Minutes 2000-08-08
MINUTES
REGULAR MEETING OF THE CITY COUNCIL
TUESDAY, AUGUST 8, 2000
COUNCIL CHAMBERS, 215 EAST BRANCH STREET
ARROYO GRANDE, CALIFORNIA
1. CALL TO ORDER
Mayor Lady called the Regular City Council meeting to order at 7:23 p,m.
2. ROLL CALL
City Council:
X Council Member Runels
X Council Member Tolley
X Council Member Dickens
X Mayor Pro Tem Ferrara
X Mayor Lady
Staff Present:
JLjnterim City Manager/Chief of Police
1L-City Attorney
1L-Director of Administrative Services
_Director of Building and Fire
1L-Director of Community Development
lLJ)irector of Economic Development
1L-Director of Public Works
1L-Director of Parks and Recreation
1L-Director of Financial Services
3. FLAG SALUTE
Kay Silva, representing Veterans of Foreign Wars #2829, led the flag salute.
4. INVOCATION
Reverend Dr. Norman Somes, St, Barnabas Episcopal Church of Arroyo Grande,
delivered the invocation.
5. SPECIAL PRESENTATIONS
5.a. Introduction of New City Manager bv Mavor Ladv
Mayor Lady introduced Steven D. Adams as the new City Manager. Mr. Adams
addressed the Council and public and introduced his family,
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6. AGENDA REVIEW
None.
6.a. RESOLUTIONS .AND ORDINANCES READ IN TITLE ONL Y
Council Member Runels moved, Mayor Pro Tem Ferrara seconded, and the
motion passed unanimously that all resolutions and ordinances presented at the
meeting shall be read in title only and all further reading be waived.
7. PUBLIC HEARINGS:
None.
8. CITIZENS' INPUT. COMMENTS. AND SUGGESTIONS
C.Z. Brown announced that he would be moving away from the area, He
expressed his appreciation to the Council and staff for listening to his concerns.
He spoke about the Rancho Grande Park project and Rodeo Drive as two issues
he was involved with. He urged continuing support of the Council and stated it
had been a privilege living in the community,
9. CONSENT AGENDA
Council Member Tolley moved to approve Consent Agenda Items 9.a. through 9,k,
with the recommended courses of action, Council Member Runels seconded the
motion.
a. Cash Disbursement Ratification. Approved.
b. Statement of Investment Deposits. Approved.
c. Cash Flow Analysis/Approval of Interfund Advance from the Water Facility
Fund. Approved.
d. Annual Report - Fiscal Year 1999-00 Cash Activity in Transportation
Facilities Development Impact Fund. Approved.
e. Minutes of Regular City Council Meeting of July 25, 2000. Approved.
f. Rejection of Claim Against City - M. & S. Pazell. Rejected claim.
g. Adoption of Employment Agreement - City Manager. Adopted Agreement.
h. Acceptance of Improvements for Tract 2333, Approved.
i. Budget Amendment Request for Emergent Repairs to Water Well No, 5.
Approved.
j. Approval of Final Map for Tract 2265 - Village Glen. Approved.
k. Acceptance of Grant Deeds for the Construction of Curb, Gutter, and
Sidewalk on Tally Ho Road, Approved.
- Voice Vote
LRolI Call Vote
Ave Lady
Ave Ferrara
Aye Runels
Ave Tolley
Aye Dickens
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CITY COUNCIL MINUTES
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There being 5 A YES and 0 NOES, the motion is hereby declared to be passed.
10. CONTINUED BUSINESS
10.a. TRACT 2265 - VILLAGE GLEN
Council Member Tolley declared a conflict of interest due to his ownership of real
estate near the project and stepped down from the dais.
Director of Public Works Spagnolo highlighted the staff report. He explained the
applicant had requested that the sewer area charge be reduced for parcels 37
through 40 to exclude the open space portion of the lots. He displayed an
overhead showing the large amount of open space on the parcels. He explained
the development of the fee and how it is calculated. He said the Municipal Code
allows for adjustments in the charge; however, it would only apply to 63 - 70% of
the gross area depending on the topography and if the lots qualify for
subdivision. Staff recommended the Council review the developer's request and
provide direction to staff regarding whether the sewer area fee should be applied
for parcels 37-40.
Council Member Runels asked if the access to these lots were from Canyon Way.
Director Spagnolo responded that was correct.
Council Member Dickens asked for clarification on how the fee reduction was
derived.
Director Spagnolo responded that the fee was derived from a reduction of 63% of
the total tract area, He said staff was looking for direction whether the open
space was to be included when determining the sewer acreage fee.
Mayor Lady opened up the discussion for public comment.
Gary Young, 2850 Mesa Alta Lane, applicant, spoke on behalf of the request. He
referred to Condition #24, which requires an Open Space Agreement be executed
for areas outside the one acre building site. He explained that the Open Space
Agreement has been executed and has been accepted by the Council. He said
the Agreement requires that the property be left as open space and can only be
changed by a decision of the City Council. He further explained that Condition
#25 requires that all buildings or structures to be built on lots 37-40 be built
within the one-acre area. He said Condition #127 requires a sewer permit fee to
be paid on a per acre basis. He requested consideration for reduction of the
sewer acreage fee for lots 37-40 only.
Mayor Pro Tern Ferrara asked Mr. Young about the difference in his calculation of
the fee versus staff's calculation.
Mr. Young replied that he agreed to staff's calculation,
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AUGUST 8, 2000
Hearing no further comments, Mayor Lady closed the public comment period and
brought the issue back to Council for consideration.
Mayor Lady stated that the Sanitation District considered the same issue. He sClid
the Sanitation District Board unanimously waived the annexation fees based on
the non-use of the open space area.
Council Member Runelsasked what the maximum amount that the City would
charge for each of the building sites.
Director Spagnolo replied it would be approximately $1,400,
Council Member Runels stated he would be concerned about receiving the fees
should the parcels be developed in the future,
Further Council and staff discussion included issues relating to open space
dedications; concerns about future development of open space; the protection of
having the Open Space Agreements recorded as part of the tract map approval;
and the benefit of collecting sewer fees in order to have sufficient funds in the
Sewer Facilities Fund, There was discussion about the existing ordinance
allowing the reduction of sewer fees based on issues of topography and if the
lots qualified for subdivision,
City Attorney Carmel stated that the provision in the Municipal Code related to
this issue is not clear, He stated that an interpretation must be made that open
space lots that are restricted by an Open Space Agreement can be subdivided.
He said it was not clear why subdivision was a prerequisite for a reduction in the
sewer fee, He stated it was unlikely that the open space lots would ever be
subdivided. He suggested that this section of the Code be clarified or rewritten.
Further Council discussion related to the current fee structure; proposed
amendments to the existing ordinance; how long it would take to amend the
ordinance; how soon the applicant would be pulling building pennits; and the
potential impact of a delay on the applicant"s progress of the project.
Bruce Buckingham, representative for the project, stated that the fees for 36 lots
have been calculated and building permits would be pulled within the next week.
He said there was time to wait on the remaining four lots that include open space.
There was Council consensus to direct staff to revise the ordinance and bring the
item back for Council consideration.
Council Member Tolley returned to the dais,
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CITY COUNCIL MINUTES
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11. NEW BUSINESS
11.a. RESERVOIR #1 REPLACEMENT FINANCING
Director of Financial Services Snodgrass highlighted the staff report. She
explained that the 1999 Water and Sewer Rate Study recommended that capital
projects costing more than one million dollars be funded through outside funding
resources. She stated the first large water project was the replacement of
Reservoir #1 in Fiscal Year 2000-01. She reviewed the three financing options
available including public offering; private placement; and pooled offering.
Director of Public Works Spagnolo was available for questions relating to the
project.
Mayor Lady opened up the discussion for public comment, and hearing no public
comments, brought the issue back to Council for consideration.
Council Member Tolley asked for clarification on the private placement financing
as it appeared to be the best option,
Director Snodgrass responded she thought it was the best option for the City due
to the falling interest rates and there is only a quarter of one-percent difference
between a private placement and a public offering,
Council Member Runels asked if the new drinking water standards would be met
if the City did not replace Reservoir #1.
Director Spagnolo responded that the water quality standards would continue to
be met; however, meeting the capacity and demand needs of the system would
be a challenge~
Council Member Runels asked if the City could leave Reservoir #1 In Its present
location and build a reservoir in another location for more storage capacity.
Director Spagnolo displayed photographs of the tank's interior, which Justifies
replacement of the tank due to its age and phys~callocation. He explained that
the tank was built in 1929; there are weeds and roots growing through the wall;
there is some erosion; and it needs to be moved to a lower elevation. Director
Spagnolo commented that the tank was drained and cleaned four years ago.
There was further discussion regarding the location of Reservoir #1; financing
terms of the three options; and the City's other outstanding debt obligations,
Council Member Runels moved to pursue private placement financing for the
Reservoir #1 Replacement Project. Mayor Pro Tern Ferrara seconded the motion.
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CITY COUNCIL MINUTES
AUGUST 8, 2000
Voice Vote
LRolI Call Vote
Aye Lady
Aye Ferrara
Ave Runels
Ave Tolley
Aye Dickens
There being 5 A YES and 0 NOES, the motion is hereby declared to be passed.
12. COUNCIL COMMUNICATIONS
Council Member Runels reported that the County Board of Supervisors certified
the Environmental Impact Report (EIR) for the Lopez Dam Retrofit project.
Council Member Runels gave an update on the Santa Maria water litigation case.
He said there has been some discussion of having an expert explain the issues to
the legislative representatives of the agencies involved in the case.
Mayor Lady stated he had received an invitation for an Eagle Scout Court of
Honor Saturday, August 12th that he would not be able to attend.
Mayor Pro Tem Ferrara replied he would be attending and that Kevin Hassler was
going to be honored at the event. He requested the Council sign and present a
Letter of Recognition that could be presented to Kevin at his Court of Honor and
then invite him to the next City Council Meeting to receive a proclamation. The
Council concurred.
Council Member Dickens gave an update on the last Open Space and
Conservation Subcommittee meeting. He reported that the Subcommittee had
written a letter to the Land Conservancy and the Director, Ray Belnap met with
the Subcommittee at its last meeting. He said the objective was to solicit the
Land Conservancy's services as a third party to negotiate with private land
owners in order to acquire open space. He said this would avoid a conflict and
provide an objective point-of-view. Council Member Dickens reported that Mr.
Belnap received Board approval of this concept. He said the Subcommittee
would be directing the Community Development Director to bring back direction
from the Council on future issues.
13. STAFF COMMUNICATIONS
Interim City Manager TerBorch reported that a memo had. been distributed to the
Council from Kerry McCants, Community Development Director, regarding a
strategy to expedite the completion of the General Plan Update.
14. ADJOURNMENT
Mayor Pro Tem Ferrara moved, Council Member Runels seconded, and the
motion passed unanimously to adjourn the meeting.
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CITY COUNCIL MINUTES
AUGUST 8, 2000
Time: 8:40 p,m.
~ J;;Irlr4-
MICHAEL A, LAD, A YO
, 0hJLJ~'
RE, ADMINISTRATIVE SERVICES DIRECTOR!
DEPUTY CITY CLERK
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