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Minutes 1993-07-27 . . 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. 1 150 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 2 ciTY COUNCIr. MINUTES 151 .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 3 "--......---....----..--.-..--. l'S"20UNClf. MINU'l'ES I 7, 1993 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 4 ~'''''----'-'-'''-~'-''-'-'- ----. t: rTY COUNCIL MINU'I'ES .JULY 27, 1993 153 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 5 _.,._~--~ -.----_._---- -..--- ,JI11~:>A, 1993 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. , , , 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 . 6