Minutes 2004-11-23
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, Dicken~, 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 PoHce 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 Recoanizina November 23. 2004 as Salvatore "Sal" Federico Day in
the City of Arroyo Grande.
Mayor Ferrara presented an Honorary Proclamation recognizing and honoring one of the City's
oldest citizens by declaring November 23, 2004 as Salvatore "Sa I" 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 SUGGESTIONS
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 License Renewals and requested the Council consider adoption of the
Resolution opposing any relicensing of Diablo Canyon Units 1 & 2.
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PAGE 2
S. 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:
AYES: Runels, Costello, Dickens, Ferrara
NOES: None
ABSENT: Lubin
S.a. Cash Disbursement Ratification.
Action: Approved the listings of cash disbursements for the period November 1, 2004 -
November 15, 2004.
S.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 interfund
advance from the Water Fund to cover cash deficits in other funds as of October 31,
2004.
S.c. Statement of Investment Deposits.
Action: Received and filed the report of current investment deposits as of October 31,
2004.
S.d. Consideration of Approval of Minutes.
Action: Approved the minutes of the Special and Regular City Council Meetings of
November 9, 2004, as submitted.
S.e. Consideration of Approval of Employment Agreement-Chlef of Police.
Action: Approved and authorized the City Manager to execute the Employment
Agreement between the City and Lester F. T erBorch and authorize an appropriation of
$5,600 from the General Fund.
S.f. Consideration of Salary Adjustment for Management Employees.
Action: Adopt Resolution approving a 2% salary adjustment for management employees
effective January 1 , 2005.
S.g. Consideration of Cancellation of December 2S, 2004 City Council Meeting.
Action: Approved cancellation of the December 2S, 2004 City Council Meeting.
S.h. Consideration of Adoption of Ordinance Adding Section 10.0S.060 to Chapter 10.0S
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 10.0S.060 to Chapter 10.0S of Title 10 of the Arroyo
Grande Municipal Code Entitled "Prohibition Of Solicitation At Entrances To
Commercial Parking Areas And Upon Public Right Of Way Areas"
S.I. 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.
S.J. Consideration of an Award of Contract for Construction of the Traffic Way Bridge
Rail Replacement Project, PW 2004-en.
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
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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 T em 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 Viewshed 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.
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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
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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
10.8. 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 underway. 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
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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 incentives 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
recommendations 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.
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CITY COUNCIL MINUTES
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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.
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PAGE 8
12. CITY COUNCIL REPORTS
a. MAYOR TONY M. FERRARA:
(1) San Luis Obispo Council of GovernmentslSan 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 17th; 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 1st and will enter into an
Agreement with the Avila Beach Community Foundation for those services.
(3) South County Youth Coalition. None.
(4) Other. None.
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CITY COUNCIL MINUTES
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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 T erBorch explained the City's
process for conducting 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-Disaster 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.
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PAGE 10
18. ADJOURNMENT
Mayor Ferrara adjourned the meeting at 10:29 p.m.
~ ~kA/
Tony M-:-Ferr~yor
ATTEST:
(Approved at CC Mtg t -{1-05 )