Minutes 2001-11-13
MINUTES
REGULAR MEETING OF THE CITY COUNCIUREDEVELOPMENT AGENCY
TUESDAY, NOVEMBER 13, 2001
COUNCIL CHAMBERS, 215 E. BRANCH STREET
ARROYO GRANDE, CALIFORNIA
1. CALL TO ORDER
Mayor Lady called the Regular City Council meeting to order at 7:00 p.m.
2. ROLL CALL
City Council: Council Members Runels, Dickens, Lubin, Mayor Pro Tem Ferrara
and Mayor Lady were present.
RDA: Board Members Runels, Dickens, Lubin, Vice-Chair Ferrara, and
Chair Lady were present.
City Staff Present: City Manager Adams; City Attorney Carmel; Director of
Administrative Services Wetmore; Director of Financial Services
Snodgrass; Community Development Director Strong; Acting
Director of Parks, Recreation, and Facilities Perrin; Chief of Police
TerBorch; Director of Public Works Spagnolo; and Consultant
Senior Engineer Campbell.
3. FLAG SALUTE
Members of Cub Scout, Den 1, Pack 13 led the Flag Salute.
4. INVOCATION
Jean Bowser, Bahai Faith, delivered the invocation.
5. SPECIAL PRESENTATIONS
None.
6. AGENDA REVIEW
6.a. Resolutions and Ordinances Read in Title Only
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. CITIZENS'INPUT, COMMENTS, AND SUGGESTIONS
Otis Page, 606 Myrtle, spoke regarding the Referendum that was filed relating to the
adoption of the General Plan. He quoted Election Code Section 18600(a) and (b)
relating to misrepresentation by a circulator and stated he believed that the press
release issued by the proponent contains erroneous information which misrepresents
the facts and misleads the public. He requested that the Council agendize the issue for
discussion.
CITY COUNCIL MINUTES
NOVEMBER 13, 2001
PAGE 2
8. CONSENT AGENDA
Council Member Lubin pulled Item 8.e.
Council Member Dickens moved and Council Member Runels seconded the motion to
approve Consent Agenda Items 8.a. through 8.j., with the exception of Item 8.e., with
the recommended courses of action.
S.a. Cash Disbursement Ratification.
Action: Approved the listing of cash disbursements for the period October 16,
2001 through October 31, 2001.
S.b. Statement of Investment Deposits.
Action: Received and filed the report of current investment deposits as of
October 31,2001.
S.c. Cash Flow Analysis/Approval of Interfund Advance from the Water Facility
Fund.
Action: Received and filed September 2001 Cash Report and approved the
interfund advance from the Water Facility Fund to cover cash deficits in other
funds as of September 30,2001.
S.d. Consideration of Approval of Minutes.
Action: Approved minutes as submitted for the Special City Council Meeting of
October 23, 2001 and Regular City Council Meeting of October 23, 2001.
S.f. Consideration of Authorization to Solicit Bids for March 2001 Storm
Restoration at Rodeo Drive, Project PW-01.04.
Action: 1) Approved the construction plans and specifications and authorized the
Department of Public Works to solicit public construction bids for the March 2001
Storm Restoration at Rodeo Drive Capital Improvement Project; and 2) Found
that the March 2001 Storm Restoration at Rodeo Drive Capital Improvement
Project is categorically exempt from CEQA pursuant to Section 15301(d) and
directed Administrative Services to file a Notice of Exemption.
8.g. Consideration of Adoption of a Resolution to Change the State License for
the Children In Motion Program and Approve the Memorandum of
Understanding with United Cerebral Palsy (UCP) of San Luis Obispo
County.
Action: Adopted Resolution No. 3557 acknowledging the Children In Motion
Program is changing its State License to accept non-ambulatory participants and
approved the Memorandum of Understanding.
S.h. Consideration of Huasna Road Pavement Overlay, City Project No. PW-01.
03, Notice of Completion, Final Progress Payment No.2, and Retention
Release.
Action: 1) Authorized Final Progress Payment in the amount of $25,422.00; 2)
Directed staff to file a Notice of Completion; and 3) Authorized release of the
retention in the amount of $22,549.99, thirty-five (35) days after the Notice of
Completion has been recorded, if no liens have been filed.
S.L Consideration of Adjustment to Employee Medical Insurance Benefits.
Action: 1) Adopted Resolution Nos. 3558, 3559, 3560, 3561, and 3562
amending City participation in the CalPERS medical insurance program; 2)
Adopted Resolution No. 3563 amending medical insurance benefits for
CITY COUNCIL MINUTES
NOVEMBER 13, 2001
PAGE 3
management employees; 3) Approved the letter of agreement modifying the
MOU with AGPOA regarding medical insurance benefits; and 4) Approved the
letter of agreement modifying the MOU with SEIU regarding medical insurance
benefits.
8.j. Consideration of Determination of Industrial Disability.
Action: Adopted Resolution No. 3564 determining that Senior Police Officer
Richard Checansky suffers from an industrial disability.
AYES: Lubin, Runels, Dickens, Ferrara, Lady
NOES: None
ABSENT: None
There being 5 AYES and 0 NOES, the motion is hereby declared to be passed.
8.e. Consideration of Authorization to Solicit Construction Bids for Oak Park
Boulevard Street Widening Project, Project PW-GO-G1.
Action: 1) Approve the construction plans and specifications and authorize the
Department of Public Works to solicit public construction bids for the Oak Park
Boulevard Street Widening Capital Improvement Project; 2) Appropriate $81,623
from the Transportation Facility Impact fund for the Oak Park Boulevard Street
Widening Capital Improvement Project; 3) Accept and record on behalf of the
City Grant Deeds from the four property owners on Oak Park Boulevard; and 4)
Find that the Oak Park Boulevard Street Widening Capital Improvement Project
is categorically exempt from CEQA pursuant to Section 15301(c) and direct
Administrative Services to file a Notice of Exemption.
Council Member Lubin commented that one side of Oak Park Boulevard was within the
City limits of Grover Beach. He asked if the project was being coordinated with the City
of Grover Beach. Director Spagnolo responded that Arroyo Grande was proceeding
with its portion of the project. He explained that Grover Beach was in the design phase
and their portion of the project which had been funded by SLOCOG. Council Member
Lubin asked if the portion from Atlantic City Avenue to the freeway was going to be
widened. Director Spagnolo replied that it would be; however, it was included as part of
Grover Beach's project.
On motion by Council Member Lubin to approve staffs recommendation, seconded by
Council Member Runels, and on the following roll-call vote, to wit:
AYES: Lubin, Runels, Dickens, Ferrara, Lady
NOES: None
ABSENT: None
There being 5 A YES and 0 NOES, the motion is hereby declared to be passed.
CITY COUNCIL MINUTES
NOVEMBER 13, 2001
PAGE 4
9. PUBLIC HEARINGS
9.a. Consideration of the Request from South County Sanitary Service for
Integrated Solid Waste Collection Rate Increase.
City Manager Adams presented the staff report. He explained that the item had
originally been considered at the September 25, 2001 City Council meeting and the
Council had directed staff to further assess the findings in the Solid Waste Rate Review
report. He explained that the formal rate review was further assessed by him, the City
Attorney, Director of Financial Services, and the Manager of the Integrated Waste
Management Authority, and the results of this additional analysis confirmed that the
review was performed correctly and was consistent with the City of San Luis Obispo
Rate Review Process and Methodology Manual. City Manager Adams further
addressed concerns identified by the Council regarding retroactive reimbursement;
issues relating to operating profit; setting rates based on a proposed volume based rate
structure; phasing the increase in over a two-year period; and clarification regarding
terms in the Franchise Agreement. Staff recommended the Council adopt a Resolution
approving integrated solid waste collection rate increases.
Mayor Lady opened the Public Hearing and invited comments from those in the
audience who wished to be heard on the matter. Hearing no public comments, Mayor
Lady closed the Public Hearing.
Mayor Pro Tem Ferrara referred to the breakdown of customer accounts for both Arroyo
Grande and Pismo Beach as presented in the staff report and stated that the
percentage of accounts receiving 32-gallon service was close in both cities. He spoke
of the need to maintain recycling rates and asked how a volume based fee structure
would impact recycling efforts.
Tom Martin, Controller for South County Sanitary Service, indicated that every home in
the City has a blue recycling container. He noted that there were more persons per
household in Arroyo Grande. He explained that customers receive a 32-gallon recycling
container; however, the may request a larger, 64-gallon, recycling container for no
additional cost.
Mayor Pro Tem Ferrara inquired about the extra bag rate of $4.36 and asked if that
applied to garbage and recycling.
Mr. Martin responded that it applied only for garbage.
Council Member Lubin asked Mr. Martin if there was a significant change in service
when the City of Pismo Beach went to a volume based rate structure.
Mr. Martin explained that the City of Pismo Beach started off their program with a
volume based rate structure.
CITY COUNCIL MINUTES
NOVEMBER 13, 2001
PAGE 5
Council Member Runels commented on costs for replacement of equipment and the
increase in the number of trucks South County Sanitary has had. He also commented
that the fees to dump at the landfill are higher. He supported staff's recommendation.
Council Member Dickens expressed concern about the impacts of a large rate increase
for citizens, especially for those on fixed incomes. He supported staff's
recommendation and recommended that a press release be issued informing citizens of
the program available to assist low-income households. He further commented that he
would like to consider requests for increases on an annual basis.
Council Member Lubin said to avoid large increases, he supported reviewing requests
for rate increases on an annual basis. He stated he was leaning toward the volume-
based fee structure and commented that those disposing of trash to the landfill should
pay the higher fee. He supported looking into the volume based fee structure.
Mayor Pro Tem Ferrara stated at first he was looking toward a volume-based approach;
however, having looked at the numbers, he was concerned about the resulting
increases to consumers with larger containers. He stated he believed the appropriate
strategy was to support staff's recommendation and then review the volume-based fee
structure next year. He suggested during the next year, staff proceed by preparing and
marketing the new program by providing detailed explanations on how to reduce
garbage and encourage recycling.
Mayor Lady commented that going to a volume-based fee structure later would provide
an incentive to recycle more. He supported staff's recommendation as proposed.
Mayor Pro Tem Ferrara moved to approve the integrated solid waste collection rate
increases and adopt a Resolution establishing integrated solid waste collection service
rates, as amended for the rates to be effective on December 1, 2001. He further moved
that the action be preceded by a community based marketing approach to explain the
background and purpose of the increase; provide and explain incentives for continued
recycling; and to direct staff to re-examine a volume-based fee approach for
consideration next year. Council Member Runels seconded the motion, and on the
following roll-call vote, to wit:
AYES: Ferrara, Runels, Dickens, Lubin, Lady
NOES: None
ABSENT: None
There being 5 AYES and 0 NOES, the motion is hereby declared to be passed.
9.b. Consideration of Adoption of a Resolution of Intention to Abandon a 1.40-
acre Portion of Land within the Proposed 10-acre Rancho Grande Park Site.
Council Member Lubin declared a potential conflict of interest and stepped down from
the dais.
CITY COUNCIL MINUTES
NOVEMBER 13, 2001
PAGE 6
Community Development Director Strong presented the staff report. He stated the
Council had previously approved the creation and sale of three potential residential lots
located on the subject 1.40-acre portion of land within the proposed Park site. He
explained that prior to abandoning a portion of property originally dedicated for park
purposes, the City must first adopt a Resolution of Intention describing the portion of the
park to be abandoned and fixing a time, at least 30 days after adoption of the
Resolution, when the Council will meet to take final action.
Council Member Runels inquired as to the status of the lot configuration for the
proposed three residential lots. Director Strong responded the configuration of the lots
was detailed on the Park Master Plan and briefly reviewed the size for each lot.
Council Member Dickens recalled that residents in the area had objections to the
original configuration of the lots. City Manager Adams responded that those concerns
had been resolved at a previous meeting and adjustments to lot lines had been made.
Mayor Pro Tem Ferrara recalled concems expressed by residents regarding other
issues such as fence lines and potential view sheds. He clarified that the proposed
architecture and positioning of homes would have to conform to the development's
CC&Rs. City Manager Adams noted that the meeting previously mentioned had
included representatives from the Homeowners Association and from RRM Design.
Council Member Runels asked if there were any restrictions on what was to be built on
the three lots. Director Strong replied it would be Low Density Single Family
Residential.
Mayor Lady opened the Public Hearing and invited comments from those in the
audience who wished to be heard on the matter.
Denise Wilson asked what was the original intent of the property to be used for. Mayor
Lady explained that the portion proposed to be abandoned was part of the proposed 1 D-
acre Rancho Grande Park site and that the sale of this portion would help fund the
construction of Rancho Grande Park.
Hearing no further public comments, Mayor Lady closed the Public Hearing.
Council Member Dickens commented that, because of its topography, the subject
portion of land proposed for abandonment may not be suitable as part of the proposed
Park and supported staffs recommendation.
Council Member Runels stated the City will need every bit of open space and did not
support abandoning any portion of the proposed park site.
Mayor Pro Tem Ferrara supported staffs recommendation and stated the additional
funding would allow the Park to be finished and construction would not have to be
phased.
CITY COUNCIL MINUTES
NOVEMBER 13, 2001
PAGE 7
Mayor Lady commented that if finances were available for a 10-acre Park, he would not
recommend abandoning a portion of the land. However, he stated since that was not
the case, he supported staff's recommendation.
Council Member Dickens moved to adopt a Resolution of Intention to abandon a 1.40-
acre portion of the proposed 10-acre Rancho Grande Park site, pursuant to
Government Code Section 38501 et. seq., which includes setting a meeting date of
January 8, 2002 for final City Council action on the proposed abandonment. Mayor Pro
Tem Ferrara seconded the motion, and on the following roll-call vote, to wit:
AYES: Dickens, Ferrara, Lady
NOES: Runels
ABSENT: Lubin
There being 3 AYES, 1 NO, and 1 ABSENT, the motion is hereby declared to be
passed.
Council Member Lubin returned to the dais.
9.c. Consideration of Adoption of an Ordinance Regarding Sewer Connection
Fees.
Director of Public Works Spagnolo presented the staff report. He explained the Council,
at its October 23m meeting, had directed staff to modify the second paragraph of
Section 6-6.411 to delete the wording related to credit for prior payments and then
introduced the Ordinance for first reading. He gave an overview of the modifications to
the fee structure and explained that the Ordinance provides that the connection fee
amounts be established by Resolution.
Mayor Lady opened the Public Hearing and invited comments from those in the
audience who wished to be heard on the matter. Hearing none, Mayor Lady closed the
Public Hearing.
Council Member Lubin moved to adopt an Ordinance amending Articles 4 and 5 of Title
6 of the Arroyo Grande Municipal Code regarding sewer connection fees. Council
Member Dickens seconded the motion, and on the following roll-call vote, to wit:
AYES: Lubin, Dickens, Runels, Ferrara, Lady
NOES: None
ABSENT: None
There being 5 AYES and 0 NOES, the motion is hereby declared to be passed.
Council Member Lubin moved to adopt a Resolution establishing sewer connection fee
amounts. Council Member Dickens seconded the motion, and on the following roll-call
vote, to wit:
-" --.~ ~._~----
CITY COUNCIL MINUTES
NOVEMBER 13, 2001
PAGE 8
AYES: Lubin, Dickens, Runels, Ferrara, Lady
NOES: None
ABSENT: None
There being 5 A YES and 0 NOES, the motion is hereby declared to be passed.
10. CONTINUED BUSINESS
10.a. Consideration of Approval of the Wastewater System Master Plan.
Director of Public Works Spagnolo presented the staff report. He stated the Council
authorized distribution of the draft Wastewater System Master Plan at its July 24th
meeting. He gave a brief overview of the purpose of the Wastewater System Master
Plan. Consultant Senior Engineer Craig Campbell was present to answer questions.
Council Member Runels asked questions of staff regarding long-term capital
improvement projects. Director Spagnolo responded that recommended projects were
prioritized in a phased capital improvement program to be implemented over a 20-year
period.
Council Member Runels asked is the City could be subject to pollution fines. Director
Spagnolo responded yes; however, the replacement of Lift Station No..1 was included
as a Priority 1 improvement.
Mayor Pro Tem Ferrara referred to the difference in the population figure in the Water
Master Plan and the Wastewater System Master Plan and asked for clarification.
Consultant Senior Engineer Campbell responded that the time between the preparation
of the Water Master Plan and the preparation of the Wastewater System Master Plan,
staff was directed to research the current figure as part of the General Plan Update
process. He said at that time, a figure was established and used as basis in the
Wastewater System Master Plan.
Mayor Pro Tem Ferrara asked if there were plans to reconcile the population figure in
the Water Master Plan with the figure used in the Wastewater System Master Plan.
Consultant Campbell replied yes.
Mayor Lady opened the Public Hearing and invited comments from those in the
audience who wished to be heard on the matter.
John Keen, 298 N. Elm, stated that he found the study to be very comprehensive and
acknowledged staff's work on the Plan. He commented that the City limit lines on the
maps were not clear and suggested that they be clarified.
Hearing no further public comments, Mayor Lady closed the Public Hearing.
CITY COUNCIL MINUTES
NOVEMBER 13, 2001
PAGE 9
Council Member Runels moved to approve and adopt the 2001 Wastewater System
Master Plan. Council Member Dickens seconded the motion, and on the following roll-
call vote, to wit:
AYES: Runels, Dickens, Lubin, Ferrara, Lady
NOES: None
ABSENT: None
There being 5 A YES and 0 NOES, the motion is hereby declared to be passed.
11. NEW BUSINESS
11.a. Fiscal Year 2001/02 First Quarter Budget Status Report. [COUNCIURDA]
Director of Financial Services Snodgrass presented the staff report. She highlighted the
City's Projected Fund Balance at June 30, 2002 ($1,389.100); Carryover Appropriations
($390,700); Approved Adjustments ($8,000); Proposed Adjustments ($66,400); Total
Decrease to General Fund Balance ($332,300); and Adjusted Fund Balance at June 30,
2002 ($1,056,800).
Council/Board Member Lubin referred to the Projected Fund Balance and the Council's
goal of achieving a fund balance of 15% of appropriations. He asked Director
Snodgrass if the City was ahead in achieving that goal. Director Snodgrass replied that
the fund balance was much better than anticipated and that there was a fund balance of
approximately 10-12% of appropriations.
Council/Board Member Lubin referred to the property tax revenue increase and asked
where the information comes from and when it is determined. Director Snodgrass
replied that the County Tax Collector assesses the tax rolls and provides an estimate.
She explained the information arrives in late June after the Budget has been approved
and published.
Council/Board Members Runels and Dickens commented that staff had presented a
good report.
Mayor Pro TemNice-Chair Ferrara asked if the City anticipated receiving revenue for
responding to a mutual aid fire. Director Snodgrass replied no and that she did not
incorporate that revenue into the budget. She stated when the money is received, it is
included in the quarterly budget reports.
Mayor Pro TemNice-Chair Ferrara referred to rising costs associated with healthcare
issues. He expressed concern about the financial impact over the long range and
suggested incorporating this issue into the Long Range Financial Plan as there were a
lot of unanswered questions.
Mayor/Chair Lady opened up the item for public comment, and upon hearing none,
brought the item back to Council for consideration.
CITY COUNCIL MINUTES
NOVEMBER 13, 2001
PAGE 10
Council/Board Member Lubin referred to Schedule A on page 2 and asked for
explanation with regard to the "Total Available" column. Director Snodgrass explained
the difference between "Total Available" versus "Appropriations".
Mayor Pro TemNice-Chair Ferrara referred to page 18 regarding the State of California
facing a $14 billion shortfall because of the slowing economy and the State energy
crisis. He suggested continuing to work harder to support the League's position on
putting a cap on ERAF. He further addressed the potential loss of Vehicle License Fee
(VLF) revenue and urged support of the League's efforts in communicating with
legislators over this very serious issue.
Council/Board Member Lubin moved to: 1) Approve Carryover Appropriations as
detailed in Schedule B; 2) Approve detailed budget adjustments and recommendations
as shown in Schedule B; and 3) Approve Schedules A through F included in the First
Quarter Status Report. Council/Board Member Runels seconded the motion, and on
the following roll-call vote, to wit:
Council
AYES: Lubin, Runels, Dickens, Ferrara, Lady
NOES: None
ABSENT: None
There being 5 AYES and 0 NOES, the motion is hereby declared to be passed.
RDA
AYES: Lubin, Runels, Dickens, Ferrara, Lady
NOES: None
ABSENT: None
There being 5 AYES and 0 NOES, the motion is hereby declared to be passed.
12. CITY COUNCIL MEMBER ITEMS
a) Rotation of Mayor Pro Tern. (FERRARA)
Mayor Pro Tern Ferrara stated he had served in the role of Mayor Pro Tern for exactly
three years and although this was not an election year, he had held discussions with
others and looked into what other cities do with the rotation of this position. He
explained the role of Mayor Pro Tern and said it was good experience that should be
shared among the other Council Members. He said it was fitting at this time to give
another Council Member a chance at serving as Mayor Pro Tern and that he intended to
resign effective immediately. He asked City Attorney Carmel if an item to select a new
Mayor Pro Tern would need to be placed on a future Agenda. City Attorney Carmel
explained that with an immediately effective resignation, the need to take action on an
item had arisen subsequent to publication of the Agenda and the Council could add an
Agenda item to tonight's Agenda on a 4/5ths vote of the Council. Mayor Pro Tern
Ferrara then resigned his position as Mayor Pro Tern effective immediately.
CITY COUNCIL MINUTES
NOVEMBER 13, 2001
PAGE 11
On a voice vote, it was agreed unanimously to place the selection of a new Mayor Pro
Tem on the Agenda for immediate action.
b) Selection of Mayor Pro Tem.
Council Member Lubin moved to appoint Council Member Runels as Mayor Pro Tem.
Council Member Dickens seconded the motion, and the motion carried unanimously by
voice vote.
Mayor Lady thanked Council Member Ferrara for his service over the last three years as
Mayor Pro Tem.
13. CITY MANAGER ITEMS
City Manager Adams reminded the Council that the joint meeting with the Lucia Mar
Unified School District Board was being rescheduled for early January.
14. COUNCIL COMMUNICATIONS
Mayor Pro Tem Runels thanked the Council for appointing him to his new role.
15. STAFF COMMUNICATIONS
None.
16. ADJOURNMENT
Mayor Lady adjourned the meeting at 8:44 p.m.
MiCh.:?~~
ATTEST:
, V4Ju~
L/! 1};1
or;f,'Director of Administrative Servicesl
v Deputy City Clerk