Minutes 1999-10-26
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CITY COUNCIL MINUTES
TUESDAY, OCTOBER 26,1999
CITY COUNCIL CHAMBERS,
215 EAST BRANCH STREET,
ARROYO GRANDE, CALIFORNIA
1. CALL TO ORDER
Honorable Mayor Lady called the regular City Council meeting of the City of
Arroyo Grande to order at 7:00 p.m,
2. ROLL CALL
City Council:
.x. Council Member Runels
.x. Council Member Tolley
X Council Member Dickens
.x. Mayor Pro Tern Ferrara
X Mayor Lady
STAFF PRESENT
~City Manager
~City Attorney
X-Director of Administrative Services
~Chief of Police
Director of Building and Fire
Director of Community Development
X-Director of Economic Development
~Director of Public Works
Director of Parks and Recreation
X-Director of Financial Services
3. FLAG SALUTE
Phil Johanknecht from the Arroyo Grande Masonic Lodge #274 led the Pledge of
Allegiance.
4, INVOCATION
Mayor Lady delivered the invocation.
5. SPECIAL PRESENTATIONS
5.a. EMPLOYEE SUGGESTION AWARD. BILL FULLER
Mayor Lady presented Public Works employee Bill Fuller with a Certificate of
Commendation and cash award in recognition of his suggestion for an
improvement in health and safety or working conditions, and an improvement in
methods and procedures that result in increased efficiency.
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CITY COUNCIL MINUTES
OCTOBER 26, 1999
6. AGENDA REVIEW
None,
6.A, RESOLUTIONS AND ORDINANCES READ IN TITLE ONL Y
Council Member Runels moved, Council Member Dickens 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.
PUBLIC HEARING
7,a, PROPOSED ORDINANCE AMENDING PORTIONS OF CHAPTERS 6 AND 7 OF
TITLE 6 OF THE MUNICIPAL CODE RELATING TO SEWER AND WATER RATES
AND CHARGES
Director of Public Works Spagnolo highlighted the staff report. He explained that
the Water and Sewer Rate Study was submitted for public review, and comments
received were reviewed by staff and the Consultant, He stated that the Water and
Sewer Rate Study was prepared to assess the existing water and sewer rate
structure and the projected revenue requirements, He said the Study included
recommendations for adequately meeting operational and capital project
expenses.
Clayton Tuckfield, Tuckfield & Associates, presented an overview on the current
water system, water system future requirements, costs of major capital
improvement projects required, and a proposed water system financial plan and
rate structure. He explained that the City Council had recently approved a Water
Master Plan, which identified capital improvement projects that were necessary'in
order to maintain a safe and reliable water system for the City as well as
necessary replacements and upgrades, He explained that a private fire protection
charge was proposed to recover some of the operation, maintenance, and capital
costs that have been incurred by the City to provide capacity in the water system
to serve customers. with private fire pipelines, It was also recommended that any
capital project exceeding $1,000,000 be considered for debt financing, and any
capital project under $1,000,000 be paid for through water rates,
Additionally, Mr, Tuckfield gave an overview of the current sewer system, future
requirements of the sewer system, and explained that sewer rate increases are
proposed for the next two fiscal years to recover operation and maintenance
costs of the sewer system, He said that the proposed rate structure is to be
changed from an existing flat monthly charge to a charge that is based on a
minimum customer charge and water volume. Further, he explained that the
. Study recommends maintaining a minimum balance in the water and sewer fund
of 45 days of operation and maintenance expense,
Council Member Dickens asked for clarification that there would be no water rate
increases if revenue bonds were issued to fund major capital improvement
projects; and whether a full study would be required every two years.
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CITY COUNCIL MINUTES
OCTOBER 26, 1999
Consultant Tuckfield responded that was true for major capital projects over
$1,000,000. He explained that the review of rates every two years would include
looking at incurred costs versus projected costs, and would be considered as a
rate review study.
Mayor Pro Tem Ferrara asked for clarification that in order to maintain current
rates, it would be necessary to dip into reserves.
Consultant Tuckfield responded that the water fund and water facility fund has
existing reserves on hand, and to meet the expenditures required of the capital
improvement program those funds would be used to pay for capital improvement
program expenditures.
Mayor Pro Tem Ferrara expressed concern about depleting reserves where the
City could not cover a contingency or an emergency.
Consultant Tuckfield responded that the water fund produces about $500,000
annually above expenses so additional funds are available in combination with
the reserves,
City Manager Hunt explained that through the budget process, the City budgets
sufficient reserves for contingency and emergency purposes.
Mayor Pro Tem Ferrara asked if the sewer rate increase was based on operation
and maintenance or projected projects.
Consultant Tuckfield responded that the sewer rates were based on projected
operation and maintenance.
Council Member Runels asked if the sewer charge that goes to the Sanitation
District was included.
Director Spagnolo responded that this fee was a separate charge and was
collected with the issuance of a building permit,
After being assured that the public hearing had been duly published and all legal
requirements met, Mayor Lady opened the Public Hearing.
Mike Titus, 404 Lierly, referred to the Lopez Dam Remediation Proje~t and asked
how it had been factored in to the rate study.
City Manager Hunt responded that costs for the Lopez project had not been
factored in, and explained that the remediation project w~s a separate issue. He
further explained that the rate structure being discussed was for the costs to
operate and maintain the City's water and sewer system, He said the Lopez Dam
charge is a separate line item on the water bill and is not linked to the City's water
and sewer rates.
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CITY COUNCIL MINUTES
OCTOBER 26, 1999
CZ Brown, 350 Old Ranch Road, referenced the $116,000 in the current bond and
wondered what the City's fair share would be with respect to the retrofit project if
there was another bond issued, He stated that he understood it was a separate
item; however, it would increase the monthly billing. He said there was a
reference of $2 million for a reservoir and asked if this was for one reservoir or
for all reservoirs within the City,
Director Spagnolo responded that $2 million was estimated for the Reservoir No.
1 project, which would be a total replacement of the reservoir.
Mr. Brown asked for an explanation on the proposed private fire connection
charges,
Director Spagnolo explained it was a separate fixed charge for private fire
connections serving only commercial customers with private fire pipelines.
Hearing no further comments, Mayor Lady closed the public hearing.
Council comments and questions included clarification that the private fire
connections are for buildings in the City that have ,fire sprinklers; the fact that the
rates have not been increased since 1992; and consensus that operation and
maintenance is crucial to keep the systems up and operating,
Mayor Pro Tern Ferrara moved to approve the Water and Sewer Rate Study dated
August 1999; introduced by title for first reading an Ordinance amending Chapter
6 and 7 of Title 6 of the Municipal Code; and continue the public hearing to
November 9, 1999 to consider the adoption of the Ordinance and a Resolution
establishing new water and sewer rates. Council Member Runels seconded the
motion,
_Voice Vote
LRolI Call Vote
~Lady
~Ferrara
~Runels
~Tolley
~Dickens
There being 5 A YES and 0 NOES, the motion is hereby declared to be passed.
8, CITIZENS' INPUT. COMMENTSr AND SUGGESTIONS
Otis Page, 606 Myrtle Street, spoke about the General Plan Update, He referred to
the applicants who have not heard about the status of their requests. He
distributed a copy of the colored map prepared by Nanci Parker to the City
Council for reference. He discussed the concept of property rights and citizen
rights. He explained that some people had a great reluctance to address the City
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CITY COUNCIL MINUTES
OCTOBER 26, 1999
Council and he encouraged the Council to listen to those who addressed the
Council tonight,
Alton Jones, 1189 Flora Road, stated he had spoken to the City Council in the
past to express some grievances. Mr. Jones described several incidents that had
taken place on his property after he had addressed the Council. He spoke about
his application to rezone ten acres of agriculture property to single family
residential. He said the property was not large enough or viable for farming, and
the pro,perty should be split to build homes. He said the zoning issues have been
a problem for his family and that individuals should have property rights.
.
Evelyn Stava, 1167 Flora Road, distributed a letter to the City Council regarding
the General Plan Update and requests for rezoning of properties located at 1167
and 1212 Flora Road from Agriculture to Residential, She stated that the parcels
were too small to farm, and not agriculturally viable. She encouraged the Council
to take action to protect the rights ,of property owners, take action on her family's
rezoning requests, and provide them with a status as soon as possible.
Van Vandeveer, 756 Myrtle Street, agreed with Mr. Page's comments. He stated
that he would like an answer to his request to rezone two acres from Rural
Residential to Single Family Residential,
James Lawler, 700, 710, 750 S, Traffic Way, spoke about trying to rezone his
property since the 1970's, He said the current zoning is not a fair and equitable
use of the property. He stated that the process was very slow.
Bruce Vanderveen, 1273 Branch Mill Road, commented that agriculture land was
great; however, there are parcels in the City that are zoned agricultural and he
owns one of them. He said he built a house one year ago and he' could not drill it
well because he was within the City limits. He said he wanted to put in a septic
tank and could not because the sewer was too close to the property. He wanted
to know why it was zoned agricultural if it could not be used for agricultural, and
that the zoning should be changed so it makes sense.
Otis Page, 606 Myrtle Street, thanked the Council for listening to the public
comments.
Grace Stilwell, 734 Myrtle Street, said she has inquired about her rezoning
requests and stated she would like some commitment of what is planned.
Council Member Tolley informed the Council and the audience that a tentative
date of November 17, 1999 had been scheduled for the next Long Range Planning
Committee meeting. He said the Consultant would be presenting a draft Land
Use Element and map. He encouraged the applicants with outstanding requests
to attend the meeting.
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CITY COUNCIL MINUTES
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Mayor Pro Tern Ferrara requested the City Manager look into the situations Mr,
Jones described while speaking under Citizens' Input, Comments, and
Suggestions,
9, CONSENT AGENDA
Council Member Tolley moved and Council Member Runels seconded the motion
to approve Consent Agenda Items 9,a. through 9.h., with the recommended
courses of action.
a. Cash Disbursement Ratification, Approved,
b, Minutes of City Council Meeting of September 28,1999, Approved.
c, Rejection of Claim Against City - B. Cole, Rejected Claim.
d. Approval of Tow Service Bid. Approved.
e. Approval of Employment Agreement. Approved.
f. Montego Street Sidewalks, Project No. 90-98-7, Progress Payment No, 2,
Contract Change Order No, 3, and Notice of Completion. Approved.
g. Grand Avenue, Elm Street to Halcyon Road, Project No. 60-70-90-98-6,
Progress Payment No.3, Approved.
h. Paseo Street - Acceptance of Easements, Resolutions No. 3401 and 3402
Adopted.
_Voice Vote
LRolI Call Vote
~Lady
~Ferrara
~Runels
~Tolley
~Dickens
There being 5 A YES and 0 NOES, the motion is hereby declared to be passed.
CONTINUED BUSINESS
10.a. SCENIC CREEKSIDE WALK THROUGH THE HISTORIC VILLAGE OF
ARROYO GRANDE - PHASE II PROJECT SCOPE
Director of Public Works Spagnolo highlighted the staff report. He reviewed
Phase I of the project. He stated that staff recommended the City Council:
A. Provide direction to staff as to the prioritization of the options for Phase II
of the Scenic Creekside Walk Through the Historic Village of Arroyo
Grande;
B. Allocate $62,500 for the City's $97,136 unallocated Urban State Highway
Account (USHA) funds for use as the required local match; and
C, Direct staff to forward the prioritized options to the San Luis Obispo
Council of Governments for concurrence.
Mayor Lady opened up the discussion for public comment.
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CITY COUNCIL MINUTES
OCTOBER 26, 1999
John Clark, 224 McKinley, reported that Mr. Spagnolo had met with the Village
Improvement Association and explained the options in depth. He referred to a
letter sent by the Association that listed its preferred prioritization of the options
for the project. He stated that the Historical Society and the Village Improvement
Association had chosen Option #2 as its number one choice, and urged the
Council to choose Option #2 as well, Mr, Clark said he hoped that the project
would be completed by next summer.
Council Member Dickens complimented staff on getting public input for the
creekside projects. He stated he had attended the presentation to the. Downtown
Parking Advisory Board. He said he was in favor of Option #2,
Council questions and discussion included how to combine the various Options
for funding; priority recommendations from the Historical Society, Village
Improvement Association, and Downtown Parking Advisory Board; clarification
on Option #5 which would include funds to construct a path down to a proposed
amphitheater to be built at a later date; and clarification on the proposal for
Option #1 which would require $197,000 to finish Phase I of the project.
John Clark described a similar amphitheater located in Ojai that was used
concurrently with various festivals.
Hearing no further comments, the Mayor closed the public discussion.
Council Member Tolley moved to approve staff recommendations, including the
prioritization of options for Phase II as recommended by the Village Improvement
Association. Mayor Pro Tem Ferrara seconded the motion.
_Voice Vote
LRolI Call Vote
Ayj1 Lady
~Ferrara
~Runels
An-Tolley
~Dickens
There being 5 A YES and 0 NOES, the motion is hereby declared to be passed.
11. NEW BUSINESS
11.a. APPOINTMENT OF CITY CO~NCIL MEMBER TO SLOCOG STEERING
COMMITTEE REGARDING DEVELOPMENT OF LOCAL OPTION SALES TAX
PROGRAM
City Manager Hunt highlighted the staff report,
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CITY COUNCIL MINUTES
OCTOBER 26, 1999
Council Member Tolley explained that the reason for developing a steering
committee at this time was to be prepared and ready with a Ii$t of prioritized
projects if the proposed legislation passes, He explained further that the
Committee would assist in the process of conducting a public opinion survey on
improvements to the transportation system.
Council questions and discussion included the legislative approval process of
the proposed bills and how the measure would need to be approved by a majority
of voters statewide and a majority of the voters in San Luis Obispo County; and
the reasons for forming a separate steering committee versus an ad-hoc
committee of the existing Board Members.
Council Member Runels moved to appoint Council Member Tolley to the SLOCOG
Steering Committee and to appoint Council Member Dickens as the alternate
member. Mayor Pro Tern Ferrara seconded the motion.
_Voice Vote
LRolI Call Vote
AyJJ. Lady
AytLFerrara
AytLRunels
~Tolley
AytLDickens
There being 5 A YES and 0 NOES, the motion is hereby declared to be passed.
11.b. APPOINTMENT OF CITY COUNCIL MEMBER AND AL TERNA TE(S) TO THE
ECONOMIC OPPORTUNITY COMMISSION (EOC) BOARD
Director of Economic Development Sheeley highlighted the staff report. She
explained that the EOC was requesting the participation of an Arroyo Grande
Council Member for an upcoming three-year term on its Board.
Mayor Pro Tern Ferrara moved to appoint Council Member Dickens to the
Economic Opportunity Commission Board, and himself as the Alternate, Council
Member Tolley seconded the motion,
_Voice Vote
LRolI Call Vote
AyJJ. Lady
~Ferrara
AytLRunels
~Tolley
~Dickens
There being 5 A YES and 0 NOES, the motion is hereby declared to be passed.
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CITY COUNCIL MINUTES
OCTOBER 26, 1999
12. CITY COUNCIL REPORTS:
a. MAYOR MICHAEL LADY
(1) South San Luis Obispo County Sanitation District (SSLOCSD).
Discussed problem with biodegradables and having to adjust and
increase chemical additives to meet Water Pollution Control Board
standards,
(2) Other, Reported on the Mayors Meeting held October 22"d. Discussed
request from League of California Cities to appoint Channel Counties
Division representatives to any of the eight Policy Committees.
b. MAYOR PRO TEM TONY M. FERRARA
(i) Integrated Waste Management Authority Board (IWMA). No report.
(2) Economic Vitality Corporation (EVC). No report.
(3) Air Pollution Control District (APCD). No report.
(4) Economic Development Task Force. Met on October 19th, Looking fbr
neutral facilitator for next step of strategic process so that Economic
Development Director and Mayor Pro Tem may more effectively
participate in discussions,
(5) Other,
c. COUNCIL MEMBER THOMAS A, RUNELS
(1) Zone 3 Advisory Board. 1) Board unanimously agreed to recommend
putting 50% of $26 million debt on the ballot for the Lopez Dam
Remediation Project, 2) City Manager responded by letter to concerns
expressed by a citizen regarding the Village Centre project. Gave brief
update on status of the Village Centre project; and 3) Gave an update
on letter by OCSD Director Rick Searcy relating to tie-in of Lopez
Recreation fees into the remediation project.
(2) County Water Resources Advisory Committee (WRAC). No report.
(3) Other.
d. COUNCIL MEMBER STEVE TOLLEY
(1 ) Long-Range Planning Committee. Copies of a letter from the
Consultant were distributed to the City Council. Tentative date for
next meeting is November 17,1999.
(2) South County Youth Coalition. No report,
(3) San Luis Obispo Council of Governments/San Luis Obispo Regional
Transit Authority (SLOCOG/SLORT A). Met on October 6th. Discussed'
Local Option Sales Tax issue, Also discussed and considered various
projects for funding.
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CITY COUNCIL MINUTES
OCTOBER 26, 1999
d. COUNCIL MEMBER STEVE TOLLEY (continued):
(4) Other. 1) Reported on the Annual League of California Cities
Conference; and 2) Reported that two Pismo Beach Police Officers
were seriously injured in an off-duty vehicle accident, and requested
that flowers be sent on behalf of the City.
e, COUNCIL MEMBER JIM DICKENS
(1) South County Area Transit (SCAT), Met on October 6th. 1) Discussed
Senior Taxi Program. Recommendations were heard and the
Agreement was reviewed. The Board concurred to make no changes
to the program. There will be no restrictions within the service area. It
was agreed that participants should be encouraged to use the
transportation; 2) Discussed Trolley issue. Board discussed raising
the fare to fifty cents as fare box returns are less than expected.
Council Member Dickens passed out a copy of the SCAT staff report
relating to the trolley system and concerns expressed by the City of
Grover Beach. SCAT Annual Report indicates a 10% increase in
combined ridership over prior year due to the Trolley. Board voted to
table the issue until December so that staff could prepare an
analysis/options/strategies on the future of the trolley,
(2) Economic Development Committee/Chamber of Commerce. No report;
this Committee has been dormant for a period of time.
(3) Community Recreation Center Subcommittee. No report.
(4) Other.
13, COUNCIL COMMUNICATIONS
Mayor Pro Tern Ferrara spoke about his attendance at the Annual League of
California Cities Conference, He distributed a handout entitled "Putting a Youth
Master Plan to Work" which was presented by the City of Ojai. He also reported
that he attended a Royal Oaks Community Meeting at which traffic issues were
discussed. Mayor Pro Tern Ferrara asked the City Manager to provide an update
on the removal of a roll-out container next to Marshall's at the Five Cities Center;
inquired if the City was experiencing problems with its computer server as he
was experiencing busy signals while trying to connect to the system; and
inquired when the Police Department would be connected to the City's network.
14, STAFF COf/lMUNICATIONS
City Manager Hunt reported that the City Engineer intends to accept the Final
map for Tract 2333, owned by Richard De Blauw, The subject tract is located at
1138 and 1148 Fair Oaks Avenue. This is a split of two separate parcels totaling
approximately one acre in size into eight parcels varying between 4,049 square
feet and 5,443 square feet in size,
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CITY COUNCIL MINUTES
OCTOBER 26,1999
There was no appeal by the Council. The City Engineer will approve the Final
Map within ten days following the date of this meeting.
15. ADJOURNMENT
Council Member Runels moved, Council Member Tolley seconded, and the.
motion passed unanimously to adjourn the meeting,
Time: 9:35 p.m.
MICH~
ATTEST:
/ UL~'Zi"JIJl-
ET ORE, DIRECTOR OF ADMINISTRATIVE SERVICESI
DEPUTY CITY CLERK
,
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