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Minutes 2009-10-27 MINUTES REGULAR MEETING OF THE CITY COUNCIL/REDEVELOPMENT AGENCY TUESDAY, OCTOBER 27, 2009 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor /Chair Ferrara called the Regular City Council /Redevelopment Agency meeting to order at 7:05 p.m. 2. ROLL CALL City Council /RDA: Council /Board Member Chuck Fellows, Council /Board Member Jim Guthrie, Mayor Pro TemNice Chair Joe Costello and Mayor /Chair Tony Ferrara were present. Council /Board Member Ed Arnold was absent. City Staff Present: City Manager Steven Adams, City Attorney Tim Carmel, Director of Legislative and Information Services /City Clerk Kelly Wetmore, Director of Administrative Services Angela Kraetsch, Chief of Police Steve Annibali, Fire Chief Michael Hubert, and Community Development Director Teresa McClish. 3. FLAG SALUTE Members of Cub Scout Pack 13, Den 8 led the Flag Salute. 4. INVOCATION Pastor Robert Banker, Open Door Church, delivered the invocation. 5. SPECIAL PRESENTATIONS None. 6. AGENDA REVIEW 6.a. Ordinances Read in Title Only. Council Member Fellows moved, Mayor Pro Tem Costello 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. 7. CITIZENS' INPUT. COMMENTS, AND SUGGESTIONS None. 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. John Keen, N. Elm Street, referred to Item 8.j. and expressed concern about the seriousness of the status of the City's groundwater supply and testing results. He suggested the Council pull the item from the consent agenda to discuss the issue and emphasized the importance of educating the public about what is occurring, especially concerning potential seawater intrusion. Ed Ebee, Nipomo, agreed with Mr. Keen's comments regarding the importance of the matter and requested an oral presentation of the report. Minutes: City CounciURedevelopment Agency Meeting Page 2 Tuesday, October 27, 2009 No further public comments were received. Mayor Ferrara requested that Item 8.j. be pulled and requested the City Manager to provide a brief report. Mayor Pro Tem Costello requested that Item 8.g. be pulled for comments. Action: Council Member Guthrie moved, and Mayor Pro Tem Costello seconded the motion to approve Consent Agenda Items 8.a. through 8.n., with the exception of Items 8.g. and 8.j., with the recommended courses of action. City Attorney Carmel read the full title of the Ordinance presented for adoption in Item 8.n. The motion passed on the following roll -call vote: AYES: Guthrie, Costello, Fellows, Ferrara NOES: None ABSENT: Arnold 8.a. Cash Disbursement Ratification. Action: Ratified the listing of cash disbursements for the period October 1, 2009 through October 15, 2009. 8.b. Statement of Investment Deposits, Action: Received and filed the report listing the current investment deposits for the period of September 30, 2009. 8.c. Consideration of Approval of Minutes. Action: Approved the minutes of the Regular City Council /Redevelopment Agency Meeting of October 13, 2009. 8.d. Consideration of HIN1 Pandemic and Influenza Disease Plan. Action: Approved the H1 N1 Pandemic and Influenza Disease Plan. 8.e. Consideration of Acceptance of the Montego Street Hillcrest Drive Sidewalk Improvements Project, PW 2008 -07B. Action: 1) Accepted the project improvements as constructed by California Coastal Development Inc. in accordance with the plans and specifications for the Montego Street Hillcrest Drive Sidewalk Improvements Project; 2) Directed staff to file a Notice of Completion; and 3) Authorized release of the retention, thirty -five (35) days after the Notice of Completion has been recorded, if no liens have been filed. 8.f. Consideration of Acceptance of the 2009 Slurry Seal Project, PW 2009 -04. Action: 1) Accepted the project improvements as constructed by Graham Contractors Inc. in accordance with the plans and specifications for the 2009 Slurry Seal Project; 2) Directed staff to file a Notice of Completion; 3) Authorized release of the retention, thirty five (35) days after the Notice of Completion has been recorded, if no liens have been filed; and 4) Authorized an increase in the project expenditures of $2,294.94. 8.h. Consideration of Acceptance of the Corporation Yard Steel Repair Project, PW 2009 -05. Action: 1) Accepted the project improvements as constructed by Frank Calistro Inc. in accordance with the plans and specifications for the Corporation Yard Steel Repair Project; 2) Directed staff to file a Notice of Completion; and 3) Authorized release of the retention, thirty -five (35) days after the Notice of Completion has been recorded, if no liens have been filed. Minutes: City Council /Redevelopment Agency Meeting Page 3 Tuesday, October 27, 2009 8.i. Consideration of Authorization to Use City Property and Close City Streets for the Annual Arroyo Grande Strawberry Festival on May 29 and 30, 2010 and the Annual Strawberry Stampede; Temporary Use Permit No. 09 -018. Action: Adopted Resolution No. 4226 as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AUTHORIZING THE USE OF CITY PROPERTY AND CLOSURE OF CITY STREETS FOR THE ANNUAL ARROYO GRANDE STRAWBERRY FESTIVAL ON MAY 29 AND 30, 2010 AND THE ANNUAL STRAWBERRY STAMPEDE; TEMPORARY USE PERMIT NO. 09- 018 8.k. Consideration to Declare Surplus Property and Approve a Private Treaty Sale Agreement. Action: 1) Adopted Resolution No. 4227 as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DECLARING AN ITEM AS SURPLUS AND AUTHORIZING ITS SALE and 2) Authorized the City Manager to sign the Private Treaty Sale Agreement with Bill Phelps Auction Services. 8.1. Consideration of Amendments to the City of Arroyo Grande Storm Water Management Plan. Action: 1) Approved the City's participation in the Central Coast Regional Water Quality Control Board (RWQCB) and the Low Impact Development Center's Joint Effort Project for the development of Hydromodification Control Criteria methodology for the Central Coast Region pursuant to the RWQCB's October 20, 2009 letter; 2) Approved the City's participation in the collaborative program for local municipalities for the development of Best Management Practices (BMPs) for Public Education, Public Participation and Pollution Prevention; 3) Approved the incorporation of additional requirements set forth by the RWQCB in their letter of September 15, 2009 into the Storm Water Management Plan (SWMP); and 4) Authorized the City Manager to approve minor modifications to the SWMP as required by the RWQCB in response to annual reporting and Plan implementation. 8.m. Consideration to Approve Reimbursement of the Cost of the Storm Drain Erosion Mitigation to Arroyo View LLC. Action: Appropriated the expenditure of $20,175.83 from the City Drainage Facility Fund for the mitigation of erosion at the outlet of the existing 48" Storm Drain payable to Arroyo View LLC in accordance with the Reimbursement Agreement. 8.n. Consideration to Adopt an Ordinance Prezoning a 7.2 Acre Property Adjoining the City in the Vicinity of Pearwood Avenue for the Purposes of Annexation (DCA Case No. 09-001B). Action: Adopted Ordinance No. 614 as follows: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE PREZONING A 7.2 ACRE PROPERTY ADJOINING THE CITY IN THE VICINITY OF PEARWOOD AVENUE FOR THE PURPOSES OF ANNEXATION (DEVELOPMENT CODE AMENDMENT CASE NO. 09- 001B) ITEMS PULLED FROM THE CONSENT AGENDA 8.g. Consideration of a Resolution Approving Funding for Open Space Protection and Management to Match Grant Funds from the San Luis Obispo County Community Fire Safe Council Grant for Fuel Modification in the James Way Habitat Area and Approving the James Way Habitat Area Fuel Modification Project. Minutes: City Council /Redevelopment Agency Meeting Page 4 Tuesday, October 27, 2009 Recommended Action: 1) Approve the use of open space protection funds to match grant funds from the San Luis Obispo County Community Fire Safe Council; and 2) Approve the James Way Habitat Area Fuel Modification Project. Mayor Pro Tem Costello stated he wanted to bring this item to the attention of the public and commented that this is something the City has been working on with the Fire Safe Council for some time. He noted that the fuel modification project would commence in late November or December and will take two months to complete; that this was an opportunity for the City to clear a lot of the fire fuel that is in the James Way Habitat Area and will help prevent any kind of wildland fire from encroaching into the area; and that crews will be out there to reduce the fire load and clear the Habitat Area. Action: Mayor Pro Tem Costello moved, and Council Member Guthrie seconded the motion to approve Item 8.g. with the recommended courses of action. The motion passed on the following roll -call vote: AYES: Costello, Guthrie, Fellows, Ferrara NOES: None ABSENT: Arnold 8.j. Consideration of Groundwater Monitoring and Test Findings. Recommended Action: 1) Review groundwater monitoring and testing results; and 2) Direct staff to prepare recommendations to address water supply and potential seawater intrusion issues. City Manager Adams provided a brief summary of the staff report. He stated the City of Arroyo Grande participates with Oceano, Grover Beach, and Pismo Beach in a groundwater monitoring program and that recent testing on a series of sentry wells along the coast, primarily in the Oceano area, show chemicals that indicate potential seawater intrusion. He noted that a second round of testing verified those results and that seawater intrusion can be a serious issue and threat to the groundwater supply if left unchecked. He explained the City is taking this issue seriously and is meeting with the other agencies on a bi- weekly basis to identify immediate short and long range alternatives and measures to address this. He noted that City staff had already been working on a number of measures and that a more comprehensive, detailed report and recommendations would be forthcoming at the next regular Council meeting for discussion and consideration. Council Member Guthrie requested that staff send a letter to the County requesting them to take action to identify and reactivate the lost test well near Osos Flaco Lake or drill a new one in order to include data from that location. Mayor Ferrara commented that this issue has been on the table for quite some time and a series of meetings have been held with the other agencies on a regular basis. He stated that at a meeting a few days ago, there was discussion about the sentry wells and the one in particular that had not been tested. He said there was no way of telling when those chemicals entered into that well because there hadn't been regular testing. As a result, there was some concern about the validity of the data. He stated the groundwater issue is being taken very seriously and a number of different strategies are being reviewed to alleviate the current water issues. Minutes: City Council /Redevelopment Agency Meeting Page 5 Tuesday, October 27, 2009 Action: Council Member Guthrie moved, and Mayor Pro Tem Costello seconded the motion to approve Item 8.j. with the recommended courses of action. The motion passed on the following roll -call vote: AYES: Guthrie, Costello, Fellows, Ferrara NOES: None ABSENT: Arnold 9. PUBLIC HEARINGS: 9.a. Consideration of Use of State 2009 -10 Citizens Option for Public Safety Funds. Chief of Police Annibali presented the staff report and recommend the Council: 1) Approve the Chief of Police's recommendation to utilize the FY 2009 -10 Citizens Option for Public Safety (COPS) Funds to continue the multi -year program for the replacement and enhancement of the Police Department's radio communications equipment; and 2) Authorize the expenditure of $71,272 carried over from the City's FY 2008 -09 COPS Program. In response to a question by Council Member Guthrie, Chief Annibali stated that the multi -year program for the replacement and enhancement of the radio communications equipment started in 2005 -06 and that this would be the second and final phase of the program. In response to a question by Mayor Ferrara, Chief Annibali stated that the equipment is state -of- the -art and was designed to enable relocation to a new facility. Mayor Ferrara opened the public hearing, and upon hearing no public comments, he closed the public hearing. Council comments included support for the use of the COPS funds for the replacement and enhancement of the Police Department's radio communications equipment. Action: Mayor Pro Tem Costello moved to approve the Chief of Police's recommendation to utilize the FY 2009 -10 Citizens Option for Public Safety (COPS) Funds to continue the multi- year program for the replacement and enhancement of the Police Department's radio communications equipment; and to authorize the expenditure of $71,272 carried over from the City's FY 2008 -09 COPS Program. Council Member Fellows seconded, and the motion passed on the following roll call vote: AYES: Costello, Fellows, Guthrie, Ferrara NOES: None ABSENT: Arnold 9.b. Consideration of Centennial Plaza Project and a Purchase and Sale and Improvement Agreement for Acquisition of Property at 300 East Branch Street and Sale and Development of City Property at 200 and 208 East Branch Street and the Adjacent Parking Area. Recommended Action: 1) Approve the Centennial Plaza preliminary design concept; 2) Approve a contract with RRM Architects for final design of the Centennial Plaza project Minutes: City Council /Redevelopment Agency Meeting Page 6 Tuesday, October 27, 2009 for a not to exceed amount of $44,000; 3) Approve a Purchase and Sale and Improvement Agreement with NKT Commercial for acquisition of property at 300 East Branch Street, sale of City property at 200 East Branch Street, 208 East Branch Street and the parking area in between, development of a 5,700 square foot commercial building at Short Street and East Branch Street, and adaptive reuse of the 208 East Branch Street building; 4) Select Alternative #3 as the preferred alternative for the NKT Commercial proposed project; 5) Approve a Resolution adopting a Negative Declaration with Mitigation Measures; 6) Reject all bids for construction of a fire sprinkler system in the 300 East Branch Street building and direct staff to solicit new bids; and 7) Authorize the City Manager to execute documents to obtain debt financing of up to $1.2 million for costs associated with acquisition of the 300 East Branch Street property through the United States Department of Agriculture (USDA) Rural Development Community Facilities low- interest loan program. City Manager Adams recommended that this item be continued to a date certain, which would be the next regular City Council meeting of November 10, 2009, when all Council Members are expected to be present. Action: Council Member Guthrie moved to continue the item to the November 10, 2009 regular City Council meeting. Council Member Fellows seconded, and the motion passed on the following roll call vote: AYES: Guthrie, Fellows, Costello, Ferrara NOES: None ABSENT: Arnold 10. CONTINUED BUSINESS: 10.a. Consideration of New Police Station Project. [CC \RDA] Chief of Police Annibali presented the staff report and recommended the Council: 1) Approve the Police Station Schematic Design; 2) Authorize the City Manager to execute an Agreement for Architectural Services with BFGC Architects to prepare final design drawings and bid documents not to exceed $370,000; 3) Authorize the City Manager to execute an agreement for consultant services with A.M. Miller Company, Inc. not to exceed $25,000 to serve as the City's financial advisor with regard to a potential bond measure; 4) Direct staff to develop a public education program to solicit feedback regarding the project and potential June 2010 general obligation bond measure; and 5) Authorize the City Manager to submit final applications for California Investment Bank and USDA Rural Development Community Facilities low- interest loans. Craig Atkinson, bfgc Architects, presented an overview of the proposed Police Station schematic design, site plan, exterior view, exterior elevations, first floor plan, and second floor plan. Council /Board and staff comments and questions ensued concerning design, functional elements, features, cost estimates, economic trends and the current construction bid climate. Minutes: City Council /Redevelopment Agency Meeting Page 7 Tuesday, October 27, 2009 Mayor /Chair Ferrara invited comments from those in the audience who wished to be heard on the matter. John Keen, N. Elm Street, stated he was not in favor of the proposed location; however, he acknowledged that this location is a done deal. He referred to the property as being landlocked and suggested other alternatives, such as the potential for realigning Rodeo Drive in order to adjust the Police Station site to provide more usable space. He displayed an aerial view of the site with an example of how Rodeo Drive could be straightened. He further expressed concern with the conceptual exterior architectural design stating it was not an attractive building. He said that although the proposal may meet Development Code standards, it does not meet the intent of General Plan Land Use Policy Objective LU -12 concerning preservation of the City's rural, small town character. He also expressed concern that the Architectural Review Committee discussed trees and landscape buffers to soften the look of the building, but did not discuss any change to the building's design. Upon hearing no further public comments, Mayor /Chair Ferrara closed the public comment period. Council questions ensued regarding the existing Community Resource Center which could be incorporated into the new Police Station; the financial terms of the existing Fire Station bond and the proposed project costs and terms for issuance of a new bond; cost impacts to the City if the proposed bond measure did not receive voter approval; that funding from the Redevelopment Agency budget would be spent on design now to determine cost estimates and prepare bid documents; that if voter approval on the bond measure was not obtained, it would result in a delay of the project; that the proposed design schematic is a preliminary design concept which could be modified and come back for final design approval; concerns about traffic impacts if Rodeo were to be straightened and whether or not this option was feasible; acknowledgement that a new police facility is critically needed and that the interior design would accommodate the City for decades; that this is a standalone facility on W. Branch Street with no surrounding comparable buildings to design or build around; that this is a modern building that would be similar in architecture to other commercial buildings located farther north on W. Branch Street; some concern regarding the proposed bond measure and a suggestion that staff and the Council revisit the established project priorities for the local sales tax revenue as this public safety project is a much higher priority than other capital projects; that the proposal being recommended is the least expensive option; and an emphasis that there is a desire to see variations in the design of the exterior elevations. Action: Mayor Pro Tem Costello moved to: 1) Approve the Police Station Schematic Design; 2) Authorize the City Manager to execute an Agreement for Architectural Services with BFGC Architects to prepare final design drawings and bid documents not to exceed $370,000; 3) Authorize the City Manager to execute an agreement for consultant services with A.M. Miller Company, Inc. not to exceed $25,000 to serve as the City's financial advisor with regard to a potential bond measure; 4) Direct staff to develop a public education program to solicit feedback regarding the project and potential June 2010 general obligation bond measure; 5) Authorize the City Manager to submit final applications for California Investment Bank and USDA Rural Development Community Facilities low- interest loans; 6) Direct staff to investigate the potential to adjust the Police Station site by realigning Rodeo Drive; and 7) Direct staff to work with the Minutes: City Council /Redevelopment Agency Meeting Page 8 Tuesday, October 27, 2009 architect to provide exterior design alternatives for the Police Station building. Council Member Fellows seconded, and the motion passed on the following roll call vote: AYES: Costello, Fellows, Guthrie, Ferrara NOES: None ABSENT: Arnold Mayor Ferrara called a break at 8:55 p.m. The Council reconvened at 9:05 p.m. 11. NEW BUSINESS: None. 12. CITY COUNCIL REPORTS a. MAYOR TONY FERRARA: (1) San Luis Obispo Council of Governments /San Luis Obispo Regional Transit Authority (SLOCOG /SLORTA). SLOCOG /SLORTA had a brief hiatus. SLOCOG met on October 7 and discussed the Federal Economic Stimulus (competitive funding) grant applications that were submitted for the Santa Maria Bridge, Willow Road, and for Los Osos Valley Road Interchange which are unlikely to receive funding. Reported that the STIP funding would be non existent for the next few cycles, so funding availability for all the projects currently in the pipeline is unknown. Reported that an emergency allocation to Pismo Beach was approved for the Price Street bluff erosion /stabilization project around the area of the Shore Cliff Lodge tennis courts. Reported that SHA funds ($225,000) were approved for the expansion of the Halcyon Park and Ride lot to add 17 new spaces. Announced the State attempt to take an additional $1.19 billion in transit funding, the California Transit Authority (CTA) sued the State to recover the money, it was appealed to the State Supreme Court, a decision was made in favor of the CTA, and it is now going to the US Supreme Court. The West Branch Street Rehabilitation project was approved to receive American Recovery and Reinvestment Act (ARRA) funding. (2) South San Luis Obispo County Sanitation District (SSLOCSD). Discussed issues related to the expansion of the facility; looking at a secondary clarifier; meeting with County staff regarding their proposal to charge the District for a permit, which it has never been done before. (3) Brisco /Halcyon /Hwy 101 Interchange Project Subcommittee. Have not heard back from the consultant; will be scheduling a meeting in the next few weeks. (4) Recreation Center Subcommittee. This subcommittee is currently on hiatus and has discontinued regular meetings. (5) Other. Announced that the Centennial Steering Committee meets the last Wednesday of each month. b. MAYOR PRO TEM JOE COSTELLO: (1) Zone 3 Water Advisory Board. Met September 17`"; At that time, Lopez was at 50.8% capacity; have not seen figures since the recent rain. Announced that an update on the Habitat Conservation Plan will be provided at the November 19 Zone 3 Technical Advisory Committee meeting. Received a report on the Minutes: City Council /Redevelopment Agency Meeting Page 9 Tuesday, October 27, 2009 Treatment Plant upgrade project. Reported that raising the spillway project is still being considered. (2) Air Pollution Control District (APCD). Announced the deadline of December 31 for obtaining permits and registration for portable and auxiliary engines of 50hp or greater. (3) Fire Oversight Committee. Met at the beginning of October; reported that the OES engine went out as part of a strike team and is being staffed with personnel from various stations. Still working on the joint dispatch study. (4) Other. None. c. COUNCIL MEMBER JIM GUTHRIE: (1) South County Area Transit (SCAT). Implemented a .25 cent fare increase to $1.25; have experienced a drop in ridership of 7% over prior year, however, over the past quarter, there has been a significant increase. Reported that SCAT is facing funding cuts, however, SCAT came in $25,000 under budget for the year. Reported on marketing plan which currently does not have any funding to implement yet. (2) Community Action Partnership. Will be the lead agency for a proposed homeless campus in San Luis Obispo; will need approval by the Airport Board. (3) California Joint Powers Insurance Authority (CJPIA). No report. (4) SLO County 10 -Year Plan to End Homelessness Leadership Council. The County has put together a plan to hire a part-time contract agent to coordinate homeless services and to focus on coordinated funding opportunities and bringing the different agencies together to ensure that there are no duplicative efforts and to provide complete homeless services. (5) Tourism Committee. Unable to attend the last meeting; however, the Committee decided on a new logo design which should be unveiled soon. (6) Other. None. d. COUNCIL MEMBER ED ARNOLD: (ABSENT) (1) Integrated Waste Management Authority Board (IWMA). (2) Economic Vitality Corporation (EVC). (3) Other. e. MAYOR PRO TEM CHUCK FELLOWS: (1) County Water Resources Advisory Committee (WRAC). Unable to attend the last meeting; however, after reviewing the staff report, it appeared there was nothing relevant discussed relating to the City of Arroyo Grande. (2) Other. None. 13. CITY COUNCIL MEMBER ITEMS: None. 14. CITY MANAGER ITEMS: None. Minutes: City Council /Redevelopment Agency Meeting Page 10 Tuesday, October 27, 2009 15. COUNCIL COMMUNICATIONS: Council Member Fellows referred to the Air Pollution Control District's (APCD) program to replace wood burning fireplaces with a more efficient fireplace insert and reminded everyone that the process requires applying for a voucher to be eligible for the $250 incentive. He stated there is a limited amount of money available and to contact the APCD office directly for more information. Council Member Fellows also noted that the City is conserving water by rebating 50 cents per square foot for lawn removal and briefly explained the process for the program. Mayor Ferrara announced that the Christmas Parade in the Village would be held on November 29'" and encouraged all members of the City Council to participate with their families by riding in the same float and celebrating with the community. 16. STAFF COMMUNICATIONS: City Manager Adams announced that the next few Council meeting agendas will be heavy; however, staff has made efforts to distribute the items evenly. City Manager Adams reported on the progress to identify a homeless campus in South County and the formation of a non -profit organization, 5- Cities Coalition, for this purpose. He reported that recently the San Luis Obispo Community Foundation came upon a fairly sizable endowment specifically for homeless services, and meetings will be held to coordinate efforts related to this matter. 17. COMMUNITY COMMENTS AND SUGGESTIONS: None. 18. ADJOURNMENT Mayor /Chair Ferrara adjoumed the meeting at 9:25 p.m. e�tta w Tony errar rlChair ATTEST: id ILI1,iuvuL Kelly Vci a ore, ity p�� Clerk/Agency Secretary (Approved at CC Mtg 11 /0 200g