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Minutes 2010-11-23 MINUTES REGULAR MEETING OF THE CITY COUNCIUREDEVELOPMENT AGENCY TUESDAY, NOVEMBER 23, 2010 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor /Chair Ferrara called the Regular City Council meeting to order at 7:12 p.m. 2. ROLL CALL City Council /RDA: Council /Board Member Caren Ray, Council /Board Member Chuck Fellows, Council /Board Member Joe Costello, Mayor Pro TemNice Chair Jim Guthrie, and Mayor /Chair Tony Ferrara were present. City Staff Present: City Manager Steven Adams, City Attorney Tim Carmel, Director of Legislative and Information Services /City Clerk Kelly Wetmore, Chief of Police Steve Annibali, Community Development Director Teresa McClish, Fire Chief Mike Hubert, Building Official Johnathan Hurst, and Associate Planner Ryan Foster. 3. FLAG SALUTE Mayor Ferrara led the Flag Salute. 4. INVOCATION Pastor George Lepper, representing the Five Cities Fire Authority, delivered the invocation. 5. SPECIAL PRESENTATIONS None. 6. AGENDA REVIEW 6.a. Ordinances Read in Title Only. Council /Board Member Costello moved, Council /Board Member Fellows 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 Tim Moore, Fair Oaks Avenue, expressed concern that he had not yet received cost figures on the City Hall project; and stated that if NKT Commercial does not yet have a restaurant identified for the building being leased that the easement is not needed and the modifications to Short Street are not necessary. Henry Gonzalez, Arroyo Grande Meat Company, referred to the Short Street project and expressed concerns about the lack of parking on Saturdays in Olohan Alley and the negative impacts to his business as a result. He suggested moving the Farmers' Market over to the former JJ's Market location as it is not being used. He referred to special events in the Village and the number of people who attend and stated he has had to move his meat cutting operations away from the Farmers' Market on Saturday as a courtesy. Minutes: City Council /Redevelopment Agency Meeting Page 2 Tuesday, November 23, 2010 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, and upon hearing none, he closed the public comment period. City Manager Adams referred to the Supplemental Memorandum distributed to Council prior to the meeting regarding Item 8.e. and recommended continuing this item to the December 14, 2010 Regular City Council meeting. Council Member Ray requested Item 8.c. be pulled for corrections. Action: Council Member Fellows moved, and Mayor Pro Tem Guthrie seconded the motion to approve Consent Agenda Items 8.a., 8.b., and 8.d., with the recommended courses of action. The motion passed on the following roll -call vote: AYES: Fellows, Guthrie, Costello, Ray, Ferrara NOES: None ABSENT: None 8.a. Cash Disbursement Ratification. Action: Ratified the listing of cash disbursements for the period November 1, 2010 through November 15, 2010. 8.b. Statement of Investment Deposits. Action: Received and filed the report of current investment deposits as of October 31, 2010. 8.d. Consideration of Side Letters of Agreement Amending Arroyo Grande Police Officers' Association and Service Employees International Union Local 620 Memorandums of Understanding. Action: 1) Adopted Resolution No. 4322 as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING A FOURTH SIDE LETTER OF AGREEMENT TO THE ARROYO GRANDE POLICE OFFICERS' ASSOCIATION MEMORANDUM OF UNDERSTANDING "; and 2) Adopted Resolution No. 4323 as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING A FOURTH SIDE LETTER OF AGREEMENT TO THE SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL 620 MEMORANDUM OF UNDERSTANDING ". ITEMS PULLED FROM THE CONSENT AGENDA 8.c. Consideration of Approval of Minutes. Recommended Action: Approve the minutes of the Regular City Council Meeting of November 9, 2010, as submitted. Council Member Ray referred to page 3 of the minutes (Item 9.a.) concerning the traffic consultant's response to questions and stated that she believed it was Council Member Fellows asking the questions and not her. City Clerk Wetmore noted the correction. Minutes: City Council /Redevelopment Agency Meeting Page 3 Tuesday, November 23, 2010 Council Member Ray referred to page 6 of the minutes (Item 9.a.) and clarified several comments she had made regarding the project. City Clerk Wetmore noted the corrections and revised the comments as follows: - Stated that this is not a Spencer's Market versus Food 4 Less issue and explained that an alternate view was that we could be encouraging competition as it benefits everyone economically; - Stated Council must be careful not to try and regulate competition, that it is a slippery slope argument because once we regulate one then where do you draw the line; - Stated she has no problem with Food 4 Less itself; however, her issue is that whatever is built here will remain in perpetuity and the more square footage there is, the less flexible the usage so when there is turnover it is more difficult to find tenants; Action: Council Member Ray moved to approve Item 8.e., as amended. Council Member Costello seconded, and the motion passed on the following roll -call vote: AYES: Ray, Costello, Fellows, Guthrie, Ferrara NOES: None ABSENT: None 8.e. Consideration of Request for Lucia Mar Unified School District Irrevocable Offer of Dedication of Castillo Del Mar Right -of -Way. Recommended Action: Request from the Lucia Mar Unified School District an irrevocable offer of dedication for the Castillo Del Mar roadway extension property behind the high school. City Manager Adams recommended the Council continue this item. Action: Mayor Ferrara moved to continue Item 8.e. to the next Regular City Council meeting of December 14, 2010. Council Member Ray seconded, and the motion passed on the following roll -call vote: AYES: Ferrara, Ray, Costello, Fellows, Guthrie NOES: None ABSENT: None 9. PUBLIC HEARINGS: 9.a. Consideration of Use of State 2010 -11 Citizens Option for Public Safety (COPS) Funds. Police Chief Annibali presented the staff report and recommended the Council: 1) Approve the recommendation to utilize the FY 2010 -11 COPS funds to continue the multi -year program for the replacement and enhancement of the Police Department's radio communications equipment; 2) Authorize the expenditure of $189,877 carried over from the City's FY 2009 -10 COPS Program; and 3) Appropriate $1,734 in accrued interest. Minutes: City Council /Redevelopment Agency Meeting Page 4 Tuesday, November 23, 2010 Mayor Ferrara opened the public hearing, and hearing no comments, he closed the public hearing. Brief Council comments ensued in support of using COPS funds for communications equipment although there was some concern expressed about the proposed appropriation of accrued interest and that it should stay within the COPS fund. Director Kraetsch clarified that the interest does accrue within the COPS fund and is generally allocated for special department supplies which falls under the criteria for use of COPS funds. Action: Council Member Costello moved to: 1) Approve the Chief of Police's recommendation to utilize the FY 2010 -11 COPS funds to continue the multi -year program for the replacement and enhancement of the Police Department's radio communications equipment; 2) Authorize the expenditure of $189,877 carried over from the City's FY 2009 -10 COPS Program; and 3) Appropriate $1,734 in accrued interest. Council Member Ray seconded, and the motion passed on the following roll call vote: AYES: Costello, Ray, Fellows, Guthrie, Ferrara NOES: None ABSENT: None 9.b. Consideration of Development Code Amendment 10 -005; Amend Municipal Code Section 16.44.040 Regarding Allowed Uses in the Public /Quasi - Public (PF) Zoning District. Community Development Director McClish introduced an Ordinance to amend Section 16.44.040 of the Arroyo Grande Municipal Code regarding allowed uses in the Public/Quasi- Public (PF) zoning district. Mayor Ferrara opened the public hearing, and hearing no comments, he closed the public hearing. Action: Council Member Costello moved to introduce and read the title of an Ordinance as follows: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING DEVELOPMENT CODE AMENDMENT 10-005 TO AMEND SECTION 16.44.040 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING ALLOWED USES IN THE PUBLIC /QUASI- PUBLIC (PF) ZONING DISTRICT ". Council Member Fellows seconded, and the motion passed on the following roll call vote: AYES: Costello, Fellows, Ray, Guthrie, Ferrara NOES: None ABSENT: None 10. CONTINUED BUSINESS: 10.a. Consideration of an Encroachment Agreement between The City and NKT Commercial in Connection with the "Shops at Short Street" Project. Minutes: City Council/Redevelopment Agency Meeting Page 5 Tuesday, November23, 2010 Community Development Director McClish presented the staff report and recommended the Council approve an agreement to address indemnification, insurance and construction issues associated with the reconstruction of Short Street and offsite sewer improvements associated with the "Shops at Short Street" project. Staff responded to questions from Council regarding the estimated time length of the street closure; proposed Alternative 3; the outcome of the meeting with the businesses; whether options for working at night were discussed; and clarification concerning NKT Commercial's purchase of the property and associated deed restriction designating the small portion of abandoned right of way acquired for restaurant use only. Mayor Ferrara invited those in the audience who wished to comment on the matter. Carol Florence, representing NKT Commercial, spoke Henry Gonzalez, Arroyo Grande Meat Company, stated he had attended the meeting and expressed disappointment that many business owners did not attend; and requested the City make it as viable as possible to continue to do business. Manetta Bennett, Allen Street, expressed concerns about truck traffic on Bridge Street, as well as the temporary restrooms which she believes are too small and should be replaced; did not favor moving the Farmers' Market to the former JJ's Market site as it is too far away from the Village; suggested closure of E. Branch Street for Farmers' Market; and stated that business owners who are negatively impacted by this project should be compensated. Tim Moore, Fair Oaks Avenue, expressed concern about heavy truck traffic on Bridge Street; agreed that Farmers' Market is taking away parking in Olahan Alley; and stated there was a rumor that Short Street and Olahan Alley would be closed at the same time. Upon hearing no further comments, Mayor Ferrara closed the public comment period. Council comments ensued regarding truck traffic on Bridge Street; proposed street closures as it relates to specific timeframes; proposed Alternatives; the temporary restrooms; whether Farmers' Market should be relocated; whether closure of E. Branch Street for Farmers' Market is a feasible option; and acknowledgement that there could be substantial additional costs to the City of $30,000 to $40,000 by shortening the street closure by only a week and a half. Action: Council Member Costello moved to direct staff to pursue options for the re- location of Farmers' Market during the six month construction period and come back to Council as quickly as possible, and to delay the decision on the Alternatives in terms of the options for Short Street until Council could consider the options for Farmers' Market. Mayor Pro Tern Guthrie seconded the motion. Council Member Ray asked for an amendment to the motion to include signage for Bridge Street. Council Member Costello stated he believed staff had received that direction and it was not necessary to include in the motion. City Manager Adams also noted that the issue of the restrooms is included in the Encroachment Agreement so that issue could also be addressed when Council reconsiders this item. The motion passed on the following roll -call vote: AYES: Costello, Guthrie, Fellows, Ray, Ferrara NOES: None Minutes: City Council /Redevelopment Agency Meeting Page 6 Tuesday, November 23, 2010 ABSENT: None 11. NEW BUSINESS: 11.a. Consideration of a Proposed Ordinance Amending Portions of Title 8 (Fire Code) and Title 15 (Building and Construction Codes) of the Arroyo Grande Municipal Code. Building Official Hurst presented the staff report and noted staff had identified two necessary modifications to the proposed Ordinance as follows: In Section 13 of the Ordinance, Section 8.08.070(A) should read "Fireworks shall not be sold before noon on the twenty- eighth of June and such sales shall cease at noon on the fifth day of July. Sales during this time period will be limited to nine a.m. to nine p.m. each day. Any permittee failing to observe these hours designated for sale may have their permit revoked or be ineligible for a permit in subsequent years. "; and existing Municipal Code Section 8.08.090(B) should be repealed and deleted from the Arroyo Grande Municipal Code in its entirety in order to avoid a conflict with adoption of the new Fire Code. He then recommended the Council: 1) Introduce an Ordinance, as modified, amending Arroyo Grande Municipal Code Chapter 8.04 related to the adoption of the California Fire Code and International Fire Code; amending Chapter 8.08 related to Fireworks; and amending Chapter 15.04 related to the adoption of the California Building Code, Califomia Residential Code, California Electrical Code, California Mechanical Code, California Plumbing Code, California Green Building Code, California Existing Building Code, Califomia Energy Code, California Historical Building Code and the International Property Maintenance Code; and 2) Schedule a public hearing for December 14, 2010 in accordance with the requirements of Government Code Section 50022.3, to consider final adoption of the Ordinance. Brief Council questions ensued regarding fire sprinklers; clarification that State law will now require all new residential occupancies to have fire sprinklers; and clarification regarding fireworks sales and use timeframes. Brief discussion ensued with regard to limiting the areas within the City where safe and sane fireworks can be discharged and whether the Ordinance should identify such areas. Mayor Ferrara invited comments from those in the audience who wished to be heard on the matter, and upon hearing none, he closed the public comment period. Action: Council Member Costello moved to: 1) Introduce an Ordinance, as amended, as follows: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING ARROYO GRANDE MUNICIPAL CODE CHAPTER 8.04 RELATED TO THE ADOPTION OF THE CALIFORNIA FIRE CODE AND INTERNATIONAL FIRE CODE; AMENDING CHAPTER 8.08 RELATED TO FIREWORKS; AND AMENDING CHAPTER 15.04 RELATED TO THE ADOPTION OF THE CALIFORNIA BUILDING CODE, CALIFORNIA RESIDENTIAL CODE, CALIFORNIA ELECTRICAL CODE, CALIFORNIA MECHANICAL CODE, CALIFORNIA PLUMBING CODE, CALIFORNIA GREEN BUILDING CODE, CALIFORNIA EXISTING BUILDING CODE, CALIFORNIA ENERGY CODE, CALIFORNIA HISTORICAL BUILDING CODE AND THE INTERNATIONAL PROPERTY MAINTENANCE Minutes: City Council /Redevelopment Agency Meeting Page 7 Tuesday, November 23, 2010 CODE "; 2) Schedule a public hearing for December 14, 2010 in accordance with the requirements of Government Code Section 50022.3, to consider final adoption of the Ordinance; and 3) Direct staff to bring forward language consistent with the Fire Code relating to the safe use of safe and sane fireworks. Council Member Ray seconded, and the motion passed on the following roll call vote: AYES: Costello, Ray, Fellows, Guthrie, Ferrara NOES: None ABSENT: None Mayor Ferrara called for a break at 8:59 p.m. The Council reconvened at 9:05 p.m. 11.b. Consideration of Fiscal Year 2010 -11 First Quarter Budget Status Report. [CC /RDA] Administrative Services Director Kraetsch presented the staff report and recommended the Council approve Carryover Appropriations as shown on Schedule A and approve budget adjustments and recommendations as listed in the Quarterly Financial Report and shown on Schedule A. Mayor /Chair Ferrara invited comments from those in the audience who wished to be heard on the matter, and upon hearing none, he closed the public comment period. Council /Board comments ensued in support of the budget status report; acknowledgement of staff's hard work to keep expenditures down; acknowledgement of cost savings; acknowledgement that programs have changes but service levels have been maintained; and a recommendation that the money to be spent on the City Hall project be taken from the General Fund savings instead of borrowing from the Local Sales Tax Fund and repaid. City Manager Adams acknowledged the recommendation and suggested the Council wait until the upcoming budget cycle which is expected to present some challenges and he would like the Council to review options prior to making any reallocations. Director Kraetsch also noted that the third quarter budget status report would provide more information about revenues and expenditures. Action: Council /Board Member Costello moved to approve carryover appropriations as shown on Schedule A and approve budget adjustments and recommendations as listed in the Quarterly Financial Report and shown on Schedule A. Mayor Pro TemNice Chair Guthrie seconded, and the motion passed on the following roll call vote: AYES: Costello, Guthrie, Fellows, Ray, Ferrara NOES: None ABSENT: 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 cancelled its last Minutes: City Council/Redevelopment Agency Meeting Page 8 Tuesday, November 23, 2010 meeting, however, a press release was issued on the Annual STIP funding which includes $349,000 to be allocated to the City for the El Camino Real Sidewalks and Bike Lanes; SLORTA reported that the bus driver in the recent bus /pedestrian accident was not at fault. (2) South San Luis Obispo County Sanitation District (SSLOCSD). Mayor Pro Tem Guthrie attended the last meeting, however, he reviewed the agenda packet and commented on plant operations noting that budget issues and shortfalls are being worked out and potential cost savings are being identified. (3) Brisco /Halcyon /Hwy 101 Interchange Project Subcommittee. The project is still moving along. (4) Other. Attended the League of California Cities Board Meeting where presentations were received on the 2011 League Strategic Goals; the passage of Proposition 22 was celebrated; and Proposition 26 was discussed at length to determine what fees qualify under this Proposition. (b) MAYOR PRO TEM JIM GUTHRIE: (1) South County Area Transit (SCAT). Has not met since last report. (2) Community Action Partnership. Continuing to be the lead agency on the homeless campus project; still facing funding challenges; health clinics are running well. (3) Homeless Services Coordinating Council (HSOC). Working on positioning local agencies to qualify for Federal funding. (4) Tourism Committee. A proposal is forthcoming for next year's budget. (5) Other. Attended Sanitation District meeting; agreed that significant budget issues continue; noted that there will be six sewer hookups in Arroyo Grande; reported on testing activities as a result of violations found by the Water Quality Control Board. (c) COUNCIL MEMBER JOE COSTELLO: (1) Zone 3 Water Advisory Board. Met last week; did not attend; the Board is looking for more participation by the agencies in the budgeting process for the water treatment facility, however the County continues to view this as an advisory board. (2) Air Pollution Control District (APCD). No report, meets next week. (3) Other. Five Cities Fire Authority cancelled its last meeting. (d) COUNCIL MEMBER FELLOWS: (1) Integrated Waste Management Authority Board (IWMA). Met last week; acknowledged Manager Bill Worrell for his work on diversion programs in SLO County; reported the County's diversion rate is up 70 %. (2) County Water Resources Advisory Committee (WRAC). No report; was out of town during last meeting. (3) Other. None. (e) COUNCIL MEMBER RAY: (1) California Joint Powers Insurance Authority (CJPIA). Held regular Minutes: City Council /Redevelopment Agency Meeting Page 9 Tuesday, November 23, 2010 meeting in November to discuss administrative items. (2) Economic Vitality Corporation (EVC). Meeting cancelled in lieu of the Annual Economic Forecast which was attended by five City of Arroyo Grande representatives. (3) Other. None. 13. CITY COUNCIL MEMBER ITEMS: None. 14. CITY MANAGER ITEMS: None. 15. COUNCIL COMMUNICATIONS: Council Member Ray acknowledged Council Member Fellows as this would be his last regular Council meeting and thanked him for his service. Council Member Fellows stated it has been his honor to serve the City of Arroyo Grande and he was looking forward to seeing Tim Brown on the Council. Mayor Ferrara thanked the community for supporting Proposition 22 and wished all a Happy Thanksgiving. 16. STAFF COMMUNICATIONS: City Manager Adams announced that in follow up to a request by Mayor Pro Tem Guthrie, several public budget workshops are being scheduled to begin in February to be held at the Woman's Club Community Center. City Manager Adams also announced that the Christmas Parade on Sunday, November 28 at 5:00 p.m. 17. COMMUNITY COMMENTS AND SUGGESTIONS: Zeke Turley, AGP Video, shared the news of the recent birth of his twins, a boy and a girl. 18. ADJOURNMENT Mayor /Chair Ferrara adjoumed the meeting at 9:45 p.m. Tony Fer yor /Chair ATTEST: y � l / i (,(12thitytt Kelly W - or ity Clerk/Agency Secretary (Approved at CC Mtg /2 -1Y-20/0 ) -