Minutes 2017-09-12 ACTION MINUTES
REGULAR MEETING OF THE CITY COUNCIL
TUESDAY, SEPTEMBER 12, 2017
COUNCIL CHAMBERS, 215 E. BRANCH STREET
ARROYO GRANDE, CALIFORNIA
1. CALL TO ORDER
Mayor Hill called the City Council Meeting to order at 6:00 p.m.
2. ROLL CALL
City Council: Council Members Caren Ray, Barbara Harmon, Kristen Barneich, Mayor
Pro Tem Brown, and Mayor Jim Hill were present.
Staff Present: City Manager Jim Bergman, City Attorney Heather Whitham, Director of
Legislative and Information Services/City Clerk Kelly Wetmore, Director of
Administrative Services Debbie Malicoat, Director of Community
Development Teresa McClish, Director of Public Works Bill Robeson,
Interim Director of Recreation Services Sheridan Bohlken, and Police
Chief Beau Pryor.
3. MOMENT OF REFLECTION
4. FLAG SALUTE
Members of Cub Scout Pack 13, Den 3, led the Flag Salute.
5. AGENDA REVIEW
5.a. Closed Session Announcements.
Regular City Council Meeting of August 22. 2017:
a) Conference with Labor Negotiator pursuant to Government Code Section 54957.6:
Agency Designated Representative: Debbie Malicoat, Administrative Services
Director
Represented Employees: Service Employees International Union, Local 620
City Attorney Whitham announced that the City Council met in closed session at a Regular
Meeting on August 22, 2017 to discuss the above item and that there was no reportable action.
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 Celebrating the 80th Anniversary of the Woman's Club
of Arroyo Grande.
Minutes: City Council Regular Meeting Page 2
Tuesday, September 12, 2017
Mayor Hill presented an Honorary Proclamation celebrating the 80th Anniversary of the
Woman's Club of Arroyo Grande. Debra Audet, President, accepted the proclamation.
7. COMMUNITY COMMENTS. AND SUGGESTIONS
Mayor Hill invited public comment. Speaking from the public were: Resident (did not state
name), Faeh Avenue, submitted photos of her neighborhood and expressed concerns about not
being notified of the proposed Popeye's drive-thru restaurant directly across the street from her
home and requested future notification of any meetings to be held on the project; Brad Snook,
spoke about the NCMA and its advisory groups and requested that the Council place on the
agenda an item to request that the technical groups keep minutes of their meetings to be
distributed amongst all the groups; Val Delaney, thanked the Fire Department for its response to
a fire at Sunrise Terrace Mobile Home Park and acknowledged that the use of the ladder truck
was very beneficial, commented on the Popeye's drive-thru restaurant as it relates to sales tax,
referred to the traffic study for the project and expressed concerns about the existing traffic
service levels; Matthew Guerrero, provided information on an upcoming Fair Political Practices
Commission training seminar to be held next Thursday at the Madonna Inn, and also
acknowledged the 16th anniversary of 9-11; Shirley Gibson, expressed concern with the color
scheme of the proposed Popeye's restaurant; Julie Tacker, referred to the South San Luis
Obispo County Sanitation District and stated that Arroyo Grande is a 45% shareholder and that
it is time that the communities consider either to divest and dissolve and give it over to the
County, have a five member board, or take away the community aspect and make it a District
with an elected Board, and also expressed concern about water waste and delay in the recycled
water project; Coleen Kubel, agreed that a three member board is not working for the Sanitation
District and commented that the Architectural Review Committee recommended several
changes to the proposed Popeye's restaurant that addressed the concerns expressed by the
community; and Otis Page, congratulated Council Members Ray and Barneich on their election
and Mayor Hill for his re-election to the Council, congratulated the Council for hiring Mr.
Bergman, and commended Mayor Hill for his service as Mayor. No further comments were
received.
Following community comment, Council Member Ray requested, and the Council concurred,
that all public noticing related to the proposed Popeye's restaurant be expanded beyond the
legal requirements to include all of the surrounding neighborhood property owners and tenants.
8. CITY MANAGER REPORT:
City Manager Bergman introduced Public Works Director Bill Robeson and Interim Recreation
Services Director Sheridan Bohlken and provided information on their educational and
professional backgrounds.
9. CONSENT AGENDA
Mayor Hill invited public comment on the consent agenda. No public comments were received.
Council Member Harmon requested Item 9.b. be pulled for a separate vote as she was absent
for the August 22nd meeting.
Action: Council Member Barneich moved, and Mayor Pro Tem Brown seconded the motion to
approve Consent Agenda Items 9.a. through 9.j., with the exception of Item 9.b., with the
recommended courses of action. The motion passed on the following roll-call vote:
Minutes:City Council Regular Meeting Page 3
Tuesday, September 12, 2017
AYES: Barneich, Brown, Ray, Harmon, Hill
NOES: None
ABSENT: None
9.a. Consideration of Cash Disbursement Ratification.
Action: Ratified the listing of cash disbursements for the period August 16, 2017
through August 31, 2017.
9.c. Consideration of Resolution Declaring Surplus Property.
Action: Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ARROYO GRANDE DECLARING CERTAIN PROPERTY AS SURPLUS
AND AUTHORIZING ITS DISPOSAL/SALE".
9.d. Consideration of Approval of an Exclusive Vendor Police Tow Service Agreement.
Action: Approved and authorized the City Manager to execute a two-year exclusive
vendor police tow service agreement with College Towing South of Grover Beach for
light-duty towing.
9.e. Consideration of Acceptance of the Manhole Rehabilitation Project, PW 2017-03.
Action: 1) Accepted the project improvements as constructed by SoCal Pacific
Construction Corporation in accordance with the plans and specifications for the
Manhole Rehabilitation Project, PW 2017-03; 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.f. Consideration of an Award of Contract to Souza Construction Inc. for
Construction of the 2017 Street Repairs Project, PW 2017-04.
Action: 1) Awarded a contract for the 2017 Street Repairs Project to Souza
Construction Inc. in the amount of $531,316; and 2) Authorized the City Manager to
approve change orders for 10% of the contract amount, $53,132 for unanticipated costs
during the construction phase of the project.
9.g. Consideration of an Award of Contract to American Asphalt South Inc. for
Construction of the 2017 Street Resurfacing Project, PW 2017-05.
Action: 1) Awarded a contract for the 2017 Street Resurfacing Project to American
Asphalt South Inc. in the amount of$171,524.71; and 2) Authorized the City Manager to
approve change orders for 10% of the contract amount, $17,152.47 for unanticipated
costs during the construction phase of the project.
9.h. Consideration of an Award of Contract to R. Burke Corporation for Construction
of the 2017 Concrete Repairs Project, PW 2017-06.
Action: 1) Awarded a contract for the 2017 Concrete Repairs Project to R. Burke
Corporation in the amount of$165,777; and 2) Authorized the City Manager to approve
change orders for 10% of the contract amount, $16,577 for unanticipated costs during
the construction phase of the project.
9.i. Consideration of an Appropriation of Funds to Replace a Variable Frequency Drive
at Lift Station No. 1.
Action: Appropriated $15,000 from the Sewer Fund for purchase and installation of a
new variable frequency drive at Lift Station No. 1.
9.j. Consideration of Approval of an Agreement for the Northern Cities Management
Area Annual Report and Monitoring Program.
Action: Approved and authorized the Mayor to execute an Agreement for Consultant
Services with GSI Water Solutions, Inc.
Minutes: City Council Regular Meeting Page 4
Tuesday, September 12, 2017
ITEMS PULLED FROM THE CONSENT AGENDA
9.b. Consideration of Approval of Minutes.
Recommended Action: Approve the minutes of the Regular City Council Meetings of
August 8, 2017 and August 22, 2017, as submitted.
Council Member Harmon noted that she would abstain from voting on the August 22, 2017
minutes as she was absent for that meeting.
Action: Council Member Barneich moved, and Mayor Pro Tem Brown seconded the motion to
approve Consent Agenda Item 9.b., with the recommended course of action. The motion
passed on the following roll-call vote:
AYES: Barneich, Brown, Ray, Harmon, Hill
NOES: None
ABSTAIN: Harmon (August 22, 2017 minutes only)
ABSENT: None
10. PUBLIC HEARINGS
None.
11. OLD BUSINESS
11.a. Consideration of Report of Investigation Resulting from the Independent
Investigation Jointly Authorized by the Arroyo Grande City Council and South San
Luis Obispo County Sanitation District Board of Directors Pertaining to Conduct
of Jim Hill in his Capacity as Mayor of Arroyo Grande and a Member of the Board
of Directors of the South San Luis Obispo County Sanitation District.
Recommendation: 1) Review the independent Report of Investigation prepared by S.K.
Nelson & Company under the direction of the law firm Liebert Cassidy Whitmore (LCW);
2) Consider waiving the attorney-client privilege and work product privilege related to the
confidential memorandum prepared by LCW providing their legal conclusions and
recommendations regarding the Report of Investigation; 3) Discuss options presented by
Shelline Bennett of LCW for possible action in response to the findings contained in the
Report of Investigation; and 4) Authorize additional funding to LCW to cover the cost of
the investigation and legal services.
City Manager Bergman provided introductory comments and introduced Shelline Bennett from
Liebert, Cassidy, Whitmore.
Ms. Bennett noted that a motion to waive the Attorney/Client privilege would need to be made if
the Council would like the presentation to include a discussion of Liebert, Cassidy, Whitmore's
legal conclusions and recommendations.
Action: Mayor Hill moved, and Mayor Pro Tem Brown seconded the motion to waive the
Attorney/Client privilege. The motion passed on the following roll-call vote:
Minutes:City Council Regular Meeting Page 5
Tuesday, September 12, 2017
AYES: Hill, Brown, Ray, Harmon, Barneich
NOES: None
ABSENT: None
The report was made available publicly. Ms. Bennett reviewed the report's legal conclusions
and recommendations and responded to questions from Council.
Mayor Hill noted for the record that he did not refuse to participate in the investigation and that
he had turned the matter over to his attorney as he was leaving on vacation.
Mayor Hill called for a break at 8:10 p.m. The Council reconvened at 8:20 p.m.
Mayor Hill invited public comment. Speaking from the public were: Stewart Jenkins, attorney
representing Mayor Hill, expressed concern that an elected official does not have due process
rights, referred to the letter that he submitted to the Council and addressed issues including the
alleged conflict of interest associated with the FTC letter, his inability to obtain the specific
charges and allegations against Mayor Hill, commented that Mayor Hill has been dedicated to
public transparency, asked the Council to use common sense in reviewing his letter against Mr.
Nelson's report to conclude that there was no wrongdoing, stated that everything Mayor Hill has
done has been within the legislative process, and responded to further questions from Council;
Julie Tacker, took issue with questions by Council regarding additional costs to review public
records, commented on her interview with the investigator and documents she provided, which
were not included in the documents she obtained, commented on the irrelevance of documents
that were reviewed, and stated the FTC letter issues was previously resolved; Colleen Kubel,
stated there were no definitive answers in the report and that the investigator did not do his due
diligence in the investigation; Matthew Gurerro, expressed concern about liability at the
Sanitation District and that Council action should be taken to make appropriate
recommendations to the Sanitation District to protect the City's ratepayers; Deborah Peterson,
Grover Beach, spoke as a Sanitation District ratepayer, commented that the Board Members
represent all District ratepayers, spoke in support and appreciation of Mayor Hill's service on the
Sanitation District Board, and asked why legal counsel did not ask for more money for the
investigation; Shirley Gibson, asked why over 3,000 records were requested, commented on the
hiring of the District's General Manager, and believed there was a conspiracy against Mr.
Hubner; Mary Lucey, Oceano, expressed concerns about Mayor Hill's actions and stated it must
come to a stop; Ron Holt, Arroyo Grande, spoke in support of Mayor Hill; Patricia Price, stated
she has followed Sanitation District business for the last five years, spoke of Mr. Clemons'
temporary management of the District, stated it was clear the new General Manager was not a
good fit, and spoke in support of Mayor Hill; Terry Claire, Oceano, acknowledged that people
care about the community and spoke in support of Mayor Hill; Brad Snook, commented he was
resentful of the investigation as he has asked for years for an independent investigation of
District operations, commented on the expanded scope of the investigation, and urged the
Council to move forward; Richard Kubel, spoke of gatherings at Francisco's Country Kitchen
and questioned Ms. Gibson's comments about overhearing the Mayor's conversations; Mike
Noble, Oceano, commented he has had breakfast at Francisco's when the Mayor is there and
has never heard him talk about City business; and Adam Verdin, commented on the significant
financial liability.
Minutes: City Council Regular Meeting Page 6
Tuesday, September 12, 2017
Action: Council Member Ray moved to recommend that the City adopt a new password policy
addressing password security; that the Mayor participate in specific one-on-one training with the
CJPIA; that the Mayor voluntarily step down from the Sanitation District Board and have the
Alternate member attend meetings; that the Sanitation District Board support and implement the
recommendations of Liebert Cassidy Whitmore; that the one-on-one training extend to the entire
Council; that a comparison of ethics and conduct policies between the City and District be
made; that a voluntary code of conduct for the City be adopted and signed by Council and
Commissioners; that an official policy of personal email use be approved; that a protocol for
Council communication with staff be adopted; and that an exploration of a job description or
expectations for Council and Commissions be considered. Council Member Harmon seconded,
and the motion. passed on the following roll-call vote:
AYES: Ray, Harmon, Barneich
NOES: Brown, Hill
ABSENT: None
Further discussion ensued regarding remaining costs for the investigation.
Action: Mayor Pro Tern Brown moved to authorize additional funding up to $25,000 to Liebert
Cassidy Whitmore to cover the cost of the investigation and legal services. Council Member
Ray seconded.
Prior to the vote, Mayor Hill invited public comment. Speaking from the public were: Julie
Tacker, stating that the additional expenses were unclear and requested that the Council ask
the Sanitation District to pay for at least half of the additional cost; and Patricia Price, expressed
confusion with the total cost of the investigation, and thought that the cost was going to be
shared with the Sanitation District.
The motion passed on the following roll-call vote:
AYES: Brown, Ray, Harmon, Barneich, Hill
NOES: None
ABSENT: None
12. NEW BUSINESS
None.
13. COUNCIL COMMUNICATIONS
Council Member Ray commented that she agreed with previous public comment regarding
minutes for all NCMA stakeholder groups. City Manager Bergman stated that this would not
work because of the ongoing water litigation.
Council Member Ray announced the Harvest Festival would be held on September 23`d and 24th
and that the Bakeoff will be held and urged all to get involved.
Mayor Pro Tern Brown announced that the Empty Bowls event will take place on September 13,
2017 at St. Patrick's Church. Council Member Barneich provided additional details regarding the
Empty Bowls event.
Minutes: City Council Regular Meeting Page 7
Tuesday, September 12, 2017
Mayor Hill noted the upcoming temporary overnight closure of Hwy 101 northbound at Traffic
Way and the associated detour route. He also reported that he attended the Eagle Scout
ceremony for Riley Betita that happened over the weekend.
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14. COMMUNITY COMMENTS AND SUGGESTIONS
At this time, Mayor Hill invited community comments and suggestions and public comment on
the closed session item. Speaking from the public was John Clemens, stating that comments
made about Mayor Hill taking sides were inappropriate and that when the Mayor was Chair, the
Sanitation District ran smoothly; Coleen Kubel, expressed concerns regarding the Mayor having
to step down from the Sanitation District Board; Julie Tacker, stated that Mayor Hill has been
the only one to review and make recommendations regarding the Sanitation District budget and
that she hopes Mayor Hill will choose not to step down; Patricia Price, agreed with the previous
speaker and commented on the efforts made by Mayor Hill to help the District; Debbie Peterson,
commented on the Knudsen investigation, passwords being compromised, and the cost of the
investigation; Shirley Gibson, responded to comments made by a previous speaker regarding
Francisco's; and Ron Holt, agreed with Mayor Pro Tern Brown's comments regarding the •
composition of the Sanitation District Board and the number of members on the Board and
commented that Liebert Cassidy Whitmore was already involved with the Sanitation District
previously regarding a personnel matter.
Council Member Ray stated that earlier comments made regarding email passwords were
erroneous and that the issue with passwords has already been dealt with.
Council Member Barneich stated that although she has not attended Sanitation District
meetings, she is watching them on the government access channel and Is very engaged.
15. CLOSED SESSION
None.
16. ADJOURNMENT
Mayor Hill adjourned the meeting at 10:54 p.m.
Ji Hill, Mayor
TEST:
W214Aieek—
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Kelly et p •re, City Clerk
(Approved at CC Mtg /0-/0-201 1 )