Minutes 1996-06-06
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MINUTES
SPECIAL MEETING OF THE CITY COUNCIL
THURSDAY, JUNE 6, 1996
CITY COUNCIL CHAMBERS, 215 EAST BRANCH STREET
ARROYO GRANDE, CALIFORNIA [
1. CALL TO ORDER
The City Council met in regular session at 7:30 p., with Mayor A. K. nPeteR Dougall
presiding.
2. ROLL CALL
Present with Mayor Dougall. were Mayor Pro Tern James Souza and Council Members
Drew Brandy, Michael Fuller, and Michael Lady. Staff members present were City
Manager Robert L. Hunt, City Attorney Timothy J. Carmel, City Clerk Nancy Davis,
Community . Development Director Doreen Liberto-Blanck, Public Works Director John
WaUace, Finance Director David Bacon, Parks and Recreation Director John Keisler,
Chief of Police Rick TerBorch, Interim Director of Building and Fire Winton Tullis, and
Police Commander Bill Andrews.
3. AGENDA REVIEW
Non-e.
4. ORAL COMMUNICATIONS
None.
5. PRESENTATION OF FY 1996-97 PRELIMINARY BUDGET
The City Manager reviewed the Preliminary Budget and said it contained no new
personnel or capital equipment and, in terms of services ~nd supplies, the major
addition is the General Plan Update, with the cost split between two fiscal years. He
said included in the proposed budget is a formal capital improvement program, which
is a new approach to identifying capital expenditures. He said it now appears that the
State budget will not negatively impact cities, but a number of issues pending in
Sacramento and the court system could significantly affect Arroyo Grande's economic
picture. He said these uncertainties could be resolved by the end of this calendar
year and the City's fiscal position will not truly be known until November or December.
He said although the economy is slowing improving, staff is taking an extremely r
conservative approach to estimating revenues. He said Council was starting the
process with a deficit balance of approximately $190,000 and recommended that the
preliminary base budget be discussed first and then, if there are sufficient funds, the
Policy Items. 'L.,
Mr. Hunt began the departmental reports. He said the City Administration budget
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includes two additional items - the new Management Information Systems (MIS)
Division (a consolidation of computer and computer-related costs) and the Non-
Departmental activity (expenditures that are not department-specific).
The City Manager and Department Directors discussed department expenditures
answering Council questions as they went along. In the Community Development
Department, Ms. Liberto-Blanck explained the budget was status quo except for a
General Plan Update, which would cover the Fiscal Years of 1996-97 and 1997-98.
The City's ISO (Insurance Services Organization) rating was discussed and Council
directed Interim Chief Tullis to work on the task of lowering the City's ISO rate. Mr.
Hunt described the Transit Systems Department and the Parking . Improvement District
are "pass through" items.
Mayor Dougall invited the public to come forward and comment on the Preliminary
Budget. No one came forward to speak.
Council Members discussed the budget and decided to defer approval of capital
equipment purchases until December, 1996 in order to balance the budget at this
. time. They said more information is needed on California Supreme Court decision
Santa Clara v. Guardino. which concerns taxes levied by City Councils without
obtaining a vote of the people, and Senate Bill 1590. Mr. Hunt said if circumstances
change on this matter sooner than the end of the year, he would bring the budget
back to the Council. The Council agreed to this plan.
It was moved by Lady/Brandy, and the motion passed unanimously on a roll call vote
(5-0-0, Lady, Brandy, Fuller, Souza, and Dougall voting aye) to adopt Resolution No.
3146 Adopting the Fiscal Year 1996-97 Annual Budget and Making Appropriations for
the Amount Budgeted.
There was Council consensus also to defer Policy Items requested by the
Departments until there is more information or action at the State level.
6. CITY COUNCil REPORTS
(a) Council Member Brandy reported on recent activities of Zone 3 Water Advisory
Committee, on which he represents the City Council.
1. There is a "Gentlemen's Agreement" among the South County governmental
entities concerning use and distribution of underground water. He said State and
United States Geodesic Survey officials are evaluating the underground water in the
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JUNE 6, 1996
South County and will be studying the agreement. [
2. Water is being released from Lopez Dam because of concerns about seismic
safety.
3. Due to a m~ter reading error, Arroyo Grande has received a rebate of $11,000 and
will be receiving $3,000 or $4,000 more.
4. Peter Keith of Grover Beach will selVe on the Zone 3 Board.
5. Distribution of Lopez Water costs are being discussed so that the agencies taking
State Water will pay greater shares.
Council Member Brandy said a question has risen as to whether Arroyo Grande
should pay for enlargement of a line in the State Water project to give Arroyo Grande
emergency water should the need arise. Council Members directed staff to place this
matter on the June 25, 1996 City Council Agenda.
7. WRITTEN COMMUNICATIONS
None.
8. ADJOURNMENT
It was moved by Souza/Lady and the motion passed unanimously to adjourn the
meeting at 9:56 p.m.
Q~
71 tWUt;; (f. ~ [.
NANCY A. AVIS, CITY CLERK
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CITY COUNCIL MINUTES
MAY 29, 1996
J. WRITTEN COMMUNICATIONS
None.
8. ADJOURNMENT
It was moved by Lady/Souza of the City Council and Tappan/Deviny
of the Planning Commission and the motion passed unanimously to
adjourn the joint meeting at 8:20 p.m.
A. K. "PETE" .
COMMISSION CHAIRPERSON
ATTEST: '11 a. ~
NANCY~IS, CITY CLERK
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