Minutes 2003-05-27
MINUTES
REGULAR MEETING OF THE CITY COUNCIUREDEVELOPMENT AGENCY
TUESDAY, MAY 27,2003
COUNCIL CHAMBERS, 215 EAST BRANCH STREET
. ARROYO GRANDE, CALIFORNIA
1. CALL TO ORDER
Mayor Ferrara called the Regular City Council/Redevelopment Agency meeting to order
at 7:10 p.m.
2. ROLL CALL
City Council: Council Members Runels, Lubin, Costello, and Mayor Ferrara were
present. Mayor Pro T em Dickens was absent.
RDA: Board Members Runels, Lubin,Costello, and Chair Ferrara were
present. Vice Chair Dickens was absent. .
City Staff Present: City Manager Adams, City Attorney C~rmel, Director of
Administrative Services Wetmore, Director of Financial Services
Snodgrass, Director of Public Works Spagnolo, Director of
Community Development Strong, Director of Parks, Recreation and
Facilities Hernandez, and Chief of Police TerBorch.
3. FLAG SALUTE
Members of Cub Scout Pack 13 led the Flag Salute.
4. INVOCATION !
Pastor Robert Banker, Open Door Church, Oceano, delivered the invocation. f
5. SPECIAL PRESENTATIONS I
;
5.a. Mayor's Commendation Presented to City Employees Shane Taylor, Kevin \
Rocha, Pete McClure, and Curtis Johnson.
Mayor Ferrara presented Certificates of CommendatiQn to Shane Taylor, Kevin Rocha,
Pete McClure, and Curtis Johnson recognizing them for their efforts to provide services
more cost-effectively to the City of Arroyo Grande.
S. AGENDA REVIEW
None.
6.a. Resolutions and Ordinances Read in Title Only
Council Member Lubin moved, Council. Member Runels 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.
CITY COUNCIUREDEVELOPMENT AGENCY MINUTES
MAY 27,2003
PAGE 2
7. CITIZENS' INPUT, COMMENTS, AND SUGGESTIONS
Connie Dunbar, Arroyo Grande resident, spoke about issues related to nuclear power
and alternative energy sources. She suggested that the City consider the use of solar in
any new government center buildings.
Ted Kapner, Arroyo Grande resident, representing concerned neighbors on E. Cherry
and Garden Street, expressed concern regarding a single-family residence on E. Cherry
being used as a drug and alcohol rehabilitation facility. He explained that the property
owner was not complying with code enforcement efforts. He stated he wanted to inform .
the City Council about the issue and that a meeting had been scheduJed with staff later
in the week to discuss the issue.
Richard Venable, Arroyo Grande resident, spoke in opposition to the addition of fluoride
in the City's drinking water.
William WaQner responded favorably to the comments regarding the use of solar panels
in future government buildings; and spoke in opposition to water fluoridation.
8. CONSENT AGENDA
Council Member Costello requested that Item 8.d. be pulled.
Council Member Costello moved, and Council Member Lubin seconded the motion to
approve Consent Agenda Items 8.a. through 8. i., with the exception of 8.d., with the
recommended courses of action. City Attorney Carmel read the title of the Ordinance in
Item 8.L The motion carried on the following roll-call vote:,
AYES: Runels, Costello, Lubin, Ferrara
NOES: None
ABSENT: Dickens
8.a. Cash Disbursement Ratification.
Action: Approved the listings of cash disbursements for the period May 1, 2003 -
May 15, 2003.
8.b. Consideration of Cash Flow Analysis/Approval of Interfund Advance from
the Water Facility Fund.
Action: Received and filed the April 2003 cash report and approve the interfund
advance from the Water Facility Fund to cover cash deficits in other funds at April
30, 2003.
8.c. Consideration of Fiscal Year 2003-04 Appropriation Limit.
Action: Adopted ResoJution No. 3678 establishing the appropriation limit from tax
proceeds for Fiscal Year 2003-04.
8.e. Consideration of Approval of Minutes.
Action: Approved the minutes of the Special and Regular City Council Meetings of
May 13, 2003 as submitted.
8.f. Consideration of Authorization to Solicit Bids for Spring 2003 Slurry Seal
Project No. PW 2003-04.
Action: 1) Authorized the Public Works Department to solicit construction bids for
the Spring 2003 Slurry Seal capital improvement project; 2) Find that the project is
CITY COUNCIUREDEVELOPMENT AGENCY MINUTES
MAY 27, 2003
PAGE 3
categorically exempt from CEQA pursuant to Section 15301 (c); and 3) Direct the
Director of Administrative Services to file a Notice of Exemption.
8.g. Consideration of Authorization to Solicit Bids for Soto Sports Complex
Lighting Project, PW 2003-02.
Action: 1) Authorized the Public Works Department to solicit public construction
bids for the Soto Sports Complex Lighting project; 2) Found that the project is
categorically exempt from CEQA pursuant to Section 15301(e); and 3) Directed
the Director of Administrative Services to file a Notice of Exemption.
8.h. Consideration of Disadvantaged Busine.ss Enterprise Program (DBE) for
FFY 2003-04.
Action: 1) Approved the submittal of the FFY 2003-04 DBE Program with
"proposed" Overall Annual DBE Goal to Caltrans by June 2, 2003; 2) Directed the
Director of Administrative Services to publish a public notice in the local media in
accordance with Section XIV of the Program; and, 3) Directed staff to return to the
City Council with a summary of public comments and approval to submit the FFY !
2003-04 DBE Program with "established" Overall Annual DBE Goal to Caltrans by
September 1, 2003.
8.L Consideration of an Ordinance Amending Title 13 of the Arroyo Grande
Municipal Code.
Action: Adopted Ordinance No. 540 repealing Sections 13.04.130 and 13.04.170
and adding Chapter 13.05 to Title 13 of the Municipal Code to provide additional
water conservation measures and to comply with State Water Code Section
10632.
Council Member Costello declared a potential conflict of interest on Item 8.d. due
to real property ownership near the project.
8.d. Consideration of Confirmation of Assessments for all Parcels within Tracts
1158 and 1769.
Recommended Action: 1) Adopt Resolution confirming landscaping assessments
of forty dollars ($40) for all parcels within Tract 1158; and 2) Adopt Resolution
confirming landscaping and lighting assessments of one hundred dollars ($100)
for all parcels within Tract 1769.
Council Member Runels moved, and Council Member Lubin seconded the motion to
approve Consent Agenda Item 8.d, with the recommended courses of action. The motion
carried on the following roll-call vote:
AYES: Runels, Lubin, Ferrara
NOES: None
ABSENT: Dickens, Costello
CITY COUNCIUREDEVELOPMENT AGENCY MINUTES
MAY 27,2003
PAGE 4
9. PUBLIC HEARINGS:
9.a. Consideration of a Proposed Ordinance Amending Chapter 16.52.150 of the
Development Code Regarding Second Residential Dwellings; Development
Code Amendment 03-003.
Community Development Director Strong presented the staff report, recommended the
Council introduce an Ordinance amending portions of Title 16 of the Municipal Code
regarding Second Residential Dwellings, and responded to questions from Council
regarding setback requirements, occupancy requirements, deed restrictions, CC&R's,
maximum slope requirements, parking requirements, and minimum lot sizes.
,
Mayor Ferrara opened the public hearing, and upon hearing no public comments, he
closed the public hearing.
Council Member Costello supported the proposed Ordinance in order to meet the State's
requirements.
Council Member Lubin stated he was uncomfortable with the requirement for owner-
occupancy as he felt it was onerous and could not be enforced. He commented that Jot
size may not be important as long as the second dwelling meets the required setbacks
and has architectural compatibility. He supported moying ahead with the Ordinance;
however he wanted to see the owner-occupied restriction removed.
Council Member Runels expressed concern with parking requirements, and stated that
on-street parking should be restricted on certain days, such as for street sweeping.
Mayor Ferrara expressed concern with the minimum lot size requirements. He
supported the owner occupancy deed restriction requirement as it ensured a means for
providing continued affordable housing. He said he would not support the Ordinance
without the deed restriction requirement.
Discussion ensued with regard to. minimum lot sizes and deed restrictions. Following
discussion, there was consensus of the Council to amend the proposed Ordinance prior
to introduction as follows: Section 1, B.1., delete the phrase "except the RE District";
delete all references of "unit" in the Ordinance; amend Table 16.32.040-A, #15, RE
District, change (G) to (~).
Council Member Costello moved to introduce the Ordinance, as modified, amending
portions of Title 16 of the Municipal Code regarding Second Residential Dwellings.
Council Member Runels seconded the motion, and on the following roll-call vote, to wit:
AYES: Costello, Runels, Ferrara
NOES: Lubin
ABSENT: Dickens
CITY COUNCIUREDEVELOPMENT AGENCY MINUTES
MAY 27,2003
PAGE 5
There being 3 AYES, 1 NO, and 1 ABSENT, the motion is hereby declared to be passed.
10. CONTINUED BUSINESS
None.
11. NEW BUSINESS
11.a. Consideration of Application to Join California Joint Powers Insurance
Authority (CJPIA).
City Manager Adams presented the staff report and recommended the Council direct the
City Manager to support consideration by the Central Coast Cities Self Jnsurance Fund
to join the California Joint Powers Insurance Authority (CJPIA) and direct staff to prepare
a resolution to approve the City's membership in the CJPIA Liability Program. He
introduced Mr. Jon Shull, who gave a brief overview of the program and distributed a
hard copy of his presentation entitled "California JPIA, Managing Risk to Protect Your
City's Future". Mr. Shull then responded to questions from Council regarding CJPIA's
methods for risk management, which would include extensive training sessions and the
performance of a risk management evaluation program.
..
Mayor Ferrara opened up the item for public comment, and upon hearing no public
comments, he closed the floor to public comment.
In response to questions by City Attorney Carmel, Mr. Shull provided an overview of
CJPIA's decision making process with regard to settlement of liability cases, and also
explained the process used in determining eligible attorneys available within the liability
program.
Following discussion. Council Member Lubin moved to direct the City Manager to
support consideration by the Central Coast Cities Self Insurance Fund (CCCSIF) to join
the California Joint Powers Insurance Authority (CJPIA) and direct staff to prepare a
resolution to approve the City's membership in the CJPIA Liability Program. Council
Member Runels seconded the motion, and on the following roll-call vote, to wit:
AYES: Lubin, Runels, Costello, Ferrara
NOES: None
ABSENT: Dickens
There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be
passed.
11.b. Consideration of Adoption of the Water and Sewer Rate Study Update and
Resolution Establishing Sewer and Water Rates and Charges.
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CITY COUNCIUREDEVELOPMENT AGENCY MINUTES
MAY 27,2003
PAGE 6
Director of PubJic Works SpagnoJo presented the staff report and recommended the
Council 1) Adopt the Water and Sewer Rate Study Update dated May 2003; 2) Provide
direction to staff on which rate structure to implement for the Water Fund; 3) Provide
direction to staff on which rate structure to implement for the Sewer Fund; and 4) Adopt
Resolution establishing new water and sewer rates and charges. Director Spagnolo
introduced Mr. Clayton Tuckfield, Tuckfield & Associates, who proceeded with a
presentation on the Water and Sewer Rate Study.
Mr. Tuckfield reviewed the Study's objectives; provided a utilities systems summary;
reviewed the water capital improvement plan; reviewed financing methods for water
capital improvement projects; reviewed the sewer capital improvement plan;. reviewed
identified financing methods for sewer capital improvement projects; provided a
comparison of projected revenue with revenue requirements for the water utility;
provided a comparison qf projected revenue with revenue requirements for the sewer I
utility; reviewed existing and proposed water rates; reviewed a water conservation rate
alternative; reviewed a chart showing typical water bills under proposed rates; provided a
comparison of residential water monthly bills with other communities; reviewed existing
and proposed sewer rates; reviewed sewer rates with water conservation; reviewed a
sewer flat rate alternative; reviewed a chart showing typical residential sewer bill under
proposed rates; provided comparison of residential sewer monthly bills with other
communities; and concluded by summarizing the Study's findi~gs and
recommendations.
Council Member Costello asked questions regarding water consumption measurements
(units vs. gallons) and suggested that the water bill show gallons instead of units so the
average consumer would understand what the usage was.
Mayor Ferrara opened up the item for public comment.
Steve Ross, Arroyo Grande resident, commented that a usage-based fee discriminated
against large families. He suggested that the sewer fee could be based on the number
of bathrooms..
John Keen, Arroyo Grande resident, commented on the tiered rate structure and said the
City needed to generate revenue. He did not favor the water conservation structure.
Hearing no further public comments, Mayor Ferrara closed the floor to public comment.
Council Member Lubin moved to approve the Water and Sewer Rate Study Update
dated May 2003. Council Member Costello seconded the motion, and on the following
roll-call vote, to wit:
AYES: Lubin, Costello, Runels, Ferrara
NOES: None
ABSENT: Dickens
CITY COUNCIL/REDEVELOPMENT AGENCY MINUTES
MAY 27,2003
PAGE 7
There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be
passed.
Council Member Lubin moved to approve Option 1 - Existing Rate Structure (without
water conservation) for the Water Fund. Council Member Costello seconded the motion
and on the following roll-call vote, to wit: '
AYES: Lubin, Costello, Ferrara
NOES: Runels
ABSENT: Dickens
There being 3 AYES, 1 NO, and 1 ABSENT, the motion is hereby declared to be passed.
Council Member Lubin moved to approve Option 1 - Existing Rate Structure (without
water conservation) for the Sewer Fund. Council Member Costello seconded the motion,
and on the following roll-call vote, to wit:
AYES: Lubin, Costello, Runels, Ferrara
NOES: . None
ABSENT: Dickens
There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be
passed.
Council Member Lubin moved to adopt a Resolution establishing sewer and water rates
and charges based on the rate structures approved by Council. Council Member
Costello seconded the motion, and on the following roll-call vote, to wit:
AYES: Lubin, Costello, Runels, Ferrara
NOES: None
AB$ENT: Dickens
There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be
passed.
11.c. Consideration of Contract with the County of San Luis Obispo for Animal
Control Services.
Chief of Police TerBorch presented the staff report and recommended the Council
approve the contract for animal control services with the County of San Luis Obispo.
Council and staff discussion ensued with regard to the increase in the contract rate.
In response to Council discussion and questions, Chief TerBorch explained that staff
explored potential alternatives for animal control services, including contracting with the
City of Santa Maria/County of Santa Barbara; starting an animaJ control program run by
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CITY COUNCIL/REDEVELOPMENT AGENCY MINUTES
MAY 27,2003
PAGE 8
the City; developing a program in partnership with surrounding communities; or reducing
the level of service of County of San Luis Obispo animal control services. He stated that.
even with the exorbitant increase in the new contract costs, when compared to the
alternative methods for providing animal control services, continuing to contract with the
County for animal controJ services continues to be the most cost effective approach.
Mayor Ferrara opened up the item for public comment, and upon hearing no public
comments, he closed the floor to public comment.
Council Member Runels moved to approve the contract for animal control services with
the County of San Luis Obispo. Council Member Costello seconded the motion, and on
the following roll-call vote, to wit:
A YES: Runels, Costello, Lubin, Ferrara
NOES: None
ABSENT: Dickens
There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be
passed.
11.d. Consideration of Third Quarter Status Report.
[COUNCIL/RDA]
Director of Financial Services Snodgrass presented the staff report and recommended
. the Council: 1) Approve detailed budget adjustments and recommendations as shown
on Schedule B; and 2) Approve Schedules A through E included in the Third Quarter
Budget Status Report.
Mayor/Chair Ferrara opened up the item for public comment, and upon hearing no public
comments, he closed the floor to public comment.
Council/Board Member Lubin moved 1) Approve detailed budget adjustments and
recommendations as shown on Schedule B; and 2) Approve Schedules A through E
included in the Third Quarter Budget Status Report. Council/Board Member Runels
seconded the motion, and on the following roll-call vote, to wit:
AYES: Lubin, Runels, Costello, Ferrara
NOES: None
ABSENT: Dickens
There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be
passed.
CITY COUNCIL/REDEVELOPMENT AGENCY MINUTES
MAY 27, 2003
PAGE 9
12. CITY COUNCIL REPORTS
a. MAYOR TONY M. FERRARA:
(1) San Luis Obispo Council of Governments/San Luis Obispo Regional
Transit Authority (SLOCOG/SLORT A). Met with Assembly Member Abel
Maldonado and Senator Bruce McPherson regarding the State's Housing
Mandate.
(2) Integrated Waste Management Authority (IWMA). Meets tomorrow; will
elect new officers.
(3) Other. Attended the Channel Counties Division Meeting in Fillmore.
b. MAYOR PRO TEM JIM DICKENS: (ABSENT)
(1) South County Youth Coalition. No report.
(2) South San Luis Obispo County Sanitation District (SSLOCSD). No
report.
(3) Other. None.
c. COUNCIL MEMBER THOMAS A. RUNELS:
(1) Zone 3 Water Advisory Board. Planted 30 pounds of trout in the Lake;
, the Lake is 64% full; the Recreation Area was sold out and full for the
Memorial Day weekend; revenue for April was up 9% over prior year;
revenue for March was down 18% over prior year; gave a status update on
the Lopez Dam remediation project; discussed the water fluoridation issue;
the water treatment plant project is progressing; conducted election of
officers.
(2) County Water Resources Advisory Committee (WRAC). No report.
(3) Other. None.
d. COUNCIL MEMBER SANDY LUBIN:
(1 ) South County Area Transit (SCAT). No report.
(2) Economic Vitality Corporation (EVC). The Board voted to approve the
Women's Business Center proposal; the EVC's Annual Event will take
place on June 5th at the Embassy Suites in San Luis Obispo.
(3) Other. None.
e. COUNCIL MEMBER JOE COSTELLO:
(1) Air Pollution Control District (APCD). Reviewed District's FY 2003-04
proposed Budget; Approved $10,000 appropriation to support an emission
control demonstration project.
(2) Other. None.
13. CITY COUNCIL MEMBER ITEMS:
None.
14. CITY MANAGER ITEMS:
None.
CITY COUNCIL/REDEVELOPMENT AGENCY MINUTES
MAY 27,2003
PAGE 10
15. COUNCIL COMMUNICATIONS:
None.
16. STAFF COMMUNICATIONS:
City Manager Adams reminded the Council of the Special City Council/Redevelopment
Agency meeting to discuss the Preliminary Budget on Thursday, May 29, 2003 at 6:30
p.m.
17. COMMUNITY COMMENTS AND SUGGESTIONS:
John Keen, Arroyo Grande resident, referred to the water conservation ordinance that
was adopted earlier in the evening and expressed concerns about water usage in the
City. He spoke about the excessive watering of landscape areas and urged the City to
educate the public about water conservation. He further requested the Council to
consider limiting the amount or square footage of grass area. on new development
projects. I
18. ADJOURNMENT
Mayor Ferrara adjourned the meeting at 10:55 p.m. to the Special City !
Council/Redevelopment Agency Meeting on Thursday, May 29,2003 at 6:30 p.m. I
1
~
'/IL9-
e, Director of Administrative Servicesl
Deputy City Clerk/Agency Secretary
(Approved at CC Mtg It? /10/03 )