Minutes 2004-07-13
MINUTES
REGULAR MEETING OF THE CITY COUNCIUREDEVELOPMENT AGENCY
TUESDAY, JULY 13,2004
COUNCIL CHAMBERS, 215 EAST BRANCH STREET
ARROYO GRANDE, CALIFORNIA
1. CALL TO ORDER
Mayor/Chair Ferrara called the ReguJar City CounciVRedeveJopment Agency meeting to order at
7:11 p.m.
2. ROLL CALL
City CounciVRDA: CounciVBoard Members Runels, Lubin, Dickens, and Mayor/Chair Ferrara
were present. Council/Board Member Costello was absent.
City Staff Present: City Manager Adams, City Attorney Carmel, Director of Administrative
Services Wetmore, Director of Public Works Spagnofo, Director of
Financial Services Snodgrass, Community Development Director Strong,
and Associate PJanner Heffernon.
3. FLAG SALUTE
Bob Carr, representing Arroyo Grande Lions CJub, led the FJag Salute.
4. INVOCATION
Pastor Paul Jones delivered the invocation.
5. SPECIAL PRESENTATIONS
5.a. Presentation of Mayor's Commendation to Fred Sweeney.
Mayor Ferrara presented a Mayor's Commendation to Fred L Sweeney for outstanding
contributions to the community through coordination of the City Hall Feasibility Study and Needs
Assessment.
5.b. Presentation by Ride-On Transportation.
Mark Shaffer, Executive Director, gave a presentation regarding Ride-On Transportation, a non-
profit organization that provides transportation services within San Luis Obispo County. He gave
an overview of the transportation services available to City of Arroyo Grande residents.
6. AGENDA REVIEW
6.a. Resolutions and Ordinances Read In Title Only
CounciVBoard Member Runels moved, Mayor Pro TemlVice Chair Lubin seconded, and the
motion passed unanimously that all resoJutions and ordinances presented at the meeting shall
be read in titJe onJy and all further reading be waived.
CounciVBoard Member Dickens requested that the Council adjourn tonight's meeting in memory
of Craig Kaiser, former Senior Advisory Commissioner, who recently passed away.
7. CITIZENS'INPUT. COMMENTS. AND SUGGESTIONS
Vern Frederick. Pismo Beach, expressed concerns that the City is accessing his property
adjacent to Reservoir No. 4 without first obtaining permission. Mayor Ferrara asked if staff is
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CITY COUNCIUREDEVELOPMENT AGENCY MINUTES
JULY 13, 2004
PAGE 2
following up on this issue. City Manager Adams responded that he believed the issue has been
resolved.
8. CONSENT AGENDA
Council/Board Member Runels requested that Item 8.k. be pulled for comment.
Mayor/Chair Ferrara requested that Item 8.L be pulled for discussion.
Council/Board Member Runels moved, and Council/Board Member Dickens seconded the
motion to approve Consent Agenda Items 8.a. through 8.j., with the exception of items 8.L and
8.k., with the recommended courses of action. The motion carried on the following roll-call vote:
AYES: Runels, Dickens, Lubin, Ferrara
NOES: None
ABSENT: Costello
8.a. Cash Disbursement Ratification.
Action: Approved the listing of cash disbursements for the period June 16, 2004 through
June 30, 2004.
8.b. Statement of Investment Deposits.
Action: Received and filed the report of current investment deposits as of June 30, 2004.
8.c. Consideration of Award of Contract to MAXIMUS for Mandated Cost Recovery
Services.
Action: Adopted Resolution No. 3759 authorizing the City Manager to enter into a
binding agreement with MAXJMUS for mandated cost recovery services.
8.d. Consideration of Approval of Minutes.
Action: Approved the minutes of the Regular City Council Meeting of June 22, 2004 as
submitted.
8.e. Consideration of a Resolution Establishing Policy to Waive Permit Application
Fees for Certain Annual Temporary Use Permits.
Action: Adopted Resolution No. 3760 modifying the policy and procedure regarding
waiving permit application fees for certain annual Temporary Use Permits.
8.1. Consideration of Compensation Adjustment for Part-Time Employees.
Action: Adopted Resolution No. 3761 approving a 3% Cost of Living (COLA) adjustment
for Part-time Employees for FY 2004-05 and a 5% COLA for Police Reserve positions.
8.g. Consideration of Compensation Adjustment for Fire Volunteers and the Fire
Mechanic Position.
Action: Adopted Resolution No. 3762 approving a Cost of Living Adjustment (COLA) of
5% for the Fire Volunteers Stipend Program and for the Fire Mechanic part-time pay for
FY 2004-05.
8.h. Consideration of Annual Agreement with the San Luis Obispo County Visitors &
Conference Bureau. [COUNCIURDA]
Action: Authorized the Mayor to execute the annual Agreement with the San Luis Obispo
County Visitors and Conference Bureau (SLOCVCB).
8.j. Consideration of Management Salary Range for the Accounting Supervisor
Position.
Action: Adopted Resolution No. 3763 establishing the management salary range for the
position of Accounting Supervisor.
CITY COUNCIUREDEVELOPMENT AGENCY MINUTES
JUL Y 13, 2004
PAGE 3
8.i. Consideration of Annual Agreement with the Economic Vitality Corporation of San
Luis Obispo County. [COUNCIURDA]
Recommended Action: Authorize the Mayor to execute the annual Agreement with the
Economic Vitality Corporation of San Luis Obispo County (EVCSLOC).
Mayor/Chair Ferrara requested whether information from the EVC was available detailing the
direct benefits the City receives from the EVC, such as recipients of the Small Business Loan
Program, and the number of business referrals to the City. Mayor Pro TemNice Chair Lubin
explained that information was provided on a monthly basis and that the Council/RDA could be
provided with an annual report from the EVC identifying referrals to the City and participants in
the Small Business Loan Program. Staff was directed to follow up on this item.
8.k. Consideration to Approve a Revised Consultant Services Agreement with Tenera
Environmental to Provide Services in Conjunction with the Annual Creek Cleaning
Program.
Recommended Action: 1) Approve a revised consultant services agreement with
Tenera Environmental for services in conjunction with the annual creek cleaning program
in the amount of $13,925.00; and 2) Authorize the Mayor to execute the agreement.
Council Member Runels expressed concerns regarding the purpose of this proposal, as well as
the costs to the City. Director Spagnolo gave an overview of the process required by the City
prior to commencing the creek cleaning program.
Council Member Runels moved, and Mayor Pro Tem Lubin seconded the motion to approve
staff's recommendations for Jtems 8.i and 8.k. The motion carried on the following roll-call vote:
AYES: Runels, Lubin, Dickens, Ferrara
NOES: None
ABSENT: Costello
9. PUBLIC HEARINGS
9. Consideration of Adoption of Ordinance and Resolution Regarding Underground
Utilities and the Establishment of an Underground Utility In-Lieu Fee.
City Manager Adams introduced Administrative Jntern Jon Ansolabehere. Mr. Ansolabehere
presented the staff report and recommended the Council: 1) Adopt the Ordinance amending
Arroyo Grande Municipal Code Section 16.68.050 regarding underground utilities; and 2) Adopt
a Resolution establishing an underground utility in-lieu fee.
Mayor Ferrara opened the public hearing, and upon hearing no comments, he closed the public
hearing.
Council Member Dickens moved to adopt an Ordinance as follows: "AN ORDINANCE OF THE
CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING ARROYO GRANDE
MUNICIPAL CODE SECTION 16.68.050 REGARDING UNDERGROUND UTILITIES AND THE
ESTABLISHMENT OF AN UNDERGROUND UTILITY IN LIEU FEE". Council Member Runels
seconded the motion, and on the following roll-call vote:
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CITY COUNCIUREDEVELOPMENT AGENCY MINUTES
JUL Y 13, 2004
PAGE 4
AYES: Dickens, Runels, Lubin, Ferrara
NOES: None
ABSENT: Costello
There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be passed.
Council Member Dickens moved to adopt a Resolution as follows: "A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF ARROYO GRANDE SETTING FORTH THE AMOUNT OF
THE CITY OF ARROYO GRANDE'S UNDERGROUND UTILITY IN-LIEU FEE". Council
Member Runels seconded the motion, and on the following roll-call vote:
AYES: Dickens, Runels, Lubin, Ferrara
NOES: None
ABSENT: Costello
There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be passed.
9.b. Continued Public Hearing - Consideration of Tentative Tract Map Case No. 04-001;
Condominium Tract Map for a Previously Approved 60-Unit Senior Apartment
Complex; 579 Camino Mercado; Camino Mercado Partners, LP.
Associate Planner Heffernon presented the staff report and recommended the Council adopt a
Resolution approving Tentative Tract Map 04-001. She responded to questions from Council
regarding mitigation for oak tree removal; clarification of staff's recommendations regarding fee
credits; conditioning the project so that the Senior Center was dedicated in perpetuity; how the
Senior Center would be managed and maintained; whether or not the Homeowners Association
fee would be same for all residents; clarification regarding the type of housing and the applicant's
rationale for converting from apartments to condominiums; and whether a comprehensive survey
was conducted of seniors concerning ownership versus renting.
Jason BlankenshiD, representing the applicant, distributed results of two surveys conducted
regarding rent versus ownership. He explained that one survey was conducted at an AARP
meeting and the other was conducted at a Five Cities Senior meeting. He expJained that while
not too scientific, the survey results showed a preference among seniors for ownership.
Mayor Ferrara opened the public hearing.
Rav Abdun-Nur, Via Las Aguilas, expressed concerns that fuel modification and weed
abatement had not been completed on the subject property and inquired why the City was not
enforcing its regulations. He expressed concerns about the future conversion of the proposed
Senior Center to another use and who would clean and maintain the Senior Center.
Hearing no further public comments, Mayor Ferrara closed the public hearing.
Council Member Dickens addressed the issue of rental units versus condominiums. He referred
to the Courtland senior housing project which will provide rental units and stated that this project
would help serve other segments of the senior population. He commented that this project
meets the goals of the City's Housing Element. He requested language be added in the
conditions of approval that the Senior Center be dedicated in perpetuity for general public use by
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CITY COUNCIUREDEVELOPMENT AGENCY MINUTES
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PAGE 5
South County seniors, and assurances that it will be adequately maintained. He acknowledged
. that the concerns expressed regarding weed abatement would be referred to staff for follow-up.
He concluded by supporting the proposed condition regarding affordable housing units as
recommended by staff and agreed with the proposed fee credits.
Council Member Runels agreed that this was a worthy project; supported the staff proposed
affordable housing unit allocation; supported a condition that requires dedication of the Senior
Center for use by South County seniors in perpetuity; and supported inclusion of a provision
concerning continued maintenance of the Senior Center. He supported the project as proposed.
In response to Mayor Pro Tern Lubin's questions concerning maintenance responsibilities, City
Attorney Carmel referred to the proposed Conditions, Covenants & Restrictions (CC&Rs) for the
project that include provisions for maintenance responsibilities. Mayor Pro Tern Lubin asked if
there was any benefit for using a deed restriction. City Attorney Carmel explained that there was
adequate protection in place and there was no need for a deed restriction.
Mayor Pro Tem Lubin supported the recommended condition for affordable housing units;
expressed concern about daily maintenance of the Senior Center; favored the project, stating
that the seniors need the housing and a senior center; stated that the project provided seniors an
opportunity for ownership; and stated that the project would result in a traffic signal at Camino
Mercado and W. Branch.
Mayor Ferrara asked for an update on the Courtland senior housing project. City Manager
Adams gave an update, stating that the applicant has received tax credits for the project. Mayor
Ferrara stated that the issue for providing senior rental units at this location was less important
now since the Courtland senior housing project would be moving forward and would provide
rental units. He supported staff's recommendation for allocation of affordable housing units.
Mayor Pro Tern Lubin moved to adopt a Resolution as follows: "A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING TENTATIVE TRACT MAP
CASE NO. 04-001, LOCATED AT 579 CAMINO MERCADO, APPLIED FOR BY CAMINO
MERCADO PARTNERS, Lpn. Council Member Runels seconded the motion. Council Member
Dickens asked staff to review the amendments to the Resolution and whether the motion
included the amendments.
City Attorney Carmel reviewed the amendments to the Resolution, as follows: Condition #21 to
read as follows: "The applicant shall submit CC&Rs that are administered by a subdivision
homeowners' association formed by the applicant. The CC&Rs shall include provisions for
ownership, maintenance in good condition, and repair of common areas within the subdivision
including, but not limited to the Senior Center."; New Condition #62 to read as follows: "Senior
Center Agreement - Prior to issuance of the Certificate of Occupancy, the applicant shall enter
into an agreement with a private, non-profit entity or public entity for the operation of the Senior
Center (currently shown as Lot 62) within the project for the maximum benefit of the Arroyo
Grande and South County senior citizen community. The Agreement shall be in perpetuity and
shall be subject to the approval of the City Manager and City Attorney."; and existing Condition
#62 will be renumbered to Condition #63.
CITY COUNCIUREDEVELOPMENT AGENCY MINUTES
JUL Y 13, 2004
PAGE 6
Mayor Pro Tem Lubin agreed to amend his motion to include the modifications to the Resolution
as stated by the City Attorney, Council Member Runels seconded the amended motion, and on
the following roll-call vote:
AYES: Lubin, Runels, Dickens, Ferrara
NOES: None
ABSENT: Costello
There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be passed.
9.c. Consideration of a Resolution Modifying Development Impact Fees for Low and
Very Low Income Affordable Housing Units.
. City Manager Adams presented the staff report and recommended the Council adopt a
Resolution modifying development impact fees for low and very low-income affordable housing
units.
In response to a question from Mayor Pro Tem Lubin, City Manager Adams explained that the
modification of the development impact fees would appJy to the two senior projects currentJy
being proposed.
Mayor Ferrara expressed concern regarding potentiaJ fiscal impacts to the City should the
RegionaJ Housing Needs Plan numbers change.
Mayor Ferrara opened the public hearing, and upon hearing no comments, he closed the public
hearing.
Council Member Dickens moved to adopt a Resolution as follows: "A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF ARROYO GRANDE MODIFYING THE DEVELOPMENT
IMPACT FEE SCHEDULE". Mayor Pro Tem Lubin seconded the motion, and on the following
roll-call vote:
AYES: Dickens, Lubin, Runels, Ferrara
NOES: None
ABSENT: Costello
There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be passed.
10. CONTINUED BUSINESS
None.
11. NEW BUSINESS
11.a. Consideration of Fiscal Year 2004-05 Budget Update.
Director of Financial Services Snodgrass presented the staff report and recommended the
Council: 1) Approve detailed budget adjustments and recommendations as shown in Schedule
B; and 2) Approve ScheduJes A through D included in the Budget Update Report.
CITY COUNCIUREDEVELOPMENT AGENCY MINUTES
JULY 13, 2004
PAGE 7
Mayor Ferrara opened the item for public comment, and upon hearing none, he closed the public
comment period.
Council Member Runels moved to approve detailed budget adjustments and recommendations
as shown in Schedule B; and approve Schedules A through D included in the Budget Update
Report. Council Member Dickens seconded the motion, and on the following roll-call vote:
AYES: Runels, Dickens, Lubin, Ferrara
NOES: None
ABSENT: Costello
There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be passed.
11.b. Consideration of Approval of an Agreement with the City of Grover Beach to
Provide Joint Street Sweeping Services.
Director of Public Works Spagnolo presented the staff report and recommended the Council: 1)
Approve an Agreement with the City of Grover Beach to provide street sweeping services and
authorize the Mayor to execute the Agreement; 2) Authorize. the solicitation of equipment bids;
and 3) Authorize one additional maintenance worker position in the Public Works Department.
Staff responded to questions from Council concerning maintenance of the in-house equipment;
time requirements and scheduling issues; cost savings to the City; and how growth and an
increase in curb miles would be accommodated with the proposed resources.
Mayor Ferrara opened the item for pUblic comment.
Dane PhiIliDS, Arroyo Grande, stated that he was stepping down from Daystar Industries and he
introduced Sean St. Denis, SP Maintenance Services, who was taking over his client list and
would provide good service to the City.
Sean St.Denis, SP Maintenance Services, gave a background of his street sweeping business
and confirmed that he had acquired Daystar's customers. He referred to the staff report and
disagreed with some of the information presented with regard to labor and equipment costs,
based on his experience and observation.
Upon hearing no further public comments, Mayor Ferrara closed the public comment period.
Council Member Runels acknowledged that he has been an advocate of bringing the street
sweeping service in-house. He commented that this was an opportunity to try it on a trial basis
to see if it could be successful.
Council Member Dickens expressed concern that the issues were providing satisfactory service
to the community and fiscal responsibility. He stated that he was not comfortable that this
proposal would have a positive fiscal result. He acknowledged that complaints about street
sweeping that he has received have decreased significantly over past years. He recommended
giving SP Maintenance. Services a .chance to take over the service and rejecting staffs
recommendation.
CITY COUNCIUREDEVELOPMENT AGENCY MINUTES
JULY 13, 2004
PAGE 8
Mayor Pro Tem Lubin expressed concerns about cost recovery. He stated that he generally
prefers to subcontract services of this nature to a professional and that he was not comfortabJe
bringing this service in-house based on such a projected small savings to the City. He
suggested rejecting staff's recommendation and either soliciting new bids or approving a
continuation of the existing month-to-month contract and its assignment to SP Maintenance.
Mayor Ferrara asked if the City could conduct a one-year trial and what would happen to the full-
time Maintenance Worker the City wouJd hire should the City discontinue the service in-house.
He expressed concerns about the fueJ costs and the potential for discrepancy in the proposed
figures and aJso expressed concern with equipment downtime. There was further discussion on
the benefits to performing the service in-house on a trial basis, and the need to further clarify the
discrepancies concerning labor and fuel costs.
City Manager Adams asked the Council to continue the item to give staff an opportunity to refine
and confirm information in the staff report and to address Council's questions.
Mayor Pro Tem Lubin moved to continue the item to a date uncertain. Council Member Dickens
seconded the motion, and on the following roll-call vote:
AYES: Lubin, Dickens, RuneJs, Ferrara
NOES: None
ABSENT: Costello
There being 4 AYES and 1 ABSENT, the motion is hereby declared to be passed.
11.c. Consideration of East Grand Avenue Streetscape Enhancement at Courtland Street
Intersection Corners, City of Arroyo Grande Proposals.
Community Development Director Strong presented the staff report and recommended the
Council: 1) Accept the offer of dedication from Gill's Market owners for an Easement; 2)
Authorize the Mayor to execute a Certificate of Acceptance and record subject to the terms and
conditions outlined, and 3) Appropriate $30,000 for City streetscape enhancements incJuding a
low screen wall, elimination of a driveway, new landscaping on the northeast corner and
reJocation of signal control equipment boxes on the southeast corner of the site.
Mayor Ferrara opened the item for pUblic comment, and upon hearing no public comments, he
cJosed the pUblic comment period.
Council Member Runels moved to accept the offer of dedication from Gill's Market owners for an
Easement; authorize the Mayor to execute a Certificate of Acceptance and record subject to the
terms and conditions outlined, and appropriate $30,000 for City streetscape enhancements
including a low screen wall, elimination of a driveway, new landscaping on the northeast corner
and relocation of signal control equipment boxes on the southeast corner. Mayor Pro Tem Lubin
seconded the motion, and on the following roll-call vote:
AYES: RuneJs, Lubin, Dickens, Ferrara
NOES: None
ABSENT: Costello
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CITY COUNCIUREDEVELOPMENT AGENCY MINUTES
JULY 13, 2004
PAGE 9
There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be passed.
12. CITY COUNCIL MEMBER ITEMS
a) Request to place on future agenda consideration of formal City opposition to the Gaming
Revenue Act of 2004. (FERRARA)
Mayor Ferrara requested, and the Council agreed, to place on a future agenda consideration of a
formal position on the Gaming Revenue Act of 2004.
b) Request to place on future agenda consideration of formal position on Halcyon/Highway
1 Realignment Project proposed by the County of San Luis Obispo. (DICKENS)
Council Member Dickens requested, and the Council agreed, to place on a future agenda
consideration of a formal position on the County's Halcyon/Highway 1 Realignment Project
proposal.
c) Request from Council Member Runels - Orchard Avenue (RUNELS)
Council Member Runels requested, and the Council agreed, to place on a future agenda
consideration of the proposal by the Busick Tract regarding Orchard Avenue.
13. CITY MANAGER ITEMS
None.
14. COUNCIL COMMUNICATIONS
Mayor Ferrara announced that the next League of California Cities Channel Counties Division
meeting would be held in Camarillo on Friday, July 23, 2004.
Council Member Dickens reported that he would not be present at the next Council meeting of
July 27, 2004.
15. STAFF COMMUNICATIONS
City Manager Adams announced that the Arroyo Grande Fire Station Dedication and Open
House would be held on Saturday, July 24th at 11 :00 a.m. and invited the City Council and
members of the public to attend.
16. COMMUNITY COMMENTS AND SUGGESTIONS:
Vem Frederick, Pismo Beach, requested that the City notify him before anyone accesses his
property to get to the Reservoir No. 4 site.
17. ADJOURNMENT
Mayor/Chair Ferrara adjourned the meeting at 10:34 p.m. in memory of Craig Kaiser.
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CITY COUNCIUREDEVELOPMENT AGENCY MiNUTES
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PAGE 10
J~~~~
Tony rar , Mayor/Chair
ATTEST:
Kelly~,l~~lveservl~
Deputy City Clerk/Agency Secretary
(Approved at CC Mtg 1- ~ 1- c1)
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