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Agenda Packet 2005-01-11 CITY OF City Council Agenda Tony M. Ferrara Mayor Steven Adams City Manager Joe Costello Mayor Pro Tern ~LlFOR~t Timothy J. Carmel City Attorney Jim Dickens Council Member Kelly Wetmore City Clerk Ed Arnold Council Member ~- ~ '. Jim Guthrie Council Member AGENDA SUMMARY CITY COUNCIUREDEVELOPMENT AGENCY MEETING TUESDAY, JANUARY 11, 2005 7:00 P.M. Arroyo Grande City Council Chambers 215 East Branch Street, Arroyo Grande 1. CALL TO ORDER: 7:00 P.M. 2. ROLL CALL: COUNCIL/RDA 3. FLAG SALUTE: VFW 2829 4. INVOCATION: PASTOR GEORGE LEPPER, PEACE LUTHERAN CHURCH, ARROYO GRANDE 5. SPECIAL PRESENTATIONS: None. 6. AGENDA REVIEW: 6a. Move that all resolutions and ordinances presented tonight be read in title only and all further readings be waived. ___"____n_______.......__.__ AGENDA SUMMARY - JANUARY 11, 2005 PAGE 2 7. COMMUNITY COMMENTS AND SUGGESTIONS: This public comment period is an invitation to members of the community to present issues, thoughts, or suggestions on matters not scheduled on this agenda. Comments should be limited to those matters that are within the jurisdiction of the City Council. The Brown Act restricts the Council from taking formal action on matters not published on the agenda. In response to your comments, the Mayor or presiding Council Member may: . Direct City staff to assist or coordinate with you. . A Council Member may state a desire to meet with you. . It may be the desire of the Council to place your issue or matter on a future Council agenda. Please adhere to the following procedures when addressing the Council: . Comments should be limited to 3 minutes or less. . Your comments should be directed to the Council as a whole and not directed to individual Council members. . Slanderous, profane or personal remarks against any Council Member or member of the audience shall not be permitted. 8. CONSENT AGENDA: The following routine items listed below are scheduled for consideration as a group. The recommendations for each item are noted. Any Council Member may request that any item be withdrawn from the Consent Agenda to permit discussion or change the recommended course of action. The City Council may approve the remainder of the Consent Agenda on one motion. 8.a. Cash Disbursement Ratification (PILLOW) Recommended Action: Ratify the listing of cash disbursements for the period December 1, 2004 through December 31, 2004. 8.b. Statement of Investment DeDoslts (PILLOW) Recommended Action: Receive and file the report of current investment deposits as of November 30, 2004. 8.c. Consideration of Annual Adiustment of Sewer Connection Fees (PILLOW) Recommended Action: Adopt Resolution approving the annual adjustment to the sewer connection fees based on changes in the Engineering News Record (ENR) Construction Cost Index. 8.d. Consideration of ADDroval of Minutes (WETMORE) Recommended Action: Approve the minutes of the Regular City Council Meeting of November 23, 2004; Special City Council Meetings of December 6, 2004 and December 14, 2004; and the Regular City Council/Redevelopment Agency Meeting of December 14, as submitted. 8.e. Consideration of Reiectlon of Claim Aaalnst City - S. Autrv (WETMORE) Recommended Action: Reject claim. AGENDA SUMMARY - JANUARY 11, 2005 PAGE 3 8. CONSENT AGENDA (continued): 8.f. Consideration of Modification to the Procedure for Selection of the Mayor Pro Tem (ADAMS) Recommended Action: Approve the proposed addition to the procedure for selection of the Mayor Pro T em. 8.g. Consideration of Council ADDointment to Plannina Commission (ADAMS) Recommended Action: Approve the recommendation of Council Member Guthrie to appoint Chuck Fellows to the Planning Commission. 8.h. Consideration of AcceDtance of the Office of Traffic Safety Grant (FIBICH) Recommended Action: Accept the Office of Traffic Safety Grant in the amount of $250,000. 8.L Consideration of a Resolution Consentina to the Assianment of a Communications Site Lease Aareement from Cinaular Wireless to T -Mobile USA, Inc. (CARMEL) Recommended Action: Adopt Resolution consenting to the assignment of a Communications Site Lease Agreement dated January 14, 2004, from Cingular Wireless to T -Mobile USA, Inc. 8.j. Consideration of Award of Contract to Lee Wilson Electric COmDany for Construction of the Creekside Path, Phase III Liahtina Proiect. PW 2004-03 (SPAGNOLO) Recommended Action: 1) Award a contract for the construction of the Creekside Path, Phase III Lighting Project, PW 2004-03 to Lee Wilson Electric Company in the amount of $20,676; 2) Authorize the City Manager to approve change orders not to exceed the contingency of $2,068 for use only if needed for unanticipated costs during the construction phase of the project; 3) Transfer $10,000 from the Downtown Parking Fund and $10,000 from the General Fund to the project account; and 4) Direct staff to proceed with fundraising efforts for Phase II of the "Let There Be Light" Program, seeking $3,500 per light to install historic decorative lights along E. Branch Street and committing to budget $500 per light in City funds for installation. 8.k. Consideration to ADDrove an Interaaency Aareement with the ~outh San Luis ObisDO County Sanitation District for the Administration of the Waste Dlscharae Reaulrements ImDosed by the Reaional Water Qualltv Control Board (SPAGNOLO) Recommended Action: 1) Approve Agreement authorizing the South San Luis Obispo Sanitation District to administer the development of a monitoring and reporting program as well as to prepare the annual reports to the Regional Water Quality Control Board on behalf of the City of Arroyo Grande; and 2) Authorize the City Manager to execute the Agreement. AGENDA SUMMARY - JANUARY 11, 2005 PAGE 4 8, CONSENT AGENDA (continued): 8.1. Consideration to ADDrove a Consultant Services Aoreement with Wood Rodaers. Inc. to PreDare a Prolect ADDroval and Environmental Determination (PA&ED) for the Brisco Road-Halcyon RoadIRoute 1011nterchanae (SPAGNOLO) Recommended Action: 1) Approve consultant services agreement with Wood Rodgers, Inc. to prepare a Project Approval and Environmental Determination (PA&ED) for the BriscoRoad-Halcyon Road/Route 101 Interchange in the amount of $370,925; 2) Authorize the Mayor to execute the agreement; and 3) Appropriate $65,925 from the Transportation Facility Fund. 9. PUBLIC HEARINGS: None. 10. CONTINUED BUSINESS: None. 11, NEW BUSINESS: 11.a. Consideration to AcceDt the UDdated City Traffic Model (SPAGNOLO) Recommended Action: Accept City Traffic Model Update. 11.b. Consideration of Resolution ADDrovlnq Fundlno Assistance for The Famllv Care Network. Inc. Transitional Affordable Houslna Proiect (ADAMS) [COUNCIURDA] Recommended Action: Adopt Resolution approving $50,000 in Redevelopment Housing Assistance for The Family Care Network, Inc. foster care transitional housing project and the Affordable Housing Agreement. 12. CITY COUNCIL MEMBER ITEMS: The following item(s) are placed on the agenda by a Council Member who would like to receive feedback, direct staff to prepare information, and/or request a formal agenda report be prepared and the item placed on a future agenda. No formal action can be taken. None. 13. 91TY MANAGER ITEMS: The following item(s) are placed on the agenda by the City Manager in order to receive feedback and/or request direction from the Council. No formal action can be taken. None. AGENDA SUMMARY - JANUARY 11, 2005 PAGE 5 14. COUNCIL COMMUNICATIONS: Correspondence/Comments as presented by the City Council. 15. STAFF COMMUNICATIONS: Correspondence/Comments as presented by the City Manager. 16. COMMUNITY COMMENTS AND SUGGESTIONS: This public comment period is an invitation to members of the community to present issues, thoughts, or suggestions. Comments should be limited to those matters that are within the jurisdiction of the City Council. The Brown Act restricts the Council from taking formal action on matters not published on the agenda. 17. ADJOURNMENT .......................... All staff reports or other written documentation relating to each item of business referred to on the agenda are on file in the Administrative Services Department and are available for public inspection and reproduction at cost. If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by the Americans with Disabilities Act. To make a request for disability-related modification or accommodation, contact the Administrative Services Department at 805-473-5414 as soon as possible and at least 48 hours prior to the meeting date. ......................... Note: This agenda was prepared and posted pursuant to Government Code Section 54954.2. www.arroyogrande.org 8.a. MEMORANDUM TO: CITY COUNCIL ANGELA PillOW, DIRECTOR OF FINANCIAL SERVICE~ FROM: BY: FRANCES R. HEAD, ACCOUNTING SUPERVISO~ SUBJECT: CASH DISBURSEMENT RATIFICATION DATE: JANUARY 11, 2005 RECOMMENDATION: It is recommended the City Council ratify the attached listing of cash disbursements for the period December 1 - December 31,2004. FUNDING: There is a $2,753,303.96 fiscal impact. All payments are within the existing budget. DISCUSSION: The attached listing represents the cash disbursements required of normal and usual operations. It is requested that the City Council approve these payments. AL TERNA TIVES: The following alternatives are provided for the Council's consideration: . Approve staffs recommendation; . Do not approve staffs recommendation; . Provide direction to staff. Attachments: Attachment 1 - Cash Disbursement Listing Attachment 2 - December 03, 2004, Accounts Payable Check Register Attachment 3 - December 09, 2004, Accounts Payable Check Register Attachment 4 - December 10, 2004, Payroll Checks and Benefit Checks Register Attachment 5 - December 16, 2004, Accounts Payable Check Register Attachment 6 - December 22, 2004, Payroll Checks and Benefit Checks Register Attachment 7 - December 30, 2004, Accounts Payable Check Register A IT ACHMENT 1 CITY OF ARROYO GRANDE CASH DISBURSEMENTS 77M ~ 'PeWld ~ '[)~ 1 7~ '[)~ 31. 2004 " w@," "w' "" ~, " ,,' "w' "~,,, ,",' '" ,,' "'_""""""0/ January 11, 2005 Presented are the cash disbursements issued by the Department of Financial Services for the period December 1 to December 31, 2004. Shown are cash disbursements by week of occurrence and type of payment. I WEEK TYPE OF PAYMENT ATIACHMENT AMOUNT December 4, 2004 Accounts Payable Cks 118648-118740 2 $ 100,457.86 December 11, 2004 Accounts Payable Cks 118743-118837 3 $ 402,271.37 Payroll Checks and Benefit Checks 4 425,452.33 $ 827,723.70 December 18, 2004 Accounts Payable Cks 118859-118945 5 $ 351,957.89 December 25, 2004 Payroll Checks and Benefit Checks 6 $ 362,61213 December 31, 2004 Accounts Payable Cks 118946-119067 7 $ 1,110,552.38 FOUR WEEK TOTAL $ 2,753,303.96 U:\MSWORD\ OTY COUNCIL FORMS\ CASH DISBURSEMENT SCHED wEXCEL WKS.doc CITY OF ARROYO GRANDE INDEX FOR BUDGET DEPARTMENTS EDEN COMPUTER SYSTEM GENERAL FUND (010) SPECIAL REVENUE FUNDS City Government (Fund 010) Park Development Fee Fund (Fund 213) 4001 - City Council 4550 - Park Development Fee 4002 - Administrative Services Traffic Signal Fund (Fund 222) 4003 - City Attorney 4501 - Traffic Fund 4101 - City Manager Transportation Fund (Fund 225) 4102 - Printing/Duplicating 4553 - Public Transit System 4120 - Financial Services Construction Tax Fund (Fund 230) 4121 - Taxes/ Insurance/ Bonds 4556 - Construction Tax 4130 . Community Development Police Grant Funds 4131 - Community Building (CDBG) 4201 - Law Enforcement Equip. (Fd 272) 4140 - Management Information System 4202 - State AB3229 Cops Grant (Fd 271) 4145 - Non Departmental 4203 - Federal Universal Hiring (Fd 274) Public Safety (Fund 010) 4208 - Federal Local Law Enforcmt (FD 279) 4201 - Police Redevelopment Agency ( Fund 284) 4211 - Fire 4103 - Redevelopment Administration 4212 - Building & Safety ENTERPRISE FUNDS Public Works (Fund 010) Sewer Fund (Fund 612) 4301 - Public Works-Admin & Engineering 4610 - Sewer Maintenance 4303 - Street/Bridge Maintenance Water Fund (Fund 640) 4304 - Street Lighting 4710 - Water Administration 4305 - Automotive Shop 4711 - Water Production Parks & Recreation (Fund 010) 4712 - .Water Distribution 4420 - Parks Lopez Administration (Fund 641) 4421 - Recreation 4750 - Lopez Administration 4422 - General Recreation CAPITAL IMPROVEMENT PROGRAMS (Fund 350) 4423 - Pre-School Program 5501-5599 - Park Projects 4424 - Recreation-Special Programs 5601-5699 - Streets Projects 4425 - Children in Motion 5701-5799 - Drainage Projects 4426 - Five Cities Youth Basketball 5801-5899 - Water/Sewer/Street Projects 4430 - Soto Sport Complex 5901-5999 - Water Projects 4213 - Government Buildings 4460 - Parkway Maintenance U:\MSWORD\ CITY COUNCIL FORMS\ CASH DISBURSEMENT SCHED wEXCEL WKS.doc -------- ~'A 00 ~~ 'ct) U.I %~ a:JcQ C).~ ~ ~ "C ~~ 1.0'" ~~ ~~ 00 . ~~ ~~ ~ o~ 'ct)~ 0 ~~ ~~ i ~.~. 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M ~ 10 CO ..... _ N Q) 11)- u .c: M M M M .- en .II: u CO CO CO CO CO ,- 0 c: :J CO CO CO CO CO 'fiN I'll 0 .... .... .... .... .... >.... ID > .... .... .... .... .... --'-'..-- 2ocL-\ - '2.$ 1- ~ \C,..\L. Lt;;;:. p... \.) ~ ATTACHMENT 4 CITY OF ARROYO GRANDE DEPARTMENTAL LABOR DISTRIBUTION PAY PERIOD 11/19/04 -12/02/04 12/10/04 FUND 010 383,235.80 Salaries Full time 161,177.84 FUND 220 18,678.43 Salaries Part-Time - PPT 22,053.63 FUND 284 1,889.74 Salaries Part-Time... TPT 5,338.53 FUND 612 5,994.88 Salaries OverTime 11,990.07 FUND 640 15,653.48 Salaries Standby 394.24 425,452.33 Holiday Pay 43,195.47 Sick Pay 2,792.08 Annual Leave Buyback 17,348.63 Vacation Buyback - Sick Leave Buyback 18,238.66 Vacation Pay 8,461.73 Comp Pay 5,176.76 Annual Leave Pay 4,694.99 PERS Retirement 59,031.93 Social Security 19,722.16 PARS Retirement 305.53 State Disability Ins. 1,240.38 Deferred Compensation 725.00 Health Insurance 36,334.67 Dental Insurance 4,477.53 Vision Insurance 1,000.72 Life Insurance 726.78 Long Term Disability - Uniform Allowance - Car Allowance 875.00 Council Expense - Employee Assistance - Boot Allowance - Motor Pay 150.00 - 425,452.33 ~-- -~--- _..._---._."'_._~-~ --...__.~"._.__._--- -- ~ ",'" '" ... ., on 0" 00 00 0 0 0 0 ~ 5 ...,....""" '" '" '" '" " '" '" '" '" o !!'. $I. 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(1)- U J: -.;to (1; .- CD oX U 01 - .- c ~ co co co 'fiN as ~ ..... ..... ..... > .- III ..... ..... ..... ------...-,-.- 2001..-\", ..z..t& A TT ACHMENT 6 CITY OF ARROYO GRANDE DEPARTMENTAL LABOR DISTRIBUTION PAY PERIOD 12/03/04 - 12/16/04 12/22/04 FUND 010 323,607.93 Salaries Full time 194,745.90 FUND 220 16,997.89 Salaries Part-Time - PPT 20,610.77 FUND 284 1,630.81 Salaries Part-Time - TPT 7,158.18 FUND 612 6,022.28 Salaries OverTime 15,621.26 FUND 640 14,353.22 Salaries Standby 393.42 362,612.13 Holiday Pay 840.41 Sick Pay 3,007.43 Annual Leave Buyback - Vacation Buyback - Sick Leave Buyback - Vacation Pay 6,187.33 Comp Pay 3,996:64 Annual Leave Pay 281.86 PERS Retirement 53;006.79 Social Security 15,798.66 PARS Retirement 360.77 State Disability Ins. 1,126.33 Deferred Compensation 725.00 Health Insurance 31,285.82 Dental Insurance 4,018.35 Vision Insurance 909.95 Life Insurance 726.78 Long Term Disability 1,000.10 Uniform Allowance - Car Allowance 500.00 Council Expense - Employee Assistance 160.38 Boot Allowance - Motor Pay 150.00 - 362,612.13 --- -----_._--~- --. -------'"" 00 0 02. go o go'" ,.., ,- ' . ~ ~~ g~ ~~: ~i i ~~ %% " '" '" '" .. ,.," .. <!! .. - - ' ' o -- ",,,, '" ",,, - -- " '" .. ,.; oi .. ;; ~ ~ ~~ W Q... i>> to .. .. .. ;;_0 0. .. 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'" 0 '" ~:1 8 8 8;;; ~:g _0 0 0 0 0 0 0 :E >0 0 0 0 0 0 0 < \ ... ... ... ;It.... ..... ., g 8 g :5 g g g '? ~ <! <! <! <! <! <! <! ;:; \'! 0;;; ;;; ;;; ;;;;;; ;;;;;; .. D N N N N N N N - ~ ~ ~ ~ ~ -- lit Q; ~ o '0 ~~ ~!Iii ~ 8 8 ~ 8 \g .. o' 0> - '" '" '" '" '" . -!<:. .. 0 ~ ~ ~ ~ - ~ ~ ;;>.= OJ >~ ~ ~ ~ - - ~ ------- -_._--_.~-- ~ c<)t"') co co ~~ ~.... t"') t"') ~ ~~ ~ ~ 0 ~ It) It) 0 0 .... .... Q) D ....~ ....~ ~ f .... .... 0- 1- ., .' ., \ ~ f 0) t- ~ -u ~ ~ 0 I ':J' i ~ 0 t- ~ 0 u ~ ~ c ~ 0 ~ u.." -~ ~ o~ 'I: u :J~ ~ NO 0 ~O * 0 U1 0- 0 ~ ie> ...JO 4;'b 'fii ::0- 5.c( Q) 8 ~ >u.. c: 0 '0 ~ ; :s 0 ~ (,) <.) ~ '& (\) i= ~ (/) w z .. ~ ~ 1:: ~ 0 0 u ~ ... ~ i 0) 0 ... t ~ III ,g ~ 0) ... ~ > 0 .S ~\~ - en f ~ C? ! -u ~ (\) o M u 0 ~ ~ 0 .J:) N 0 0 'C"" ~ > > .. N N 0 0 'It 0) .... .... 0 '0 0 0 !~% ~N u :!o ~ U 0) ~~ ~ ~ . to o ~ ::J' 'C"" cD '> a.b. MEMORANDUM TO: CITY COUNCIL ANGELA PillOW, DIRECTOR OF FINANCIAL SERVICEN FROM: BY: FRANCES R. HEAD, ACCOUNTING SUPERVI~ SUBJECT: STATEMENT OF INVESTMENT DEPOSITS DATE: JANUARY 11, 2005 Attached please find a report listing the current investment deposits of the City of Arroyo Grande, as of November 30,2004, as required by Government Code Section 53646 (b). t ~-~-- CITY OF ARROYO GRANDE MONTHLY INVESTMENT REPORT ~4 tlf ~ 30, 2004 ,"" ~'^"'"w January II, 2004 This report presents the City's investments as of November 30, 2004. It includes all investments managed by the City, the investment institution, type of investment, maturity date, and rate of interest, As of November 30, 2004, the investment portfolio was in compliance with all State laws and the City's investment policy. Current Investments: The City is currently investing all short-term excess cash in the Local Agency Investment Fund (LAIF) administered by the State Treasurer. This is a very high quality investment in terms of safety, liquidity, and yield. The City may readily transfer the LAIF funds to the City's checking account when funds are needed, At this time, the City does not hold any other investments. The following is a comparison of investments based on book values as of November 30, 2004, compared with the prior month and the prior year. LAIF.INVESTMENT CLJRRENT PlRIORMONTH PlRIORYEAR Date: November, 2004 October, 2004 November, 2003 Amount: $ 11,700,000 $ 11,700,000 $ 12,300,000 Interest Rate: 2.00% 1.89% 1.59% , B.c. MEMORANDUM TO: CITY COUNCIL ANGELA PillOW, DIRECTOR OF FINANCIAL SERVICES At FROM: SUBJECT: CONSIDERATION OF ANNUAL ADJUSTMENT OF SEWER CONNECTION FEES BASED ON CHANGES IN THE ENGINEERING NEWS RECORD CONSTRUCTION COST INDEX DATE: JANUARY 11, 2005 RECOMMENDATION: It is recommended the City Council adopt the attached Resolution approving the annual adjustment to the sewer connection fees based on changes in the Engineering News Record (ENR) Construction Cost Index (CCI). FUNDING: An increase of approximately $4,000, can be expected in the Sewer Connection Fee Fund. DISCUSSION: Ordinance 528 C,S, established that for each connection of a building sewer to a public sewer, a connection fee will be charged and that the amount of the fee shall be set by resolution, Resolution No, 3567 set sewer connection fees and requires that the sewer connection fee be adjusted each January 1 in accordance with the percentage increase based on changes in the annual average Engineering News Record Construction Cost Index, The calculation shown below provides documentation that a 6,29% increase in the ENR warrants an adjustment in the sewer connection fee. Overall Index ENR Annual Average for 2004 7115 ENR Annual Average for 2003 6694 Change ~ Percent Increase 421/6694 = 6,29% Attached to this report is a Resolution to adjust these fees and Exhibit A that provides a listing of the proposed updated sewer connection fees, This listing shows the service 1 --._-~~.._~-_.~ - CITY COUNCil SEWER CONNECTION FEE ADJUSTMENT JANUARY 11, 2005 PAGE 2 provided by the City, the current fee charged for that service, the CCI, and the recommended adjusted fee, AL TERNA TIVES: The following alternatives are provided for City Council consideration: - Adopt the Resolution adjusting sewer connection fees; - Do not adopt the Resolution and postpone adjustment until July 2005; - Modify staff recommendation; - Provide direction to staff, -_...~ RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADJUSTING SEWER CONNECTION FEES BY THE CHANGE IN THE ENGINEERING NEWS RECORD CONSTRUCTION COST INDEX WHEREAS, the City Council adopted Ordinance 528 C,S, amending provisions of the Municipal Code regarding sewer connection fees; and WHEREAS, the City Council may by resolution establish the amount of the sewer connection fees pursuant to the above referenced Ordinance; WHEREAS, Resolution 3567 requires an annual adjustment in the sewer connection fee based on the increase of the annual average Engineering News Record Construction Cost Index, NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby adopts the fees set forth in Exhibit "A" attached hereto and incorporated herein by this reference as though set forth in full. This Resolution shall take effect sixty (60) days after its adoption, On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this day of ,2005. -'-'--- RESOLUTION NO. PAGE 2 TONY M. FERRARA, MA VOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY , ~ EXHIBIT A SEWER CONNECTION FEES For each connection of a building sewer to a public sewer, a connection fee shall be collected by the City before the permit for the connection work is issued. The amount of the fee collected is as follows: Connection fee 2002 2003 2004 2005 ENR Index 6221 6538 6694 7115 Residential- per dwelling unit Single Family $ 728 $ 765 $ 783 $ 833 Multifamily (a) 539 566 580 616 Trailer Park/Mobile Home 597 627 642 683 Non-Residential - per water meter size (b) 5/8 inch $ 728 $ 765 $ 783 $ 833 3/4 inch 1,090 1,146 1,173 1,247 1 inch 1,820 1,913 1,958 2,082 1 1/2 inch 3,640 3,825 3,917 4,163 2 inch 5,824 6,121 6,267 6,661 3 inch 10,920 11 ,476 11 ,750 12,489 4 inch 18,200 19,127 19,584 20,815 6 inch 36,400 38,255 39,168 41,631 8 inch 72,800 76,510 78,335 83,262 10 inch 109,200 114,764 117,503 124,893 12 inch 160,160 168,321 172,337 183,176 (a) Multifamily includes duplex, triplex, apartments, and condominiums (b) For meter sizes larger than shown, connection fee determined based on the ratio of the maximum safe operating capacity of the meter to that of a 5/8 inch meter. The connection fees shall be increased each January 1 with the annual percentage increase of the annual average ENR Construction Cost Index as established in the Engineering News Record publication. Adjustment Formula: Adjusted Fee = (Current Fee) x (Current Year ENR index) / (Prior Year ENRindex) l' - ---------------------' I.d. MINUTES REGULAR MEETING OF THE CITY COUNCIL TUESDAY, NOVEMBER 23, 2004 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor Ferrara called the Regular City Council meeting to order at 7:00 p.m. 2. ROLL CALL City Council: Council Members Runels, Dickens, Costello, and Mayor Ferrara were present. Council Member Lubin was absent. City Staff Present: City Manager Adams, City Attorney Carmel, Director of Administrative Services Wetmore, Chief of Police TerBorch, Director of Financial Services Pillow, Director of Public Works/City Engineer Spagnolo and Assistant Planner Foster. 3. FLAG SALUTE Wayne Dempster, representing Knights of Columbus, led the Flag Salute. 4. INVOCATION Jean Bowser, Bahai Faith, delivered the invocation. 5. SPECIAL PRESENTATIONS 5.a. Proclamation Recoanlzlna November 23. 2004 as Salvatore "Sal" Fqrlco Day In the City of Arrovo Grande. Mayor Ferrara presented an Honorary Proclamation recognizing and honoring one of the City's oldest citizens by declaring November 23, 2004 as Salvatore "Sal" Federico Day in the City of Arroyo Grande. Sal Federico accepted the Proclamation and expressed his appreciation to the City Council and the community. 6. AGENDA REVIEW 6.a. Resolutions and Ordinances Read In Title Only Council Member 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 SUGGESTI9N, Connie Dunbar, representing Mothers for Peace, gave an update on issues relating to nuclear power plant license renewals and requested that the Council reconsider its previously approved resolution by scheduling at a future meeting consideration of adoption of a new resolution opposing any re-licensing of Diablo Canyon until certain issues and concerns are resolved. Marie Cattoir supported the efforts of Mothers for Peace and requested the Council put the proposed resolution referenced by Ms. Dunbar on a future agenda for approval. Lorraine Kitman, representing Mothers for Peace, read the text of a proposed Resolution on Nuclear Power Plant Ucense Renewals and requested the Council consider adoption of the Resolution opposing any relicensing of Diablo Canyon Units 1 & 2. CITY COUNCIL MINUTES NOVEMBER 23, 2004 PAGE 2 8. CONSENT AGENDA Mayor Ferrara requested that Item 8,1. be pulled for clarification. Council Member Runels moved, and Council Member Costello seconded the motion to approve Consent Agenda Items 8,a, through 8.m., with the exception of Item 8.1., with the recommended courses of action, City Attorney Carmel read the title of the Ordinance in Item 8.h. The motion carried on the following roll-call vote: AVES: Runels, Costello, Dickens, Ferrara NOES: None ABSENT: Lubin 8.a. Cash Disbursement Ratification, Action: Approved the listings of cash disbursements for the period November 1, 2004 - November 15, 2004. 8.b. Consideration of Cash Flow Analysis and Approval of Interfund Advance from the Water Fund. Action: Received and filed the October 2004 cash report and approved the interlund advance from the Water Fund to cover cash deficits in other funds as of October 31, 2004. 8.c. Statement of Investment Deposits. Action: Received and filed the report of current investment deposits as of October 31, 2004. 8.d. Consideration of Approval of Minutes. Action: Approved the minutes of the Special and Regular City Council Meetings of November 9, 2004, as submitted. 8.e. Consideration of Approval of Employment Agreement-Chief of Police. Action: Approved and authorized the City Manager to execute the Employment Agreement between the City and Lester F. TerBorch and authorize an appropriation of $5,600 from the General Fund. 8.f. Consideration of Salary Adjustment for Management Employees. Action: Adopt Resolution approving a 2% salary adjustment for management employees effective January 1 , 2005. 8.g. Consideration of Cancellation of December 28, 2004 City Council Meeting. Action: Approved cancellation of the December 28, 2004 City Council Meeting. 8.h. Consideration of Adoption of Ordinance Adding Section 10.08.060 to Chapter 10.08 of Title 10 of the Arroyo Grande Municipal Code Entitled "Prohibition of Solicitation at Entrances to Commercial Parking Areas and Upon Right of Way Areas". Action: Adopted Ordinance No. 559, "An Ordinance of the City Council of the City of Arroyo Grande Adding Section 10.08.060 to Chapter 10.08 of Title. 1 0 of the Arroyo Grande Municipal Code Entitled "Prohibition Of Solicitation At Entrances To Commercial Parking Areas And Upon Public Right Of Way Areas" 8.1. Consideration of Approval of Tract Map 2532; Mal-Hun, LLC; 1180 Ash Street. Action: Approved Final Tract Map 2532 subdividing .58 acres into eight (8) parcels, 8.j. Consideration of an Award of Contract for Construction of the Traffic Way Bridge Rail Replacement Project, PW 2004-01. Action: 1). Awarded a contract for the construction of the Traffic Way Bridge Rail Replacement Project, PW 2004-01 to Souza Construction Inc., in the amount of $262,105.00; 2) Authorized the City Manager to approve change orders not to exceed the CITY COUNCIL MINUTES NOVEMBER 23, 2004 PAGE 3 contingency of $26,210,50 for use only if needed for unanticipated costs during the construction phase of the project; 3) Transferred $48,090.00 from the General Fund Public Works Administration/Engineering budget to cover staff design and contract administration. This fund will be reimbursed with funds from Caltrans upon project completion. 8.k. Consideration of Approval of Settlement Agreement and Mutual General Release with RRM Design Group. Action: Approved a Settlement Agreement and Mutual General Release with RRM Design Group regarding the Fire Station Expansion Project (PW 2003-05), 8.m. Consideration of Authorization to Close City Streets for the 2nd Annual Arroyo Grande Village Improvement Association Christmas Parade, November 28, 2004. Action: Adopted Resolution No. 3795 authorizing closure of City streets for the 2nd Annual Arroyo Grande Village Improvement Association Christmas Parade. 8.1. Consideration of Resolution Revising Appointment Procedures for the Architectural Review Committee (ARC), Recommended Action: Adopt Resolution revising appointment procedures for the ARC. In response to Mayor Ferrara's request for clarification regarding this item, City Manager Adams gave a brief overview of the staff report. He. explained that the only revision to the appointment procedure was the removal of the requirement that the Mayor and Mayor Pro Tem appoint the two (2) non-technical members to the ARC. He stated that due to the new Mayor Pro T em rotation policy approved by the Council last year, this procedure no longer provided consistency as it relates to the appointment of ARC members, He further stated that staff would keep the Council apprised of the composition of the ARC as it relates to technicaVnon-technical members so that appointments can be coordinated as needed. Council Member Runels moved to adopt a Resolution revising appointment procedures for the Architectural Review Committee. Council Member Costello seconded the motion, and on the following roll call vote: AYES: Runels, Costello, Dickens, Ferrara NOES: None ABSENT: Lubin There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be passed. 9. PUBLIC HEARING 9.a. Consideration of Appeal of Planning Commission Approval of Vlewshed Review 04-014; 1470 Sierra Drive. Assistant Planner Foster presented the staff report and recommended the Council adopt a resolution denying the appeal and approving a Minor Use Permit for Viewshed Review 04-014 and instructing the Director Of Administrative Services to file a Notice of Exemption. Mayor Ferrara opened the public hearing. -~--- CITY COUNCIL MINUTES NOVEMBER 23, 2004 PAGE 4 Paul Geihs, attorney representing the appellants, referred to the staff report which indicated there were three required findings for approval of the applicant's project, and gave an overview of each finding and related Code section. He displayed photographs of the appellant's property at 1480 Sierra depicting the view from the living room, and the view right outside the front door, He also displayed photographs of the home at 1470 Sierra Drive which is at street level, and other homes in the neighborhood, He stated that the proposed project at 1470 Sierra Drive will obliterate the view from 1480 Sierra Drive and that the required findings cannot be made as the scenic view will be completely obliterated and the project is out of character with the neighborhoOd, He asked the Council to uphold the appeal and deny Viewshed Review Case No. 04-014. Bob Montanvo, 1470 Sierra Drive, commented on the photographs that were displayed, and commented that he assumed the appellant's primary scenic view was from the back of the house through several floor to ceiling windows. He spoke of his family's desire to expand their home and commented that the addition would allow their elderly parents to move in with them in the future in order to care for and be close to them. Ruth Montanvo, 1470 Sierra Drive, referred the Council to the photographs of the site contained in the staff report and thanked the Council for coming out to see the property. Upon hearing no further public comments, Mayor Ferrara closed the public hearing, Council Member Costello commented that the proposed expansion meets all the development standards, is not an unreasonable expansion, is not inconsistent with the established scale and character of the neighborhood. He commented that the impacted view from 1480 Sierra is limited to begin with and he did not find the expansion of 1470 Sierra Drive to be an unreasonable interference. He stated he could support the Planning Commission's approval of Viewshed Review Case No. 04-014 and could not support the appeal. Council Member Runels referred to the motorhome parked at 1470 Sierra Drive and inquired about its impact on the appellant's view. He stated that he agreed with the Planning Commission's decision and that the proposed expansion was not unreasonable. Council Member Dickens commented on the rural characteristics of the neighborhood and stated that the applicant's request to expand was reasonable. As far as the scale and character of the neighborhood, Council Member Dickens stated that other homes in the neighborhood have similarly expanded. He suggested that there might be ways to soften "the impact of the expansion. He stated he could favorably make the findings and approve staff's recommendation to deny the appeal. Mayor Ferrara referred to finding #3 that the proposed structure will not unreasonably or unnecessarily interfere with the scenic view from any other property. He referred to the photographs previously displayed and he commented that what scenic view meant to him was looking out towards the open area to the south and west. He felt that the appellant's scenic view was not being impacted. He suggested that the design of the upper floor of the applicant's project use creative architectural features, He supported the Planning Commission's decision to approve Viewshed Review Case 04-014. Council Member Costello moved to adopt a Resolution as follows, "A Resolution of the City Council of the Denying Appeal 04-007; Applied for by Henry. and Sonja Bernard and Approving a -1 ----,._-- ,-_.".,_..._---~ CITY COUNCIL MINUTES NOVEMBER 23, 2004 PAGE 5 Minor Use Permit for Viewshed Review 04-014; Applied for by Bob and Ruth Montano". Council Member Runels seconded the motion, and on the following roll-call vote: AYES:" Costello, Runels, Dickens, Ferrara NOES: None ABSENT: Lubin There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be passed, 10. CONTINUED BUSINESS 1 0.8. Consideration of Water Supply Recommendations. Director of Public Works/City Engineer Spagnolo presented the staff report and recommended the Council: A) Direct staff to coordinate an updated water and sewer rate study, which would develop future rate recommendations based upon transition to a tiered rate structure; B) Direct staff, in cooperation with the participants of the Basin Management Agreement, to solicit a proposal for a groundwater study; C) Proceed with the further development of the Nacimiento water supply option through the preparation of a project descriptibn and engineering analysis; and D) Prepare an initial study on the costs and feasibility of constructing a desalination plant in conjunction with the South San Luis Obispo County Sanitation District wastewater treatment facility. Director Spagnolo responded to questions from Council regarding the proposed water supply options. With regard to Well #10, Mayor Ferrara suggested working out inter-jurisdictional issues before moving into Phase I. With regard to a proposed tiered water and sewer rate structure, Council Members Dickens, Runels, and Mayor Ferrara stressed the importance of public education on water conservation efforts prior to consideration of and implementation of a tiered rate structure. City Manager Adams reported that public education efforts on water conservation are already onderway. During presentation of Phase 2 water supply options, concerns were expressed regarding a new groundwater study. City Attorney Carmel noted that although this was a Phase 2 issue, the study has Phase 1 implications. He explained that under the existing groundwater management agreement, if there is additional safe yield in the basin, the City of Arroyo Grande would be entitled to 95% of the first 379 acre feet of additional supply that is in the basin. He explained that if the study proved that there was surplus water, the City would get an immediate benefit of more than 350-acre feet/year. He also stated the need for the groundwater study also arises out of the context of the litigation because the proposed settlement agreement requires a groundwater study within two years. Mayor Ferrara commented that as the study moves forward, he hoped that the technology and the science is at a better level than it has been in the past. With regard to the Nacimiento Pipeline project, staff clarified that the intent was to use the Price Canyon oil field water for the first ten years and then to use the Nacimiento pipeline later as a permanent supply. In response to questions concerning the option for using reclaimed water, staff gave a more detailed overview of the disadvantages and cost impacts related to this option. Upon conclusion of his presentation, Director Spagnolo reviewed staff's recommendations and additionally requested direction from Council on the Utility Retrofit Upon Sale Program. Mayor Ferrara asked why there was no recommendation for the Price Canyon oil field water option. Director Spagnolo stated that the County is the lead agency and the City is working with the County and monitoring its actions. Mayor Ferrara stated that he would like to include in the recommendations that the City would continue to work aggressively CITY COUNCIL MINUTES NOVEMBER 23, 2004 PAGE 6 with the County on the Price Canyon water source. Council Member Runels also requested that the State water option also be included in the formal recommendations, Mayor Ferrara invited public comments on this item. Steve Ross, Arroyo Grande, shared the Mayor's frustrations regarding the groundwater study, He expressed concern regarding the tiered rate system and stated that the City needs to find other water sources and should not implement tiered rates, He referred to the City's fa~ade grant program and suggested setting up a rebate or grant type program to encourage creative, non-water intensive landscaping alternatives and the use of drought resistant plants. He commented that the City has a great resource in Cal Poly's Agriculture Department and suggested that their students may be interested in performing a study that would allow the City to identify certain kinds of landscape architecture and plants that would be environmentally friendly and use less water. He concluded by opposing the tiered water and sewer rate structure, Mayor Ferrara also suggested seeking out Cal Poly Engineering students to do a class project on the groundwater study. Upon hearing no further public comments, Mayor Ferrara closed the public comment period. Council Member Dickens acknowledged that staff has put together a comprehensive strategy to address both short and long term need. He commented there was a need to do the studies to get better information to make decisions. He provided the following comments: 1) Water Conservation Public Education: Include as part of the billing system the placement of individual user goals based on City projections; supported the idea for providing financial inoentives to property owners focusing on landscaping changes to transition to drought tolerant materials. 2) Well No. 10: Supported moving forward on the project. 3) Tiered Water and Sewer Rate Structure: Not sure; potential inequities in the structure. 4) Groundwater Study: Will be valuable with some direct and indirect benefits; Supports. 5) Nacimiento Project: Move forward with engineering analysis prior to moving into a Supplemental EIA. 6) Reclaimed Water: Did not support. 7) Desalination Plant: Supported this option. 8) State water: More information would be good; concerned about this option; may not be a reliable long-term source. Would rather solve water issues at the local level. State water is not as high a priority; however, should work with County to stay involved. 9) Utility Retrofit Upon Sale Program: A little concerned with this program due to potential indirect impacts at the wastewater treatment plant. Council Member Runels favored keeping all the options on the table, including the Price Canyon oil field water, the retrofit program, and the State water options. He commented that the Desalination Plant project would be drought-proof but very expensive. He supported adding Well No. 10; commented that the retrofit program will help; and supported a tiered rate structure. Council Member Costello supported an updated water and sewer rate study to develop recommenda.tions on implementing a tiered rate structure; supported a groundwater study; supported the Nacimiento water supply option; and expressed some concern with the expense of Desalination Plant project, however, he favored further examining this option. He acknowledged that the funding for these projects would be shared with other cities. He also suggested that the reclaimed water option might be a valid option. He supported staff's recommendations. CITY COUNCIL MINUTES NOVEMBER 23, 2004 PAGE 7 Mayor Ferrara stressed that many of these strategies involve other jurisdictions which will require extra effort from staff and the Council. Council Member Runels moved to 1) Direct staff to coordinate an updated water and sewer rate study, which would develop future rate recommendations based upon transition to a tiered rate structure; 2) Direct staff, in cooperation with the participants of the Basin Management Agreement, to solicit a proposal for a groundwater study; 3) Proceed with the further development of the Nacimiento water supply option through the preparation of a project description and engineering analysis; 4) Prepare an initial study on the costs and feasibility of constructing a desalination plant in conjunction with the South San Luis Obispo County Sanitation District wastewater treatment plant facility; and 5) to also include and pursue the Utility Retrofit Upon Sale Program option, the Price Canyon oil field option, and the State water option. Council Member Dickens seconded the motion, and on the following roll-call vote: AYES: Runels, Dickens, Costello, Ferrara NOES: None ABSENT: Lubin There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be passed. Mayor Ferrara called for a break at 9:30 p.m. The Council reconvened at 9: 40 p.m. 11. NEW BUSINESS 11.a. Consideration of Interim Urgency Ordinance Establishing a Moratorium on Medical Marijuana Dispensaries. Chief of Police T erBorch presented the staff report and recommended the Council adopt an Interim Urgency Ordinance establishing a moratorium on medical marijuana dispensaries, Mayor Ferrara invited public comments on this item. No public comments were received. Council comments included acknowledgement of the conflict between State and Federal law regarding the use of medical marijuana, acknowledgement that existing City ,zoning, health and safety laws do not provide for the location and/or regulation of medical marijuana dispensaries; and acknowledgement of the pending Supreme Court case concerning this issue. Following Council comments in support of the Interim Urgency Ordinance, Council Member Dickens moved to adopt an Interim Urgency Ordinance as follows: "An Interim Urgency Ordinance of the City of Arroyo Grande Establishing a Moratorium on Medical Marijuana Dispensaries". Council Member Runels seconded the motion, and on the following roll call vote: AYES: Dickens, Runels, Costello, Ferrara NOES: None ABSENT: Lubin There being 4 AYES, 0 NOES, and 1 ABSENT, the motion is hereby declared to be passed, CITY COUNCIL MINUTES NOVEMBER 23, 2004 PAGE 8 12. CITY COUNCIL REPORTS a. MAYOR TONY M. FERRARA: (1) San Luis Obispo Council of Governments/San Luis Obispo Regional Transit Authority (SLOCOGlSLORT A). 1) Announced that there is a new train serving the Central Coast; an Inauguration Ceremony for the new train was held on November 1 ih; the new train will result in increased rail service for San Luis Obispo, Grover Beach, and down through San Diego, 2) Discussed the 2004 Regional Transportation Plan for San Luis Obispo County. 3) Announced expansion of Bus Route 10 which includes many service improvements. New brochures are available at City Hall. (2) Integrated Waste Management Authority (IWMA). 1) Reviewed work plan for the coming year which will have heavy emphasis on encouraging commercial recycling, (3) Other. None, b. MAYOR PRO TEM SANDY LUBIN: (ABSENT) (1) South County Area Transit (SCAT). None. (2) Economic Vitality Corporation (EVC), None. (3) CJPIA, None. (4) Other, None. c. COUNCIL MEMBER THOMAS A. RUNELS: (1) Zone 3 Water Advisory Board. Recreation. Area is reporting good fishing; revenues are static as compared to prior year at this time; reconstruction of the restroom is underway and estimated completion is expected in January; the Lake is approximately 46% full; received six inches of rain; First Quarter Budget report received - $177,000 under budget for expenditures; the pilot program for testing membranes is underway. Distributed letter from Supervisor Achadjian that he had written to the State Coastal Conservancy supporting the Coastal San Luis Resource Conservation District's effort to get matching funds of $150,000 to study the Arroyo Grande Creek. (2) County Water Resources Advisory Committee (WRAC). None. (3) Other. None. d. COUNCIL MEMBER JIM DICKENS: (1) South San Luis Obispo County Sanitation District (SSLOCSD), The Plant continues to maintain its discharge requirements; the digester 1 (tank) has been taken down for cleaning following public notification of potential odor increases during the cleaning process. (2) South County Area Transit (SCAT): Attended as Alternate. Received annual review; SCAT continues to increase ridership from month to month and year to year; ridership increased by 5.8% over the last fiscal year; SCAT ridership has continued to. grow this fiscal year by over 11%. Route 10 has increased services from SLO to Santa Maria with an emphasis in Nipomo. Approved assuming operation of the Avila Bay Trolley effective January 15t and will enter into an Agreement with the Avila Beach Community Foundation for those services. (3) South County Youth Coalition. None. (4) Other. None. CITY COUNCIL MINUTES NOVEMBER 23, 2004 PAGE 9 e. COUNCil MEMBER JOE COSTEllO: (1) Air Pollution Control District (APCD), None. (2) Other. None, 13, CITY COUNCil MEMBER ITEMS: a) Request of Council to Appeal Planning Commission's approval of Condition #17 (regarding undergrounding of overhead utilities) for Conditional Use Permit Case 04-006; 1490 E. Grand Avenue; Gill's Market (FERRARA) Mayor Ferrara requested, and the Council concurred, to appeal the Planning Commission's approval of Condition #17 (regarding undergrounding of overhead utilities) for Conditional Use Permit Case 04-006. The item will be scheduled for consideration at the next regular Council meeting. 14. CITY MANAGER ITEMS: None. 15. COUNCil COMMUNICATIONS: Council Member Dickens inquired about the upcoming Christmas Parade. Staff reported that the parade would be held in the Village on Sunday, November 28,2004. Mayor Ferrara also announced that the Grover Beach Holiday Parade would be held on Saturday, December 4,2004 and that he and Council Member Costello would be participating in the parade, representing the City of Arroyo Grande. Mayor Ferrara reported that he had received two letters. from residences (on file in the Administrative Services Department) regarding a vehicle speed survey and potential changing of speed limits on Rancho Parkway and Huasna Road, Chief TerBorch explained the City's process for qonducting a speed survey which would be brought forward to the Council for approval. Mayor Ferrara referred to correspondence he had received from the Governor's Office of Emergency Services regarding the Fiscal Year 2004-05 Competitive Pre-Qisaster Mitigation Grant Program and encouraged staff to pursue this grant program for a hazard mitigation plan. City Manager Adams reported that the City's Fire Department staff was pursuing this grant and a meeting was scheduled next week to discuss the issue. Mayor Ferrara reported that he had attended a workshop sponsored by the League of California Cities to formulate goals for the League. He stated one of the primary goals identified was to look at the entire housing issue for California, He expressed concerns about the draft plan that he would be raising at the next Channel Counties meeting and at the next Mayor's meeting. 16. STAFF COMMUNICATIONS: City Manager Adams announced that the City Council Reorganization Meeting was scheduled for Monday, December 6,2000 in the City Council Chambers at 6:30 p.m. 17. COMMUNITY COMMENTS AND SUGGESTIONS: None. i --- ~-- CITY COUNCIL MINUTES NOVEMBER 23, 2004 PAGE 10 18. ADJOURNMENT Mayor Ferrara adjourned the meeting at 10:29 p.m. Tony M. Ferrara, Mayor ATTEST: Kelly Wetmore, City Clerk (Approved at CC Mtg ) MINUTES SPECIAL MEETING OF THE CITY COUNCIL MONDAY, DECEMBER 6, 2004 COUNCIL CHAMBERS, 215 E. BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor Ferrara called the Special City Council meeting to order at 6:34 p,m, 2. ROLL CALL City Council: Council Members Runels, Dickens, Costello, Mayor Pro Tem Lubin and Mayor Ferrara were present. City Staff Present: City Manager Adams; City Attorney Carmel; Director of Administrative Services/Deputy City Clerk Wetmore; Director of Financial Services Pillow; Director of Parks, Recreation, and Facilities Hernandez; Director of Public Works Spagnolo; Chief of Police TerBorch; Community Development Director Strong; Assistant Planner Bergman; and Executive Assistant Bassett, 3. FLAG SALUTE Mayor Ferrara led the Flag Salute, 4. PUBLIC COMMENT Sandy Sanderson thanked Mayor Pro Tem Lubin and Council Member Runels for their service and contributions on the City Council. Tim Brown thanked Council Member Runels and Mayor Pro Tem Lubin for their work and efforts on the City Council and encouraged them to remain involved in the many issues facing the City. Gail LiQhtfoot thanked every member of the City Council and congratulated the newly elected Council members. 5. REMARKS BY DEPARTING MAYOR PRO TEM SANDY LUBIN Mayor Pro Tem Lubin expressed that the most important thing to him was the trust and faith that the citizens of Arroyo Grande have placed in him and the opportunity to have spent the last four years on the City Council. He expressed pride for having been given the opportunity. He commented that without the support of the citizens of Arroyo Grande, nothing would get accomplished. He said it was important for the citizens to stay involved and to continue to support their elected candidates. He thanked the citizens, his supporters, City staff and department heads. He acknowledged that the City Council has a reputation for having had the ability to discuss a lot of contentious items, vote, stand-up, shake hands, and move on to the next item, He stated he was proud of his relationships with all the City Council Members during his term, He concluded by thanking his wife Cindy for her support of his involvement with the City over the past ten years while serving on the Parks and Recreation Commission, the Planning Commission and the City Council. SPECIAL CITY COUNCIL MEETING MINUTES DECEMBER 6, 2004 PAGE 2 6. REMARKS BY DEPARTING COUNCIL MEMBER THOMAS A. RUNELS Council Member Runels commented that he was very grateful and gratified for the opportunity that the people of Arroyo Grande have given him to serve on the City Council for eight years, He acknowledged a friend who encouraged him to run for City Council who gave him advice for serving on the Council. He reflected back on his experience facing 400 members of the public at his first Council meeting after being elected, to consider the Five Cities Center project, and wished the new Council members good luck during their service on the Council. He stated his main focus when he was elected was improving the roads, He stated he has enjoyed the eight years he has served on the Council, thanked City staff for their support, thanked his wife Edith, and wished good luck to the new Council. 7. RESOLUTION ACCEPTING THE RESULTS OF THE GENERAL MUNICIPAL ELECTION HELD TUESDAY. NOVEMBER 2. 2004 Director of Administrative Services/Deputy City Clerk Wetmore presented the staff report and recommended the City Council adopt the Resolution accepting the Certificates' of the County Clerk declaring the reSults of the canvass of all votes cast November 2, 2004 in the Consolidated General Municipal Election, Mayor Pro Tem Lubin moved to adopt a Resolution accepting the Certificates of the County Clerk - Results of Canvass of all Votes Cast at the General Election held November 4, 2004 in the City of Arroyo Grande, Council Member Runels seconded the motion, and on the following roll-call vote, to wit: AYES: Lubin, Runels, Dickens, Costello, Ferrara NOES: None ABSENT: None There being 5 A YES and 0 NOES, the motion is hereby declared to be passed. 8. OATH OF OFFICE ADMINISTERED BY MAYOR FERRARA Mayor Ferrara administered the Oath of Office to City Clerk Kelly Wetmore and City Treasurer Janet Huwaldt. 9. OATH OF OFFICE ADMINISTERED BY CITY CLERK WETMORE City Clerk Wetmore administered the Oath of Office to Mayor Tony Ferrara, Council Member Arnold, and Council Member Guthrie, 10. REMARKS BY COUNCIL MEMBER JIM GUTHRIE Council Member Guthrie thanked all of the people who worked on his campaign and those people over the years that helped bring him forward in this effort. He reflected on those who have helped him learn many things about municipal government over the last four years. He thanked staff, particularly in the planning department, for all the help they've given him as a Planning Commissioner. He stated he looked forward to working with staff and moving forward on all the issues the City is going to face in the future. He thanked Tom Runels and Sandy Lubin. He concluded by thanking the voters who trusted him with this position and stated he looks forward to serving the community. SPECIAL CITY COUNCIL MEETING MINUTES DECEMBER 6, 2004 PAGE 3 11. REMARKS BY COUNCIL MEMBER ED ARNOLD Council Member Arnold thanked all the citizens for their support, thanked everyone who helped him during his campaign, thanked staff for the support he received on the Planning Commission, and now at the Council level. He stated he looked forward to holding up the high standards that this Council has been held to and looks forward to serving everyone, He acknowledged and expressed thanks to all those who encouraged and supported him in running for Council. 12, REMARKS BY MAYOR TONY FERRARA Mayor Ferrara extended gratitude to Tom Runels and Sandy Lubin for their professionalism, thanked them, and stated it was his honor and pleasure to have served with them, He acknowledged the community and stated that the outcome of this election validated the work the Council has done and the work that will continue to be done, He stated there was no greater honor or privilege than for the community to entrust with him the responsibilities of serving as the Mayor. He thanked all those who worked on his campaign, particularly his campaign chair, Vivian Krug; Jane and Martin Line, for their friendship and continued support; Chuck Fellows, Bill McCann, and Kristen Barneich, who also worked on his campaign, He also dedicated the success of his reelection to his good friend, Bill Harrer, former chairman of the Senior Advisory Commission, who passed away last February. He thanked everyone present who took time out of their schedule to be here this evening and expressed a big thank you to the Arroyo Grande community, City Manager Adams announced that a recognition dinner would be scheduled in January to honor Tom Runels and Sandy Lubin for their service on the City Council. 13. ADJOURNMENT Mayor Ferrara adjourned the meeting at 7:03 p.m. to the Regular City Council Meeting of Tuesday, December 14, 2004 at 7:00 p.m., in the City Council Chambers located at 215 E. Branch Street, Arroyo Grande, California, Tony M. Ferrara, Mayor ATTEST: Kelly Wetmore, City Clerk (Approved at CC Mtg ) MINUTES SPECIAL MEETING OF THE CITY COUNCIL TUESDAY, DECEMBER 14,2004 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. SPECIAL CITY COUNCIL MEETING: Mayor Ferrara called the meeting to order at 6:45 p.m. Council Members Costello, Dickens, Arnold, and Guthrie, City Manager Adams, and City Attorney Carmel were present. 2. PUBLIC COMMENT: None. 3. CITY COUNCIL CLOSED SESSION: 8. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION: Significant exposure to litigation pursuant to Government Code Section 54956.9(b): One (1) potential case, 4, RECONVENE TO OPEN SESSION: Mayor Ferrara announced that there was no reportable action from the closed session. 5. ADJOURNMENT TO REGULAR CITY COUNCIL MEETING: The meeting was adjourned at 7:00 p.m. Tony M. Ferrara, Mayor ATTEST: Kelly Wetmore, City Clerk , MINUTES REGULAR MEETING OF THE CITY COUNCIUREDEVELOPMENT AGENCY TUESDAY, DECEMBER 14,2004 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor/Chair Ferrara called the Regular City CounciVRedevelopment Agency meeting to order at 7:02 p.m. 2. ROLL CALL City CounciVRDA: CounciVBoard Members Costello, Dickens, Arnold, Guthrie, and Mayor/Chair Ferrara were present. City Staff Present: City Manager Adams, City Attorney Carmel, City Clerk Wetmore, Chief of Police TerBorch, Director of Financial Services Pillow, Director of Parks, Recreation and Facilities Hernandez, Community Development Director Strong, and Assistant Planner Bergman. 3. FLAG SALUTE Tobie Charles, representing Boy Scout Troop 489, led the Flag Salute. 4. INVOCATION Pastor Richard Scharn delivered the invocation. 5. SPECIAL PRESENTATIONS None. 6. AGENDA REVIEW 6.a. Resolutions and Ordinances Read in Title Only. Council Member Costello 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. 7. CITIZENS' INPUT. COMMENTS. AND SUGGESTIONS None. 8. CONSENT AGENDA Council Member Dickens requested that Item 8.L be pulled. Council Member Costello moved, and Council Member Arnold seconded the motion to approve Consent Agenda Items 8.a. through 8.n., with the exception of Item 8.L, with the recommended courses of action. The motion carried on the following roll-call vote: AYES: Costello, Arnold, Dickens, Guthrie, Ferrara NOES: None ABSENT: None 8.a. Cash Disbursement Ratification. Action: Ratified the listing of cash disbursements for the period November 16, 2004 through November 30, 2004. CITY COUNCIUREDEVELOPMENT AGENCY MINUTES DECEMBER 14, 2004 PAGE 2 8.b. Consideration of Resolution Accepting the Status Report on Project Development Impact Fees (AB-1600). Action: Adopted Resolution No. 3797 accepting the status report on the receipt and use of Project Development Impact Fees (AB-1600) during the fiscal year ending June 30, 2004. 8.c. Consideration of Annual Financial Report..;. Fiscal Year 2003-04 Receipt and Use of Water and Sewer Development Fees/Charges. Action: Accepted and filed the annual report of the receipt and use of water and sewer development fees and charges in compliance with Government Code Section 66013. S.d. Consideration of Resolution Reclassifying Two Part-time Maintenance Worker Positions in the Parks Department to Two Full- Time Maintenance Worker I Positions. Action: Adopted Resolution No. 3798 reclassifying two part-time Maintenance Worker positions in the Parks Department to two permanent full-time Maintenance Worker I positions, effective January 5,2005. 8.e. Consideration of Resolutions Establishing the City's Contribution Toward Health Care Coverage. Action: 1) Adopted Resolution No. 3799 establishing the City's contribution toward health care coverage for members of the Arroyo Grande Police Officers' Association; 2) Adopted Resolution No. 3800 establishing the City's contribution toward health care coverage for members of the Arroyo Grande Career Firefighters; and 3) Adopted Resolution No. 3801 establishing the City's contribution toward health care coverage for members of the Arroyo Grande Service Employees' International Union - Local 620, 8.f. Consideration of Council Appointments to Planning Commission. Action: 1) Approved the recommendation of Mayor Ferrara to appoint Doug Tait to the Planning Commission, replacing Ed Arnold; and 2) Approved the recommendation of Council Member Costello to appoint Nanci Parker to the Planning Commission, replacing Jim Guthrie. 8.g. Consideration of Agreement with AGP Video for Cablecastlng Services. Action: Approved an Agreement with AGP Video for cablecasting services. 8.h. Consideration of Request by the Central Coast Senior Center for New Low-Flow Toilets. Action: Approved the recommendation of the Senior Advisory Commission to donate three low flow toilets to the Central Coast Center in Oceano. 8.j. Consideration of Acceptance of Valley Gardens Paving Project, PW 2004-04. Action: 1) Accepted the project improvements, as constructed by Union Asphalt, Inc. in accordance with the plans and specifications for the Valley Gardens Paving Project; 2) Directed staff to file a Notice of Completion; and 3) Authorized the release of retention of $23, 564.10, thirty-five (35) days after the Notice of Completion has been recorded, if no liens have been filed. 8.k. Consideration of a Resolution for the Submission of an Application to the California Department of Water Resources to Obtain a Local Groundwater Assistance Grant and Authorization to Enter Into a Grant Agreement. Action: 1) Adopted Resolution No. 3802 authorizing the City Manager to file an application with the California Department of Water Resources (DWR) to obtain a Local Groundwater Assistance Grant and enter into a grant agreement; and 2) Directed the Director of Administrative Services to submit authorizing resolution to the California Department of Water Resources. CITY COUNCIUREDEVELOPMENT AGENCY MINUTES DECEMBER 14, 2004 PAGE 3 8.1. Consideration to Reject All Bids for the Theis/Keisler Tennis Court Addition Project, PW 2004-021 Action: Rejected all bids for the construction of the Theis/Keisler Tennis Court Addition, PW 2004.02. 8.m. Consideration of a Consultant Services Agreement with Omni-Means for Design of the East Grand/Halcyon Traffic Signal Replacement Project, PW 2005-01. Action: 1) Awarded a consultant services agreement with Omni-Means Engineers in the amount of $17,000.00 for design services for the East Grand/Halcyon Traffic Signal Replacement Project, PW 2005-01; and 2) Authorized the Mayor to sign the agreement with Omni-Means Engineers. 8.n. Consideration of Authorization to Purchase Two (2) Replacement Police Department Patrol Vehicles. Action: Authorized staff to purchase two (2) replacement Police Department patrol vehicles from Mullahey Ford for $47,551.78. 8.i. Consideration of Approval of an Agreement with The Land Conservancy. Recommended Action: Approve an agreement prioritizing, locating and negotiating agricultural conservation easements with the Land Conservancy to assist the Community Development Department. Council Member Dickens referred to the scope of work included in the proposed Agreement and asked if there had been contact with any other agencies that might be able to provide similar services, Following Council and staff discussion, staff was requested to modify the scope of work in the agreement with the Land Conservancy to specify that they educate agricultural property owners of all the agencies available to assist in establishing an agricultural easement. It was requested that this be done both in the initial letter to the property owners and when they are contacted directly. In addition, it was agreed that the area in which the Land Conservancy will focus their efforts would be expanded from the City's sphere of influence to the City's planning area. Council Member Dickens moved to approve an Agreement with the Land Conservancy prioritizing, locating and negotiating agricultural conservation easements to assist the Community Development Department, as amended to add to the scope of work preparation of a list of other agencies that can also assist landowners in pursuing conservation easements. Council Member Costello seconded the motion, and on the following roll call vote: AYES: Dickens, Costello, Arnold, Guthrie, Ferrara NOES: None ABSENT: None There being 5 A YES and 0 NOES, the motion is hereby declared to be passed. 9. PUBLIC HEARINGS 9.a. Consideration of Preliminary Approval of Community Development Block Grant (CDBG) Projects for Year 2005. CITY COUNCIUREDEVELOPMENT AGENCY MINUTES DECEMBER 14, 2004 PAGE 4 Assistant Planner Bergman presented the staff report and recommended the Council: 1) Provide preliminary approval of proposed projects to be funded with the City's allocation of CDBG funds for the Year 2005; and 2) Adopt a Resolution approving an amendment to the Consolidated Plan reallocating a portion of Program Year 2002 CDBG funds to an American With Disabilities Act upgrade project located at the corners of Nelson and Mason Streets and Nelson and Short Streets. Assistant Planner Bergman responded to questions from Council regarding the proposed projects, Mayor Ferrara opened the public hearing, Steve Thaver, Executive Director, Big Brothers and Sisters, thanked the City for its support for CDBG funds and expressed appreciation. He reported that the organization would be involved more in the South County as they received a Federal grant to assist the Boys and Girls Clubs in North and South County. Kavla Wilburn, EOC Health Services, thanked the Council for its continued support of all of their programs in the South County, especially for the Forty Wonderful Program and the Sr. Health Screening Program. She reported that the A.G. Clinic renovations are close to being finished and the funds being considered for distribution tonight would help them complete the project. Wanda McFarlane, Caring Callers, thanked the Council for adding their organization to the list and for consideration of their application. Bernadette Bernard, Literacy Council, thanked the Council for its continuing support, Upon hearing no further public comments, Mayor Ferrara closed the public hearing. Council Member Costello acknowledged that only 15% of the funds could be provided to public services. He supported the recommendations as presented. Council Member Guthrie supported the recommendations as presented. Council Member Arnold supported the recommendations as presented. Council Member Dickens suggested that in the public services category, he felt that from an equity standpoint, there should be a better balance of distributing the available funds. He also suggested that the Code Enforcement application be reduced to $13,000 and to increase the funds in the Fayade Grant Program to $17,630. In response to a question from Mayor Ferrara, staff clarified that these were preliminary recommendations and that the Council would be requested to formally approve the. funding allocations at a future date. He also explained that there is also an opportunity to reallocate funds if a need was identified in the future, such as what was being requested this evening with 2002 CDBG funds. Discussion ensued concerning the status of the Fayade Improvement Grant Program. Mayor Ferrara supported the shift of funds from Code Enforcement to the Fayade Grant Program as suggested by Council Member Dickens. He did not support reducing any of the funds allocated in the Public Services category, and stated that the recommendations were fair and equitable. CITY COUNCIUREDEVELOPMENT AGENCY MINUTES DECEMBER 14, 2004 PAGE 5 Council Member Costello moved to adopt a Resolution as follows: "A Resolution of the City Council of the City of Arroyo Grande Recommending Amendment of the 2000 Consolidated Plan for the Urban County of San Luis Obispo, including the 2002 Annual Action Plan"; and provide preliminary approval of proposed projects to be funded with the City's allocation of CDSG funds for the Year 2005 as amended to reduce the Code Enforcement atlocation to $13,000 and increasing the Fa~ade Grant allocation to $17,630. Council Member Arnold seconded the motion, and on the following roll call vote: AYES: Costello, Arnold, Dickens, Guthrie, Ferrara NOES: None ABSENT: None There being 5 A YES and 0 NOES, the motion is hereby declared to be passed, 9.b. Consideration of Appeal of Conditional Use Permit Case No. 04-006. Community Development Director Strong presented the staff report and recommended the Council adopt a Resolution upholding the appeal of the Planning Commission's approval of Conditional Use Permit Case No, 04-006, eliminating the condition of approval that requires undergrounding of overhead utilities or the payment of undergrounding in-lieu fees. He also suggested the Council consider and provide direction to staff regarding additional criteria where the waiving of undergrounding of overhead utilities or undergrounding in-lieu fees should be considered. Director Spagnolo responded to questions from Council relating to the proposed improvements. Mayor Ferrara opened the public hearing, and upon hearing no public comments, he closed the public hearing. Council and staff discussion ensued regarding the intent of the proposed project as it relates to the Fa~ade Improvement Program. Council comments included support for the waiver of the underground utility or undergrounding in-lieu fee requirement for this project and support of the alternative language presented by staff as criteria for waiving undergrounding requirements and undergrounding in-lieu fees. Staff was directed to further work on the language and return to the Council with specific recommendations. Staff was also directed to determine if it is possible under some circumstances to collect undergrounding in-lieu fees after the utilities in the area have already been undergrounded by the City. Council Member Guthrie moved to adopt a Resolution as follows: "A Resolution of the City Council of the City of Arroyo Grande Upholding the Appeal of the Planning Commission Approval of Conditional Use Permit Case No. 04-006, Located at 1490 E. Grand Avenue, Applied for by Sukhdev Singh Gill". Council Member Dickens seconded the motion, and on the following roll call vote: AYES: Guthrie, Dickens, Arnold, Costello, Ferrara NOES: None ABSENT: None There being 5 A YES and 0 NOES, the motion is hereby declared to be passed. ..- - ...... CITY COUNCIUREDEVELOPMENT AGENCY MINUTES DECEMBER 14, 2004 PAGE 6 9.c. Consideration of Redevelopment Agency Five-Year Implementation Plan and Ten Year Affordable Housing Compliance Plan. [RDA] RDA Executive Director Adams presented the staff report and recommended the Board of Directors adopt a Resolution approving and adopting the proposed Redevelopment Agency Five- Year Implementation Plan ("Implementation Plan") and the Ten Year Affordable Housing Compliance Plan ("Compliance Plan") for the Arroyo Grande Project Area. He introduced Fernando Cazares, Redevelopment Consultant, Rosenow Spevacek Group Inc. and stated he was available to answer questions. Board Member Costello referred to page 16 of the Five-Year Implementation Plan and suggested that #1, concerning unsafe buildings, be removed. Board Member and staff discussion ensued regarding estimated tax increment value on identified projects within the Implementation Plan (page 20). Chair Ferrara invited public comments on this item. No public comments were received. Board Member Guthrie acknowledged that approval of the Implementation Plan was a State requirement and commented this was a good opportunity to review the status of the City's Redevelopment Agency. He expressed concerns about the tax increment estimates being low. Board Member Dickens commented that this was an appropriate time to review the Five Year Implementation Plan. He spoke of the concepts of redevelopment and he said he looked forward to moving ahead with the Implementation Plan. Board Member Costello commented that the Implementation Plan was an excellent document and he looked forward to developing projects identified in the Plan. He supported adoption of the Plan. Board Member Arnold commented that it was an excellent document and that it was encouraging that the Redevelopment Agency will add real value to the City. He supported the Implementation Plan. Chair Ferrara referred to page 16 (specifically #5, 6, 8 & 9) of the Implementation Plan and requested that staff review the blighting conditions listed and compare them to the conditions within the City's redevelopment area and remove those that do not appear appropriate. Chair Ferrara congratulated RDA Executive Director Adams on his efforts with the City's Redevelopment Agency to make it viable. Board Member Costello moved to adopt a Resolution as follows: "A Resolution of the Arroyo Grande Redevelopment Agency Adopting a Five-Year Implementation Plan for the Arroyo Grande Project Area and the Ten Year Affordable Housing Compliance Plan". Board Member Arnold seconded the motion, and on the following roll call vote: AYES: Costello, Arnold, Dickens, Guthrie, Ferrara CITY COUNCIUREDEVELOPMENT AGENCY MINUTES DECEMBER 14, 2004 PAGE 7 There being 5 A YES and 0 NOES, the motion is hereby declared to be passed. 9.d. Consideration of an Interim Urgency Ordinance Extending the Moratorium on Medical Marijuana Dispensaries. Chief of Police T erBorch presented the staff report and recommended the Council adopt an Interim Urgency Ordinance to extend for ten (10) months and fifteen (15) days, or until repealed, the moratorium on medical marijuana dispensaries. Mayor Ferrara opened the pUblic hearing, and upon hearing no public comments, he closed the public hearing, Council comments included support for approving the Interim Urgency Ordinance to extend the moratorium on medical marijuana dispensaries in order to allow staff time to research the issue, Council Member Dickens moved to adopt an Ordinance as follows: "An Interim Urgency Ordinance of the City of Arroyo Grande Extending the Moratorium on Medical Marijuana Dispensaries". Council Member Guthrie seconded the motion, and on the following roll call vote: AYES: Dickens, Guthrie, Arnold, Costello, Ferrara NOES: None ABSENT: None There being 5 A YES and 0 NOES, the motion is hereby declared to be passed. 10. CONTINUED BUSINESS None. 11. NEW BUSINESS 11.a. Consideration of Pre-Application 0~018, Hampton Inn and Suites; Applicant - Gary White; Location - 1400 W. Branch Street. Community Development Director Strong presented the staff report and recommended the Council review and comment on a proposed preliminary Hampton Inn and Suites, 107-room hotel and 6,000 sq. ft. restaurant development design to be located on the northwest corner of Camino Mercado and West Branch Streets. He noted that the project's representatives, Robert Tuttle, Steve Cool, and Gary White, were present and would make a brief presentation. Steve Cool, proposed developer of the site, commented that it had been determined that the previous approval to construct an office complex at this location was not financially feasible. He commented that following discussions with staff concerning the development of a hotel at this site, they entered into discussions with American Properties Management Corporation. He introduced Bob Tuttle, an architect representing American Properties Management Corporation. Bob Tuttle gave an overview of the proposed 107-room Hampton Inn and Suites project, including average daily room rate ($93), average occupancy rate (70%), projected annual revenues ($2.5 million) and estimated annual Transient Occupancy Tax (TOT) revenue I ($250,000-260,000 in the first year of operation). He acknowledged the topography constraints I CITY COUNCIUREDEVELOPMENT AGENCY MINUTES DECEMBER 14, 2004 PAGE 8 on the site (oak trees, slopes), and displayed a proposed rendering of the hotel project, which would include a restaurant component. He explained that there would be two separate parcels and the restaurant would occupy one parcel and be under separate ownership. He commented on traffic issues and acknowledged there would be a difference between office use and hotel use for peak hour traffic. He stated that a hotel use would have reduced traffic during peak hours. Council questions and discussion ensued concerning the street slope on Camino Mercado; whether there would be any retaining wall placed along W. Branch Street (the applicant indicated no, it would all be landscaped); whether or not there would be a conference room included in the hotel and what the occupancy would be (the applicant indicated there would be 1,200 square foot of meeting space available that could be made up of multiple room sizes); what the size of the restaurant pad would be and what kind of restaurant was anticipated (the applicant indicated that it would be a medium to large sized restaurant of approximately 6,000 square feet and would be an upper scale restaurant); clarification concerning estimated TOT revenue; clarification concerning the distance from West Branch Street to where the building would begin; what the estimated hotel rates would be; and discussion concerning the design of the building and the restaurant. Mayor Ferrara invited public comments on this item. No public comments were received. Council Member Arnold stated he was a proponent of a hotel on this site; however, he expressed concerns about the proposed size of the hotel. He commented that he had conducted an informal survey of Hampton Inns on the Internet and determined that there was no standard design theme or size for Hampton Inns throughout the State. He commented that this would allow opportunities to amend the design to suit this particular site. He commented that this was a prominent corner in the City and he would be supportive of a hotel here; however, it will require an architectural design that will mitigate the size such as a trellis used more extensively on the lower level, and faux balconies on some of the higher level rooms to break up the mass of the building. He also expressed concerns about the water and sewer use at a hotel and the potential impacts, which will need to be reviewed. Council Member Costello also supported a hotel at this location. He stated that he would like to see a model of the proposed project; expressed concerns about the fourth story at the back of the project; and stated that size, mass, and scale will be critical review factors. He said that the traffic, water, and sewer issues would come up and need to be analyzed and solved before moving forward, He referred to the slope of Camino Mercado and said this impact would have to be reviewed carefully as it relates to the project. Council Member Dickens supported the idea of a hotel establishment at this site; however, he stated that as this project comes forward, he would be looking at potential sewer deficiencies and traffic impacts. He said he would like to see a 3-D model come forth to depict the hotel's orientation in relation to the adjacent properties and their existing buildings. He commented on the proposed height of the building on the W. Branch Street side and felt it was too intrusive. He preferred two stories, as the proposed height will be out of scale with the surrounding buildings. He suggested reconfiguring the hotel around the pool and perhaps a reduction in the number of rooms. He supported the concept of a restaurant; however, it is a secondary use and it was not necessary that the restaurant be 6,000 square feet. He suggested a reconfiguration of the restaurant. He commented that he was not a big proponent of tile roofing. He favored stepping back terraces to add dimension and reduce the mass. . ~-_..- CITY COUNCIUREDEVELOPMENT AGENCY MINUTES DECEMBER 14, 2004 PAGE 9 Council Member Guthrie expressed concerns about the proposed mass of the building and suggested reducing the number of stories and/or reducing the number of rooms and moving the hotel away from W. Branch Street. He referred to the adjacent Mid State Bank buildings that are only two stories. He felt there were too many units for the size of the lot; suggested building the hotel without the restaurant; commented on the traffic issue; expressed concerns about the parking issue, particularly if there is a successful adjacent restaurant which could impact the number of available hotel parking spaces; commented that water and sewer issues will have to be studied; and concluded by stating that although there were many issues, the hotel project was desirable and worth pursuing. Mayor Ferrara referred to the architectural rendering and supported the idea of a three~ dimensional model. He referred to the design of the building and suggested it be less vertical and more horizontal due to the challenging topography of the site and to put this project in scale. He supported the idea of a restaurant on the site and commented that the City desperately needs a lodging/conference facility. He commented on the various architectural styles available and stated he tended to favor Mediterranean, He encouraged adding dimension through the use of various architectural materials and features. He acknowledged the environmental, circulation, water, and sewer issues that will need to be reviewed, studied, and mitigated. He concluded by stating that the scale of the project and it's accompanying intensity of use were the two key issues. Council Member Costello suggested consideration of multi-level parking. Upon conclusion of Council comments, Mayor Ferrara ensured that the applicant had received sufficient feedback and direction with regard to the proposed project. There was no formal action on this item. Mayor Ferrara called for a break at 9:43 p.m. The Council reconvened at 9:47 p.m. 11.b. Consideration of Selection of Council Member Costello as Mayor Pro Tem. City Manager Adams presented the staff report and recommended the Council appoint Council Member Costello as the Mayor Pro Tem for the next one-year period. Mayor Ferrara invited public comments on this item. No public comments were received, There was brief discussion about modifying the existing policy for selecting the Mayor Pro Tem, which would be based on time served on City commissions and committees when two members have the same tenure on the City Council. City Manager Adams said he would bring this issue back to the Council on a future agenda for consideration. Council Member Arnold moved to appoint Council Member Costello as the Mayor Pro T em for the next one-year period. Council Member Dickens seconded the motion, and on the following roll call vote: AYES: Arnold, Dickens, Guthrie, Costello, Ferrara NOES: None ABSENT: None CITY COUNCIUREDEVELOPMENT AGENCY MINUTES DECEMBER 14, 2004 PAGE 10 There being 5 A YES and 0 NOES, the motion is hereby declared to be passed, 11.c. Consideration of Appointment of Council Members to Regional Boards, Commissions and Committees. City Manager Adams presented the staff report and recommended the Council make appointments to those regional boards, commissions, and committees with Council representation, Mayor Ferrara invited public comments on this item. No public comments were received, The following appointments to regionc;il boards, commissions, and committees were discussed and tentatively made: AGENCY PRIMARY SECONDARY South County Area Transit (SCAT) Jim Dickens Jim Guthrie Staff Representative: City Manager " Council of Governments! Tony M. Ferrara Jim Dickens Regional Transit Authority (SLOCOGlRT A) Staff Representative: Public Works Director/ Community Development Director City Selection C~mmlttee (Mayors') Tony M. Ferrara Joe Costello Staff Representative: Not Applicable South San Luis Obispo County Tony M. Ferrara Jim Dickens Sanitation District (SSLOCSD) Staff Representative: N()t Applicable Integrated Waste Management . Ed Arnold Jim Guthrie Authority Board (IWMA) Staff Representative: Community Development Director Z~ne 3 Water Advisory Board Joe Costello Ed Arnold Staff Representative: Public Works Director County Water Resources Joe Costello Ed Arnold Advisory Committee (WRAC) Staff Representative: Public Works Director Economic Vitality Corporation Jim Guthrie Joe Costello (EVC) Staff Representative: City Manager/ Economic Development Director CITY COUNCIUREDEVELOPMENT AGENCY MINUTES DECEMBER 14, 2004 PAGE 11 AGENCY PRIMARY SECONDARY Air Pollution Control District Joe Costello N!A Board (APCD) Staff Representative: Not Applicable South County Youth Coalition Jim Dickens Ed Arnold Staff Representative: Chief of Police! Director of Parks, Recreation and Facilities California Joint Powers Insurance Ed Arnold Staff Representative Authority (CJPIA) Staff Representative: City Manager! Human Resources Manager Mayor Pro Tern Costello moved to approve the appointments to the regional boards, commissions, and committees, Council Member Dickens seconded the motion, and the motion carried unanimously by voice vote. 12. CITY COUNCIL MEMBER ITEMS None, 13. CITY MANAGER ITEMS None. 14. COUNCIL COMMUNICATIONS None. 15. STAFF COMMUNICATIONS City Manager Adams reminded the Council of the City's Holiday luncheon to be held Friday, December 17,2004 at the Arroyo Grande Woman's Club and Community Center. 16. COMMUNITY COMMENTS AND SUGGESTIONS: Kerrv Bovle, Arroyo Grande, referred to the Valley Gardens Paving project and presented a thank you card from the neighborhood to the Council thanking the City for the quality of paving work done on this project. John Keen, Arroyo Grande, referred to the E. Grand/Halcyon traffic signal replacement project and commented that there was a need to make sure the intersection is reconfigured to meet future traffic generation patterns and that there may be a need to acquire additional property. to do the project right. Steve Mathieu, AGP Video, welcomed the new Council Members. He spoke of new equipment he is researching for cablecasting the Council meetings, presented the City with taped footage of the first six months of 2004 Council meetings on DVD, and thanked staff and Council for approving their new contract. 17. ADJOURNMENT Mayor Ferrara adjoined the meeting at 10:14 p.m. CITY COUNCIUREDEVELOPMENT AGENCY MINUTES DECEMBER 14, 2004 PAGE 12 Tony M. Ferrara, Mayor ATTEST: Kelly Wetmore, City Clerk (Approved at CC Mtg ) 8.e. MEMORANDUM TO: CITY COUNCIL FROM: KELLY WETMORE, DIRECTOR OF ADMINISTRATIVE SERVICES/CITY CLERK yLw SUBJECT: REJECTION OF CLAIM AGAINST CITY - S. AUTRY DATE: JANUARY 11, 2005 RECOMMENDATION: It is recommended the City Council reject the claim for damages against the City filed by Mr, Stephen Autry, FUNDING: None, DISCUSSION: The City's insurance administrators have reviewed the claim of Mr. Autry and recommend it be rejected. Attachments: 1, Status Report 2, Rejection Letter 'I TY './lPFr~;~p - '.'," .':- 040EC22 Pi) 1:06 PRELIMINARY REPORT December 17, 2004 City of Arroyo Grande P,O, Box 550 Arroyo Grande, CA 93420 Attention: Steven Adams, City Manager RE: Our Principal : CJPIA Member City : City of Arroyo Grande DOl 11/28/04 Claimant Stephen Autry My File No. 283693 PREVIEW: The claimant alleges a limb from a City tree damaged his vehicle. REPLY REQUEST GOVERNMENT CODE REQUIREMENTS Action Bv Public Entity: I recommend that the City forward a standard rejection letter to the following claimant: Stephen Autry 261 S. 1l th St. #3 Grover Beach CA 93433 Please send a copy of this 'letter to me to document this file. Statute Of Limitations: The statute of limitations will expire six months from the rejection CARL WARREN & CO. An Employee-Owned Company CLAIMS MANAGEMENT - CLAIMS ADJUSTERS PO BOX 1052 - SAN LUIS OBISPO, CA 93406-1052 PHONE: (805) 544-7963 - FAX: (805) 544-1068 City of Arroyo Grande Steve Adams December 17, 2004 Page Two (283693) CITY REPORT The City provided information related to this tree. The records indicate the tree was healthy and routinely trimmed. The branch fell as a result of windy conditions. LIABILITY The City is not responsible for this loss. The tree was properly maintained. The branch fell as result of the wind and is deemed an act of nature. Thec1aim should be rejected, COMMENT: I will diary this file to January 16,2005 awaiting receipt of the requested copy of the rejection letter. Very truly yours, Carl Warren & Company Keith Swanson, LPCS, CCLA Cc Carl Warren & Co. Attention: Dwight Kunz -2- Carl Warren & Co. Cff":l 0/ P.O. Box 550 ~ &~ 214 East Branch Street Arroyo Grande, C~ 93421 Phone: (805) 473-5414 ADMINISTRATIVE SERVICES FAX: (805) 473-0386 E-Mail: agclty@arroyogrande.org January 12, 2005 Mr, Stephen Autry 261 S, 11th Street #3 Grover Beach CA 93433 REJECTION OF CLAIM PRESENTED WITHIN SIX MONTHS Notice is hereby given that the claim you presented to the City Council of the City of Arroyo Grande on December 8, 2004 was rejected by the City Council on January 11,2005, WARNING Subject to certain exceptions, you have only six (6) months from the date this notice was personally delivered or deposited in the United States mail to file a court action on this claim (See Government Code Section 945.6). This time limitation applies only to causes of action arising under California law for which a claim is mandated by the California Government Tort Claims Act. Government Code Sections 900 et. seq,. Other causes of action, including those arising under federal law, may have different time limitations for filing. You may seek the advice of an attorney of your choice in connection with this matter, If you desire to consult an attorney, you should do so immediately, Kelly Wetmore Director of Administrative Services/City Clerk c: City Manager City Attorney Director of Parks, Recreation & Facilities Carl Warren & Co. 8.f. MEMORANDUM TO: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER'/t SUBJECT: CONSIDERATION OF MODIFICATION TO THE PROCEDURE FOR SELECTION OF THE MAYOR PRO TEM DATE: JANUARY 11, 2005 RECOMMENDATION: It is recommended the City Council approve the proposed addition to the procedure for selection of the Mayor Pro Tem. FUNDING: There is no cost impact from this action, DISCUSSION: At the December 10, 2002 meeting, the City Council established a new policy regarding selection of the Mayor Pro Tern, At that time, the City Council agreed to appoint the Mayor Pro Tem on a one-year rotational basis by seniority. The following provisions are set forth in the City Council Operations Manual under Policy 4. City Council Appointments: A. The City Council appoints a Council Member as Mayor Pro Tem to serve the duties of Mayor in his/her absence. B. The Mayor Pro Tem shall serve a term of one year, C, The appointment of the Mayor Pro T em takes place at the first regular meeting in December of each year. D. It is the City Council's policy to rotate appointment of the Mayor Pro Tem based upon the seniority of City Council Members that have not yet served in the position of Mayor Pro Tem. At the December 14, 2004 meeting, the City Council indicated that an addition to the policy is necessary to address circumstances when two members have the same tenure on the City Council and indicated a preference that priority be given based upon time served on commissions rather than based upon vote count. S:\CITY MANAGER\STEVE\Council Reports\Mayor Pro Tern Process 1.II.OS.doc CITY COUNCIL MODIFICATION TO PROCEDURE FOR SELECTION OF MAYOR PRO TEM JANUARY 11, 2005 PAGE 2 Therefore, it is recommended that section D, of the policy be modified to read as follows: D, It is the City Council's policy to rotate appointment of the Mayor Pro Tem based upon the seniority of City Council Members that have not yet served in the position of Mayor Pro Tem. If two Members of the City Council have the same seniority, the order of rotation will be based upon time served on a City Council appointed Commission and/or Committee prior to being elected to the City Council. ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Approve the recommended addition to the procedure for selection of the Mayor Pro Tem; - Modify the policy to provide priority based upon vote count rather than time served on commissions and/or committees when two Council Members have the same seniority; - Do not modify the procedure for selection of the Mayor Pro Tem; - Provide staff direction, - 8.g. MEMORANDUM TO: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGE~ SUBJECT: CONSIDERATION OF COUNCIL APPOINTMENT TO PLANNING COMMISSION DATE: JANUARY 11, 2005 RECOMMENDATION: It is recommended the Council approve the recommendation of Council Member Jim Guthrie to appoint Chuck Fellows to the Planning Commission. FUNDING: There is no fiscal impact. RECOMMENDATION: On January 14, 1997, the City Council adopted Ordinance No, 481 C,S. amending the composition of applicable Commissions and Boards from seven to five members and adopted Resolution No. 3192 establishing Council policy as it relates to the appointment procedure to various Commissions and Boards, The Ordinance states that the Mayor and each respective member of the Council shall appoint a representative to the various Commissions and Boards subject to the approval by a majority of the Council. All Commission and Board members serve at the pleasure of the Council. Nan Fowler has submitted her resignation from the Planning Commission, Her term was due to expire January 31, 2005, Council Member Guthrie's proposed appointment will replace Ms. Fowler's seat on the Planning Commission. Council Member Guthrie has recommended that Chuck Fellows be approved to fill this vacancy, Staff has recommended the appointment be made at this time in order to provide for a full Commission membership at their next meeting. AL TERNA TIVES: The following alternatives are provided for the Council's consideration: - Approve the recommended appointment; - Do not approve the recommended appointment; - Provide direction to staff. Attachment: 1. Application form S:\CITY MANAGER\STEVE\Council Reports\Guthrie Planning Commission Appointment 1.11.05.doc CITY OF ARROYO GRANDE ATTACHMENT 1 . j . RESERVOIR OF CITIZENS TO SERVE Planning Commission R~CEI'/rO Parks and Recreation Commission _~. ' T ~/'. ~~.~ /:. t~;:' 1J \( n ..~. f: . '\ . , ~', ..~ Years Lived in Arroyo Grande 2-Lf- Traffic Commission Senior Advisory Commission 0' f11"'1' I'" .~! II' 43 Registered Vot~ArrOyo Grande 4 '"h 0 P.II . Architectural Review Committee Yes . No _ Downtown Parking Advisory Board (must own business In the Village area) Special Boards/Committees (varies) NAME Cff U C(< Fi:=LL D~vS HOME 202 C/b-.J Yo N wIrY q-e;f -1 y. 61- ADDRESS PHONE PRESENT EMPLOYER SELF (A)"OF /l-/-O'f) POSITION REAL -r Of<... * BUSINESS ADDRESS 2..0""2- CANYol...J ~' '1 PHONE ~8(- 6(DD f"fL S'D BII'II SFU. j'nJTlq(j~5. EDUCATIONAL BACKGROUND 11012 T~ ~ B {)7A?J Y High School College AA I g A-, fVt.A' 8'O(O~' , I ADDITIONAL EDUCATIONAL INFORMATION COMMUNITY AND CIVIC INTERESTS I R'E Sl::-I<.. Vl? 7t/-tE= VI '-I-A- 6F Ci:> ~ FoVNP92 /tlJ D 6fIf nMt1N ~ STrlEeT TrleE P f<E ~.t/It 7 UlN /'b...o 'V~ rJ- M €>ST. MC PDt< ;::iJt/f< '-( E'ItflS . The City Council would like to have the names of three (3) Arroyo Grande References: NAME ADDRESS 1. Co S1'\A..o llv S)1 C/t~ lf7j-J7/3 A-G- 2. ..5c~ C- -=?t/04 tc..1 ~7]-273'f A-G 3. tJ (Cb(. t4t...T~ Lf74-g'06z /}& ARE YOU WILLING TO SERVE ON THE; COMMIS$ION/COMMITTEElBOARD MEETING TIMES SHOWN BELOW: Planning Commission, First and Third Tuesday of each month, 6:00 PM Yes ~_ Parks and Recreation Commission, Second Wednesday.of each month, 6:30 PM Yes_No_ Traffic Commission, the day (Monday) before the third Tuesday of each month, 7:00 PM Yes_No_ Senior Advisory Commission. First Wednesday of each month, 3:00 PM Yes _No_. Architectural Review Committee First Monday of each month, 3:15 PM Yes _No_ Downtown Parking Advisory Board - Meets as needed Yes _No_ Special Boards/Committees (V~ Yes ---:No_ Date 11-16-0]L Signature The Arroyo Grande City Council requests Information about your Interest (and education, if applicable), in serving on a commission or committee, specifically your comments and views relative to the role and responsibilities of the Planning Commission, Parks and Recreation Commission, Traffic Commission, Senior Advisory Commission, Architectural Review Committee or a Special Board/Committee. Please note such Information on the reverse side of this form. Thank you for your interesl THIS FORM IS A MATTER OF PUBLIC RECORD IF APPOINTED. COMPLETION OF A STATE CONFLICT OF INTEREST FORM IS REQUIRED 8/2004 CITY COUNCIL CONSIDERATION OF ACCEPTANCE OF THE OFFICE OF TRAFFIC SAFETY GRANT JANUARY 11, 2005 PAGE 2 AL TERNA TIVES: The following alternatives are provided for the Council's consideration: . Approve staffs recommendation to accept the OTS Grant; . Do not approve staffs recommendation and reject the OTS Grant; . Provide direction to staff. Attachment: 1, Office of Traffic Safety Letter of Approval. ATTACHMENT 1 STaR OP CALIPOIINIA ARNOLD. 8OtfttIJIar".~""_. ~ autll_. TllAn8FOIITATION AND HOU8ING AGIINOY MINN. WRIGHT.......,.. ~IUTMrY Orr.o.. op TIIAPPIO IIAPIITY a #' 7000 FRANKLIN BOULEVARD. SUITE" SACRAMENTO. CA 95823-1899 . ; www.ots.ca.gOY \~<~ ~. (918) 282-0990 (800) 735-2929 (TTITDD-Referral) ..u...... ....c. (918)282-2980 (FAX) .. ,...... ...." September 29, 2004 Project No. EM0518 David L. Mathe Program Manager Arroyo Grande Fire Department P. O. Box 550 Arroyo Grande, CA 93421 Dear Mr. Mathe: The Office of Traffic Safety (OTS) has approved your traffic safety project as part of the California Traffic Safety Program. Costs incurred must be in accordance with your project agreement, and recorded in your accounting system. No other costs can be allowed without prior OTS approval. Costs incUITed prior to the starting date or subsequent to the closing date of this project are not reimbursable. Enclosed are the appropriate forms for compliance with the program requirements. Preparation of the final report is a contractual obligation. Although a 60-day grace period is allowed for delivery of the final report to this office, no costs incidental to its preparation or delivery are aIlowable subsequent to your project agreement ending date. Please refer to the above project number in all correspondence regarding this project. Ifyoll have any questions, please contact David Doucette, Regional Coordinator, at (916) 262-0957 or e-mail at ddoucette@ots.ca.gov. Sincerely, . C \ II \, \- t.r-L) CHRISTOPHER J. MURPHY Interim Director DD:jo Enclosure cc: Terence J. Fibich Steve Adams Fiscal 8.1. MEMORANDUM TO: CITY COUNCIL FROM: TIMOTHY J. CARMEL, CITY ATTORNE~ SUBJECT: CONSIDERATION OF A RESOLUTION CONSENTING TO THE ASSIGNMENT OF A COMMUNICATIONS SITE LEASE AGREEMENT FROM CINGULAR WIRELESS TO T -MOBILE USA, INC. DATE: JANUARY 11, 2005 RECOMMENDATION: Staff recommends that the Council adopt a Resolution consenting to the assignment of a Communications Site Lease Agreement dated January 14, 2004, from Cingular Wireless to T-Mobile USA, Inc, FUNDING: All costs and expenses related to the review and processing of the proposed assignment are the responsibility of T-Mobile, There is no fiscal impact to the City. DISCUSSION: On January 14, 2004, the City entered into a Communications Site Lease Agreement (the "Lease") with Pacific Bell Wireless, LLC, doing business as Cingular Wireless ("Cingular"), By letters dated November 22, December 6 and 30, 2004, the City received notification from Cingular requesting that the City approve an assignment of the Lease to T -Mobile USA, Inc, It should be noted that the proposed assignment is in the form of a sale of Cingular's interest in the Lessee to T-Mobile USA, Inc, and that Pacific Bell Wireless, LLC, will continue to provide the services specified in the Lease, The sale of Cingular's interest under the Lease will result in a change of control of Pacific Bell Wireless, LLC, which constitutes an assignment within the meaning of Article 13 of the Lease, Cingular will continue to be bound by the terms and conditions of the Lease, ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Approve staff's recommendation; - Do not approve staff's recommendation; - Provide direction to staff, Attachments: 1. Lease 2, Letters from Cingular dated November 22, December 6 and 30, 2004 RESOLUTION NO. A RESOLUTION .oF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE CONSENTING TO THE ASSIGNMENT TO T -MOBILE USA, INC. OF A COMMUNICATIONS SITE LEASE AGREEMENT DATED JANUARY 14, 2004 BETWEEN PACIFIC BELL WIRELESS, LLC AND THE CITY OF ARROYO GRANDE WHEREAS, Pacific Bell Wireless, LLC, a Nevada Limited Liability Company doing business as Cingular Wireless ("Cingular") entered into a Communications Site Lease Agreement (the "Lease") with the City of Arroyo Grande ("City") for approximately 510 square feet of land, space on the water tank for communications antennae, and access and utility easements connected therewith for real property located on Branch Mill Road, Arroyo Grande, commonly known as the Reservoir.#4 site; and WHEREAS, By letters dated November 22, December 6 and 30, 2004, Cingular notified City that Cingular and T-Mobile USA, Inc" ("T-Mobile") have agreed to the sale of all of Cingular's ownership interest in the Lease to T-Mobile; and WHEREAS, The sale of Cingular's interest under the Lease will result in a change of control of Pacific Bell Wireless, LLC, which constitutes an assignment within the meaning of Article 13 of the Lease; and WHEREAS, Cingular and T-Mobile have requested that City consent to the assignment; and WHEREAS, Upon review of T -Mobile's operational experience and financial stability, City staff have concluded that T -Mobile satisfies general assignment criteria, NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Arroyo Grande does hereby consent to the sale of Cingular's interest in the Lessee and assignment of the Lease to T -Mobile, subject to the following conditions: 1, T -Mobile shall agree to be bound by all requirements of the Lease and to comply with all City rules, regulations and policies related to the subject matter of the Lease, 2, Cingular shall not be relieved of any future performance, liabilities or obligations under the Lease. 3, T -Mobile shall pay all costs and expenses incurred by City in reviewing the transaction, and in processing and preparing all necessary paperwork related to the assignment. RESOLUTION PAGE 2 4. This assignment shall not become effective until Cingular and T -Mobile accept in writing the conditions of this Resolution, Such acceptance shall be filed with the City Clerk within thirty (30) days atter the date of approval of this Resolution. On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit: AYES: NOES: ABSENT: The foregoing Resolution was passed and adopted this _ day of January 2005. RESOLUTION NO. PAGE 3 TONY M. FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY -- ..~._._._._~,,--_._--- ATTACHMENT 1 COMMUNICATIONS SITE LEASE AGREEMENT This Communications Site Lease Agreement (Ground) (Agreement) is entered into this 111H day of January, 2004, between PACIFIC BEll WIRELESS, llC, a Nevada limited liability company doing business as CINGUlAR WIRELESS ("Lessee"), and CITY OF ARROYO GRANDE, a municipal corporation formed under the laws of the State of California ("Lessor"), For good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1. PREMISES. Lessor is the owner of a parcel of land (the "Land") located on Branch Mill Road, Arroyo Grande, California, commonly known as the Reservoir 4 site, The Land is more particularly described in Exhibit A annexed hereto, Lessor hereby leases to Lessee and Lessee leases from Lessor, approximately five hundred ten (510) square feet of the Land and all access and utility easements, if any, (the "Premises") described in Exhibit B annexed hereto. 2. USE. The Premises may be used by Lessee for reasonable activities in connection with the provision of mobile/wireless communications services, Lessee shall, at Lessee's sole cost and expense, make application for and obtain all licenses, permits and any and all other necessary approvals that may be required for Lessee's intend~d use of the Premises, Lessee is aware that Lessee must obtain a conditional use permit from the City of Arroyo Grande and comply with conditions imposed thereon as a condition precedent to occupancy of the Premises, 3. TESTS AND CONSTRUCTION. Lessee shall have the right at any time, following the full execution of this Agreement, to enter upon the Land for the purposes of making appropriate engineering and boundary surveys, inspections, soil test borings, other reasonably necessary tests (collectively, "Tests"). Lessee shall comply with the repair provisions of Paragraph 15 below during and after all Tests and related work. 4. TERM. The term of this Agreement shall be five (5) years commencing on the date Lessee obtains a conditional use permit as specified in Paragraph 2 above (Commencement Date) and terminating on the fifth anniversary of the Commencement Date (the Term) unless otherwise terminated as provided in Paragraph 10, Lessee shall have the right to extend the Term for three (3) successive five (5) year periods (The Renewal Terms) on the same terms and conditions as set forth herein. This Agreement shall automatically be extended for each successive Renewal Term unless Lessee notifies Lessor of its intention not to renew prior to commencement of the succeeding Renewal Term. 5. RENT. (a) Within fifteen (15) business days of the Commencement Date and on the first day of each month thereafter, Lessee shall pay to Lessor as rent Fifteen Hundred Dollars ($1,500.00) per month ("Rent"). Rent for any fractional month at the beginning or at the end of the Term or Renewal Term shall be prorated. Rent shall be payable to Lessor at City of Arroyo Grande, P.Q, Box 550,214 East Branch Street, Arroyo Grande, CA 93421; Attention: Financial Services Director. (b) Rent shall be increased on each anniversary of the Commencement Date by an amount equal to three percent (3%) of the Rent for the previous year during the initial Term and all Renewal Terms. (c) Rent payments made after the tenth (10th) day of any month will be considered delinquent, and shall accrue interest at the rate of t~n percent (10%) per annum on the delinquent account. If the tenth (10th) day of the month is on a Saturday, Sunday or holiday, then Lessee has until the next business day for the payment to be received by Lessor, (d) Within thirty (30) days of the full execution of this Agreement, Lessee shall pay to Lessor as additional consideration a one time administrative fee of Two Thousand Dollars ($2,000.00) for City transactional costs associated with preparation and processing of this Agreement. 6. FACILITIES; UTILITIES; ACCESS. (a) Subject to the terms and conditions herein, Lessee has the right to erect, maintain and operate on the Premises radio communications facilities, utility lines, transmission lines, air conditioned equipment shelter(s), electronic equipment, radio transmitting and receiving antennas, supporting equipment and structures thereto ("Lessee Facilities"), In connection therewith, Lessee has the right to do all work necessary to prepare, maintain and alter the Premises for Lessee's business operations and to install 2 . transmission lines connecting the antennas to the transmitters and receivers, All of Lessee's construction and installation work shall be performed at Lessee's sole cost and expense and in a good workmanlike manner. Except as otherwise specified herein, title to the Lessee Facilities shall be held by Lessee, All of the Lessee Facilities shall remain Lessee's personal property and are not fixtures. Lessee shall remove all the Lessee Facilities at its sole expense on or before the expiration or earlier termination of this Agreement; provided, Lessee repairs any damage to the Premises caused by such removal. Additionally, upon the expiration or earlier termination of this Lease, Lessee shall surrender the Premises to Lessor in good condition, less ordinary wear and tear. Should Lessee fail to remove the Lessee Facilities from the Land within thirty (30) days of the expiration or earlier termination of this Agreement, Lessor may remove and store the Lessee Facilities at Lessee's sole cost and expense, If Lessee does not claim the Lessee Facilities, and provided that Lessor has given Lessee any third party financing entity sixty (60) days prior written notice, the Lessee Facilities shall be deemed abandoned, Lessee shall post a Twenty-Five Thousand Dollars ($25,000) surety bond for removal of the Lessee Facilities. The aforementioned surety bond shall be in effect for the initial five (5) year Term and all Renewal Terms of this Agreement. Lessee agrees to increase the amount of the bond for each Renewal Term in the same proportion that rent increases in said Renewal Term, (b) Lessee shall pay for the electricity and all other utility services it consumes or uses in its operations at the rate charged by the servicing utility.company, Any electrical upgrade, if necessary, shall be at lessee's sole cost and expense, Lessee shall have the right to draw electricity and other utilities from the existing utilities on the Land or obtain separate utility service from any utility company that will provide service to the land (including a standby power generator for lessee's exclusive use.) (c) Lessee, Lessees employees, agents, subcontractors, lenders and invitees shall have access to the Premises without notice to lessor twenty-four (24) hours a day, seven (7) days a week, at no charge. During the Term of the Agreement, Lessor grants to Lessee, and its agents, employees, contractors, guests and invitees, a non-exclusive right and easement for pedestrian and vehicular ingress and egress across that portion of the land described in Exhibit B. (d) Lessor shall maintain all access roadways from the nearest public roadway to the Premises in a manner sufficient to allow pedestrian and vehicular access at all times under normal weather conditions. lessor shall be responsible for maintaining and repairing such roadways, at its expense, except for any damage caused by lessee's use of such roadways. (e) Prior to commencing construction of lessee's Facilities, Lessee shall obtain Lessor's approval of Lessee's work plans. 3 7. INTERFERENCE. (a) Lessee shall construct, repair and operate the L:essee Facilities in such a manner that will not cause interference to Lessor including, but not limited to, Lessor's re- broadcaster for its fire, police and other public safety departments, and other lessees or licensees of the Land. All operations by Lessee shall be in compliance with all Federal Communications Commission ('FCC") requirements and all applicable laws, (b) Subsequent to the installation of the Lessee Facilities, Lessor shall not permit its lessees or licensees to install new equipment on the Land or property contiguous thereto owned or controlled by Lessor, if such equipment will cause interference with Lessee's operations. Such inte.rference shall be deemed a material breach by Lessor. In the event interference occurs, Lessor agrees to take all reasonable steps necessary to eliminate such interference, in a reasonable time period. Notwithstanding anything herein to the contrary, in the event Lessor fails to comply with this paragraph, Lessee's sole remedy is to terminate this Agreement. 8. TAXES. If personal property taxes are assessed, Lessee shall pay any portion of such taxes which are attributable to the Lessee Facilities. Except as provided immediately below, Lessor shall pay all real property taxes attributable to the Land. Lessee shall reimburse Lessor for any increases in real property taxes which are assessed as a result of Lessee's improvement to the Land, As a condition of Lessee's obligation to pay such increases, Lessor shall first provide to Lessee the documentation from the taxing authority indicating the increase is due to Lessee's improvements, 9. WAIVER OF LESSOR'S LIENS. (a) Lessor waives any lien rights it may have concerning the Lessee Facilities which are deemed Lessee's personal property and not fixtures, and Lessee has the right to remove the same at any time without Lessor's consent. (b) Lessor acknowledges that Lessee has entered into a financing arrangement including promissory notes and financial and security agreements for the financing of the Lessee Facilities (the" Collateral") with a third party financing entity (and may in the future enter into additional financing arrangements with other financing entities), In connection therewith, Lessor (i) consents to the installation of the Collateral; (ii) disclaiming any interest in the Collateral, as fixtures or otherwise, and (iii) agrees that the Collateral shall be exempt from execution, foreclosure, sale, levy, attachment, or distress for any Rent due or to become due and that such Collateral may be removed at any time without recourse to legal proceedings, 4 10. TERMINATION. This Agreement may be terminated on thirty (30) days prior written notice as follows: (i) by either party upon a default of any covenant or term hereof by the other party, which default is not cured within sixty (60) days of receipt of written notice of default, provided that the grace period for any monetary default is ten (10) days from receipt of notice; (ii) by Lessee if it does not obtain or maintain any license, permit or other approval necessary for the construction and operation of the Lessee Facilities; or (Hi) by Lessee if Lessee is unable to occupy and utilize the Premises due to an action of the FCC, including without limitation, a take back of channels or change in frequencies; or (v) by Lessee if Lessee determines that the Premises are not appropriate for its operations for economic or technological reasons, including, without limitation, signal interference. Should this Agreement be terminated pursuant to this Paragraph 10, Lessee shall pay the Rent due up to the effective date of termination. 11. DESTRUCTION OR CONDEMNATION. If the Premises or Lessee Facilities are damaged, destroyed, condemned or transferred in lieu of condemnation, Lessee may elect to terminate this Agreement as of the date of such damage, destruction, condemnation or transfer in lieu of condemnation, by giving notice to Lessor no more than forty-five (45) days following the date of such damage, destruction, condemnation or transfer in lieu of condemnation, 12. INSURANCE. Lessee shall maintain the following insurance: (1) Commercial General Liability with limits of $5,000,000.00 per occurrence, covering Lessee's use, occupancy and operations on the Premises; (2) Automobile Liability with a combined single limit of $2,000,000,00 per accident; (3) Workers Compensation as required law; and (4) Employer's Liability with limits of $1,000,000.00 per occurrence. Lessee shall provide to Lessor a certificate of insurance evidencing the coverage required by this paragraph prior to entering the Land, Each policy of insurance shall be endorsed to state that it shall not be suspended, canceled or reduced in coverage or in limits except after thirty (30) days prior written notice has been given to Lessor. 13. ASSIGNMENT AND SUBLETTING. Lessee may assign this Agreement or sublet the Premises or any portion thereof to any entity, subject to Lessor's prior written consent and the assignee assuming all of Lessee's obligations herein. Under any such assignment or subletting, Lessee shall not be relieved of any future performance, liabilities, or obligations under this Agreement. Lessor may assign this Agreement upon written notice to Lessee, subject to the assignee assuming all of Lessor's obligations herein, including, but not limited to, those set forth in Paragraph 9 ("Waiver of Lessor's Lien") above. This Agreement shall run with the property 5 and shall be binding upon and inure to the benefit of the parties, their respective successors, personal representatives, heirs and permitted assigns, Notwithstanding anything to the contrary contained in this Agreement, Lessee may assign, mortgage, pledge, hypothecate or otherwise transfer without notice or consent its interest in this Agreement to any financing entity, or agent on behalf of any financing entity to whom Lessee (i) has obligations for borrowed money or in respect of guaranties thereof, (ii) has obligations evidenced by bonds, debentures, notes or similar instruments, or (iii) has obligations under or with respect to letters of credit, bankers acceptances and similar facilities or in respect of guaranties thereof, 14. WARRANTY OF TITLE AND QUIET ENJOYMENT. Lessor warrants that: (i) Lessor owns the Land in fee simple and has rights of access thereof and the Land is free and clear of all liens, encumbrances and restrictions, except as disclosed by the public records: (ii) Lessor has full right to make and perform this Agreement; and (iii) Lessor covenants and agrees with Lessee that upon Lessee paying the Rent and observing and performing all of the terms, covenant and conditions on Lessee's part to be observed and performed, Lessee may peacefully and quietly enjoy the Premises, 15. REPAIRS. Lessee shall be required to make any repairs to the Premises or Land necessitated by reason of Lessee's action or inaction, including, but not limited to, Lessee's tests and/or Lessee's construction, use, operation and maintenance of the Lessee Facilities, Exceptas set forth in Paragraph 6(a) above, upon expiration or termination hereof, Lessee shall restore the Premises to the condition in which it existed upon execution hereof, reasonable wear and tear excepted, 16. HAZARDOUS SUBSTANCES. Lessee agrees that it will not use, generate, store or dispose or permit the use, generation, storage or disposal of any Hazardous Material on, under, about or within the Land in violation of any law or regulations, To the best of Lessor's knowledge without investigation, Lessor represents, warrants, and agrees (1) that neither Lessor nor, to the best of Lessor's knowledge without investigation, any third party has used, generated, stored or disposed of, or permitted the use, generation, storage or disposal of, any Hazardous Material (defined below) on, under, about or within the Land in violation of any law or regulation, and (2) that Lessor will not, and will not permit any third party to use, generate, store or dispose of any Hazardous Material on, under, about or within the Land in violation of any law or regulation. Lessor and Lessee each agree to defend, indemnify and hold harmless the other and the other's partners, affiliates, agents and employees against any and all losses, liabilities, claims and/or costs (including reasonable attorneys= fees and costs) arising from any breach of any representation, warranty or agreement contained in 6 ------- this paragraph, As used in this paragraph, "Hazardous Material" shall mean petroleum or any petroleum product, asbestos, any substance known by the state in which the Land is located to cause-cancer and/or reproductive toxicity, and/or any substance, chemical or waste that is identified as hazardous, toxic or dangerous in any applicable federal, state or local law or regulation, This paragraph shall survive the termination of this Agreement. 17. LIABILITY AND INDEMNITY. (a) Lessee shall exonerate, hold harmless, indemnify, and defend Lessor and its directors, officers and employees from and against any and all suits, actions, judgments, legal or administrative proceedings, arbitrations, claims, demands, causes of action, damages, liabilities, interest, attorneys' fees, fines, penalties, losses, costs and expenses of whatsoever kind or nature (collectively, "Claims") arising out of or resulting from: 1) operations or performance under this Agreement by Lessee or its officers, directors, employees, contractors, subcontractors, lenders or agents, including, without limitation, the use, occupancy or enjoyment of the Premises by Lessee or any work, activity or other things allowed or suffered by Lessee or Lessee's directors, officer, employees, contractors, subcontractors, lenders or agents, invitees or lenders; or 2) any injury to or the death of any person or -any damage to property, if such injury, death or damage arises out of or is attributable to or results from the acts or omissions of Lessee or its directors, officers, employees, contractors, subcontractors, lenders or agents, including, without limitation, the use, occupancy or enjoyment of the Premises by Lessee or any work, activity or other things allowed or suffered by Lessee or Lessee's directors, officers, employees, contractors, subcontractors, lenders or Agents on the Premises, Neither the expiration or earlier termination of this Agreement nor completion of the acts to be performed under this Agreement shall release Lessee from its obligation to indemnify, as to any Claim, so long as the event upon which the Claim is predicated shall have occurred prior to the effective date of any such expiration or earlier termination or completion and arose out of or was in any way connected with performance or operations under this Agreement by Lessee, its directors, officers, employees, contractors, subcontractors, lenders or agents or anyone of them, 18. MISCELLANEOUS. (a) This Agreement constitutes the entire agreement and understanding between the parties, and supersedes all offers, negotiations and other agreements concerning the subject matter contained herein. Any amendments to this Agreement must be in writing and executed by both parties. (b) If any provision of this Agreement is invalid or unenforceable with respect to any party, the remainder of this Agreement or the application of such provision to persons other than those as to whom it is held invalid or unenforceable, shall not be ~ffected and each provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 7 ~-_._-~-- -- ....-- -- (c) All of the terms and conditions of this Agreement shall be binding on and inure to the benefit of the successors and permitted assignees of the respective parties, (d) Any notice or demand required to be given herein shall be made by certified or registered mail, return receipt requested, or reliable overnight courier to the address of the respective parties set forth below. LESSOR: LESSEE: City Manager Pacific Bell Wireless, LLC City of Arroyo Grande 6100 Atlantic Boulevard P. O. Box 550 MailCode GAN02 214 East Branch Street Norcross, GA 30071 Arroyo Grande, CA 93421 Attn: Network Real Estate Administration With Copy to: Pacific Bell Wireless, LLC 3345 Michelson Drive, Suite 100 Irvine, CA 92612 Attn: Legal Department Lessor or Lessee may from time to time designate any other address for this purpose by written notice to the other party. All notices hereunder shall be deemed received upon actual receipt. (e) This Agreement shall be governed by the laws of the State of California, (f) Upon request either party may require that a Memorandum of Lease be recorded confirming the (i) Lease commencement, (ii) expiration date of the Term, and (iii) the duration of any Renewal Terms. (g) Lessee, at its sole cost, may obtain title insurance on its interest in the Land, Lessor shall cooperate by executing documentation required by the title insurance company. (h) In any case where the approval or consent of one party hereto is required, requested or otherwise to be given under this Agreement, such party shall not unreasonably delay or withhold its approval or consent. (i) All Riders and Exhibits annexed hereto form material parts of this Agreement. 8 U} This Agreement may be executed in duplicate counterparts, each of which shall be deemed as original. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. LESSOR: LESSEE: CITY OF ARROYO GRANDE, PACIFIC BELL WIRELESS, LLC a Nevada limited liability company By: GSM Facilities, LLC, its sole member By: CINGULAR WIRELESS, LLC ATTEST: its agent KE~EMt)jMM~ By: ~?JN,~..I HARLE RANEK Director of Administrative Services! Regional Director, Deputy City Clerk Network Deployment APPROVED AS TO CONTENT: ATTEST WITNESS: ~~. STEVEN ADAMS, City Manager ,/,/" t Date: APPROVED AS TO FORM: 9 --.- a EXHIBIT A LEGAL DESCRIPTION OF LESSOR'S PROPERTY (LAND) Lessor's Property (Land) of which Premises are a part is legally described as follows: APN: 007-611-016 All of that certain real property located in the County of San Luis Obispo, State of California, being more particularly described as follows: THAT PORTION OF LOT 91 OF THE MAP OF THE RANCHOS CORRAL DE PIEDRA PISMO AND BOLSA DE CHEMISAL, IN THE CITY OF ARROYO GRANDE, COUNTY OF SAN LUIS OBISPO, STATE OF CAUFORNIA, AS PER MAP FILED IN BOOK A, PAGE 65 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST SOUTHERLY CORNER OF THE LAND DESCRIBED IN THE DEED TO AMASA W, DIXSON RECORDED IN BOOK 15, PAGE 302 OF DEEDS RECORDS OF SAID COUNTY MARKED BY A POST SET BY A F, PARSONS IN FEBRUARY 1892, PRESENTlY MARKED BY AN 1 ' 1/4 INCH DIAMETER PIPE TAGGED RCE 6923 AS SHOWN ON THE MAP FILED IN BOOK 8 PAGE 120 OF RECORD OF SURVEYS IN SAID COUNTY RECORDERS OFFICE, ' THENCE NORTH 540 EAST 664,00 FEET TO A POINT, FROM WHICH THE MOST EASTERLY CORNER OF SAID LAND OF DIXSON BEARS NORTH 540 EAST 537.30 FEET, MORE OR LESS MARKED BY A POST ESTABUSHED BY A,F, PARSONS, IN FEBRUARY, 1892, PRESENTLY MARKED AN OLD FENCE CORNER, SAID POINT BEING THE TRUE POINT OF BEGINNING, THENCE AT RIGHT ANGLES SOUTH 360 EAST 240.00 FEET TO A POINT. THENCE AT RIGHT ANGLES NORTH 540 EAST 272.00 FEET TO A POINT, THENCE AT RIGHT ANGLES NORTH 360 WEST 240.00 FEET TO A POINT, THENCE SOUTH 540 EAST 272.00 FEET TO THE TRUE POINT OF BEGINNING, APN: 007-611-016 PJ\P.CEt. /.!: 1\n eQsclt\C;'l~. over ~h.Jt portlClI\ of r.ol cJ) Qf the Inap of the !tilnchos Cor de Picd%:"lI, PisGlo .:\n(1 ~ols;:l de Chl:mis:\1, in t:.he City of A.rroyo Crandcl Count.y o! Siln l.uis obispo, St..Jtc of C"J iro:-ni". as per m.C1p filed in nook 1\, Page 65 of /'\03pS in the Of.fice of t.he County Recorder of said County. for pu~lic utilit.y purposes s~ccificlllly including wat.er tra~ mission lir.es :1nd "cc~s!: ro.:',,\:,;, to',}cthC'C ",it.h al.l.necess~ry appurte- nances t.heceto both ~~ove ~nd below qroun~ levcl. iRcludin~ the right to impeove. repc1 i r ~nc: 11\:\ in ta in S.J icJ ro~ch.ilY '<1nd wa t.er transmi.ssion J. Oe9inninCJ a~ .lIn ."\n') 1(: point. in the ~OUC.hi.~1-1y right of .."ay line of . branch Ni 11 Ro~c1 ...\~corc1.in9 t:o t.ht, dC't:'.1 t.o the Coun~y of S,1:\ I.uis Obl.S fro::! A. H. Oi);501"1 recorded in Douk RU u:' lJacc1s ;)t Page 405 in. said County Recorder':> O!fic.:, ,.,hich .lnqle pt'int is on the Northeasterly line of the lan~ d~scrih~d in the deed to ^m~Sll w. Dixsbn recordQ~ in DOO)( 15, P:1Yc 302 of Dt!L!(ls. lt~ord!O of :;.,id County. ~nd said angl,: I r~oi.nt helM} oppos i.t(: t.h"t poi nt nC'ttc,1 .IS -:>tation. 40-22" (sic) .."hJ..ch_ , on the Northerly :dtJc (,f :>llicJ ro:.c1. :.lso fectI.. :;aid anc:r~e point an J.. J. c1ian,,~t.er pipa t."~J~c..c1 I,:; 37'>('. ltC'.,,!":. flc'rth 12- 4')' 49".~~St. 26.26 feet tJist.ant.; . ,. ... ~---_.._._-_.-._- --- EXHIBIT A LEGAL DESCRIPTION OF LESSOR'S PROPERTY (LAND) "... Then~e along' said ~or~hc~st~rly line of the l~nd of Dixson South 36- . 5B~ .ast 31.00 fee~ to a pOlnt: Thence leaving said line North 26. 2U' 04" East 3D.8~.feet to a point on the. Southerly. r.i~ht of ",ay lin.e of snld Drench t~i1.1 Road from wh.ie the p03.nt of.be91nn~n9 becsrs Sou~h 940 58' 42" \~es-t 32..49 feet: 4i.star .Thence. a~o!1S said r~ght of way line South 840 S8' 42" ~st 3.... 49 f . t h P' f B . .' .... eet o t e oJ.nt 0 e91.nn1.og_ ,."':' . , PAnCEL c: .An eas~me~t fo: pU~lic utility purpose~ sr~c~fically including .~ater. transmlSSlon .llnes ;1\)c1 acccss rOiic1s t'.o9C!ther, with a.1J. necess~ry D:ppU~ tenances thereto both above nnd below yround level, :including the- x::ic to'improve. rep"ir :\I1d JII.:Iint.:lio s~ic1 rOl.lcl....c")y and wAter .trdn:smissi.on - , lines 10 feet wide over that portion of Lot 91 bf the map of parts 01 the Ranchos Corr~l de Piedra, Pismo and Bolsa de chernisal. in the Cit of Arroyo G~ande, County of S~n Luis Obispo, State of California, as per map filed in. Dook h, Page 65 of ~ppSt in the Office of. the Count~ Recorder of slIid County. described as follows: .. . SQginning at: the: most Southerly corner of Parcel V.1\. described in tt d~ed to yernon L. rr~de~ick and wife rcco~ded in Book 1943, Page 993 of official Records, in sa~d county "~coTdcr's Office, bein~ recited as stake L. No.' 1. therein: . - Thence a10n9 the Southwesterly line of' said Parcel V.1\.. North 340 13 He~t 1496.48 feet, more or less, to the TRUE POINT OF aSGINNING, fro I which th~ mo~~ fiouthcrly corn~r Qf thc. l~nd d~sc;ibed i~ th~' deed to ,.masa H. Di~son r~co.dc:d in Dook IS, Pac:!c )02 of. Deed's, records of. s: County be~rs North 34.11)' West 700.00 feet dist~nt: marked by a post . establi$hp.d ~)y ,"\. F. P.3rSons in l'cbruary, 1892, presently r..~~\'~:.'! by : 1 1/4 inch di>lRlctcr ?ipc tl\9CJCt\ (,CF: (',92) as shown on the map ..filed i: Dook 8, P~9~ ).20~or ~ccord~ of Survey in hoid County Recbrd.r'~ Offi. Thence Nor~h )40.13' West 700.00 focct to s~io mas~ Southerly corner t:.he l"nd 0 f D b:s()I1: Thencc r~orth 5,\0 I~..st 61i4.00 fcct: to iI !)()int: fronl which the most Eas corner of s<\ic1 l.3nd of nixson b~;.lrs Nor~h 540 East 537.30 feet, DorO! less, In.3rkcd by " post C:$tO\blishc:c1 ~y 1\.. 1-'. ['~rsons in February, '189 presently m~rked by nn old fence corner: ... Thence at ri!lht c1l191~s South .36. It>l~l; 10.00 feet to C!. point: 'l'hence at ri9ht .:Ins/Ie:> South 54. We$t G54.) 1 fect to a line which is p~n] llel wi:h &IOU (li~::;ant 10. DO feet NorthcHJstct'"ly from ~aid South- ~~sterly line or P&lrcul v.^.: Thence alor:q s"id p""r.'l\cl line ~;outh )40 13' F.ast 6'JO:31 feet to "- point frOln ,.:hich the "cu,,: Point ()f nc~inll\nC! bears ~outh 550 47' ~-Ie! 10.00 feet dist~hi: "hcnce South 5~. '17' \.tc~t 10.00 f.eet to the True Poi.nt of Besinninci. . EXHIBIT A LEGAL DeSCRIPTION OF LESSOR'S PROPERTY (LAND) PJ\RCE:L D: , ~n ease~ent for p~blic utili~y purposes 5peeiflca~ly inciudLn~WAter 'transmission 1ines and access. roads. together with ~ll necessary appc tenances thereto both ~bove and below gro4nd level. including the rig to i~prove, repair. and maintain $aid roadway and wate~ transmission lines over that portion of Lot 91 of tho map of the Ranchos Corral d~ Piedra, Pisl1'Io and 1101sn de Che:misal. ill t.he City o~ Arroyo Grande, Cc -of San Luis Obispo, State of Cali!o'rnia. ~s per map fi~d. in Book A Pa9~ 65 of Maps in the Office of the County necorder 0 ~aid county. inc1uded wi.t.hin ZI $trip of lond. 2S feet wi.de lyi.na :12.50', feet on ea~1": side of ~t)e follo'"i"9 describoc1 centerlino: ~ '. ' ." . . Be~innin9 Dt the l1'Iost Southerly ~orn~~ of the land described in the deed to AmaSQ.W., Dixson recorded in nook, lS.Page 3~2 of Doeds, reeo: of said County, marked by e po~t.set by ^. F. Parsons in Fe~ruary. ~E ,presently marked by an 1 1/4 inch diameter pipe, tagged RCE 6923 as -sho~n on the map filed in nook a. ~bgc 120 of Record~ o~ Survey in s~ County necorder's Office: Thence No=~h 54- East 478.52 Et'at to AI poi'nt. from which the most Easterly ~orner of said land of Pixson bears North 540 East 722.7e fe more or less, marked by ~ post established by A. F. Parsons in Februz 1B92. prQsently marked by an DIu fence:: <:orncr, said point being the TRUE POINT D~ DEGINNIN~: ,~. Thence South 44- 01 ' 00" Hest. 77.44 f C!I! t:: to i\ poi n.t:" . ':I'hence continuing Sou~hwcsterly along a "'t:ang.cnt' curve concavE: E~st:er: with a radiu:$ of. 70.;.00 feet. thro\l9h a c~nt:riJl ~n91~ 'of 87~ JG.' 03'~ ~: arc distancc.of 10'1.02 feC!t to /) point: Thence South 4)- )"4 ; 55" East 44:67 teet ~o a po~nt: Thence continuing $Quthcastcrly atony n tnngcnt curve concave No~the. with a radius of 150.uo.rQC~ ~hrou9h /) central ang1e of 1110 39' 51- an arc: dis~~nGo of 3013.0:>. E~ct. to 01 poinl:~ . '1"nencc: NO!:"th la- .,5' OS. &~St 95.33 feet to a poin~ on ~he Southwest line of P~rcel ~ ~crQin ~cscripcd. '1'l1c sic1c:lincs of this (.';;\SClncnt. ~hall be ext.ended or shot'tened as ,nee ~;OJ.ry to tcrr.ain<:tc l'Iortt-,..,c:stcrly at the Southeast'erl)' line of .sDid 1a of Dixson and Southcas~crly at thc SnuthwC!$t:crly line of Parcel A herein described. ----------- EXHIBIT A LEGAL DESCRIPTION OF LESSOR'S PROPERTY (LAND) PARCEL E: ... An .easement fo~ pUblic ucility purpo$es specifically i~cludinq water ,transmission lines. an& ~cc~ss ro~d~, together with all~ecessary appu tenences ~hereto both above and below ground level, inc:tading the ri~ to ~mprove, repair and maintain said roadway and water transmission lines over tha~ portion of L~t '1 of the ~4p oF. the Ranchos co~ral de Piedra, Pismo and Bolsa:. de Chemisal, in the City of Arroyo Grande, County of San Luis Obispo, State af California, as per map filed in Book A, Page 650f.Maps in the Office of the County Recorder of said> County, included within a strip of land 20 feet wide lyinq lU.OO.feet on e~ch side of the fcl~owin9 d~scribed centerline: . - Beginning at the most Southerly corner of. the land described in the deed to Amasa W. Dixson recorded in Book 15, Page 302 of Deeds, recorc of ~aid County marked by a post set brA. F. Parsons in rebruary, 1892 , presently ma.rked by a 1 1./4 inch dimtlot.er iron pipe ta99ad RCE 6923 as sho~n on the map filed in Book 8, Page l~O of Records of Survey in said County Recorder's Offi.ce', Thence North SAo East 478.52 ",..;. feet to a point, called herein, for convenience only, POXNT A; Thence continuing North 540 East 7~2.78 feet, more or less. to the' most Ea.sterly corner of. ,said land of Dixson 1IIi1rk~d by a post set by A. F., Parsons in February, 18~2, p~csently mark~d by an old fence corner; , Thence North 36051'59" ~'lest J99.39 feet,. more or less. to the TRUE POINT OF BEGINNING from. ~/hictl an /lnglc: point in the Southerly ,right. of way line of Branch'Mill Road desct'ibcd in the deed to the County of San Luis Obispo from A. W, D~xson recorded in Dook 88 of Deeds. at Page '485, records of said County ~ears North 360SI'S8~ West 19.62 teet distant, which angle point .i~ On thc: Northeasterly line of the land . described in th~ deed to ^ma~a W. Dixson.recorded in Book 15, Page 302 of Deeds,Records o~ said coun~y, ~nd s~id angle point is opposite.~hat point noted as "station 40-22~ (sic) ~hich is on the NOI:'the;rly si(le o~ said road, also from said angle point an 1 inch diameter pipe tagged LS 3756 bears North 12045' 49" EilSt 2G. '-6 feet. distant, Thence crossing said land of Dixson 410n9 said centerline South 26- 28 04~ Wes~ 6.40 feet to'a pointi 'I'henc~ co.ntinuiug South~cstcrly alone; ~ tangent curve conca.ve North- westerly with a r~dius of 250.00 feet through a central angle of 200 .20' ))" a~ arc distance of 08.76 feet to a point~ . Thence S'out..h 46" 4S' 37" ~"~st 46.83 ff;ct' to a point; 'l'hence South J!) 0 35' 30" West 87.75 feet t~ a point;. 1'lu~lIc:e Sou.th 1\ 2 a 'I}' )'j" ~~c.st' 64.91 fc.c.t tQ i\ point; EXHIBIT B DESCRIPTION OF PREMISES The Premises consist of those areas described/shown below and where Lessee's communications antennae, equipment, cables and utilities occupy Lessor's Property. The Premises and the associated utility connections and access, including easements, ingress, egress, dimensions, and locations as described/shown below, are approximate only and may be adjusted or changed by Lessee at the time of construction to reasonably accommodate sound engineering criteria and the physical features of Lessor's Property. See Site Plan dated 12/16/03 VY -465-01 A final drawing, Site Plan, or copy of a property survey substantially depicting the above will replace this Exhibit "B" when initialed by Lessor 1. This Exhibit may be replaced by a land surveyor Site Plan of the Premises once it is received by Lessee. 2. Setback of the Premises from the Lessor's boundaries shall be the distance required by the applicable governmental authorities. 3. Width of access road shall be the width required by the applicable governmental authorities, including police and fire departments. 4. The type, number and mounting positions and locations of antennas and transmission lines are illustrative only. Actual types, numbers, mounting positions may vary from what is shown above. PACIFIC BELL WIRELESS, LLC ATTACHMENT 2 Post Office Box 7609 Atlanta, Georgia 30309 _-._....~-~ I . November 22, 2004 o ~ r; - , 2:~ -.' ! ,-: 1 ' 1 ~ i: ..; J City of Arroyo Grande Attn: City Manager 214 East Branch St., P,O. Box 550 Arroyo Grande, CA 93421 RE: Site: VY 465-0 I, located on Branch Mill Road and commonly known as Reservoir 4 Site Lease between City of Arroyo Grande, as landlord and Pacific Bell Wireless, LLC (as tenant or successor tenant, "Tenant") (as amended, the "Lease") Gentlemen and Ladies: Cingular Wireless ("Cingular") and T-Mobile USA, Inc, ("T.Mobile"), through their affiliates, jointly own and operate Tenant. As you know, Tenant's Lease with you permits the operation and installation of wireless telecommunication equipment. This letter is to notify you that Cingular and T-Mobile have agreed (subject to certain regulatory approvals) to the sale of all ofCingular's ownership interests in Tenant to T-Mobile (the "Sale"). The Sale is expected to close in the fourth quarter of 2004 or early in 2005 and will result in Tenant being controlled solely by T .Mobile, This is simply a sale ofCingular's interest in the Tenant; Tenant will continue to be the tenant under the Lease after the Sale closes (although it may later change its name), Also, both Tenant's permitted use of the site for telecommunications and/or wireless and/or related services, and Tenant's net worth, will remain the same as a result of the closing of this Sale. We would ask that you please confum your consent to the Sale as it relates to the Lease, by signing this letter where indicated below and return it in the enclosed self.addressed envelope. Once the Sale closes, we will notify you of any change in notice address and other contact infonnation, If we do not hear from you to the contrary, we will assume that the foregoing is acceptable. If you have any questions, please call 404-881-4056 Very truly yours, ~~~\~~ Bnan Wl1son, 1)uector otTower Programs for Cingular Wireless, LLC cc: T-Mobile USA, Inc, Acknowledged, Consented and Agreed: City of Arroyo Grande By: Authorized Signatory Date: --.- PACIFIC BELL WIRELESS, LLC Post Office Box 7609 Atlanta, Georgia 30309 December 6, 2004 City of Arroyo Grande Attn: Timothy J, Carmel, City Attorney P,O, Box 550 Arroyo Grande, CA 93421 Via E-Mail to kwetmore@arroyogrande.org RE: Site VY -465-01 (the "Site") Communications Site Lease Agreement by and between City of Arroyo Grande, a municipal corporation formed under the laws of the State of California, (as "Lessor") and Pacific Bell Wireless, LLC (as "Lessee") (the "Lease") Mr. Carmel: Cingular Wireless (together with its affiliates and subsidiaries, "Cingular"), and T .Mobile USA, Inc, (together with its affiliates and subsidiaries, "T -Mobile"), jointly own and operate Lessee. As you know, Lessee's Lease with you permits the operation and installation of wireless telecommunication equipment. This letter is to notify you that Cingular and T -Mobile have agreed (subject to certain regulatory approvals) to the sale of all of Cingular's ownership interests in Lessee to T-Mobile (this sale, together with certain related steps to achieve such sale, is referred to in this letter as the "Transaction"). The Transaction is expected to close in the fourth quarter of 2004 or early in 2005 and will result in Lessee being controlled solely by T -Mobile, This is simply a sale of Cingular' s interest in the Lessee; Lessee will continue to be the lessee under the Lease after the Transaction closes (although it may later change its name), Also, both Lessee's permitted use of the Site for telecommunications and/or wireless and/or related services, and Lessee's net worth, will remain the same as a result of the closing of this Transaction, We would ask that you please confirm your consent to the Transaction by signing this letter where indicated below and returning it to me via overnight courier, Once the Transaction closes, we will notify you of any change in notice address and other contact information. If we do not hear from you to the contrary, we will assume that the foregoing is acceptable, If you have any questions, please call me at 949-400-5245, or contact me via e-mail at pferraro@infranext,com. Very truly yours, Peter J, Ferraro, Infranext, Inc, Agent for Cingular Wireless ATL01I11706162vl SITE ID Page I of2 Acknowledged, Consented and Agreed: Acknowledged, Consented and Agreed: LESSOR: LESSEE: City of Arroyo Grande Pacific Bell Wireless, LLC By: By: Print Name: Print Name: Title: Title: Date: Date: - 2- ATL01/11706162vl PACIFIC BELL WIRELESS, LLC Post Office Box 7609 Atlanta, Georgia 30309 December 30, 2004 City of Arroyo Grande Attn: City Manager 214 East Branch St., P.O. Box 550 Arroyo Grande, CA 93421 RE: Site: VY -465-01, located on Branch Mill Road and commonly known as Reservoir 4 Site Lease between City of Arroyo Grande, as landlord and Pacific Bell Wireless, LLC (as tenant or successor tenant, "Tenant") (as amended, the "Lease") Gentlemen and Ladies: As a follow up to Tenant's prior letter to you dated November 22,2004 notifying you of the sale of Cingular's indirect interest in Tenant under the Lease (the "Original Letter"), we have received your request for additional information relating to the Sale (as defined inthe Original Letter). As described in the Original Letter, Cingular Wireless, LLC ("Cingular") and T -Mobile USA, Inc. ("T-Mobile"), through their affiliates, jointly own and operate Tenant. As described on the enclosed Pre-Closing Organizational Structure Chart, Cingular and T -Mobile each presently own fifty percent (50%) ofGSM Facilities, LLC ("GSM") and that GSM presently owns one hundred percent (100%) of Tenant. In connection with the Sale, Cingular will be selling (though a series of steps) its fifty percent (50%) interest in GSM to T-Mobile, with the result that T-Mobile will own and control one hundred percent (100%) of Ten ant, as set forth on the enclosed Post-Closing Organizational Structure Chart. Please note that Cingular and T -Mobile have received the requisite regulatory approvals for the Sale and that the Sale is expected to close in early 2005. As set forth in the Original Letter, this is simply a change in control ofthe ownership of Ten ant. Tenant will continue to be the tenant under the Lease after the Sale closes and will continue to remain liable for all of the obligations of Tenant under the Lease; provided, however, that after the Sale closes Tenant will cease to do business as "Cingular Wireless". Tenant will continue to use the Site in the same manner as prior to the Sale and will continue to hold all licenses, permits and approvals necessary to operate the Site, In addition, as set forth in the Original Letter, Tenant's net worth will remain the same as a result ofthe closing of the Sale, ----- ___...__m_ - .~~.- .----- December 30, 2004 Site: VY-465-0l Page 2 We again request that you please confirm your consent to the Sale as it relates to the Lease by signing this letter where indicated below. Once the Sale closes, we will notify you of any change in notice address and other contact information. If you have any questions, please call 404-881.4056 Very truly yours, '~~~~I\~ Brian Wilson, Director of Tower Programs for Cingular Wireless, LLC cc: T-Mobile USA, Inc. Acknowledged, Consented and Agreed: City of Arroyo Grande By: Authorized Signatory Date: ,....... ~ ~ ~ ~~ ~< ~D .~ ~~ ~ ~ 0 o;J ':f!. b ~t 0 ..... ~~ 'rf).~ o~ a , ~ ~ N ~ Z 0 ~ ~~ tS~ ~e ~~ ,9:- ~ t ~ O;;J 0 ~~ "if. <:> <:> U .... ~~ rn~ S~ U I ~ 0 ~ 8.). MEMORANDUM TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER ~ SUBJECT: CONSIDERATION OF AN AWARD OF CONTRACT TO LEE WILSON ELECTRIC COMPANY FOR CONSTRUCTION OF THE CREEKSIDE PATH, PHASE III LIGHTING PROJECT, PW 2004-03 DATE: JANUARY 11, 2005 RECOMMENDATION: It is recommended the City Council: 1, award a contract for the construction of the Creekside Path, Phase III Lighting Project, PW 2004-03 to Lee Wilson Electric Company in the amount of $20,676; 2, authorize the City Manager to approve change orders not to exceed the contingency of $2,068 for use only if needed for unanticipated costs during the construction phase of the project (total construction costs = $20,676 + $2,068 = $22,744); 3, transfer $10,000 from the Downtown Parking Fund and $10,000 from the General Fund to the project account; and 4. direct staff to proceed with fund raising efforts for Phase II of the "Let There Be Light" program seeking $3,500 per light to install historic decorative lights along East Branch Street and committing to budget $500 per light in City funds for installation, FUNDING: The amended FY 2004/05 Capital Improvement Program budget currently contains $28,215 for the Creekside Path, Phase III Lighting Project. The total project cost is estimated at $47,500, including the light assemblies, construction and contract administration costs, An additional appropriation of $1 0,000 from the Downtown Parking Fund and $10,000 from the General Fund is requested to provide for the total project costs, The Downtown Parking Fund appropriation has been approved by the Downtown Parking Board, The General Fund $10,000 will be transferred from excess funds available in the Pavement Management Capital Improvement Project. CONSIDERATION OF AN AWARD OF CONTRACT TO LEE WILSON ELECTRIC COMPANY FOR CONSTRUCTION OF THE CREEKSIDE PATH, PHASE III LIGHTING PROJECT, PW 2004-03 JANUARY 11, 2005 PAGE 2 DISCUSSION: On April 27, 2004, the Council approved the purchase of the Lumec light assemblies from Prudential Lighting (Consolidated Electrical Distributors) for the Creekside Path, Phase III Lighting Project. Staff contracted with Thoma Electric to determine the circuitry requirements for all the existing Olohan Alley light assemblies, and develop design criteria for the development of construction plans and specifications, On September 28, 2004, the City Council approved the plans and specifications for the Creeksid~ Path, Phase III Lighting Project and authorized the solicitation of construction bids, On December 21, 2004, four (4) bids were publicly opened for the project. The lowest responsible bidder, Lee Wilson Electric Company, submitted a bid of $20,676, The bid has been verified and found to be in compliance with the contract specifications. The street light assemblies throughout the City are owned and maintained by PG&E and the services are billed to the City on a flat rate. PG&E installs standard light assemblies and will not support proprietary light fixtures as a pa,rt of their system, The proprietary light assemblies on the Creekside Phase III Lighting Project will be installed on a separate meter and will be completely owned and maintained by the City, The project scope of work involves the installation of twelve street light assemblies along Olohan Alley as follows: Schedule A - Creekside Path Phase III Project (six assemblies) The lighting element of the Phase III project was a bid alternate that was not included in the original construction project due to funding constraints, However, conduits were placed and the electrical circuits and metering were sized to enable the lighting assembly installations at a future date. The lighting contract scope of work completes the installation through the placement of concrete foundations, installation of the light assemblies, and placement of electrical conductors, Schedule B - Gazebo Area (six assemblies) This part of the project involves retrofitting the six existing light standards near the Gazebo with new bases, banner arms and light fixtures, The scope of work includes the placement of conduit and conductors to be connected to an existing electrical meter. Due to the lengthy lead-time for fabrication of the light fixtures, the Council previously approved the purchase of the Lumec light assemblies from Prudential Lighting (Consolidated Electrical Distributors). Delivery is anticipated in late January 2005, Street light assemblies throughout the City are owned and maintained by PG&E and the services are billed to the City on a flat rate, PG&E installs standard light assemblies but will not support proprietary light fixtures as a part of their system, The proprietary light assemblies on the Creekside Phase III Lighting Project will be installed on a separate meter and will be owned and maintained by the City, CONSIDERATION OF AN AWARD OF CONTRACT TO LEE WILSON ELECTRIC COMPANY FOR CONSTRUCTION OF THE CREEKSIDE PATH, PHASE III LIGHTING PROJECT, PW 2004-03 JANUARY 11, 2005 PAGE 3 The contract time for this project is specified at 30 calendar days, Work is expected to begin in late January 2005 and be completed by March 2005, The majority of current funding available is from donations received from individuals and organizations sponsoring lights, In addition, the City allocated excess funding from the Creekside Path III project to pay for the installation costs. As discussed in the September 28, 2004 staff report when the City Council approved solicitation of bids, installation costs turned out to be significantly more than original projections, Therefore, additional City funding is necessary to complete this phase of the project. To proceed with the next phase of the project, which includes beginning installation of lights on East Branch Street, staff is estimating a total cost of $4,000 per light. It is recommended the City pursue private donations of $3,500 per light and the City contribute the remaining $500 towards installation, which is consistent with the original projection for City participation. The next phase includes the first twelve lights on East Branch Street, which would result in a cost of $6,000 to the City for FY 2005-06, ALTERNATIVES: The following alternatives are provided for the Council's consideration: . Approve staff's recommendations; . Do not approve staff's recommendations; . Modify as appropriate and approve staff's recommendations; or . Provide direction to staff, Attachment: 1, Bid Opening Log Sheet S:\PUBLlC WORKS ENGINEERING SHARED ITEMS\Capital Projects\2004\Creekside Lighting\Council\Consideration of Award\Council Memo - Award.doc -,-_._"._~~.._---_._- -'-.--- ~---- " A TT ACHMENT 1 BID OPENING LOG SHEET CITY OF ARROYO GRANDE BID OPENING: December 21, 2004 Creekside Path Lighting Project Engineer's Estimate $,45,000 . . BIDDER'S NAME. CITY SCHEDULE A SCHEDULE B TOTAL Newton Construction $16,200.00 $13,232.00 $29,432.00 San Luis Obispo, CA Lee Wilson Electric $7,500.00 $13,176.00 $20,676.00 Arroyo Grande, CA Electricraft Inc. $12,840.00 $ 9,291.22 $22,131.22 San Luis Obispo, CA JPL Electric $21,498.00 $22,372.00 $43,870.00 Ventura, CA nistrative Services/City Clerk c: Director of Public Works City Manager --- .....- 8.k. MEMORANDUM TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER ~ SUBJECT: CONSIDERATION TO APPROVE AN INTERAGENCY AGREEMENT WITH THE SOUTH SAN LUIS OBISPO COUNTY SAN IT A TION DISTRICT FOR THE ADMINISTRATION OF THE WASTE DISCHARGE REQUIREMENTS IMPOSED BY THE REGIONAL WATER QUALITY CONTROL BOARD DATE: JANUARY 11, 2005 RECOMMENDATION: It is recommended the City Council: 1, approve the attached Agreement authorizjng the South San Luis Obispo County Sanitation District (District) to administer the development of a monitoring and reporting program, as well as to prepare the annual reports to the Regional Water Quality Control Board (RWQCB) on behalf of the City of Arroyo Grande; and, 2, authorize the City Manager to execute the agreement. FUNDING: The City's portion of the estimated $10,000 for administration of the RWQCB requirements by the District is proposed to be included, along with the other parent agencies estimated cost for the same service, in the District's current rate study, Therefore, there may be an impact to Arroyo Grande rates, but no direct impact to the City's budget. DISCUSSION: On September 10, 2004, the Regional Water Quality Control Board adopted waste discharge requirements for wastewater collection agencies tributary to the South San Luis Obispo County Sanitation District Wastewater Treatment Facility - Order No, R3- 2004-0062. The requirements regulate the collection systems of the parent agencies of the District, specifically the Cities of Arroyo Grande, Grover Beach, and the Oceano Community Services District. These requirements affect the manner by which the City operates and maintains the collection system regarding the reporting of information to the RWQCB, Historically, throughout the Central Coast Region, requirements pertaining to wastewater collection systems have been incorporated into waste discharge requirements (WDR) for the treatment facility to which those collection systems are tributary. The City previously prepared collection system reports to the RWQCB as part CITY COUNCIL CONSIDERATION OF AN INTERAGENCY AGREEMENT BETWEEN THE SOUTH SAN LUIS OBISPO COUNTY SANITATION DISTRICT AND ITS PARENT AGENCIES FOR THE ADMINISTRATION OF THE WASTE DISCHARGE REQUIREMENT IMPOSED BY THE REGIONAL WATER QUALITY CONTROL BOARD JANUARY 11, 2005 PAGE 2 of the District's WDR. However, in recognition of the different discharge specifications, monitoring requirements, arid responsible agencies involved in the tributary wastewater collection systems and the treatment facility, the RWaCB has chosen to separate the requirements into separate WDRs for each agency of the District. The District has prepared similar reports to the RWaCB and has agreed to assume the role of administering the development of a monitoring and reporting program, as well as preparing the annual report for each parent agency, However, the parent agencies will still be responsible for the overall compliance of the requirements defined in the WDRs, ALTERNATIVES: The following alternatives are presented for the Council's consideration: . Approve the attached agreement as written; . Do not approve the agreement; . Direct staff to modify the agreement; or . Provide further direction to staff, Attachment: 1. Agreement - --- INTERAGENCY AGREEMENT IN REGARDS TO COMPLIANCE WITH CALIFORNIA REGIONAL WATER QUALITY CONTROL BOARD WASTE DISCHARGE REQUIREMENTS ORDER R3-2004-0062 This Agreement reached this _ day of , 2005 between the SOUTH SAN LUIS OBISPO COUNTY SANITATION DISTRICT and the CITY OF ARROYO GRANDE, the CITY OF GROVER BEACH and the OCEANO COMMUNITY SERVICES DISTRICT. WHEREAS, the SOUTH SAN LUIS OBISPO COUNTY SANITATION DISTRICT ("District") service area encompasses the cities of Arroyo Grande and Grover Beach and the Oceano Community Services District ("Parent Agencies"); and, WHEREAS, the DISTRICT provides wastewater treatment services for the residents of these PARENT AGENCIES; and, WHEREAS, the REGIONAL WATER QUALITY CONTROL BOARD ("RWQCB") has recently adopted waste discharge requirements standards for the PARENT AGENCIES; and, WHEREAS, amongst the provisions of those waste discharge requirements is the development of a monitoring and reporting program; and, WHEREAS, as a part of the monitoring and reporting program, there is a requirement for an annual report: and, WHEREAS, the DISTRICT has experience and expertise in regards to preparation of monitoring and reporting programs and annual reporting; and, WHEREAS, it is recognized that there would be cost savings due to the DISTRICT'S experience and expertise in the development of these monitoring and reporting programs and it is further recognized that there would be a cost . savings achieved were the DISTRICT to prepare a monitoring and reporting program and prepare the annual reports for the PARENT AGENCIES, NOW, THEREFORE, it is agreed by and between the parties hereto in regards to compliance with Regional Water Quality Control Board Order R3-2004-0062 as follows: 1. The DISTRICT will prepare a monitoring and reporting program for each PARENT AGENCY, 2. The DISTRICT will prepare the annual reporting for each PARENT AGENCY, 3, Each PARENT AGENCY agrees to provide by January of each year, the information required for the annual reporting. 1 4. Each PARENT AGENCY agrees that it is responsible for all other compliance requirements required as a part of the waste discharge requirement Order R3-2004-0062 attached hereto and incorporated by reference. S, Each PARENT AGENCY guarantees and warrants the information provided to the DISTRICT for its respective annual report. 6, Each PARENT AGENCY is responsible for the District's actual cost in preparing the documents and annual reports described in this Agreement. It is anticipated that the District will be reimbursed through a rate increase which will be considered during fiscal year 04/05. In the event that the rate increase is approved, each PARENT AGENCY shall be responsible for its pro rata cost for the preparation of the documents and annual reports described in this Agreement. IN WITNESS WHEREOF, DISTRICT and each PARENT AGENCY have executed this Agreement the date first written above, CITY OF ARROYO GRANDE By: City Manager CITY OF GROVER BEACH By: City Manager OCEANO COMMUNITY SERVICES DISTRICT By: General Manager SOUTH SAN LUIS OBISPO COUNTY SANITATION DISTRICT By: JOHN L. WALLACE DISTRICT ADMINISTRATOR 2 8.1. MEMORANDUM TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER I/O SUBJECT: CONSIDERATION TO APPROVE A CONSULTANT SERVICES AGREEMENT WITH WOOD RODGERS, INC. TO PREPARE A PROJECT APPROVAL AND ENVIRONMENTAL DETERMINATION (PA&ED) FOR THE BRISCO ROAD-HALCYON ROADIROUTE 101 INTERCHANGE DATE: JANUARY 11, 2005 RECOMMENDATION: It is recommended the City Council: 1. approve a consultant services agreement ("agreement") with Wood Rodgers, Inc. to prepare a Project Approval and Environmental Determination (PA&ED) for the Brisco Road-Halcyon Road/Route 101 Interchange project in the amount of $370,925; 2. authorize the Mayor to execute the agreement; and, 3. appropriate $65,925 from the Transportation Facility Fund, FUNDING: The FY 2004-05 amended budget provides $305,000 for the completion of the PA&ED, including $165,000 of State Transportation Improvement Program (STIP) grant funds secured from the San Luis Obispo Council of Governments (SLOCOG) and $150,000 from the Transportation Facility Fund. An additional appropriation of $65,925 from the Transportation Facility Fund is needed to fund the total services being provided under the agreement. The FY 2004/05 projected year-end fund balance for the Transportation Facility Fund is $2,214,533. An appropriation of $65,925 will reduce the year-end fund balance to $2,148,608. DISCUSSION: On May 11, 2004, the City Council authorized the solicitation of bids for professional services to prepare a Project Approval and Environmental Determination (PA&ED) for the Brisco Road-Halcyon Road/Route 101 Interchange. Proposal packages were sent to eleven firms, The City received two proposals, which were presented to the City Council on September 28, 2004. At that meeting, the City Council did not approve a services agreement and directed staff to send out another Request for Proposal (RFP) in an effort to secure additional proposals. --~_..~----- CITY COUNCIL CONSIDERATION TO APPROVE A CONSULTANT SERVICES AGREEMENT WITH WOOD RODGERS, INC. TO PROVIDE PROJECT APPROVAL AND ENVIRONMENTAL DETERMINATION (PA&ED) FOR THE BRISCO ROAD- HALCYON ROAD/ROUTE 101 INTERCHANGE JANUARY 11, 2005 PAGE 2 The new RFP was distributed to seventeen firms and on December 6, 2004, the City received four proposals, The proposals were evaluated and Wood Rodgers, Inc, was selected as the most qualified firm to perform the work, Their proposal resulted in an increase of approximately $2,900 over the proposals presented to the Council in September 2004. The services to be provided include the complete coordination and management of work teams and subconsultants to develop detailed engineering evaluations of the design alternatives presented in the Project Study Report (PSR), Wood Rodgers, Inc, will also coordinate with Caltrans and obtain PA&ED approval. Wood Rodgers, Inc.'s scope of work includes . project initiation (e.g" preliminary research and establishing a project schedule); . project management (e,g" project development team meetings, public hearings and progress reporting); . mapping and right of way information; . alternatives analysis; . traffic forecasts/modeling; . engineering studies (e,g" geometric, right of way, structures, utility relocation and drainage plans, and cost estimates); . environmental document (e,g., environmental studies and reports, and CEQA and NEPA compliance documentation); and . project approval (e,g" draft and final project report), Once the PA&ED is complete and approved by Caltrans, the City will then be eligible to apply for State and Federal funding for the design and construction phases of the project. AL TERNA TIVES: The foJlowing alternatives are provided for the Council's consideration: . Approve a consultant services agreement with Wood Rodgers, Inc,; . Do not approve a consultant services agreement with Wood Rodgers, Inc, and direct staff to readvertise for new proposals; . Direct staff to discontinue the project; . Provide direction to staff, Attachment: 1. Sid Opening Log Sheet -- . REQUEST FOR PROPOSAL LOG SHEET CITY OF ARROYO GRANDE RFP DEADLINE: December 6, 2004; 5:00 p.m. Project Approval and Environmental Determination (PA&ED) for the Brisco Road-Halcyon Road/Route 101 Interchange SUBMITTED BY: TOTAL Stantec $606,012.00 Sacramento, CA Omni-means $385,491,00 Roseville, CA Nolte Associates Inc. $488,320,00 San Jose, CA Wood Rogers $370,925,00 Sacramento, CA .' V' (JUlpJutolLZ-- Kel~ ." ,... .. Director of Administrative Services/Deputy City Clerk c: Director of Public Works City Manager ----~.. - ~ 11.8. MEMORANDUM TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER IIf' SUBJECT: CONSIDERATION TO ACCEPT THE UPDATED CITY TRAFFIC MODEL DATE: JANUARY 11, 2005 RECOMMENDATION: It is recommended the City Council accept the City Traffic Model Update. FUNDING: The amended FY 2004-05 Capital Improvement Program budget includes $49,145 for the City's traffic monitoring program, of which $42,018 was budgeted for the traffic model update. DISCUSSION: At the end of 2003, the City approved a consultant services agreement to provide Citywide traffic monitoring and retainer services, Central to the Citywide Traffic Monitoring Program were the revisions and update of the computerized Citywide traffic model. The model is a planning tool to estimate current traffic flow patterns and also forecast future travel demands and traffic flow patterns within and through the City. In order to remain a useful tool in analyzing existing and future traffic conditions, the model requires periodic updating. This is the first update of the model since it was prepared for the update of the City's General Plan, The development of the updated traffic model, calibrated to 2003-04 (base year) conditions, will form the basis from which the future conditions model will be developed, This will be done in order to test alternative land use and/or circulation alternatives that will help assess the need, nature and timing of future circulation improvements within the City, The updated traffic model will also be utilized as a planning tool on a variety of traffic impact and circulation studies to assess land development proposals within the City, as well as update the City's Capital Improvements Program. The updated model included refining the existing and proposed future roadway data, inputting future land use data and calibrating the computer model to match existing traffic conditions, The updated model will also utilize a traffic modeling software package that will be consistent with the countywide regional traffic model being developed by the San Luis Obispo Council of Governments. ---~,._-- -..-- CITY COUNCIL CONSIDERATION TO ACCEPT THE UPDATED CITY TRAFFIC MODEL JANUARY 11, 2005 PAGE 2 The update of the model is complete and the computer output is being presented for Council review and acceptance. Omni Means, the City's traffic model and study consultant, will present a summary of the traffic model results and be available for City Council questions, The primary purpose of this item is to review the model in order to develop a better understanding of the base data that will be used in future traffic studies, ALTERNATIVES: The following alternatives are provided for the Council's consideration: . Accept the Traffic Model Update; . Direct staff to request changes to input in the Model; . Direct staff to request other changes to the Model; . Provide direction to staff. jep:S:\PUBLlC WORKS ENGINEERING SHARED ITEMS\Peterson\19 - Admin\Traffic Model Presentation CC 1.11.05.doc ---_.__..._~~..- ---'--~--'- 11.b. MEMORANDUM TO: CITY COUNCIUREDEVELOPMENT AGENCY BOARD OF DIRECTORS FROM: STEVEN ADAMS, CljfrNAGERlREDEVELOPMENT AGENCY EXECUTIVE DIRECTOR SUBJECT: CONSIDERATION OF RESOLUTION APPROVING FUNDING ASSISTANCE FOR THE FAMILY CARE NETWORK, INC. TRANSITIONAL AFFORDABLE HOUSING PROJECT DATE: JANUARY 11, 2005 RECOMMENDATION: It is recommended the Redevelopment Agency Board of Directors adopt the attached resolution approving $50,000 in Redevelopment Housing Assistance for The Family Care Network, Inc. foster care transitional housing project and the Affordable Housing Agreement. FUNDING: The assistance is proposed to be funded from the Redevelopment Agency Housing Set Aside Fund. The balance in this fund is currently $86,000. While the recommendation will significantly deplete this fund, the City will continue to have a balance of approximately $665,000 available for affordable housing assistance in the Affordable Housing In-Lieu Fee Fund. Monies committed to the Courtland-Grand senior affordable housing project have been deleted from these balance amounts. DISCUSSION: The Family Care Network, Inc. (FCNI) was established in 1987 as a family-based alternative to institutional care of children within the child welfare/juvenile justice system. Their mission is to "enhance the physical, mental and spiritual well-being of children, youth and families through family centered clinical and foster care treatment programs; affordable housing; and education and training; in partnership with the individuals, families, agencies and communities we serve." They are currently the largest private, nonprofit foster care, children's mental health and family services provider in San Luis Obispo and Santa Barbara counties, Since 1999, FCNI has been the sole Transitional Housing Placement Program (THPP) provider in San Luis Obispo and Santa Barbara counties. These services are designed to assist foster youth, ages 16 to 19, to successfully transition from the foster care system to independent living. FCNI is now also developing a Transitional Housing-Plus (TH-Plus) program, TH-Plus provides housing and limited transitional living services to CITY COUNCIL FUNDING ASSISTANCE FOR THE FAMILY CARE NETWORK, INC. TRANSITIONAL AFFORDABLE HOUSING PROJECT JANUARY 11, 2005 PAGE 3 community. In addition, from a cost-benefit standpoint regarding the City's efforts to meet its Regional Housing Needs Assessment (RHNA) requirements, the ability to obtain one moderate income and four very-low income restricted units for a $50,000 subsidy is an efficient utilization of the Redevelopment Agency's housing set aside funds. AL TERNA TIVES: The following alternatives are provided for the Redevelopment Agency Board of Directors' consideration: - Adopt resolution approving $50,000 in Redevelopment Housing Assistance for The Family Care Network, Inc. foster care transitional housing project and the Affordable Housing Agreement; - Modify the proposed Agreement with regard to financial assistance and adopt the resolution; - Make other modifications and adopt the resolution; - Do not adopt the resolution; - Provide direction to staff. Attachments: 1. Affordable Housing Agreement S:\CITY MANAGER\STEVE\Council Reports\Family Care Network Funding Assistance l,ll.05,doc ~-,~-- -~-,_.- CITY COUNCIL FUNDING ASSISTANCE FOR THE FAMILY CARE NETWORK, INC. TRANSITIONAL AFFORDABLE HOUSING PROJECT JANUARY 11, 2005 PAGE 2 former foster youth, ages 18 to 21. Youth approved by the County Interagency Placement Committee are placed in an apartment owned or rented by FCNI that has a Residential Assistant living in the facility with the youth. After the youth has demonstrated responsibility, they can be placed in an apartment by themselves or with another program participant. FCNI serves an important need in the community, The individuals served by the program have a high rate of placement failure and are likely to become homeless upon exiting the foster care system without proper and effective services. In addition to the normal challenges facing youth of this age in becoming independent, they rarely have family to assist and many have emotional and mental health needs. Studies indicate that less than 50% of youth aging out of foster care graduate from high school and nearly 60% of adults in federally funded homeless shelters are former foster youth, In San Luis Obispo County, less than 15% of youth aging out of foster care have completed high school. FCNI is in the process of expanding its THPP and TH-Plus programs by purchasing additional transitional housing. They have successfully negotiated the acquisition of an existing 5-unit apartment building at 201 S. Halcyon Road at a cost of $825,000, FCNI has obtained $348,000 in State EHAP funding and $200,000 in HUD HOME funds, They have requested an additional $50,000 from the City of Arroyo Grande, The remainder will be funded from a loan through the San Luis Obispo County Housing Trust Fund. Their current financial analysis indicates that without the City's participation, the project is financially feasible only if they assume a consistent 100% occupancy, which is probably not realistic. The $50,000 enables FCNI to assume occupancy of 80% at any given time. Four of the five units will qualify as very-low income and the unit occupied by the Residential Assistant will qualify as moderate-income, Each of the four very-low income units will house two participants. Initially, it is proposed to allow an existing elderly resident to remain in one of the very-low income units to minimize relocation costs. FCNI will agree to restrict the units at these income levels for a period of 55-years, Attached is a copy of the Affordable Housing Agreement. The Agreement is structured to establish the $50,000 as a loan for 55 years. When the units are maintained as affordable for the 55-year period, the loan will be considered paid in full. As is the case in most of these projects, the primary risk to the City is in the case of foreclosure, However, given the amount of financial assistance the project is receiving, staff believes the risk of foreclosure is minimal. The resolution authorizes the Executive Director to approve and execute the Promissory Note and Trust Deed, Staff respectfully recommends the Redevelopment Agency Board of Directors approve the $50,000 in financial assistance to the project. As described above, the funding will be an investment in a project and program that will serve a significant unmet need in the S:\CITY MANAGER\STEVE\Council Reports\Family Care Network Funding Assistance 1.l1.05.doc --~- '--"--'---~-.~._-'-~ -----_....----_._-~-- ------...- RESOLUTION NO. RDA 05-_ A RESOLUTION OF THE ARROYO GRANDE REDEVELOPMENT AGENCY APPROVING AN AFFORDABLE HOUSING AGREEMENT BETWEEN THE AGENCY AND FAMILY CARE NETWORK, INC, WHEREAS, the Arroyo Grande Redevelopment Agency ("Agency") is a California redevelopment agency acting under the California Community Redevelopment Law, Part 1 of Division 24 of the Health and Safety Code (the "Redevelopment Law"); and WHEREAS, the Redevelopment Plan for the Arroyo Grande Redevelopment Project, sometimes referred to as the Project (herein, the "Project") was adopted by Ordinance No. 479 CS by the City Council of the City of Arroyo Grande (the "Redevelopment Plan"). The redevelopment project area for the Redevelopment Plan as so amended constitutes the "Project Area"; and WHEREAS, the Agency is authorized and empowered under the Community Redevelopment Law, California Health and Safety Code Sections 33000, et seq. (the "Community Redevelopment Law"), to enter into agreements for the production, improvement, or preservation of affordable housing to households of limited income, with such housing to be available at Affordable Rent; and WHEREAS, the Family Care Network, Inc. ("Owner") is experienced in the operation of affordable rental housing, particularly in San Luis Obispo County; and WHEREAS, the Owner has proposed that the Agency and the Owner enter intQ an Affordable Housing Agreement (the "Agreemenf'), in substantially the form attached hereto to as "Exhibit A". Under the Agreement, the Agency would provide financial assistance of $50,000 and the Owner would develop, make available and operate rental housing on a site owned by the Owner, located within the project area of the Arroyo Grande Redevelopment Project with not fewer than four (4) units restricted to rental at "Affordable Rent" for "Very Low Income Households" and one (1) unit restricted to rental at "Affordable Renf for "Moderate Income Households" (as those terms are [defined under Health and Safety Code Sections 33334.2,50079.5 and 50105]), with affordability restrictions to remain in place for not less than fifty-five (55) years, all as more particularly set forth in the Agreement; and WHEREAS, the activities of the Owner under the Agreement will further the implementation of the Agency's goals and objectives under the Redevelopment Law to provide decent, safe and sanitary housing for persons of very low, low, and moderate income, to increase, improve and preserve housing available at affordable housing cost to persons of very low, low, and moderate income, pursuant to the Redevelopment Plan and Health and Safety Code Sections 33334.2, et seq., and 33413; and WHEREAS, the Site is located in the Project Area, and the provision of affordable housing under the Agreement will promote the implementation of the Redevelopment --~._.._-_.- RESOLUTION NO. RDA 05-_ PAGE 2 Plan and the implementation plan promulgated pursuant thereto (the "Implementation. Plan"); and WHEREAS, the Agreement promotes the Redevelopment Plan and the affordable housing objectives of the Agency and the City of Arroyo Grande; and WHEREAS, the Agreement is in the vital and best interest of the City of Arroyo Grande, California, and the health, safety and welfare of its residents; NOW, THEREFORE, the Arroyo Grande Redevelopment Agency hereby resolves as follows: Section 1. The Agency finds and determines that: A. The Agreement will effectuate the purposes of the Community Redevelopment Law (Health & Safety Code ~ 33000 et seq.) and the Redevelopment Plan for the Project Area, as well as the Implementation Plan, by facilitating the development of affordable housing within the City of Arroyo Grande and, specifically, within the Project Area, in that the Agreement provides additional funding from the Agency's Low and Moderate Income Housing Fund for project costs that are necessary to make units available for rent on an affordable basis to households of limited income. B. The Agreement is consistent with the Agency's Implementation Plan adopted by the Agency in accordance with Health and Safety Code Section 33490, in that (i) the goals and objectives set forth in the Implementation Plan include increasing and improving the community's supply of affordable housing, and (ii) the project on the Site is specifically identified as one of the Agency's housing programs to r be undertaken in the time period covered by the Implementation Plan. Section 2. The Agreement, in substantially the form attached hereto as "Exhibit A", is hereby approved. Section 3. The Executive Director of the Agency is authorized and directed to make final, technical modifications to the Agreement consistent with the material provisions of the Agreement approved hereby, and to finalize the document for signature by the Agency Chairman, and the Chairman is thereafter authorized and directed to sign the Agreement on behalf of the Agency. Section 4. The Executive Director of the Agency is authorized and directed to take such other and further actions and execute instruments identified in the Agreement and such other and further documents as may be necessary to implement and effect the Agreement and this Resolution on behalf of the Agency. RESOLUTION NO. RDA 05__ PAGE 3 On motion of Board Member , seconded by Board Member I and on the following roll-call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this _day of January, 2005. RESOLUTION NO. RDA 05M_ PAGE 4 TONY M. FERRARA, CHAIR ARROYO GRANDE REDEVELOPMENT AGENCY ATTEST: KELLY WETMORE, AGENCY SECRETARY ARROYO GRANDE REDEVELOPMENT AGENCY APPROVED AS TO CONTENT: STEVEN D. ADAMS, EXECUTIVE DIRECTOR ARROYO GRANDE REDEVELOPMENT AGENCY APPROVED AS TO FORM: TIMOTHY J. CARMEL, GENERAL COUNSEL ARROYO GRANDE REDEVELOPMENT AGENCY --- EXHIBIT A AGREEMENT REGARDING ACQUISITION OF REAL PROPERTY WITHIN THE CITY OF ARROYO GRANDE BY FAMILY CARE NETWORK, INC. THIS AGREEMENT is made and entered into this day of , 2005 by and between Family Care Network, mc" a California nonprofit public benefit corporation (hereinafter referred to as "Owner"), and the ARROYO GRANDE REDEVELOPMENT AGENCY, a political subdivision of the State of California (hereinafter referred to as "the RDA"). WITNESSETH: WHEREAS, the RDA Housing Set-Aside Fund ("RHSAF") program has provided a total of $50,000 for acquisition and development of one or more sites within the City of Arroyo Grande to use for the provision of affordable housing for low and very low income households; and, WHEREAS, Owner will use the $50,000 in RHSAF funds for the acquisition and development ofthe property described in Exhibit "A," which is a parcel with five residential units that is located at 201 S. Halcyon Road (A.P,N. 006-543-038) in the City of Arroyo Grande (hereinafter referred to as "the Property"); and WHEREAS, Owner will acquire and develop the Property and will use the five (5) residential units on the Property to provide four independent housing units for very low income individuals and/or households (as defined in California Health and Safety Code Section 50105) and one unit for moderate income individuals and/or households (California Health and Safety Code Section 50093), and Owner will assure that all five (5) ofthe independent housing units on the Property will remain affordable as described above for a period of fifty-five (55) years; and, WHEREAS, Owner is an eligible entity (a nonprofit 501(c)(3) corporation) to act as designated project owner and, as such, Owner will carry out the Project. NOW, therefore, in consideration of the mutual promises, recitals and other provisions hereof, the parties agree as follows: 1. Scope of Activities (a) Within one year after execution of this Agreement, Owner shall acquire and develop the Property described in Exhibit "A". (b) The one year time period in which to complete the acquisition and development of Agreement - Page 1 the Property may be extended upon written agreement between the Owner and the RDA Executive Director, (c) During the 55 year term of this Agreement, Owner or an affiliated nonprofit organization approved by the RDA shall retain ownership, directly or as general partner in a limited partnership, of the Property and all housing units on the Property, and shall rent the housing units to eligible targeted income group individuals and/or households at rent levels consistent with the requirements of California Health and Safety Code Section 50053, 2. Term of Agreement. The term of this Agreement shall commence on the date first above written and shall terminate fifty-five (55) years after acquisition of the Property by Owner, unless sooner terminated as hereinafter provided, 3. Reporting. During the term of this Agreement, Owner shall submit annual reports describing the incomes of tenants, rents being charged for all five (5) housing units, and the housing assistance and/or programs that are being provided to the tenants. 4. Compensation Subject to the terms and conditions of this Agreement, RDA shall provide to Owner the amount of $50,000,00 to enable Owner to acquire the Property. In no instance shall the RDA be liable for any costs for the Property in excess of $50,000,00 nor for any unauthorized or ineligible costs, Owner shall not obligate or expend the funds for any purpose other than for the Property, Payment for the foregoing shall be in accordance with the following procedure: (a) The RDA shall deposit $50,000.00 in RHSAF funds into an escrow account established for acquisition of the Property described in Exhibit "A", Said payment shall be as approved by the RDA Executive Director. (b) The funds shall be disbursed according to escrow instructions provided by the RDA in compliance withRDA regulations. (c) Owner shall execute a note, trust deed and covenants in favor of the RDA in the amount of $50,000,00. The trust deed and covenants will be recorded at the close of the escrow to purchase the property. The RDA agrees to subordinate its position to the primary lender(s) that is in: first position at the time of Property acquisition and during the 55 year term ofthis Agreement. (d) If escrow is not successfully completed within 180 days after execution of this Agreement, the $50,000.00 will be returned to the RDA. 5. Sources and Availability of Funds. It is understood by the parties hereto that the funds Agreement - Page 2 being used for the purposes of this Agreement are RHSAF funds, Notwithstanding any other provision ofthis Agreement, the liability of the RDA shall be limited to the RHSAF funds available for the project under Section 4 (Compensation) ofthis Agreement. 6. Termination of Agreement for Cause. If the RDA determines that Owner has incurred obligations or made expenditures for purposes which are not permitted or are prohibited under the terms and provisions of this Agreement, or if the RDA determines that Owner has failed to fulfill its obligations under this Agreement in a timely and professional manner, or if Owner is in violation of any of the terms or provisions of this Agreement, or if Owner should be adjudged to be bankrupt, or if Owner makes a general assignment for the benefit of Owner's creditors, or if a receiver should be appointed in the event of Owner's insolvency, then the RDA shall have the right to terminate this Agreement upon giving written notice thereofto Owner, and giving thirty (30) days to cure such default and such additional time ifthe default cannot reasonably be cured in thirty (30) days provided Owner has commenced to cure during the 30 day cure and is pursuing the cure to completion, Termination shall have no effect upon the rights and obligations ofthe parties arising out of any transaction occurring prior to effective date of such termination, If the RDA's termination of Agreement for cause is defective for any reason, including but not limited to the RDA's reliance on erroneous facts concerning Owner's performance, or any defect in the notice thereof, the RDA's maximum liability shall not exceed the amount payable to Owner under Section 4 (Compensation) ofthis Agreement. 7. Reimbursement of Improper Expenditures, If at any time within applicable statutory periods of limitation it is determined by the RDA or its duly authorized representatives, that funds provided for under the terms of this Agreement have been used by or on behalf of Owner in a manner or for purposes not authorized under this Agreement or prohibited by law Owner shall, at the RDA's request, pay to the RDA an amount equal to one hundred percent of the amount improperly expended. 8. Employment Status. Owner shall, during the entire term of this Agreement, be construed as a contractor, and nothing in this Agreement is intended nor shall be construed to create an employer-employee relationship or a joint venture relationship. Neither Owner nor any of Owner's agents, employees or contractors are or shall be considered to be agents or employees of the RDA in connection with the performance of Owner's obligations under this Agreement. 9. Inspections. The RDA reserves the right to inspect any work performed hereunder to ensure that the Property is being and has been maintained in accordance with the applicable Agreement - Page 3 federal, state and/or local requirements, and this Agreement. Owner agrees that all work found by such inspections not to conform to the applicable requirements shall be corrected to the satisfaction of the RDA, within a reasonable time ftame as set by the RDA. 10. Records. (a) All records, accounts, documentation and all other materials relevant to a fiscal audit or examination, shall be retained by Owner for a period of not less than three (3) years ftom the date ofRDA's final payment under this Agreement. (b) If so directed by the RDA upon termination ofthis Agreement, Owner shall cause all records, accounts, documentation and all other materials relevant to the Property to be delivered to the RDA as depository, (c) Owner understands that it shall be the subject to the examination and monitoring or audit by the RDA Executive Director for a period ofthree (3) years after the final payment under this Agreement. n. Audit. (a) All records, accounts, documentation and other materials deemed to be relevant to the Property by the RDA shall be accessible at any time to the authorized representatives of the county, state or federal government, on reasonable prior notice, for the purpose of examination or audit. (b) An expenditure which is not authorized by this Agreement or which cannot be adequately documented shall be disallowed and must be reimbursed to the RDA or its designee by Owner. Expenditures for Activities not described in Section 1 (Scope of Activities) of this Agreement shall be deemed authorized if the performance of such activities is approved in writing by the RDA Executive Director prior to the commencement of such activities, (c) Absent ftaud or mistake on the part of the RDA, the determination by the RDA of allowability of any expenditures shall be final. 12. Indemnification, Owner agrees to accept responsibility for loss or damage to any person or entity, and shall defend, indemnify and hold harmless the RDA, its officers, agents and employees ftom any and all claims and demands, damages, costs, expenses, judgments, attorney fees or liability that may be asserted by any person or entity, including Owner, to the extent arising out of or in connection with the negligent acts or omissions or willful misconduct in the performance by Owner hereunder. The obligation to indemnify shall be effective and shall extend to all such claims and losses, in their entirety, even when such claims or losses are Agreement - Page 4 brought about in part by the comparative passive negligence of the RDA, its officers, agents and employees, However, this indemnity will not extend to any claims or losses arising out ofthe sole negligence or willful misconduct ofthe RDA, its officers, agents and employees, The preceding paragraph applies to any theory of recovery relating to said act or omission, including, but not limited to the following: . (a) Violation of statue, ordinance, or regulation. (b) Professional malpractice. (c) Willful, intentional or other wrongful acts, or failures to act. (d) Negligence or recklessness, (e) Furnishing of defective or dangerous products, (t) Premises liability, (g) Strict Liability. (h) Inverse condemnation, (i) Violation of civil rights, G) Violation of any federal or state statue, regulation, or ruling resulting in a detennination by the Internal Revenue Service, California Franchise Tax Board, or any other California public entity responsible for collecting payroll taxes, when Owner is not an independent contractor. It is the intent of the parties to provide the RDA the fullest indemnification, defense, and "hold hannless" rights allowed under the law. If any word(s) contained herein are deemed by a court to be in contravention of applicable law, said word(s) shall be severed from this contract and the remaining language shall be given full force and effect. 13. Insurance. Owner, at its sole cost and expense, shall purchase and maintain the insurance policies set forth below on all of its operations under this Agreement. Such policies shall be maintained for the full tenn of this Agreement and the related warranty period (if applicable). Any failure to comply with reporting provisions(s) ofthe policies referred to above shall not affect coverage provided to the RDA, its officers, employees, volunteers and agents. For purposes of the insurance policies required hereunder, the tenn "RDA" shall include officers, employees, volunteers and agents of the RDA, individually or collectively. (a) MINIMUM SCOPE AND LIMITS OF REQUIRED INSURANCE POLICIES The following policies shall be maintained with insurers authorized to do business in the State of Agreement - Page 5 --~._------_. - California and shall be issued under fonns of policies satisfactory to the RDA: (1) COMMERCIAL GENERAL LIABILITY INSURANCE POLICY ("CGL") Policy shall include coverage at least as broad as set forth in Insurance Services Office (herein "ISO") Commercial General Liability coverage. (Occurrence Fonn CG 0001) with policy limits not less than the following: $1,000,000 each occurrence (combined single limit); $1,000,000 for personal injury liability; $1,000,000 aggregate for products-completed operations; and, $1,000,000 general aggregate. The general aggregate limits shall apply separately to Owner's work under this Agreement. (2) BUSINESS AUTOMOBILE LIABILITY POLICY ("BAL") Policy shall include coverage at least as broad as set forth in Insurance Services Office Business Automobile Liability Coverage, Code 1 "Any Auto" (Fonn CA 0001), This policy shall include a minimum combined single limit of not less than One-Million ($1,000,000) Dollars for each accident, for bodily injury and/or property damage. Such policy shall be applicable to vehicles used in pursuit of any of the activities associated with this Agreement. Owner shall not provide a Comprehensive Automobile Liability policy which specifically list scheduled vehicles without the express written consent ofRDA. (3) WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY INSURANCE POLICY ("WC/EL") This policy shall include at least the following coverages and policy limits: (i) Workers' Compensation insurance as required by the laws of the State of California; and (ii) Employer's Liability Insurance Coverage B with coverage amounts not less than One Million ($1,000,000) Dollars each accidentIBodily Injury (herein "BI"): One Million ($1,000,000) Dollars policy limit BI by disease; and One Million ($1,000,000) Dollars each employee BI by disease. (b) DEDUCTffiLES AND SELF-INSURANCE RETENTIONS Any deductibles and/or self insured retentions which apply to any of the insurance policies referred to above shall be declared in writing by Owner and approved by the RDA before work is Agreement - Page 6 begun pursuant to this Agreement. At the option of the RDA, Owner shall either reduce or eliminate such deductibles or self-insured retentions as respect the RDA, its officers, employees, volunteers and agents, or shall provide a financial guarantee satisfactory to the RDA guaranteeing payment of losses and related investigations, claim administration, and/or defense expenses, (c) ENDORSEMENTS All of the following clauses and endorsements, or similar provisions, are required to be made a part of insurance policies indicated in parentheses below: (1) A "Cross Liability", "Severability of Interest" or "Separation ofInsureds" clause (CGL & BAL); (2) The RDA, its officers, employees, volunteers and agents are hereby added as additional insureds in respect to all liabilities arising out of Owners performance of work under this Agreement (CGL & BAL); (3) If the insurance policy covers an "accident" basis, it must be changed to "occurrence" (CGL & BAL); (4) This policy shall be considered primary insurance in respect to any other valid and collectible insurance RDA may possess, including any self-insured retention RDA may have, and, any other insurance RDA does possess shall be considered excess insurance only and shall not be called upon to contribute with this insurance (CGL & BAL); (5) No cancellation or non-renewal of this policy, or reduction of coverage afforded under the policy, shall be effective until written notice has been given at least thirty (30) days prior to the effective date of such reduction or cancellation to RDA at the address set forth below (CGL, BAL & WC/EL); (6) . Owner and its insurers shall agree to waive all rights of subrogation against the RDA, its officers, employees, volunteers and agents for any loss arising under this Agreement (CGL); and (7) Deductibles and self-insured retentions must be declared (All Policies), (d) ABSENCE OF INSURANCE COVERAGE RDA may direct Owner to immediately cease all activities with respect to this Agreement if it determines that Owner fails to carry, in full force and effect, all insurance policies with coverages at or above the limits specified in this Agreement. Any delays or expense caused due Agreement - Page 7 to stopping of work and change of insurance shall be considered Owner's delay and expense, At the RPA's discretion, under conditions of lapse, the RDA may purchase appropriate insurance and charge all costs related to such policy to Owner, (e) PROOF OF INSURANCE COVERAGE AND COVERAGE VERIFICATION Prior to commencement of work under this Agreement, and annually thereafter for the term of this Agreement, Owner, or each of Owner's insurance brokers or companies, shall provide RDA a current copy of a Certificate of Insurance, on an Accord or similar form, which includes complete policy coverage verification, as evidence of the stipulated coverages, All of the insurance companies providing insurance for Owner shall have, and provide evidence of, a Best Rating Service rate of A VI or above. The Certificate of Insurance and coverage verification and all other notices related to cancellation or non-renewal shall be mailed to: Arroyo Grande Redevelopment Agency Executive Director P.O, Box 550 Arroyo Grande, CA 93421 14. Equal Employment Opportunity. During the performance ofthis Agreement, Owner agrees that it will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin, and specifically agrees to comply with the provisions of Section 202 of Presidential Executive Order No. 11246, 15. Entire Agreement and Modification, This Agreement sets forth the full and entire understanding of the parties regarding the matter set forth herein, and any other prior or existing understandings or agreement by the parties, whether formal or informal, regarding any matters are hereby superseded or terminated in their entirety. No changes, amendments, or alterations shall be effective unless in writing and signed by all parties hereto. Owner specifically acknowledges that in entering into and executing this Agreement, Owner relies solely upon the provisions contained in this Agreement and no others. 16. Funding for Additional Services, Funding of any programs, projects, or services beyond the term of this Agreement, by any new agreement or amendment or extension of this Agreement, have not been authorized and will depend upon the RDA's determination of satisfactory performance of this Agreement by Owner and upon the availability to the RDA of additional grant funds allocated for such purposes. Neither RDA nor any employee of the RDA has made any promise or commitment, express or implied, that any additional funds will be paid Agreement - Page 8 or made available to Owner for the purpose of this Agreement over and above the funds expressly allocated under the tenns of this Agreement. 17. Compliance with Local, State and Federal Laws and Regulations. Owner agrees to comply with all local, State and Federal laws and regulations that pertain to health and safety, labor, fair employment practices, equal opportunity and all other matters applicable to Owner, its subcontractors and the Property, 18. Constitutional Prohibition. Owner agrees to comply with 24.CFR Sec, 570.200(j) regarding First Amendment Church/State principles. 19. No Assignment Without Consent. Inasmuch as this Agreement is intended to secure the specialized services of Owner, Owner shall not have the right to assign or transfer this Agreement, or any part hereof or monies payable hereunder, without the prior written consent of the RDA Executive Director, and any such assignment or transfer without the RDA's prior written consent shall be considered null and void. 20. Law Governing and Venue. This Agreement has been executed and delivered in the State of California, and the validity, enforceability and interpretation of any ofthe clauses ofthis Agreement shall be detennined and governed by the laws of the State of California. All duties and obligations ofthe parties created hereunder are perfonnable in San Luis Obispo County, and such County shall be that venue for any action, or proceeding that may be brought, or arise out of this Agreement, or be in connection with or be caused by reason of this Agreement. 21. Enforceability. If any tenn, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. 22. Binding on Successors in Interest. All provisions of this Agreement shall be binding on the parties and their heirs, assigns and successors in interest. 23. Effect of Waiver. RDA's waiver or breach of anyone tenn, covenantor other provision. of this Agreement shall not be a waiver of a subsequent breach of the same tenn, covenant or provision of this Agreement or of the breach of any other tenn, covenant or provision of this Agreement. 24. Notices. Unless otherwise provided, all notices herein required shall be in writing, and delivered in person or sent by United States first class mail, postage prepaid. Notices required to be given to RDA shall be addressed as follows: , Executive Director, Arroyo Grande . Redevelopment Agency, City of Arroyo Grande, P.O. Box 550, Arroyo Grande, California, 93421. Notices required to be given to Owner shall be addressed as follows: James Roberts, Executive Director, Family Care Network, mc" 3765 South Higuera St., Ste, 100, San Luis Obispo, CA 93401. Provided that any party may change such address by notice in writing to the other parties and thereafter notices shall be transmitted to the new address. Agreement - Page 10 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. F AMIL Y CARE NETWORK, INC. , a California nonprofit public benefit corporation By: MICHAEL SPARROW Date Chairman of the Board of Directors By: JAMES ROBERTS Date Executive Director ARROYO GRANDE REDEVELOPMENT AGENCY By: Steven Adams, Executive Director Date Arroyo Grande Redevelopment Agency APPROVED AS TO FORM AND LEGAL EFFECT: TIMOTHY J, CARMEL City Attorney By: City Attorney Date Agreement - Page 11 -~-_.- EXHIBIT "A" LEGAL DESCRIPTION Real property in the City of Arroyo Grande, County of San Luis Obispo, State of California, described as follows: That portion of Lot 105 of the Ranchos Corral de Piedra, Pismo and Bolsa de Chamisal, in the City of Arroyo Grande, County of San Luis Obispo, State of California, according to map thereof surveyed by Jas. T, Stratton, C.E., September, 1873 and filed for record in Book A, Page 65 of Maps, in the office of the County Recorder of said County, described as follows: Beginning at a point in the Easterly line of Cienega Road, South 00 09' East, 487,93 feet from the Southwest corner of Lot 1 in Block 16 of the Western Addition to the Town of Arroyo Grande, recorded in Book B, Page 10 of Maps, said point being the Southwest corner of the property conveyed to A. Sewell, et UX, by deed recorded in Book 211, Page 49 of Official Records; thence South 00 09' East, along said Easterly line of Cienega Road, 113 feet to the true point of beginning; thence leaving said Easterly line of Cienega Road, North 660 57' East, 185 feet; thence North 00 09' West parallel to the East line of Cienega Road, 56,60 feet; thence South 660 57' West, 185 feet to the East line of Cienega Road; thence South 00 09' East along said Easterly line, 56.50 feet to the true point of beginning. EXCEPTING therefrom that portion of said land described in the deed to the City of Arroyo Grande, recorded January 15, 1965 in Book 1333, Page 692 of Official Records, Assessor's Parcel No: 006-543-038 _~!;ii.:.;.;,..