Minutes 1993-07-13
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143
MINUTES
REGULAR MEETING OF THE CITY COUNCIL
TUESDAY, JULY 13, 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 SALU1E AND INVOCATION
Mayor Gallagher led the Pledge of Allegiance to Our Flag and
the Rev. Roy Fruits of Graoe Bible Churoh Adult Ministries
delivered the invooation.
3. ROLL CALI,
Present were'Mayor Gallagher and Council Members Drew Brandy,
Bernard Burke and Gene Moots. Absent was Council Member James
Souza. Staff Members present were City Manager Chris Christiansen,
City Attorney Roger Lyon, city Clerk Nancy Davis, Finance Director
David Bacon, Parks and Recreation Director John Keisler, Chief of
Building and Fire Kurt Latipow, Police Commander Bill Andrews and
PUblic Works Director Van Laurn.
4. ORAL COMMUNICATIONS
Nona.
S. CONSENT AGENDA
It was moved by Brandy/Burke, and the motion passed
unanimously to approve Consent Agenda Items 5.a. through S.h., with
the recommended courses of aotion.
5.a. Proclamation, "Parks and Recreation Month," July, 1993. The
proclamation was accepted by Mr. Keisler.
S.b. June 17, 1993, Budget Study Session Minutes. Approved.
5.c. June 22, 1993, city Council Minutes. Approved.
S.d. July 7, 1993, Senior Advisory Commission Minutes.
Information.
5.e. June, 1993, Investment Report. Information.
5.f. Second Quarter, Sales Tax Revenue Report. Information.
S.g. 1993 Landmark Tree Inspection. Approved.
5.h. Lettar from Ross N. McGowan, 241 Corbett Canyon Road,
Regarding Construction of Curb, Gutter, and Sidewalk as a Condition
of the Building Permit for Construction. Referred to Planning
commission. ,
6. REGISTER OF CHECKS
It was moved by Burke/Moots, and the motion passed unanimously
to approve Cash Disbursements in the amount of $594,786.66, as
listed in the June 16, 1993, Staff Report of Finance Director
Bacon.
7.A. CONTINUATION OF PUBLIC HEARING - REC9NSIDERATION OF DRAINAGE
IMPROVEMENT CONDITIONS: HAI.NUT VIEW BSTATES: LOT SPLIT CASE NO. 85-
408. PARCEL MAP AG 85-0151 LOCATED SQUTH OF EAST CHERRY AVENUE
BETWEEN LOS OLIVaS LANE AND BRANCH MILl. ROAD: VICK PACE/COKER
EI,LSWORTH
City Attorney Lyon said this was a oontinued public hearing.
He referred to his memorandum of July 7, 1993, and one written on
the same date by the Public Works Director. He said they were
jointly recommending, based on testimony qiven at the last Council
meeting, that the off-site drainage conditions represented by
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CITY COUNCIL MINUTES
JULY 13, 1993
Conditions 1 through 5 be eliminatad basad on the court of appeals
interpretation of what could be applied to a four-way lot split.
He said that interpretation deals only with conditions that are
necessary to protect the four proposed residential lots from
flooding. He said based on that, the Public Works Director had
recommended the requirement would be fulfilled by Condition No.6.
The City Attorney said the applicants had written a letter
requesting that the matter be continued because their attorney was
out of the country and their client was not able to be at this
meeting. He said it is up to the council as to whether or not to
continue the matter. .
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.
MIKE LEES of 610 Myrtle said he was against the city's
proposed drainage improvement involving the easement behind his
house. He said the easement is only six feet wide and the proposed
improvement could disturb the foundation of his home.
ELLA hONEYCUTT of 560 Oak Hill Road showed the council
photographs of 1962, 1969 and 1978 flooding in the area. She said
the photographs are from the Resource Conservation District's
official 25 year book. She said there is a history of flooding on
that property.
The City Attorney requested that the photographs be made a
part of the record.
No one further came forward to speak.
council Members said they would prefer to take any actions
concerning the Drainage Improvements conditions 1 through 5 when
the applicant could attend the meeting.
Mr. Lyon said he did not think a two-week continuance would
make a great deal of difference to the litigation going on between
the City and the applicants. He said in the letter received on
July 12, 1993, from the applicant's attorney there was a waiver of
claims for damages during the period of continuance.
It was moved by Moots/Burke, and the motion passed unanimously
to continue the pUblic hearing to July 21, 1993, at the request of
the applicant.
7.B. PUBLIC HEARING - INFORMATION REGARDING ESTABLISHMENT OF A
UTit.ITY USERS TAX OF FIVE PERCENT (~') AIID All INCREASE IN THE RATE
OF THE TRANSIENT OCCUPANCY TAX FROM SIX PERCENT (6%) TO TEN PERCENT
(lO%)
Mr. chriatiansen explained how the budget crisis had come
about. He said two years ago the city discharged 15 employees
because of the City's monetary difficulties. He said the State
takings in the last two years had included (1) 50 percent of the
vehicle fines, (2) all of the cigarette tax, (3) all of the trailer
license fees in lieu, (4) a portion of the City's gasoline tax, (5)
$311,000 in property taxes, (6) prisoner booking fees paid to the
County, and (1) three percent for property tax administration paid
to the County. He said the State has taken from the city a total
of $617,000. He said over three years that amounts to ,$1.8
mi11icfn. He said the City has not had large reserves to cover
amounts such as this.
He referred to letters the city had received from residents
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CITY COUNCIL MINUTES
JULY 13, 1993
who objected to the proposed Utility Users Tax.
Mayor Gallagher said to get to a zero budget, the Council has
proposed a five percent utility Users Tax and increasing the
Transient Occupancy from six percent to 10 percent.
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.
Speaking against the proposed taxes were RAY TROLL of 804
Covington Drivel MR. LEES I DORNAN BUTTRAK and JERRY BAKER of the
Grand Avenue Motel, 617 Grand Avenue; NICK PATEL of the Arroyo
Grande Motel, 611 El Camino RealI JANET MARTINEZ of 569 Bakeman
Lane; BURTON BAUMP of 824 Devonshire I SADIE KROVIOUS of 855
Virginia Drivel ROGER METZ of the Casa Grande Motel, 850 Oak Park
Road; EVELYN C. TALLMAN of 532 carol Plaoe (Mrs. Tallman read a
letter from LLOYD and JUNE MYERS of 516 Carol Plaoe); RUTH BOGART
of 201 N. Elml JIM DORSI of 579 Gularte Road, and BOB BOWEN of
State Farm Insurance, 708 Grand Avenue.
Points made by the above speakers included:
1. The Utility Users Tax is unfair and punitive.
2. Council should consider assessing each household and business a
fixed amount instead of adoptinq a utility Users Tax.
3. More city services should be reduced instead of the proposed
taxes.
4. Tourists will stay in motels in Pismo Beach rather than pay the
proposed 10 percent Transient OCcupancy Tax in Arroyo Grande.
5. Motel business in the city is already down 20 percent and the
Transient Occupancy Tax will hurt it even more.
6. Residents of Arroyo Grande are already suffering economically
from deoreases in Medicare and other services, and are expecting
new ta~.s from the federal government.
7. There should be no new taxes but only increases on taxes that
are already being applied.
8. The Utility Users Tax should be evaluated every year, and any
monies that become available to the city should replace the tax.
9. Increased Transient Occupanoy Taxes do not inorease City
revenues because fewer people will stay at the motels.
10. When the utility rates increase, the tax amounts also will
increase.
11- There should be provisions made for those who are on low
incomes.
12. City staff should be cut, certain buildings and land should be
sold, the Planning Department eliminated, and other city services
cut before taxes are increased.
MRS. HONEYCUTT replied to the remarks about eliminating the
city's Planning Department and said there were many problems in the
days before the city was able to hire a professional planner. She
said because of complex laws, the state would be running the city
if there was no Planning Department.
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CITY COUNCIL MINUTES
JULY 13, 1993
When no one further came forward to speak, Mayor Gallagher
said the Public Hearing would be continued to the regular Council
meeting of July 27, 1993.
B.A. REOUEST OF DAN PACE FOR RELIEF OF SEWER FEES FOR PROPERTY
LOCATED AT 527 LOS OLIVOS LANE (SIHGLE~FAMILY DWELLING)
Hr. Christiansen referred to the July 7, 1993, Staff Report of
the pUblic Works Director, who redo_ended that the Council
authorize staff to adjust the acreage component of the sewer
connection fee for the subject projeot to the equivalent of ~
15,000 square foot area. Hr. Christiansen said the requeet for
relief ot sewer fees is reasonable since the proposed single family
residence would oocupy a portion of a presently undeveloped 16-acre
parcel zoned agriculture.
It was moved by Burke/Brandy, and the motion passed
unanimously to follow the staft recommendation.
B.B. RESOLUTION ESTABLISHING P~ING PENALTIES AND A PENALTY FOR
LATE PAYMENT
Hr. Christiansen referred to the June 30, 1993, Staft Report
ot Police Commander Andrews, who recommended that the Counoil
approve a Resolution establishing parking penalties, late payment
penalties and other administrative oharges. He said all parking
violations have been decriminalized by the state and it is
necessary for the City to adopt its own penalties.
Council Members discussed raising sOllie of the penalties higher
than those proposea in the Resolution. council Member Brandy
pointed out that if the Arroyo Grande and Grover Beach Police
Departments share services, penalties would have to be coordinated
so there would be consistent applioation. Commander Andrews
agreed and said he would return to the Council with the proposed
penalties at the first meeting in september, 1993.
B.C. DIRECT PlANNING CONMIS~IO~ TO CONSIDER HEIGHT LIMITS IN THE
GENERAL ~EA BOUNDED BY COURTLAND STREET. NEWPORT loVENUE. NO~TH ELM
STREET. AN\) NORTHERLY Or GRAND AVENUI; BETWeEN COURTLAND STReET AND
NORTij ELM STttEET
Council Member Burke said he lIIay have a conflict of interest
in this matter and left the room.
Mr. Christiansen recommended that the council direct the
Planning commission to consider height limits as outlined on the
map included in the Agenda packet. He said the issue revolves
around the viewshed problems the city had been experienoing in the
last couple of years. He said possibly by reducing height limits,
that presently exist at 30 feet to something less, citizen CQncerns
may be alleviated.
counoil Member Moots suggested that the boundary on the map be
expanded to include upper Montego street.
Council Members agreed with the city Manager's and Council
Member Moots' reoommendations and directed the Planning COlllmission
to consider the height limit, in the suggested area.
e.D.AGREEMENT WITH COUN~Y OF SAN LUIS OBISPO CONCERNING THE "FIVE
ACRES" OF PROPERTY LOCATEQ ON WEST BRANCH STREET
Mr. Christiansen said after several years of hard work
espeoially by Supervisor Ruth Brackett, the City finally has an
agreement concerning the "Five Acres" that is acceptable to all
parties. He reoommended that the agreement be approved and the
Council establish a policy that the "Five Aores" be set aside for
a YMCA.
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CITY COUNCIL MINUTES
JULY 13, 1993
Council Members discussed whether or not to designate the YMCA
for the site or to simply approve the proposed agreement, which
they said was general in nature.
It was moved by Moots/Burke, and the motion passed unanimously
to approve the agreement between the city of Arroyo Grande and the
County of San Luis Obispo, including Exhibits "A" and "B." (The
agreement inoluded the relaxing of the deed restriction on Parcel
1 and providing the county the ability to conclude a lot line
adjustment on Parcel c.)
8.E. REOUEST OF PLANNING COMMISSION FOR A JOINT MEETI~G WITH
COUNCIL ON AUGUST 3. 1993, AT 6:30 P.M.. TO DISCUSS COUNTYWIDE
TRANSFER OF DEVELOPMENT CREDITS VIA AGRICULTURAL PROPERTY. AlfD
DISCUSSION OF OFP-SITE MITIGATION PROGRAMS PER RANCHO GRANDE
CONDITIONS OF APPROVAL
Council Members agreed to the joint meeting, but requested
information on the complicated subjects to be discussed at the
meeting.
Hr. Christiansen said the Planning Commission would be seeking
direction from the Council on the subjects.
8.F. RESOLUTION AGREEING TlV-T THE ALTERNATIVE METHOD OF
DISTRIBUTION OF PROPERTY TAX LEVIES AND ASSESSMENTS BE APPLICABLE
TO TAX LEVIES MADE BY THE COUNTY OF SAN LUIS OBISPO ON 81!:HAI,F OF
THE CITY OF ARROYO GRANDE
Mr. Christiansen described an alternate method of County
distribution and colleotion of property taxes for the city. He
said the County would collect the taxes and retain all levies and
penalties. He said the City would reoeive a one-time windfall of
$227,000. He said the city would learn within two months what the
benefits to the city would be if it subscribed to the program. He
said the city could withdraw from the program in september, 1993.
There were Council questions and discussion. Council Members
decided to approve a resolution agreeing to the alternative
program, but to accompany the resolution with a letter stating that
the City may want to withdraw.
It was moved by Burke/Brandy (4-0-1, Burke, Brandl' Moots and
Gallagher voting aye, Souza absent) to approve Resolut on No. 2995
Agreeing That the Alternative Method of Distribution of Property
Tax Levies and Assessments be Applicable to Tax Levies Made by the
County of San Luis Obispo on Behalf of the city of Arroyo Grande.
The Council also voted to send a letter to the County stating that
the City retains the option to withdraw from the program.
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9. WRITTEN COMMUNICATIONS
Mayor'Gallagher congratulated the Police Department K-9 Unit
for winning gold and bronze medals in the statewide Police
Olympics. It was pointed out that Arroro Grande's unit was
competing against units from large cities I ke Sacramento and Los
Angeles.
10. ORAL COMMUNICATIONS
council Member Brandy suggested looking into increasing the
business license tax and perhaps decreasing the proposed Utility
Users Tax or the Transient ocoupancy Tax. Council directed Staff
to figure how much revenue would be raised if this were done.
11. CLOSED SESSION
None.
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12. ADJOURNMI:;NT
It was moved by Brandy/Burke, and the motion passed
unanimously to adjourn the meeting at 9:30 P.M.
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ATTEST. ~! a. ~ '-, "
NANCY A ,DAVIS, CITY CLERI<