Minutes 2018-04-10 ACTION MINUTES
REGULAR MEETING OF THE CITY COUNCIL/SUCCESSOR AGENCY TO THE
DISSOLVED ARROYO GRANDE REDEVELOPMENT AGENCY
TUESDAY, APRIL 10, 2018
COUNCIL CHAMBERS, 215 E. BRANCH STREET
ARROYO GRANDE, CALIFORNIA
1. CALL TO ORDER
Mayor/Chair Hill called the City Council Meeting to order at 6:00 p.m.
2. ROLL CALL
City Council/Board: Council/Board Members Barbara Harmon, Kristen Barneich and Tim
Brown, Mayor Pro TemNice Chair Ray, and Mayor/Chair 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, Associate Planner Kelly Heffernon, and
Five Cities Fire Authority Fire Chief Steve Lieberman.
3. MOMENT OF REFLECTION
4. FLAG SALUTE
Mike Drees, representing South County Historical Society, led the Flag Salute.
5. AGENDA REVIEW
5.a. Closed Session Announcements.
Special City Council Meeting of April 10, 2018:
a) CONFERENCE WITH LEGAL COUNSEL- EXISTING LITIGATION pursuant to
Government Code Section 54956.9(d)(1):
Name of Case: Santa Maria Valley Water Conservation District v. City of Santa
Maria, et al. and related actions, Santa Clara Superior Court, Case No. CV
770214.
City Attorney Whitham announced that the City Council met in closed session at a Special
Meeting on April 10, 2018 at 5:00 p.m. to discuss the above item, and that there was no
reportable action.
5.b. Ordinances Read in Title Only.
Council Member 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.
Minutes: City Council/Successor Agency Meeting Page 2
Tuesday, April 10, 2018
6. SPECIAL PRESENTATIONS
6.a. Proclamation in Recognition of the San Luis Obispo Museum of Art.
Mayor Hill presented a Proclamation recognizing the San Luis Obispo Museum of Art. Betsy
Keiser, representing San Luis Obispo Museum of Art, accepted the Proclamation and presented
a video of the museum.
6.b. Honorary Proclamation Declaring April 2018 as "Sexual Assault Awareness
Month".
Mayor Hill presented an Honorary Proclamation declaring April 2018 as "Sexual Assault
Awareness Month". Sebonay Campus and Jennifer MacMartin, representing RISE, accepted
the Proclamation.
7. COMMUNITY COMMENTS AND SUGGESTIONS
Mayor Hill invited public comment. Speaking from the public were Linda Osty, who offered an
invocation; Charles Barney, Oceano, regarding threats to groundwater resources and
contamination of the Santa Maria Groundwater Basin and urged the Council to insist that the
fringe areas remain part of the basin so that they can be under the authority of the Sustainable
Groundwater Management Act; Coleen Kubel, commented on an apparent Brown Act violation
by the Sanitation District due to a meeting that was held outside the jurisdiction of the Sanitation
District; Teresa Wolf, commented on the activities of the Coastal Thrivers organization for
sexual assault survivors; Patricia Price, commented on an apparent Brown Act violation by the
Sanitation District due to a meeting that was held outside the jurisdiction and improper noticing
of the meeting; Jim Bursheim, County Superintendent of Schools, thanked the Council for the
support of the Community Service Officer and spoke about a meeting that will be held to discuss
ways to be proactive in providing school safety and encouraged the Councils continued support;
Brad Snook, representing Surfrider Foundation, commented on the fracking initiative and
moratorium on new oil wells, and commented on issues relating to the Sanitation District,
including its apparent Brown Act violation; Shirley Gibson, Halcyon, commented on the apparent
Brown Act violation by the Sanitation District and inquired whether alternate meeting locations
had been sought out; Mary Lucey, Oceano, commented on issues relating to the Sanitation
District; and Patty Welsh, requested that the Council attend the Sanitation District meetings. No
further comments were received.
8. CITY MANAGER/DIRECTOR REPORT
8.a. Request for Discussion and Direction to Staff to Prepare a Letter to the County of
San Luis Obispo in Support of the 5Cities Homeless Coalition's Request for
Reconsideration of the Community Development Block Grant Allocations in the
2018 Action Plan Draft Allocations as it Relates to Funding for South County
Homeless Services.
City Manager Bergman provided background information regarding the 5Cities Homeless
Coalition's request that the County reconsider its CDBG funding allocations in the 2018 Action
Plan and requested direction from Council on sending a letter in support of the Coalition's
request.
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Tuesday, April 10, 2018
Mayor Hill invited public comment. Speaking from the public was Janna Nichols, representing
5Cities Homeless Coalition, who provided information and statistics regarding the increase in
homeless services over the prior year and responded to questions from Council.
Following brief discussion, the Council directed staff to send a letter to the County supporting
the 5Cities Homeless Coalition's request that the Board of Supervisors reconsider the funding
allocations in the 2018 Action Plan as it relates to providing more equitable funding in the South
County for homeless services.
City Manager Bergman announced that the draft project report and environmental documents
for the Brisco Road/Halcyon Interchange project have been signed and are available for public
review, and invited the community to a public workshop to be held on April 26, 2018 in the City
Council Chambers to review the project. He also reported that City staff met with students from
Arroyo Grande High School's Friday Night Live Club and County staff regarding the hazards of
secondhand smoke and potential updates to the Municipal Code to prohibit smoking in public
places.
9. CONSENT AGENDA
Council Member Brown requested that Items 9.c. and 9.i. be pulled; Council Member Barneich
requested that Item 9.e. be pulled; and Mayor Pro Tem Ray requested that Items 9.f. and 9.h.
be pulled.
Mayor Hill invited public comment on the consent agenda items. Speaking from the public was
Carol Florence, Oasis Associates, representing ELA Foods, stated that the applicant finds no
factual basis for the findings as presented in support of the denial with prejudice regarding
noise, traffic, and neighborhood compatibility; however, moving forward, and in the spirit of
collaboration, she noted that this evening the Council would be discussing disposition of this
property in closed session and requested the Council's consideration of correspondence sent to
the City Council. No further comments were received.
Action: Council Member Barneich moved, and Council Member Harmon seconded the motion
to approve Consent Agenda Items 9.a., 9.b., 9.d., 9.g., and 9.j., with the recommended courses
of action. The motion passed on the following roll-call vote:
AYES: Barneich, Harmon, Brown, Ray, Hill
NOES: None
ABSENT: None
9.a. Consideration of Cash Disbursement Ratification.
Action: Ratified the listing of cash disbursements for the period March 16, 2018 through
March 31, 2018.
9.b. Consideration of a Resolution Adopting the Amended and Restated 457 Deferred
Compensation Plan and Trust Document and Including Optional Provisions.
Action: Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ARROYO GRANDE TO ADOPT THE AMENDED AND RESTATED 457
DEFERRED COMPENSATION PLAN AND TRUST DOCUMENT AND INCLUDING
OPTIONAL PROVISIONS".
Minutes; City Council/Successor Agency Meeting Page 4
Tuesday, April 10, 2018
9.d. Consideration of Approval of Minutes.
Action: Approved the minutes of the Regular City Council Meetings of March 13, 2018,
and March 27, 2018, as submitted.
9.g. Consideration of Adoption of Resolutions Ordering the Preparation and Filing of
Annual Engineer's Reports for the Parkside Village Assessment District, Grace
Lane Assessment District, and Landscaping and Lighting District No. 1, within
Tract 1769, for Fiscal Year 2018-2019.
Action: Adopted Resolutions entitled: "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ARROYO GRANDE ORDERING THE PREPARATION AND FILING OF
THE ANNUAL ENGINEER'S REPORT FOR THE PARKSIDE VILLAGE
ASSESSMENT DISTRICT FOR FISCAL YEAR 2018-2019" "A RESOLUTION OF
THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ORDERING THE
PREPARATION AND FILING OF THE ANNUAL ENGINEER'S REPORT FOR THE
GRACE LANE ASSESSMENT DISTRICT FOR FISCAL YEAR 2018-2019"; and "A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE
ORDERING THE PREPARATION AND FILING OF THE ANNUAL ENGINEERS
REPORT FOR THE ARROYO GRANDE LANDSCAPING AND LIGHTING
ASSESSMENT DISTRICT NO. 1, WITHIN TRACT 1769, FOR FISCAL YEAR 2018-
2019".
9.j. Consideration of Amendment No. 1 to an Affordable Housing Agreement Between
the City of Arroyo Grande as Housing Successor Agency to the Dissolved Arroyo
Grande Redevelopment Agency and Habitat for Humanity for San Luis Obispo
County.
Action: 1) Approved Amendment No. 1 to the Affordable Housing Agreement to allow a
three (3) year time extension to commence the project; and 2) Authorized the Mayor to
sign the Amendment.
ITEMS PULLED FROM CONSENT AGENDA
9.c. Consideration of Subordination Agreement Between the City and Courtland-
Arroyo Grande, L.P.
Recommended Action: Approve and authorize the City Manager to execute a
Subordination Agreement between the City and Courtland-Arroyo Grande, L.P. to
facilitate refinancing of the project by the owners.
In response to a question by Council Member Brown regarding the status of the loan, City
Attorney Whitham acknowledged that the loan has been paid off, and provided clarification
regarding regulatory requirements that require the subordination agreement.
Action: Council Member Barneich moved, and Mayor Pro Tem Ray seconded the motion to
approve and authorize the City Manager to execute a Subordination Agreement between the
City and Courtland-Arroyo Grande, L.P. to facilitate refinancing of the project by the owners.
The motion passed on the following roll-call vote:
AYES: Barneich, Ray, Brown, Harmon, Hill
NOES: None
ABSENT: None
Minutes: City Council/Successor Agency Meeting Page 5
Tuesday, April 10, 2018
9.e. Consideration of Annual Report and Adoption of Resolution of Intention for Levy
of Annual Assessment for Arroyo Grande Tourism Business Improvement District.
Recommended Action: 1) Receive and approve the annual report of the Arroyo Grande
Tourism Business Improvement District (AGTBID) Advisory Board; 2) Adopt a
Resolution of Intention to levy and collect assessments within the AGTBID area for
Fiscal Year 2018-19 at the same rate as in Fiscal Year 2017-18; and 3) Set the date for
the public hearing for May 22, 2018.
Council Member Barneich referred to information in the annual report relating to marketing
activities for the Harvest Festival and expressed concern about the Festival becoming larger
than a small City festival.
Jocelyn Brennan, Arroyo Grande Grover Beach Chamber of Commerce Executive Director,
commented that last year's marketing activity for the Harvest Festival was limited to social
media posts, and stated that moving forward, the AGTBID Board would be looking for direction
from the Council regarding advertising of future events.
Action: Council Member Barneich moved, and Council Member Brown seconded the motion to
1) Receive and approve the annual report of the Arroyo Grande Tourism Business Improvement
District (AGTBID) Advisory Board; 2) Adopt a Resolution entitled: "A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF ARROYO GRANDE DECLARING ITS INTENTION TO
CONTINUE THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT, TO
CONTINUE THE BASIS FOR AND TO LEVY THE ASSESSMENT FOR THE DISTRICT, AND
TO SET A DATE FOR THE PUBLIC HEARING ON THE DISTRICT AND THE ASSESSMENT
FOR THE 2018-19 FISCAL YEAR; and 3) Set the date for the public hearing for May 22, 2018.
The motion passed on the following roll-call vote:
AYES: Barneich, Brown, Harmon, Ray, Hill
NOES: None
ABSENT: None
9.f. Consideration of a First Time Extension to the Contract with Waterboys Plumbing,
Inc. for the Plumbing Retrofit Program.
Recommended Action: 1) Approve the first time extension for the Plumbing Retrofit
contract to Waterboys Plumbing, Inc. in the amount of $76,895.00; and 2) Authorize the
Mayor to execute the time extension.
In response to questions by Mayor Pro Tern Ray regarding the numbers in the financial impact
section of the staff report, staff provided clarification that while the contract identifies a specific
dollar amount, the amount is based on an estimate of the retrofit activity that will occur,
explained that the City is contracting for a per unit price for specific services, that there is not a
guarantee that there will be a certain amount of retrofit activity during the course of the contract,
and that $76,895 is a not to exceed amount for the contract. Mayor Pro Tem Ray suggested
presenting financial information in a table format in the future.
Mayor Hill invited public comment. No public comments were received.
Minutes: City Council/Successor Agency Meeting Page 6
Tuesday, April 10, 2018
Action: Mayor Pro Tern Ray moved, and Council Member Barneich seconded the motion to: 1)
Approve the first time extension for the Plumbing Retrofit contract to Waterboys Plumbing, Inc.
in the amount of $76,895.00; and 2) Authorize the Mayor to execute the time extension. The
motion passed on the following roll-call vote:
AYES: Ray, Barneich, Brown, Harmon, Hill
NOES: None
ABSENT: None .
9.h. Consideration of Temporary Use Permit 18-005; Authorization for the Sale of Beer
and Wine at the 2018 Heritage Square Park Summer Concert Series Events and
Application Fee Waiver; Location — Heritage Square Park; Applicant — South
County Historical Society; Representative— Paul Provence.
Recommended Action: Adopt a Resolution approving Temporary Use Permit No. 18-
005 to allow the sale of beer and wine at the 2018 Heritage Square Park Summer
Concert Series and denying the request for an application fee waiver.
In response to concerns and questions by Mayor Pro Tern Ray regarding the sale of alcohol
during the Summer Concert Series, staff provided information regarding signage, compliance
with State Alcoholic Beverage Control (ABC) regulations, fencing, and monitoring and
enforcement related to alcohol consumption. Brief discussion ensued and Mayor Pro Tern Ray
suggested adding conditions to the permit to provide for a debriefing and evaluation following
the first few events and requiring a colored cup with the sale of alcohol in order to discourage
attendees from bringing alcohol into the event and to assist the event organizers with monitoring
and enforcement.
Mayor Hill invited public comment. Speaking from the public was Paul Provence, representing
South County Historical Society, who commented on signage that would be placed at the event
and also stated that if ABC requires fencing for the event, then they would not be able to
proceed with the sale of alcohol due to the high costs associated with temporarily fencing the
area. No further public comments were received.
Action: Mayor Hill moved, and Mayor Pro Tern Ray seconded the motion to adopt a Resolution
entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE
APPROVING TEMPORARY USE PERMIT NO. 18-005; AUTHORIZATION FOR THE SALE
OF BEER AND WINE AT THE 2018 HERITAGE SQUARE PARK SUMMER CONCERT
SERIES; APPLIED FOR BY THE SOUTH COUNTY HISTORICAL SOCIETY AND THE
ARROYO GRANDE ROTARY CLUB", as amended with the condition that a post event
debriefing with the Staff Advisory Committee be held after the first or second event as deemed
necessary by staff, and further, to require the use of easily identifiable cups. The motion passed
on the following roll-call vote:
AYES: Hill, Ray, Brown, Barneich, Harmon
NOES: None
ABSENT: None
Minutes: City Council/Successor Agency Meeting Page 7
Tuesday, April 10, 2018
9.i. Consideration of a Resolution Denying with Prejudice Conditional Use Permit 16-
008; Construction of an Approximately 2,650 Square-Foot Fast-Food Restaurant
with Drive-Thru; Location — 727 El Camino Real (Western Corner of El Camino
Real, Faeh Avenue, and Bell Street); Applicant— ELA Foods, Inc.; Representative—
Oasis Associates.
Recommended Action: Adopt a Resolution denying with prejudice Conditional Use
Permit 16-008.
Council Member Brown recused himself from voting on this item as he was absent from the
March 27, 2018 City Council meeting when the project was considered.
Action: Council Member Barneich moved, and Mayor Pro Tem Ray seconded the motion to
adopt a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE DENYING WITH PREJUDICE CONDITIONAL USE PERMIT 16-008;
LOCATED AT 727 EL CAMINO REAL; APPLIED FOR BY ELA FOODS, INC.'. The motion
passed on the following roll-call vote:
AYES: Barneich, Ray, Harmon, Hill
NOES: None
ABSENT: Brown (recused)
10. PUBLIC HEARINGS
None.
11. OLD BUSINESS
None.
12. NEW BUSINESS
Council Member Barneich announced she would recuse herself and step down for this item due
to a conflict of interest resulting from her position as a private citizen on the Board of the 5Cities
Homeless Coalition.
12.a. Consideration of a Request to Allocate $7,500 from the City's General Fund to the
5Cities Homeless Coalition to Assist with 2017-18 Warming Center Operations.
City Manager Bergman presented the staff report and recommended that the Council consider
appropriating $7,500 from the City's General Fund unappropriated fund balance to the 5Cities
Homeless Coalition to assist with their 2017-18 warming center operations.
Janna Nichols, representing 5Cities Homeless Coalition, reviewed the increased attendance,
costs, staffing, and services incurred this year at the warming center as compared to last year,
and responded to questions from Council.
Mayor Hill invited public comment. No public comments were received.
•
Minutes: City Council/Successor Agency Meeting Page 8
Tuesday, April 10, 2018
Action: Mayor Hill moved to appropriate a "not to exceed" amount of $7,500 from the City's
General Fund unappropriated fund balance to the 5Cities Homeless Coalition to cover the
shortfall. Mayor Pro Tem Ray seconded, and the motion passed on the following roll-call vote:
AYES: Hill, Ray, Brown, Harmon
NOES: None
ABSENT: Barneich (recused)
Council Member Barneich returned to the dais.
12.b. Consideration of Pavement Treatment Alternatives for the 2018 Street Repairs
Project, PW 2018-04.
City Attorney Whitham announced she would recuse herself from this item due to ownership of
real property in proximity to James Way and left the room.
Public Works Director Robeson presented the staff report and recommended that the Council
review alternative treatment options for the 2018 Street Repairs project and select Alternative 1,
digouts and overlay, as the preferred alternative. Staff responded to questions from Council.
Mayor Hill invited public comment. Speaking from the public was Kevin Tardiff, who
commented that he did not believe the 20 year plan would work, that a leach field is needed in
this area, and drainage issues need to be corrected.
Council comments ensued in support of Alternative 1; however, Mayor Hill expressed a
preference for Alternative 2 in order to do a full depth reclamation of the road due to its present
condition.
Action: Council Member Harmon moved to approve Alternative 1 (digouts and overlay) and add
that there is an investigation to leach lines or fields as part of that process, as the preferred
alternative. Council Member Barneich seconded, and the motion passed on the following roll-
call vote:
AYES: Harmon, Barneich, Brown, Ray
NOES: Hill
ABSENT: None
Mayor Hill called for a break at 8:37 p.m. The Council reconvened at 8:42 p.m.
12.c. Consideration of a Resolution Approving the City Council Handbook.
Director of Legislative and Information Services/City Clerk Wetmore presented the staff report
and recommended that the Council adopt a Resolution approving the City Council Handbook.
Mayor Hill invited public comment. No public comments were received.
Minutes: City Council/Successor Agency Meeting Page 9
Tuesday, April 10, 2018
Action: Mayor Pro Tern Ray moved to adopt a Resolution entitled: "A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING THE CITY COUNCIL
HANDBOOK". Mayor Hill seconded, and the motion passed on the following roll-call vote:
AYES: Ray, Hill, Barneich, Harmon
NOES: Brown
ABSENT: None
12.d. Consideration of a Voluntary Early Retirement Program.
City Manager Bergman introduced the item and Administrative Services Director Malicoat
presented the staff report and recommended that the Council approve the Voluntary Early
Retirement Program and appropriate up to $365,000 in unappropriated General Fund, Water
Fund and Sewer Fund balances to support the Program, depending on employee participation.
Staff responded to questions from Council.
Mayor Hill invited public comment. No public comments were received.
Action: Council Member Harmon moved to approve the Voluntary Early Retirement Program
and appropriate up to $365,000 in unappropriated General Fund, Water Fund and Sewer Fund
balances to support the Program, depending on employee participation. Mayor Hill seconded,
and the motion passed on the following roll-call vote:
AYES: Harmon, Hill, Brown, Barneich, Ray
NOES: None
ABSENT: None
13. COUNCIL COMMUNICATIONS
Council Member Brown referred to earlier public comments regarding the South San Luis
Obispo County Sanitation District, stated there were some misrepresentations stated, and
encouraged members of the City Council to attend the Sanitation District meetings.
Council Member Barneich announced that tickets are for sale for the Fiesta at Fin's fundraiser to
be held on May 1, 2018 from 5:00 to 9:00 p.m. She also announced the upcoming We Heart
AG volunteer event and stated that more volunteers are needed for maintenance activities
around the City.
Mayor Hill stated that the City submitted a letter to the South San Luis Obispo County Sanitation
District specifically asking for timeline and progress on its audit, reported that the auditor will be
present at the May 16, 2018 meeting to make the findings on the 2015-16 audit; and also
disputed several public comments made earlier in the meeting regarding the South San Luis
Obispo County Sanitation District.
14. COMMUNITY COMMENTS AND SUGGESTIONS
None.
Minutes: City Council/Successor Agency Meeting Page 10
Tuesday, April 10, 2018
15. CLOSED SESSION
At 9:19 p.m., City Attorney Whitham announced the Successor Agency would adjourn to closed
session to consider the following item:
SUCCESSOR AGENCY
a) CONFERENCE WITH REAL PROPERTY NEGOTIATOR pursuant to Government
Code Section 54956.8:
Property: APN: 006-151-027; Located at Faeh Avenue and El
Camino Real
Agency Negotiators: Debbie Malicoat, Finance Officer; Marty Indvik, Lee &
Associates
Negotiating Parties: ELA Foods, Inc.
Under Negotiation: Price and terms of payment for sale of property
Adjourned to closed session.
16. RECONVENE TO OPEN SESSION:
At 10:14 p.m., the meeting was reconvened to open session. City Attorney Whitham announced
that the Successor Agency voted 4-1, with Board Member Brown dissenting, to extend the
government approval contingency one year and to add a contingency requiring the buyer to
submit a pre-application directly to the City Council for a fully noticed meeting on the same.
17. ADJOURNMENT
Mayor/Chair Hill adjourned the meeting at 10:15 p.m.
J Hill, Mayor/Chair
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Kelly W,tm• 'e, City Clerk/Secretary
(Approved at CC Mtg 20 18 )