Minutes 1993-07-27
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149
MINU'l'ES
REGULAR MEETING OF THE CITY COUNCIL
TUESDAY, JULY 27, 1993
CITY COUNCIL CHAMBERS, 215 EAST BRANCH STREET
ARROYO GRANDE, CALIFORNIA
The city Council of the City of Arroyo Grande met at 7:30
P.M., with Mayor Matthew Peter Gallagher, III, presiding.
1.. & 2. FLAG SALUTE AND INVOCATION
Mayor Gallagher led the Pledge of Allegiance to our Flag, and
the Rev. Phil Coleman of Oak Park Foursquare Church delivered the
invocation.
3. ROLL CALL
Present were Mayor Gallagher and Council Members Bernard
Burke, Gene Moots and James Souza. Absent was Council Member Drew
Brandy. Staff Members present were city Manager Chris
Christiansen, City Attorney' Roger Lyon , City Clerk Nancy Davis,
Finance Director David Bacon, Chief of Police Rick TerBorch and
Public Works Director Van Laurn.
4. ORAL COMMUNICATIONS
COLEEN MCLEAN, Chairperson of the County Commission on Aging,
asked the City for input on senior Problems.
K.L. JEFFERIES, 1211 Linda Drive, said the council should not
impose a utility Users Tax on the city. He also said fees for
Police reports on accidents are too high.
ERNEST SARINA, 435 Le Point Street, said the city had not
responded to his complaints, and warned the Council there will be
a change coming.
5. CONSENT AGENDA
It was moved by Souza/Burke, and the motion passed unanimously
to approve Consent Agenda Items 5.b., 5.c., 5.d. and 5.f., with the
recommended courses of action.
It was moved by Burke/Moots, and the motion passed (Burke,
Moots and Gallagher voting aye and Souza abstaining on 5.a. and not
voting on 5.e.), with the recommended courses of action.
5.a. July 13, 1993, City Council Minutes. Approved. Council
Member Souza said he was absent from this meeting and abstained
from voting.
5.b. Executive summary, City's Housing Element. Information.
5.C. Architectural Review Case No. 87-392, Addition of a 72-Square
Foot Patio Enclosure; 450 Spanish Moss Lane; Max G. Abbott.
Approved.
5.d. Request to Purchase Police Vehicle; Budgeted Item. Approved.
5.e. Acceptance of Well No.9 (Oak Park); Water Treatment Facility;
Project No. 60-92-2. Accepted and Authorized. Council Member
Souza did not vote saying he may have a conflict of interest.
5.t. Acceptance of Public Improvements for Tract 1994; Rancho
Grande. Accepted and Authorized.
~J&EGISTER OF CHECKS
It was moved by Moots/souza, and the motion passed unanimQusly
to approve Cash Disbursements in the amount of $626,640.73, as
listed in the July 22, 1993, Staff Report of Finance Director
Bacon.
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7.A. CONTINUATION OF PUBLIC HEARING - UTILITY USERS TAX OF FIVE
PERCENT (5%} AND AN INCREASE IN THE RATE OF THE TRANSIENT OCCUPANCY
TAX FROM SIX PERCENT (6%} TO TEN PERCENT (10%\1 CITYWIQE
Mr. Christiansen referred to an overhead projector slide
showing what the city has lost to the State and County beginning in
1991. He said the City's annual losses are now amounting to
$616,000.
There were questions from the audience, including one about
the city collecting its own property taxes. "
Finance Director Bacon reviewed the City's Proposed Budget for
1993-1994, using the overhead projector. There were audience
questions and comments concerning cutting City employees' pay, mis-
management of the city's finances; what utilities would be included
in the Utility Users Tax; the status of the City's finances in the
fiscal year of 1994-1995; reorganizing the various city
departments, and the City's deficit versus expenditures on
operating equipment.
After being assured that the' PUblic Hearing had been duly
published and all legal requirements met, Mayor Gallagher declared
the Public Hearing open and said all persons would be heard
regarding the matter.
speakers included JIM YACONO, 153 Tally Ho Road; GENE MASTRO,
1101 James Way; RAY TROLL, 804 Covington Drive; JACK SMITH, 338
Quail Hill Road; MARSHA DUGGER, 222 McKinley; RICHARD DUFFIN, 1398
Newport Ave.; FRED FUNNELL, 550 Via vaquero 1 JEAN WADE, 750
Avenida de Diamante; VAN VANDEVEER, 756 Myrtle I HEATHER JENSEN,
Chamber of Coromerce; PAT DEMPSEY, 436 Colado Court; IRA BOGART, 201
N. Elm street, who read a letter from GARY FOWLER of San Luis
Obispo; RUTH BOGART; MARSHALL BRADFORD, 636 Gaynfair court; EARL
LITTLETON, 217 Short Street; EVELYN TALLMAN, 532 Carol Place; JACK
SMITHI MRS. MCLEAN, 1222 Huasna Road; JIM FULLER, 318 whitley,
MARIE CATTOIR, 195 Orchid Lane: NICK PATEL, 611 El Camino Real;
JERRY BAKER, Grand Avenue Motel, and PAUL aADDOX, 587 Valley Road.
The speakers made the following points:
1. An expiration date should be put on the Utility Users Tax.
2. City employees' salaries shoUld be cut, rather than tax the
citizens.
3. city employees receive health care and pension benefits others
cannot get. '
4. The Utility Users Tax will hurt businesses in the City. Small
businesses could have additional costs of $600 to $1,000, and
larger businesses, $15,000 to $20,000.
5. Medical emergency calls ih the city should not be answered by
both the Fire Department and the ambulance service.
6. The recession will last until 1997, and therefore there should
be some management changes made in the City.
7. The City should have more of a commercial and economic base.
8. Home prices have gone down 6.6 percent in the City, while they
have gone up 5.7 percent in the County.
9. There should be cuts in the Parks and Recreation programs in the
City.
10. The Transient Occupancy Tax should not be increased because
occupancy is down.
11. The Transient Occupancy Tax should be directed to economic
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.111f,Y 27, 1993
development as it was planned in the beginning.
12. The residents of Arroyo Grande cannot afford the utility Users
Tax.
13. More cuts in the city budget. should be made before a tax is
levied.
14. A citizens' task force should work with the Council and develop
a three-year strategic plan.
15. A "hardship" clause should be part of the utility Users Tax
ordinance, but tax monies will be needed to administer the program
because there are large number of citizens who will apply for
hardship exemptions.
16. A sales tax may be a better tax to implement.
17. More public notice should be given about proposed taxes such as
this.
18. The city council has been elected and should make the final
decision on the taxes. .
When no one further came forward to speak, Mayor Gallagher
closed the public hearing to the floor.
council Members discussed the proposed plan for new and
increased taxes. Council Member Souza said it is part of a
citizen's duty to help find a solution to the city's economic
problems. council Member Moots said he would like to see a task
force with a 60 day deadline to look at the economic problems.
Council Member Burke agreed with the task force idea and said if
there is a utility Users Tax, it should have a sunset clause.
Mayor Gallagher said the Council is not insensitive to what the
citizens have said. He said the proposed new and increased taxes
would only cover the basic level of services that it believes would
be accepted by the citizens. He approved of a task force to
develop an economic strategy.
After further Council discussion, Mayor Gallagher said anyone
who wants ,to participate on the task force should contact the city
and a group would be put together.
It wa~ moved by Burke/Moots, and the motion passed unanimously
to continue ,the public hearing to August 10, 1993.
CONTINUATIon OF PUBLIC HEARING - RECONSIDERATION OF DRAINAGE
IMPROVEMENT CONDITIONS: WALlfUT VIEW ESTATES: LOT SPLIT CASE NO. 85-
408, PARCEL MAP AG 85-015: LOCATED SOUTH OF EAST CHERRY AVENUE
BETWEEN LOS OLIVaS LANE AND BRANCH MILL ROAD: VICK PACE/COKER
ELLSWORTH .
City Attorney Lyon said this was a public hearing continued at
the request of the applicant. He said there were two prior public
hearings and extensive public testimony. He said the hearing was
ordered by the Court of Appeal as a result of litigation involving
the conditions of approval of the lot split. He said before the
council is only the issue of the six drainage conditions. He said
the Court indicated that the scope of conditions that could be
imposed could relate only to flooding issues to protect the lots
being created by the lot split itself. He said the Court directed
that the matter of the drainage conditions come back to the city,
and either the city eliminate Conditions 1 through 5 that deal with
offsite drainage conditions, or impose them only if there is
substantial evidence in the record to support them in light of the
narrow parameters. He said he and the city Engineer had
recommended that the council delete Conditions 1 through 5.
After being assured that the PUblic Hearing had been duly
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published and all legal requirements met, Mayor Gallagher declared
the Public Hearing open and said all persons would be heard
regarding the matter.
COKER ELLSWORTH, applicant, 129 Bridge street, said he was in
concurrence with the Staff recommendation.
GRACE STILLWELL, 734 Myrtle, said she did not want any more
water that she was not entitled to on her property.
When no one further came forward to speak, Mayor Gallagher
closed the hearing to the floor,
council Members discussed how to proteot the surrounding
property owners from flooding after the lots are developed.
Public Works Director Laurn referred to his July 7. 1993,
Staff Report and'said the Court has said that only the drainage on
the four lots could be considered. He said the homesites would be
elevated, but there would be 16 acres of land to absorb the water
and water would be allowed to bleed off site.
Mayor Gallagher opened the public hearing again to allow
further public input.
MRS. CATTOIR said the City should ask the county to help with
the flooding problem since Newsom Springs is located in the County
and is a source of drainage problems.
MRS. STILLWELL asked if she keeps her development dry, can she
drown a neighbor with her runoff. The city Attorney said no, this
is a specific application. MRS. STILLWELL said more lawsuits
against the city could be incurred.
~ayor Gallagher again closed the public hearing to the floor.
In answer to a question from the Mayor, the city Attorney said
if the Council proceeded with the motion to delete conditions 1
through 5, it was his opinion that the city had complied with the
Court order. He said he would file a statement of how the City has
complied with the Court's order.
It was moved by Souza/Burke, and the motion passed unanimously
(council Member Brandy absent), with regard to Lot Split Case No.
85-408 and Parcel Map AG 85-015, to delete Drainage Improvement
Conditions. Nos. 1 through 5 and retain condition No. 6.
7.C. PUBLIC HEARING - POTENTIAL ACTIVITIES FOR A 1994 COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) I PEOPLES SELF-HELP HOUSING
CORPORATION: SCOTT SMITH
Scott smith of Peoples' Self-Help Housing spoke to the
Council. He said the actual published notice in the paper said the
primary purpose of this pUblio hearing was to close-out on one of
the standard agreements with the state. He said the state has also
suggested that this hearing be used for suggestions on any future
activities that the City might want to apply for from this same
funding souroe. He said, with regard to the contract close-out,
the funds were used for purchase of the first parcel of land for
senior citizens housing. He said this past Spring the city was
awarded a grant to purohase the second parcel, and that will be
carried out and construction will begin in the early part of 1994.
He said the public hearing should allow for input on any future
activities the city might want to sponsor.
After being assured that the Public Hearing had been duly
published and all legal requirements met, Mayor Gallagher declared
the Public Hearing open and said all persons would be heard
regarding the matter.
MRS. CATTOIR said only naturalized citizens should be allowed
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to own public housing. She said united states citizens would not
be allowed to own public housing in other countries.
When no one further came forward to speak, Mayor Gallagher
closed the hearing to the floor.
Mayor Gallagher said the city property south of the present
City Hall and Arroyo Grande Creek would bean ideal area for senior
housing.
Mr. Christiansen referred to the Planning Director's staff
Report of July 27, 1993, and the attached Presentation Agenda that
listed Program Funding and Funding Categories. He said the Staff
may be coming back to the Council concerning applying for economic
development funds.
It was moved by Burke/Moots, and the motion passed unanimously
to authorize the City Manager to sign the Grantee Performance
Report. Mayor Gallagher said the City had complied with the
requirements of accepting testimony, and had directed Staff on the
1994 grant cycle.
B.A. RESOLUTION ESTABLISHING PARKING PENALTIES AND A PENALTY FOR
LATE PAYMEN~
Mr. Christiansen referred to the July 21, 1993, Staff Report
of the Chief of Police. He said that legislation requiring this
action became effective July 1, 1993. Chief TerBorch said the
penalty amounts were based on the bail schedule.
It was moved by Burke/Moots (4-0-1, Burke, Moots, Souza and
Gallagher voting aye, Brandy absent) to approve Resolution No. 2996
Establishing Parking Penalties and a Penalty for Late Payment.
9.A. DEL~GATION OF AUTHORITY FOR RESTRICTED PARKING AND STOP SIGNS
Mr. Christiansen referred to the Public Works Director's Staff
Report of July 23, 1993, and said the recommendation is that the
Public Works Director have the authority to grant or deny requests
for stop signs and restricted parking on existing streets. He said
if individuals object to the Public Works Director's decision, they
could appeal to the Traffic commission and if still not satisfied
at that level, then to the city Council.
MR. DUFFIN said the duties of the Traffic commission include
what the Public Works Director is requesting authority for. He
said the authority of the City council also is being circumvented.
.
Mr. Laurn said the present procedure is the procedure that
will remain, all except for the Council's involvement.
The City Attorney said if the intent is that all or some of
these decisions should be going to the Traffic Commission, that is
not what the proposed resolution says. He said the resolution
delegates the authority purely to the city Engineer and there is no
reference to the Traffic commission. He asked for time to review
the Municipal Code section on the Traffic commission.
After Council discussion, it was decided to postpone a
decision on this matter until the meeting of August 10, 1993.
9.B. CONCEPTUAL SUPPORT FOR "227 BYPASS" PROJECT
Mr. christiansen referred to the July 24, 1993, Staff Report
of the Public Works Director I and recommended that the Council
support the pursuit for transportation funds to assist regarding
the "227 Bypass." He said the Council of Governments has
approximately $860,000 in unallocated funds that are awarded on a
competitive basis, and the city will apply for the entire amount.
council Member Moots said the bypass would give the city
another crossing of the Arroyo Grande Creek, eliminate traffic on
Branch Street and congestion in the Village and provide an
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c~'YCOUNCIL MINUTES
alternate road to Highway 101. ,
MRS. CATTOIR questioned the advisability of the bypass on the
basis of the city not having the financial resources to provide
matching funds for the project.
MRS. STILLWELL said she wanted to be on record that she was
opposed to the proposed bypass because her house is right there.
Mr. Laurn said there are 16 projects vying for the money and
the bypass is rank6d number one.
It was moved by Moots/Burke, and the motion passed unanimously
to approve conceptual support to a "227 Bypass" project through
regional and local STP/SHA funding and certify that funds will be
expended within 24 months of the scheduled project start date. ,
,
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9.C. RESOLUTION REOUESTING AUTHORIZATION TO CLOSE A STREET FOR THE
HARVEST FESTIVAL PARADE
It was moved by Burke/Souza (4-0-1, Burke, souza, Moots and
Gallagher voting aye, Brandy absent) to approve Resolution No. 2997
Requesting Authorization to Close a street for Harvest Festival
Parade'.
9.0. REPORTS FROM VARIOUS CO~ITTEES
It was moved by Souza/Moots, and the motion passed unanimously
to continue this agenda item to August 10, 1993.
10. WRITTEN COHMVNICATIONS
Mayor praised city Staff and said this grant was a "real plum"
for the city.
11. ORAL COMMUNICATIONS
None.
~2. CLOSED SESSION
None.
13. ADJOURNJ'ENT
It was moved by Burke/Moots, and the motion passed unanimously
to adjourn the meeting at 11:30 P.M.
;1 ~I
. MATTHEW , MAYOR
A'rTEST: ~ a. ~
NANCY A DAVIS, CITY CLERK
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