• Not in favor of considering policy or procedural shifts in responsibility at this time;
• Supported accelerated funding of CaIPERS liabilities;
• City Council Goals: policy for support of City infrastructure is important and should be at
the top of the list; acknowledged that the City has already improved cost recovery
services; commented that the City should always be working to retain and attract
employees regardless of budget status; commented that the City needs to get the
environmental document for the Brisco Interchange project out for public review and it
needs to be a priority before funding is lost; stated that water security is a nebulous goal
right now; enhanced parking is an ongoing City goal; stated that cost-effective fire
service is a priority and commented that the Fire Authority should be a stand-alone fire
service with its own budget and assets; and stated that improving financial sustainability
through economic development is a top priority and he would like to see the
development process streamlined and still maintain quality of life issues.
Council Member Ray provided the following comments:
• Commented on Council goals and acknowledged those that have been completed,
acknowledged that they will need to be reviewed and revised accordingly because most
of them have already been completed or circumstances have changed;
• Would like to see more discussion on options for accelerated funding of CaIPERS
liabilities;
• Does not want to consider any policy or procedural shifts in responsibility at this time;
• Would like to set goals first before updating the fund balance policy for the General
Fund;
• Supported status quo budget concept;
• Would like to add discussion on the roads issue.
Council Member Harmon provided the following comments:
• Would like to see more focus on economic development in the Community Development
Department;
• Would like to review and evaluate use of consultants (critical versus non-critical), and re-
visit at the 2-year budget cycle; supports use of consultants that result in increased
revenue;
• Would like more information on all three strategies for accelerated payments to
CaIPERS regarding unfunded liability and acknowledged as a high priority;
• Supports status quo budget concept, including extra scrutiny on any new hiring, with the
exception of certain positions that might need to be considered as contract;
• May be premature for policy or procedural shifts in responsibility — there may be
opportunities and doesn't want to overlook them, might need to be looked at and
expanded to focus solely on sports or recreation programs that can be contracted out;
• Strategic planning and community engagement - would like to look into developing an
online survey (such as survey monkey tool) to survey and incorporate the community's
priorities for the FY 2018-19 budget preparation;
• Prioritizing Infrastructure maintenance needs and set aside fund for roads, drainage,
water and sewer;
• Reserve fund balance policy -would like to see a percentage of funds over the 20% goal
to be deferred to the set aside funds for infrastructure, PERS, or both; and establish
criteria for use of one-time windfalls, and to be aware of critical needs so that funds can
be allocated to those needs,
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Tuesday, March 28, 2017
• There is an opportunity for some transfer of responsibility for business inspections, fire
plans, and other inspections to the Five Cities Fire Authority; .r,.
" • Affirm City Council Goals to support City infrastructure, retain and attract employees;
make decision about Brisco Interchange Project; favors parking study if it is more
focused and not the whole City, maintain cost effective fire service, and maximize
revenue generation by replacing the goal to "improve financial sustainability through
economic development" with "Engage in an expedient plan check process that assures
ongoing development projects are processed without delay". Eliminate completed goals
including improving cost recovery on services and increasing water security.
Mayor Hill provided the following comments:
• Supported status quo budget concept — would like to see as much as we can devote to
set asides for maintenance and repair work, water recycling, and the warming shelter;
• Stated the General Fund Balance policy is good, but commented that having reserves
over 20% over the fund balance goal means that we are not spending for infrastructure
maintenance needs;
• Suggested opportunities for consolidating recreation services with other jurisdictions and
collaboration for police services or building inspections;
• Reaffirmed City Council Goals — glad to hear about the parking study being worked into
the E. Grand corridor; emphasized the need for full cost recovery to eliminate subsidies;
• Would support a 30 year payoff strategy for CaIPERS liabilities without any other
acceleration because it is a moving target —would rather spend money on infrastructure
improvements where we can see a return on investment and not having to spend more
down the road;
• Would like to identify in advance infrastructure projects that can benefit from one time
windfalls the City receives;
• Suggested a need for a dedicated economic development position.
No formal action was taken on this item.
13. CITY COUNCIL REPORTS
The Mayor and Council Members provided brief reports from the following committee,
commission, board, or other subcommittee meetings that they attended as the City's appointed
representative.
(a) MAYOR HILL:
(1) South San Luis Obispo County Sanitation District (SSLOCSD)
(2) Brisco/Halcyon Interchange Subcommittee
(3) Oversight Board to the Successor Agency to the Dissolved Arroyo
Grande Redevelopment Agency
(4) Other: League of California Cities
(b) MAYOR PRO TEM BROWN:
(1) San Luis Obispo Council of Governments/Regional Transit Authority
(SLOCOG/RTA)
(2) Integrated Waste Management Authority Board (IWMA)
(3) South County Transit (SCT)
(4) Brisco/Halcyon Interchange Subcommittee
(5) Other: Zone 3 Water Advisory Board (Alternate)
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- Tuesday, March 28, 2017
(c) COUNCIL MEMBER BARNEICH:
(1) Zone 3 Water Advisory Board
(2) Homeless Services Oversight Council (HSOC)
(3) Other
(d) COUNCIL MEMBER HARMON:
(1) County Water Resources Advisory Committee (WRAC)
(2) Air Pollution Control District (APCD)
(3) Five Cities Fire Authority (FCFA)
(4) Other
(e) COUNCIL MEMBER RAY:
(1) California Joint Powers Insurance Authority (CJPIA)
(2) Economic Vitality Corporation (EVC)
(3) Tourism Committee
(4) Other
14. COUNCIL COMMUNICATIONS
Council Member Ray requested that staff bring back on a future agenda a letter of support for
Assemblyman Cunningham's bill to provide funding for a study for Desalination at the Diablo
Power Plant. Council Member Brown concurred
15. COMMUNITY COMMENTS AND SUGGESTIONS
None.
16. CLOSED SESSION
At 10:54 p.m., City Attorney Heather Whitham announced the City Council would adjourn to
closed session to consider the following item:
a) CONFERENCE WITH REAL PROPERTY NEGOTIATORS pursuant to Government
Code Section 54956.8
- Property: 250 Wesley Street, Arroyo Grande (APNs 007-011-021 and 007-011-049)
Agency Negotiator: Teresa McClish, Community Development Director
Negotiating Party: Eric Knowles, Kidder Matthews
Under Negotiation: Price and Terms of Payment
At this time, it was noted that pursuant to Council policy, the Council must vote unanimously to
continue the meeting past 11:00 p.m.
Action: Council Member Ray moved, and Council Member Harmon seconded the motion to
continue the meeting past 11:00 p.m. The motion passed unanimously by voice vote.
Adjourned to closed session.
16. RECONVENE TO OPEN SESSION:
At 10:55 p.m., the Council reconvened to open session. City Attorney Whitham announced that
there was no reportable action.
•
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Tuesday, March 23, 2017
ADJOURNMENT
Mayor Hill adjourned the meeting at 11'39 p.m.
Jim ill, Mayor
.k TEST:
I / 662 `/a1,01 Q
Kelly 'i-trra .re, City Clerk
(Approved at CC Mtg y-//-?-0l7 )