Minutes 2003-02-11
MINUTES
REGULAR MEETING OF THE CITY COUNCIUREDEVELOPMENT AGENCY
TUESDAY, FEBRUARY 11, 2003
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 7:00 p.m.
2. ROLL CALL
City Council: Council Members Runels, Lubin, Costello, Mayor Pro Tem
Dickens, and Mayor Ferrara were present.
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RDA: Board Members Runels, Lubin, Costello, Vice Chair Dickens, I
and Chair Ferrara were present. I
City Staff Present: City Manager Adams, City Attorney Carmel, Director of
Administrative Services Wetmore, Director of Public Works
Spagnolo, Director of Financial Services Snodgrass, and
Director of Community Development Strong.
3. FLAG SALUTE
Jack Gates, member of Arroyo Grande Lions Club, led the Flag Salute.
4. INVOCATION
Pastor Norman Somes, St. Barbabas Episcopal Church, delivered the invocation.
5. SPECIAL PRESENTATIONS
5.a. Proclamation Recognizing Tuesday, February 25, 2003 as Spay Day USA.
Mayor Ferrara presented a proclamation recognizing Tuesday, February 25, 2003 as
Spay Day USA. Cheryl Penkal accepted !he proclamation.
6. AGENDA REVIEW
None.
6.a. Resolutions and Ordinances Read in Title Only
Mayor Pro Tem Dickens moved, Council Member Costello 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
The following members of the public addressed the Council:
Connie Dunbar, Arroyo Grande, regarding issues of nuclear waste;
Dane Phillips, representing Daystar Industries.
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a. CONSENT AGENDA
Mayor Ferrara pulled Item 8.i. and acknowledged that an amended Resolution had
been submitted to Council for approval.
Council Member Lubin requested items 8.c. and 8,f. be pulled.
Mayor Pro Tem Dickens moved, and Council Member Costello seconded the motion
to approve Consent Agenda Items 8.a. through 8.j., with the exception of Items 8.c.,
8,f., and 8.i., with the recommended courses of action:
8.a. Cash Disbursement Ratification.
Action: Approved the listing of cash disbursements for the period January 16,
2003 through January 31,2003.
8.b. Statement of Investment Deposits.
Action: Received and filed the report of current investment deposits as of
January 31, 2003.
a.d. Consideration of a Program Supplement Agreement with Caltrans for the
Branch Mill Road Rehabilitation Capital Improvement Project.
Action: 1) Adopted Resolution No. 3651 authorizing the Mayor to execute
Program Supplement Agreement No. 894 with Caltrans; and 2) Directed the
Director of Administrative Services to submit the executed Program
Supplement Agreement No. 894 and authorizing Resolution to Caltrans.
8.e. Consideration of Progress Payment No.1 for the Scenic Creekside Walk,
Phase III Project - PW 2002-02.
Action: Authorized Progress Payment NO.1 in the amount of $20,925.45 to
Maino Construction Company, Inc. for the Scenic Creekside Walk Project
8.g. Consideration of Progress Payment No. 1 for the Rodeo Drive Traffic
Calming Project, PW 2002-07.
Action: Authorized Progress Payment NO.1 in the amount of $19,949.45 to
Papich Construction Company, Inc. for the Rodeo Drive Traffic Calming
Project.
8.h. Consideration of Progress Payment No. 1 for the Spruce and Cedar
Streets Sidewalk Project, PW 2002-05.
Action: Authorized Progress Payment No. 1 in the amount of $6,193.13 to
Maino Construction Company, Inc. for the Spruce and Cedar Streets Sidewalk
Project
a.j. Consideration of Consultant Services Agreements.
Action: 1) Approved Agreement with Ray Heatherington for Housing Element
Update professional services; 2) Approved amended agreements with EDA for
engineering and landscape design services regarding Poplar Ponding Basin
Expansion project; and 3) Approved Agreement with landscape architect
Debbie Black for professional design services related to E. Grand Avenue and
E. Branch Street (Village) enhancement projects.
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On the following roll-call vote, to wit:
AYES: Dickens, Costello, Runels, Lubin, Ferrara
NOES: None
ABSENT: None
There being 5 AYES and 0 NOES, the motion is hereby declared to be passed.
S.C. Consideration of Resolution Establishing Voluntary Payroll Deduction
Program for Action for Better Cities (ABC).
Recommended Action: Adopt Resolution approving establishing a voluntary
payroll deduction program for Action for Better Cities (ABC).
In response to questions from Council Member Lubin, staff explained that ABC was a
Political Action Committee (PAC), and employees have the ability to donate to ABC
directly rather than through payroll deduction. Council Member Lubin expressed
concerns that a memo regarding participation in the program would cause pressure
on the employee to contribute. He also expressed concerns regarding employee
payroll privacy issues.
Mayor Ferrara opened the item for public comment, and upon hearing none, brought
the issue back to Council for consideration.
Following Council discussion, staff was directed to submit to the City Council for
review the draft letter that would be sent out to employees; draft a specific procedure
regarding confidentiality and access to names of individuals participating in the
program; and annually review the status of the program with the City Council.
Mayor Pro Tem Dickens moved, and Council Member Costello seconded the motion
to approve Item 8.c., with the recommended course of action, and on the following
roll-call vote, to wit:
AYES: Dickens, Costello, Lubin, Runels, Ferrara
NOES: None I
ABSENT: None
There being 5 AYES and 0 NOES, the motion is hereby declared to be passed.
Council Member Lubin declared a potential conflict of interest on Item S.f. due
to real property ownership near the project.
S.f. Consideration of Progress Payment No. 6 for the Rancho Grande Park
Project, PW 2002-03.
Recommended Action: Authorize Progress Payment No.6 in the amount of
$111,686.35 to Herrera Engineering, Inc. for the Rancho Grande Park project.
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Council Member Runels moved, and Mayor Pro Tem Dickens seconded the motion
to approve Item 8.f., with the recommended course of action, and on the following
roll-call vote, to wit:
AYES: Costello, Dickens, Runels, Ferrara
NOES: None
ABSENT: Lubin
There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be
passed.
8.i. Consideration of Authorization to Use City Property and Close City
Streets for the Annual Arroyo Grande Strawberry Festival on May 24-25,
2003.
Recommended Action: Consider the request from the Arroyo Grande Village
Improvement Association and adopt Resolution authorizing the closure of City
streets and use of City property for the Annual Arroyo Grande Strawberry
Festival.
Community Development Director Strong explained that Item J. in the Resolution had
been amended to include the use of the Brisco lot from 6:00 p.m. Friday, May 23,
2003 to 6:00 p.m. Sunday, May 25, 2003.
Council Member Costello moved, and Council Member Lubin seconded the motion to
approve Item 8.i., as amended, and on the following roll-call vote, to wit:
AYES: Costello, Lubin, Runels, Dickens, Ferrara
NOES: None
ABSENT: None
There being 5 AYES and 0 NOES, the motion is hereby declared to be passed.
9. PUBLIC HEARINGS:
9.a. Consideration of Request from South County Sanitary Service for
Integrated Solid Waste Collection Rate Increase.
City Manager Adams presented the staff report and recommended the Council adopt
a Resolution approving the integrated solid waste collection rate increase and
convert to a variable rate structure. He introduced Mr. Tom Martin from South
County Sanitary Service, who responded to questions from Council regarding
distribution of customers using the various size cans; whether the variable rate
structure would be consistent with the rate structure methodology; an explanation of
semi-variable versus 100% variable rates; clarification regarding recycling efforts;
and clarification regarding the franchise fee increase.
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Mayor Ferrara opened the Public Hearing, and upon hearing no comments, closed
the Public Hearing.
Council Member Costello supported the 7.47% rate increase; however, he did not
favor going to a variable rate structure due to the high increase in rates for large
families.
Council Member Lubin stated the variable rate structure would make people more
aware with regard to increasing recycling efforts. He suggested not reducing the 32-
gallon can cost and spreading the cost to the larger cans. He supported the variable
rate structure with a slight modification in the rates to make the increase more
equitable across the board.
Council Member Runels supported the proposed rate increase; however he stated
the increase in the variable rate structure was too severe.
Mayor Pro Tem Dickens agreed that there were inequities to the increases and was
not supportive of the variable rate structure. He supported the proposed overall rate
increase.
Mayor Ferrara stated that the City needed to remain cognizant of AB939 to maintain
a 50% waste diversion rate. He supported the 100% variable rate structure which
would encourage more recycling.
Council Member Lubin moved to adopt a Resolution approving the integrated solid
waste collection rate increase with a 100% variable rate structure, modifying the 32-
gallon can rate to $12.64 with the costs of the larger size cans to be adjusted
accordingly. Mayor Ferrara seconded the motion, and on the following roll-call vote,
to wit:
AYES: Lubin, Ferrara
NOES: Runels, Costello, Dickens
ABSENT: None
There being 2 A YES and 3 NOES, the motion failed.
Council Member Costello moved to approve the 7.47% rate increase, maintain the
existing semi-variable rate structure, and adopt a Resolution establishing integrated
solid waste collection service rates. Council Member Runels seconded the motion,
and on the following roll-call vote, to wit:
AYES: Costello, Runels, Dickens
NOES: Lubin, Ferrara
ABSENT: None
There being 3 AYES and 2 NOES, the motion is hereby declared to be passed.
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9.b. Consideration of Participation in Statewide Community Infrastructure
Program (SCIP).
City Manager Adams presented the staff report and recommended the Council adopt
a Resolution approving membership in the California Statewide Communities
Development Authority (CSCDA); and 2) Adopt a Resolution authorizing the CSCDA
to accept applications from property owners, conduct assessment proceedings and
levy assessments against the property of participating owners. He introduced Bob
Williams, SCIP administrator, who gave a brief overview of the program.
Mayor Ferrara opened the Public Hearing, and upon hearing no comments, closed
the Public Hearing.
Council Member Lubin stated he was not in favor of the program as it takes
development costs and puts it on the homeowner.
Council Member Runels stated he was not in favor of the program.
Council Member Costello expressed concern about the risks to the City and stated he
needed to have a clearer understanding of the program before he could support it.
Mayor Pro Tem Dickens agreed with Council Member Lubin and stated there could
be some benefits to some projects; however, there were too many unanswered
questions. He suggested having the City Attorney review the liability issues, direct
staff to address concerns expressed about the program's impact to multi-family and
low-income projects, and bring the item back at a future meeting for consideration.
Mayor Ferrara favored continuing the item to provide time for a legal analysis of the
program.
Following Council comments, City Manager Adams suggested the program be limited
to certain types of projects with criteria that would result in a public benefit. It was
suggested that the program could be used as an economic tool for commercial
projects.
Council Member Costello moved to direct staff to study the legal issues and bring
back the SCIP item, limiting the program to commercial projects, for further
consideration by the Council. Mayor Pro Tem Dickens seconded the motion, and on
the following roll-call vote, to wit:
AYES: Costello, Dickens, Ferrara
NOES: Runels, Lubin
ABSENT: None
There being 3 AYES and 2 NOES, the motion is hereby declared to be passed.
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10. CONTINUED BUSINESS:
10.a. Consideration of Policy/Procedure for Conducting City Council
Business.
City Manager Adams presented the staff report and recommended the Council adopt
a Resolution approving the revised Policy/Procedure for Conducting City Council
Business. He further requested direction with regard to the installation of a public
speaker timer/light based on comments received at the last Council meeting.
Mayor Pro Tem Dickens stated it was not his intention to install a speaker timer/light
at the podium.
Mayor Ferrara opened the item for public comments. The following members of the
public addressed the Council:
Colleen Martin, Arroyo Grande, opposed installation of a speaker timerllight.
John Keen, Arroyo Grande, supported placing a public comment period at end of the
meeting agenda.
Hearing no further public comments, Mayor Ferrara brought the item back to Council
for consideration.
Council Member Costello supported the revised policy as presented, and agreed that
there was no need for a speaker timer system.
Council Member Lubin did not support Item 3. Disturbance of City Council Meetings
as amended; did not support the installation of a speaker timer; supported having a
public comment period at the end of the meeting; and supported that public
comments not be limited to agenda items.
Council Member Runels had no issue with the proposed changes and supported a
public comment period at the end of the meeting.
Mayor Pro Tem Dickens supported the revised policy as presented, opposed speaker
timers/lights, and supported public comment at the end of the meeting.
Mayor Ferrara supported the revised policy as presented, opposed speaker
timers/lights, and supported public comment on any item at the end of the meeting.
Council Member Costello moved to adopt a Resolution approving the revised
Policy/Procedure for Conducting City Council Business, with amendments to the
Agenda as discussed. Council Member Runels seconded the motion, and on the
following roll-call vote, to wit:
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AYES: Costello, Runels, Dickens, Ferrara
NOES: Lubin
ABSENT: None
There being 4 AYES and 1 NO, the motion is hereby declared to be passed.
Mayor Ferrara called a break at 9:14 p.m. The Council reconvened at 9:20 p.m.
11. NEW BUSINESS
11.a. Consideration of Report on Potential Acquisition of State Water.
Director of Public Works Spagnolo presented the staff report and introduced Paavo
Ogren, San Luis Obispo County Public Works Director, who responded to questions
from Council regarding the City's potential use of State water.
Mayor Ferrara opened the item for public comment, and upon hearing none, brought
the issue back to Council for consideration.
Following discussion, there was consensus of the Council to direct staff to work with
the County to develop contingency measures for use of State water in an emergency
or in case of future needs.
11.b. Consideration of Report on Lucia Mar Unified School District's Plans
Regarding the Hidden Oaks Elementary School Site and Harloe
Elementary School.
City Manager Adams presented the staff report.
Mayor Ferrara opened the item for public comment. The following members of the
public addressed the Council:
Colleen Martin, Arroyo Grande, opposed the closure of Harloe Elementary School.
Keith Storton, Arroyo Grande, opposed the closure of Harloe Elementary School and
referred to information in the District's Long Range Facilities Master Plan regarding
enrollment statistics.
Hearing no further public comments, Mayor Ferrara brought the item back to Council
for consideration.
Following Council comments and discussion, the Council concurred that it would not
support the closure of Harloe Elementary School. Staff was directed to prepare a
letter to the Lucia Mar Unified School District urging that closure of Harloe
Elementary School no longer be included as an alternative in its funding options, and
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CITY COUNCIL MINUTES
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to establish a deadline for a joint meeting of the City Council and Lucia Mar Unified
School District Board.
11.c. Consideration of Award of Street Sweeping Contract to California Street
Maintenance.
Director of Public Works Spagnolo presented the staff report and recommended the
Council award a street sweeping contract to California Street Maintenance for three
years and authorize the Mayor to execute the contract.
Mayor Ferrara opened the item for public comment. The following members of the
public addressed the Council:
Dane Phillips, representing Daystar Industries, stated he had held the street
sweeping contract for the past 15 years and explained that the value of local service
should outweigh the small difference between his bid and the low bid from a Los
Angeles firm. He spoke of his customer service philosophy and stated he was proud .
to have served the communities of Arroyo Grande and Grover Beach.
Bob Benard, Arroyo Grande, stated that his first goal as a Daystar employee was to
reduce customer complaints in the street maintenance program. He explained that
over a four-year period, there has been a 77% reduction in complaints.
Hearing no further public comments, Mayor Ferrara brought the item back to Council
for consideration.
Council Member Lubin asked if the local preference discount was applied to the bid.
Director Spagnolo replied that the five percent local preference discount was not
applied to contracts for service providers, only for hard-cost items.
Council Member Lubin stated that the City needed to look at all the issues when
reviewing bids for service, such as longevity, relationships, and trust. He stated he
has seen a decrease in complaints on the logs and that the quality of service is good.
He stated he could support not going with the low bid in this case and could support
awarding the contract to Daystar Industries.
Council Member Runels stated there was value in having locals do business within
the City and he could support awarding Daystar's bid.
Council Member Costello stated that philosophically, he supported local service
providers. He stated that if the City was not required to go with the low bidder, it was '.
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reasonable to take track record and longevity into consideration. City Manager !1
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Adams stated that there was some flexibility in awarding contracts for professional H
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services versus construction contracts. ,
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Mayor Pro Tem Dickens expressed concerns about an unknown commodity and
stated that the City could see an increase in complaints over time. He supported
awarding a three-year contract to Daystar Industries.
Mayor Ferrara commented on the City's Economic Element policies which support
small businesses. He said awarding the contract to Daystar is consistent with the
General Plan and supported awarding the contract to Daystar.
City Manager Adams reviewed the City's position on its recommendation to award a
three-year contract to California Street Maintenance. He explained that there were
pending issues regarding Daystar's past disposal of waste that were being
investigated. City Attorney Carmel explained that no determinations had been made
at this time.
Following further discussion, Council Member Runels moved to extend Daystar's
contract on a month-to-month basis. Council Member Lubin seconded the motion.
City Attorney Carmel explained that there was a need to reject all the bids and re-bid
the contract. Council Member Runels withdrew the motion.
Council Member Runels moved to reject all street sweeping bids and direct staff to
prepare a month-to-month extension of the existing street sweeping contract with
Daystar. Council Member Lubin seconded the motion, and on the following roll-call
vote, to wit:
AYES: Runels, Lubin, Costello, Dickens, Ferrara
NOES: None
ABSENT: None
There being 5 AYES and 0 NOES, the motion is hereby declared to be passed.
11.d. Consideration of Fiscal Year 2002-03 Mid.Year Budget Status Report. I
[COUNCIURDAJ i~
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of Financial Services Snodgrass presented the staff report and li~
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recommended the Council/Board: a) Approve detailed budget adjustments and ii
recommendations; b) Approve (Deny) requests for additional appropriations in the I'
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General Fund as detailed; and c) Approve Schedules A through E inc,luded in the I'
Mid-Year Status Report.
Mayor/Chair Ferrara opened the item for public comment, and upon hearing none,
brought the item back to Council for consideration.
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CITY COUNCIL MINUTES
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Council/Board Member Lubin moved to: a) Approve detailed budget adjustments and
recommendations; b) Approve requests for additional appropriations in the General
Fund as detailed; and c) Approve Schedules A through E included in the Mid-Year
Status Report. Council/Board Member Runels seconded the motion, and on the
following roll-call vote, to wit:
Council
AYES: Lubin, Runels, Costello, Dickens, Ferrara
NOES: None
ABSENT: None
There being 5 AYES and 0 NOES, the motion is hereby declared to be passed.
RDA
AYES: Lubin, Runels, Costello, Dickens, Ferrara
NOES: None
ABSENT: None
There being 5 AYES and 0 NOES, the motion is hereby declared to be passed.
11.e. Consideration of Budget Goals for FY 2003.2004 and FY 2004.2005
(COUNCIURDA]
City Manager Adams presented the staff report and recommended the Council
approve proposed budget goals for FY 2003-2004 and FY 2004-2005.
Mayor/Chair Ferrara opened the item for public comment, and upon hearing none,
brought the item back to Council for consideration.
Council/Board Member Lubin moved to approve the proposed budget goals for FY
2003-04 and FY 2004-05. Mayor Pro TemNice-Chair Dickens seconded the motion,
and on the following roll-call vote, to wit:
Council i
AYES: Lubin, Dickens, Runels, Costello, Ferrara I
NOES: None
ABSENT: None
There being 5 AYES and 0 NOES, the motion is hereby declared to be passed.
RDA
AYES: Lubin, Dickens, Runels, Costello, Ferrara
NOES: None
ABSENT: None
CITY COUNCIL MINUTES
FEBRUARY 11, 2003
PAGE 12
There being 5 AYES and 0 NOES, the motion is hereby declared to be passed.
12. CITY COUNCIL MEMBER ITEMS
a) Request to place on future City Council Agenda report on water fluoridation.
(RUNELS)
Council Member Runels requested, and the City Council concurred, that an item be
added to the February 25, 2003 City Council agenda, which would provide
information regarding the addition of fluoride to the City's water system.
b) Request for City Council Appeal of East Village Plaza Planned Unit
Development (PUD) Case No. 02-001 Planning Commission Approval,
February 5, 2003. (DICKENS)
Mayor Pro Tem Dickens requested, and a majority of the City Council agreed, to
appeal the Planning Commission approval of the East Village Plaza project. (Note:
Wr.itten comments providing basis for the appeal was submitted for the record and is
on file in the Administrative Services Department).
13. CITY MANAGER ITEMS
None.
14. COUNCIL COMMUNICATIONS
Council Member Lubin thanked staff for sending an electronic copy of the City
Council Agenda to him in Hawaii so that he had sufficient time to review it prior to the
meeting.
15. STAFF COMMUNICATIONS
City Manager Adams reported the results of the bid opening for the issuance of
general obligation bonds for the Fire Station Expansion Project.
16. COMMUNITY COMMENTS AND SUGGESTIONS
Joel Kalzer, Arroyo Grande, commented on the SCIP item that was discussed earlier.
He also stated the City should be looking at bringing portions of rural Arroyo Grande
into the City limits to incorporate more property taxes; and he also commented on
traffic issues related to the Village.
17. ADJOURNMENT
Mayor Ferrara adjourned the meeting at 12:09 p.m.
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ATTEST:
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Deputy City Clerk/Agency Secretary .-
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