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Agenda Packet 2007-06-26 CITY OF City Council � " � ' � � ' Agenda .;� Tony Ferrara Mayor Steven Adams City Manager Ed Arnold Mayor Pro Tem Timothy J. Carmel City Attorney Joe Costello Council Member 3�, Kelly Wetmore Ciry Clerk 'V�;r CALIFORNIA �. Jim Guthrie Council Member � g Chuck Fellows Council Member - AGENDA SUMMARY CITY COUNCIL/REDEVELOPMENT AGENCY MEETING TUESDAY, JUNE 26, 2007 7:00 P.M. Arroyo Grande City Council Chambers 215 East Branch Street, Arroyo Grande 7. CALL TO ORDER: 7:00 P.M. 2. ROLL CALL: COUNCIL/RDA 3. FLAG SALUTE: CENTRAL COAST MASONIC LODGE #237 4. INVOCATION: PASTOR ROBERT BANKER OPEN DOOR CHURCH, OCEANO 5. SPECIAL PRESENTATIONS: None. 6. AGENDA REVIEW: 6a. Move that all ordinances presented for introduction or adoption be read in title only and all further readings be waived. AGENDA SUMMARY— JUNE 26, 2007 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 member of the public who wishes to comment on any Consent Agenda item may do so at this time. Any Council Member may request that any item be withdrawn from the Consent Agenda to permit discussion or change the recommended course of action.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 (KRAETSCH) Recommended Action: Ratify the listing of cash disbursements for the period June 1, 2007 through June 15, 2007. 8.b. Consideration of Statement of Investment Deposits (KRAETSCH) Recommended Action: Receive and file the report of current investment deposits as of May 31, 2007. 8.c. Consideration of Approval of Minutes (WETMORE) Recommended Action: Approve the minutes of the Regular City Council/Redevelopment Agency meeting of May 22, 2007, the Special City Councii/Redevelopment Agency meeting of May 29, 2007, the Special City Council Meeting of June 12, 2007, and the Regular City Council/Redevelopment Agency meeting of June 12, 2007, as submitted. 8.d. Consideration of Appropriation of Funds for Internal Revenue Service (IRS) Costs (KRAETSCH) Recommended Action: Appropriate $21,341 from the General Fund, $2,992 from the Street Fund, and $4,151 from the Water Fund, and $4,151 from the Sewer Fund for Internal Revenue Services (IRS) costs associated with the IRS audit for calendar year2004. AGENDA SUMMARY—JUNE 26, 2007 PAGE 3 8. CONSENT AGENDA (conYd): 8.e. Consideration of Aqproval of Revised Aqreement For Manaqement Administrative and Traininq Services with the Citv of Grover Beach (HUBERT) Recommended Action: Approve the revised Agreement for Management, Administrative and Training Services and authorize the Mayor to execute the Agreement. 8.f. Consideration of Approval of Lease Aqreement for Public Parkinq Area (STRONG) Recommended Action: Approve and authorize the Mayor to execute a Lease Agreement between the City and Howard and Aileen Mankins and Blair and Mark Mankins for lease of certain parking areas on the north side of East Branch Street for public off-street parking. 8.g. Consideration of Adoption of Ordinance Amendina Portions of Arrovo Grande Municipal Code Chapters 16.04 and 16.44 of Title 16 to Implement Creek Setback Standards (Development Code Amendment 07-003) (STRONG) Recommended Action: Adopt an Ordinance amending portions of Chapters 16.04 and 16.44 of Title 16 of the Arroyo Grande Municipal Code, implementing creek setback standards for all creeks in the City of Arroyo Grande. 8.h. Consideration of Grease Control Proqram and Interaqencv Aqreement with the South San Luis Obispo Countv Sanitation District (SSLOCSD) (SPAGNOLO) Recommended Action: 1) Request the SSLOCSD assist in coordinating a Grease Control Program for all food service facilities located within the City; 2) Approve an Interagency Agreement; and 3) Authorize the Mayor to execute the Agreement. 9. PUBLIC HEARINGS: 9.a. Consideration of Utilitv Rate Increases and Adoption of Resolutions Establishinq Water, Sewer, and Lopez Water Rates and Charqes (KRAETSCH) Recommended Action: 1) Adopt Resolution establishing water rates and charges; 2) Adopt Resolution establishing sewer rates and charges; and 3) adopt Resolution establishing the amount of Lopez Contract charges. 9.b. Consideration of Exclusive Neqotiatinq Aqreement with South Vallev Developers for Purchase and Hotel Develoament at the Vacant Parcel Owned bv the Redevelopment Actencv Located at Faeh Street and EI Camino Real (ADAMS) [COUNCIL/RDA] Recommended Action: Approve the proposed Exclusive Negotiating Agreement with South Valley Developers for purchase and development of a hotel at the vacant parcel owned by the Redevelopment Agency at Faeh Street and EI Camino Real. 10. CONTINUED BUSINESS: None. AGENDA SUMMARY —JUNE 26, 2007 PAGE 4 11. NEW BUSINESS: 11.a. Consideration of a Center Left Turn Lane on East Grand Avenue Between Halcvon Road and EI Camino Real (SPAGNOLO) Recommended Action: The Traffic Commission recommends the City Council approve Option A for the proposed striping revisions on East Grand Avenue between Halcyon Road and EI Camino Real for a center left turn lane. 12. CITY COUNCIL REPORTS: This item gives the Mayor and Council Members the opportunity to present reports to the other members regarding committees, commissions, boards, or special projects on which they may be participating. (a) MAYOR TONY FERRARA: (1) San Luis Obispo Council of Governments/San Luis Obispo Regional Transit Authority (SLOCOG/SLORTA) (2) South San Luis Obispo County Sanitation District (SSLOCSD) (3) Other (b) MAYOR PRO TEM ED ARNOLD: (1) Integrated Waste Management Authority Board (IWMA) (2) Economic Vitality Corporation (EVC) (3) Other (c) COUNCIL MEMBER JOE COSTELLO: (1) Zone 3 Water Advisory Board (2) Air Pollution Control District (APCD) (3) Fire Oversight Committee (4) Fire Consolidation Oversight Committee (5) Other (d) COUNCIL MEMBER JIM GUTHRIE: (1) South County Area Transit (SCAT) (2) California Joint Powers Insurance Authority (CJPIA) (3) Other (e) COUNCIL MEMBER CHUCK FELLOWS: (1) South County Youth Coalition (2) County Water Resources Advisory Committee (WRAC) (3) Other 13. 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. a. Request to Appeai approval of Plot Plan Review Case No. 06-009 to remove an existing house and accessory structure and construct a new home and garage at 795 East Cherry Avenue (GUTHRIE) AGENDA SUMMARY — JUNE 26, 2007 PAGE 5 14. CITY 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. a. None. 15. COUNCIL COMMUNICATIONS: Correspondence/Comments as presented by the City Councii. 16. STAFF COMMUNICATIONS: Correspondence/Comments as presented by the City Manager. 17. 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. 18. ADJOURNMENT .,..<.................... This agenda was prepared and posted pursuant to Government Code Section 54954.2. Agenda reports can be accessed and downloaded from the City's website at www.arrovoqrande.orq .............:«......._.. All staff reports or other written documentation relating to each item of business referred to on the agenda are on file in the City Clerk's office 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. ...................x...... City Council/Redevelopment Agency Meetings are cablecast live and videotaped for replay on Arroyo Grande's Government Access Channel 20. The rebroadcast schedule is published at www.slo-span.orq. ___ _ pRROY� H■a■ O� c,P � INCOR�ORATED y2 U � "' MEMORANDUM � JUIY 10. 1911 * c4��FORN�P TO: CITY COUNCIL FROM: ANGELA KRAETSCH, DIRECTOR OF FINANCIAL SERVICE BY: FRANCES R. HEAD, ACCOUNTING SUPERVISO� SUBJECT: CASH DISBURSEMENT RATIFICATION DATE: JUNE 26, 2007 RECOMMENDATION: It is recommended the City Council ratify the attached listing of cash disbursements for the period June 1 through June 15, 2007. FUNDING: There is a $854,322.64 fiscal impact that includes the following items: • Accounts Payable Checks 131588-131893 $ 396,066.27 • Payroll Checks & Benefit Checks $ 458,256.37 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. 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: Attachment 1—June 1, 2007-June 15, 2007, Accounts Payable Check Register Attachment 2— June 8, 2007, Payroll Checks & Benefit Checks Register ATTACHMENTI apCkHist Check History Listing Page: 1 O6H812007 70:28AM CITY OF ARROYO GRANDE Bankcode: boa Check# Date Vendor SWtus ClearNoid Date Invoice Inv.Date Amount Paid Check ToWi 131588 06/01/2007 000038 AG CNAMBER OF 053107 05/31/2007 100.00 100.00 131589 O6/0112007 001259 AGP VIDEO, INC 2239 05/09/2007 2,917.50 2199 04I09/2007 16•�6 2,933.66 131590 06/01/2007 003745 ARROWHEAD SCiENTIFIC, 27716 04127/2007 303.72 27679 05/07/2007 110.66 414.38 131591 06I01/2007 000042 ARROYO GRANDE F�OWER 37918 04/30/2007 56.03 56.03 131592 06/01/2007 005507 AT 8 T 5/8-9867 O5/OS/2007 77.85 5/7-7480 05/07/2007 67.23 145.08 131593 06/01/2007 005615AT&T/MCI T6433515 05/14I2007 1,644.97 T6433513 05I04I2007 1,01222 T6433525 OS/04/2007 88.94 T6407269 04/30/2007 $�•$8 T6433503 05/04/2007 35.49 T6423882 05/01/2007 31.68 T6433508 05/04/2007 »�82 2,919.00 131594 06/01/2007 001055 AVCO FIRE EXTINGUISHER 12882 05115/2007 48.83 48.83 131595 06/01/2007 000069 BAUER COMPRESSORS, INC 94461 05/24/2007 375.38 375.38 131596 O6/01/2007 001917 BOB'S EXPRESS WASH APRIL 2007 05/31/2007 356.00 356.00 131597 06/01/2007 003453 BOUND TREE MEDICAL, LLC 50481253 05/11/2007 72.00 72.00 131598 06I01/2007 000087 BREZDEN PEST CONTROL, 70144 05/17/2007 77.00 77.00 131599 06/01/2007 000090 BRISCO MILL& LUMBER 132948 04/24/2007 26.79 133354 05/25I2007 21.51 133337 05/25/2007 6.98 133377 05/30/2007 5•7� 60.98 131600 06/01/2007 001577 BURDINE PRINTING(DBA) 6070 04/23/2007 142.01 142.01 131601 O6/01/2007 000110 CA ST DEPT OF 6784 05/17I2007 2,510.82 2,510.82 Page: 1 apCkHist Check History Listing Page: 2 0611812007 10:28AM CITY OF ARROYO GRANDE Bank code: boa Check# Date Vendor Status ClearNoid Date Invoice Inv.Date Amount Paid Check Total 131602 06I01/2007 005843 CALIFORNIA 5631355 04/28/2007 62.78 5646134 05/05I2007 �5��� 78.55 131603 06I01/2007 000603 CARQUEST AUTO PARTS 166679 05/29/2007 65.8t 164852 05/21/2007 60.78 165784 05124/2007 18.73 7314-165388 05123/2007 3.20 148.52 131604 06/01/2007 005255 CBC INNOVIS, INC 7119003470 04/30/2007 10.00 10.00 131605 06/01I2007 000157 CENTRAL VALLEY 122682 04/25/2007 142.00 142.00 131606 06/01/2007 006039 CHEVRON &TEXAGO CARD 7898072884705 05/04/2007 358.98 358.98 131607 06/01/2007 003599 COMMERCIAL SANITARY 10506 05/10/2007 117.45 10511 05/15/2007 3z•2z t49.67 131608 06/01/2007 001694 SHAWN COSGROVE 052307 05/23I2007 218.00 218.00 131609 06/01/2007 000192 CROCKER'S LOCKERS(DBA) UNIT E24 05/17I2007 200.00 200.00 131610 06/01/2007 003227 SHANE DAY 050907 OS/09I2007 58.00 58.00 131611 06/01I2007 001854 JIM DECECCO 053007 OS/30I2007 40.00 40.00 131612 06I01/2007 001840 DE�L MARKETING LP XC1 FR5856 05/22I2007 226.26 226.26 131613 06/01/2007 000208 J B DEWAR, INC 930536 04/30/2007 51.25 931986 05/16/2007 49��� 100.96 131614 O6/01I2007 000234 ENTENMANN-ROVIN 0029621-IN 05/11I2007 279.29 279.29 131615 06/01I2007 005531 EXECUTIVE INFORMATION 6134 07/01I2007 10,000.00 10,000.00 131616 06/01/2007 004164 FEDEX 2-045-71989 05/18I2007 26.86 26.86 131617 O6/01/2007 001525 FERGUSON ENTERPRISES, 1306065 05/16/2007 475.90 475.90 131618 O6/01/2007 000262 FRANK'S LOCK& KEY 25336 05/07/2007 71.47 25381 05/21/2007 5�39 76.86 131619 06/01/2007 001718 GOLDSTAR PRODUCTS, INC 0015964-0029641 05/31I2007 794.09 794.09 Page: 2 apCkHist Check History Listing Page: 3 06/1812007 10:28AM CITY OF ARROYO GRANDE Bank code: boa Check# Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total 131620 06/01/2007 001237 HANSON AGGREGATES INC 837872 05/09/2007 538.40 538.40 131621 06/01/2007 004188 EDDIE HARRIS 053007 05/30/2007 60.00 60.00 131622 06/01/2007 005456 JOHNATHAN HURST 053107 05/31/2007 148.43 148.43 131623 06/01/2007 003730 INDUSTRIAL TOOL BOX 29853 05/21/2007 152.90 152.90 131624 06/01I2007 000345 J J'S FOOD COMPANY, INC 158925 OS/24/2007 31.65 31.65 131625 06/01/2007 000348 J W ENTERPRISES 200207 05124/2007 85.00 85.00 131626 O6/01/2007 000413 LAW OFFICES OF JONES& 36841 05IO2/2007 971.25 971.25 131627 06/01/2007 003949 KERN'S PAPER 20974 05/08/2007 399.96 21048 05/17/2007 224.93 624.89 131628 06/01/2007 004845 JOHN LARSON 053007 05/31/2007 60.00 60.00 131629 06/01/2007 000383 LIEBERT, CASSIDY, 74852 03/16/2007 3,000.00 3,000.00 131630 06l01/2007 005511 CHRISTOPHER LINTNER 053007 05/30/2007 16.00 16.00 131631 06/01/2007 001136 DOUG LINTNER 053007 05I30/2007 40.00 40.00 131632 06/01/2007 006160 METAL SPINNING TARGETS 2497 05/02/2007 873.48 873.48 131633 06/01/2007 000419 MIDAS AUTO SERVICE 17804 05/10/2007 36.58 36.58 � 131634 06/01/2007 000429 MINER'S ACE HARDWARE, 204106 05/04I2007 80.78 205621 05116/2007 62.40 205283 05114/2007 48•27 205461 05115/2007 33.29 904203 05I04/2007 29.07 204480 05/OS/2007 zs.$$ 204955 05/11/2007 24•77 206266 05121/2007 23.81 205584 05/16/2007 23.47 204390 OS/07/2007 22.56 206461 05/22/2007 20.43 201922 04/18/2007 18.04 Page: 3 apCkHist Check History Listing Page: 4 06/18/2007 10:28AM CITY OF ARROYO GRANDE Bank code: boa Check# Date Vendor SWtus ClearNoid Date Invoice Inv.Date Amount Paid Check 7otal 204855 05I10/2007 ��•Z3 207385 OS/29/2007 13.60 205096 05/12/2007 �2�9� 205017 05/11/2007 96� 206618 05/23I2007 ��93 207167 05/27/2007 � �� 204857 05/10/2007 7.46 204350 05/07/2007 �•22 497.50 131635 06/01/2007 005869 MURRAY�ASSOC, BOB 2489 05118/2007 11,324.37 11,324.37 131636 06/01/2007 000444 MUSTANG TREE CARE 401 OS/14/2007 552.50 552.50 131637 06/01/2007 004338 NATIVE SONS NURSERY, INC 71899 03I30/2007 112.83 112.83 131638 06/01/2007 002174 NOSSAMAN, GUTHNER. 208350 05/07/2007 4,839.83 4,839.83 131639 06/01/2007 000468 OFFICE DEPOT 386873324001 05/18/2007 154.60 387000186-001 05/18/2007 50.37 387085155-001 05/18/2007 50.02 386054315-001 05/11/2007 43.52 385935163-001 05/11/2007 36.83 386063104-001 05/11/2007 29��� 387549716-001 05/18I2007 z4.Z0 388.61 131640 06I01/2007 000481 PACIFIC GAS& ELECTRIC 7046898208 05/25/2007 56.40 56.40 131641 06I01/2007 000490 PERVO PAINT CO 46067 05/21I2007 9,826.59 9,826.59 131642 06/01/2007 000492 PETiY CASH PETTY CASH-PD 05/31/2007 343.77 343.77 131643 06/01I2007 004158 PHOENIX GROUP 42007157 05/18/2007 110.50 110.50 ' 131644 06/01/2007 000520 QUINN COMPANY 030015581 05/14I2007 755.58 755.58 131645 06/01/2007 000523 R&T EMBROIDERY, INC 31096 03/13I2007 48.76 48.76 131646 O6I01/2007 000531 RICHETTI COMPLETE WATER 51998 05/01/2007 15.00 15.00 131647 06/01/2007 003649 CHARLES D(DON)RUIZ 053007 05/30/2007 56.00 56.00 ' 131648 06/01/2007 002932 RUTAN &TUCKER, LLP 502359 05/14/2007 620.57 620.57 Page:4 apckHist Check History Listing Page: 5 ... 06118/2007 10:28AM CITY OF ARROYO GRANDE Bankcode: boa Check# Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total '�� 131649 06/01/2007 000575 SANTA MARIA TIRE, INC 542428 05/03/2007 465.38 465.38 I 131650 06I01/2007 000578 ANGELITA ANN SARMIENTO 053007 05/30/2007 32.00 32.00 131651 06/01/2007 006080 MARTINA SARMIENTO 053007 05/30/2007 16.00 16.00 131652 06/01/2007 003024 MARK SCHAFFER 053007 05/30/2007 80.00 80.00 131653 06/01/2007 003838 SILVAS OIL COMPANY, INC 803365 05/15/2007 25,896.24 25,896.24 131654 06/01/2007 000731 SLO COUNTY SHERIFF'S 051507 05/15/2007 19,489.50 19,489.50 131655 06/01/2007 006096 SLO COUNTY SHERIFF- APRIL 2007 05/31/2007 62.00 62.00 131656 06/01I2007 004560 TAMMY SMITH 053007 OSI30/2007 64.00 64.00 131657 06/01I2007 000609 BOB SPEAR 053007 OS/30/2007 40.00 40.00 131658 06/01I2007 000613 STATEWIDE SAFEN& 54708 OS/17/2007 473.88 54707 05/17/2007 13�•92 54820 05/23/2007 76.25 682.05 ' 131659 06/01/2007 000620 STREATOR PIPE & SUPPLY 1042596 05/22/2007 353.54 353.54 131660 O6/01/2007 006161 MAX TORRES 053007 05I30/2007 19.95 19.95 131661 06/01/2007 004233 TRI COUNTY OFFICE FURN, 27335-2535 04/27/2007 618.81 618.81 131662 O6/01/2007 000666 UNITED RENTALS 65032007 05/17/2007 277.62 65101041-001 05/17/2007 43.30 32p,g2 131663 O6/01/2007 000677 PEGGY VALKO 052207 05/22/2007 196.80 196.80 131664 O6/01/2007 002137 VERIZON WIRELESS 0551751268 05/07/2007 487.36 j 0550882222 05/04/2007 300.44 551861157 05/31I2007 45.61 0551698108 05/23/2007 37.56 0552079733 05/23/2007 32.57 903.54 ' 131665 06/01/2007 004166 WELLS FARGO BANK 338087 I 05/18/2007 3,800.00 3,800.00 131666 O6/01/2007 000689 WEST PAYMENT CENTER 813718015 05/20/2007 19.25 1925 Page: 5 apCkHist Check History Listing Paye: s ' 0611812007 10:28AM � CITY OF ARROYO GRANDE Bank code: boa � , Check# Date Vendor Status ClearNoid Date Invoice Im.Date Amount Paid Check Total � 131675 O6I04/2007 006163 DESTINATION IMAGINATION. 041107 04/11/2007 500.00 500.00 � 131676 06/05I2007 004967 RYAN BIRD 060507 O6l05/2007 30.00 30.00 131677 06/05/2007 000085 CARL BRANDT 060507 06/05/2007 30.00 30.00 131678 O6/05/2007 004680 ROBERT CHILD 060507 06/05/2007 30.00 30.00 131679 O6/05I2007 004046 MATTHEW DI SALVO 060507 O6/05/2007 30.00 30.00 131680 06/05I2007 006158 PAUL FORDYCE 060507 06/05/2007 10.00 10.00 131681 06/05/2007 001066 SEAN F HAGERTY 060507 06/05/2007 30.00 30.00 131682 06/05/2007 004969 JOHN KING 060507 06/05/2007 30.00 30.00 131683 06/05/2007 005583 GEORGE LEPPER 060507 06/05/2007 30.00 30.00 131684 O6/05/2007 003163 KEVIN J MC LEAN 060507 06/05/2007 30.00 30.00 131685 06/05/2007 004899 MATTHEW MIHLHAUSER 060507 06/05/2007 30.00 30.00 131686 06/05/2007 000445 DAVID NACCARATI 060507 06/05/2007 30.00 30.00 131687 06/05I2007 005932 MARK NIE�SEIV 060507 06/05/2007 20.00 20.00 131688 06/05/2007 000474 RANDY L OUIMETTE 060507 06/05/2007 30.00 30.00 131689 O6/05I2007 000481 PACIFIC GAS&ELECTRIC 5/21-194097 05/21/2007 15,318.76 15,318.76 131690 06/05I2007 001073 MATTHEW J PA�M 060507 O6/05/2007 30.00 30.00 131691 06/05I2007 003265 PLATINUM PLUS FOR 5/20-6263 05/20/2007 1,513.02 5/20-6305 05/20/2007 1,256.06 5/20-4383 05/20/2007 469.65 5/20-6313 05/20/2007 342.05 5/20-7615 05/20/2007 150.00 5/20-6289 05/20/2007 130.08 � 5/20-9686 05/20/2007 41.34 5/20-4015 05/20/2007 20.62 � 5/20-6362 05/20/2007 �z��� 3,934.82 � 131692 O6/05I2007 002246 JEROME H SCHULTZ 060507 06/05/2007 20.00 20.00 Page: 6 apCkHist Check History Listing Page: 7 O6/18/2007 10:28AM CITY OF ARROYO GRANDE Bank code: boa Check# Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check ToWI 131693 O6/05/2007 005582 JOEL SHENNUM 060507 O6/OS/2007 30.00 30.00 131694 O6/05/2007 000594 JEFF D SILVA 060507 O6/05/2007 30.00 30.00 131695 06/05/2007 000595 JOE A SILVA, SR 060507 06I05/2007 30.00 30.00 � 131696 06/05/2007 000618 DANIEI T STOCKS 060507 06/05/2007 30.00 30.00 131697 06/05/2007 004045 STEVE TALLANT 060507 06/05/2007 30.00 30.00 131698 06l05/2007 Q05329 JASON VASQUEZ 060507 06/05/2007 15.00 15.00 131699 06/05/2007 004548 CARMEL&NACCASHA, LLP 10858/10859 06/04/2007 16,208.95 16,208.95 131700 06/O6/2007 006168 TRICIA ALFARO Ref000077368 06/01/2007 29.71 29.71 131701 06/O6/2007 006164 SHELLEY HARPER Ref000077364 06/01/2007 36.22 3622 131702 06/O6/2007 006167 APRIL MACLEAN Ref000077367 06/01/2007 22.64 22.64 131703 06/O6/2007 006169 KENNETH OWEN Ref000077369 06/01/2007 43.74 43.74 131704 06/06/2007006165TIMOTHYSARGENT Ref000071365 06/01/2007 119.85 119.85 131705 06/06/2007 006170 DANIEL SERRATO Ref000077370 06/01/2007 1.81 1.81 131706 06/06/2007 006166 JENNIFER THOMPSON Ref000077366 06/01/2007 123.08 123.08 131707 O6/08/2007 000822 US POSTMASTER 060307 06/03/2007 1,435.82 1,435.82 131709 06/08/2007 000010 AFSS 060107 06/01/2007 50.00 50.00 131710 O6/08/2007 002354 MARGARET APODACA 060407 06/04/2007 30.00 30.00 131711 O6/08/2007 005615 AT&T/MCI T6548058 05/08/2007 30.92 30.92 131712 O6/08/2007 006178 CHRIE BARNES 060407 06/04/2007 30.00 30.00 131713 06/08/2007 000078 BLUEPRINT EXPRESS(DBA) 30084 05/01/2007 5.39 5.39 131714 06/OS/2007 003734 ADRIAN BORJA 060407 06/04/2007 415.00 415.00 131715 06/08/2007 000090 BRISCO MILL& LUMBER 133386 05/31/2007 108.03 133194 05/11/2007 13.01 Page: 7 apCkHist Check History Listing Page: 8 06I7812007 10:28AM CITY OF ARROYO GRANDE Bank code: boa Check# Date Vendor Status CleadVoid Date Invoice Inv.Date Amount Paid Check ToWI � - ; 133443 06/05I2007 9�6� 130.71 131716 O6/08/2007 001577 BURDINE PRINTING(DBA) 6177 05/28/2007 718.64 718.64 131717 O6/OS/2007 000095 BURKE AND PACE OF AG, 2344155 05/03/2007 224.13 224.13 131718 06/08/2007 006172 CALIFORNIA CENTRAL 060407 06/04/2007 135.25 135.25 131719 06/08/2007 000107 CALIFORNIA FIRE CHIEFS 060107 06/O6/2007 150.00 150.00 131720 06/08/2007 000603 CARQUEST AUTO PARTS 168051 O6/04/2007 81.43 163524 05/15/2007 28.48 7314-166622 05/29/2007 9.�3 118.94 131721 06/08/2007 001314 CDF/STATE FIRE TRAtNING 053107 05/31/2007 30.00 30.00 131722 06/08/2007 003168 CELLULAR ONE 01459 05/31/2007 154.36 154.36 131723 06/08/2007 006174 CENTURY 21 HOMETOWN 060407 06/04/2007 30.00 30.00 131724 06/OS/2007 000168 CITY NATIONAL BANK 050107 05/01/2007 19,283.12 19,283.12 131725 06/08/2007 004169 COAST ELECTRONICS 13675 06/03/2007 3,196.94 10128590 03/13I2007 2,z45.82 5,442.76 131726 06/08/2007 000174 COASTLINE 4911275 05/18/2007 309.51 309.51 131727 06/OS/2007 000178 COLD CANYON LANDFILL, 260756 05131/2007 53.00 260501 05137/2007 29.00 82.00 131728 06/08/2007 004952 COLLINGS&ASSOCIATES 12327 06/04/2007 300.00 300.00 131729 06/OS/2007 005997 COOK PAGING INC 6732345 O6/01/2007 71.60 71.60 131730 06/08/2007 000196 CUESTA EQUIPMENT CO INC 335394 05/29/2007 52.54 52.54 131731 06/08/2007 001854 JIM DECECCO 060507 06/05/2007 20.00 20.00 131732 06/08/2007 000208 J B DEWAR, INC 933424 05/31/2007 266.90 � 933427 05131/2007 114.06 159745 05/25/2007 25.74 406.70 131733 O6/08/2007 004610 ECMS INC 104346-00 05/11/2007 325.47 325.47 Page: S I apCkHist Check History Listing Page: 9 � 06H812007 10:28AM CITY OF ARROYO GRANDE Bank code: boa '� Check# Date Vendor SWtus ClearNoid Date Invoice Inv. Date Amount Paid Check ToWI 131734 O6I08/2007 001525 FERGUSON ENTERPRISES, 1312152 05/25/2007 37.12 37.12 131735 06/08/2007 003094 WONNE FISHER 060507 06/05/2007 101.18 101.18 ' 131736 06/08/2007 000262 FRANK'S LOCK& KEY 25335 05/07/2007 85.00 85.00 131737 06/OSI2007 006177 GOSPEL LIGHTHOUSE 060407 O6/04/2007 30.00 30.00 131738 06/0812007 000288 CITY OF GROVER BEACH 053107 05/31/2007 18421 184.21 131739 O6/OS/2007 006185 VERA HAGLER 060407 O6I04/2007 30.00 30.00 131740 06/08/2007 000943 NANCY HAGLUND 052607 05126/2007 66.90 66.90 131741 06/08/2007 006173 CAROL HANCOCK 060407 06/04/2007 70.00 70.00 131742 06/0812007 004188 EDDIE HARRIS 060507 06/OS/2007 120.00 120.00 131743 O6/08/2007 006179 COURTNEY HERNANDEZ 060407 O6/04/2007 30.00 30.00 131744 O6/08/2007 000307 BOB HICKS TURF 25449 05/21/2007 151.73 , 25443 05/18/2007 49.60 201.33 131745 O6I08/2007 006183 KATHY HOLMES 060407 06/04/2007 30.00 30.00 131746 06/08/2007 006060 MICHAEL HUBERT 060707 06/07/2007 1723 17.23 131747 06/08/2007 002820 INDOFF, INC 968611 05/10/2007 628.23 971655 05/15/2007 65•9� 694.14 131748 O6/08I2007 000345 J J'S FOOD COMPANY, INC 157985 06/04/2007 79.90 79.90 131749 06/08I2007 004829 DR. MICHAEL E. JACOBS 051707 05/17/2007 420.00 420.00 131750 06/08/2007 005201 JAS PACIFIC INC BI 9368 O6/06/2007 6,168.00 6,168.00 �I 131751 06/08/2007 006115 JPG CONSTRUCTION INC PW 2006-05 06/06/2007 42,671.50 42,671.50 131752 06/OS/2007 005833 KERN TURF SUPPLY INC 248873 05/23/2007 56.98 56•9$ 131753 06/08/2007 001136 DOUG LINTNER 060507 06/05/2007 60.00 60.00 I 131754 06/08/2007 006184 PATRICIA MCMAHON 060407 06/04/2007 30.00 30.00 Page: 9 apCkHist Check History Listing Page: 10 O6/1812007 10:28AM CITY OF ARROYO GRANDE Bank code: boa Check# Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total 131755 06/08/2007 000419 MIDAS AUTO SERVICE 0017913 05/21/2007 95.80 95.80 131756 O6IOSI2007 000426 MIER BROS LANDSCAPE 1281Q3 05/02I2007 142.23 128041 05/01/2007 127.15 128649 05/15/2007 102.36 � 128155 05/03/2007 �8•66 450.40 131757 06/OS/2007 004899 MATTHEW MIHLHAUSER 060707 06/07/2007 790.55 790.55 131758 06/08I2007 000429 MINER'S ACE HARDWARE, 207736 05/31/2007 29.06 207614 OS/31/2007 2��9� 207442 05/30/2007 16.14 � 207479 05I30/2007 13_96 I 207012 05/25/2007 11.82 1 208139 06/04/2007 9.59 i 206604 05/23/2007 7.73 ' 206913 05/25/2007 4•98 207905 06/02/2007 4•84 119.09 131759 O6/08/2007 006180 WARREN NESS 060407 O6/04I2007 30.00 30.00 131760 06/08/2007 000464 NEWMAN TRAFFIC SIGNS, 0176613 05/21I2007 3,025.80 3,025.80 131761 06/08/2007 000468 OFFICE DEPOT 387262151-001 05/18/2007 275.65 388165240-001 05/25/2007 105.90 388376281-001 06/O6/2007 58.36 386054315-002 05/18/2007 56.23 387881401-001 OS/25/2007 56.13 387886551-001 05/25/2007 �1�85 564.12 131762 06I08/2007 005611 PAM PEACHEY 060407 06/04/2007 60.00 60.00 131763 O6/08/2007 000492 PETTY CASH PETTY CASH 06/07/2007 247.16 247.16 131764 06I08/2007 000498 PITNEY BOWES, INC 5500299881 05/21/2007 38.75 38.75 131765 06/08/2007 000520 QUINN COMPANY 030146047 05/29/2007 380.14 380.14 131766 06/OSI2007 000523 R&T EMBROIDERY, INC 30437 02/07/2007 88.64 88.64 131767 06/OS/2007 000531 RICHETTI COMPLETE WATER 52909 06/01/2007 15.23 15.23 Page: 10 , apCkHist Check History Listing Page: 11 06/18/2007 10:28AM CITY OF ARROYO GRANDE Bank code: boa Check# Date Vendor Status ClearNoid Date Invoice Inv.Date Amount Paid Check ToWI 131768 06/08/2007 006175 MALI RODRIGUEZ 060407 O6/04I2007 30.00 30.00 131769 06/OS/2007 003649 CHARLES D(DON) RUIZ 060507 06/05/2007 64.00 64.00 I 131770 06/08/2007 000538 S& L SAFETY PRODUCTS 248580 05/29/2007 150.04 150.04 � 131771 06/OS/2007 006176 SYLVIA SALINAS 060407 O6/04I2007 95.00 95.00 131772 06/08/2007 000803 SAN LUIS MAILING SERVICE 31822 06I01/2007 1,651.02 1,651.02 131773 O6/OS/2007 000575 SANTA MARIA TIRE, INC 542704 05/21/2007 798.10 798.10 i 131774 06/OSI2007 000578 ANGELITA ANN SARMIENTO 060507 O6/05I2007 24.00 24.00 131775 06/08I2007 006080 MARTINA SARMIENTO 060507 O6/05I2007 16.00 16.00 � 131776 06/08/2007 004324 THE SEIMPAINTER 0050890 05/18/2007 85.00 85.00 I 131777 O6/08/2007 006181 SHELBY SILVA 060407 O6/04/2007 30.00 30.00 ' 131778 06/08/2007 000596 SMITH & LOVELESS, WC 50050 05/25/2007 155.46 155.46 � i 131779 06I08/2007 004860 TAMMY SMITH 060507 06/05/2007 48.00 48.00 j 131780 O6I08/2007 000609 BOB SPEAR 060507 06/05/2007 40.00 40.00 131781 06/08/2007 002499 MICHELE STEARNS 052507 06/OS/2007 78.83 78.83 ' 131782 O6/OS/2007 002370 TITAN INDUSTRIAL 1019656 05/29/2007 154.46 154.46 131783 O6/08/2007 005317 TRACE ANALYTICS, INC C07-3228 05/24/2007 136.50 136.50 , 131784 06/08/2007 000669 UNION ASPHALT, INC 276628 05/23/2007 396.29 396.29 � 131785 06/08/2007 002137 VERIZON WIRELESS 0556687127 05/22/2007 103.51 0550934680 05/04/2007 64.51 168.02 131786 06/08/2007 006182 MICHAEL WEST 060407 06I04I2007 30.00 30.00 131787 O6I08/2007 006186 SHANNON WOO 060407 06/04I2007 30.00 30.00 131788 06/11I2007 006187 GAY MELODY SULLIVAN 061107 06/11/2007 200.00 200.00 131803 06/15/2007 000747 A6 VILLAGE IMPROVEMENT 060607 06/06/2007 75.00 75.00 � Page: 71 i i apCkHist Check History Listing Page: 12 06/18/2007 10:28AM CITY OF ARROYO GRANDE Bank code: boa Check# Date Vendor Status ClearNoid Date Invoice Inv.Date Amount Paid Check ToWI 131804 06/15/2007 004815 AIRGAS WEST INC 103194158 05/31/2007 2725 27.25 131805 O6/15/2007 006130 ALLIANCE READY MIX, INC 2517 05/30/2007 551.14 551.14 131806 O6/15/2007 005180 APEX OUTDOOR POW ER 28140 05/29/2007 40.19 28095 05/01/2007 34.43 28107 05/17I2007 32.33 26096 05I04/2007 27•91 28106 05117/2007 26.02 28125 05/23/2007 13.95 � 28116 05/21/2007 9��5 184.58 131807 06/15/2007 003745 ARROWHEAD SCIENT�FIC, 28082 05/24/2007 60.55 60.55 131808 06/15I2007 000043 ARROYO GRANDE GLASS& 97 04/12/2007 1,305.23 1,30523 131809 06/15/2007 005615 AT&T/MCI T6557715 06/01/2007 1,661.73 T6557713 06/01/2007 1,032.92 T6496497 05/21/2007 287.67 T6557725 06/01/2007 90.48 T6531393 05/28/2007 87•88 T6548056 05/28/2007 31.07 T6557706 O6/01/2007 30.29 T6557703 O6/01/2007 21•3� T6557708 06/01/2007 19�9� T6557707 05/11/2007 14.99 T6557702 OS/11/2007 -0.01 3,27g,2g 131810 06/15/2007 000053 B&B STEEL& SUPPLY, INC 275103 06/05/2007 644.88 644.88 131811 06/15I2007 000065 BRENDA BARROW 060607 06/O6I2007 168.56 168.56 13t812 06H5I2007 001944 BASIC CHEMICAL 15312695 05I21I2007 600.76 I 15315680 05/29/2007 436.25 1,037.01 131813 O6/15/2007 006191 HAL 8�RENEE BELCH 6/13/07 06I13I2007 275.00 275.00 131814 06/15/2007 002119 BERNARD'S H D SPECIALTY 060807 06/08/2007 457.94 060607 06/06/2007 65.00 522.94 Page: 12 apCkHist Check History Listing Page: 13 O6N8/2007 10:28AM CITY OF ARROYO GRANDE Bankcade: boa Check# Date Vendor SWtus ClearNoid Date Invoice Inv.Date Amount Paid Check Total I I131815 06115/2007 005843 CALIFORNIA 5667444 05/26/2007 63.58 5681154 06/02/2007 24.Q5 87.63 I, 131816 06I15I2007 003608 CARD INTEGRATORS CORP 0039927 05/25/2007 1,490.00 1,490.00 II 131817 O6I15I2007 000603 CARQUEST AUTO PARTS 7314-165125 05/22/2007 192.87 � 168619 06/06/2007 52.56 7314-165072 OS/22/2007 37.39 169180 06/07/2007 23.64 7314-168053 06/04/2007 �1•5� I 7314-166733 05129/2007 6.62 324.65 131818 06/15/2007 005255 CBC INNOVIS, INC 7154027063 05/31/2007 10.00 10.00 131819 06/15l2007 000157 CENTRAL VALLEY 1228442 04/30/2007 60.00 60.00 � 131520 O6/15/2007 006040 CERTIFION CORP 8822 05/31/2007 84.95 84.95 i 131821 06/15/2007 001990 CHARTER 060207 06/02/2007 194.95 194.95 131822 06/15/2007 006039 CHEVRON &TEXACO CARD 7898072884706 O6/01/2007 373.06 373.06 . 131823 06/15/2007 002407 CINGULAR WIRELESS 123079092 05/26/2007 43.87 43.87 131824 06/15/2007 003599 COMMERCIAL SANITARY 20107 O6/06/2007 639.93 639.93 131825 06/15I2007 002868 MICHELLE COTA 061407 06/14/2007 284.40 284.40 131826 06115/2007 000195 CRYSTAL SPRINGS WATER 6/5-017922 06/05/2007 46.00 6/5-018068 06/05/2007 37.25 83.25 131827 06115/2007 000196 CUESTA EQUIPMENT CO INC 335192 05/22I2007 106.65 106.65 131828 06I15I2007 000815 CUSTOM DESIGN 1707 06/O6/2007 7,731.25 7,731.25 � � 131829 06/15/2007 005671 DEATHRIAGE & CO. 6384 05125/2007 369.35 6437 O6/04/2007 99.00 468.35 131830 06/15/2007 005091 JOHN DEERE LANDSCAPES 12159281 05/25/2007 81.83 81.83 13t831 06/15/2007 005343 FRANK DIAZ CONSULTING 1031 05122/2007 630.00 630.00 i 131832 O6/15/2007 000210 DIESELRO, INC 22051 06/07/2007 559.25 Page: 13 � � apCkHist Check History Listing Page: 14 O6/18/2007 10:28AM CITY OF ARROYO GRANDE Bankcode: boa Check# Date Vendor SWtus ClearNoid Date Invoice Inv.Date Amount Paid Check Total 21936 05/23/2007 215.52 774.77 131833 06/15/2007 003057 DYNAMIC IMAGING 0016699-IN 06113/2007 1,970.27 1,970.21 131834 06/15/2007 003442 EASYLINK SERVICES CORP 07654080706 06/02/2007 20.00 20.00 131835 06/15I2007 000240 FARM SUPPLY CO 336910 05/09/2007 129.58 129.58 131836 06I15I2007 005990 FIRMA CONSULTANTS INC 2669 04/16/2007 8,500.00 8,500.00 131837 06115/2007 000262 FRANK'S LOCK& KEY 25380 05/21/2007 268.30 268.30 � 131838 06/15/2007 000605 THE GAS COMPANY 6/1-140 06/01/2007 222.82 i 6/5-200 E O6/OS/2007 61.56 6/1-211 06/01/2007 53.36 6/5-208 06/05/2007 22.9� ' 6/5-214 06I05/2007 20•48 381.19 . 131839 O6/15/2007 006189 GCCCA 061307 06/13/2007 30.00 30.00 i 131840 O6/15/2007 006192 CITY OF GOLETA 061507 06/15/2007 360.00 360.00 131841 O6/15/2007 004188 EDDIE HARRIS 061107 O6/11/2007 60.00 60.00 131842 06/15/2007 000307 BOB HICKS TURF 25502 O6/06/2007 312.73 312.73 131843 O6/15/2007 000290 HPC/EAGLE ENERGY INC 111549 06/04/2007 143.37 143.37 131844 06/15/2007 000330 INFORMATION TECH DEPT 4872 04I30/2007 30224 302.24 131845 06/15/2007 004829 DR. MICHAEL E. JACOBS 060607 06I06I2007 485.00 485.00 131846 06/15/2007 000365 LINDA KEY 060607 06/06I2007 29.28 2928 131847 06/15/2007 002653 LAW ENFORCEMENT LEGAL 061407 06/14/2007 72.50 72.50 i 131848 06115/2007 005511 CHRISTOPHER LINTNER 061107 O6/11/2007 24.00 24.00 131849 06115/2007 001136 DOUG LINTNER 061107 06/11/2007 40.00 40.00 131850 O6115/2007 006087 M& S AUTOMOTIVE 9699 06/06/2007 551.04 � 9685 05/31/2007 40.00 591.04 131851 06/15/2007 000419 MIDAS AUTO SERVICE 17947 OS/24/2007 54.12 54.12 Page: 14 apCkHist Check History Listing Page: 15 O6/18/2007 10:28AM CITY OF ARROYO GRANDE Bank code: boa Check# Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total 131852 06/15/2007 000429 MINER'S ACE HARDWARE, 209518 O6/13/2007 34.44 209319 06/12/2007 �$•31 908880 06/07/2007 17.23 209160 06/11/2007 927 I 208722 06/07/2007 5.38 84.63 131853 06115/2007 000438 F MORTON PITT COMPANY 0009595-IN 03/23I2007 25.74 0009716-IN 05/23/2007 18.16 0009604-IN 03/21/2007 17.16 61.06 131854 06/15I2007 000441 MULLAHEY FORD FOCS178565 05/24/2007 35.06 i FOCS178095 05/08/2007 34.91 FOCS177931 05/02/2007 32.32 � FOCSt78537 05123/2007 32.32 I FOCS178569 05/29/2007 32.26 166.87 , 131855 06/15/2007 000880 NEUTRON INDUSTRIES, INC 93424974 06/05/2007 121.48 121.48 131856 06/15/2007 002849 NEXTEL COMMUNICATIONS 933066312-065 05/29/2007 298.43 298.43 , 131857 06/15/2007 006190 NORTHERN TOOL& 16078949 05/14/2007 250.14 250.14 ! 131858 06/15/2007 000468 OFFICE DEPOT 388441274-001 O6/01/2007 67.47 388990935-001 06/01/2007 58.17 388507916-001 06/01/2007 26.83 388493856-001 06/01/2007 21.32 388889737 06/01/2007 5.81 179.60 131859 06115/2007 0018860FFICEMAX-HSBC 01752J1061 04/16/2007 16.15 16.15 131860 O6/15/2007 000472 ORCHARD SUPPLY 00030931 05/11/2007 42.30 42.30 131861 O6115/2007 000481 PACIFIC GAS 8 ELECTRIC 5/22-853299 05/22/2007 25,996.55 i 6/2-853299 06/02/2007 2��20 26,017.75 I 131862 06/15/2007 000490 PERVO PAINT CO 46287 06/01/2007 1,406.14 1,406.14 � 131863 O6/15/2007 002363 PRIMARY CARE DOG&CAT 50523 04/19/2007 112.74 112.74 I 131864 06/15/2007 003418 KENNETH REED 061407 06/14/2007 373.78 373.78 I I Page: 15 apCkHist Check History Listing Page: 16 O6H8/2007 10:28AM CITY OF ARROYO GRANDE Bankcode: boa Check# Date Vendor Status ClearNoid Date Invoice Inv. Date Amount Paid Check Total 131865 06/15/2007 003031 ROBERTSON SUPPLY 6713 05/31/2007 189.64 189.64 131866 06/15/2007 003649 CHARLES D(DON) RUIZ 061107 06/11I2007 76.00 76.00 131867 O6/15/2007 000535 S& L SAFETY PRODUCTS 249633 06l01/2007 258.28 258.28 131868 06/15I2007 000539 SAFETY-KLEEN SYSTEMS, 34114253 OS/23/2007 170.54 170.54 131869 06/15/2007 000575 SANTA MARIA TIRE, INC 542963 O6/06/2007 231.72 231.72 131870 06/15/2007 000579 JOYCE SARUWATARI 060607 06I06/2007 43.04 43.04 � 131871 06/15/2007 003024 MARK SCHAFFER 061107 O6/11/2007 40.00 40.00 131872 06/15/2007 001876 KAREN SISKO 060707 O6/07/2007 53.86 53.86 131873 06/15/2007 000564 SLO COUNTY NEWSPAPERS 6570074 04/23I2007 175.78 6562814 04/06/2007 170.17� 6568934 04I20/2007 164.56 6566459 04113/2007 121.55 6568568 04118/2007 ����81 � 6568573 04/18/2007 112.20 6575558 05/02/2007 95.37 6560836 04/04/2007 93.50 6560697 04/04I2007 $2•2$ 1,133.22 131874 06/15/2007 006096 SLO COUNTY SHERIFF- 061407 06/14I2007 62.00 62.00 131875 06/15/2007 004860 TAMMY SMITH 061107 O6/11/2007 40.00 40.00 131876 06/15/2007 000602 SOUTH SLO COUNTY SANIT 53107 05/31/2007 66,369.17 66,369.17 131877 06/15/2007 004393 SP MAINTENANCE 18158 04/01/2007 6,994.40 18913 O6/01/2007 6,994.40 18598 OS/30/2007 85.00 14,073.80 131878 O6/15I2007 000540 ST PATRICK'S SCHOOL 060107 O6/01/2007 337.50 337.50 131579 O6/15I2007 000613 STATEWIDE SAFETY& 55065 O6/06/2007 252.04 252.04 131880 06/15I2007 000616 STERLING 22743 04/07/2007 195.00 22557 05/09/2007 2�•34 216.34 I Page: 16 i � ; apCkHist Check History Listing Page: 1� 06118/2007 10:28AM CITY OF ARROYO GRANDE Bankcode: boa Check# Date Vendor SWtus ClearNoid Date Invoice Inv.Date Amount Paid Check ToWI 131881 06/15I2007 000620 STREATOR PIPE & SUPPLY 1042596 05/23/2007 523.87 1044482 05I30/2007 10.39 1042596 05/24/2007 9�56 543.82 131852 06115/2007 000622 SUN BADGE CO 285475 05/03/2007 265.91 265.91 I 131853 06/15/2007 000624 SUPERIOR QUALITY 34433 05/21/2007 27.96 27.96 131884 06/15/2007 000637 TEXAS REFINERY CORP 790251 O6I04/2007 640.82 640.82 131885 06/15/2007 002370 TITAN INDUSTRIAL 1019868 O6/05/2007 221.05 1020215 OS/25/2007 150.85 1019862 O6/OS/2007 63.67 435.57 I 131886 06/15I2007 000666 UNITED RENTALS 65276441-00 05/23/2007 8.25 8.25 I 131887 06/15I2007 000673 US POSTAL SERVICE 061407 O6114/2007 3,000.00 3,000.00 131888 06/15/2007 000678 VALLEY AUTO SERVICE 015914 05/30/2007 15.00 15.00 131889 06/15/2007 004736 VANGUARD VAULTS 15847 03/31/2007 231.00 231.00 � 131890 06/15I2007 005329 JASON VASQUEZ 061107 O6/11/2007 50.00 50.00 � I 131891 06/15/2007 002137 VERIZON WIRELESS 0559242980 06/04/2007 684.25 I 0556507450 06/17/2007 103.24 000396229001 05I20/2007 8�•29 868.78 i 131892 06115/2007 000688 WEST COVINA NURSERIES 21126 05/15/2007 241.31 I 21090 OS/16I2007 71.59 ' 21134 05/16/2007 54.70 367.60 131893 06/15/2007 000704 WITMER-TYSON IMPORTS T5934 O6/05/2007 350.00 350.00 boa Total: 396,066.27 283 checks in this report Total Checks: 396,066.27 I Page: 17 � i i � ATTACHMENT 2 , CITY OF ARROYO GRANDE DEPARTMENTAL LABOR DISTRIBUTION PAY PERIOD 5118/07 - 5l31107 06108107 FUND 010 412,334.11 5101 Salaries Full time 203,166.41 FUND 220 18,850.33 5102 Salaries Part-Time- PPT 19,528.12 FUND 284 700.27 5103 Salaries Part-Time -TPT 10,422.09 FUND 285 700.33 5105 Salaries OverTime 28,126.05 FUND 612 6,593.56 5107 Salaries Standby 389.29 FUND 640 19,077.77 5108 Holiday Pay 23,735.32 458,256.37 5109 Sick Pay 3,363.78 5110 AnnualLeave Buyback 5111 Vacation Buyback 5112 Sick Leave Buyback 5113 Vacation Pay 8,293.70 5114 Comp Pay 5,552.57 5115 Annual Leave Pay 2,866.29 5121 PERS Retirement 76,357.59 5122 Social Security 22,009.85 5123 PARS Retirement 371.67 5126 State Disability Ins. 673.28 5127 Deferred Compensation 725.00 5131 Health Insurance 44,726.17 5132 Dentallnsurance 4,893.42 5133 Vision Insurance 1,150.39 5134 Life Insurance 599.34 5135 Long Term Disability 56.04 5143 Uniform Allowance 5144 Car Allowance 975.00 5146 Council Expense 5147 Employee Assistance 5148 Boot Allowance 5149 Motor Pay 75.00 5150 Bi-Lingual Pay 200.00 458,256.37 8.b. � pRROy� ° c�P , INCORPORATED 92 ti � - - o m * ���� ,�. ,a„ . MEMORANDUM C4��FORN�P . TO: CITY COUNCIL FROM: ANGELA KRAETSCH, DIRECTOR OF FINANCIAL SERVICES��� BY: FRANCES R. HEAD, ACCOUNTING SUPERVISOR SUBJECT: STATEMENT OF INVESTMENT DEPOSITS DATE: JUNE 26, 2007 RECOMMENDATION: Staff recommends that the Council receive and file the attached report listing the current investment deposits of the City of Arroyo Grande, as of May 31, 2007, as required by Government Code Section 53646 (b). DISCUSSION: This report represents the City's investments as of May 31, 2007. It includes all investments managed by the City, the investment institution, investment type, book value, maturity date, and rate of interest. As of May 31, 2007, the investment portfolio was in compliance with all State laws and the City's investment policy. A�TERNATIVES: The following alternatives are provided for the Council's consideration: • Approve staff's recommendation; • Do not approve staff's recommendation; • Provide direction to staff. Attachment: Portfolio Summary I CITY OF Ciry of Arroyo Grande 214 E.Branch St. � � • Arroyo Grande,CA 93430 Phone: (805)473-5400 CITY OF ARROYO GRANDE Y;� C A L I F O R N I A/. � Portfolio Management ������ Portfolio Summary May 31, 2007 Interest Investments Book Value Interest Rate Rate PY Date of Purchase Term Maturit Date °/a of Portfolio Loca/AgencylnvestmentFunds $ 15,604,401.42 5.25% 4.56% 91.85% Certicates of Deposit-Banks Redding Bank of Commerce 99,000.00 4.60% April 8,2007 14 Mos. June 8,2008 0.58% Granite Community Bank Matured April 23,2007 Golden Security Bank 90,000.00 5.62% June 20,2006 360 June 20,2007 0.53% State Bank of India 200,000.00 5.64% December 8,2006 213 July 8,2007 1.18% Mission NB 100,000.00 5.75% July 10,2006 365 July 10,2007 0.59% First Credit Bank 99,000.00 5.70% July 26,2006 365 July 25,2007 0.58% Redding Bank of Commerce 500,000.00 5.48% February 18,2007 9 Mos. November 17,2007 2.94% First Standard Bank 99,000.00 5.46% December 2,2006 365 December 2,2007 0.58% Bank of Santa Clarita 99,000.00 5.50% March 10,2007 365 March 10,2008 0.58% Metro United Bank 99,000.00 5.85% September 12, 2006 730 September 12,2008 0.58% Total Certificates of Deposit $ 1,385,000.00 8.15% Totallnvestments $ 16,989,401.42 100.00% 8.c. MINUTES REGULAR MEETING OF THE CITY COUNCIL/REDEVELOPMENT AGENCY TUESDAY, MAY 22, 2007 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor/Chair Ferrara called the Regular City Council/Redevelopment Agency meeting to order at 7:04 p.m. 2. ROLL CALL CC/RDA: Council/Board Members Joe Costello, Chuck Fellows, Mayor Pro TemNice Chair Ed Arnoid and Mayor/Chair Tony Ferrara were present. Council/Board Member Jim Guthrie was absent. City Staff Present: City Manager Steven Adams, City Attorney Tim Carmel, Director of Administrative Services/City Clerk Kelly Wetmore, Director of Financial Services Angela Kraetsch, Director of Public Works Don Spagnolo, Director of Community Development Rob Strong, Associate Planner Teresa McClish, Assistant Planner Ryan Foster, and Assistant Planner Jim Bergman. 3. FLAG SALUTE Members of County Line 4-H Club led the Flag Salute. 4. INVOCATION Retired Pastor Paul Jones delivered the invocation. 5. SPECIAL PRESENTATIONS 5.a. Mayor's Commendation Honoring Bob Behme Upon His Retirement and Recognizing His Service to the Community. Mayor Ferrara presented a Mayor's Commendation to Bob Behme honoring him upon his retirement and recognizing his service to the community. 5.b. Honorary Proclamation Proclaiming June 5, 2007 as "Hunger Awareness Day". Mayor Ferrara proclaimed June 5, 2007 as "Hunger Awareness Day" and requested that staff forv✓ard the Proclamation to the San Luis Obispo County Foodbank. 5.c. Honorary Proclamation Proclaiming May 20-26, 2007 as "National Public Works Week". Mayor Ferrara presented an Honorary Proclamation proclaiming May 20-26, 2007 as "National Public Works Week". Director of Public Works Spagnolo accepted the Proclamation and issued an invitation for a tour of the Corporation Yard on Thursday from 3-4:00 pm and then to the Farmer's Market in San Luis Obispo Thursday evening where some of the City's public works equipment woufd be displayed. 6. AGENDA REVIEW 6.a. Ordinances Read in Title Only. Council/Board Member Costello moved, Mayor Pro TemNice Chair Arnold seconded, and the motion passed unanimousiy that all ordinances moved for introduction or adoption at the meeting shali be read in title only and all further reading be waived. Minutes: City CounciURedevelopment Agency Page 2 Tuesday, May 22, 2007 7. CITIZENS' INPUT, COMMENTS, AND SUGGESTIONS None. 8. CONSENT AGENDA Mayor Ferrara invited members of the public who wished to comment on any Consent Agenda Item to do so at this time. No public comments were received. Action: Council Member Fellows moved to approve Consent Agenda Items 8.a. through 8.h., with the recommended courses of action. Council Member Costeilo seconded, and the motion passed on the following roll cail vote: AYES: Fellows, Costello, Arnold, Ferrara NOES: None ABSENT: Guthrie 8.a. Cash Disbursement Ratification. Action: Ratified the listing of cash disbursements for the period May 1, 2007 through May 15, 2007. 8.b. Consideration of Statement of Investment Deposits. Action: Received and filed the report of current investment deposits as of April 30, 2007. 8.c. Consideration of Fiscal Year 2007-08 Appropriation Limit. Action: Adopted Resolution No. 4012 as follows: "A Reso/ution of the City Council of the City of Arroyo Grande Adopting a Tax Proceeds Expenditure Appropriation Limif for Fiscal Year 2007-08". 8.d. Consideration of Approval of Minutes. Action: Approved the minutes of the Special (Closed Session) City Council meeting of April 24, 2007 and the Regular City Council/Redevelopment Agency/Public Financing Authority meeting of April 24, 2007, as submitted. 8.e. Consideration of Revisions to Telephone Usage Policy. Action: Approved the Telephone Usage Policy. 8.f. Consideration of Agreement with BFGC Architecture for Preparation of a Police Station Expansion Needs Assessment and Feasibility Study. Action: Approved and authorized the Mayor to execute an Agreement with bfgc architecture for preparation of a Police Station Expansion Needs Assessment and Feasibility Study. 8.g. Consideration to Approve Final Parcel Map AG 04-0123 Subdividing One (1) .55 Acre Residential Parcel into Three (3) Residential Parcels Located at 754 Pine Street. Action: Approved Final Parcel Map AG 04-0123, subdividing one (1) .55-acre parcei into three (3) parcels. 8.h Consideration of Adoption of Ordinance to Comply with SB53. Action: Adopted Ordinance No. 589 as follows: "An Ordinance of the City Council of the City of Arroyo Grande to Comply with Requirements of Senate Bill 53, Chapter 591 of Statutes of 2006, as Codified in California Health and Safety Code Section 33342.7, by Describing that the Arroyo Grande Redevelopment Agency does not have authority to Acquire Rea/ Property by Eminent Domain and therefore has no Program to Acquire Real Property by Eminent Domain". 9. PUBLIC HEARINGS 9.a. Consideration of Appeal of Planning Commission's Approval of Viewshed Review 06- 006; 190 Fairview Drive. Minutes: City Council/Redevelopment Agency Page 3 Tuesday, May 22, 2007 Assistant Planner Foster presented the staff report and recommended the Council adopt a Resolution denying the appeal and approving Viewshed Review Case No. 06-006 to allow expansion of the ground floor and addition of a second story to an existing single-family residence. Mayor Ferrara opened the public hearing. Jude Eqan, attorney representing the appeliants (Tennant), referred to correspondence dated May 17, 2007 submitted to the Council (on file in the Administrative Services Department) which opposed the project as proposed due to inconsistency with the intent of Section 16.16.110 of the Development Code concerning viewshed review; and that the proposed project is not consistent with the established scale and character of the neighborhood and wili unreasonably and unnecessarily interfere with the appellants' scenic views. Jeff Emrick, architect representing the appellants, displayed a series of elevation drawings, which he said demonstrated the impact on the Tennants' views by the proposed two-story addition. Rolanda Tennant, Brighton, submitted a letter (on file in the Administrative Services Department), opposing the proposed project and requesting the Council uphold the appeal. Steve Babcock, representing the project applicants (Atkisson), spoke in opposition to the appeal. He provided a brief history of the development review process for the proposed project and efforts to modify the project in an effort to preserve more of the view from 1239 Brighton. Mike Atkisson, project applicant, spoke in opposition to the appeal and gave an overview of the time and costs involved in the design and redesign of the project. Nancv Atkisson, project appiicant, spoke in opposition to the appeal and explained plans to remodel the house to include ADA access. She noted that the project had been redesigned based on comments made by the Planning Commission and urged the Council to uphold the Planning Commission's approval and deny the appeal. Howard Mankins, Hilicrest Drive, spoke in favor of protecting viewsheds, referred to the City's viewshed ordinance and said you cannot put a monetary value on a view, and cautioned against setting a precedent. Steve Rutledpe, Fair View Drive, spoke in opposition to the appeal. He stated he had added a 2nd story to his home in 2005 and that many homes in the neighborhood have two-stories. He acknowledged that this project would result in a partial loss of view for the Tennants; however he believed the applicant had compromised to find an amicable solution by redesigning the project. He supported the Planning Commission's decision to approve the project. Upon hearing no further comments, Mayor Ferrara closed the public hearing. Council Member Costello pravided the following comments: Acknowledged the concerns expressed by both parties; - Stated that he could support the required findings, including consistency with the intent of Section 16.16.110 of the Development Code; the proposed structure is consistent with the established scale and character of the neighborhood and will not unreasonably or unnecessarily affect views of surround properties; and the proposed structure constitutes reasonable use and development of the property; - Supports upholding the Planning Commission's decision and denying the appeal. Council Member Fellows provided the following comments: - Stated he reviewed the original project while on the Planning Commission in July 2006; acknowledged the project had been modified since that time; - Made several site visits and met with both the applicants and the appellants; - Based on his experience as a realtor, he believed scenic views have value to real estate buyers; Minutes: City Council/Redevelopment Agency Page 4 Tuesday, May 22, 2007 — While on the Planning Commission, he stated that an adjustment to the proposed addition could lessen the view impacts and at that time he could not make the required finding that the proposed structure would not unreasonably or unnecessarily affect views of surrounding properties; — Noted that most of the second story additions in the neighborhood are set back over the house toward the rear of the structure; — Did not believe the project should impact just one property's view; — Could not make the required finding that the proposed structure would not unreasonably or unnecessarily interfere with the scenic view from any other property, as it relates to permitting reasonable use and development of the property on which the proposed structure or expansion is to occur; believes that the proposed plan would substantially block the views; — Stated the project as modified is not fair or equitable to the appellants; Stated that allowing an addition over the garage would encourage bad design, and would negatively affect the character of the neighborhood; — Did not support statements that removing a tree and a wall would improve the view; and — Supported the appeal. Mayor Pro Tem Arnold provided the following comments: — Met with the architect to review the project; — Acknowledged that view shed issues were difficult; — Noted that this neighborhood has numerous two-story homes; — Noted that additions add value to the home; — Does not think second stories built over garages are attractive; however, he stated the City's development standards allow them; Not concerned with overall size of the proposed addition; most of the second story will not be visible from the street; — Stated the proposed project is reasonable and that he supported the Planning Commission's decision. Mayor Ferrara provided the foliowing comments: — Took photos at the site; observed that there are primary and secondary views; — Acknowledged that there was some effort made by the applicants to reach a compromise by redesigning the project; — Acknowledged that the issue under consideration was reasonableness; noted that there was a difficult configuration of the existing homes, but believed that some primary views would be preserved for the appellants; — Believed that the project was well within the standards of the Municipal Code; — Concurred with findings made by the Planning Commission and would deny the appeal and uphold the approval. Action: Council Member Costello moved to adopt a Resolution, as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DENYING AN APPEAL OF THE PLANNING COMMISSION'S APPROVAL OF VIEWSHED REVIEW 06-006 AND APPROVING VIEWSHED REVIEW 06- 006; LOCATED AT 190 FAIR VIEW ORIVE; APPLIED FOR BY MIKE AND NANCY ATKISSON". City Attorney Carmei clarified that there was a clerical correction in finding #3 of the Resolution to strike the words "In staff's and the Planning Commission's opinion...", and noted that General Condition No. 3 in Exhibit A of the Resolution had been modified, as presented in supplemental information distributed to the Council, which reflects the current City condition on indemnification. Council Member Costello agreed to include those modifications in the motion. Mayor Pro Tem Arnold seconded, and the motion passed on the following roll-call vote: Minutes: City Council/Redevelopment Agency Page 5 Tuesday, May 22, 2007 AYES: Costello, Arnold, Ferrara NOES: Fellows " ABSENT: Guthrie Mayor Ferrara called for a break at 8:36 p.m. The Council reconvened at 8:49 p.m. 9.b. Review of the Draft Environmental Impact Report (EIR) for the Newsom Springs Regional Drainage Plan. Associate Planner McClish presented the staff report and recommended the Council review the Draft EIR prepared for the Newsom Springs Regional Drainage Plan, receive public comment, and provide input to staff. David Foote, FIRMA, gave an overview of the study area, explaining the regional drainage plan components; reviewed impacts to agricultural resources, flooding and sedimentation, biological resources, and cultural resources; reviewed alternatives to the proposed project; and reviewed the remaining steps in the EIR process. Mr. Foote responded to questions from Council concerning impacts associated with the project alternative that crosses the Dixson Ranch agriculture field (Mayor Ferrara requested staff to coordinate a tour of a similar project on the Ikeda property); impacts associated with detention basins; impacts associated with loss of prime soils; and impacts associated with the State water pipeline. Mayor Ferrara opened the public hearing. Otis Paqe, Myrtle Street, congratulated the Council for its foresight in devising the various alternatives; however, he expressed concern about going through the process of finalizing an EIR prior to approving a final engineering design. Sara Dickens, Co-Trustee of the Dixson Ranch property, acknowledged the careful thought that was given to the Draft EIR; expressed concern with flooding and loss of top soii; expressed concern about the height of the water table; and expressed concern about the expense associated with underground piping. Julie Thomas, representing Coastal San Luis Resource Conservation District, stated the District is continuing to review the EIR and will provide comments in writing. She expressed concern about soil erosion and flooding and noted that the District is the holder of the conservation easement encumbering the Dixson Ranch. Upon hearing no further public comments, Mayor Ferrara closed the public hearing. Council comments included acknowledgment that the City was in the public review period for the Draft EIR and would continue to accept comments until the deadline of June 7th; clarification concerning the EIR process and response to public comments; further questions and clarification concerning the project alternatives; clarification of cost estimates and the potential for pursuing additional funding through grant opportunities; a request to coordinate a field trip with City staff, Mark Barnett, and David Foote to view the Ikeda drainage project; a request to provide a clearer graphic of Figure D-2 in the document; and whether pre-disaster mitigation funds may be available for the Newsom Springs project. Action: Mayor Pro Tem Arnold moved to accept the Draft EIR and to continue the public comment period until June 7, 2007. Council Member Costello seconded, and the motion passed on the following roll-call vote: Minutes: City Council/Redevelopment Agency Page 6 Tuesday, May 22, 2007 AYES: Arnold, Costello, Fellows, Ferrara NOES: None ABSENT: Guthrie 9.c. Consideration of a Proposed Ordinance Amending Chapter 16.60 of the Arroyo Grande Municipal Code Regarding Signs. Assistant Planner Bergman presented the staff report and recommended the Council introduce an Ordinance amending Municipal Code Chapter 16.60 related to signs. Mayor Ferrara opened the public hearing, and upon hearing no comments, he closed the public hearing. Council comments ensued regarding the need for a comprehensive review of the sign ordinance; the purpose and intent of sign regulations; clarification relating exempt signs as it relates to residential dwellings offered for sale (referred to Section 16.60.050.C.1.); and clarification relating to approvals for mural permits. Discussion was held concerning signs held by persons within the public right-of-way and modifying the language in Section 16.60.060.V. to prohibit off-site commercial signs, including those within the public right-of-way, held or supported by a person. Additionally, the Council concurred to modify the language in Section 16.60.020.D. to provide clarification that no murals shall be painted without the approval of a mural permit in accordance with Section 16.16.200. Action: Council Member Costello moved to introduce an Ordinance, with modifications to Sections 16.60.060.V. and 16.60.020.D., as follows: "AN ORD/NANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMEND/NG CHAPTER 16.60 OF THE ARROYO GRANDE MUNICIPAL CODE RELATING TO S/GNS". Mayor Pro Tem Arnold seconded, and the motion passed on the following roll-call vote: AYES: Costello, Arnold, Fellows, Ferrara NOES: None ABSENT: Guthrie 10. CONTINUED BUSINESS ITEMS None. 11. NEW BUSINESS ITEMS 11.a. Consideration of Fiscal Year 2006-07 Third Quarter Budget Status Report. Director of Financial Services Kraetsch presented the staff report and recommended the City Council/RDA Board 1) Approve detailed budget adjustments listed in the 3rd Quarter budget report; 2) Approved Schedules A & B; and 3) Approve (Deny) requests for additional appropriations in the General Fund. Mayor/Chair Ferrara invited comments from those in the audience who wished to be heard on the matter, and upon hearing no public comments, he closed the pubiic comment period. Minutes: City Council/Redevelopment Agency Page 7 Tuesday, May 22, 2007 Action: Council/Board Member Costello moved to approve detailed budget adjustments listed in the 3rtl Quarter budget report; approve Schedules A & B; and approve requests for additional appropriations in the General Fund. Mayor Pro TemNice Chair Arnold seconded, and the motion passed on the following roll-call vote: AYES: Costello, Arnold, Fellows, Ferrara NOES: None ABSENT: Guthrie 12. CITY COUNCIL REPORTS a. MAYOR TONY FERRARA: (7) San Luis Obispo Council of Governments/San Luis Obispo Regional Transit Authority (SLOCOG/SLORTA). SLOCOG Executive Board met and discussed routine items; and SLOCOG sponsored a guest speaker, who was a former Governor of Maryland, at a Smart Growth seminar. (2) South San Luis Obispo County Sanitation District (SSLOCSD). The sewage treatment plant continues to operate within required standards and limits; maintenance continues to be the big issue; the biggest deficit the District is facing is the reduction in revenue from sewer hookups due to the decline in the number of new hookups in communities approaching buildout; reported that construction debris and material was recovered from the cleanout of the Bakeman Lane sewer line which was obstructing flow and causing damage; discussion was held concerning whether locks should be instalied on sewer manholes. (3) Other. None. b. MAYOR PRO TEM ED ARNOLD: (1) Integreted Waste Management Authority Board (IWMA). Studying a potential rate increase to address projected increases in hazardous waste handling; minimal increase is projected and two options being considered include increasing tipping fees or to have cities raise the rates. (2) Economic Vitality Corporation (EVC). Attended the Annual Retreat to define EVC purpose and goals more clearly; will work with the cities closer on data collection; will continue providing educationai seminars. (3) Other. Attended the 2050 Community seminar; attended meeting where Sam Blakeslee spoke about Twin Cities Hospital regarding nursing staff issues and potential pilot programs at the local community colleges. c. COUNCIL MEMBER JOE COSTELLO: (1) Zone 3 Water Advisory Board. Meeting canceled due to lack of quorum. Reported that the Board is working with the National Marine Fishery Service on the Creek Habitat Conservation Plan. (2) Air Pollution Control District (APCD). No report. (3) Fire Oversight Committee. No report. (4) Fire Consolidation Oversight Committee. No report. (5) Other. None. d. COUNCIL MEMBER JIM GUTHRIE: (ABSENT) (1) South County Area Transit (SCAT). No report. (2) California Joint Powers Insurance Authority (CJPIA). No report. (3) Other. None. Minutes: City Council/Redevelopment Agency Page 8 Tuesday, May 22, 2007 e. COUNCIL MEMBER CHUCK FELLOWS: (1) South County Youth Coalition. Received presentations by the SLO Health Department and "Artsabispo" and has material available for review; reported on the various local youth groups represented at the Coalition meeting. (2) County Water Resources Advisory Committee (WRAC). Council Member Guthrie attended the last meeting as the Alternate. (3) Other. None. 13. CITY COUNCIL MEMBER ITEMS: Council Member Fellows requested staff contact Caltrans to request replacement of trees that have died along the freeway south of E. Grand Avenue. 14. CITY MANAGER ITEMS: None. 15. COUNCIL COMMUNICATIONS: Mayo� Pro Tem Arnold announced that the Annual Strawberry Festival would be held this weekend in the Village. Mayor Ferrara announced the Memorial Day ceremony to be held at Arroyo Grande Cemetery. , 16. STAFF COMMUNICATIONS: City Manager Adams announced the Special City Council/Redevelopment Agency Meeting to consider the preliminary Bi-Annual Budget for FY 2007-08 and 2008-09 would be held Tuesday, May 29, 2007 at 6:00 p.m. in the Council Chambers. 17. COMMUNITY COMMENTS AND SUGGESTIONS: None. 18. ADJOURNMENT Mayor/Chair Ferrara adjourned the meeting at 10:45 p.m. Tony Ferrara, Mayor/Chair ATTEST: Kelly Wetmore, City Clerk/Secretary (Approved at CC Mtg ) MINUTES SPECIAL MEETING OF THE CITY COUNCIL/REDEVELOPMENT AGENCY TUESDAY, MAY 29, 2007 COUNCIL CHAMBERS, 275 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER The City Council/Redevelopment Agency of the City of Arroyo Grande met in special session at 6:00 p.m. to consider the Fiscal Year 2007-08 and 2008-09 Preliminary Bi-Annual Budget, with Mayor/Chair Tony Ferrara presiding. 2. ROLL CALL Mayor/Chair Ferrara, Mayor Pro Tem/Vice-Chair Arnold, Council/Board Member Costello, Council/Board Member Guthrie, and Council/Board Member Fellows were present. Staff members present were City Manager Adams, Chief of Police Aeilts, Director of Administrative Services/City Clerk Wetmore, Director of Building and Fire Hubert, Public Works Director Spagnolo, Parks, Recreation, and Facilities Perrin, Community Development Director Strong, and Financial Services Director Kraetsch. 3. FLAG SALUTE Mayor/Chair Ferrara led the Pledge of Allegiance. 4. CITIZENS' INPUT. COMMENTS. AND SUGGESTIONS None. 5. CONSIDERATION OF FISCAL YEAR 2007-08/2008-09 PRELIMINARY ANNUAL BUDGET City Manager Adams presented the proposed FY 2007-08 and FY 2008-09 Preliminary Bi- Annual Budget to the City Council/RDA Board Members. Staff recommended the Council review, discuss, and obtain public input on the preliminary budget and provide direction to staff on any changes. City Manager Adams provided an outline of staffs budget presentations, which would include a summary of revenue and expenditure projections; an overview of fiscal policies; an overview of budget strategies and recommendations; an overview of the long-range financial plan; an overview of departmental key goals and accomplishments; and an overview of the Capital Improvement Program. Financial Services Director Kraetsch presented a summary of revenue and expenditure projections; reviewed General Fund Revenues & Appropriations; reviewed the financial status of the Redevelopment Agency; and reviewed Water and Sewer Fund projected revenues. City Manager Adams gave an overview of the City's existing fiscal policies and recommended fiscal policy changes to reduce the reserve policy and to pre-fund retiree medical costs; and provided budget highlights, including an overview of proposed transportation, infrastructure, public safety, and public facilities/ADA improvement projects to be funded with the local sales tax revenue, and recommended several proposed personnel changes. Financial Services Director Kraetsch gave an update of the City's Long Range Financial Plan, including an overview of issues to monitor such as potential reductions in sales tax, reductions in building permit fee revenue, the rising cost of personnel and benefit costs due to the rising cost of housing; and sewer fund capital project needs. SPECIAL CITY COUNCIL/REDEVELOPMENT AGENCY MEETING MINUTES MAY 29, 2007 PAGE 2 City Manager Adams provided an overview of the proposed Work Program for the next two fiscal years. Mayor/Chair Ferrara opened the public comment period and the following members of the public commented on the proposed budget: Tvson Kurt, Dixson Street, opposed the funding for lighting of Don Roberts Field. Mike Palavo, representing Arroyo Grande Valley Little League and the Central Coast Youth Sports Association, supported the proposed funding for lighting of Don Roberts Field. Jim Varpo, representing AYSO, supported the proposed funding for lighting of Don Roberts Field. Hearing no further public comments, Mayor/Chair Ferrara closed the public comment period. City Manager Adams then presented the accomplishments for Administration and the City Attorney for FY 2005-06/2006-07 and goals for FY 2007-08/2008-09. Directors of the Administrative Services, Financial Services, Community Development, Police, Building & Fire, Parks, Recreation & Facilities, and Public Works highlighted FY 2005-06/2006-07 Department Accomplishments and FY 2007-08 and FY 2008-09 Department Goals. Director of Public Works Spagnolo gave an overview of the City's FY 2007-2012 Capital Improvement Program (CIP). He stated that for FY 2007-08 and 2008-09, there are 73 capital projects budgeted totaling $12,779,285. He gave a brief overview of FY 2007-08 CIP Proposed Funding Sources, FY 2007-08 CIP Expenditures by Project Type; an overview of the funding plan for street improvement projects and major projects for FY 2007-08/2008-09. Mayor/Chair Ferrara called for a break at 8:10 p.m. The Council/Board reconvened at 8:23 p.m. Council/Board Member comments and questions of staff ensued regarding the budget revenue estimates; operational costs; tracking the local sales tax revenues separately; adjusting the Citys Generai Fund reserve policy to provide for maintaining a minimum of 15% with a goal of 20%; support for modifying the fiscal policy concerning pre-funding of retiree medical costs; concern that the capital project estimates are too low; support for establishing a vehicle replacement fund and reviewing the policy to establish and refine the criteria for vehicle replacements; that the City needs to consider and evaluate the potential for purchasing alternative fuel vehicles; support for the proposed improvement and lighting projects at Soto Sports Complex; acknowledgement that park development impact fees are declining due to buildout and that the City will need to look at ways to fund park improvements in the future as the City will not be able to subsidize the regional facility on an ongoing basis; whether there were any plans to use solar power at the City's well sites to address rising electric power costs; whether the City was a member of the South County Historical Society and a suggestion to provide a donation to defray their costs; a suggestion to increase the hours or add an additional employee in the Neighborhood Services Division; a suggestion to move the Tally Ho sidewalk project up in the capital improvement program schedule; a suggestion to follow up to see if all the Strawberry Festival vendors are paying sales tax as required; whether underground improvements are being coordinated prior to planned street overlay projects; a suggestion to consider photovoltaic systems at existing City facilities; concern about the project costs for the Lopez Water Treatment Plant and a request for more expense detail; concern about rising costs for animal control services and a request to seek clarification from the County to ensure costs are applicable for the services rendered within the City limits; a request to increase the travel expense account due to the Council's involvement with the League of California Cities and associated policy committee meetings; a suggestion for providing in-house training opportunities SPECIAL CITY COUNCILIREDEVELOPMENT AGENCY MEETING MINUTES MAY 29, 2007 PAGE 3 for disaster planning and implementation of the Emergency Plan/EOC; a suggestion to staff to review the Children In Motion programs as it relates to offering packaged costs; support for the concept of creating an Agricultural Advisory Committee; a follow-up request for developing a Water Element for the General Plan; a request to review and monitor City-wide telephone costs; a suggestion to install locks on manhole covers to discourage debris and materials from entering the sewer system; and acknowledgement that the costs for the SLO Visitors and Conference Bureau are based on a cost benefit formula by jurisdiction and is linked to Transient Occupancy Tax Revenue. There was no formal action taken on the Preliminary Bi-Annual Budget. City Manager Adams reported the Final Budget would be presented to the City Council on June 12'" for formal adoption. 6. ADJOURNMENT Mayor/Chair Ferrara adjourned the Special Meeting at 9:49 p.m. to the next Regular City Council/Redevelopment Agency Meeting on Tuesday, June 12, 2007 at 7:00 p.m. Tony Ferrara, Mayor/Chair ATTEST: Kelly Wetmore, City Clerk/Agency Secretary (Approved at CC Mtg ) MINUTES SPECIAL MEETING OF THE CITY COUNCIL I TUESDAY, JUNE 12, 2007 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. ROLL CALL: Mayor Ferrara called the meeting to order at 6:36 p.m. Council Member Joe Costello, Council Member Jim Guthrie, Council Member Chuck Fellows, City Manager Steven Adams, and City Attorney Timothy Carmel were present. Mayor Pro Tem Arnold was absent. 2. PUBLIC COMMENT: None. 3. CITY COUNCIL CLOSED SESSION: a. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION pursuant to Govemment Code Section 54956.9(a): ' Name of Case: In re: Department of the Treasurv fLetter 950 D (7-2006)1 4. RECONVENE TO OPEN SESSION: Mayor Ferrara announced that there was no reportable action from the closed session. I , 5. ADJOURNMENT: The meeting was adjourned at 6:54 p.m. Tony Ferrara, Mayor ATTEST: Kelly Wetmore, City Clerk MINUTES REGULAR MEETING OF THE CITY COUNCIL/REDEVELOPMENT AGENCY TUESDAY, JUNE 12, 2007 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. CALL TO ORDER Mayor/Chair Ferrara called the Regular City Council meeting to order at 7:00 p.m. 2. ROLL CALL City Council/RDA: Council/Board Members Chuck Fellows, Jim Guthrie, Joe Costello, and Mayor/Chair Tony Ferrara were present. Mayor Pro Tem/Vice Chair Ed Arnold was absent. City Staff Present: City Manager Steve� Adams, City Attorney Tim Carmel, Director of Administrative Services/City Clerk Kelly Wetmore, Interim Chief of Police Steve Andrews, Director of Building and Fire Mike Hubert, Director of Financial Services Angela Kraetsch, Director of Public Works Don Spagnolo, Director of Parks, Recreation and Facilities Doug Perrin, and Acting Community Development Director Teresa McClish. 3. FLAG SALUTE John Stobbe, representing the Knights of Colombus, led the Flag Salute. 4. INVOCATION Dr. Mayer-Harnish, Bahai Faith, delivered the invocation. 5. SPECIAL PRESENTATIONS None. 6. AGENDA REVIEW 6.a. Ordinances Read in Title Only. Council Member Costello moved, Council Member Guthrie seconded, and the motion passed unanimously that all ordinances moved for introduction or adoption at the meeting shall be read in title only and all further reading be waived. 7. CITIZENS' INPUT, COMMENTS, AND SUGGESTIONS Sean Collins, representing KidsLife, a 501c3 non-profit organization, spoke about the organization's mission to promote fitness and nutrition for kids and parents. He stated the organization was forming a local unit and looking for City involvement. Mayor Ferrara invited Mr. Collins to follow up with the City Manager. 8. CONSENT AGENDA Mayor/Chair Ferrara invited members of the public who wished to comment on any Consent Agenda Item to do so at this time. No public comments were received. Council/Board Member Costello pulled Item 8.c. and declared a conflict of interest due to ownership of real property. Minutes: City CounciURedevelopment Agency Meeting Page 2 Tuesday, June 12, 2007 Action: Council/Board Member Fellows moved, and Councii/Board Member Guthrie seconded the motion to approve Consent Agenda Items 8.a. through 8.h., with the exception of Item 8.c., with the recommended courses of action. City Attorney Carmel read the Ordinance title in Item 8.h. The motion passed on the following roll-call vote: AYES: Fellows, Guthrie, Costello, Ferrara NOES: None ABSENT: Arnold 8.a. Cash Disbursement Ratification. Action: Ratified the listing of cash disbursements for the period April 16, 2007 through April 31, 2007. 8.b. Consideration of Approval of Minutes. Action: Approved the minutes of the Special (Closed Session) City Council Meeting of May 8, 2007 and the Regular City Council/Redevelopment Agency Meeting of May 8, 2007, as submitted. 8.d. Consideration of Agreement of Consultant Services for Audit Services. [COUNCIL/RDA] Action: Authorized the Mayor/Chair to enter into a three-year consultant services agreement with the audit firm of Moss, Levy & Hartzheim, Certified Public Accountants. 8.e. Consideration of Confirmation of Appointment of Interim Chief of Police. Action: Confirmed the appointment of Steve Andrews as the Interim Chief of Police. 8.f. Consideration of Appropriation of Funds for Safety Netting at Porter Baseball Field. Action: Appropriated Parkside Assessment District funds for installation of concrete, poles and safety netting between Porter Baseball Field and Parkside Park. 8.g. Consideration of a Resolution Accepting Public Improvements and Easements for Conditional Use Permit 00-019 and Parcel Map AG 00-301, Located at the South East Corner of South Courtland Street and East Grand Avenue, Constructed by E.F. Moore and Company. Action: Adopted Resolution No. 4018 as follows: "A Resolution of the City Council of the City of Arroyo Grande Accepting the Public Improvements and Easements for Conditional Use Permit 00-019 and Parcel Map AG 00-301, Located at the Southeast Corner of South Courtland Street and East Grand Avenue, Constructed by E.F. Moore and Company". , 8.h. Consideration of Adoption of an Ordinance Amending Chapter 16.60 of the Arroyo Grande Municipal Code Regarding Signs. Action: Adopted Ordinance No. 590 as follows: "An Ordinance of the Cify Council of fhe City of Arroyo Grande Amending Chapter 16.60 of the Arroyo Grande Municipal Relating to Signs". Council Member Costello stepped down from the dais on Item 8.c. due to a confiict of interest. Action: Council Member Guthrie moved, and Council Member Fellows seconded the motion to approve Consent Agenda Item 8.c, with the recommended course of action. The motion passed on the following roll-call vote: Minutes: City Council/Redevelopment Agency Meeting Page 3 Tuesday, June 12, 2007 I AYES: Guthrie, Fellows, Ferrara I NOES: None ABSENT: Arnold ABSTAIN: Costeilo 8.c. Consideration of Confirmation of Assessments for Tracts 1158, 7769, 2310, and 2236. Action: 1) Adopted Resolution No. 4014 as follows: "A Resolution of the City Council of the City of Arroyo Grande Confirming Landscaping Assessments for All Parcels Within Tract 1158"; 2) Adopted Resolution No. 4015 as follows: "A Reso/ution of the City Council of fhe City of Arroyo Grande Confirming Landscaping and Lighting Assessments for All Parcels Within Tract 1769; 3) Adopted Resolution No. 4016 "A Resolution of the City Council of the City of Arroyo Grande Confirming the Assessments for the Parkside Assessment District for All Parce/s Within Tract 2310 (Parkside Village Subdivision)"; and 4) Adopted Resolution No. 4017 as follows: "A Resolution of the City Council of the City of Arroyo Grande Confirming the Assessments for the Grace Lane Assessment District for All Parcels Within Tract 2236 (Grace Lane Subdivision)". Council Member Costello returned to the dais. 9. PUBLIC HEARINGS 9.a. Consideration of Development Code Amendment No. 06-004 to Change the Zoning of the Subject Property from Residential Rural (RR) to Single Family Residential , (SF); Applicant — City of Arroyo Grande; Location — 12.77 Acres North of East Cherry Avenue Extension (Subarea 2 of the East Village Neighborhood Plan). In response to a request by key residents directly impacted by the proposal, Associate Planner Heffernon recommended the Council continue the public hearing to the July 10, 2007 meeting. Mayor Ferrara opened the public hearing. No comments were received. Council Member Costello moved to continue the public hearing to the July 10, 2007 City Council meeting. Council Member Fellows seconded, and the motion passed on the following roll call ' vote: AYES: Costello, Fellows, Guthrie, Ferrara ', NOES: None � ABSENT: Arnold Mayor Ferrara requested, and the Council concurred, to consider Item 11.a. prior to Item 9.b. 11. NEW BUSINESS ITEMS 11.a. Consideration of FY 2007-08/FY 2008-09 Bi-Annual Budget. [COUNCIL/RDA] City Manager Adams presented the staff report and recommend the Council: 1) Adopt the attached resolution approving the FY 2007-08/FY 2008-09 Bi-Annual Budget; and 2) Approve the Minutes: City Council/Redevelopment Agency Meeting Page 4 Tuesday, June 12, 2007 proposed changes to the City's Fiscal Policies to maintain a minimum Fund Balance reserve of 15% of expenditures in the General Fund and an ongoing goals of 20%, and to pre-fund employee retirement medical benefit costs. Mayor/Chair Ferrara invited comments from those in the audience who wished to be heard on the matter, and upon hearing no public comments, he closed the public comment period. Action: Council/Board Member Costello moved to adopt a Resolution as follows: "A Resolution of the City Council of the City of Arroyo Grande Adopting Fiscal Years 2007-08 & 2008-09 Bi-Annual Budget and Making Appropriations for the Amount Budgeted". Council/Board Member Guthrie seconded, and the motion passed on the following roll call vote: AYES: Costello, Guthrie, Fellows, Ferrara NOES: None ABSENT: Arnold Action: Council/Board Member Costello moved to approve the changes to the City's Fiscal Policies. Council/Board Member Guthrie seconded, and the motion passed on the following roli call vote: AYES: Costello, Guthrie, Feilows, Ferrara NOES: None ABSENT: Arnold 9. PUBLIC HEARINGS 9.b. Consideration of Proposed Resolution of the City Council to Amend the Conservation Element of the General Plan for Creek Protection Related Policies (General Plan Amendment 07-001) and Proposed Ordinance Amending Portions of Arroyo Grande Municipal Code Chapters 16.04 and 16.44 of Title 16 to Implement Creek Setback Standards (Development Code Amendment 07-003). Acting Community Development Director McClish presented the staff report and recommended the Council: 1) Adopt Resolution to amend and add policies to the Agriculture, Conservation and Open Space Element of the General Plan regarding creek protection; 2) Introduce Ordinance to Amend Title 16, implementing creek setback standards for all creeks in the City of Arroyo Grande; and 3) Provide staff direction on other recommendations in the draft Creek Resources Protection Study. Council comments and questions ensued concerning types of open fencing that could be built in the setback areas that would not obstruct water flow; clarification concerning averaging of setback distances within the Village zoning districts; clarification on who determines when the top of bank is indistinguishable; whether the NRCS and RCD had reviewed the proposal; and clarification concerning modifications to legal non-conforming structures within the setback areas. Mayor Ferrara opened the public hearing. Minutes: City Council/Redevelopment Agency Meeting Page 5 Tuesday,June 12, 2007 Chris Diedrickson, Newman Drive, expressed concerns about creek bank erosion problems on property behind his residence and also expressed concerns about debris being left in the creek by clean-up crews. Hearing no further public comments, Mayor Ferrara closed the public hearing. Council comments and discussion ensued concerning the focus on protecting creeks to provide valuable aesthetic, biological, cultural, economic, flood control, open space resources in the City; that it is criticai to establish measurable and definable creek setbacks; that the measures identi�ed in the draft Creek Resource Protection Study for implementation of setbacks is in conjunction with the existing floodplain management regulations; that the variance process is available to deviate from the setback requirements under certain circumstances; acknowledgement that this issue is driven by past flooding events in the Oceano area and a need for a better approach to address Arroyo Grande watershed issues; support for maintaining a minimum setback of 25 feet; acknowledgement of Teresa McClish's extensive work on the creek study; the importance of keeping sediment out of the creeks; support for expanding the definition of "top of bank" as presented in the staff report; support for adding Policy C/OS2-1.13 which requires that discretionary projects, to the maximum extent practicable, maintain or increase the site's pre-development absorption of runoff to recharge groundwater; support for providing an average setback of 35 feet, where no portion of the setback is less than 25 feet within a proposed project area, within the Village zoning districts; support for Policy C/OS2-1.2 which states that bridges are preferred over arched or piped culverts; support for modifying Policy C/OS2-1.3 to strike the last sentence; a history of flooding and creek maintenance issues faced by Zone 1/1A; emphasizing the importance of a good maintenance policy for the entire watershed and recognizing that the issue is not oniy about setbacks; that this is a comprehensive approach to address issues relating to water quality, vegetation removal, erosion control, bank stabilization, and drainage and runoff. Action: Council/Board Member Costelio moved to adopt a Resolution as follows: "A Resolution ' of the City Council of the City of Arroyo Grande Approving General Plan Amendment Case No. 07-001, to Amend the 2001 Genera/ Plan Conservation Element for Creek Protection Related Policies", with the modification to Policy C/OS2-1.3 to strike the last sentence. Council/Board Member Guthrie seconded, and the motion passed on the following roll call vote: AYES: Costello, Guthrie, Fellows, Ferrara NOES: None ABSENT: Arnold Action: Council/Board Member Costello moved to introduce an Ordinance as follows: `An Ordinance of the City Council of the City of Arroyo Grande to Approve Development Code Amendment 07-003 Amending Portions of Arroyo Grande Municipal Code Chapfers 16.04 and 16.44 of Title 16 to Establish Creek Setback Standards'; as amended to include the expanded language in the definition of"top of bank" as proposed. Council/Board Member Fellows seconded, and the motion passed on the following roll call vote: Minutes: City CounciURedevelopment Agency Meeting Page 6 Tuesday, June 12, 2007 AYES: Costello, Feliows, Guthrie, Ferrara NOES: None ABSENT: Arnold Action: Council/Board Member Costello moved to direct staff to continue working on the remaining recommendations identified in the draft Creek Resources Protection Study. Council/Board Member Guthrie seconded, and the motion passed on the following roll call vote: AYES: Costello, Guthrie, Fellows, Ferrara NOES: None ABSENT: Arnold 10. CONTINUED BUSINESS ITEM None. 12. CITY COUNCIL MEMBER ITEMS a. Request to place on future agenda consideration of eliminating Viewshed Review Process. (FELLOWS) Council Member Fellows requested, and the Council concurred, to place on a future agenda discussion and consideration of eliminating the viewshed review process. 13. CITY MANAGER ITEMS None. 14. COUNCIL COMMUNICATIONS Mayor Ferrara congratulated the Police Department on the Special Olympics Torch Run; announced the League of California Cities Channel Counties Division meeting to be held on Friday, June 15`" in Goleta; and reported that he met with representative from Investec regarding proposals associated with the Five Cities Center, and that he had encouraged the representative to contact the Council Members individually to schedule tours of the property. 15. STAFF COMMUNICATIONS City Manager Adams confirmed that the City Council Budget Workshop has been scheduled for May 29`h at 6:00 p.m. in the Council Chambers. 16. COMMUNITY COMMENTS AND SUGGESTIONS John Keen, N. Elm Street, expressed concern about eliminating the viewshed review ordinance and noted that the process provides a forum to accommodate all parties involved. 17. ADJOURNMENT Mayor Ferrara adjourned the meeting at 8:20 p.m. Minutes: City Council/Redevelopment Agency Meeting Page 7 Tuesday, June 12, 2007 Tony Ferrara, Mayor/Chair ATTEST: Kelly Wetmore, City Clerk/Agency Secretary (Approved at CC Mtg!) 8.d. � pRROy� ° ��+ � INCORPORATED 9Z MEMORANDUM V m � �u�v io. iaii * c4�/iORN�P TO: CITY COUNCIL FROM: ANGELA KRAETSCH, DIRECTOR OF FINANCIAL SERVICES SUBJECT: CONSIDERATION OF APPROPRIATION OF FUNDS FOR INTERNAL REVENUE SERVICE (IRS) COSTS DATE: JUNE 26, 2007 RECOMMENDATION: It is recommended the City Council appropriate $21,341 from the General Fund, $2,992 from the Street Fund, $4,151 from the Water Fund, and $4,151 from the Sewer Fund for Internal Revenue Services costs associated with the IRS audit of calendar year 2004. FUNDING: The total cost for the changes to the City's employment taxes for calendar year 2004 is $32,635. An appropriation of $21,341 is being requested from the General Fund, $2,992 from the Street Fund, $4,151 from the Water Fund and $4,151 from the Sewer Fund. DISCUSSION: In August 2006, the Internal Revenue Service (IRS) performed an audit of the City's 2004 payroll and accounting records. The IRS determined that City issued cell phones and employer provided vehicles were taxable fringe benefits. The IRS also determined that the City had made errors in its form 1099 reporting. The IRS's original proposed adjustment amounted to $78,623. Staff was able to reduce this amount to $32,635. Staff is recommending that an appropriation of$32,635 be approved. ALTERNATIVES: The following alternatives are presented for the City Council's consideration: - Approve staff recommendation; - Do not approve staff recommendation; - Modify staff recommendation and approve; - Provide direction to staff. 8.e. � pRROy� � c9 � INCORPOR�TED 92 ° " MEMORANDUM � .�Y ,o. ,o„ * P 4��FORN� � . TO: CITY COUNCIL FROM: MICHAEL E. HUBERT, DIRECTOR OF BUILDING AND FIRE rn� � SUBJECT: CONSIDERATION OF APPROVAL OF REVISED AGREEMENT FOR MANAGEMENT, ADMINISTRATIVE AND TRAINING SERVICES WITH THE CITY OF GROVER BEACH DATE: JUNE 26, 2007 RECOMMENDATION: It is recommended that the City Council approve the revised Agreement for Management, Administrative and Training Services with the City of Grover Beach and authorize the Mayor to execute the Agreement. FUNDING: The City of Arroyo Grande shali continue to provide the services of the Fire Chief at its sole expense. The City of Grover Beach shall pay to the City of Arroyo Grande a total of seventy-nine percent (79%) of the totai actual cost of salary and benefits for a new Battalion Chief position. DISCUSSION: City Council, at its meeting of May 25, 2004, approved the concept of the fire departments of Arroyo Grande and Grover Beach both being under the leadership of the Arroyo Grande Fire Chief, and both departments being served by the Administrative Fire Captain to be hired by the City of Grover Beach. The concept of sharing a Fire Chief has been very successful, but Grover Beach has not been able to successfully recruit a full time Administrative Fire Captain. On February 14, 2007 the City Council adopted Resolution No. 3995 establishing the position of Battalion Chief to pertorm the administrative and training services for both cities. With this revised Joint Fire Services Agreement, the City of Arroyo Grande shall furnish the services of a Battalion Chief to Grover Beach in order to train and assist in the management and administration of Grover Beach's Fire Department. This Agreement, if approved, shall commence on July 1, 2007, and shall continue in full force and effect for a period of three (3) years. This Agreement shall automatically renew on an annual basis after the initial three (3) year period. Either Party may terminate this Agreement at any time, with or without cause, upon thirty (30) days prior written notice. ATTACHMENTI AGREEMENT FOR MANAGEMENT, ADMINISTRATIVE AND TRAINING SERVICES This Agreement for Management, Administrative and Training Services ("AgreemenY') is made and entered into this 1st day of July, 2007, by and between the City of Arroyo Grande, a municipal corporation (hereinafter referred to as "Arroyo Grande") and the City of Grover Beach, a municipal corporation (hereinafter referred to as "Grover Beach"). RECITALS WHEREAS, Arroyo Grande provides fire protection and emergency medical services (EMS) as provided for in California Government Code § 38600 et seq. within the jurisdictional boundaries of the City of Arroyo Grande, California; and WHEREAS, Grover Beach provides fire protection and EMS as provided for in California Government Code § 38600 et seq. within the jurisdictional boundaries of the City of Grover Beach, California; and WHEREAS, due to the proximity of Arroyo Grande to Grover Beach, mutual cost savings are available to both agencies by sharing certain specified fire protection and EMS services; and WHEREAS, on July 1, 2004, the City of Arroyo Grande and City of Grover Beach entered into an agreement to provide joint administration of fire services; and WHEREAS, on May 1, 2007, the City of Arroyo Grande, Oceano Community Services District and City of Grover Beach entered into an agreement to share certain fire equipment; and WHEREAS, the City of Arroyo Grande and City of Grover Beach have approved proposals to jointly fund a fire training position; Management and Administrative Services Agreement Page 2 NOW, THEREFORE, in consideration of the mutual covenants herein made, the Parties agree as follows: 1. Purpose. This Agreement when executed by the Parties hereto shall constitute an engagement of Arroyo Grande by Grover Beach in providing the management and training services of a Fire Chief and Battalion Chief to Grover Beach for the operation and training of its Fire Department. 2. Manaqement Services. Arroyo Grande shall furnish the management services of a Fire Chief to Grover Beach in order to operate its Fire Department. Said management services shali inc�ude the following: a. Under the direction and supervision of the City Manager of Grover Beach, supervise and provide direction when needed for fire prevention and suppression activities and EMS of Grover Beach. b. Confer with Grover Beach Fire Department personnel when required to ascertain the needs and evaluate the efficiency of the services provided by the Grover Beach Fire Department to its citizens. c. Attend and represent the Grover Beach Fire Department and implement the City of Grover Beach's policies and directives at various local and regional meetings [i.e., City Council (when required), City Manager, schools, and County Fire Chiefs, etc.]. d. Supervise the oversight and management of personnel of the Grover Beach Fire Department. e. Supervise the purchasing of materials and equipment within the budgetary constraints of Grover Beach. f. Supervise adherence to Grover Beach's City and Department policies and procedures (i.e., personnel rules, administrative policies, purchasing and budget policies, budget administration, department emergency operation policies, memorandum of understanding, vacation and sick leave policies, etc.). g. Respond to citizen complaints regarding personnel or services, requests for Management and Administrative Services Agreement Page 3 services, and inquires. h. Promote a harmonious working relationship between fire prevention and suppression personnei of each respective agency while striving to uphold each Fire DepartmenYs Mission Statements. i. Provide duty coverage for Grover Beach. j. Coordinate assignment of fire apparatus under the Public Safety Equipment Sharing Agreement entered into by both cities on May 1, 2007. 3. Administrative and Traininp Services. Arroyo Grande shall furnish the administrative and training services of a Battalion Chief to Grover Beach in order to train, and assist in the management and administration of Grover Beach's Fire Department. Said administrative and training services shall inciude the following: a. Under direction of the Fire Chief, coordinate the training program for the members of the Grover Beach Fire Department. b. Prepare and oversee said training program. c. Monitor required annual training attendance records. d. Ensure annual state and federal training mandates are met. e. Develop and maintain the Grover Beach's emergency plans and coordinate training for Grover Beach staff. , f. Provide direct supervision and administrative support for members of the Grover Beach Fire Department. g. Maintain regular office hours at the Grover Beach Fire station, to initially include a minimum of 50% of the position's staff time, but may be adjusted as recommended by the Fire Chief and agreed by mutual consent of the Arroyo Grande and Grover Beach City Managers. h. Provide duty coverage for Grover Beach. i. Serve as the Fire Chief in his or her absence. 4. Emplovees. a. All personnel hired by Grover Beach for its Fire Department shall be employees of Grover Beach, and shall at all times be subject to the direction, supervision, and control of Grover Beach directly or by the Fire Chief acting on behalf of Management and Administrative Services Agreement Page 4 Grover Beach pursuant to this Agreement. Grover Beach shall have the sole responsibility of paying the salaries, payroll taxes, including, but not limited to, Federal Social Security taxes, Federal and California Employment taxes, and all other employee-related expenses, including but not limited to Workers' Compensation Insurance and Retirement Benefits for the employees of Grover Beach. b. All personnel hired by Arroyo Grande for its Fire Department shall be employees of Arroyo Grande, and shail at all times be subject to the direction, supervision, and controt of Arroyo Grande. Arroyo Grande shall have the so►e responsibility of paying the salaries, taxes, including, but not limited to, Federal Social Security taxes, Federai and Catifornia Employment taxes and all other employee-related expenses, including, but not limited to, Workers' Compensation Insurance and Retirement Benefits regarding the employees of Arroyo Grande utilized by Arroyo Grande to provide the services under this Agreement. 5. Costs a. The City of Arroyo Grande shall provide the services of the Fire Chief at its sole expense. b. The City of Grover Beach shall pay to the City of Arroyo Grande a total of seventy-nine percent (79%) of the total actual cost of salary and benefits for the Battalion Chief position. c. The City of Arroyo Grande shail invoice the City of Grover Beach on a semi- annual basis for payment of salary and benefit costs, which shall be due and payable within thirty (30) days of receipt of the invoice. 6. Eguipment a. The City of Arroyo Grande shall provide, at its sole expense, an assigned emergency vehicle for use by the Fire Chief. b. The City of Grover Beach shail provide, at its sole expense, an assigned emergency vehicle for use by the Battalion Chief. c. Emergency response apparatus shall be coordinated consistent with the terms Management and Administrative Services Agreement Page 5 set forth in the Public Safety Equipment Sharing Agreement dated May 1, 2007. 7. Compliance with A�nlicable Statutes. Ordinances and Regulations. In pertorming the services of a Fire Chief and a Battalion Chief required under this Agreement, employees of the City of Arroyo Grande shall comply with all applicable Federal, State, and County statutes, ordinances, and regulations. 8. Insurance. I. Arroyo Grande shall furnish and keep in full force and effect during the term of this Agreement the following insurance: a. Workers' Compensation Insurance or self-insurance covering workers' compensation claims of all Arroyo Grande employees providing services on behalf of Grover Beach pursuant to this Agreement. b. Liability Insurance or self-insurance to include general liability and automotive liability for any and all property claims or suits for damages arising out of Arroyo Grande's performance under this Agreement by Arroyo Grande's elected and appointed officials, officers, agents, representatives, subcontractors, volunteers or employees. The policy shall provide coverage for bodily injury and property damage in an amount not less than one miliion dollars ($1,000,000.00) combined single limit per occurrence and shall name "The City of Grover Beach" as an additional insured. No cancellation or change of coverage shall be effective until thirty (30) days' written notice has been given to Grover Beach and an endorsement verifying such coverage shall be provided to Grover Beach upon execution of this Agreement by both Parties. II. Grover Beach shall furnish and keep in fuli force and effect during the term of this Agreement the following insurance: a. Workers' Compensation Insurance or self-insurance covering workers' compensation claims of all Grover Beach employees providing services to Arroyo Grande pursuant to this Agreement. Management and Administrative Services Agreement Page 6 b. Liability Insurance or self-insurance to include general liability and automotive liability for any and ail property claims or suits for damages arising out of Grover Beach's performance under this Agreement by Grover Beach's elected and appointed officials, officers, agents, representatives, subcontractors, volunteers or empioyees. The policy shali provide coverage for bodily injury and property damage in an amount not less than one million dollars ($1,000,000.00) combined single limit per occurrence and shall name "The City of Arroyo Grande" as an additional insured. No cancellation or change of coverage shali be effective until thirty (30) days' written notice has been given to Arroyo Grande and an endorsement verifying such coverage shall be provided to Arroyo Grande upon execution of this Agreement by both Parties. 9. Benefit. Expectations, and Performance Based Measurements. The benefits of this Agreement for Management, Administrative and Training Services, outlined work outputs, cost-avoidance issues, and related service enhancements shall be monitored bi-monthly by an oversight committee. The committee will consist of agreed upon representatives from each Party. This Agreement for Management, Administrative and Training Services benefits, work outputs, cost-avoidance opportunities or service enhancements include: a. An informal reciprocal arrangement to assist the other Party; b. The opportunity to take advantage of each Party's qualified personnel; c. The opportunity to take advantage of each Party's response areas and leading to the reduction of response times; d. The possibility of achieving economies of scale; e. The possibility of eliminating duplicate services and the opportunity to share existing programs; f. An opportunity to better serve each community without constraints of boundary limits; g. The opportunity to reflect well on community policy makers and gain community support; Management and Administrative Services Agreement Page 7 h. The improvement of citizen's demands or expectations for services, utilizing the closest resources; i. The possibility of cost avoidance in acquisition of new personnel and equipment; j. The assurance of continued local control; k. The assurance of each agency's ability to maintain its local identity; I. The potentiai pathway for future cost saving programs such as: dispatching services, vehicle maintenance, and the like; m. The sharing of specialized equipment and personnel for specialized services; and n. The immediate access to neighboring resources for planned or un-planned incidents. 10. Term of this Aqreement. The term of this Agreement shall commence on July 1, 2007, and shall continue in full force and effect for a period of three (3) years. This Agreement shall automatically renew on an annual basis after the initial three (3) year period. Either Party may terminate this Agreement at any time, with or without cause, upon thirty (30) days' prior written notice. 9. Non-assynability. This Agreement shall not be assigned by either Party without first obtaining the express written consent of the other Party. 11. Notices. Any notice which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputab�e document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice: a. GroverBeach Bob Perrault, City Manager City of Grover Beach 154 S. 8'h Street Grover Beach, CA 93433 Management and Administrative Services Agreement Page 8 b. Arroyo Grande Steven Adams, City Manager City of Arroyo Grande 214 E. Branch Street Arroyo Grande, CA 93420 11. Mutuallndemnification. a. Arroyo Grande agrees to and shall indemnify, defend and hold Grover Beach and its elected and appointed officials, officers, agents, representatives, subcontractors, volunteers or employees harmless from and against all expenses including without limitation reasonable attorney's fees and disbursements, losses or liability, including any liabilities, arising out of or loss alleged to have arisen out of the operations of the Arroyo Grande Fire Department. This indemnity provision shall survive the expiration or termination of the Agreement. b. Grover Beach agrees to and shall indemnify, defend and hoid Arroyo Grande and its elected and appointed officials, officers, agents, representatives, subcontractors, volunteers or employees harmless from and against ail expenses including without limitation reasonable attorney's fees and disbursements, losses or liability, including any liabilities, arising out of or loss alleged to have arisen out of the operations of the Grover Beach Fire Department. This indemnity provision shall survive the expiration or termination of the Agreement. 12. Entire Aqreement. Grover Beach and Arroyo Grande agree that this Agreement constitutes the sole and only Agreement between them representing the fire protection and EMS management, administrative and training services and correctly sets forth their obligations and duties with respect to each other. 13. Amendment. This Agreement may be amended only by written consent of the Parties to the Agreement. 14. No Interpretation Acaainst Draftinq. This Agreement has been negotiated at arm's length between the Parties hereto. Accordingly, any rule or law (including California Civil Code § 1635 et seq.) or legal decisions that would require interpretation, or any Management and Administrative Services Agreement Page 9 ambiguities in the Agreement against the Party that has drafted the applicable provision, is not applicable and is waived. The provisions of the Agreement shall be interpreted in a reasonable manner to effect the purpose and intent of the Parties. 15. Execute in Counterparts. The Parties hereto agree that there shall be two originals of this Agreement which shall be identical in all respects, including form and substance. The Parties may execute this Agreement in two or more counterparts, which shall, in the aggregate, be deemed an original, but all of which, together, shall constitute one and the same instrument. 16. Governinq Law. This Agreement shall be construed in accordance with and governed by the laws of the State of California. Executed at Arroyo Grande, California, on the date and year first appearing above. CITY OF ARROYO GRANDE: CITY OF GROVER BEACH: By: By: Tony Ferrara, Mayor Steven C. Lieberman, Mayor Attest: Attest: Kelly Wetmore, City Clerk Donna L. McMahon, City Clerk Approved As To Form: Approved As to Form: Timothy J. Carmel, City Attorney Martin D. Koczanowicz, City Attorney o� pRROYpc v��� � INCORPORnTE Z � � � V m � JULY 10, 10H * c4<�FORN�P MEMORANDUM TO: CITY COUNCIL FROM: ROB STRONG, COMMUNITY DEVELOPMENT DIRECTO� SUBJECT: CONSIDERATION OF APPROVAL OF LEASE AGREEMENT FOR PUBLIC PARKING AREA DATE: JUNE 26, 2007 RECOMMENDATION: It is recommended that the City Council approve and authorize the Mayor to execute a Lease Agreement between the City and Howard and Aileen Mankins and Blair and Mark Mankins for the lease of certain parking areas on the north side of East Branch Street for public off-street parking. FUNDING: The lease requires the City to pay one dollar ($1.00) per month. The City is also obligated to pay or reimburse Howard Mankins for the property taxes, currently $2,848 per year and to maintain the property. Maintenance costs vary annually. All costs associated with the lease are paid from the Downtown Parking Fund (Fund 751). Revenues for this fund are collected through an additional business license tax for businesses within the Parking Business Improvement Area (generally the Village area) and total approximately $10,000 per year. These funds are designated for parking related costs. DISCUSSION: The City leases two parking lots on the north side of East Branch Street for public off-street parking. These two lots are the Car Corral and the parking lot that has its main access from Le Point Street. The terms and conditions of the leases are the same; however, each has a different expiration date. The Car Corral lease expires in 2008. The lease for the second parking area, owned by the Mankins family, expired on December 1, 2006 and was recently discovered during research of future City parking alternatives nearby on Le Point Street. Staff has provided a new, five (5)-year lease to the Mankins family for approval. The lease contains the same terms and conditions as the current lease and has been reviewed by the City Attorney. Mr. Mankins has agreed to renewal of the lease. If the City Council authorizes the Mayor to sign the lease, it will become effective immediately and expire on November 30, 2011. ALTERNATIVES: - Authorize the Mayor to sign the lease; - Direct staff to renegotiate changes in the conditions of the lease - Provide direction to staff. Attachments: 1. Lease ATTACHMENT1 ' LEASE THIS LEASE, executed in duplicate, at Arroyo Grande, California, on the day of , 2007, by and between Howard and Aileen Mankins and Blair and Mark Mankins, hereinafter called Lessors, and the City ofArroyo Grande, hereinaftercalled Lessee. IT IS AGREED that in consideration of the rents and covenants hereinafter reserved and contained on the part of the Lessee to be paid, performed and observed, said Lessor hereby leases to Lessee that certain property in the City of Arroyo Grande, County of San Luis Obispo, State of California, more particularly described in Exhibit"A" attached hereto and incorporated herein and all upon and subject to the terms and provisions herein contained. TO HAVE AND TO HOLD the said premises, with the specified rights unto the Lessee forthe term of five (5)years, commencing December 1, 2006, at the following rent, to wit: ONE DOLLAR ($1.00) per month. It is mutually agreed that as additional consideration for the lease that Lessee shall pay to Lessor all City and County taxes assessed to the hereinafter described real property during the term of the lease or any extension period. It shall be the duty of the Lessor to secure a separate assessment and tax bill on the hereinafter described property and to provide Lessee with said tax bill no later than thirty (30) days before the San Luis Obispo County taxes become delinquent, and Lessee shall not be deemed to have breached the terms of this lease unless it is so provided. Furthermore, in the event the Lessee in not furnished with a separate tax bill forthe leased premises, Lessee will not be responsible for any penalties and interest charges because of the late payment of said taxes, although it will not be relieved of the obligation to pay said property taxes. It is mutually agreed that this lease may be terminated by either party hereto at any time during the term of the lease, upon thirty (30) days written notice to the other party. Lessee hereby agrees to keep said premises insured under its Municipal Liability Insurance Policy and agrees to hold Lessor harmless and exempt from any damage or injury to any person or property arising from the use of the premises by Lessee or from failure of Lessee to keep the premises in good condition and repair, as herein provided. All notices required by law, or by this lease,to be given to the Lessee, City of Arroyo Grande, shall be deemed made by depositing the same in the United States mail, postage prepaid and addressed as follows: City of Arroyo Grande P.O. Box 550 Arroyo Grande, CA 93421 All notices required by law, or by this lease, to be given to the Lessors shall be deemed made by depositing the same in the United States mail, postage prepaid and addressedto: Howard and Aileen Mankins, and Blair and Mark Mankins 1005 EI Camino Real Arroyo Grande, CA 93420-2588 At any time either party may notify the other of the change of address, and notices will thereafter be sent to the said changed address. Lessee agrees not to assign or transfer in whole or in part or rent or sublet any portion of leased premises without first having obtained written consent of the Lessor. It is mutually agreed that Lessee will not use, or permit said premises or any part thereof to be used, for any purpose or purposes other than the purpose or purposes for which the said premises are leased, demised and let unto the Lessee, that is for City off- street parking purposes. It is mutually agreed the Lessee will not commit, or suffer to be committed, any waste upon the said premises or any public or private nuisance; that the Lessee will not make or suffer to be made any alterations or alterations of the said premises or any part thereof, except paving, general maintenance, signs or meters, without the written consent of the Lessor first had and obtained and that any additions of the said premises, except City signs and parking meters, if any, shall become, at once, a part of the realty and belong to the Lessor. IN WITNESS WHEREOF,fhe Lessor and Lessee have hereunto set their respective hands and seals, this day of , 2007. LESSORS: HOWARD AND AILEEN MANKINS, and BLAIR AND MARK MANKINS LESSEE: CITY OF ARROYO GRANDE Tony Ferrara, Mayor Attest: Kelly Wetmore, City Clerk Approved as to form: Timothy J. Carmel, City Attorney 8.g. pRROyO pF C , INCORPORATED � � U � � T � JULV 10. 1011 * c9��FORN�P MEMORANDUM To: cinr couNCi� FROM: ROB STRONG, COMMUNITY DEVELOPMENT DIRECTOFY�S BY: TERESA MCCLISH, ASSOCIATE PLANNER SUBJECT: CONSIDERATION OF ADOPTION OF AN ORDINANCE AMENDING PORTIONS OF ARROYO GRANDE MUNICIPAL CODE CHAPTERS 16.04 AND 16.44 OF TITLE 16 TO ESTABLISH CREEK SETBACK STANDARDS (DEVELOPMENT CODE AMENDMENT 07-003) DATE: JUNE 26, 2007 RECOMMENDATION: It is recommended that the City Council adopt an ordinance amending portions of Chapters 16.04 and 16.44 of Title 16 of the Arroyo Grande Municipal Code, implementing creek setback standards for all creeks in the City of Arroyo Grande. FUNDING: The proposed FY 2007-2008/FY 2008-2009 Bi Annual Budget includes $75,000 in each year to be used as matching funds for grants pursued for creek restoration projects in conjunction with the Coastal San Luis Resource Conservation District and Salmon Enhancement. Additional funds are budgeted for drainage related projects. However, these are costs associated with recommendations of the draft Creek Resources Protection Study (draft creek study) and do not involve the proposed General Plan Amendment and Development Code Amendment. DISCUSSION: Backqround On September 27, 2005 the City Council of Arroyo Grande adopted Ordinance 572 entitled "An Interim Urgency Ordinance of the City Council of the City of Arroyo Grande Suspending Acceptance and Processing of Applications for Development of any Portion of Property Immediately Adjacent to Arroyo Grande Creek, Tally Ho Creek, Meadow Creek or Creek Tributaries within the City of Arroyo Grande". Pursuant to Government Code Section 65858(a), the initial Interim Urgency Ordinance was effective for a 45-day period ending November 11, 2005, and was extended for ten (10) months and fifteen (15) days, by adoption of Ordinance 574 on November 8, 2005. On August 26, 2006, the moratorium on development near creeks was extended for one year by adoption of Ordinance 580. CITY COUNCIL DCA 07-003: ORDINANCE ESTABLISHING CREEK SETBACK STANDARDS JUNE 26, 2007 PAGE 2 Discussion After many informal meetings and workshops with stakeholders, other affected agencies and property owners, staff released the Draft Creek Resources Protection Study on May 25, 2007 (draft creek study). On June 5, 2007, the Planning Commission made recommendations to the City Council regarding the first two of a total of eight recommendations in the Creek Study: to amend the General Plan and adopt a creek setback ordinance. The City Council adopted the General Plan Amendment and introduced the proposed creek setback ordinance on June 12, 2007 which included the following revision to the definition of top of bank: "Top ofbank"means'the highesYelevation of land which confines'-the flow ofwater to the channel. Foc areas where the top of-bank is not tlistinauishable, the edqe of floodwav shall"be used:as the'top of bank. A summary of the ordinance (attached) is provided below. Development as defined above would be prohibited in the setback area. • Minimum Development Setback range: 50 feet for Meadow Creek and East Fork of Meadow Creek; 35 feet for Tally Ho and Arroyo Grande Creeks; and 25 for all other creeks identified on the Conservation Element Creeks Map . Within the Village zoning districts, through the use of a conditional use permit, setbacks can provide for an average of 35 feet, where no portion of the setback is less than 25 feet within a proposed project area. Any area beyond 35 feet used for averaging must be used as setback area where development is prohibited. . Existing agricultural operations are exempt from creek setback standards. . In comparison to alternatives in the draft creek study, the proposed regulations are simple to implement and more restrictive since development is prohibited (except for certain fences) in the setback area. • It should be noted that there may be enforcement issues associated with the new setback regulations because many activities that are prohibited within the setback (grading, pavement, small storage areas, etc.) do not require formal City permitting and will be discovered only through careful observation or citizen complaint. • In comparison with other alternatives in the draft creek study, the proposal does not include an additional overlay district; the regulation would be implemented in conjunction with existing floodplain management regulations. • The only process for setback deviation is through a variance which requires strict statutory findings that are considered much more difficult to make in comparison to a process which allows deviation through a conditional use permit. Setback averaging within the Village area would require review by conditional use permit and based upon considerations from a Phase I archeological report, a hydrogeomorphology report and a biology report and any mitigation for restoration. • There is no "buffer managemenY' criteria to regulate use within the riparian corridor, within the setback area and for adjacent areas outside the setback. CITY COUNCIL DCA 07-003: ORDINANCE ESTABLISHING CREEK SETBACK STANDARDS JUNE 26, 2007 PAGE 3 Alternatives for these criteria that would allow certain development (driveways, decks, etc.) to occur in the setback area, for example, are included in Chapter Five of the draft creek study. However, such provisions require careful consideration to enable the appropriate balance of development design flexibility and creek protection. PUBLIC COMMENTS: A public notice was sent to all property owners with properties adjacent to creeks and a 1/8 page public notice was placed in The Tribune. Public hearings on the proposed ordinance were held on June 5, 2007 for the Planning Commission and June 12, 2007 for the City Council. Staff also held public workshops on May 31, 2006 and May 30, 2007. ENVIRONMENTAL ASSESSMENT: Staff has reviewed this project in compliance with the California Environmental Quality Act, and has found that there are no anticipated impacts on the environment and a Negative Declaration has been prepared. ALTERNATIVES: The following alternatives are provided for City Council consideration: 1. Adopt the ordinance approving Development Code Amendment 07-003; 2. Modify and re-introduce the ordinance; 3. Do not adopt the ordinance and provide direction to staff. ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE TO APPROVE DEVELOPMENT CODE AMENDMENT 07-003 AMENDING PORTIONS OF ARROYO GRANDE MUNICIPAL CODE CHAPTERS 16.04 AND 16.44 OF TITLE 16 TO ESTABLISH CREEK SETBACK STANDARDS WHEREAS, the City Council adopted the updated General Plan which became effective November 10, 2001 and requires a comprehensive review and necessary revisions to the Arroyo Grande Municipal Code and Zoning Map for consistency, in accordance with Government Code Section 65860; and WHEREAS, the 2001 General Plan include a Agricultural, Conservation and Open Space Element which include the following principals: . Resources that are irretrievable and/or irreplaceable need to be protected and preserved. . Individuals and the community have a responsibility to future generations as well as to wildlife to preserve and protect finite natural resources. . Resource lands contribute to overall public health, safety and welfare beyond provision of basic necessities such as food, fiber and livelihood. . Land Use and urban development shall be managed and limited to that which can be sustained by the available resources and serviced by the circulation and other infrastructure systems; and WHEREAS, Conservation and Open Space objective "C/OS2" of the Agricultural, Conservation and Open Space Element in the 2001 General Plan, is to "Safeguard important environmental and sensitive biological resources contributing to healthy, functioning ecosystem'; and WHEREAS, on July 12, 2005 the City Council of Arroyo Grande, by consensus, directed staff to evaluate the City's regulations, practices and procedures related to creek setback requirements and the implementation of related 2001 General Plan policies in the Agriculture, Conservation and Open Space Element; and WHEREAS, on September 27, 2005 the City Council of Arroyo Grande, adopted Ordinance 572 entitled "An Interim Urgency Ordinance of the City Council of the City of Arroyo Grande Suspending Acceptance and Processing of Applications for Development of any Portion of Property Immediately Adjacent to Arroyo Grande Creek, Tally Ho Creek, Meadow Creek or Creek Tributaries within the City of Arroyo Grande" (hereinafter sometimes referred to as the "suspension of creek property developmenY'), which Ordinance expired forty-five days from the date of its adoption pursuant to Government Code Section 65858(a); and WHEREAS, on November 8, 2005, the City Council of Arroyo Grande, adopted Ordinance 574 entitled "An Interim Urgency Ordinance of the City Council of Arroyo Grande to extend the suspension of acceptance and processing of New Applications for Development of any ORDINANCE NO. PAGE 2 Portion of Property Immediately Adjacent to Arroyo Grande Creek, Tally Ho Creek, Meadow Creek or Creek Tributaries within the City of Arroyo Grande" which ordinance expired 10 months and 15 days from the date of its adoption pursuant to Government Code Section 65858(a); and WHEREAS, on August 22, 2006, the City Council held a duly noticed public hearing and adopted Ordinance No. 580 extending the suspension of creek property development for a period of one year, pursuant to Government Code Section 65858(a). WHEREAS, on May 25, 2007, the City released a draft Creek Resources Protection Study that includes research and recommendations concerning the necessity for creek buffers that contribute to streambank stabilization, allow for vegetative cover and reduction of water temperature, offer a setback distance for intensive uses, provide a source of food, nesting cover, and shelter for wildlife, intercept pollutants and manage other environmental concerns, and increase environmental sustainability; and WHEREAS, on June 5, 2007, the Planning Commission held a duly noticed public hearing and recommended that the City Council adopt a resolution for General Plan Amendment 07-001 that amends the Conservation Element of the General Plan for creek protection policies and an ordinance to amend the Municipal Code Chapters 16.04 and 16.44 to establish creek setback standards; and WHEREAS, on June 12, 2007, the City Council held a duly noticed public hearing to consider the proposed resolution for General Plan Amendment 07-001 that amends the Agriculture, Conservation and Open Space Element of the General Plan for creek protection policies and an ordinance to amend the Municipal Code Chapters 16.04 and 16.44 to establish creek setback standards; and WHEREAS, after consideration of all testimony and all relevant evidence, the City Council has determined that the following Development Code Amendment findings can be made in an affirmative manner: A. The proposed revision to the Municipal Code is consistent with the goals, objectives, policies and programs of the general plan land use and agriculture, conservation and open space elements, and is necessary and desirable to implement to provisions of the General Plan. B. The proposed revision to the Municipal Code will not adversely affect the public health, safety, and welfare or result in an illogical land use pattern since the proposed changes allows the city to provide safety from flooding and protect the city's creek resources. C. The proposed revision to the Municipal Code is consistent with the purpose and intent of the flood protection management overlay district. ORDINANCE NO. PAGE 3 D. The City has conducted an environmental review and has found that it can be seen with certainty that there is no possibility that the proposed Ordinance will have an effect on the environment and therefore has prepared a Negative Declaration. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Arroyo Grande, as follows: SECTION 1: The above recitals and findings are true and correct. SECTION 2: Arroyo Grande Municipal Code Section 16.04.070.0 is hereby amended in part and Section 16.44.050 is hereby amended in its entirety as shown in Exhibit "A" attached hereto and incorporated herein by this reference. SECTION 3: If any section, subsection, subdivision, paragraph, sentence, or clause of this Ordinance or any part thereof is for any reason held to be unlawFul, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, or clause thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, or clause be declared unconstitutional. cECTIoN d Upon adoption of this Ordinance, the Director of Administrative Services shall file a Notice of Determination. SECTION 5: A summary of this Ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text of the proposed Ordinance shall be posted in the office of the Director of Administrative Services/City Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the names of those City Council Members voting for and against the Ordinance shall be published again, and the Director of Administrative Services/City Clerk shall post a certified copy of the full text of such adopted Ordinance. SECTI�N s: This Ordinance shall take effect thirty (30) days after its adoption. On motion by Councilmember , seconded by Council Member , and by the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Ordinance was introduced this 12`h day of June 2007. ORDINANCE NO. PAGE 4 TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY ORDINANCE NO. PAGE 5 EXHIBIT "A" DEVELOPMENT CODE AMENDMENT 07-003 16.04.070.0 (Note to codifier: amend the definition for "DevelopmenY' and add the definitions for "Riparian habitaY'and "Top of bank"] "DevelopmenY' means ; the construction, reconstruction, conversion, structural alteration, relocation, or enlargement of any structure; anv use, chanqe in use or extension of use of anv buildinqs or land; any mining, excavation, landfill or land disturbance includinq anv clearinq or qradinq or other movement of land; and any use or extension of the use of land. For purposes of environmental and discretionarv permit review, the term development shall include the division or a adiustment of parcels of land. "Riparian habitat" means veqetation qrowinq close to a watercourse or sprinq that is qenerally critical for wildlife cover, fish food orqanisms, stream nutrients and larqe orqanic debris, and for streambank stabilitv. "Top of bank" means the hiqhest elevation of land which confines the flow of water to the channel. For areas where the top of bank is not distinquishable, the edqe of floodwav shall be used as the top of bank. 16.44.050 Floodplain management and Creek Protection (FM�District (unmapped) A. Statement of Purpose and Intent. It is the purpose of this section to promote the public health, safety, and general welfare, to safequard important environmental and sensitive bioloqical resources contributinq to healthv, functioninq ecosvstem and to minimize public and private losses due to flood conditions in specific areas by provisions designed to: 1. Protect human life and health; 2. Minimize expenditure of public money for costly flood control projects; 3. Minimize the need for rescue and relief efforts associated with flooding and generally undertaken at the expense of the general public; 4. Minimize prolonged business interruptions; 5. Minimize damage to public facilities and utilities such as water and gas mains, electric, telephone and sewer lines; and streets and bridges located in areas of special flood hazard; 6. Help maintain a stable tax base by providing for the sound use and development of areas of special flood hazard so as to minimize future blighted areas caused by flood damages; 7. Ensure that potential buyers are notified that property is in an area of special flood hazard; 8. Ensure that those who occupy the areas of special flood hazard assume responsibility for their actions; 9. Implement qeneral plan policies to enhance natural creek functions and values bv providinq erosion control, sedimentation prevention, enhancement of riparian habitat corridors, water qualitv protection and aesthetic and recreational opportunities. - ORDINANCE NO. PAGE 6 B. Methods of Reducing Flood Losses and providinq creek qrotection. In order to accomplish its purposes, this section includes the following methods and provisions: 1. Restrict or prohibit uses which are dangerous to health, safety and property due to water or erosion hazards, or which result in damaging increases in erosion or flood heights or velocities; 2. Require that uses vulnerable to floods, including facilities which serve such uses, be protected against flood damage at the time of initial construction; 3. Control the alteration of natural flood plains, stream channels, riparian habitat, and natural protective barriers, which help accommodate or channel flood waters; 4. Control filling, grading, dredging, and other development which may increase flood damage or deqrade riparian habitat; 5. Prevent or regulate the construction of flood barriers, or incremental floodolain constriction which will unnaturally divert flood waters or which may increase flood hazards in other areas. 6. Creeks shall remain in their natural state and shall not be altered unless aqproved bv the Citv Council in coniunction with an aqplication for a conditional use permit and permitted bv other responsible apencies. C. General Provisions for Creek Protection. 1. Applicabilitv. The section shall apqly to all creeks and drainaqe wavs, that are identified on the General Plan Conservation and Open Space Element Creek Map. a) Minimum Development Setbacks for Creek vards and Drainaqe Wavs: Development, as defined in this Title. includinq fences and walls, shall be setback from the top of bank or edqe of riqarian habitat, whichever is farther from the creek flow line. i) Arrovo Grande Creek and Tallv Ho Creek: a minimum setback of 35 feet. For Properties located within the Villaqe Core Downtown (VCD) or Villaqe Mixed Use (VMU) districts, throuqh application of a conditional use permit and based upon consideration of recommendations from a Phase I Archeoloqical Studv; a bioloqv report; and a hvdroqeomorpholoqv report, the setback mav provide for an averaqe of 35 feet within a proposed proiect area but under no circumstance shall anv portion be less than 25 feet. ii) Meadow Creek and East Fork of Meadow Creek: a minimum setback of 50 feet. iii) All other Creeks and Drainaqe Wavs: a minimum setback of 25 feet. 2. Fences and other structures such as culverts, walls and bridqes which must be constructed within the floodwav shall be desiqned in accordance with all aoplicable best manaqement practices so as to prevent an obstruction or diversion of flood and drainaqe flow and to minimize adverse effects to natural riaarian habitat. Fences mav be permitted in the Develooment setback if desiqned to allow for wildlife aassaqe and the unimpeded flow of water. 3. Clearinq of siqnificant veqetation canopy cover or herbaceous qround cover removal of anv native plant species within the riaarian area is qrohibited within the Setback area A tree permit mav be reQUested for trees ootentiallv affectinq public safety 4. Existinq apricultural operations are exempt from creek setback standards established herein. ORDINANCE NO. PAGE 7 5. Exceptions to the repuirements established in this section can be made onlv upon a findinq that its aaplication would violate federal and state law G D. General Provisions for Floodolain Manaqement: 1 . Land to which this section applies. This section shall apply to all areas of special flood hazards within the jurisdiction of the city. 2. Basis for Establishing the Areas of Special Flood Hazard. The areas of special flood hazard identified by the Federal Insurance Administration (FIA) of the Federal Emergency Management Agency (FEMA) in the Flood Insurance Study (FIS) dated March 19, 1984 and accompanying Flood Insurance Rate Maps (FIRMs) and Flood Boundary and Floodway Maps (FBFMs), dated September 19, 1984, and all subsequent amendments and/or revisions, are adopted by reference and declared to be a part of this section. These areas are the minimum area of applicability of this section and may be supplemented by studies for other areas which allow implementation of this section and which are recommended to the city by the floodplain administrator. The study, FIRMs and FBFMs are on file at the Department of Public Works, 214 East Branch Street, City of Arroyo Grande, California 93421. 3. Compliance. No structure or land shall hereafter be constructed, located, extended, converted or altered without full compliance with the term of this section and other applicable regulations. Violation of the requirements (including violations of conditions and safeguards established in connection with conditions) shall constitute a misdemeanor. Nothing herein shall prevent the city from taking such lawful action as is necessary to prevent or remedy any violation. 4. Abrogation and Greater Restrictions. This section is not intended to repeal, abrogate or impair any existing easements, covenants or deed restrictions. However, where this section and another ordinance, easement, covenant or deed restriction conflict or overlap, whichever imposes the more stringent restrictions shall prevail. 5. Interpretation. In the interpretation and application of this section, all provisions shall be: a) Considered as minimum requirements; b) Liberally construed in favor of the governing body; and c) Deemed neither to limit nor repeal any other powers granted under state statutes. 6. Warning and Disclaimer of Liability. The degree of flood protection required by this section is considered reasonable for regulatory purposes and is based on scientific and engineering considerations. Larger floods can and will occur on rare occasions. Flood heights may be increased by man-made or natural causes. This section does . not imply that land outside the areas of special flood hazards or uses permitted within such areas will be free from flooding or flood damages. This section shall not create liability on the part of city, any officer or employee thereof, the state of California, or the Federal Insurance Administration, Federal Emergency Management Agency, for any flood damages that result from reliance on this section or any administrative decision lawfully made hereunder. �E. Administration. 1. Establishment of Development Permit. A development permit shall be obtained before any construction or other development begins within any area of special flood hazard established in subsection C of this section. Application for a development ORDINANCE NO. PAGE 8 within an area of special hazard shall be made on forms furnished by the floodplain administrator and may include, but not be limited to: plans in duplicate drawn to scale showing the nature, location, dimensions and elevation of the area in question; existing or proposed structures, fill, storage of materials, drainage facilities; and the location of the foregoing. Specifically, the following information is required: a) Proposed elevation in relation to mean sea level, of the lowest floor (including basement) of all structures in Zone AO, elevation of highest adjacent grade and proposed elevation of lowest floor of all structures; or proposed elevation in relation to mean sea level to which any nonresidential structure will be floodproofed, if required in subsection (E)(1)(c)(iii) of this section. b) All appropriate certifications listed in subsection (D)(3)(d) of this section; c) Description of the extent.to which any watercourse will be altered or relocated as a result of proposed development. 2. Designation of the Floodplain Administrator. The director of public works appointed to administer, implement and enforce this section. 3. Duties and Responsibilities of the Floodplain Administrator. The duties and responsibilities of the floodplain administrator shall include, but not be limited to the following: a) Permit Review. Review all development permits within the special hazard areas to determine that: i) Permit requirements of this section have been satisfied, ii) The site is reasonably safe from flooding, and iii) The proposed development does not adversely affect the carrying capacity of areas where base flood elevations have been determined but a floodway has not been designated. For purposes of this section, "adversely affects" means that the cumulative effect of the proposed development when combined with all other existing and anticipated development will increase the water surface elevation of the base flood more than one foot at any point. iv. All other required State and Federal permits have been obtained. b) Review and Use of Any Other Base Flood Data. When base flood elevation data has not been provided in accordance with subsection (C)(2) of this section, the floodplain administrator shall obtain, review and reasonably utilize any base flood elevation and floodway data available from a federal or state agency, or other source, in order to administer subsection E of this section. c) Notification of Other Agencies. Whenever there is an alteration or relocation of a watercourse: i) Notify adjacent communities and the California Department of Water Resources prior to alteration or relocation; ii) Submit evidence of such notification to the Federal Insurance Administration, Federal Emergency Management Agency; iii) Assure that the flood carrying capacity within the altered or relocated portion the watercourse is maintained. d) Documentation of Floodplain Development. Obtain and maintain for public inspection and make available as needed the following: i) Certification required by subsection (E)(1)(c)(i) of this section (lowest floor elevations); ORDINANCE NO. PAGE 9 ii) Certification required by subsection (E)(1)(c)(ii) of this section (elevation or floodproofing of nonresidential structures); iii) Certification required by subsection (E)(1)(c)(iii) of this section (wet floodproofing standard); iv) Certification of elevation required by subsection (E)(3)(b) of this section (subdivision standariis); v) Certification required by subsection (E)(6)(a) of this section (floodway encroachments). e) Map Determinations. Make interpretations where needed, as to the exact location of the boundaries of the areas of special flood hazard, for example, where there appears to be a conflict between a mapped boundary and actual field conditions. The person contesting the location of the boundary shall be given a reasonable opportunity to appeal the interpretation as provided in subsection F of this section. f) Take action to remedy violations of this section as specified in subsection (C)(3) of this section. g) Base Flood Elevation Chanqes due to phvsical alterations: Such submissions are necessarv so that upon confirmation of these phvsical chanqes affectinq floodinq conditions, risk premium rates and floodplain manaqement requirements are based on current data. i) Within 6 months of information becominq available or aroiect completion, whichever comes first, the floodqlain administrator shall submit or assure that the permit applicant submits technical or scientific data to FEMA for a Letter of Map Revision (LOMR). iil All LOMR's for flood control proiects are approved prior to issuance of buildinp permits. Buildinq permits must not be issued based on Conditional Letters of Map Revision (CLOMR's). Approved CLOMR's allow construction of the proposed flood control prolect and land preparation as specified in the "start of construction" definition. �F. Provisions for Flood Hazard Reduction. In addition to the development standards of the district with which the FHCP district has been combined and the standards contained in Chapters 16.48 and 16.52, the standards contained in this section shall apply. In the event of a conflict in the applicable regulations, the provisions of this section shall govern. 1. No fill shall be qermitted within the 100-vear floodplain of Creeks or Drainaqe wavs unless appropriate mitiqation measures are implemented in accordance with the California Environmental Qualitv Act (CEQA) and the Citv's CEQA Guidelines and the followinq standards: a) The fill is for the minimum area to accommodate a structure and allow for a five (5) foot border area which shall have a side slope of 4:1 or flatter when no native riparian landscapinq or erosion control can be provided: b) All trees shall be arotected or mitiqated: c) The fill will not encroach within the develoqment setback area of a creek: dl The fill will not result in adverse environmental impacts on the creek. �2.Standards of Construction. In all areas of special flood hazards the following standards are required: a) Anchoring. i) All new construction and substantial improvements within special flood ORDINANCE NO. PAGE 10 hazard areas shall be adequately anchored to prevent flotation, collapse or lateral movement of the structure resulting from hydrodynamic and hydrostatic loads, including the effects of buoyancy. ii) All manufactured homes shall meet the anchoring standards of subsection (E)(4) of this section. b) Construction Materials and Methods. All new construction and substantial improvement with special flood hazard areas shall be constructed; i) With materials and utility equipment resistant to flood damage; ii) Using methods and practices that minimize flood damage; iii) With electrical, heating, ventilation, plumbing and air conditioning equipment and other service facilities that are designed and/or located so as to prevent water from entering or accumulating within the components during conditions of flooding; and if iv) Within Zones AH or AO, so that there are adequate drainage paths around structures on slopes to guide flood waters around and away from proposed structures. c) Elevation and Floodproofing. See Section 16.04.070 for definitions for "basement," "new construction," "substantial damage" and "substantial improvement." i) Residential construction, new or substantial improvement, shall have the lowest floor, including basement: (A) In an AO zone, elevated above the highest adjacent grade to a height exceeding the depth number specified in feet on the FIRM by at least one foot, or elevated at least three feet above the highest adjacent grade if no depth number is specified; (B)In an A zone, elevated at least one foot above the base flood elevation, as determined by the community; (C)In all other zones, elevated at least one foot above the base flood elevation. Upon the completion of the structure, the elevation of the lowest floor including basement shall be certified by a registered professional engineer or surveyor, and verified by the se�#�r building inspector to be properly elevated. Such certification or verification shall be provided to the floodplain administrator. (D)For floodplain management purposes the term "lowest floor" means the lowest floor of the lowest enclosed area, including basement definition. An unfinished or flood resistant enclosure below the lowest floor that is usable solely for parking of vehicles, building access or storage in an area other than a basement area, is not considered a building's lowest floor provided it conforms to applicable non-elevation design requirements, including, but not limited to: (1) The floodproofing standard, in subsection (E)(1)(c)(iii) of this section; (2) The anchoring standards in subsection (E)(1) of this section; (3) The construction materials and methods standards in subsection (E)(1)(b) of this section; (4) The standards for utilities in subsection (E)(2) of this section. ii) Nonresidential construction, new or substantial improvement, shall either be elevated to conform with subsection (E)(1)(c) of this section or together with ORDINANCE NO. PAGE 11 attendant utility and sanitary facilities; (A) Be floodproofed, below the elevation recommended under subsection (E)(1)(C)(i) of this section so that the structure is watertight with walls substantially impermeable to the passage of water; (B) Have structural components capable of resisting hydrostatic and hydrodynamic loads and effects of buoyancy; and (C) Be certified by a registered professional engineer or architect that the standards of this subsection are satisfied. Such certification shall be provided to the floodplain administrator. iii) All new construction and substantial improvement with fully enclosed areas below the lowest floor (excluding basements) that are usable solely for parking of vehicles, building access or storage, and which are subject to flooding, shall be designed to automatically equalize hydrostatic flood forces on exterior walls by allowing for the entry and exit of floodwater. Designs for meeting this requirement must exceed the following minimum criteria: (A)Be certified by a registered professional engineer or architect; or (B)Have a minimum of two openings having a total net area of not less than one square inch for every square foot of enclosed area subject to flooding. The bottom of all openings shall be no higher than one foot above grade. Openings may be equipped with screens, louvers, valves or other coverings or devices provided that they permit the automatic entry and exit of floodwater. iv) Manufactured homes shall also meet the standards in subsection (E)(4) of this section. �3. Standards for Utilities. a) All new and replacement water supply and sanitary sewage systems shall be designed to minimize or eliminate: i) Infiltration of flood waters into the systems; and ii) Discharge from the systems into flood waters. b) On-site waste disposal systems shall be located to avoid impairment to them, or contamination from them during flooding. �4. Standards for Subdivisions. a) All preliminary subdivision proposals shall identify the flood hazard area and the elevation of the base flood.. b) All subdivision plans within special flood hazard areas will provide the elevation of proposed structure(s) and pad(s). If the site is filled above the base flood elevation, the lowest first floor and pad elevations shall be certified by a registered professional engineer or surveyor and provided to the floodplain administrator. c) All subdivision proposals shall be consistent with the need to minimize flood damage. d) All subdivision proposals shall have public utilities and facilities such as sewer, gas, electrical and water systems located and constructed to minimize flood damage. e) All subdivisions shall provide adequate drainage to reduce exposure to flood hazards. 4.5. Standards for Manufactured Homes. a) All manufactured homes that are placed or substantially improved within Zones ORDINANCE NO. PAGE 12 A1-30, AH, AE, and AR on the communitys Flood Insurance Rate Map, on sites located: i) Outside of a manufactured home park or subdivisions; ii) In a new manufactured home park or subdivision; iii) In an expansion to an existing manufactured home park or subdivision; or iv) In an existing manufactured home park or subdivision on a site upon which a manufactured home has incurred substantial damage as the result of a flood, shall be elevated on a permanent foundation such that the lowest floor of the manufactured home is elevated at least one foot above the base flood elevation, and shall be securely fastened to an adequately anchored foundation system to resist flotation collapse and lateral movement. b) All manufactured homes to be placed or substantially improved on sites in an existing manufactured home park or subdivision within Zones A1-30, AH, AE, AR on the community's Flood Insurance Rate Map that are not subject to the provisions of subsection (E)(4)(a) of this section will be securely fastened to an adequately anchored foundation system to resist foundation collapse and lateral movement, and will be elevated so that either the: i) Lowest floor of the manufactured home is at least one foot above the base flood elevation; or ii) Manufactured home chassis is supported by reinforced piers or other foundation elements of at least equivalent strength that are no less than thirty- six (36) inches in height above grade. �6. Standards For Recreational Vehicles. a) All recreational vehicles placed on sites within Zones A1-30, AH, AE, and AR on the community's Flood Insurance Rate Map will either: i) Be on the site for fewer than one hundred eighty (180) consecutive days, and be fully licensed and ready for highway use. A recreational vehicle is ready for highway use if it is on its wheels or jacking system, is attached to the site only by quick disconnect type utilities and security devices, and has no permanently attached additions; or ii) Meet the permit requirements of subsection D of this section and the elevation and anchoring requirements for manufactured homes in subsection (E)(4)(a) of this section. �7. Floodways. Located within areas of special flood hazard established in subsection (C)(2) of this section are areas designated as floodways. Since the floodway is an extremely hazardous area due to the velocity of flood waters which carry debris, potential projectiles, and erosion potential, the following provisions apply: a) Prohibit encroachments, including fill, new construction, substantial improvement, and other new development unless certification by a registered professional engineer or architect is provided demonstrating that encroachments shall not result in any increase in the base flood elevation during the occurrence of the base flood discharge. b) If subsection (E)(6)(a) of this section is satisfied, all new construction, substantial improvement, and other proposed new development shall comply with all other applicable flood hazard reduction provisions of subsection E of this section. �G. Variances and Appeals. 1. The planning commission of the city shall hear and decide appeals and requests for ORDINANCE NO. PAGE 13 variances from the requirements of this section. 2. The planning commission shall hear and decide appeals regarding any decision or determination made by the floodplain administrator in the enforcement or administration of this section may be appealed to the city council. 3. The variance criteria set forth in this section are based on the general principle that variances pertain to a piece of property and are not personal in nature. A variance may be granted for a parcel of property with physical characteristics so unusual that complying with the requirements of this section would create an exceptional hardship to the applicant or the surrounding property owners. The characteristics must be unique to the property and not be shared by adjacent parcels. The unique characteristic must pertain to the land itself, not to the structure, its inhabitants, or the property owners. 4. Review of Variance Requests. In passing upon requests for creek setback or flood manaqement- related variances, the planning commission shall consider all technical evaluations, all relevant factors, standards specified in other subsections of this section, and t#e: a) Potential impacts to cultural, bioloqical, and hvdroloqical resources have been adequatelv mitiqated based on consideration of a phase I archeoloqical studv, a bioloqy report and a hvdroqeomorpholoaist report. a}bZ Danger that materials may be swept onto other lands to the injury of others; �}c� Danger of life and property due to flooding or erosion damage; s�-r� Susceptibility of the proposed facility and its contents to flood damage and the effect of such damage on the existing individual owner and future owners of the property; d�� Importance of the services provided by the proposed facility to the community; e�f� Necessity to the facility of a waterfront location, where applicable; #� g� Availability of alternative locations for the proposed use which are not subject to flooding or erosion damage; g�� Compatibility of the proposed use with existing and anticipated development; k►� � Relationship of the proposed use to the comprehensive plan and floodplain management program for that area; +� j� Safety of access to the property in time of flood for ordinary and emergency vehicles; }} � Expected heights, velocity, duration, rate of rise, and sediment transport of the, flood waters expected at the site; and Ic3 � Costs of providing governmental services during and after flood conditions, including maintenance and repair of public utilities and facilities such as sewer, gas, electrical, and water system, and streets and bridges. 5. Conditions for Variances. a) Generally, variances may be issued for new construction, substantial improvement, and other proposed new development to be erected on a lot of one-half acre or less in size contiguous to and surrounded by lots with existing structures constructed below the base flood level, providing that the procedures of subsection D and E of this section have been fully considered. As the lot size increases beyond one-half acre, the technical justification required for issuing the variance increases. b) Variances may be issued for the repair or rehabilitation of historic structures ORDINANCE NO. PAGE 14 upon a determination that the proposed repair or rehabilitation will not preclude the structure's continued designation as an historic structure and the variance is the minimum necessary to preserve the historic character and design of the structure. c) Variances shall not be issued within any mapped regulatory floodway if any increase in flood levels during the base flood discharge would result. d) Variances shall only be issued upon a determination that the variance is the minimum necessary considering the flood hazard, to afford relief. "Minimum necessary" means to afford relief with a minimum of deviation from the requirements of this section. For example, in the case of variances to elevation requirement, this means the city need not grant permission for the applicant to build at grade, or even to whatever elevation the applicant proposes, but only to that elevation which the city believes will both provide relief and preserve the integrity of the local ordinance. e) Variances shall only be issued upon a: i) Showing of good and sufficient cause; ii) Determination that failure to grant the variance would result in exceptional hardship to the applicant; and iii) Determination that the granting of a variance will not result in increased flood heights, additional threats to public safety, or extraordinary public expense, create a nuisance cause fraud or victimization of the public, or conflict with existing local laws or ordinances. "Hardship," as used in this subsection, means the exceptional hardship that would result from a failure to grant the requested variance. The hardship must be exceptional, unusual, and peculiar to the property involved. Economic or financial hardship alone is not exceptional. Inconvenience, aesthetic considerations, physical handicaps, personal preferences, or the disapproval of one's neighbors likewise cannot, as a rule, qualify as an exceptional hardship. "Public safety and nuisance," as used in this subsection, means that the granting of a variance must not result in anything which is injurious to safety or health of an entire community or neighborhood, or any considerable number of persons, or unlawfully obstructs the free passage or use, in the customary manner, of any navigable lake, or river, bay, stream, canal or basin. "Fraud and victimization," as used in this subsection, means that the variance granted must not cause fraud on or victimization of the public. In examining this requirement, the city will consider the fact that every newly constructed building adds to government responsibilities and remains a part of the community for fifty (50) to one hundred (100) years. Buildings that are permitted to be constructed below the base flood elevation are subject during all those years to increased risk of damage from floods, while future owners of the property and the community as a whole are subject to all the costs, inconvenience, danger and suffering that those increased flood damages bring. In addition, future owners may purchase the property, unaware that it is subject to potential flood damage, and can be insured only at very high flood insurance rates. ORDINANCE NO. PAGE 15 f) Variances may be issued for new construction, substantial improvement, and other proposed new development necessary for the conduct of a functionally dependent use provided that the provisions of subsection (F)(5)(a) through (e) of this section are satisfied and that the structure or other development is protected by methods that minimize flood damages during the base flood and does not result in additional threats to public safety and does not create a public nuisance. g) Upon consideration of the factors of subsection (F)(4) of this section and the purposes of this section, the planning commission may attach such conditions to the granting of variances as it deems necessary to further the purposes of this section. 6. Any applicant to whom a variance is granted shall be given written notice that: a) The issuance of a variance to construct a structure below the base flood level can result in substantially increased premium rates for flood insurance, as determined by their insurance carrier, b) Such construction below the base flood level increases risks to life and property. 7. The floodplain administrator will maintain a record of all variance actions, including justification for their issuance, and report such variances issued in its biennial report submitted to the Federal Insurance Administration, Federal Emergency Management Agency. � 8.h. E pRROy� � C� ' INCORVOR�TED 9 u o MEMORANDUM � NLY t0. 1011 * . c4��FOR�\P TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER � SUBJECT: CONSIDERATION OF GREASE CONTROL PROGRAM AND INTERAGENCY AGREEMENT WITH THE SOUTH SAN LUIS OBISPO � COUNTY SANITATION DISTRICT (SSLOCSD) I DATE: JUNE 26, 2007 RECOMMENDATION: It is recommended the Council: A. request the South San Luis Obispo County Sanitation District assist in coordinating a Grease Control Program for all food service facilities located within the City; B. approve the attached interagency agreement; and C. authorize the Mayor to execute the agreement. FUNDING: The cost of the program would be reimbursed proportionately by the Parent Agencies of the District based upon the number of businesses in the program. The current breakdown is 50% City of Grover Beach ($19,805), 35% City of Arroyo Grande ($13,460), and 15% for OCSD ($5,960) for a total of $39,225. This cost distribution would be reviewed on an annual basis and may increase or decrease as warranted. '�,; This new funding will provide for the administration of the Grease Control program, �, specifically coordinating with the Parent Agencies for permitting, inspections and ' Program compliance. A table depicting approximate program funding by Parent Agencies is provided below. ESTIMATEOFFA7S,OILSANDGREASE FOG PROGRAMCO5T5 I hi�9� Project MnualPfojBp ProjeCl ' Inspector TotalMnual Inspection Caordinator Coordiration CooMiraLOn =�a�t; �: h TotalFacilities Hou�lyBillirg_ Irepection Mnwl$ Hou�VyBillirg Houre'(5% Mnual$ Tolal�ilmual� `�; ill PareMPgency Inspecled Rate Houre Allocalion Rate Weekly) Alloration Pra,yamCost�al : I Ciryof Grarde 36 $ 85.00 54.0 $ 4,590.00 $ 8500 104 $ 8.87043 $ : t3J1811; Ocearo-OCSD 16 $ 85.00 24.0 $ 2.040.00 $ &5.00 46 $ 3.920 ZO S �::5,%0': . � Ci ofGroverBeach 53 $ 85.00 79.5 $ 6,757.50 $ 8500 154 $ 13,047W S��' 19�805 � .��:�. � �.- � . . � rda crsNa Faom�s �os ' ES7IMATED GREASE FROGRAM CO5T5 S " 39,226�- .._ ..�. . . � . -�.{. � 'Eslirnalepcp5hlrclWesROgranCOpLi�ulim.IntpectbnaMGrt2nl�.viryl�pwfvxj t I I ,r- _ CITY COUNCIL CONSIDERATION OF A GREASE CONTROL PROGRAM INTERAGENCY AGREEMENT WITH THE SOUTH SAN LUIS OBISPO COUNTY SANITATION DISTRICT JUNE 26, 2007 Page 2 of 3 DISCUSSION: The SSLOCSD provides wastewater treatment and trunk sewer collection services to City of Arroyo Grande, Grover Beach and the Oceano Community Services District (OCSD). This service area covers approximately 9.45 square miles and supports an estimated population of 36,650. The general service area of SSLOCSD includes approximately 213 food facilities, primarily restaurants. The Regional Water Quality Controi Board (RWQCB) issued Waste Discharge Requirement (WDR) Order No. R3-2004-0062 in September 2004. This mandated that each of the Parent Agencies of the SSLOCSD implement a Source Control Program for all sources of grease and fats discharged into the sewer system, more specifically referred to as a Grease Control Program. Historically, SSLOCSD staff has assisted Parent Agency personnel with the preparation of RWQCB's Collection System Annual Reports that must be filed by each of the Parent Agencies. During the preparation of the Annual Reports over the last two years, District staff met with the Public Works Directors and staff of OCSD, the City of Arroyo Grande and the City of Grover Beach. Due to staffing and resource requirements, each Parent Agency requested that the SSLOCSD assist with the implementation and monitoring of a Grease Control Program. This is specifically driven by the fact that there would be duplicative efforts by each of the agencies and that this task would be best served if consolidated into one entity. In addition, the work involved is sporadic in nature and would not lend itself to a full time position. As a result, staff is recommending a program whereby SSLOCSD Engineering staff would develop the program in concert with the Parent Agencies and provide personnel intermittently to inspect businesses for compliance with the Grease Program. The overall intent of the first year of the program is to focus on large contributors of fats, oils and greases into the SSLOCSD's wastewater system. In an effort to iocalize our program, the SSLOCSD staff, along with Agency representative, narrowed the list of food services establishments to approximately 105 facilities. It is estimated that an effective Grease Control Program can reduce the number of sewer overflows. In addition the plant will not have to treat and remove as much grease from the influent. The City pertorms quarterly cleanings and maintenance of the collection system. With a Grease Control Program in place, the Parent Agencies have the potential to reduce cleaning schedules from quarterly to semi-annual in addition to reducing grease related maintenance costs. The Grease Control Program is scheduled to begin July 01, 2007. CITY COUNCIL CONSIDERATION OF A GREASE CONTROL PROGRAM INTERAGENCY AGREEMENT WITH THE SOUTH SAN LUIS OBISPO COUNTY SANITATION DISTRICT JUNE 26, 2007 Page 3 of 3 It is recommended the City approve the Grease Control Program in accordance with the subject WDR. As a component, the Grease Control Program will be reviewed once a year as part of the WDR Annual Report for its cost and operational effectiveness. The attached interagency Agreement, subject to final review by the SSLOCSD Administrator and Counsel, addresses the method of reimbursement and the role of the District in this Program. ALTERNATIVES: The following alternatives are presented for the Council's consideration: . Authorize the Mayor to execute the agreement; • Do not authorize the Mayor to execute the agreement; • Modify as appropriate and authorize the Mayor to execute the agreement; • Provide direction to staff. Attachment: 1. Interagency Agreement ATTACHMENT1 INTERAGENCY AGREEMENT IN REGARDS TO GREASE CONTROL PROGRAM COMPLIANCE WITH CALIFORNIA REGIONAL WATER QUALITY CONTROL BOARD WASTE DISCHARGE REQUIREMENTS ORDER R3-2004-0062 This Agreement reached this day of 2007 between the SOUTH SAN LUIS OBISPO COiJNTY 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 COLJNTY 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 heahnent services for the residents of these PARENT AGENCIES;and, WHEREAS, [he REGIONAL WATER QUALITY CONTROL BOARD ("RWQCB") has adopted waste discharge requirement standards far the PARENT AGENCIES;and, WHEREAS, amongst those waste discharge requirements is the development of a grease control monitoring and reporting program; and, WHEREAS, as a pazt of the monitoring and reporiing program, there is a requirement for an annualreport;and, WHEREAS, the DISTRICT has experience in the preparation and administration of grease control monitoring and reporting programs and annual reporting;and, WHEREAS, it is recognized that there would be cost savings due to the DISTRICT'S experience in the development of these monitoring and reporting programs and it is fiuther recognized that there would be a cost savings achieved were the DISTRICT to prepare and administer a monitoring and reporting program and prepaze 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 Conrtol Board Order R3-2004-0062 ("Order R3-2004-0062")as follows: 1. The DISTRICT will prepare and implement a grease control monitoring and reporting program for each PARENT AGENCY. 2. The DISTRICT will inspect food service establishments as deternuned by each PARENT AGENCY. 3. The DISTRICT will report inspection findings to each PARENT AGENCY by the end of January of 2008,and each yeaz thereafrer if the Agreement is renewed. 4. The DISTRICT will assist in the preparation the annual reporting for each PARENT AGENCY due to the RWQCB by the end of January of each year. The annual report will include the status of the Grease Control Program inspections and overall program compliance for each PARENT AGENCY. 5. Each PARENT AGENCY agrees that it is responsible for all other compliance requirements imposed by Order R3-2004-0062,a copy of which is attached hereto as E�chibit A and incorporated by reference. 1 6. Each PARENT AGENCY is responsible for the DisnicYs actual cost in administering the program,inspections and document preparation for annual reports described in this Agreement It is anticipated that in 2007,the Dishict wiil be reimbucsed by each PARENT AGENCY for its pro rata cost based upon the number of facilities in the program as described in this Agreement in the amount not to exceed the costs outline below. In subsequent years, if the Agreement is extended,the cost will continue to be prorated based on the number of facilities designated by EACH PARENT AGENCY and inspected that yeaz. Paren[Agency Facili[ies Es[imated Program Estimated Annual Included Hours Pro ram Cos[s City of M'oya Grande 36 I58.4 $13,460 City of Grover�each 53 233.5 $19,&05 Oceano Communiry ServicesDis[ric[ IG 70.1 $5,960 Es[imated Program Estimated Facilities 105 Costs $39,226 7. The terms of this agreement shall be for one year,subject to annual renewal based on mutual written agreement of the Parties. Program fees are based upon costs incurred by the DISTRICT. The pro rata share of program costs shall be amended annually. IN WITNESS WHEREOF,DISTRICT and each PARENT AGENCY have executed this Agreement the date first written above. SOUTH SAN LUIS OBISPO COUNTY SANITATION DISTRICT: By: John L. Wallace,Distric[Administrator � Approved as to Form: By: Michael Seitz,District Legal Counsel CITY OF ARROYO GRANDE , By: � Tony Ferrara,Mayor Attest: By: - Kelly Wetmore,City Clcrk Approved as to Form: By: Timothy J.Carmcl,City Attorney • 2 CITY OF GROVER BEACH By: Steven C. Lieberman,Mayor Attest: By: Donna L.McMahon,City Clerk Appioved as to Form: By: Martin D. Koczanowicz,City Attorney OCEANO COMMUNITY SERVICES DISTffiCT By: Jim Hill,President Attest: By: In[erim General Manager and Secretary to the Board Approved as to Form: By: Alex Simas,District Legal Counsel 3 STATE OF CALIFORNIA EXHIBIT A CALIFORNIA REGIONAL WATER QUALI7Y CONTROL BOARD CENTRAL COAST REGION 895 Aerovista Place, Suite 101 San Luis Obispo, California 93401-7906 WASTE DISCHARGE REQUIREMENTS ORDER NO. R3-2004-0062 For LOCAL WASTEWATER COLLECTION AGENCIES TRIBUTARY TO SOUTH SAN LUIS OBISPO COUNTY SANITATION DISTRICT WASTEWATER TREATMENT FACILITY SAN LUIS OBISPO COUNTY The California Regional Water Quality Contro] Boazd,Central Coast Region(Regional Board),finds that: , PERMITTEES i 1. Ail agencies, municipalities, counties, distric[s Permit No. CA0048003) for South San Luis or other public bodies, which own or have Obispo County Sanitation District and local responsibility for wastewater collection sewering entities of Oceano Community systems or any facilities diat collect or convey Services Dis�ict, City of Arroyo Grande and wastewater in the portions of San Luis Obispo City of Grover Beach. Those portions of County served by South San Luis Obispo NPDES Pemut No. CA0048003 regulating County Sanitation Disfrict (Sanitation District) wastewater collection systems tributary to the aze named as Permittees in this Order. Since Treahnent Facility, are incorporated within all of the Permittees aze tributary to South San this Waste Discharge Requirements Order Luis Obispo County Suiitation District sepazate from$ie Sanitarion DistricYs Permit. Wastewater Treatment Facility (Treahnent This Order sets specific wastew�ter collection Facility), the Sanitation District may lead a system requirements for the Permittees and steering conunittee for all entities tributary to upholds State water quality standazds. , the Treatment Facility,to facilitate compliance , by each Permittee with the requirements oF FACILITY OWWERS AND LOCATIONS this Order. The lmown Pennittees include: 3. The Sanitation Dishict owns and operates a City of Airoyo Gcande wastewater collection, treatment and disposal _ system to provide sewerage service to the , City of Grover Beach Permittees named in Finding No. 1. The City of Pismo Beach discharges treated municipal Oceano Community Services District wastewater direcUy to the Sanitation District's outfall,and is regulated by IIPDES Permi[No. If ownership or operational oversight changes CA0048151. for any Permittee covered under this Order, or if any new Permittee is established, they shall 4. The Pemuttees retain ownership and direct be subject to this Order. responsibility for wastewater collection and transport systems up to the point of discharge PURPOSE OF ORDER into interceptors owned and operated by the Sanitarion District. The vicinity of tl�e 2. The purpose of this Order is to replace Permittees' collection systems aze depicted on portions of existing Waste Dischazge Attachment A of this Order. Require�nents Order No. 99-32 (NPDES WDR Order No. R3-2004-0062 -2- September 10, 20D4 GENERAL INFORMATION 10. Califomia Water Code Section 13050(m) defines a nuisance as anything tl�at meets all of 5. Unheated wastewater mainly consisu of the following requirements: (1) Is injurious to domestic, conunercial and industrial healUi, or is indecent or offensive to the wastewater collected in a wastewater senses, or an obstruction to the free use of collection system. property, so as to interfere with the comfoitable enjoyment of life or property. (2) � 6. A wastewater collection system includes Affects at the same time an entire community sewers, pipe5, pumps, or otlter structures that or neighborhood, or any considerable number convey was[ewater to a treahnent facility, of persons, although the extent of the Properly designed, operated and maintained aiuioyance or damage inflicted upon wastewater collection systems are meazit to individuals may be unequal. (3) Occurs coflect and transport all of the wastewater that during, or as the result of, the treatment or flows into them to a publicly owned treatment disposal of wastes. works. 11. Overflows can occur froin publicly owned 7. It is incumbent upon the Permittees to protect wastewater collection systems and from [he environmetrt to the greatest degree possible privately owned systems. If an overflow and ensure their local wastewater coilec[ion occurs neaz the ocean or has potential to reach systems are propedy protected azid utilized. beaches by either direct dischazge to the ocean This responsibility includes preventing or enteriug the storm drains leading to the overflows and may include restricting or ocean, a beach waming or a beach closure may prohibiting the volume, type or concentration occur. In accordance with State statutes, the of wastes added to the system. San Luis Obispo County Health Department monitors ocean water at public beaches and 8. A wastewater collection systein overflow water-contact recreation areas by conducting (overflow) or sewage spill, describes each baeteriological testing of the ocean water. instance of a discharge of sewage from a Elevated concentrations of bacteria can be wastewater collection system other than to the �dicative of confamination by l�uman sewage wastewater treatment plant. Temporary and oflter wastes such as urban and agriculture storage and conveyance facilities (such as runoffs which may increase the risk of human vaults, temporary piping, construction disease. When bacterial indicator organisms trenches, wet welis, impoundments, tanks, exceed flie State gnidelines for beaches, th8 etc.} are considered part of the wastewater jurisdictional County Health Departrnent takes collection system,and discharges of sewage to appropriate actions such as posting beach these facilities are not considered overflows. wamings or wnducting beach closures to ensure public safety. 9. Overflows may consist of varying mixtures of domestic, industrial and commercial 12. Overflows have a variety of causes, including wastewater, and oRen contain high levels of but not limited to grease buildup, root and snspended solids, padiogenic organisms, toxic debris blockages, severe wead�er, flood pollutants, nutrients, oxygen demanding damage, manhole structure failures, pump organic compounds, oil and grease, and other station mechanical failures, power outages, pollutants. Overflows may cause nuisance, stonn or ground water inflow/infiltration, exceed applicable water quality staz�dards collection system age and construction wlien the sewage is dischazged to surface material failures, improper system operation waters of the State, pose a threat to public and maintenance, vandalism, lack of capacity, health, adversely affect aquatic life,and impair and contractor caused damages. Many public recreationa! use and aesthetic overflows are preventable with adequate and enjoyn�ent of surFace waters. appropriate source confrol measures, and WDR Order No. R3-20U4-0062 -3• September 10, 2004 operation and maintenance of d�e wastewater statewide plans and policies by reference and collection system. This Order addresses contains a strategy for protecting beneficia] preventable overflows. uses of the Pacific Ocean. 13. Tlie issuance of a single waste discharge 16. Benefici�l Uses - Existing and anticipated requiremenu order to the Permittees will: bene£cial uses of ocean waters in the vicinity , ofthe dischargeinclude: a. Reduce the administrative burden of issuing individual waste discharga a. Water contact recreation; requirements to each Permittee; b. Non-contact water recreation, including aesthetic enjoyment; b. Provide for a unified regional approach c. Industrialwatersupply; for the reporting and database tracking of d. Navigation; sanitary sewer overflows; e. Marine habitat; f. Shellfish harvesting; c. Provide consistent and uniform standards g. Preservation of Rare and Endangered of performance, operations and Species; maintenance of sewage collection h. Ocean commercial and sport fishing; and systems; i. Wildlife habitat. d. Provide statewide reporting consistency 17. Autl�ority to Prohibit Discharge - Califomia pursuant to Assembly Bill (AB) 285 Water Code Section 13243 provides that a (adopted on October 4, 2001) and the Regional Board, in a basin plan or waste State Water Resources Control Board's discharge requirements, may specify certain reporting requirements per AB 285;and conditions or azeas where the dischazge of waste, or certain types of waste, will not be e. Facilitate unifonn enforcement for permitted. The requirements specified in tUis violations. Order are consistent with both the Basin Plan azid WaterCode Section 13243. RELEVANT REGULATIONS 18. CEQA - These waste dischazge requirements 14. Storm Water — The State Water Resources apply to existing wastewater collection Conhol Boazd's (State Boazd's) Storm Water systems and are exempt from the provisions o£ Prograni regulates municipalities with the Ca(ifomia Environmental Quality Act populations less than 100,D00, including (Public Resources Code, Section 21000, et. urbanized areas (areas with a population of seqJ in accordazice wiUi SecUon 15301, 50,000 and density greater than 1000 people Adicle 19, Chapter 3, Division 6, Title 14 of per square mile), cities, county areas the Califomia Code of Regulations. In designated by the State based on site-specific addition, tltis Order is a prohibition of criteda, and vazious state and federal dischazge, and as such, is exempt from the facilities. If counTy azeas named in this Order provisions of the California Environmenfal meet tlie Phase II Storm Water permit cri[eria, Quality Act, in accordance with Title 14, stomi water managemeut in these areas will be Califomia Code of Regulations, Chapter 3, regulated by a future Phase II Municipal Section 15308. General Stonn Wa[er Discharge Permit. GENERAL FINDINGS 15. Basin Plan -Tl�e Water Qualiry Contro!Plan, Cenlral Coastal Basin (Basin Plan) was 19. Monitoring Program - Monitoring and adopted by the Regional Boazd on September Reporting Program No. R3-2004-0062 is 8, 1994. The Basin Plan incorporates included as part of this Order(Attachment B). WDR Order No. R3-2004-0062 -4• September 10, 2004 11ie Monitoriug Program requires overtlow A. PROHIBITIONS reports and periodic wastewater collection system reports to verify compliance with this l. Tl�e discharge of untreated wastewater outside Order, of the described wastewater collection systems and the Treatment Facility is prohibited. 20. Public Notice - On 7une 1, 2004, the Regional Board notified the Perniittees and interested 2, The dischazge of clilorine or any other toxic agencies and persons of its intent to issue suUstances used for disinfectio�i and cleanup waste discharge requirements for the discharge of sewage overflows, to any surface water and has provided them with a copy of the body is prohibited. (This prohibition does not proposed Order and an opporhmity to submit apply to the clilorine in U�e potable water used written comments, and scheduled a public for final wash down and clean up of hearing. overflows.} 21. Public Hearing - In a public hearing on 3. Introduction of "incompatible wastes" to the Sep[ember 10, 2004,the Regional Board heard heatment system is prohibited. and considered all conmients pertaining to die discUarge and found Hus Order consistent with 4. Introduction of pol]utants into dte collection, the above fmdings. h�eatment or disposal system by an "indirect discharger"that: 22. Right to Petition - Any person affected by this action of the Regional Board may petition a. inhibit or disrupt the treatment process, die State Board to review the action in system operation, or the eventual use or accordance with Section 13320 of the disposal of sludge; or, Califomia Water Code and Title 23, California Code of RegulaGons, Section 2050. The b. cause or "sigiiificandy contribute" to a petition must be received by Uie State Board violation of any requirement of this Order, widiin 30 days of the date of this Order. is prolvbited. Copies of the law and regulations applicable to filing petitions will be provided upon request. 5. Introduction of"pollutant-free" wastewater to the collection, treatment and disposal system IT LS HEI2EBY ORDERED that the Pemuttees, in amounts that threaten compIiance with this their agems, successots and assigns, in order to Order is prohibited. meet the provisions contained in Division 7 of the California Water Code and regulations adopted g, GENERAL PROVISIONS there under,shall comply with the following: 1. Order Availability -A copy of this Order shal( All technical and monitoring reports submitted be maintained at appropriate locations and pursuant to this Order aze required pursuant to shall be available to wastewater collection Section 13267 of the Califomia Water Code. system opecation and maintenance personnel Fai(ui�e to submit reports in accordance wifli at alf times. schedules established by this Order,attachments to this Order, or failure to submit a report of z_ Adequate Funding - The Pennittee shall sufficient technical quality to be acceptable to tl�e properly fund, manage, operate, a�d maintain, Executive Officer, may subject the Petmittee to with adequately trained staff and/or enforcemeat action pursuant to Section 13268 of contractors possessing adequate knowledge, the Califomia Water Code. skills, and abilities as demonstrated fl�rough a validated program at all times, all pads of the wastewater collection system owned and/or operated by the Permittee. i� __ �, WDR Order No. R3-2004-0062 -5- September 10, 2004 3. Adequate CapaciTy - The Permittee sl�all they may be applicable to the discharge, provide adequate capacity to convey base including the following: tlows and peak flows, including wet weadter re!a[ed events to the minimum desigu criteria a. INerception and rerouting of wastewater as defined in the Permittee's System flows around the collection line failure; Evaluation and Capacity Assurance Plan (developed in accordance with Attachment C, b. Vacuum truck recovery of wastewater Section IX), for all parts of Uie collection overflows and wash down water; system owned or operated by the Perniittee. c. Cleazm� of debris of sewage origiu at the 4. Tlte Pettnittee shall coordinate with the overflow site; Sanitation District on relevant matters concerning the wastewater collection systems, d. Sample affected receiving water body pretreahnent.program, source contml program, upstream,at,and do�nmstream of the and the wastewater treatrnent facility. overflow's point of entrance to eivsure adequate clean-up; C. REPORTING PROVISIONS e. Submit monitoring data to the Executive 1. The Pennittee shall comply with "Monitoring Officer within 30 days ofsampling. and Reporting Program (MRP) No. R3-2004- 0062 (Attachment B of fliis Order), as 2. The dischazge of untreated or partiaAy treated specified by the Executive Officer. wastewater is prohibited pursuant to Prohibition A.1, and shall constitute a 2. The Penniitee shall subinit an annual report violation of Uiese discharge requirements (as outlined in the MRP) to the Regional unless tUe Peanittee demonstrates throagh � Board, and provide copy to the Sanitation properly signed, contemporaneous operaring District, describing their coordination with the logs, or other relevant evidence that the , Sanitation DistricYs pretreatment activities Following criteria are met: over the previous twelve months. a The discharge was caused by one or more 3. The Pennittee shall report any sewage severe natural conditions, including overflows using die Sewage Overtlow hurricanes, tomadoes, widespread Reporting Form (Attachment D to fliis Order) flooding, earthquakes, tsunanvs, and other or equivalent, as approved by flie Regional similaz natural conditions;and Board Executive Officer. b. There were no feasible altematives to the D. IMPLEMENTATION REQUIREMENTS discharge, such as the use of auxiliary treatment facilities, retention o£untreated l. Upon reduction, loss, or failure of ihe wastewater, reduction of inflow and ' wastewater collection system resulting in an infiltration, use of adequate backup overflow, d�e Permittee shall, to the extent equipment, or an increase in the capacity necessary to maintain compliance with this of d�e system. This provision is not Order, take any necessary remedial actions to satisfied if, in the exercise of reasonable 1) control or limit the volume of wastewater engineering judgment, the Permittee discharged, 2) tenninate [he wastewater should have installed auxiliary or discf�arge as rapidly as possible, and 3) additional collection system components, recover as much of the wastewater dischazged wastewater retention or treatment as possible for proper disposal, including any facilities, or adequate back-up equipment, wasli down water. The Permittee shall or should liave reduced inflow and implement all remedial actions to the extent infiltration. i WDR Order No. R3-2004-0062 -6- September 10, 2004 3. In aoy enforcement action, the Regional Board or "incompatible wastes" to the Sanitation will consider the efforts of the Permittee to DistricYs treatment system are minimized. contain, control, and clean up wastewater overflows from its collection sys[em as part of E. STANDARD PROVISIONS AND its consideration of the factors mquired by REPORTING REQUIREMENTS Section 13327 of ihe Califomia Water Code. 1. Collection, treatment, and dischazge of waste 4. The Pennittee shatl develop and implement a shall not create nuisance or pollution, as Wastewater Collection System Managen�ent defined by Section 13050 of tl�e California Flaz� (Management Plan} in accordance with Water Code. Attactunents B aud C of this Order by March 31,2005. All elements of the Plan(outlined in 2. As necessary to assure safe and reliabte Attachment C) shall be clearly labeled and collection, treahnent, and disposal of waste addressed by dte Pepnittee. If any element of and consistent compliance with this Order, the the guidance provided in Attachment C is not Pennittee shall adopt and enforoe a local appropriate or applicable to a Permittee's source control program. Management Plan, the report shall provide the rationale for not including that element in the 3. Facilities and systems for collection, Management Plazi. The Management Plan treatment, and conirol of wastewafer shall be shall be developed and implemented to assure properly operated and maintained. Proper compliance with these waste discharge operation and maintenazice includes effective requirements azid shall be made available to performance, adequate funding, adequate the public or to a representative of Uie opentor staff and training, and adequate Regional Board, Sta[e Board or USEPA upon laboratory and process conirols, including request. appropriate quality assurance procedures. 5. The Peemittee shall develop and implement an 4. Transport and treatment facilities and Infiltration/Inflow and Spill Prevenrion pennanent disposal ponds shall be adequately Program (Program). The Program shall be pmtected against overflow, tlooding, or reviewed and updated as necessary with washout as the result oF a 100-year frequency updates summarized in the annual report due tlood or 100-yeaz,24-hour storm. Sanaary 30 of every year. The Program shall be incorporated inio the Wastewater 5. Operation of collection, treatment, and Coflection System Management Plan as disposal systems shall be in a manner that required by fliis Order, and outlined in the precludes public contact with wastewater. guidance provided in Attachment C. The Program shall be developed in accordance 6. Collected screenings, sludges, and other solids with good 'engineering practices and shall removed from liquid wastes shall be disposed address the following objectives: in a maemer approved by the Execufive Officer. a. Identify infilhation azid inflow sources that �nay affect coilection system or 7. The Regioi�al Board shall be allowed: treahnent facility operation or possibly result in overflow or exceed pump station a. Eutry upon premises where an effluent capacity;and, source is located or where records must be kept under the conditions of this Order; b. Identify, assign, and iinplement spill prevention measures and collection b. Access to copy azry records that must be system management practices to ensure kept under the conditions of this Order; overflows and contribution of pollutants WDR Order No. R3-2004-0062 -7• September 10, 2004 a To inspect any facility, equipment with this Order or to detemiine whether cause (including monitoring and control exists for modifying or terminating this Order. equipment), practices, or operations regulated or required under this Order; 13. Safeguards shall be provided to assure and, maximal wmpliance with all terms and conditions of this Order. Safeguards shall d. To photograph, sample, and monitor for include preventative and contingency plans the purpose of sliowing compiiance with and may also include altemative power this Order. sonrces, stand-by generators, retention capacity, opetaring procedures, dual pumping 8. After notice and opporh�nity for a hearing, this systems, or other precautions. Preventative Order may be terminated or modified for and contin�ency plans for controlling and cause,including,but not limited to: minimizing the effect of accidental discharges slialL• a. Violation of any term or condition contained in this Order; a. ]dentify possible situations Uiat could cause "upseY", `bverflow" or "bypass", or b. OUtaining diis Order by misrepresentation, other noncompliance. Loading and or by £ailure to disclose fully all relevant storage azeas, power outage, waste facts; treatment unit outage, and failure of process equipnient, tanks, and pipes c. A change in any condition or should be considered. endangerment to huma� health or environmeut that requires a temporary or pertnanent reduction or elimination of the b. Evaluate the effectiveness of present authorized discharge;and, facilities and procedures and describe procedures and steps to minimize or d. A material change in character, location, correct any adverse envuonmenml impact or volume of the discharge. resulting from noncompliance with the Order. 9. The Order does not authorize commission of any act causing injury to the property of 14. Physical facilities shalI be designed and ulother, does not convey any property rights coiutructed according to accepfed engineering of any sort, does not remove liability mider practices and shall be capable of full federal, state, or loca] laws, and does not compliance with this Order wi�en properly guarantee a capacily right. operated azid maintained. Proper operation and maintenaz�ce shall be described in an 10. Tlie Pennittee shall take all reasonable steps to Operation and Maintenazzce ManuaL Facilities ininimize or conect adverse impacts on the shall be accessible during the wet weather environment resulting from noncompliance season. with this Order. 15. Should additional data becwne available I 1. Provisions of this Order aze sevenble. If any through monitoring or investigation that provision of the Order is found invalid, the indicates compliance with this Order is not remainder of the Order shall not be affected. adequately protecring ground water, the Regional Board wil( review and revise this 12. The Pemiittee shall fumish, within a Order as appropriate. reasonable time, any informatio�� tlie Regional Board may request to determine compliance WDR Order No. R3•2004-0062 -8• September 10, 2004 16. Monitoring location, minimum sampling place, and time of sampling; the individual frequency, and sampling method for each who perfomied the sampling; the date analysis parameter shall comply with the Monitoring was performed; the laboratory and individual and Reporting Program of this prder. who performed the analysis; the analytical Monitoring must be conducted according to techniques used; and results. Records shall be test procedures approved under 40 CFR Part maintained for a minimum of ttuee years. 136, entitled "Guidelines Establishing Tes[ This period may be extended during the course Procedures for Analysis of Pollutants," unless of any unresolved litigation or when requested other test procedures have been specified in by tlie Regional Board. this Order. 21. Any noncompliance that may endanger health 17. Water quality analyses performed in Order to or tlie environment shall be reported orally monitor compliance with this Order sl�all be widiin 24 hours from the time the PeRnittee by a laboratory cerlified by the State becomes aware of the circumstances Department of Health Services for the (telephone: 805-549-3147). Unless waived constituent(s)bei�tg analyzed. by the Executive Officer of the Regional Board, a written report shall he submitted I8. If the ]aboratoiy used or proposed for nse by within five (5) days of awazeness and shall the Pemzittee is not cedified by the Califomia contain a descriprion of tl�e noncompliance Department of Health Services due to and its cause; the period of noncompliance restrictions in the State's laboratory (including exact dates and times) or certification program, the Pecmittee shall be anticipated duration; and steps taken or considered in compliance with this provision planned to reduce, eliminate, and prevent provided: reoccurrence of the noncompliance. This provision includes, but is not limited to: a. Data results remain consistent with results of samples analyzed by the Regional a. Violation of a dischazge prohibition; Boacd; b. Any"upset","overflow", or'bypass'; b. A quality assura�ice program is used at die laboratory, including a ma�ival containing c. Violation of a discharge limitation for any steps followed in this progrant that is "hazardous substance." available for inspections by the staff of the Regional Boazd; and, Written reports of overflows shall indude, but not be limited to, no less information than is c. Certification is pursued in good faith and required on the cunent overflow repor[ing ohtained as soon as possible after the fonn (Attachment D), or equivalent, as program is reinstated. approved by the Regional Board Executive Officer. Any additional infomiation shall be 19. All monitoring iiuhvments azid devices used reported as an attachment thereto, or in the by the Perniittee [o fulfill the prescribed � fomi of status reports ancllor a final repott for monitoring prograzn shall be propedy incidents and cleanups of longer duration. maintained and calibrated as necessary to ensure their conti�med acwiacy. 22. Within 120 days after the Permittee diswvers, or is notified by the Regional Boazd, that 20. Tlze Pennittee shall maintain records of all monthty average daily flow will or may reach monitoring information, including all design capacity of the wastewater collection calibration and maintenance rewrds; all system within four (4) years, the Permittee original strip chaR recordings for continuous sl�all file a written report witla the Regional moni[oring instrumentation; the date, exact ; ___ WDR Order No. i23-2004-0062 -9- September 10, 20a4 Board. The report shall include: "I certify under penalty of law tl�at .I have personally examined atid azn familiar with the a. Tl�e Uest estiutate of when the tnondiEy information submitted in this document and all average daily dry weather flow rate will attaclunents and that, based on my inquiry of equal or exceed design capacity;and, those individuals immediately responsible for obtaining flie infonnation, I believe that the b. A schedule for studies, design, and other infomiation is true, accurate, and complete. I steps needed to provide additional am aware that there are siguificant penalties capaciry before the waste flow rate equals for submitting false infonnation, including the the present capacity. possibility of fine and imprisomnent." In addition, the required technical report shall 27. The Pennittee must notify ihe Regional Board be prepared with public padicipation and whenever there is a substantial chazige in the reviewed, approved and joinUy suhuilfted by volume or cl�aracter of pollutants being all planning and building departments having introduced info the wastewater system. Notice jurisdiction in the area served by tl�e waste sl�all include information on the quality and collection system. quantity of waste being introdvced to tlie system and the anticipated impact of the waste 23. Except for data deterniined to be confidenfial upon collection and treatment system. under Section 13267(b) of the California Water Code, all reports prepared in accordauce Zg. The Pem�ittee must notify the Regional Board with this Order shall the available for pu6lic as soon as it knows or has reason to believe inspection at the office of the Regional Boazd. U�at it, or an indirect discharger, tias begun, or expects to begin, use or manufachue of a 24. Should the Permittee discovet lhat it failed to "toxic waste" or "hazardous substance" not submit any relevant facts or that it submitted reported in the Report of Waste Discharge that incorrect in£ormation in a report, it shall may, directly or indirecfly, discharge into the promptly submit the missing or incorrect treatment and disposal system. information. ' 29. The Permittee must comply with all conditions 25. All repoRS shall be signed as below: of this Order. Noncompliance violates state law and is grounds for enforcement action or a. For a corporation; by a principle executive modification of the existing Order. officer of at least the level of vice president; 30. Any person failing or refusing to £urnish technical or monitoring program reports as b. For a partnership or sole proprietorship; ' required by subdivision (b) of section 13267 by a genera] partner or the proprietor, of the Califomia Water Code,or falsifying any respectively; information provided therein, is guilty of a misdemeanor. c. For a public agency; by eidier a principal executive officer or ranking elected 31. The Pennittee and any person who violates official; or, ' waste discharge requirements and/or who intentionally or negligently discl�arges waste d. Their "duly authorized representative." or causes or permits waste to be deposited wliere it is discharged into surface waters of 26. Any person signing a repoR makes the the state may be liable for civil andlor crinvnal following certification, whether it is expressed remedies, as appropriate, pursuant to secrions or implied: ' 13350, 13385, and 13387 of the Califomia Water Code. "_ ___ _ ' WDR Order No. R3•2004-0062 -10- September 10, 2004 F. DEFINITIONS e, Heat in amounts tl�at inhibit or disrupt biological activity in the treatment works 1. "Bypass" means Uie diversion of waste or that raises intluent temperatures above streams around any portion of a treatment 40°C (104°F) unless the treatment works facility to the disposal area or from the is designed to accommodate such heat. ' treatment facility ro a non-authorized location. 5. "Indirect Discharger" means a nondomestic 2. A "Duly Authorized Representative" is a discl�arger introducing pollutants into a person or title for which: publicly owned treatment and disposal system. a. The authorization is made in writing by a 6. "Pollutant-free wastewatei' means infiltration yerson described in the signatory and inflow, storm waters, and cooling waters paragraplt of Ihis document (See Item No, and condensates which aze essentially free of E.25); pollutants. b. The authorization specifies either an 7. "Severe property damage" means substanrial ', individual or the occupant of a position physical damage to property, damage to having responsibility for the overall treatment facilities which causes them to , operation of the regulated facility, such as become inoperable, or substandal and the plant manager;aud, permazient loss to natural resources which can reasonably be expected to occur in the absence a The written aufliorization was submitted of a"bypass". It does not mean economic loss ' to the Regional Boud. caused hy delays in production. 3. "Hazazdous substazice" means any substance S. "To significanfly conhibute" to a waste designated as hazardous in the Caiifonua dischazge requirement violation means an Water Code,Division 7, Section 13050. "indirect dischazger"must: 4. "Incompatible wastes"ue: a. Discharge a daily pollutant loading in ' excess of that allowed by conhact with the , a. Wastes which create a fire or explosion Pennittee or by state or local law; hazard in the treatrnent works; b. Discharge was[ewater which sub'stantially ' b. Wastes which will cause corrosive differs in nature or constituents from its smictural damage to treatment works, average discharge; including all wastes with a pH lower than S.0 unless the works is specifically c. Discliarge pollutants, either alone or in designed to accommodate such wastes; conjunction with dischazges from other sources,which results in a waste discharge c. Solid or viscous wastes in amounts which requirement violation or prevents sludge cause obstruction to flow in sewers, or use or disposal;or, which cac�se other interference with proper operation of treatment works; d. Discliarge pollutants, either alone or in conjunc6on witli pollutants from other d. Any waste, including oxygen demanding sources, that increase the magnitude or pollutants (BOD, etc.), released in such duration of waste discharge requirement volume or strength as to cause inhibition violations. or disruption in the treatment works azid subsequent h�eatment process upse[ and loss of treatment efficiency;and, i h p , � . WDR Order No. R3-2004-0062 -11- September 10, 2004 9. "Toxic waste" means any toxic and persistent set for constituen[s present in flie stonn water wasle which falls within the following system. The Permittee, in coordination widi categories: d�e Sanitation District, shall evaluate the potential impacts to the wastewater treatment a. PCB's system. The mottitoring program should b. Pesticides include, bu[ not be limited to, san�pling c. Toxic Metals locations, sampling frequency, and d. Cyanides constituents to Ue sampled. e. Halogenated Organics f. Nvn-halogenated volatile organics H. REPORT OF WASTE DISCHARGE 10. "Upset" means an exceptiona] incident causing 1, Pursuant to Title 23, Chapter 3, Subchapter 9, noncompliance with teclmology-based effluent of tlie Califomia Code of Regula[ions, the limi�ations because of fac[ors beyond die Pennittee must submit a written report to the reasonable control of the Pennittee. It does Execuuve Officer not later thau March 10, not include noncompliance caused by 2009,addressing: operational error, improperly designed treatment facilities, inadequate treatment a. VJl�ether there will be changes in the facilities, lack oF preventative maintenance, or continuity, character, location, or voIume careless or improper opera6on. of the discharge; G. STORM WA7ER MANAGEMENT b. Whether, in their opinion, there is any PROVISIONS portion of the Order that is incorrect, obsolete, or otherwise in need of revision; 1. If the Pemuttee implements stonn water and, diversion projects, the Pemiittee shall coordinate with the Sanitation District in c. Swrunary of any instances of non- developing a monitoring program subject to compliance with the requirements of this the Executive Officer's approval, The purpose Order. of the monitoring is to establish a baseline data I, Roger W. Briggs, Executive Officer, do hereby certify the foregoing is a full, true and correct copy of an order adopted by tlie California Regional Water Quality Control Board,Cenhal Coast Region,on September 10, 2004. Roger W.By gs Executive O�cer � 9-.y-�y Date S:�npdes�npdes facilities�san luis obispo col�o slo colcollection.wdr Tosk Code�. 126-01 Piles: City of Airoyo Grande,Ciry of Grover Beach,Oceano CSD � 1 1 � 1 1 1 � / ' �����w . fa : ��' G�• • � s~ � � . t �\�, „ � :x � :;n'���/�Y �; ; :�i t = i i`„ � 1 �. � *� T t '' �. 't. � i t :: �t : 2�� ����,h . . K F:�f I ��4r q N��i ,g � � ^!'y,?i..y�"{� ty'��w,�� r f � i `c� r� . t �� `�.> t �- 24 : " � 1�! • . C . � J���. F r , � ' I ��'},4�r� '�t� .A I t D / , t� . ;' � '''a1`��'r • � � � �6 ^ x+. �'�� � Y i�^tiF`ri," '" h �" T�// + � r ,yrv�� { .f '4� i � i: � '�� k .� �Y �.Fl9.� N.r i e i i a 1 F e f ll . " w� � � � ��S 7�x �ro 1 ' f� f �� i }' .�i� � a r s�� � i i .� { ��� ��f� . t F ✓ �� � � x "u,'� � � �° , `i �tl���isi'��������a '�. .�t x ` a�.y t Y °el"�rs'��; . E.-.. �s;Ff.k¢'S. �.�� . C �'.5. J Y 1 S � A F��• .� B. � f• � C r � �t.. G �_ � . .,. t � ': , , � � �f °; e F,�C��II �" r.���6E,—o � s � � c �r� �r � � t 'i a- � i t�F� ` >i�i Y v- C BYi�l6i✓ i y .z2 i t L . � � + t � iq P,3_��������Fl�`.� .f x � � i � �� � � �.n�'.. u�nlc.�,.�" r'` : � � . �� F ,k �,�.'ry>�a�. ���€o�.��!rti4 k�� — � } x �.►17k]� �{� ,�'II�'°,�pfj ��t/ r. } '�' 1`�- { P �. '1 I R ec^ � �"5 ` 6 `yy l F_ � �.� � `o��v'o` ' �� � �., i� t �+ � n � ' _.s .`- � �' , ,• �� r � �i�� � p � b_ r "7"� �t � �, r . ., � � v s --% r� - -,� +.�. � � � � ``�� t „ v � y,. � i re "' ''t- t I �1'. r 1 y }'' ; .���� •�R. .� ��P. „�y �'x ::§'. j'J_ r "'.1 �.�..` 4 •a y^ ATTACHMENT B CALIFORNIA R�GIONAL WATER QUALITY CONTROL BOARD CENTT2AL COAST REGION � MONITORIIYG AND R�PORTING PROGTiAM 1V0.R3-20043-0062 FOR WASTEWAT�R COLLECTtON AGCNC[ES TRIBUTARY TO THE SOUTH SAN LUIS OBISPO COUNTY SANITATION DISTRICT WASTEWATER TREATM�NT FACILITY SANTA CRUZ COUNTY This Moniroring and Reporting Program (MRP) establishes monitoring, record keeping, reporting and public notification requirements for Order No. R3•2004-0062, "Waste Discliarge Requireinents for Wastewater Collection Agencies Tributary to the South San Luis Obispo County Sanitation Disuict Wastewater Treatment Facilify, San Luis Obispo County". Revisions to this MRP may be made at any time by the Executive Officer, and may include a reduction or increase in the monitoring and reporting. A. REPORTING REQUIREMEiVTS I. The Permittee shall retain applicable records of all overflows,including, but not limited to: a. All original strip chart recordings for continuous monitoring instrumentation; b. Service call records and complaint logs of calls received by tlie Pennittee; c. Spill calls and records; d. Copies of all repoits required by this Order; e. The location ofthe sewage overflow and respective receiving waters, if any(nearest street address and Gfobal Positioning System(GPS)coordinates); f. An estimate of the volume of the overflow; g. A description of the sewer systein component fi•om which the release occurred (e.g., manhole, constructed overFlow pipe,crack in pipe,etc); h. The estimated date and time wlten the overflow began, when it stopped, and when the cleanup was completed; i. The cause or suspected cause of the overflow; ' j. Steps that have been and will be tal:en to prevent the overflow from r0curring, and a scl�edule to implement those steps; k. Documentation from tlie previous three years �vhich aie associated with responses and inves[igations of system problems related to sanitary sewer overflows at the overflow location; I. A list and description ofcomplaints from customers or others from the previous three years; and m. Documentation of performance and implementation measures for tlie previous three years. 2. If sampling and monitoring ai�e conducted oF any overFlow, records of, monitoring information sliall incJude: . a. The date,exact place,and time of sampling or measurements; b. Tlie individual(s)who perfonned the sampling or measurements; c. The date(s)analyses performed; d. The individual(s)who performed tlie analyses; e. The laboratory that conducted the analyses; f. Tlie analytical technique or method used; and, g. The results of such analysis. MRP No. R3-2004-0062 2 September 10, 2004 3. Records shall be maintained by the Pennittee for a minimum of five years from the date of the sainple, measurement, report or application. This period may be extended during ihe course of any unresolved litigation regarding a discharge or when requested by the Regional Doard Executive Officer. 4. Al] moniroring instruments and devices that are used by the Permittee to fulfill the prescribed monitoring ; program shall be properly maintained and calibrated as necessary to ensure their continued accuracy. B. SPILL R�PORTING , Renorting to tl�e Reeional Board ; l. In accordance with Regional Board Sewage Spill Reporting Policy, sewage spills greater than 1,000 gallons and/or all sewage spills that enter a water body of the State,or occur wiiere public contact is likely, regardless i of the size, shall be reported to the Regional Doard by telephone as soon as notification is possible and can be provided without substantiaily impeding cleanup or other emergency measures, and no later than 24 hours from the time that the Permittee has knowledge of the overflow. 2. Unless fully contained, overflows to storm drains tributary ro Waters of the United States shall be reported as discharges to surface waters. 3. A written report of all relevant infonnation shall be submitted to the Regionat Board within five days of the spill,and shall include no less inforination than is required on the cur�ent spill reporting form(Attachinent D), or equivalent,as approved by the Regional 8oard Executive Officer. Attachments to the report should be used as appropriate, and incidents reyuiring more time than the five-day period must be fol[owed by periodic written status reports until issue closure. Photographs taken during the overt]ow incident and cleanup shall be submitted to the Regional Boanl in harc!copy and electronic fonnat. 4. Tlie Permiitee shall sample ali spills to surface waters to detennine their efl'ects on surface waters and submit the data to tl�e Executive Of�icer within 30 days. Samples shall, at minimum, be analy2ed for total and fecal coliform bacteria and enterococcus bacteria for spills to inarine water,and fecal coliform bacteria for spills to fresh water. Sampling sliall be conducted in the afFected receiving water body upstream, at, and downstream of the overflow's point of entry,and as necessary to characrerize the overflow's impact and to ensure adequate clean-up. 5. Spills under 1,000 gallons that do not enter a water body shall be reported ro the Regional Boaid in�writing and electronically(Excel spreadsheet prefeired) within 30 days. Such reports shal! include, at a ininimuin, a tabular smnmary of spill dates, locations, volwnes,whether the spill discharged to surface waters (including conveyances thereto) or land, whether cleanup and/or disinfection was perfonned, the spill's cause, die number of spills at the location in the last ihree years,and weather conditions. This policy is subjec[[o revision by the Executive Officer. Contact Information Central Coast Regional Water Quality Control Board 895 Aerovista Piace, Suite 101 San Luis Obispo,CA 93401-541! Ph: (805)549-3147 PAX:(805)549-0397 6. The Penniitee shafl submit to the Regional Board annual summary reports of all overflows beuveen ' January 1 and December 31 of the previous year. The report is due Janunry 30 of cach ycar and it shall summarize the following infonnation for each overflow: MRP No. R3-2004-0062 3 September 10, 2004 a. Information requested in the Sewage Spill Report Fonn (MRP Attachment 2); b. How the overflow volume was estimated and/or calculated; c. Pliotograph(s)of spill, if taken; d. Where tha spill entered any storm diain inlet or surface waters; ' e. Steps taken or planned to reduce,eliminate, and prevent recurrence of the overFlow,and a schedule o£ inajor inilestones for those steps; f. Steps taken or planned to mitigate the impact(s) of the overFlow, and a schedule of major milestones for those steps; g. Any additional correspondence and follow-up reports, as necessary, to supplement the Wastewater Overflow Report Form and to provide detailed information on cause, response, adverse effects, corrective actions, preventative measures,or other infonnation. The annual reporl shall include detailed evaluations of repe[itive or chronically occurring circumstances, such as problematic collection system areas or common overfJow causes,and tlie corrective actions taken to address such systematic problems. A statement certifying thaE there were no wastewater overflows for the last twelve months may be submitted(when appropriate) in lieu of the annual overflow report. Renortine to the Governor's Office of Emereenc��Services 7. !n accordance with the Govemor's OfFce of Emergency Services (OES) 2002 Fact Sheet regarding the reporting of sewage releases (as revised or updated), the California Water Code, commencing with Section 13271, requires thac a dischazge of sewage into or onto State waters must be reported to OES. To report sewage releases of 1,000 gallons or inore (currently the federal reportable quantity) to OES, verballv natify the OES Warning Center at: (800)852-7550,or(916)845-8911. The following fax number should be used fa•follow-up information only. (916) 262-1677. The reportable quantity is sabject to revision'by die State of California. OES reporting requirements for sewage releases and , hazardous materials can be located on the OES Website @ www.oes.eaeov in the California Hazardous Materia[ Spill/Release Notification Guidance. The OES Hazardous Materials Unit staff is available for questions at(916)845-8741. OES Reporting Exceptions: Notification to OES of an unauthorized discharge of sewage or hazerdous substances is not required if: l)the discharge to State waters is a result of a cleanup or emergency response by a public agency;2)the discharge occars on land only and does not affect State waters;or 3)the dischazge is in compEiance �vith applicable waste discharge requirements. These exceptions apply only to the Permittee's responsibility to report to OES, and do not alter Uie Regional Board's reporting policies or waste discharge requirements. C. PRETREATMEIVT R�PORTING The Permittee shall submii an annual summary report to the Regional Board,. and provide copy to the Sanitation District, describing pretreatmenUsource control activities over the previous twelve months. This ' annual report is due no later than January 30 of cadi year and shall contain, but not be limited to, the contents described in the "Source Control Program" conlained in Section VIII of Guidance provided in Attachmen[C. ,,,,,, „�. ,.,,-�„�.,-,,,,,,� � v September 90,2004 D. REPORTING SCHEDULE Reports Due Date Annual Overflow Report(or Certification Statement)(MRP Section S.6) Annually-January 30 Pretreatment Report(MRP Section C) Annually-January 30 Annual Wastewater Collection System Management Plan Updates (WDR p��lly- Sanuary 30 Section D.4 and Attachment C,Sec6on X * ' Infiliration/Inflow&Spill Prevention Progtam Report(WDR,Section D.5) Annualiy-January 30 � RepoR of Waste Discharge (WDR Section H.I) March 1Q,2009 *The complete Wastewater Collection System Management Pian (addressing all of the elements described in Attachment C) shall be submitted initially March 31, 2005, subsequent submittals shall include updates and revisians to that ini6al subtnittaL �RDBRED B'Y �� _ oger W. ggs Executive Offi r �-�y-�y - Date S:/npdes/npda facilities/san luis o6ispo cdsoutl�slo caJcollution.m�p Task:l26-01 � . Files:Ciry oCArtoyo Gnnde,Ciry oCGrover Bach,Ocwno CSD WDR Order No. R3-2004-0062 ATTACHMENT C ELEMENTS OF THE WASTEWATER COLLECTION SYSTEM MANAGEMENT PLAN I. Goals: The goal of the Wastewater Collection System Mana�ement Plan is to prevent overflows and to provide a plan and schedule for iinplementation of ineasures to prevent averflows. i IL Organizatian: The Wastewater Collection System Mana�ement Plan must identify the following components: A. Administrative and maintenance positions responsible for implementing measures in the Wastewater Collection System Management Plan program, includin� lines of authority by organization chart or similar document;and B. The chain of communication for reporting overflows, from receipt of a complaint or other information, including the person responsible for reporting over8ows to the Regional Water Quality Control 6oard, San Luis Obispo County Health Departments, the Sanitation District, and the State Office of Emergency Services(OES). III. Legal Authority: The Wastewater Collection System Management Plan shall include legal authority, through sewer use ordinances,service agroements,or other legally binding procedures,to: A. Control infiltration and connections from inflow sources, including satellire systems; B. Require that sewers and connections be properly designed and constructed; C. Ensure proper installation, testing, and inspection of new and rehabilitated sewers (suc6 as new or rehabilitated collector sewers and new or rehabilitated service laterals); D. Limit fats and greases and other debris that inay cause blockages in the collection system;and E. Implement the national pretreatment proeram authorities specified under 40 CFR 403.8(�(l). IV. Measures and Activities: In order to reduce overFlows, the Wastewacer Collection System Management Plan must address the elements listed below tflat are appropriate and applicable to the Permittee's system and identify the person or position in the or�anization responsible for each element. A. Provide adequate operation and maintenance of facilities and equipment. B. Maintain an up-to-date map of the collection system showing all gravity line segments and manholes, pumping facilities,pressure pipes and valves,and stonn wa[er conveyance facilities. C. Maintain relevant infonnation ro establish and prioritize appropriate Wastewater Collection System Management Plan activities(such as the immediate e(imination of dry weather overFlows or overflows into sensitive waters, such as public drinking water supplies and their source waters, swimming beaches and waters where swimming occurs, shellfish growing areas, waters within Federal, State, or Iocal parks, and water containing threatened or endangered species or their habitats), and identify and i I lustrate trends in overflows,such as frequency and volume. D. Routine preventive operation and maintenance activities by sta(f and contractors; including a system for scheduling re�ular maintenance and cleaning of the collection system with more frequent cleanina and maintenance targeted at known problem areas at�+�ell as a tracking system for work orders. E. Identify and prioritize structural deficiencies and implement short-term and lon�term rehabilitation ' actions to address each deficiency. This shall include a rehabilitation plan including schedules for the entire system. As with the preventative maintenance program,sewer rehabilitation and replacement is ' i WDR Order No. R3-2004-0062 A7"fACHMENT C crucial for the prevention of spills. Among the provisions that should be specified in this section is(he need to direct rehabilitation and replacement of sewer pipes which are at risk of coll'apse or prone to more frequent blockages due to pipe defects. The program should also include regular visual and video inspection of sewer pipes and a system for assessing and ranking the candition of sewer pipes. Finally, the reiiabilitation and replattment plan should inclade a financial plan that properly manages and pro[ects the infrastructure assets. The actions ouHined above shali be coordinated with the requirements for Infiltration/Inflow and Spill Prevention contained in Order No. R3-2004-0062, Sec[ion D,5. F. Provide training on a regular basis for staff in collection system operations, mainrenance, and moniroring,and determine if contracrors's[affs are appropriately trained. G. Provide equipment and replacement parts inventories, including identificaiion of critical replacement parts. H. Establish an implementation plan and sdiedule for a public education outreach program that promotes proper disposal ofgrease and fats. 1. Establish a plan for responding to overFlows from private property that discharge to public right of ways and storm drains, to prevent discharges from overFlows to surface waters and storm d�ains: 1. pevelop a plan and a schedule for providing an analysis oFalternative methods of disposal for grease and fats, and an implementation plan and a schedule for providing adequate disposal capacity for grease and fats gene�ated within the sewer system service area. K. Describefiscal resources necessary to ensure system operetion,including fee structure,fiscal resources, actual and projected five-year budget expenses for staffing, operation, capital improvement projects; and reserves. L. Describe staffing available to ensure system operation (identifying individuals and titles) including developing, imptementing and revising the Program. Include an organizational chart, duties and training fmquency. _ , V. Design and Performance Provisions , A. Develop anNor adopt design and construction standards and specifications for the installation of new sewer systems, pump stations, and other appurtenances; and for rehabilitation and repair of existina sewer systems;and B. Develop and/or adopt procedures and standards for inspecting and testing the installation of new sewers,pumps,and otherappurtenances,and for rehabilitation and repair projects. VI. Moniforing,Measurement,and Program Modifications A. Monitor the implementation and, where appropriate, measure the effectiveness of each element of the Wastewater Collection System Management Plan; B. Update program elements,as appropriate,.based on monitoring orperformance evaluations;and C. Modify the Wastewarer Collection System Mana�ement Plan program, as appropriate, to keep it updated and accurate and available for audi�at all times. V[I. Overllo�r Emergency Rcsponse Plan: The Perniittee shall develop and implement an Overflow Emergency Response Plan that identifies measures to protect public health and [he environment At a minimum, this plan should provide for the fol lo+vin�actions. 2 WUR Order No, R3-20Q4-0062 A7"I'ACHMENT C A. Ensure proper notification procedures so that the primary responders are informed of alt overflows in a timely manner(to the greatest extent possible). B. Ensure that all overflows are appropriately responded to, including ensuring that reports of overflows are immediately dispatched io appropriate personnel for investigation and appropriate response. G Ensure immediate notification of health agencies and other impacred entities (e.g., water suppfieis) of all overFlows. The plan should provide for the reporting of overFlows to the Regional Board,San Luis Obispo County Health Department,the Sanitation District,and the State Office of Emergency Services (OES) in accordance wi[h each agency's policy. The Wastewater Collection System Management Plan � should identify the public health agency and other officials who will receive immediate notification. D. Ensure tha[ appropria[e staff and contractor personnel are aware of and follow the plan and are appropriately trained. E. Provide emergency operations, such as tra�c and crowd control, and other necessary emergency response. F. Take all reasanable steps to contain sewage, prevent sewage discharges to surFace waters, and ' minimize or conect any adverse impact on the environment resulting from the overflows, including such acceierated or additional monitoring as may be necessary to determine the nature and impact of the discharge. G. Develop and implement a plan for the use of portable aerators where complete recovery of the sanitary sewer overflows is not practicable and where severe oxygen depletion in existing surface waters is expected. H. Develop and impleinent a plan to respond in a timely manner to spills and other emergencies. Collection system staff should be able to respond to a sewage spill in less than an liour froin tlie first call. The Perniittee should be capable of ineeting this response time day or ni�ht, every day oT the week. The Permittee must own or have ready access m spill and emergency response equipment such as vacuum trucks, hydroflushers,pumps, temporary bypass hoses,and portable generators of adequate number and capacity to operate pump stations. I. Describe offsite a�id onsite alarm systems, response times, and me[hods for detecting spills fi�oin the system, VI[I. Source.Contro[ Program: Prepare and implement a groase, fat,and oil source control program to reduce the ainow�t of these substances discha aed to the sewer collection system. This p[an shatl include the legal authority to prohibit discharges ro the system and identify measures to prevent overflows caused by fat,oil, and grease blocka�es of sewers. The elements of an effective grease control program may include requirements to install grease removal devices (such as traps or, preferably, interceptorsj, design standards for the removal devices, maintenance requirements, Best Management Practices (BMP) requireinents, record keeping, and reporting requirements. An ef�'ective grease cantrol program must also include authority to inspect grease producing facilities, enforcement audiorities,and sufficient staff to inspect and enforce the grease ordinance. All source control and pretreatment activities shall be coordinated with the Sanitation District. • A. The�rease control program shall identify sections of the sewer system subject to grease 6lockages and establish a cleaning main[enance schedule for each section;and B. The pro�ram shall develop and implement source control measures, for all sources of grease and fa[s dischar�ed to the sewer system,foreach section identified in(A)above. 3 WDR Ordcr No. R3-2004-0062 AT7'ACHMENT C IX. System Eraluation and Capacity Assurance I'lan: Prepare and implement a capital improvement plan that will provide hydraulic capacity of key sewer system elements under peak flow conditions, At a minimum,the plan must include: A. System Evaluation - Evaluate current capacity of the collection system including diversions of urban runoff to the sewer system and those portions of the collection system which are experiencing or contributing to an overflow discharge caosed by hydraulic deficiency. The evaluation must provide estimates of peak flows (including Flows from overFlows that acape from the sys[etn) associated with conditions similar ro those causing overflow events, estimates .of the capacity of key system components, hydraulic deficiencies (including components of the system with liini[ing capacity), and ihe major sources that contribute to[he peak flows associated with overflow events; B. Capacity Enhancement Measures- Establish a short- and long-term capital improvement program to ' address deficiencies including prioritization, al[ernatives analysis, schedules, diversions of urban runoff ro the sewer sys[em during dry weather periods, and control of infiltration and inflow during both we[weather events and dry wea[her periods; and C. Plan Updates- At a minimum, the plan must be updated annually to describe any significant change in proposed actions and/or implementation schedules. The updates should include available infonnation on the performance of ineasures that have been implemented. X. Annual Program Updates: As part of the Sewer System Mana�ement Plan, the Pennittee shall conduct an internal audit, appropriate to the size of the system and the number of overFlows, and submit a report of � such audit (in conjunction with the annual report specified in the MRP), evaluating the Sewer System Management Plan and its cornpliance with this subsection, including its deficiencies and steps ro correct them. S:/npdos/npdes f'acililieshan luis obispo co/sauih slo co/eollection guidance , 4 ATTACHMENT D � Catifornia Regional Water Quality Control Board, Central Coast Region SEWAGE OVERFLOW REPORT Include all available details use attachments as needed —submit ollow-u written re orts as necessar Reporting Party Phone Discharger Phone Address City Date Of Overflow Time Overflow Time OverHow Be an Sto ed ' Location/Address of Overflow I Origin Volume Of Overflow(Gallons) � path Of Overtlow Waterbody/Bodies Affected Cause Of Overilow(grease, rools,vandalism,pump station ' failurq etc.) Action Taken To Stop . Overflow Time Cleanup Began Time Cleanup Complete Discussion Of Cleanup Were Public Health Wamings � Number Of Overflows In Same ; Posted, And if So, Where7 Location In Last Three Years Discussion Of Measures Taken : To Prevent Overflows AC This � � Location • Agencies DlotiBed Counry ' Office of j Fish and County Other(List) (Please Check) ; Env.Health � Emergency G�e : Board Of Services � Supervisors 3NATURE/TITL£ i DATE i l I 9.a. CITY OF ARROYO GRANDE CITY COUNCIL NOTICE OF PUBLIC HEARING On TUESDAY, JUNE 26, 2007, the Arroyo Grande City Council will conduct a public hearing at 7:00 P.M. in the COUNCIL CHAMBERS, 215 E. BRANCH STREET, to consider the following item: Proposed Utility Rate Increases. The City Council will consider rate increases for water and sewer rates and service charges, as well as rate increases for Lopez water charges, which would become effective July 1, 2007 and July 1, 2008. These proposed utility rate increases are necessary for the City to continue to provide safe and reliable water and sewer services to the citizens of Arroyo Grande due to increasing operational costs, including, but not limited to, the rising cost of electricity and natural gas needed to operate utility facilities, increased costs associated with operation and fuel for utility vehicles, ongoing maintenance of infrastructure, increased labor costs, and increased costs associated with meeting more stringent State and Federal regulations. Consistent with the requirements of Proposition 218, specific notice of the proposed utility rate increases was mailed to all property owners within the City limits. The Council may also discuss other hearings or business items before or after the items listed above. If you challenge the proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Failure of any person to receive the notice shall not constitute grounds for any court to invalidate the action of the legislative body for which the notice was given. Information relating to this item is available by contacting the Financial Services Department at 473-5430. The City Council meeting will be televised live on Charter Cable Channel 20. � (/1��n,�-u,cvv�-_ Kelly Wet ore, ity Clerk Publish 1T, 1/8 page ad, The Tribune, Friday, June 15, 2007 � pRROy� � C� � INCORPORATEO 9.1 V m # eu�v io. +en * c4��FORN�P MEMORANDUM To: cinr couNCi� FROM: ANGELA KRAETSCH, DIRECTOR OF FINANCIAL SERVI ES� DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS C� SUBJECT: CONSIDERATION OF UTILITY RATE INCREASES AND ADOPTION OF RESOLUTIONS ESTABLISHING WATER, SEWER AND LOPEZ WATER RATES AND CHARGES DATE: JUNE 26, 2007 RECOMMENDATION: It is recommended the City Council: 1) adopt a Resolution establishing water rates and charges; 2) adopt a Resolution establishing sewer rates and charges; and 3) adopt a Resolution establishing the amount of Lopez Contract Charges. FUNDING: The proposed rate changes will result in an increase of approximately $140,000 to the Water Fund, $42,000 to the Sewer Fund, and $700,000 to the Lopez Fund in FY 2007- 08. DISCUSSION: On June 14, 2005, the City Council approved the 2005 Water and Wastewater Rate Study and adopted a resolution establishing Water and Sewer rates and Lopez Contract charges for FY 2005-06, FY 2006-07, FY 2007-08 and FY 2008-09. The Council approved the Water Conservation rate structure or the tiered rate system. The tiered rates went into effect in March 2006. A comparison in water consumption was prepared using March 2005 through March 2006 at the flat rate vs. March 2006 through March 2007 under the tiered rate. The results are as follows: Flat Rate Tiered Rate 3/05 to 3/06 3/06 to 3/07 Single Family consumption 2,307 acre-feet 2,149 acre-feet Multi-Family consumption 286 acre-feet 261 acre-feet The single-family consumption decreased by 7% and the multi-family decreased by 10%. The target goal was 5%. The conservation rate structure, the City's retrofit program, and public education all seem to be having a positive impact on the City's conservation efforts. cirY couNCi� CONSIDERATION OF RESOLUTION APPROVING INCREASES IN WATER, SEWER, AND LOPEZ WATER RATES AND CHARGES JUNE 26, 2007 PAGE 2 During recent budget preparations, staff discovered that the Sewer rates listed in the � 2005 Water and Wastewater study differed from the rates that were approved and adopted by Resolution 3850 on June 14, 2005. Due to this oversight, there was no increase in Sewer fees for FY 2006-07. The rate increases included in this report for FY 2007-08 and FY 2008-09 match the 2005 Water and Wastewater study. i On July 24, 2006, the California Supreme Court ruled that metered rates for consumption of water and sewer charges are "property related fees" subject to Proposition 218. These fees may not be imposed or increased unless the local government conducts a majority-protest proceeding 45 days after mailing notice to all property owners. In addition, revenues from water and sewer charges are governed by Proposition 218 regulations. These generally require that rates not exceed the cost of providing the service and that rate proceeds be used only to provide the service. Transfers from utiliry accounts into the City's General Fund must be justified as repayment of a loan to the utility by the General Fund or as reimbursement to the General Fund for the cost of services provided to the utility. In order to be compliant with Proposition 218, notices were mailed to approximately 6,600 property owners and users by May 11, 2007. The notice informed recipients of the City Council Public Hearing to be held on June 26, 2007 and provided directions on Ihow to submit a written protest, pursuant to Proposition 218. It written protests to the proposed rate increases are submitted by a majority of the affected property owners, the increases may not be imposed. As of June 20, 2007, the City had received three written protests to the proposed water rate increase, two written protests to the proposed sewer rate increase, and three written protests to the proposed Lopez rate increase. The rate increases that are included in this report are the same increases that the City Council approved at the June 14, 2005 Council meeting. However, due to the Proposition 218 requirements, staff is presenting this item to the Council again for approval. Staff is recommending that the Council approve the proposed increases in Water, Sewer, and Lopez rates and charges. ALTERNATIVES: The following alternatives are provided for City Council consideration: 1. A rove staff recommendation to ado t resol i pp p ut on approving increases in Water, Sewer and Lopez rates and charges; ,� 2. Do not approve staff recommendation and request further information; I,I 3. Modify staff recommendation and approve; li 4. Provide direction to staff. Attachments: A) Proposition 218 Notice B) 2005 Water and Wastewater Rate Study i RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ESTABLISHING WATER RATES AND CHARGES WHEREAS, Section 13.04.030 of the City of Arroyo Grande Municipal Code enables the City Council to modify, by resolution, the rates and charges for furnishing water to customers; and WHEREAS, the City has conducted a study which developed financial plans for the provision of water service that included any revenue adjustments required to meet all financial obligations, construction of the capital improvement projects proposed by the City, and maintenance of appropriate fund balances and debt service coverage requirements; and, WHEREAS, water service rates and charges are designed to meet the objectives desired by the City Council which consist of operating and maintaining a safe and reliable water system, simplified rate structures that are easy to understand and administer, consideration of industry practices, and recovery of the cost of service; and, WHEREAS, the City Council has reviewed and considered the information and public testimony presented at a duly noticed public hearing, and in the staff report and record of this matter; and, WHEREAS, notice of the proposed increase in water rates and charges has been provided pursuant to Proposition 218, and a majority of the affected property owners have not presented written protests to the proposed increase in water rates and charges. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby adopts the water rates and service charges set forth in Exhibit "A" attached hereto and incorporated herein by this reference. 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 2007 . RESOLUTION NO. PAGE 2 TONYFERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Exhibit A CITY OF ARROYO GRANDE WATER RATES AND SERVICE CHARGES Service Charges Inside City Outside Ciry Meter Size FY OS/06 FY 06/07 FY 07/08 FY 08/09 FY OS/06 FY 06/07 FY 07/08 FY 08/09 Inches $/month $/month $/month $/month $/month $/month $/month $/month 5/8 $ 4.30 $ 4.60 $ 4.90 $ 5.25 $ 8.60 $ 9.20 $ 9.80 $ 10.50 3/4 4.30 4.60 4.90 525 8.60 9.20 9.80 10.50 1 5.05 5.40 5.80 6.20 10.10 10.80 11.60 12.40 l l/2 6.05 6.45 6.90 7.40 12.10 12.90 I3.80 14.80 2 8.70 9.30 9.95 10.65 17.40 18.60 19.90 21.30 3 28.60 30.60 32.75 35.05 57.20 6120 65.50 70.10 4 35.90 38.40 41.10 44.00 71.80 76.80 82.20 88.00 6 53.10 58.80 60.80 65.05 106.20 113.60 121.60 130.10 8 73.90 79.05 84.60 90.50 147.80 158.10 169.20 181.00 Volume Charges Inside City Outside City Customer Class FY OS/06 FY 06/07 FY 07/OS FY OS/09 FY OS/06 FY 06/07 FY 07/08 FY 08/09 $/Ccf $/Ccf $/Ccf $/Ccf $/Ccf $/Ccf $/Ccf $/Ccf Single Family(a) Firstl2Ccf/bi-month $ 0.96 $ 1.02 $ 1.09 $ L16 $ 1.20 $ 128 $ 1.36 $ 1.45 Next 20 Ccf/bi-manth 1.06 1.13 1.21 129 133 1.41 1.51 1.61 Next 32 Ccf/bi-month 120 L28 137 1.46 1.50 1.60 1.71 1.83 Next 64 Ccf/bi-month 1.45 1.55 t.66 1.77 1.81 1,94 2.08 221 Mul[i Famity(a) First 12 Ccf/bi-month $ 0.96 $ 1.02 $ 1.09 $ 1.16 $ 120 $ L28 $ 1.36 $ 1.45 Next 6 Ccf/bi-month 1.06 l.l3 1.2I 1.29 1.33 1.41 L51 1.61 Next 12 Ccf/bi-month 1.20 128 1.37 1.46 1.50 1.60 1.71 1.83 Next 30 Ccf/bi-month 1.45 1.55 1.66 1.77 1.81 1.94 2.08 2.21 Business 1.06 1.13 1.21 1.29 133 1.4( 1.51 1.61 Church 1.06 1.13 1.21 129 133 1.41 L51 1.61 School 1.06 1.13 1.21 129 133 1.41 L51 1.61 Hospital 1.06 L13 1.21 1.29 133 1.41 L51 L61 Irrigation 1.16 1.24 1.33 1.42 1.45 1.55 1.66 1.78 Motel 1.06 1.13 121 129 133 1.41 L51 1.61 Convalescent Homes 1.06 1.13 L2l 1.29 1.33 L41 1.51 1.61 Other 1.06 1.13 L21 1.29 L33 IAl 1.51 1.61 Water Wheeling 1.05 L12 L20 1.28 Hydran[ 7.67 8.21 8.78 939 Fire Protection Charges Meter Size FY OS/06 FY 06/07 FY 07/08 FY OS/09 [nches $/month $/month $/month $/month i I/2 $ 1J6 $ 1.88 $ 2.01 $ 2.I5 2 1.76 1.88 2.01 2.15 3 5.25 5.62 6.01 6.43 4 10.53 1127 12.06 12.90 6 2924 3129 33.48 35.82 � 8 6L40 6590 '7030 75.22 l 0 105.26 112.63 120.51 128.95 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ESTABLISHING SEWER RATES AND CHARGES WHEREAS, Section 13.12.430 of the City of Arroyo Grande Municipal Code enables the Ciry Council to modify, by resolution, the rates and charges for furnishing sewer service to customers; and WHEREAS, the City has conducted a study which developed financial plans for the provision of sewer services that included any revenue adjustments required to meet all financial obligations, construction of the capital improvement projects proposed by the City, and maintenance of appropriate fund balances and debt service coverage requirements; and, WHEREAS, sewer service rates and charges are designed to meet the objectives desired by the City Council which consist of operating and maintaining a safe and reliable sewer system, simplified rate structures that are easy to understand and administer, consideration of industry practices, and recovery of the cost of service; and, � WHEREAS, the City Council has reviewed and considered the information and public testimony presented at a duly noticed public hearing, and in the staff report and record of this matter; and, WHEREAS, notice of the proposed increase in sewer rates and charges has been provided pursuant to Proposition 218, and a majority of the affected property owners have not presented written protests to the proposed increase in sewer rates and charges. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby adopts the sewer rates and charges set forth in Exhibit "A" attached hereto and incorporated herein by this reference. 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 2007 . � I RESOLUTION NO. PAGE 2 TONYFERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY I . Exhibit A CITY OF ARROYO GRANDE SEWER RATES AND SERVICE CHARGES Customer Class FY 2006/07 FY 2007/08 FY 2008/09 I AO Customers $ 2.t0 $ 220 $ 2.25 IVolume Charge-$per hundred cubic feet Single Family $ 0.37 $ 0.40 $ 0.42 Multi Family 0.52 0.56 0.58 Business 0.58 0.62 0.64 Church 0.58 0.62 0.64 School 0.58 0.62 0.64 Hospital 0.58 0.62 0.64 I Motel 0.58 0.62 0.64 Convalescen[Homes 0.58 0.62 0.64 Other 0.58 0.62 0.64 � I I i RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ESTABLISHING THE AMOUNT OF LOPEZ CONTRACT CHARGES WHEREAS, Section 13.04.030 of the City of Arroyo Grande Municipal Code enables the City Council to modify, by resolution, the rates and charges for Lopez contract charges; and WHEREAS, the City has calculated the estimated future revenues under existing Lopez contract charges to determine if they are adequate to meet costs associated with the Lopez Water Treatment Upgrade, and capital outlay associated with Flood Control Zone 3 and the Lopez Dam; and WHEREAS, Lopez contract charges are calculated to cover the City's share of costs to operate and maintain the Lopez Dam and Reservoir, to purchase capital outlay equipment, and to meet debt service costs associated with the Lopez Water Treatment Upgrade project; and WHEREAS, the City Council has reviewed and considered the information and public testimony presented at a duly noticed public hearing, and in the staff report and record of this matter; and WHEREAS, notice of the proposed increase in Lopez contract charges has been provided pursuant to Proposition 218, and a majority of the affected property owners have not presented written protests to the proposed Lopez contract charge increase. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby adopts the Lopez contract charges set forth in Exhibit "A" attached hereto and incorporated herein by this reference. 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 2007. RESOLUTION NO. PAGE 2 TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY � � ' Exhibit A � CITY OF ARROYO GRANDE ' LOPEZCHARGES - . � FY 2006•07 � � FY 2007-08 FY 2008-09 Meter RatioBg. � . � ' Meter Size Unit Ratio Inside City Ou[side Ciry c. Inside City Outside City Inside City Outside Ciry . �, Mehr Charges ; i � 5/8- inch 1.0 $ 29.46 E .38.41 $ 3626 S 47.27 S 39.69 $ 51.74 3/4-inch 1.0 29.46 38.4,1 3626 47.27 39.69 5194 1 -inch 1.4 42:26- 5136 � 52.01 63.22 56.93 69.19 l l/2-inch 1.9 54.91 ;64.02 67.58 78.80 73.96 86.25 2-inch 2.3 67.86 76.98 83.53 94.75 91.42 103.70 3-inch 2.7 80.52 89.60 . 99.11 110.27 108.47 120.70 ' 4-inch 32 93.48 102.40 115.06 126.03 125.93 137.94 6-inch 4.0 - 119.22 128.02 146.73 157.56 160.59 172.45 8-inch 5.0 147.30 154.66 18t29 19035 198.43 20835 , Additional Unit Chsrges ��, SingleFamily 1.00 $ 29.46 S 38.41 $ 36.26" $ , 47.27 $ 39.69 $ 5t.74 � Mobile Home Park 0.43 12.71 �16.57 . 15.64 2039 17.12 2232 O[her Multi-Family 0.43 12.71 16.57 . 15.64 2039 17.12 2232 _ Business 0.90 26.66 '34.75 32.81 42.76 35.91 46.81 HosPital 0.77 22.59 29.4$ 27.80 3623 30.43 39.66 . Motel 0.21 616 8.04 ' 7.59. 9.89 830� 10.82 ConvalescentHome 0.23 6.68 8.72 8.22 ]0.72 9.00 11.73 { . i j n . a 'j P.O.Box SSO �� °� ; ' " ' ' 214 East Branch Street , ��w� , Arroyo Grande,CA 93421 f ' Phonr.(80�473-5430 Floanee � " CJ������ v Phone:(80.5)473-5434. Businesd I.ieease 'FINANCIAI..SERVICES ; -... `` Phone: 80�473-5438 Water Billing ( � ., . , ' FAX:(805)473-0386 . " E=Mbil:agc(ty@arroyognnde.org ` , , .. < -, , ;: ; ATTACHMENT A ... , . . _: ., • Dear Property Owner, , , . ,. � � � � . . . , . � , � ,. � .i; .' ' � . , � , This .notice is intended to inform'you that the Arroyo�:Grande City Coiincil will hold a public hearing , t regarding a proposed utility service rate increase for cusfomers receiying City of Arroyo Grande>water and - ' sewer utility services,(the,"Proposed Ufility Rate Increases"). The Proposed Utility Rate Increases will be � considered by the Arroyo Grande_City,Council at the date; time and location specified below. Consistent ( with the requirements of Proposrtion 218,tkus norice also provides you wifh the following informationi , � The amounf of the Pioposed Utihty Rate Increases,�and ' ` • The basis upon which the amount of the Proposed Utility Rate Increases were calculated. . . ( : �NOTICE OF 'PUBLIC HEARING i A Public hearing for the Proposed Utility Rate Increases will'be held on: . .. _ ' . ' .. . ._ !�� n. . . . . . . . Date: Tuesday,June 26,2002 `,Time: 7:OO,pm Place: City of Arroyo Grande;'Council Chambers, 215 East Brarich Street, Arroyo Grande, CA 93420 . . , Tliis notice has been sent to a11 property owners who currently receive these water and sewer utility services. If adopted, the Proposed Utility Rate Increases would become.effective July 1; 2007 and July 1, 2008. This . notice also describes how to file a protest against the Proposed Utility Rate Increases (see page 4). PROPOSED UTILITY RATE`INCREASE AMOUNTS _ The following charts (see page.2 and 3) provide a.summary of the Proposed Utility Rate Increases to be i, _ considered by the Arroyo Grande.City:Council at the piiblic hearing r8ferenced above. The charts present I the Proposed Utility Rate Increases from fiscal year 'OS/'06 to '08/'09. A 4-yeaz utility rate plari was approved by the CiTy.Council on June 14; 2005. The Proposed Utility Rate � Increases aze scheduled to go into effecYJuly 1, 2007. 'As'part of the_Proposed Utility Rate Increases, staff i has proceeded:with"the notification process, pursuant to Proposition 218. . i �.. ". ; , _ I i a , `. ' � i � CITY OF ARROYO GRANDE � � � " WATER RATES AND SERVICE'CHARGES i Service Charges � � [nside City � Outside City � Meter Size FY OS/06 FY 06/07 FY 07/08 FY OS/09.� � .FY OS/06 FY 06/07 FY 07/08 FY 08/09 � Incfies $/month $/month $/month� � S/month $/month $/month $/month $/month 5/S $ 430 S 4.60 $ 4.90 S ' 'S.25 $ 8.60 $ 9.20 $ 9.80 $ 10.50 3/4 430 4.60� 4.90.� '� �5.25 � 8.60 � 9.20 9.80 10.50 ,� I 5.05 5.40 5.80 ; 6.20 10.10 10.80 11.60 12.40 t 1/2 6.05 6.45 6.90 7.40 12.10 12.90 13.80 I4.80 2 8.70 930 9.95 �!', 10.65 t7.40 I8.60 19.90 2130 3 28.60 30.60 32.75 , j 35.05 5720 6120 65.50 70.10 4 35.90 . 38.40 41.10 ��' 44.00 71.80 76.80 82.20 88.00 6 53.10 58.80 60.80 , 65.05 106.20 113.60 121.60 130.10 8 73.90 79.05 84.60 ,� 90.50 149.80 " 158.10 16920 18t.00 . Volume Charges � , Inside Cily � Outside City Customer Class FY OS/06 FY 06/07 FY 07/08 FY 08/09 FY OS/06 FY 06/07 FY 07/08 FY 08/09 . $/Ccf S/Ccf $/Ccf $/Ccf $/Ccf' $/Ccf $/Ccf S/Ccf i Single Family(a) � � ' Firs[12 Ccf/bi-month $ 0.96 S 1.02 S 1.09 $ 'i aL16 $ 120 $ 128 S � 1.36 $ 1.45 Next 20 Ccf/bi-month 1.06 1.13 1.21 �129' �1:33 " 1.41 1.51 1.61 Next 32 Ccf/bi-month 1.20 1.28 1.39 � 1.46 1.50 1.60 1.71 1.83 � Next 64 Ccf/bi-mon[h 1.45 1�.55 1.66 , ��1.77 1.81 1.94 2.08 2.21 Multi Faznily(a) , ' � � j First 12 Ccf/6i-month $ 0.96 $ 1.02 $ 1.09 $ ���: ;�1.16 $ 120 $ 128 $ 136 $ L45 t Next 6 Ccf/bi-mon[h 1.06 1.13 121 '� °�.1.29 133 1.41 l.5 t 1 bl { Next l2 Ccf/bi-month 1.20 - t.28 137 1.46 ].50 1.60 1.71 1.83 � Next 30 Ccf/bi-month 1.45 1.55 ' 1.66 ��_ '11.77 1.81 1.94 2.08 221 Business 1.06 1.13 1�21 � �,129 1.33 lAl 1.51 1.61 � Church 1.06 1.13 ' 1.21 L29 1.33 1.41 1.51 1.61 School 1.06 1.13 1.21 + � �1.29 133 1.41 1.51 1.61 Hospital 1.06 1.13 . 1.21 �,i j�t.29 133 1.41 1.51 1.61 Irrigation 1.16 1.24 1:33 '' a1.42 1.45 � 1.55 1.66 1.78 Motel 1.06 1.13 L21 !� �j129 133 IAt 1St L61 � ConvalescentHomes 1.06 1.13 1.21 "�1.29 ' 1�33 1.41 L51 1.61 O[her 1.06 1.13 121 ' � +1.29 1.33 1.4] 1.51 1.61 Water Wheeling 1.05 � 1.12 1.20 � � �I128 � i � Hydrant 7.67 821 8]8 . �„ '�.�9.39 . . � .� Fire Protection C6arges I Meter Size FY OS/06 FY 06/07 .FY 07/08 FY 08/09 , - ' Inches $/month $/month ' $/month ��$'/month 1 I/2 $ 1.76 S 1.88 $ 2.01 S " ,2.15 2 1.76 1.88 2.01 " '� 12.15 3 525 5.62 � 6.01 �' '� Y6.43 ' 4 10.33 11.27 t2.06 �; t2.90 � : 6 2924 3129 33.48 35.82 8 61.40 65J0 �70.30 �� ` 75.22 � 10 (0526 ll2.63 120.51 �� I28.95 � , i,l �i i CITY OF ARROYO GRANDE , � . . � SEWER RATES AND SERVICE CHARGES � ' � Customer Class FY 2006/07 FY 2007/08' 'j FY 2008/09 . � . All Customers $' ' 2.10 $ 2.20 S 2.25 � IV olume Chazge-$per hundreA cubic feet � � � Single Family $� 037 �$ 0.40' '� $ 0.42 . Mul[i Family 0.52 0.56 .I; ,: 0.58 Business - 0.58 0.62 ;; '� - 0.64 , Church 0:58 0:62 `:� . 0.64 � School 0.58 0.62 �' ; 0.64 HospiWl � �� 0.58 0.62 ,� , 0.64 - Motel 0.58 0.62 '�. �. 0.64 ._ Convalescent Homes 0.58 � 0:62 '�� � 0.64 Other 0.58 0.62 0.64 CTTY OF�ARROYO'�;GRANDE ' � LOPEZCHARGES FY 2006-07 ' FY 2007-08 FY 2008-09 Meter Ratio/Eg. . Me[er Size Unit Ratio Inside City Outside CiTy � !�� Inside Ciry ' Outside City Inside City Outside City Meter Charges � - . ; , � j 5/S- �inch 1.0 S 29.46 $ 38.41 �� $ 36.26 $ 47.27 $ ,39.69 $ 5t94 i� 3/4-inch 1.0 29.46 � 38.41 '� � 36.26 . 47.27 39.69 51.74 l�-�inch 1.4 � 4226 5136 � ,52AI 63.22 56.93 � 69.19 L]/2-inch t.9 54.91 64.02 �' 67.58 78.80 73.96 86.25 2'r inch 23 67.86 76.98 !; !; 83.53 9495 91.42 103.70 3-inch 2.7 80.52 59.60 !. '�� ' 99.t I 110.27 108.47 120.70 4-inch 3.2 93.48 = 102.40 ;. ;; 115.06 126.03 125.93 137.94 6-inch 4A 11922 128.02 .', I�' 146.73 157.56 160.59 172.45 8-inch 5.0 14730 154.66 '� �" 181.29 19035 198.43- , 20835 � .; Additional Unit Charges � � Single Family t.00 S 29.46 $ 38.41 i, '$ 36.26 $ 4727 $ 39.69 $ 51.74 � � Mobile Home Park 0.43 12.71 16.57; ,` 15.64 _ 20.39 17.12 2232 � Other Multi-Family 0.43 12.71 . 16.59 % �. 15.64 - 20.39 17.12 2232 � Business 0.90 26.66 34.75 '. '' 32.81 42.76 35.91 . 46.81 Hospi[al 0.77 22.59 29.45 i� �:, 27.80 3623 30.43 39.66 ! Motel 0.21 6.16 8.04 ;�. ? 7.59 9.89 830 10.82 ' ConvalescentHome 023 6.68 , 892 i; ��'�, 822 ]092 9.00 . 11.73 ( BASIS FOR THE PROPOSED UTILITY RATE INCREASES � . i The Proposed Utility Rate Increases aze necessary for the City to continue to provide safe and reliable water i and sewer services to the citizens of Arroyo Grande due'I to increasing operational costs. Several factors ; have contributed to the increase in costs, including, but;not limited to; the rising cost of.electricity and � _ . i , �: I I natural gas needed to operate utility facilities, increased!:costs associated with operation and fuel for utility � vehicles, ongoing maintenance of infrastructure, increased.labor costs, and increased costs associated with meeting more stringent Stafe and Federal regulations. : WRITTEN PROTEST: Pursuant to Proposition 218, you may submit a written profest against any or all of the Proposed Utility Rate Increases to the City Clerk before the close of the public heazing referenced above (page.l). You must file a ; separate written protest for each type of utility rate(Watei,Sewer, and/or Lopez)that you are protesting. A written protest must contain a description of the pazcel or parcels,in which the person signing the protest has an interest sufficient to identify the parcel(s) including the Assessor's Pazcel Number (APN). If the party signing the protest is not shown on the last equalized assessment roll of San Luis Obispo County as the owners of the pazcel(s), the protest must contain, or be accompanied by, written evidence that such party is the owner of the pazcel(s). Protest letters should alsoi;�indicate which proposed utility rate increase is being protested: Water, Sewer, and/or Lopez: Written protests regazding the Proposed Utility Rate Increases may be mailed to: City of Arroyo Grande Attn: City Clerk R.O. Box 550 . ' Arroyo Grande, CA 93421 ' � Written protests may also be personally delivered to the City Clerk at the Arroyo Grande City Hall (214 E. Branch Street, Arroyo Grande, CA). To be valid, a protest must be in writing and received by the City Clerk before the close of the public hearing referenced above(page 1). If you have questions about the Proposed Utility Rate Increases,please ca11 the City of Arroyo Grande Finance Department at(805)473-5438. . i ;_ a � - � � • ���� `;i —� �� _ _ . , • . . . � � , .:" _'• ••H�L:i/- a�_i�. Pp�'m=.�"'�-� �I�jir f���G ,. , � - - 3 �a r .:"t,F'^a�,4,.�4p2�!±u�t�i�t`,���,.scfi _ �, ., �' ' 'r° <��`� `,�—_ 'uQ' v���?�'j�,"-�"a���4- Y''� � b:.-. � o .-,-. ♦ _ � �� �� �" fi�. ic' � � Y � ' i e'� d' -- ,c•Y ��'�,',�. r -,�ik�`'y.r�$.,`�+j.��, ,_�,y�. .�- ,_ ' ,_y -`9''�"k,F,^'4 ���,-�+�. sd �JxA� '"""��;.�;�.'o-_ .�zi6 ,�'�-�� � . te •s�'�.� . 'e e ¢�� -` a�!� �4��}��#9: i f � : , �,�,� _ yt`'-'r" s ry���i ..� .'`�c+ � a.r�'1` � �Y.'"�-�`.r.. "'�� '�,+ � � � Y y�y��'' � � 7 t . �� .. �«.• _ ..+ . �� r . � �°�_ — " . _ � - � � �. � �.. '� �� .a..' j� �,� . ��. � ': i�` _� . .� �� �*'..x ..:_"� � y�t: �" �` �n�. � �� � �� �� ���. " .� ' � � �� ��c�j t 7w�; '" '�� M L .� � t.� - ,t�,''4�4i� . . �� `pr _� �II ; j - y� ! �� . � . � ;P's: i. •" '' Arroyo Grande Village � '"-�«°. '-� • - • • �:.a� - --�,� '. � � . r �g�v .w ' ��3�a��` . � • � • k � � �''` ' � �;`z':i..m;. '- mi.,s��. . � , r*' Y� , �an#a'1�t�n""u�'1�°`���"��a�'rs'. � � . ' Contents : Introduction.................................................................................................................................................. 1 Background.......................................................................................................................................... 1 Purpose................................................................................................................................................. 1 � Scope.................................................................................................................................................... 1 ExecuriveSummary............................................................... ......................................... 3 - ............................. Water Utility Water System Capital Improvement Progam............................................................................................. 5 Water System Capital Improvement Financing........................................................................................... 5 Sourcesof Funds................................................................................................................................... 6 UsesofFunds........................................................................................................................................ 6 Analysis of Water System Capital Improvement Financing,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 7 WaterSystem Revenue................................................................................................................................ 7 . CustomerGrowth.................................................................................................................................. 7 WaterSales Volume.............................................................................................................................. 7 Water Sales Revenue Under Existing Rates......................................................................................... 7 OtherRevenue....................................................................................................................................... R InterestIncome...................................................................................................................................... g Water System Revenue Requirements......................................................................................................... g Operating and Maintenance Expense.................................................................................................... °' ExistingDebt Service.......................................................................................................................... I 1 RoutineCapital Improvements........................................................................................................... 11 CapitalTransfers................................................................................................................................. 1 fl , Comparison of Revenue and Revenue Requirements,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, fl 1, ; WaterRateAdjustments............................................................................................................................ 1:� , ! Existing Water Service Rates.............................................................................................................. P; Proposed Water Service Rates Under E�cisting Rate Struchse.......................................................... S,'r; r Contents (cont.) : Typical Water Service Bills................................................................................................................. IS Comparison of Water Rates w�ith Other Communities,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,_,_,...,, ]5 Water Conservarion Rate Altemarive......................................................................................................... 15 Typical Water Service Bills Under Conservation Rate Schedu]e,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 20 Water Rate Struct�se Comparison................. .................................................. 21 .......................................... Sewer Utility Sewer System Capital Improvement Program............................................................................................23 Sewer System Capital Improvement Financing................................................._..................................... 23 Sourcesof Funds................................................................................................................................. 23 UsesofFunds...................................................................................................................................... 24 Analysis of Sewer Capital Improvement Financing...................................................................................25 SewerSystem Revenue.............................................................................................................................. 25 CustomerGrowth................................................................................................................................ 25 ; BillableVolume.................................................................................................................................. 25 Sewer Service Charge Revenue Under Existing Rates,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 25 OtherRevenue..................................................................................................................................... 26 InterestIncome.................................................................................................................................... 27 Sewer System Revenue Requirements...................................................................................................... 27 < Operating and Maintenance Expense.................................................................................................. 27 Conh-ibution to Corporation Yazd....................................................................................................... 27 Routine Capital Improvements........................................................................................................... 27 � Capital Transfers................................................................. ..................................................... 29 . Comparison of Revenue and Revenue Requirements................................................................................29 SewerRate Adjustments...................................................................................... ........ 3� .............................. Existing Sewer Service Rates............................................................................................................. 31 Proposed Sewer Service Rates Under Existing Rate Shvcture,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 32 �- Typical Sewer Service Bills................................................................................................................ 3i Contents (cont.) Comparison of Sewer Rates With Other Communiries,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 33 ! Sewer Rates Under Water Conservation Rate Altemative........................................................................ 35 Sewer Rate Structure Comparison............................................................................................................. 35 Appendix -Lopez Fund Water Charges................................................................................................. A-1 , Tables Water Utility , Table W-1 Water System Capita]Improvement Rogram.................................................................. 5 Table W-2 Water System Capital Improvement Program Financing ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 6 Table W-3 Historica] and Projected Number of Accounts, Water Sales Volume, and Water Sales Revenue Under Existing Rates......................................................................................... g Table W-4 F�istorical and Projected Operation and Maintenance Expense,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 10 Table W-5 Water Fund Flow of Funds Statement............................................................................ 12. Table W-6 Schedule ofExisting Water Service Rates..................................................................... 14 Table W-7 Schedule ofProposed Water Service Rates.................................................................... 16 � Table W-8 Typical Bi-Monthly Bills................................................................................................ 17 Table W-9 Comparison of Proposed Single Family Residenrial Water Service Rates,,,,,,,,,,,,,,,,,,,, 18 Table W-]0 Schedule of Proposed Water Conservation Rates.......................................................... 19 Table W-11 Typical Bi-Monthly Bills Under Water Conservation Rate Schedule,,,,,,,,,,,,,,,,,,,,,,,,,,, 21 Sewer Utility Table S-1 Sewer System Capital Improvement Program............................................................... 23 Table S-2 Sewer System Capital Improvement Program Financing,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 24 Table S-3 Historical and Projected Number of Accounts, Billable Volume, and Sewer Revenue UnderExisfing Rates...................................................................................................... 26 Table S-4 Historical and Projected Operarion and Maintenance Expense,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 28 Table S-5 Sewer Fund Flow of Funds............................................................................................. 30 Table S-6 Schedule of Existing Sewer Service Rates..................................................................... 3I Table S-7 Schedule of Proposed Sewer Service Rates,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 32 � Table S-8 Typical Bi-Monthly Bills................................................................................................ 33 Table S-9 Comparison of Proposed Single Family Residential Sewer Service Rates ................... 34 , Table S-10 Schedule ofProposed Sewer Service Rates Under Water Conservation....................... 3`� Water and Sewer Rate Study Arroyo Grande, California ; Introduction Background ! This report is prepared as an update to the Tucldield & Associates 2003 Water and Wastewater Rate Swdy Update. The 2003 report updated the 1999 Water and Wastewater Rate Study, and also pro��ded rate altematives to encourage water conservation. The 2005 Water and Wastewater Rate Study report updates the 2003 report including conservarion rates, capital improvement projects planning and financing,and Water and Sewer Fund financing plans. ' As in the 2003 report, the City desires to explore a water conservarion rate shucture to reduce or delay the acquisition of additional water supply. Because rainfall for FY 2004-OS is at near record levels, designing rates based on uncertain future consumption ]evels may not immediately achieve the desired reduction in sales volume. The process to reduce the City's water consumption will require management of the pricing of water sales in future yeazs as well as implementation of the City's overal] water conservaHon plan. Purpose The purpose of this study is to accomplish current objectives desired by the City. These include the following. • develop financial plans for the water and sewer utilities that include revenue adjustrnenu required to meet all financia] obligations (O&M expense, debt service, transfers, etc.}, construction of the capital improvement projects proposed in each uriliries' master plans, and maintenance of appropriate fund balances and debt service coverage requirements. • develop a water conservation rate structure for only residrntial customer� as an altemative to the exisring uniform volume rate siructure. • develop a sewer rate structure that accounts for the reducrion in water sales volume�iuF to water consetvarion. Scope This smdy includes the analysis of the Water Fund; the Sewer Fund, and financing of water and sewer ' capital improvement projects. This study reviews existing demand and projects future demand,identifie€ new capital improvement plans and associated financing, incorporates ciurent and expected econatrc;r. ' condifions,and considers public sentiment regarding nte structures. Tuckfieid &Associates � Water and Sewer Rafe Study Arroyo Grande, California ' Analysis of the Lopez Fund is Included in Appendix A. The City has an annua] water supply entitlement from the Lopez Dam project based on a conffact with the San Luis Obispo Flood Control and Water Conservation Dish-ict. The City generates revenues through charges to water customers to pay for the City's share of expenses of the contract. T'he chazges have been redefined to separate the residential charge into single family, multifamily, and mobile home parks charges. The chazges for all customers are shown in Appendix A. The study does not include analysis of charges from the South San Luis Obispo County Sanitation District(SSLOCSD). Charges to the City for wastewater treatment services aze passed on • d'uectly to each customer's bill and aze sepazate from sewer rates presented in this report. Comparisons of the City's water and sewer rates with other local communi6es presented in this report include the Lopez chazges and the SSLOCSD charges where appropriate to present a fa'u comparison among the communifies. Tuckfield & Associates 2 Water and Sewer Rate Study Arroyo Grande, California , � Executive Summary ' The City's water and sewer capital improvement programs call for spending$6,700,000 in��ater related , projecu and �3,300,000 in sewer related projecu over the nest five years. The majoriry of these costs will be funded through the Water Facility and Sewer Facility Funds. Approximately $2,200,000 wil] be , transfened from the R�ater Fund over the next four years to contribute to water capital improvement wst. ' Only $217,000 will be transferred from the Sewer Fund to pay for se�rer capital improvements. No debt financing is proposed for either the water or sewer capital improvzment programs. The analysis of the Water and Sewer Funds included followin� certain financia] planning criteria For the Water Fund, these included maintaining a working capital balance of 60 days of operation and maintenance expense in the Water Fund, a capital reserve of SSOO,OOQ and maintaining a debt service coverage ratio of at least 125 percent. Similar criteria were established for the Sewer Fund including 45 days of operation and maintenance expense and a capital reserve of$500,000. There is no existing debt associated with the Sewer Fund. To meet the financial obligations of the Water Fund, it will be necessary to increase water revenue by 5 percent in FY 2005-06 and 7 percent per year for the next three years. Table W-5 presents the analysis of the Water Fund including the revenue adjustments. For the Se«�er Fund, it wil]be necessary to increase revenue by 10 percent in FY 2005-06 and 3 percent in each year thereafrer. Table S-5 presents the analysis of the Sewer Fund including revenue adjustments. The Ciry has previously adopted the increases for FY 2005-06 and they will become effective July 1,2005. This study updates the proposed rate sIIVCture from the 2003 Water and Sewer Rate Study for the existing water rate structure and the water conservation rate shucture alternative. The conservation rate shuchue's intent is to reduce residenrial water consumption per account. These struct�es and the proposed rates are shown in Tables W-7 and W-10. Proposed sewer rate structures consist of maintaining the existing rate structure and modifying the pricing of the existing sh�ucture to recognize water conservation, sivce the sewer rates aze chazged on metered water volume. These three rate schedules are presented in Table S-7 and 5-10. Comparison of the water rates proposed under Table W-7 (existing rate structure) for FY 2005-06 shows ' that the average single family bi-mont}ily water bill will be$42.52,an increase of$2.00. Under the water conservation rate structure, Table W-10, the average single family bi-monthly water bill will be $4132, an increase of$0.80. This is because the conservation rates were designed to allow residential customers to continue to use the average consumption at neazly the same price,but encourage those customers that use water above the average to conserve water through higher price signals. Comparison of the sewei rates proposed under Table S-7 (exisring rate struchse)for FY 20005-06 show� ' that the average single family bi-mont}ily sewer bill will be $15.40, an increase of $138. Under tke ' Tuckfield & Associates � Water and Sewer Rate Study Arroyo Grande, California � water conservation rate structure, Table S-10, the average single family bi-monttily water bill will be , ; $16.04,an increase of$2.02. Comparing the average single family residential water bill under the exisring water rate shvcture with those of other communities indicates that the City of Arroyo Grande would be lower than 3 of the 9 communities listed. The comparison is shown in Table W-9. Comparison of the average single family ' sewer bills indicates that Arroyo Grande will be the next to lowest in sewer bills under the existing rate structure. The sewer bill comparison is shown in Tab]e S-9. Tuckfield 8 Associates � ; , _ � ; „ , ;, _ WATER UTILITY : . . � ,; _ Wafer and Sewer Rate Study Arroyo Grande, California , Water System Capital Improvement Program There are many water system projects planned for consh-ucrion in the next several years. Major projects , include replacement of reservoir no. 1, conshvction of reservoir no. 6, upgrade of the Fair Oaks waterline,pressure connection of Rancho Grande to Oro Zone, upgrade of Oro booster, and conshuction of the new water well no.10. The proposed capital improvement program for the water urility is shown in Table W-1. Estimates of ; improvement costs are based on FY 2005-06 cost levels and inflated at 3 percent per yeaz to the yeaz of . project expenditure. The inflarion is based on the ENR Index for recent yeazs and added as an allowance for future cost escalarion. TABLE W.1 , CITY OF ARROYO GRANDE ' WATER UTILITY PROPOSEDMAJORCAPITALIMPROVEMENTPROGRAM l�) (Z) (3) N) (5) I6) . ��, �� �� ��. ��� �� � , 1 CorporationVartlRepalrs 50 EO SO 5�00,000 SO 5100,000 2 Cky Mall Complea 0 0 0 0 500,000 500,000 3 WaleASewerRateSWdy 21,500 0 0 0 0 Y7,50U ' 4 ValleyGardena 251,877 0 0 U 0 257,877 5 ReservoirNO.7 RepWCemenl 7.963,818 0 0 U 0 1,983,878 ' � 6 WaterMasterPtanUpOate 0 0 3�,000 0 0 00,000 � 7 RexrvoirNO.BCOnsWCGOn 0 70t,200 0 817,800 0 979,000 8 Falroaks,UD9roAe 8'CIP W 1Y PVC 0 0 0 0 863,500 6d3,500 e Waterline InsGllation,17'on Chitton 8 EI Camino 0 0 38,000 482,000 0 500,000 10 Pressure Zone CAnneClion,Rancho GranOe lo Oro 2onE 0 56,200 495,800 0 0 552,000 71 Oro Booshr Stafion UpgraEe 0 0 0 0 388,000 388,000 72 Waterline UD9�tle.4'to e',NevaEa 8 LeOOint 0 0 59,/6D U 0 59,a60 73 Wa�etWeIIN0.10 8B4O00 420,400 0 0 0 489,400 1< UpgfaEesforWaterSecurify 0 0 40,000 0 0 40,000 75 Water Well No.7 RehaDOitation 0 �S,ODO 0 0 0 45.000 16 TotalCaplGllmprovemenls(Uninllaled) E2.306,135 5612,800 5683280 57,379,800 E1,5/7,500 S6,IB3,495 17 TotalCapttallmprowments(Inflatetl)�a] E2,306,100 5672,800 5683,700 57.483,800 57.657,700 E6,727,500 �a}CaDiql Mprovements Nflatetl a13.0%per year. Water System Capital Improvement Financing Table W-2 shows the sources and uses of funds to finance the capital improvement projects in Table?i;�� 1. There aze many sources of funds that aze planned to finance the projects and the Water Fund or Wac� Facility Fund may only partially fmance these projects. A particulaz project may benefit other Ctiri� , programs or funds. Uses of funds tnclude the capita] improvement program projected expenditures as � discussed in a previous section. Tuckfield &Associates � ; •, Water and Sewer Rate Study Arroyo Grande, California i ; Sources of Funds The Water FaciliTy Fund is projected to contribute the most to the cost of the projecu of Table W-1. Line ' 2 of Table W-2 shows the amount of Water Facility funds to be expended for capital improvement projects. The Water Facility Fund will fully fund the pressure connecrion from Rancho Grande to Oro Zone and partially fund reservoir no. 6, the Fair Oaks waterline upgade, Oro Booster Station upgrade, water well no. 10,and other waterline upgrades. ' �, The City's budget for the Water Fund shows that some of the water capital improvement expenditures will be paid for through a transfer of funds available as reserves in the Water Fund. Transfers from the Water Fund aze shown on line 4 of Table W-2. Other sources of funds that will be used to pay for capital projects are somewhat sma]ler in magnitude ', compazed with the other sources and aze shown in Table W-2. TABLE W-2 CITY OF ARROYO GRANDE WATER UTILITY CAPITAL IMPROVEMENT PROGRAM FINANCING PLAN l�) (ZI f3) (<1 (5) � .. �„ �� �� ��. ��. ��� �� ��: ��: ��• Source of Funds 1 Funds on Hand at Beginning of Year 50 $0 $0 $0 50 � 2 Transier from WATER FACILIN FUND 1,345,500 334,500 530,200 895,700 432,800 � , 3 DeveloperContributions 0 218,000 9,700 0 0 4 Transferfrom WATER FUND 720,100 70,300 '143,200 525,700 735,500 5 Generat Fund 128,200 0 0 10,600 390,900 � . 6 Sale of Land 0 0 0 0 71,500 ' �; 7 Transferfrom SEWER FUND 12J00 0 0 31,800 21,000 B USHA 50,000 0 0 0 0 � 9 6cpense Recovery 200 0 0 0 0 � 10 T2ffic Circulatlon 50,000 0 0 0 0 � 17 ToWI Funds Available 2,306,100 622,800 683,100 1,463,800 1,651,700 i -� Use of Funds , 12 MajorCapitallmprovements 2.306,100 622.800 683,100 7,463,800 1,651,700 13 Tota�Use of Funds 2,306,100 622,800 683,700 7,463.800 1,651,700 � 14 Funds on Hand at End of Year $0 $0 $0 $0 $0 ' Uses of Funds The projected schedule of the total expenditures of the water capital improvements]isted in Table W-I ��, shown on line 12 of Table W-2. The projected improvements total$6,727,500 in inflated dollazs. Tuc�eld & Associates � Water and Sewer Rate Study Arroyo Grande, California Analysis of Water Capital Improvement Financing , Based on inspecrion of Table W-2,atl of the water capital improvement program costs can be met diuing � . , the study period without debt financing from the Water Fund. The plan is dependent upon the receipt of funds firom the other sources listed and raising water rates sufficiently to make capital transfers from the • Water Fund in the appropriate years. � I Water System Revenue The principal revenue of the water utility is derived from water sales to retai] service customers. Other revenue received by the Water Fund includes meter insta]larion fees, reconnecrion fees, hydrant water sales,personnel transfers,interest income,and miscellaneous revenue. Water Sales Revenue Customer Growth. The water uriliry provides service to approximately 6,070 customers. The City's billing system accounts for 14 classes of inside city and outside city customers. These include inside city customer classifications of single family residential, mulri family residential, business, church, schools, hospital, irrigarion, motel, convalescent homes, and other. Outside city classifications include single family,business,and mobile home parks. Private fire pmtection customers are also recognized. Future customer growth is projected to include 50 new single family accounts per yeaz for the study period with no growth in other customer classes. Table W-3 summarizes the projected average number � of water customers for the study period. Water Sales Volume. Water sales for FI' 2004-OS aze lower than in recent yeazs due to significant - rainfall in the latter part of the yeaz, and therefore a drop in consumprion is recognized for this year. . , Projec6ons of future water sales volume aze based on the projected number of customers to be served and ; recog�ition of the average water consumption per customer classification from F1'2000-01 through F`r' 2004-05. The average represents a more reasonable assumption of future water use per customer. Table W-1 summarizes projected water sales volume for each yeaz of the study period. Water Sales Revenue under Existing Rates. The existing schedule of ntes for water service became effecrive July 1,2004 and is comprised of monthly customer charges varying according to meter _ size pius a uniform volume chazge for all customers. All rates and charges aze established by CxY�j Council resolution. � Tuckfield &Associates � - Water and Sewer Rate Sfudy Arroyo Grande, California . , TABLE W3 � CITY OF ARROYO GRANDE ' WATER UTILfTY HISTORICAL AND PROJECTED AVERAGE NUMBER OF ACCOUNTS, ' SALES VOLUME,AND REVENUE UNDER EXISTING RATES (�) (2) l3) (4) , ' ,. I �� . Ccf � Historical � � 1999-2000 na na $1,545,500 2000-2001 5,612 1,349,086 1,698,600 2001-2002 5,771 1,392,413 1,654,100 , 2002-2003 6,020 1,475,682 1,607,900 2003-2004 6,028 1,517,856 1,701,300 Pro ected 2004-2005 6,078 1,416,548 1,768,100 2005-2006 6,128 1.443,020 1,797.200 2006-2007 6,178 1,449,718 1,806,500 2007-2008 6,228 1,456,918 1,818,200 2008-2009 6,278 1,466,118 $1,830,000 [a] Projeded revenue is based on rates currenUy in effect with no changes. � Revenue is shown to increase due to 50 single family customers per year. Future water sales revenue under the existing rates has been projected recognizing the inaease in the number of customers and projected water use per customer. Table W-3 preserits the projected water sales revenue when applying the existing rates to the number of customers and projected volume. Other Revenue Other revenue includes meter installations, reconnection fees, utility billing set up fee, collections, expense recovery, hydrant water sales, and miscellaneous revenue. Revenue from these sources ?s projected to total $63,400 in F1' 2004-OS and remain at a constant level of$68,400 from FY 2006-C7 through 2008-09. interest Income The Water Fund generates interest income on available cash and investments based on the investrrieraC policy of the City. Projected interest income is calculated on the average Water Ftmd balance during� ' Tuckfield &Associates � 1 Water and Sewer Rate Sfudy Arroyo Grande, California fiscal year at an interest rate of 2 percent, reflecting current City investment rates. Interest income is projected to range from$37,700 in FY 2004-OS to$22,500 in F1'2008-09. Water System Revenue Requirements Revenue requirements of the water uriliry consist of the annual obligations to operate and maintain a safe and reliable water system. These obligations include operation and maintenance expense, existing revenue bond debt service,annual rourine capital expenditures,and capital transfers. Operation and Maintenance Expense Operarion and maintenance expenses consist of the cost of personnel and materials to supply,pump, and distribute water on a routine basis. Since these costs are an annual obligation of the water utility, they must be met from water sales revenue. Aistorical and projected operarion and maintenance expenses ue shown in Table W-4. Projections are based upon an analysis of historical expenses and take into account anticipated fuhue system growth and cost increases in labor,contractua] services,electric power,chemicals,materials,and supplies. Salary and benefit costs are projected to increase 8 percent per yeaz. Production power and distnbution power costs aze projected to increase in proportion to production volume and tota] volume growth respectively, with unit power cost(5 per Cc�increasing at the iate of 3 percent per yeaz. Unit chemical costs per Ccf(production volume) aze projected to increase at 3 percent per yeaz and total chemical costs are projected to increase with unit chemical cost increases and in proportion to total volume growth. All other costs aze projected to increase at 3 percent per yeu. _. Lines 6 through 8 of Table W11 show transfers to the General Fund. These include personnel,operating, and cost allocation transfers. The City uses transfers to charge one fund for services provided by another fund. Direct costs and indirect costs are allocated to various City funds. Direct costs include those expenses that can be directly attnbuted to an activity. Examples of d'uect costs include salary and benefits of a sewer employee spending time worldng on water lines (personnel hansfer) and costs incurred in the Genera] Fund but used by other funds such as telephone charges, postage, and utilities (operating h-ansfers). Indirect costs aze expenses not readily idenrifiable with a particu]ar action or service, however aze incurred for a joint purpose which benefits more than one fund or departrnent. Examples of indirect costs include the City Manager's time, accoimting and purchasing functions, and building maintenance (cost allocations). The hansfers aze shown as budgeted for F1'2004-05, 2005-06, and 2006-07. Future transfers aze projected to increase at 3 percent per yeaz in the study period. Total operation and maintenance expense is budgeted at$1,637,370 for F1'2004-OS and is projected Ee increase to$1,972,550 in FY 2008-09 as shown in Table W-4. ` '' Tuckfield & Associates � CTABLE Wd ('1 CITY OF ARROYO GRANDE d � WATER UTILITY ^' � HISTORICAL AND PROJECTED OPERATION AND MAINTENANCE EXPENSE � a °' (�) (2) (J) (4) (5) (6) (7) (B) (9) (10) 3 � Q D y N � O ��� �� �� �� �� r� �� ��.� �� �� ��. �� �� ��: ��: ��• iD � n � � 4710 WaterAdminlstnlion � (p 1 SalaAas/Benells 565,970 579.594 SB2,574 EB9,770 S98,fi65 $194,93J $204,843 3275,686 3�32,900 5257,500 U1 2 5301 ConlractualServkes 27,799 7<,477 77,505 26,250 ZS,al3 40,000 41,200 47,200 42.400 43,700 �D 3 53f0 WatarTrealmentServices(sampGn98�es5ng) 10,319 5,989 13,027 11,956 17,935 13,000 15,000 75,000 15,500 16,000 (n 4 Sd04 SuryNsWelerPurchase 0 0 0 0 0 22,000 0 0 0 0 C 5 5575 Insurance Claims antl Setllemen[5 9,300 134,502 86,269 66,925 70,805 100,000 100,000 700,000 703,000 106,700 Q 6 5901 PersonnelTranslen 183,595 263,500 3A6,596 35],450 J52,700 723,700 907,700 902,600 414,700 427,7�0 t� 7 5902 OperalingT2n51ers 82,600 109,600 105,550 176,200 709,500 117.900 728,990 727,000 1]O,B00 1J4,700 B 5903 Co51AlbcatiOnTrensfers 106,700 700,750 10),600 726,900 177,25D 7<4,750 154,700 161,800 766,700 171.700 � 9 O�her 14,238 16,579 16,946 17,685 79,611 6�,717 77,450 75,250 BO 100 85,200 10 Sublotal 494,<21 720,006 776,007 813,13fi 832,OB2 7,075,400 1.103,28] 1,100,536 1,186,700 t,236,000 47N WaterProducNon 17 Saladea/Bmefils 38,587 08,370 41,110 22,318 49,682 53,854 69J67 72,690 78,500 84,800 i 12 5902 Power(ekGidtity) 59,512 65,524 1q7,150 142,976 767,485 180.000 t80,000 180,000 202.800 21D,000 , �� 73 5603 Mainlenance-MachineryBEpuiOmenl 2,718 13,810 S,BSA d,316 5,274 17,000 5,000 5,000 5,200 5,400 74 Subtolal 98,817 117,707 194,114 169,810 222,381 296,6fi4 259,767 257,690 206,300 300,200 t+C . .. .�..,., 1S Salaiies/Benelils 19J,B04 201,879 205,J66 225,E60 235,733 250,066 241,773 257,130 277,700 299,900 76 5274 C�emiw� 4,251 6,289 7,772 11,007 10,646 12,000 17,000 7<,000 13,500 14,000 17 5303 Conl2clUalServftes 1,693 1,602 7,733 26,166 10,044 15,000 15,000 75,000 15,500 76,000 10 5402 Power(elecVidty) 4,140 2,722 5,620 5,490- 5.687 5,000 6,OOD 6,000 5,600 S,B00 79 5609 Malntenance-Reserrohs 2,659 4,131 5,451 6,988 2,307 5,000 5,000 5,000 5,200 5,400 20 56f0 Maintenante-WEIIS/GrIeSlpumDS 35,369 36,126 35,873 36,331 30,840 38,000 J8,000 38,000 39,100 40,300 � 21 5611 Malnlanance-Meten 2,458 2,a24 2,a51 2,522 2,469 2.500 2,500 2,500 2,600 2,700 � 22 Other 83676 71,789 27014 29,373 32355 d7,750 99850 49850 51050 52250 Q 23 Subtotal 327,990 326,962 296,640 343,271 329,497 375,316 971,723 J87,480 410,250 456,350 �C 24 Q 2J TotalOpentlonantlMalntenanceExpenss 5921,228 St,184,675 31,266,755 $1,326,077 31.783,944 5�,637,370 $1,729,17J f7.763,708 31.802,650 57,972,550 � Routine Capihl d 24 4710 WaterAtlminislnllon 17,147 0 /,179 1,295 528 2,667 70,500 0 0 . 0 Q 25 4712 Dlatributlon 48,236 7,903 2,653 8,4J1 3,122 27.SW 7.200 0 0 0 fp 26 5207 WalefMelers 32,716 33,458 35,049 35,103 29,505 35,000 35,000 35.00D 35.000 35,000 � 27 TotalRoutlneCapltal 590,099 541,361 E30,881 344,829 53J,195 j65,167 560,70D f35,000 f35,000 j35,000 � � OSalarles a�M bene�is ez0enses are Inllated al B%per year. Ap other expenses are Inllatetl at 3Y.Der year. 1 _.a , z? 07 j 1 Water and Sewer Rate Study Arroyo Grande, California r; Existing Debt Service � � The water utility currently makes debt service payments on a 1993 Refunding Revenue bond issue. The 1993 bonds were issued to refund outstanding loan contracts dated 1983 and 1988 with the State of � California, Deparnnent of Water Resources, under the Califomia Safe Drinldng Water Bond Law of 1976. Debt service on the 1993 bonds totals approximately$116,000 annually. , Routine Capital Improvements Capital expendihues for equipment and system replacements that recur on a more or less annual basis aze ! considered rourine, and are properly met from water sales revenue rather than from debt financing or other major capita] improvement sources of funds. Total routine capita] equipment and improvement expenditures are budgeted to be $65,200 in FY 2004-OS and include $35,000 for the purchase of new ' water meters. It is assumed that the water utility will continue to pwchase water meters at this level during the study period. Other murine capital costs are projected as budgeted for FY 2005-06 and 2006- 07,however,no costs aze expected for the remainder of the study period. Capital Transfers Based on the City's 5 yeaz capital improvement pro�am, sources of fimds to pay for the capita] improvements include h�ansfers from the Water Fund. Future transfers aze developed as part of the City's budget process for FY 2004-OS through FT 2006-07 and as estimated in the Ciry's Capital Improvement Program document. Comparison of Revenue With Revenue Requirements � Table W-5 presents a comparison of revenue and revenue requiremenis for the Water Fund in the fom7 af a cash flow. Criteria have been developed for the Water Fund to aid in the financia] planning process. The criteria included establishing and maintaining a worldng capital reserve of 60 days of operation and , maintenance expense in the Water Fund, a capih]reserve of$500,000,and a debt service coverage ratic , , oFgeater than 125 percent. The debt seivice coverege ratio is established by revenue bond covenants. ! Tuckfield &Associates �� Water and Sewer Rate Study Arroyo Grande, �_ :lifomia , i �'�� TABLE W-5 - . i CITY OF ARROYO GRANDE � � WATER UTILRY WATER FUND . FLOW OF FUNDS STATEMENT . . (�) (2) (3) (4) 'S) ' ,'� �. �i, i� �� �i. ��. '��• �� ��: 1,: i�• Revanua - , 1 Water Sales Revenue Untler Exisling Rates $1,768,100 $1,797.200 51,806,500 $1,818,200 5 830,000 Additional WaterSales Revenue Required: , ' ' Annualized Actual Fiscai Revenue Months Revenue � Year Increase Effective Increase � 2 2006 5.0% 72 5.0% 89,900 90,300 90,900 91,500 � 3 2007 7.0% 12 7.0% 132,800 133,600 '34,500 4 2008 7.0°h 12 7.0°h 143,000 143,900 5 2009 7.0% 12 7.0% '�4.000 - � 6 Tohal Additional Water Sales Revenue 0 89,900 223,100 367,500 `?3,900 � 7 Totat Water Sales Revenue 1,768,100 1,887,700 2,029,600 2,185,700 2.�i3,900 � 8 Other revenue 64,300 67,200 68,400 68,400 68,400 9 Interest Income From Operations 37,700 31,100 31,700 29,400 22,500 �, �0 TotalOperatingRevenuesAvailabla 1.870,700 1,985,400 2,129,700 2,283,500 2,t-4,800 , � �'� Revenue Requirements � 11 Operation and Maintenance Expense 1,637,400 1,729,173 1,783,706 1,882,650 1�72,550 Debt Service , Existirg Bonds 12 RevenUe PleOgetl 176,700 116,700 716,700 116,700 116,700 73 Ope2ting CaD��al Expendilures(ROUtine) 65,167 60,700 35,000 35,000 35,000 . '14 Capital Transfers Out 720,100 70,300 143,200 525,700 735,500 . . 'IS Tohl Revenue Requirements 2,539,367 1,976,873 2,078,606 2,560,050 2.859,750 � 16 NetOperotlnpFundsAvaitable (669,267) 8,527 51,094 (276,550) (414,950) � 77 Beginniry Operating Fund Balance 22'17.800 1,548,533 1.557,060 7,608,754 1,331,604 18 Cumulative OpenUng Fund Balance $1,548,533 $1,557,060 $1,608,154 5'1,331,604 $916,654 � �9 Minimum Desired Belance [a] 5772,900 5788200 $797,300 $813,800 5828,80D - Mnual Debt Servlce Coveroge �. ' 20 NetRevenue $232,700 $256,227 5345,994 3400,850 $472,250 �, � 21 Totai Annual Debt Service Requirements 5116,700 5116,700 3116,700 . 3116,700 $176,700 ... 22 Coverage [b] 199% 220Y 296q 343% 405% , �a] Estimated at 60 days of oDeralion and maintenance ezpense plus a capital reserve of 5500,000. [b] Total Operating Revenues less Ope2ting and Maintenance Expenses dividetl by Total Mnual DeD[. � i t i ; j � Tuckfield & Associates �� Water and Sewer Rate Study Arroyo Grande, California '" Based on these criteria, annual increases in water revenue aze indicated as follows: ' i Effective Date Increase , July 1,2005 5 percent July 1,2006 7 percent July 1,2007 7 percent July 1,2008 7 percent The increases shown above have been selected in order for total water revenue to meet revenue , requirements and for debt service coverage to remain sufficient]y above minimum required levels. The FY 2004-OS increase has already been adopted by the City Council and the Water Fund will begin ' receiving revenue in July of 2005. All other increases are indicated to be fully effective by July i of each year shown. The working capital reserve level is based upon City policy adopted from the last water and wastewater rate study in 2003. Water Rate Adjustments The principal consideration in establishing water rate schedules is to develop rates for customers that aze reasonably commenswate with the cost of providing water service. In addition, one of the objecrives of this study is to encourage water conservation. Theorerically, the only method of assessing entirely equitable rates for water service would be the deteiminadon of each customer's bill based upon their particular service requirements. Since this is impractical, schedules of rates aze normally designed YQ ', meet average conditions for groups of customers tiaving similu service requirements. Practicality also � dictates the use of a rate schedule which is simple to apply, reasonably recovers costs from all classes, and is subj ect to as few misinterpretations as possible. ; ' j Existing Water Service Rates i � The existing schedule of water rates, shown in Table W-6, became effecrive July 1, 2004. The r�te � schedule for all customeis consists of a montlily customer charge by meter size and quanrity charge�Se� i hundred cubic feet of usage. I � I , i I Tuckfield &Associates ��, ' . . i I Water and Sewer Rate Study Arroyo Grande, California TABLE W-6 I� ..- CITY OF ARROYO GRANDE ' � WATER UTILITY SCHEDULE OF EXISTING WATER SERVICE RATES Service Charges . • Inches $/month $/month 518 $4.10 $8.20 3/4 4.10 820 ' 1 4.80 9.60 . 1 1/2 5.75 11.50 2 8.30 16.60 3 27.25 54.50 4 34.25 68.50 6 50.65 101.30 8 $70.45 $140.90 Volume Charges . • . , $lCcF $/Ccf Single Family[a] $1.01 $1.26 Multi Family[a] 1.01 1.26 Business 1.01 1.26 Church 1.01 126 School 1.01 126 Hospital 1.01 1.26 : ' Irrigation 1.01 1.26 Motel 1.01 1.26 Convalescent Homes 7.01 'I.26 Other 1.01 1.26 Water Wheeling 1.00 Hydrants $7.30 $7.30 - Fire Protection Charges � . . . " Inches $IMonth 1 1/2 1.68 2 $1.68 3 5.00 4 10.03 6 27.85 ' 8 58.48 10 $100.25 (a) Rates are on a per construded unit basis. Tuckfield &Associates ?� Water and Sewer Rafe Study Arroyo Grande, California : Proposed Water Service Rates Under Existing Structure ' Table W-7 presents the proposed water rates utilizing the enisring uniform volume rate structure. The rates showm increase each year in proportion to the revenue increases presrnted in Table W-5. � Typical Water Service Bills Table W-8 presents a comparison of typical bi-monthly water service bills under existing and ' ' proposed rates for various volumes of usage. The table shows that all customers have an increase in , their bi-monthly bill. Under the rate schedule presented in Table W-7, the bill for an average single family customer using 32 Ccf of water during a rivo month billing cycle in FY 2005-06 would be $42.52, an increase of$2.00, or 4.9 percent. Comparison of Water Rates With Other Communities Table W-9 presents a comparison of single family bi-monthly w�ater bills for the CiTy of Airoyo Grande and other loca] communities. The table is prepazed using 32 Ccf representing the average volume o£single family customers in the City of Arroyo Grande. The table indicates that under the proposed increase for FY 2005-06, the Ciry of Arroyo Grande's average bi-monthly bill is lower than 3 of the 9 communities listed. Water Conservation Rate Alternative One of the objectives of this study included the development of a water conservation rate sh-ucture. ' . Tab1e W-10 presents a proposed water conservation rate structure designed such that the unit price�f water increases with each successive water consumprion block. The rate schedule proposes an inclining block structure for singie family and multifamily residentia] classes while all other classes , , are charged on a uniform volume rate shucture ]ike the existing sh-ucture. The conservarion rate structure is not applied to commercial and industrial classes because these classes generally haw� uniform water use pattems and conservation from these customers are better controlled through tixe use of low flow fixtures,conservation plans,or similu methods. Tuckfield & Associates 11� Water and Sewer Rate Sfudy Arroyo Grande, California � - TABLE W-7 . CI7Y OF ARROYO GRANDE ' ' WATER UTILRY SCHEDULE OF PROPOSED WATER SERVICE RATES UNDER EXISTING RATE STRUCNRE �' Service Charges , . � . . . �i i�. �i. �i• �� ��: i�: �i• i� i�. �i. �� �� �i: ��: �i• � ��� Inc�es S/month S�month 5lmonlh Slmonth S/month $/month S�monlh b�monih 5/8 54.30 54.60 54.90 $525 58.60 59.20 $9.80 510.50 3/4 4.30 4.60 4.90 5.25 8.60 9.20 9.80 10.50 , 1 5.05 5.40 5.80 620 10.10 10.80 11.60 72.40 ' 11/2 6.05 6.45 6.90 7.40 12.10 12.90 13.80 14.80 2 8.70 9.30 9.95 10.65 17.40 18.60 19.90 21.30 � 3 28.60 30.60 32.75 35.05 5720 6120 65.50 70.10 4 35.90 38.40 41.10 44.00 71.80 76.80 82.20 88.00 6 53.10 56.80 60.80 65.05 tOfi20 113.60 121.60 130.10 , . 8 $73.90 $79.05 E84.6D 590.50 8747.80 $158.'10 516920 $181.00 Volume Charges . . . . �i ��. ��. ��• �� �i: ��: i�• i� i�. ��. ii �� ��: ii: �i• 3/Cd $/CCf $/CCf 5/CC( 5/CCf $/Cd $/Cd S/Ccf � SingleFamily�aJ $1.06 E1.13 $1.21 $129 $1.33 S'1.47 51.5'I 57.67 � Multi Family�a] 1.06 1.13 7.21 129 1.33 1.41 1.51 1.61 Business 7.06 1.13 1.21 1.29 1.33 1.41 1.51 1.61 , Church 1.06 1.13 �21 1.29 1.33 1.41 1.51 1.61 �, School 1.08 1.13 '1.21 1.29 1.33 1.41 1.51 1.61 � HosPital 1.06 1.13 '121 129 1.33 1.41 7.51 1.61 Irrigation 1.16 1.24 '1.33 1.42 1.45 1.55 1.66 1.78 Molel 1.06 1.13 127 129 1.33 1.41 1.51 1.61 � ' . Convalescent Homes 1.06 1.13 1.21 t.29 1.33 1.41 1.51 1.61 � OMer 1.06 1.13 1.21 1.29 57.33 31.41 E1.5'I 31.61 - WaterWheeling 1.05 1J2 1.20 1.28 Hytlrant $7.67 5827 58.78 59.39 ' Fire Proteetlon Charges ' �� �i. ��. �� i� ii: ��i: ��• , Inches $IMonth S/MOnth $/Manth $/MOnih 11/2 51.76 51.88 $2.07 E2.15 � � 2 176 1.88 2.01 2.15 3 525 5.62 6.07 6.43 ' ' 4 10.53 7127 12.06 12.90 6 2924 3129 33.48 35.82 8 61.40 65.70 70.30 7522 70 $105.26 8112.63 S'120.51 $128.95 - [aJ Rates are on a per consWCted unil basis. � : � Tuckfield & Associates °�g `. Water and Sewer Rate Study Arroyo Grande, California ;. i TABLE W-B CITY OF ARROYO GRANDE � ` WATER UTILI7Y � COMPARISON OF BI-MONTHLY CHARGES UNDER EXISTING RATES WITH PROPOSED RATES FOR FISCAL YEAR 2005-06 AT VARIOUS CONSUMPTION LEVELS � � ' _ Cd ' 0 $8.20 $8.60 $16.60 $17.40 $54.50 $57.20 1 $9.21 $9.66 $17.61 $18.46 $55.51 $58.26 , 2 $1022 $10.72 $18.62 $'19.52 $56.52 $59.32 3 $1123 $11.78 $19.63 $20.58 $57.53 $60.38 ��. 4 $1224 $12.84 $20.64 $21.64 $58.54 $61.44 5 $13.25 $13.90 $21.65 $22.70 $59.55 $62.50 6 $14.26 $14.96 $22.66 $23.76 $60.56 $63.56 , ' 7 $15.27 $16.02 $23.67 $24.82 $61.57 $64.62 8 $1628 $17.08 $24.68 $25.88 $62.58 $65.68 9 $17.29 $'18.14 $25.69 $26.94 $63.59 $66.74 10 $18.30 $19.20 $26.70 $28.00 $64.60 $67.80 � 15 $23.35 $24.50 $31.75 $33.30 $69.65 $73.10 ' 18 $26.38 $27.68 $34.78 $36.48 $72.68 $76.28 20 $28.40 $29.80 $36.80 $38.60 $74.70 $78.40 25 533.45 $35.10 $41.85 $43.90 $79.75 $83.70 � � 30 $38.50 $40.40 $46.90 $4920 $84.80 $89.00 32 $40.52 $42.52 Sae.92 551.32 586.82 $91.12 , , 35 $43.55 545.70 $51.95 $54.50 $89.85 $94.30 40 $48.60 $51.00 $57.00 $59.80 $94.90 $99.60 45 $53.65 $56.30 $62.05 $65.10 $99.95 $104.90 50 $56.70 $61.60 $67.10 $70.40 $705.00 $'11020 . 60 $68.80 $72.20 $77.20 $81.00 $115.10 $'120.60 70 $78.90 $82.60 $87.30 $91.60 $12520 $131.40 80 $89.00 $93.40 $97.40 $102.20 $135.30 $142.00 �� 90 $99.10 $104.00 $107.50 $112.80 $145.40 $152.60 100 $10920 $1'14.60 $117.60 $123.40 $155.50 $163.20 -. , 200 $21020 $220.60 $218.60 $229.40 $256.50 $269.20 ' 300 $31120 $326.60 $319.60 $335.40 $357.50 $375.20 400 $41220 $432.60 $420.60 $441.40 $458.50 $48720 ' S00 $51320 $538.60 $521.60 $547.40 $559.50 $587.20 [a] Existing rates as of July 1,2004. Averege bi-monthly consumption for a single family residential customer is 32 Ccf. , ' i Tuckfield & Associates 17 Water and Sewer Rate Study Arroyo Grande, California TABLE W-9 �i CITY OF ARROYO GRANDE � WATER UTILITY COMPARISON OF PROPOSED SINGLE FAMILY WATER SERVICE RATES � i WITH SELECTED CENTRAL COAST COMMUNITIES CiryofAnoyoGranEe Monthly 5/8 E4.30 AIICCf 51.06 590.58 �b] FY 2005-06 3/4 E4.30 1 E5.05 �'�, 1 1/2 E6.05 2 58.70 • 3 528.60 4 $35.95 6 553.20 , Atascadem Mutual Monthry 5/8 514.00 0•2 Kgal 50.00 577.20 [c] WaterCompany 3/4 514.�0 3-12Kgal E1.40 1 E78.00 13•25Kgal 51.90 � 1 1/2 523.00 26-50 Kgal 52.65 . 2 E37.00 Over 50 Kgal $2.90 3 5135.00 4 5172.00 6 5270.00 Cityof GroverBeach Manthly PJI Sizes 86.75 All Ccf 51.33 SS6.U6 [tl] ', City of Lompoc Monthly 5/8 518.08 All Ccf 32.16 5705.28 [eJ 3/4 E18.OB 7 530.68 1 1/2 559.63 � 2 595.74 3 5193.30 4 E301.64 6 5962.74 City ot Morro Bay Monihly All Sizes 516.43 0•3 Cd $0.00 E'135.30 � Over 3 Cd per schedule NipomoCSD Bi-monthly AIISizes E21.04 0-40Cd 51.07 E34.24 Minimum Over40CcF $1.64 ' Oceano CSD Bi-monthly All Sizes 523.94 0•6 Ccf 50.00 E87.34 � 7-25Cd 5225 � ' Over 25 Cd 52.95 City of Paso Robles BI-monthly All Sizes 526.24 0-20 Cd E0.00 E37.76 ' Over 20 Ccf 50.96 � City of Rsmo Beach Bi-monlhly 5/8 521.53 0-15 Cd 5127 567.95 �b] 3/4 521.53 Wer 15 Cd S'I.61 1 $42.84 � ' 7 'i2 57472 2 E120.96 3 E234.61 � 4 E362.43 - . 6 5859.58 , City of San Luis Obispo Bi•monthly All Sizes 50.00 0-10 Cd $2.71 5'I01.90 _ Over 10 Cd 83.40 � [aJ Average bi-monthly consumption for sinpie family resi0enllal customer. . � [bj For a 3/4'meter. Includes Lopez cha�ge. [c] For a 3/4'meler. Rates adoptetl December 2004 Dut eRedive March 2005. [tlJ Proposed retes far FY 2005-06 irom Table W-7. i [eJ For a 3/4`meter. ' Tuckfield & Associates 18 Water and Sewer Rate Study Arroyo Grande, California �'? . TABLE W-00 ' CITY OF ARROVO GfL+.NDE �- � WATER UTILITY SCHEDULE OF PROPOSED TIERED WA-'cR SERVICE RATES ' Servioe Charges • . , . . �� �i. i�. i�' �� ��: ��: �i• �� �i. �i. �i �� i�: ��: ��• Inches S/month S/monlh S�month S/manN $/monN S/montl� S/month b�monih � - 5/B 54.30 S<.60 54.90 $525 $8.80 59.20 $9.80 $10.50 3/4 4.30 4.fi0 4.90 525 B.60 9.20 9.B0 70.50 7 5.05 5A0 5.80 620 10.10 70.80 11.60 12.40 17/2 6.05 6.45 6.90 740 12.10 7i.90 t3.BD 14.80 , _ 2 870 9.30 9.95 10.65 77.40 'IB.60 19.90 2L30 • 3 28.60 30.60 32.75 35.05 57.20 6120 65.50 70.70 4 35.90 38.40 41.10 44.00 77.80 76.80 8210 88.00 � 6 53.10 56.80 60.80 65A5 10620 173.60 127.60 130.10 �' B $73.80 579.05 584.60 590.50 5147.80 5158.10 3169.20 NB7.00 Volume Charges . i . �� ��. ��. ii• �� �i: i�: ��• �� ��. ��. �� • �� ��: ��: ��• S/Cc1 S/Ccr S/CCf S/Cd S/Ccf S/Ccf S/Ccf E/Cc( $inale FamiN fal ' Firstl2Ccf1G-month 40.98 $1.02 51.09 51.16 $120 5128 b7.36 51.45 Next20CC1/Di-month 1.06 1.t3 1.21 7.29 1.33 1.41 1.57 1.61 NeM 32 Ccf/bi-mon[h 120 72B 1.37 1.46 t.50 1.60 1.71 1.83 Over 64 Ccf/C'vnonlh 1.45 1.55 � 1.66 1.77 1.81 7.84 2.OB 227 . MultiFamMfal Firet 12 Ccf/bi-month 0.96 1.02 1.09 t76 7.20 728 1.36 1.45 Next6Cd/EI-mont� 1.06 t.13 L21 t29 1.33 1.41 1.57 1.61 Nex112Cd/D:mont� 1.20 128 t.37 7.46 1.50 1.60 7.71 7.83 ' . Over30Cd/bi-monN 1.45 t.55 t.66 177 t81 1.94 2.08 221 ' Business t.08 7.73 721 1.29 7.33 7.41 1.51 1.87 � Church 1.08 1.73 1.21 129 7.33 7.47 1.51 1.67 Sc�Od 1.08 tt3 121 129 1.33 1.41 1.51 1.81 . Hospital 1.06 1.13 7.21 1.29 t.33 1.41 t.57 1.61 Irtigation 1.16 124 7.33 1.42 1.45 1.55 1.86 1.78 �� , Motel 1.06 1.13 1.21 1.29 1.33 1.41 1.51 1.67 Convalescent Homes 1.06 1.13 121 1.29 1.33 1.41 t51 1.61 Other 1.06 1.13 1.21 129 $1.33 51.41 31.57 $1.89 ' , WaterWtreeling LOS 1.12 120 128 ; Hytlrant 57.67 Sb.21 EB7B 39.39 Flre Protectlon Charges , , �� r�. ��. �� �� �i: •��: ��• Inches S/MOmh S/MOmh E/MOnth 3/MO�rth � �. 1112 51.78 51.88 $2.01 E2.15 2 1.76 7.88 2.07 2.15 ' 3 525 5.62 6.01 6.43 4 10.53 '1127 1206 12.90 . 6 29.24 37.29 33.48 35.82 B 61.40 65.70 70.30 7522 � 70 $10526 f712.63 $120.51 $128.95 �a] Rates are on a per cronstruded unN basis. ; I i Tuckfield 8�Associates 19 ! ,`-; Water and Sewer Rate Study Arroyo Grande, Califomia i ; � The goal of implementing a conservation rate structure is to design rates to send price signals to achieve , efficiency in supplying and using resources. A conservation rate sh�ucture encourages efficient water use and discourages waste by communicating through the customer bill the cost of providing water,including the cost of new water supply. No formal mechanism exists to detemune appropriate block break points. For this study, the residential inclining block rate is developed with 4 blocks to reflect residentia] consumption averages. For single family customers, the first block is intended to capture indoor water consumption estimated at 12 Ccf. The second block is designed to capture consumption up to the average bi-monthly water consumption of ' '; 32 Ccf. The fourth or highest block is established such that 10 percent of the water consumption occurs ' in this block, reflecting consumption over 64 Cc£ The third block is the difference between the second ' and fourth block For multi-family customers, the averages aze slightly different. The first block captures indoor water consumption estimated at 12 Ccf. The second block is designed to capture consumpfion up to the multi- family average bi-monthly water consumption of 18 Ccf. The fourth or highest block is established such that ]0 percent of the water consumption occurs in this block,reflecring consumption over 30 Ccf. The , third block is the difference between the second and four[h block If water supply becomes sufficient]y constrained, the fourth block, representing 10 percent of the , residential volume,may allow the City to attempt to curtail consumption by chazging a very high price in this top block. This would only be recommended for supply shortages but is not generally considered to be conservation ratemaldng. The intent of the fourth block is to provide the City with the appropriate ' break point should the necessity arise in the future to price this block for curtailment. The price proposed shown herein for this block,however,is in line with the intent of conservarion rates. It should be noted that a conservarion rate shucture is only a part of an overal] water conservation plan. In addition to the water conservation structure, a public information campaign including bill inserts, public notices in local media, and promotion of information by City staff at civic and charitable organizations increase the effectiveness of any conservation effort. Implementation of the water conservation rate sh�ucture should coincide with the implementation of the City's water ! � conservation plan. ; ; Typical Water Service Bills Under Conservation Rate Schedule � Table W-11 presents typical bi-monthly water service bills under the proposed conservation raY� structure described in Table W-10. Table W-11 shows that the water bill for the average bi-monthly consumption is neazly the same as under the rate schedule proposed under Tab]e W-7. However, � upon higher consumption than the average, the bi-monthly bill will be much higher than that ' presented in Table W-7. , � Tuckfield & Associates 2C1 Water and Sewer Rate Study Arroyo Grande, California i TABLE W-11 CITY OF ARROYO GRANDE WATER UTILITY COMPARISON OF BI-MONTHLY CHARGES UNDER EXISTING RATES WITH PROPOSED TIERED RATES FOR FISCAL YEAR 2005-06 AT VARIOUS CONSUMPTION LEVELS Ccf 0 $8.20 $8.60 $16.60 $17.40 $54.50 $57.20 �'�� 1 $9.21 59.56 $17.61 $18.36 $55.51 $58.26 2 $10.22 $10.52 $18.62 $19.32 $56.52 359.32 3 $1123 $11.48 $19.63 520.28 $57.53 $60.38 . 4 $12.24 $12.44 $20.64 $21.24 $58.54 $61.44 5 $1325 $13.40 $21.65 $22.20 $59.55 $62.50 - 6 $14.26 $14.36 $22.66 $23.16 $60.56 $63.56 7 $15.27 $15.32 $23.67 $24.12 $61.57 $64.62 8 $1628 $1628 $24.68 $25.08 $62.58 $65.68 9 $17.29 $17.24 $25.69 526.04 $63.59 $66.74 10 $18.30 $1820 $26.70 $27.00 $64.60 $67.80 15 $23.35 $23.30 $31.75 $32.10 $69.65 573.10 18 526.38 526.48 $34.78 $35.28 $72.68 $76.28 20 $28.40 $28.60 $36.80 $37.68 $74.70 $78.40 25 $33.45 $33.90 $41.85 $43.68 $79.75 $83.70 30 $38.50 $3920 $46.90 $49.68 $84.80 $89.00 � 32 $40.52 $41.32 $48.92 552.58 $86.82 S9t.12 35 $43.55 $44.92 $5'1.95 $56.93 $89.85 $94.30 40 $48.60 $50.92 $57.00 $64.18 $94.90 $99.60 45 $53.65 $56.92 $62.05 $71.43 $99.95 $104.90 � 50 $58.70 $62.92 $67.10 $78.68 $105.00 $11020 60 $68.80 $74.92 $7720 $93.18 $115.10 $120.80 70 $78.90 $88.42 387.30 $107.68 $125.20 $131.40 ', 80 $89.00 $102.92 $97.40 $122.18 $135.30 $142.00 90 $99.10 $117.42 $107.50 $136.68 $145.40 $152.60 ' 100 $109.20 $131.92 $117.60 $151.18 $155.50 $163.20 200 $21020 $276.92 $218.60 $296.18 $256.50 $26920 � 300 $31120 $421.92 $319.60 $441.'18 $357.50 $375.20 ; 400 $41220 $566.92 $420.60 $586.'18 $458.50 $481.20 500 $51320 $711.92 $521.60 $731.'18 $559.50 $587.20 [a] Existing rates as of July 1,2004. Average bi-monthly consumption for a single family residential � customer is 32 Cd. Water Rate Structure Comparison - The water rates proposed in Table W-7 utilize the existing water rate structure that cansiss 1£ :. , , monthly service chazge and a volume charge for all water consumed. This struchue continues S�e: ` , Tuckfield & Associates �°E I i � ; ; Water and Sewer Rate Study Arroyo Grande, Califomia ii same practices of the water utility while providing the financial resources for the capital . , improvements required. � : �' The altematibe water rate structure shown in Table W-10 also consists of a monthly service charge and volume charge, however the residentia] classes have a vo]ume charge that increases by block of , water vo]ume. This structure represents the intent to conserve water by charging residential customers higher water rates for water consumption beyond the average. When implemented with a water conservation plan developed by the City, the conservation rate structure will assist in de]aying the acquisition of additional water supply,and approach the objectives of the conservation plan. , ' I Tuckfield & Associates 22 � , ; I '' � ,, . ` SEWER UTIL`IT_Y , . � � I - , :. i - - - - - - - - - - - - - - - - - -; Water and Sewer Rate Study Arroyo Grande, California Sewer System Capital Improvement Program 1 The proposed capital improvement progam for the sewer utiliry is shown in Table S-1. Most of the � projects consist of sewer upgrades and repair except for the replacement of]ift station no. 1,completed in the next two years. The tota] cost of the capital improvement program for the five-year study period is $3,332,800 in inflated dollazs. Esrimates of improvement costs aze based on FY 2005-06 cost levels with 3 percent per year added as an allowance for future cost esca]ation based on the ENR Index for recent years. TABLE S•1 CITY OF ARROYO GRANDE � SEWER UTILITY PROPOSED MAJOR CAPITAL IMPROVEMENT PROGRAM I�l (2I (3) l<) (5) (6) . ��. �� �� ��. ��. � �� �� ��: ��: ��• 1 Corporetion Yartl Repairs SO SO 50 5700,000 $0 E100,D00 2 Ciry Hall Complex 0 0 0 0 500,000 500,000 3 Newsom Springs Drainage Project 0 426,925 0 0 0 426,925 4 Waterl5ewerRateSludy 21,500 0 0 0 0 21,500 5 ValleyGardens 251,817 0 0 0 0 251,877 ', 6 Crov+n Tertace/Le Point Sewer Upgratle 0 0 0 242,000 0 242,000 � 7 Sewer Lift Station No.7 Replacemenl 54,874 574,500 0 0 0 629,374 � 8 Sewer Master Plan Uptlate 0 0 0 0 30,000 30.000 9 Fair Oaks Avenue Sewer Upgratle 0 535,000 0 0 0 535,000 � . 10 The Pike Sewer UDB�de 0 0 0 0 245,000 245.000 � � 11 As�SVeet Sewet Upg2de 0 41,972 0 204,028 0 246,000 12 7olalCapttallmprovements(UninflateE) $328,797 $7,578,397 50 5546,028 5775,000 53,227,616 13 Total Capital Improvements(Inilated)[a] 5328,200 51,578,400 SO 5579,300 $846,900 $3,332,800 �a] Project costs inflated at 3 percent per year. Sewer System Capital Improvement Program Financing The sewer capiha] improvement program will be paid for through several sources shown in Table S-2. As in the water capita] improvement financing,there are many sources of funds that are planned to finance the projects and the Sewer Fund or Sewer Facility Fund may only partially finance these projects. A particulaz project may benefit other City programs or funds. Uses of funds include the capital improvement program projected expenditwes as discussed in a previous secrion. Sources of Funds The Sewer Facility Fund is projected to fund the majority of the cost of the improvement projects shown ' on Table S-1. Line 2 of Table S-2 shows the amounts planned to be utilized from this fund. ' Tuckfieid &Associates 23 Water and Sewer Rate Study Arroyo Grande, California TABLE S•2 ' CITY OF ARROYO GRANDE ' SEWER UTILITY CAPITAL IMPROVEMENT PROGR4M FINANCING PLAN (�) (2) I3) (4) l51 � , , ��. �� �� ��. ��. ��� �� ��: ��: ��• � �� Source of Punds 7 Funds on Hand at Beginning of Vear $0 $0 $0 $0 $0 . 2 Transfer from SEWER FACILITY FUND 54,900 1,127,100 0 398,900 267.600 � �, 3 Trensferfrom SEWER FUND 12,100 120,100 0 31,800 53,800 . � 4 Transfer from WATER FUND 32,800 0 0 0 0 5 DeveloperConUibutions 0 42,000 0 74,300 D 6 Generel Fund 128,200 12,600 0 10,6D0 390,900 ' 7 SaleotLand 0 0 0 0 71.500 �I 8 Drainage Facilily Fund 0 1,000 0 0 0 � 9 Expense Recavery 200 250,000 0 0 0 10 Construction Tax 0 25.600 0 63,700 63,100 ' 1'I USHA 50,000 0 0 0 0 � 12 TroKc Circulation 50,000 0 0 0 0 ' 13 TotalFundsAvailable 328200 1,578,400 0 579,300 846,900 UseoTFunds '., 14 Major Capital Improvements 328,200 1,578,400 0 579,300 846,900 �5 Total Use of Funds 328,200 1.578,400 0 579.300 846.900 16 Funds on Hand at End of Year §0 SO 50 $0 50 The Sewer Facility Fund will fully fund the Crown Tecrace/Le Point sewer upgrade project,the sewec lift station no. 1 replacement, and the Pike sewer upgrade project and partially fund the Fair Oaks Avenue and Ash Street sewer upgrade projects and the Newsome Springs Drainage project. The Sewer Fund will contribute cash generated from sewer rates to capital projects as shown on Line 3 of Table S-2. The Sewa Fund will fully fund the master plan update and partially fund the Fair Oaks , Avenue sewer upgrade, Corporation Yazd improvements, Ciry Hall Complex improvements, and the Newsome Springs Drainage project. � Other sources of funds to complete the projects from Table S-1 are shown on the remainder of Table S-2. , Uses of Funds , The projected schedule of sewer capital improvement requirements listed in Table S-1 is shown on line 14 of Table S-2. The projected improvements tota] $3,332,800 and are expected to be fmanced from the sources described above. ! Tuckfeld &Associates 24 Water and Sewer Rafe Study Arroyo Grande, California : i Analysis of Sewer Capital Improvement Financing Review of Table S-2 indicates that all of the capital improvement program costs can be met during the study period without debt financing. The plan is dependent upon the receipt of funds from the other sources listed and raising sewer rates sufficiently to make capital hznsfers from the Sewer Fund in the appropriate yeazs. Sewer System Revenue The principal revenue of the sewer utility is derived from sewer service charges to retai] service customers. Other income to the Sewer Fund includes expense recovery and interest income. Projections of sewer service revenue under existing rates were based on projections of customer growth and water sales volume. Sewer Service Charges Customer Growth. The sewer utility provides service to approximately 5,900 customers. For the sewer utility,9 classes of customers aze recognized. These include single family residential,multi family residenrial,business,church, schools,hospital,motel,convalescent homes,and other. Projections of future customer growch include the addition of 50 single family residentia] customers per yeaz. Other customer classes aze not projected to increase. Table S-3 summarizes the projected average number of sewer customers for the study period. Biliable Volume. Projecrions of billable sewer volume are based on the projected number of sewer customers to be served and recognirion of historical average rates of water consumption per customer. Future water consumption per customer is based on the average consumption per account of water consumption from F1'200-01 through FY 2004-05. This average was used due to the significant rainfall during FY 2004-05. Table S-3 summarizes projected billable sewer volume for each year of the study period Sewer Service Charge Revenue under Existing Rates. The existing schedule ofrates for sewer service is comprised of a service chazge and a volume chazge based on water consumption. Single ' family and mulrifamily customers have unique volume charges while all other customers have the same � volume charge. Tuckfield & Associates 2g Water and Sewer Rate Study Arroyo Grande, California i TABLE S3 CITY OF ARROYO GRANDE ' SEWER UTILITY HISTORICAL AND PROJECTED AVERAGE NUMBER OF ACCOUNTS, , SALES VOLUME,AND REVENUE UNDER EXISTING RATES l�) {Z) 13) �4) .' • .C� . . - . � Historical 1999-2000 na na na 2000-2001 5,610 1,275,260 538,000 2001-2002 5,751 1,309,999 500,300 2002-2003 5,859 1,378,382 526,200 2003-2004 5,867 1,413,356 599,500 Proiected � 2004-2005 5,909 1,292,116 636,300 i 2005-2006 5,959 1,360,579 662,100 2006-2007 6,009 � 1,372,695 667,100 2007-2008 6,059 1,382,345 671,300 . 2008-2009 6,'109 '1,391,995 � $675,500 [a] Projected revenue is based on rales cunently in eRect with no changes. � Revenue is shown to increase due to 50 single family customers per year. , Future sewer service charge revenue under existing rates has been projected recognizing the increase in the number of customers and projected water use per customer. Table S-3 presents Yhe projected sewer service charge revenue under exisring rates for the sNdy period. Other Revenue Other revenue received by the Sewer Fund includes expense recovery. Revenue from Yhese sources is projected to tota] $5,100 in FY 2004-OS and decreases to $1,700 throughout the remainder of the study period. Interest Income The Sewer Fund generates interestincome on available cash and inveshnents based on the inveshnent , policy of the City. Projected interest income is calculated on the average Sewer Fund balance during a - fiscal year at an interest rate of 2 percent, reflecting cutrent City investment rates. Interest income is projected to range from$6,700 in FY 2004-OS to$25,700 in FY 2008-09. ' � Tuckfield & Associates 2g Water and Sewer Rate Study Arroyo Grande, California Sewer System Revenue Requireinents Revenue requirements of the sewer urility consist of the annual obligations to operate and maintain a safe and reliable sewer system. These obligations include operarion and maintenance expense,routine capital expenditures, and capital h-ansfers. Operation and Maintenance Expense Operarion and maintenance expenses consist of the cost of personnel and materials to collect wastewater on a routine basis. Since these costs are an annual obligation of the sewer utility, they must be met from sewer service charge revenue. Salary and benefit costs aze projected to increase 8 percent per yeaz. Lift station power costs aze projected to increase in propoRion to the growth in total water volume with unit power cost ($ per Cc� increasing at 3 percent per year. All other costs aze projected to increase at 3 percent per year. Lines 7 through 9 of Table S� show transfers to the General Fund. These include personnel, operating, and cost allocarion transfers. These .transfers have the same purposes as described in the section pertaining to water operaring expenses. The transfers aze shown as budgeted for F'Y 2004-05 through FI' 2006-07. Future tansfers aze projected to increase at 3 percent per yeaz in the study period. Total operation and maintenance expense is budgeted at $541,000 for F1' 2004-OS and is projected to increase to$695,900 in F1'2008-09 as shown in Table S�. Contribution to City GIS The Sewer Fund is aiso expected to make contributions to the City GIS system. The sewer system's conh-ibution is estimated at$20,000 in FY 2005-06. Routine Capital Improvements Capital expenditures for equipment and system replacements that recur on a more or ]ess annual basis aze considered rourine,and aze properiy met from sewer service revenue rather than from debt financing or other major capital improvement sources of funds. Total routine capital equipment and improvement expendilures aze budgeted to be $6,800,in FI' 2004-OS and aze projected to increase to $2,500 in FY 20008-09. Tuckfield & Associates 2`� C TABLE 5-0 S` (� CITV OF ARROVO GRANDE 61 � SEWER UTILITY � � HISTORICAL AND PROJEGTEO OPERA710N AND MAINTENANCE E%PENSE � a °f � (�) Iz) (31 (4) Ie1 (sl (�I (el l9) f+0) O. D � y N � O �D Q ��. ��� ��� �� �� �� �� �� �� ��. �� ••�� �� •��. ��.• �r �� ��: ��: ��. l 01 �1 � 4710 Sawer Maintenance � r. y 1 SalatleslBenefits 115,OB1 123.496 129,911 137.476 158,307 t65,741 78J,024 792,994 208.400 225,100 � 2 5309 ContraclualServices 67,549 64,035 82,951 S,B43 1,333 2,000 3,000 J,000 3,100 3,200 fq 3 5402 Power 9,037 9,832 14,758 19,366 79,311 19,000 79,000 20,000 21,700 23,500 C 4 5603 Maintenance-Mach 8 Equip 4,159 3,271 4,946 09 76 5,000 5,000 5,000 5,200 S,a00 Q 5 5670 Mainlenance•Lines 8 Pumps 18,319 13,293 75,098 70,889 19,674 75,000 15,000 75,000 15,500 16,000 `� 6 580J Lease Purchase Peymenis 52,476 52,a77 0 1,735 3,471 3,500 J,500 9,500 J,500 3,500 7 5901 Personnei Transfers 108,275 126,600 211,796 225,000 221,900 230,J50 288.300 291,600 3D0,600 309,900 8 5902 Operaling Transfers 2�,950 36,800 35,000 78,050 J6,250 J7,700 41,230 38,S6U 39.700 40,900 9 5903 Cosl Allocation Transfers 52,300 43,000 45,850 47.950 41,850 <J,950 46,000 M18,250 49,700 51,200 70 Other 10,875 11.769 11,683 73,656 13,215 18,800 16,200 76,200 16,70D 77,200 � 11 Total Operation antl Malntenan�e Expensa 5462,021 E486,573 5551,393 5500,064 5515,387 5541.041 5621,054 5634,104 5664.100 5695,900 RouNne Capital � 12 4710 SewerMainlenanCe 6.779 7.124 J.J20 2:t.',:�v 11.7AA r,.-n +,snp 7...lu�i :�;m��... .�.:,::d � -,-_..,..-.�.:-_._:=s--._ _:.._-.-_._:,_.:�- . �_ : 13 TotalRoutineCapifal SG,179 f7.124 $3,JZU E22.559 511,744 $GJ67 8�1,500 52.JUU bY,4w b�,SOu Salanes and benefils expenses are Inllated at 8%per year. All olher ezpenses are inflated at 3Y Oer Year. n ; 0 � 0 � d � c m n m 0 w � m , , Water and Sewer Rate Study Arroyo Grande, Cafifornia Capital Transfers As presented in Table S-2, sources of funds to pay for the capita] improvements include hansfers from the Sewer Fund. The transfers are shown as budgeted for FY 2004-OS through FY 2006-07 and shown as detemuned fiom the City's CIP document in future years. Cornparison of Revenue With Revenue Requirements � Table S-5 provides a comparison of revenue and revenue requirements for the Sewer Fund in the form of � . a cash flow. Similaz criteria have been developed for the Sewer Fund as in the Water Fund to aid in the financial planning process. The criteria included establishing and maintaining a working capital reserve of 45 days of operation and maintenance expense in the Sewer Fund and a capita] reserve of$500,000. The Sewer Fund does not have any outstanding debt and therefore no debt service coverage criteria has been established. Based on these criteria,annual increases in sewer service revenue are indicated as follows. Effective Date Increases July 1,2005 10 percent July I,2006 3 percent July I,2007 3 percent July 1,2008 3 percent T'he increase is required to meet the annua] obligarions of the Sewer Fund and to meet the established financial planning criteria discussed above. Implementation of the increase will escalate the Sewer Fund balance to levels that approach the City's policy while allowing capital hansfers to conhibute to capital improvenlent expendit�ses. ' Tuckfield &Associates 29 Water and Sewer Rate Study Arroyo Grande, California TABLE S•5 CITY OF ARROYO GRANDE ; j SEWER UTILITY OPERATING FUND FLOW OF FUNDS STATEMENT � i ! (1) (2) (3) (4) (5) � . � i�. �i ii ��. ii. �i �� ��: ii: i�• Revenue . 1 SewerServiceChargesUntlerExistingRates $636,300 5662,100 5667,100 5671,300 5675,500 ' � Additional Revenue Required: ' ' ' AnnualiZetl Actual � Fiscal Revenue Months Revenue Year Increase Eftective Increase ' 2 2006 10.0% 72 10.0% 66,200 66,700 67,100 67,600 � 3 2007 3.0% 12 3.0% 22,000 22,200 22,300 4 2008 3.0°/ 12 3.0% 22.800 23,000 5 2009 3.0% 12 3.0°/ 23.700 6 To[al Additional Water Sales Revenue 0 66200 88,700 112,100 136.600 ' 7 Total Sewer Service Revenue ' 636,300 728,300 755,800 783,400 812,100 8 Other revenue 5.100 1,700 1,700 1,700 1.700 9 InteresllncomeFromOperations 6.700 8,200 10,800 16.700 21,300 , 10 TotalOperatingRevenuesAVailabie 648,100 738,200 768,300 801,800 835,100 ' � Revenue Requirements 'I1 Operetion and Maintenance Expense 547,000 627,100 634,700 664,100 695,900 '12 Coniribution to City GIS 0 20,000 0 0 0 13 Opereting Capital ExpentliWres(ROUtine) 6,800 4.500 2.300 2,400 2.500 . '14 CapitalTranstersOut 12.100 720,700 0 31,800 53,800 �5 Total Revenue Requirements 559,900 765,700 636,400 698,300 752,200 �6 Net Operatlng Funds Availa6le 88.200 (27.500) 131,900 103,500 82.900 ; 17 Beginning Opereting Fund Balance 89,190 777,390 149.890 281,790 385,290 . �8 Cumulative Opersting Fund Balance $177,390 5749,890 ' $281,790 $385,290 5468,190 , '19 Minimum Desired Balance [aj $567,600 5577,600 3579,300 $583,000 5587,000 � 20 Annual De6t Service Coverage 21 Net Revenue 5"107,100 5117,100 8734,200 $137,700 $139200 22 Total Annual Debt Service Requiremenls SO 50 $0 $0 $0 , 23 Coverage [b] NA NA NA NA NA [aj Eslimated at 45 days of operation and maintenance expense plus a capital reserve of 5500,000. [b] Total Ope2ting Revenues less Operoting and Mainlenance 6cpenses divided by Total Annual Debt. Sewer Rate Adjustments As in water rate adjustments, the principal consideration in establishing sewer rate schedules is to obtain rates for customers that aze reasonably conunensurate tivith the cost of providing sewer service. Theoretically, the only method of assessing enrirely equitzble rates for sewer service would be the deterntination of each customer's bill based upon their particular service requirements. Since this is impractical, schedules of rates are normally designed to meet average condirions for groups of customers , having similar service requirements. Practicality also dictates the use of a rate schedule which is simple Tuckfield & Associates 30 I � � Water and Sewer Rate Study Arroyo Grande, Califomia � to apply, reasonably recovers costs from all classes, and is subject to as few misinterpretations as , possible. . � Existing Sewer Service Rates ' The existing schedule of sewer rates was adopted by City Council in July 2004 and consists a bi-monthly service charge for all customers and a volume charge billed on metered water consumption. The existing sewer rate schedule is shown in Table S-6. TABLE S-6 ' qTY OF ARROYO GRANDE SEWER UTILITY ��. SCHEDULE OF EXISTING SEWER SERV�CE RATES ' Monthly Service Charge [a] S/mont� � All Customers 52.05 � Volume Charge [b] . S�Cd ', Single Family[c] $0.31 . Multi Family(cJ 0.45 ' Business 0.52 Church 0.52 Schooi 0.52 ', HaSpital 0.52 Irtigation 0.52 Motel 0.52 , Convalescent Homes 0.52 . Other $0.52 � ; [a] Monthly charge per acwunt,dwelling unit,or mobile home space. ; Ibj Charged based on metered water volume. � [c� Single family ciass retums 50 percent of inetered water to the sewer system. �� Multlfamily class retums 75 percent and all other classes retum 85 percent. Because sewer volume rates are charged based on metered water use,volume � 2tes are lower for ttie single family and multifamlly Gasses because the cost of � � service is calcuiated on sewer volume,but recovered on metered water volume. Tuckfield &Associates 31 Water and Sewer Rate Sfudy Arroyo Grande, California ; Proposed Sewer Service Rates Under Existing Rate Structure Assuming that the City implements Table W-7 for (no conservation) water rates, Table S-7 show�s the ' proposed rates for implementation for all sewer customer classes. The proposed sewer rates keep the � same structure as the existing rates,however, increase in FY 2005-OG to provide the revenue required to meet the obligations of the Sewer Fund. ........... .......b.,..,. .....,,..,..,......,,........ ..,.,.....,....�.b.. .,........,.............,. ......,. .,.,...,,....�....,... .......,..�....b sewer rate schedule is shown in Table S-6. TABLE S-6 ' � CITY OF ARROYO GRANDE SEWER UTILITY SCHEDULE OF EXISTING SEWER SERVICE RATES ' Monthly Service Charge [a] � 5/month ' All Customers 52.05 Volume CAarge @] . a�c�r � Single Family[cj 50.31 �. Multi Famity[c] 0.45 ' Business 0.52 Church 0.52 . School 0.52 Hospital 0.52 ' Irtigatlon 0.52 �' Molel 0.52 Convalescent Homes 0.52 � Other $0.52 [aJ Monthly charge per account,dwelling unit,or mobile home space. , [bJ Charged based on metered water volume. [c] Single family class retums 50 percent of inetered water to the sewer system. � Multlfamily ciass retums 75 percent and all other classes retum 85 percent. Because sewer votume rates are charged based on metered water use,volume � retes are lower for the single tamlly and multifamily dasses bepuse the cosl of � service is calculated on sewer volume,but recovered on metered water volume. Tuckfield &Associates 31 i Water and Sewer Rate Study Arroyo Grande, California � ; TABLE S-8 CITY OF ARROYO GRANDE SEWER UTILITY COMPARISON OF EXISTING RATES WITH PROPOSED RATE ALTERNATIVES '. FOR FY 2005-06 AT VARIOUS CONSUMPTION LEVELS Ccf •4 Units 0 $4.10 $4.20 $16.40 $16.80 $4.10 $4.20 . ' � 1 • $4.41 $4.55 $16.85 $17.30 $4.62 $4.78 2 $4.72 $4.90 $17.30 $17.80 $5.14 $5.36 3 $5.03 $5.25 $17.75 $18.30 $5.66 $5.94 � 4 $5.34 $5.60 $1820 $18.80 $6.16 $6.52 5 $5.65 $5.95 $18.65 $19.30 $670 $7.10 6 $5.96 $6.30 $79.10 $19.80 $7.22 $7.68 . 7 $627 56.65 $19.55 $20.30 $7.74 $8.26 8 $6.58 $7.00 $20.00 $20.80 $8.26 $8.84 9 $6.89 $7.35 $20.45 $21.30 $8.78 $9.42 10 $720 $7.70 $20.90 $21.80 $9.30 $10.00 11 $7.51 $8.05 $21.35 $22.30 $9.82 $10.58 ' 12 $7.82 $8.40 $21.80 $22.80 $10.34 $11.16 ' 73 $8.13 $8.75 $2225 $23.30 $10.86 $11.74 14 $8.44 $9.10 $22.70 $23.80 $11.38 $12.32 ' 15 58.75 $9.45 $23.15 $24.30 $11.90 � $12.90 i 16 $9.06 $9.80 �$23.60 $24.80 $12.42 $13.48 20 $10.30 $1120 525.40 $26.80 $14.50 $15.80 � 25 $11.85 $12.95 $27.65 $29.30 $17.10 $18.70 � 30 $13.40 $14.70 $29.90 $31.80 $19.70 $21.60 32 $14.02 $15.40 $30.80 $32.80 520.74 522.76 35 $14.95 $16.45 $32.15 $34.30 $22.30 $24.50 40 $16.50 $1820 $34.40 $36.80 $24.90 $27.40 50 $19.60 $21.70 $38.90 $41.80 $30.10 $33.20 100 $35.10 $3920 $61.40 $66.80 $56.10 $62.20 125 $42.85 $47.95 $72.65 $79.30 $69.10 $76.70 � 150 $50.60 $56.70 $83.90 $97.80 $82.10 $91.20 200 $66.10 $74.20 $106.40 $116.80 $108.10 $120.20 - 250 $81.60 $91.70 $128.90 $141.80 $134.10 $74920 ! [a] Existing rates as of July 1,2004. Averege bi-monthly consumption for a single family residential cusromer is 32 Ccf. customer using 32 Ccf of water during a two month billing cycle in FY 2005-06 would be $15.4Q, an � increase of$138, or 9.8%. As in the exisring rates, the proposed rates are based on metered wzter volume. Comparison of Sewer Rates With Other Communities ' ; Table S-9 presents a comparison of single family bi-monthly sewer bills for the Ciry of Arroyo ' Tuckfield & Associates 33 i Water and Sewer Rate Study A�royo Grande, California Grande and other local communities. The table is prepared using 32 Ccf of water, which represents the average volume of single family customers in the City of Arroyo Grande. TABLE S-9 CITY OF ARROYO GRANDE SEWER UTILITY COMPARISON OF PROPOSED SINGLE FAMILY WASTEWATER SERVICE RATES WITH SEIECTED LOCAL COMMUNITIES City oT Arroyo Grande Monthiy PJI Sizes $2.10 All Ccf $0.35 528.40 [b] FY 2005-08 Ciry of Atascadero MonNly per DU $20.18 $40.36 Ciry of Grover Beach Monthly per DU $16.42 E32.84 Ciry of Lompoc Monthly PJI Sizes All Ctf $3.39 554.24 [c] Ciry of Morro Bay MonNly All Sizes $13.48 0-10 Ccf 50.00 543.76 �Over 10 Ccf $1.40 Nipomo CSD Bi-monthly per DU $37.60 E37.60 � Oceano CSD Bi-monthly per DU $9.25 E22.25 [G] Cily of Paso Robles Bi•monthly par DU $45.72 E45.72 Ciry of Pismo Beach Bi-monthly SFR $47.40 547.40 Cily of San Luis Obispo B(-monthiy SFR $58.72 556.72 [a] Averege bi-monthly consumption for single family residential customer in City of Grover Beach. @] Inciudes South San Lufs Obispo Sanita6on DistriU charge of$13.00 per bi-month. [cj Rate charged on average of January,February,and March water consumption of 8 Ccf. The table indicates that under the proposed increase for FY 2005-06, the City of Arroyo Grande's average bi-montlily bill for single family customers is next to the lowest of the 9 communities shovm. Tuckfieid 8� Associates 34 , Water and Sewer Rate Study Arroyo Grande, California : ; ; Sewer Rates Under Water Conservation Rate Aiternative If the City chooses to implement the water consen�ation rates shown in Table W-10, it will be necessary , to modify the sewer rates slightly. The re��enue derived from sewer service charges under water conservation rates will be lower because the sewer rates are charged on water volume. Table S-10 presents the sewer rates that would be implemented if water conservation rates are iinplemented for the water utility. The single family bi-montl�ly bill under these rates is $16.04 as ' compared�vith $15.40 under the rates proposed from Table S-7. TABLE Sd0 CITY OF ARROYO GRANDE SEWER UTILITY SCHEDULE OF PROPOSED SEWER SERVICE RATES UNDER WATER CONSERVATION RATE ALTERNATIVE � ii. �� �� ii. �i. •�i• i� �i: ��: ��• [a] �b] [c] [cj [c] Monthly Customer Charge [d] All Customers 52.05 $2.10 52.15 $2.20 $225 Volume Charge-E per hundred cubic feet [e] . ' Single Family [tJ $0.31 $0.37 50.39 $0.40 y0.42 Multi Family [fJ 0.45 0.52 0.54 0.56 0.58 Business 0.52 0.58 0.60 0.62 0.64 Church � 0.52 0.58 0.60 0.62 0.64 , School 0.52 0.58 0.60 0.62 0.64 HoSpiWl 0.52 0.58 0.60 0.62 0.64 Motel 0.52 0.58 0.60 0.62 0.64 . Convalescent Homes 0.52 0.58 0.60 0.62 0.64 Olher $0.52 50.58 $0.60 50.62 $0.64 �a� Rales currently in eHecL �6j Rates eHective SeptemDer 1,2005. i �c] Rates eflective wilh June bilis of previous year to be fully eHective for ihe enlire fscal year. �d� Monthly charge per account,dwelling uni�,or mobile home sDace. �e� Char9ed basetl on metered watervolume. �tJ Single tamily Gass retums 50 percent of inetered water to the sewer system, multi(amily class returns 75 percent,and all olher classes return 85 percent. Because sewer volume retes are � proPosed to 6e chargeC baseG on metered water use,volume 2tes are lovrer tor ihe single tamily and mullfamily dass because the cost of service is ralculated on sewer volume,but recoveretl on metered water volume. , Sewer Rate Structure Comparison : The sewer rate structure presented in Table S-7 is the same as the existing rate struchue. Because the ' Tuckfield &Associates 35 Water and Sewer Rate Study Arroyo Grande, California , � : i City may implement water conservation rates, it is anecipated that the water consumption wrill be lower. ' ; Since the existing and proposed sewer rates aze dependent on water volume, sewer revenue will also be lower. To offset this,proposed sewer rates under water conservation is presented in Table S-10. , Tuckfield & Associates 36 Water and Sewer Rate Study Arroyo Grande, California Lopez Fund Water Charges Part of the scope of this study includes updating the Ciry's charges to water service customers for the , Lopez reservoir water enritlement received by the City. The Lopez reservoir and dam are operated and maintained by the San Luis Obispo Counry Flood Control and Water Conservarion District (District). The charges from the Dishict to the City include debt service, operarion and maintenance, and capital outlay. Because of the recent Lopez dam remediation project, the District debt service expense related to the project wil] be increasing in future years. The Dishict has provided projections of future chazges to the a City and these aze shown on line 4 of Table A-1. Table A-1 provides the projected cashflow of the • Lopez Fund, including the chazges from the District and City cost allocarions to the fund. Line 1 shows the budgeted revenue for the Lopez Fund for FY 2005-06 and F1'2006-07. Future revenue is established such that total operating revenue is equal to the fund expenses beyond FY 2006-07. Table A-1 City of Arroyo Grande Lopez Fund Flow of Funds Statement .� i� � �� �. i�.�� � �� �: �i: i• Revenue ' t LopezChargeRevenue $2,100,000 52,100,000 52.594,818 53215,372 $3,543J00 2 Interest Income 4,200 5,100 5.400 5,400 5,400 � 3 Total Operating Revenues Availa6le 2,104,200 2,105,100 2,600,218 3,220,772 3,540,500 � � Revenue Requlremants 4 Lopez Operation and Maintenance Expense�a] 1,707,424 1,M1,902 2,388,378 2,998272 3,314,900 5 Cost Allocation Transfers Out�b� 1Bfi.750 201.800 211.900 222,500 233 600 6 Total Revanua Requlrements 1.893,574 1,923,702 2,600,218 3220,772 3,548,500 . 7 Nat Operatinp Funds Awilabla 210,626 187,398 0 0 0 8 Beginning Opereting Fund Balance [c� 902.725 1,113.351 1294,749 1294,749 1,294,749 9 Cumulative Opereting Pund Balance 7,113,351 1294,749 7.294,749 1294,749 1.294,749 (a� From San Luis Obispo County Flood Control and Water Conservatbn District. - [bJ From Ciry of Moyo Grande. , [c] from Ciry of Arroyo Grantle,cash ody. ' Table A-2 shows the existing Lopez Fund charges to the City's water customers. The charges aze based on water meter size and by charging for additional"imits"on the same meter. For residential customers, ' additional units mean dwelling units, whereas for nonresidential customers, units may mean parldng space,room,bed,or additional water service on the same meter. Tuckfield & Associates A-1 Water and Sewer Rate Study Arroyo Grande, California Table A-2 City of Arroyo Grande Lopez Existing Rates and Charges [a] ��• � , • . , - Meter Charges 5/8 inch $20.55 $26.79 3/4 inch $20.55 $26.79 t inch $29.48 $35.83 • 1 112 inch $38.30 $44.66 2 inch $47.34 $53.70 3inch $56.17 $62.50 4 inch $65.21 $71.43 6 inch $83.16 $89.30 Additional Unit Charges Single Family $20.55 $26.79 Mobile Home Parks[bJ $20.55 $2679 Other MF(cJ $20.55 $26.79 Business [d] $20.55 $26.79 Hospital [e] $20.55 $26.79 Motel [Q $20.55 $26.79 ' Convalesent Home[ej $5.48 $7.00 [a] Charges effective April 1,2004. [bj Each additional space. [c� Each addi6onal dwelling unit. , [d] Each additional water service on same meter. [e] Each additional bed. [f] Each additional room. , Table A-3 presents the new chazges for implementarion in F1'2005-06 through FY 2008-09. The new � shuchae is similaz to the old sh-ucture however the additional unit chazge has been more equitably determined such that the charge is developed based on actual water consumption per unit for FY 2003- , 04. In this way, the impact on low water wnswners per imit,as compazed to single family customers,is ' less than the previous charges. These low water use per unit customers consist of mobile home parks, mulrifamily,hospital,motel,and convalescent home. Tuckfield 8 Associates A-2 I f Water and Sewer Rate Study Arroyo Grande, California . Table A3 City of Arroyo Grande � Lopez Meter Charges and Additionai Unit Charges � �� �. �� �: ��� � . �. � . . ' Ial Ibl ' Me[erCharges ' S/9inch 7.0 524.17 531.51 E29.a6 538.41 $9626 $4727 $39.69 351Ja 3/6inch 1.0 324.17 SJ1.51 E29.bfi 338.41 3�6.26 E47.27 339.89 551.7J t inch 7.4 534.67 E42.1a E42.28 551.36 $52.01 56322 856.93 589.t9 � 1 1/2 inch 1.9 845.05 552.53 $5a.91 $64.02 E67.58 $78.80 $73.96 $86.25 ' 2inch 2.3 555.68 f63.t6 $67.86 $76.98 583.53 $9475 E97.a2 E�0370 3 ir1�A 2.7 $66.07 f�3.51 580.52 EB9.60 E99.11 511017 5708.47 5720.70 4inch 3.2 $78.70 $Ba.02 E93.4H 5702.40 5715.06 E126.03 E725.93 37J7.96 6inch 4.0 597.91 E705.04 5119.22 3128.02 5146.73 E757.56 57fi0.59 3172.45 '. 8 inCh 5.0 3120.Bfi 3128.90 5147.30 $154.66 5181.29 5190.35 5798.a3 3208.35 AdtliNonal Unit Chargas Single Family 1.00 E24.77 331.51 529.46 f3B.41 E3626 547.27 E39.69 551.74 : MoEileHOmeParks�c� O.a3 $10.a3 $73.60 E72.77 E�6.57 S15.fi4 $20.39 51712 E22.32 � OtherMF[d� 0.43 $10.43 513.fi0 572.71 E76.57 515.84 12039 577.12 f22.32 ', Business(e� 0.90 327.87 528.52 526.66 236.75 E32.87 E42.76 E35.97� f46.et � Hospital�F� 0.77 518.53 f2a.77 522.59 Y29.45 E27.B0 536.23 E30.a3 E39.66 �� Motel�9� 021 $5.06 56.59 36.16 E8.04 $7.59 $9.89 E8.30 f10.82 � ConvaleSenlHOme[t� 0.23 55.68 57.14 56.68 SB.72 SB22 $10.72 59.00 511.)3 �a� Based on current LoOez Fund charge meter proparnonaliry. � [E� Atltlitional unit epuivalency factor Cased on ratio of consumDtion per unit as comparetl with single family classiflcation. , [<� Each atlEitional space. [d� Each additional Awelling unit. , �e� Each additional wa�er service an same meter. [f� Each additional Oed. _ � �, [gJ Each additional room. ( ,, � I � � I ' I I I ' �( ;. Tuckfieid & Associates A-3 j /% � � TO�I ' ��r ��� °L�¢ `" � �_ � a �� �. � � � ! ����,V- � � �,� �'17� uF �-G Ar;;;OYp �-. . �����, �;;.�.,;��r_ 93 �--.Ze, �� 07 J(t� -g PH 3: 23 � �� ( \ `� ���.'� � � �, �-���'� ,����`�� _ = ��'��� -�� ��� � � � � _ ��, :�� �`�� �`-�-e° `�C.�� .�u�� �K c �' __ - ' `'�'G„�,��� : � �� �¢' ��� �' �� � _ �j � . .��°�,,� ' �_ . . :�� � _ .... � � .����'`"�.�" ���.� � �) � . U' `'�'L���� � � .� _ � � � � � ��� - :�� � � � `f ��� �� ? ������`� ��D �,.e.�� °�� �'`�-�, � °���-u-a D�� �� � r ` �� �� � ��` ` - ���� �� � �-�y r _ i ��� l/ � ��� _ � x- /� � �� _°S � �'� . � � ````� z�- ���� � � ���. �'���°-��°�� � �{, � � I �, � � ,, � � � � � � � , , 1 . � , 1 � , J , � , . . __ _. _- . - � _ ' ' T i '.� � � r _ � 'I . + -t' ' I I � � i I I ,, I �., � -,.-:, ._., E1sieReis l:ft�r ��� ':' i ;'��`� �' ' '- 411 Beech Street Arroyo Grande, CA 93422 0� JUN 19 Pi� �� 24 June 16, 2007 \ City of Arroyo Grande Attn: City Clerk P.O. Box 550 Arroyo Grande, CA 93420 To Whom It May Concern: Re: Proposed Utility Rate Increase I nm a life long resident of Arroyo Grande, having been born here in 1921. My residence is located on Parcel # 077.282.018 I would like to submit this written protest against the proposed utility rate increase. This protest is ngninst the proposed increase in wnter rotes. I nm an 86 yectr old widow living on n fixed income. I am Qlso faced with all of the increased expenses that are sited as the reason for the increase; however, I can't rnise nnyones rates in order to muke ends meet. I wnter as little as possible while still trying to keep my smnll Inwn nnd trees alive. I receive a reduction in my other utility bills due to my low income. If it is necesscry for the City to rnise rates, would they too, give a reduced rate to senior citizens who nre low income? That would seem fair. Another solution would be to charge only the henvy users the higher rnte. I would appreciate your considerntion in this matter. Sincerely yours, ,��� �C� Elsie Reis J \i A . `, ..� REGEiV€D 4z, ,,,�� May 25, 2007 iltY OF ARRoYO G. r,,.: - 07 MA`( 30 PM 2� 47 City of Arroyo Grande Attn: City Clerk P. O. Box 550 Arroyo Grande, CA 93421 RE: PROTEST TO PROPOSED UTILITY INCREASE -WATER The increase in proposed utility rates for water is unreasonable and unwarranted. The proposed increase in fees is associated with the expansion of the infrastructure for future development rather than providing any enhancement or improvement of existing services or efficiency for current users. We are against paying higher utility fees that lead to growth and development in the Arroyo Grande area. In addition, the protest pra;ess is flawed in that it requires considerable effort and documentation on the part of the property owner to file a protest. It discourages relevant parties from participation in the process. Sincerel , ��r���L�f�,�t/�-�� , � � James & Nancy�Ikitis �� � 501 Hawkins Court Arroyo Grande, CA 93420 805-481-2167 Assessor's Parcel Number (APN) 007,502,028 � ,� RECe�vEo C:ITY OF AR�t YO Gfi;�.Npt 07 MAY 23 PM 2� I 2 May 21 , 2007 RE Water Bill Dear Sirs: I am writing to protest yet another increase in a utility bill . There are many people that live here who are Senior Citizens and find it more and more difficult to pay their utility bills because of the constant increases. The break down of the water bill shows that the Lopez Lake Water Treatment is the highest item on the bill. Therefore, 2 protest an increase in my water bill in July and the amount of the Lopez Water Treatment. S�rel , �^ Sall , L���� 360 Tiger Tail Drive Arroyo Grande,CA. 93420 Parcel # 006, 085, 032 � ,., � E1sieReis ';ITI ���� �� � � � L r'� , "�')r. 411 Beech Street Arroyo Grande, CA 93422 07 JURJ I 9 P� !� 24 June 16, 2007 \ City of Arroyo Grande Attn: City Clerk P.O. Box 550 Arroyo Grande, CA 93420 To Whom It May Concern: ' Re: Proposed Utility Rate Increase I am a life long resident of Arroyo Grande, having been born here in 1921. My residence is located on Parcel #077.282.018. I would like to submit this written protest against the proposed utility rate increase. This protest is agcainst the proposed increase in Lopez chnrges. I am an 86 year old widow living on a fixed income. I am nlso faced with nll of the increased expenses thut are sited as the reuson for the increase; however, I can't rQise nnyone's rutes in order to mnke ends meet. I wnter as little as possible while still trying to keep my smull Iawn nnd trees nlive. Perhnps treatment expenses could be reduced by not allowing gns powered boats on the Inke or people nnd unimals in it. Also, perhops chnrging out of county users a higher fee would also help off set the added expenses. I receive a reduction in my other utility bills due to my low income. If it is necessary for the City to raise rntes, would they too, give a reduced rnte to senior citizens who ore low income? Thnt would seem fnir. Another solution would be to charge only the heavy users the higher rate. I would apprecinte your consideration in this matter. Sincerely yours, �� / _� Elsie Reis - `, � RECEtVED {, h�„�r. May 25. 2007 CItY €3r aRR0Y0 G ,-,,;-- 07 MAY 30 PM 2� 41 City of Arroyo Grande Attn: City Clerk P. O. Box 550 Arroyo Grande, CA 93421 RE: PROTEST TO PROPOSED UTILITY INCREASE — LOPEZ The increase in proposed utility rates for Lopez is unreasonable and unwaRanted. The proposed increase in fees is associated with the expansion of the infrastructure for future development rather than providing any enhancement or improvement of existing services or efficiency for current users. We are against paying higher utility fees that lead to growth and development in the Arroyo Grande area. In addition, the protest process is flawed in that it requires considerable effort and documentation on the part of the property owner to file a protest. It discourages relevant parties from participation in the process. Sincerely, ����` .� 1r�,e�P��o James 8 Nancy�Ikitis � 501 Hawkins Court Arroyo Grande, CA 93420 805-481-2167 Assessor's Parcel Number (APN) 007,502,028 � J �.. .,, ���[I`JF� E1sieReis �;ITY C�F Af;fi01`D �i�,°,��nc 411 Beech Street Arroyo Grande, CA 93422 07 ���d I 9 PP1 I� 24 June 16, 2007 \ City of Arroyo Grande Attn: City Clerk P.O. Box 550 Arroyo 6rande, CA 93420 To Whom It May Concern: Re: Proposed Utility Rnte Increctse I am a (ife long resident of Arroyo 6rande, hnving been born here in 1921. My residence is located on Parcel # 077.282,018. I would like to submit this written protest agninst the proposed utility rate increase. This protest is against the proposed increase in sewer rntes. I nm an 86 year old widow living on n fixed income. I am ulso foced with nll of the increased expenses that are sited as the reason for ihe increase; however, I cun't raise anyone s rates in order to make ends meet. I water as little ns possible while still trying to keep my small Inwn and trees alive. As a single person, I surely cannot be putting as much waste in ihe sewer as a family of two or more. I receive a reduction in my other utility bills due to my low income. If it is necessary for the City to raise rntes, would they too, give a reduced rate to senior citizens who are low income? That would seem fair. Another solution would be to charge only the henvy users the higher rnte. I would appreciate your considerution in this mutter. Sincerely yours, ��- /'�.�z Elsie Reis �-- `. REC�iveo May 25, 2007 t:ITY �F ARROYO .r- 'd,'r;�E 07 hAY 30 PP9 2� 47 City of Arroyo Grande Attn: City Clerk P. O. Box 550 Arroyo Grande, CA 93421 RE: PROTEST TO PROPOSED UTILITY INCREASE —SEWER The increase in proposed utility rates for sewer is unreasonable and unwarranted. The proposed increase in fees is associated with the expansion of the infrastructure for tuture development rather than providing any enhancement or improvement of existing services or efficiency for current users. We are against paying higher utility fees that lead to growth and development in the Arroyo Grande area. In addition, the protest process is flawed in that it requires considerable effort and documentation on the part of the property owner to file a protest. It discourages relevant parties from participation in the process. Sincerely � , , � � � v � � James & Nancy Vilkitis 501 Hawkins Court Arroyo Grande, CA 93420 805-481-2167 Assessors Parcel Number (APN) 007,502,028 9.b. CITY OF ARROYO GRANDE REDEVELOPMENT AGENCY , NOTICE OF PUBLIC HEARING On TUESDAY, JUNE 26, 2007, the Arroyo Grande Redevelopment Agency will conduct a public hearing at 7:00 P.M. in the COUNCIL CHAMBERS, 215 E. BRANCH STREET, ARROYO GRANDE, to consider the following item: Proposed Exclusive Negotiating Agreement. The Redevelopment Agency Board of Directors will consider approval of an Exclusive Negotiating Agreement with South Valley Developers ("Developer"). The Exclusive Negotiating Agreement will provide a twelve (12) month exclusive period during which the Arroyo Grande Redevelopment Agency and Developer will negotiate a potential Disposition and Development Agreement for the possible development of a hotel on the real property consisting of approximately 36,590 square feet of land area located on the north side of Faeh Street west of EI Camino Real (APN 006-151-027). The Redevelopment Agency Board of Directors may also discuss other hearings or business items before or after the items listed above. If you challenge the proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Board at, or prior to, the public hearing. Failure of any person to receive the notice shall not constitute grounds for any court to invalidate the action of the legislative body for which the notice was given. Information relating to this item is available by contacting the City Manager's Office at 473-5400. The City Council/Redevelopment Agency meeting will be televised live on Charter Cable Channel 20. /�--- Kelly Wetmore, ity Clerk Publish 1T, The Tribune, Friday, June 15, 2007 , _ __ ____ ___ __ _ � pRROY� -- - � CP hINCORPORATED y2 � ° MEMORANDUM � ��. ,o. ,o„ * c4��FOR�`P ' TO: CITY COUNCILIREDEVELOPMENT AGENCY BOARD OF DIRECTORS FROM: STEVEN ADAMS, CITY MANAGER/EXECUTIVE DIRECTOR }��' v SUBJECT: CONSIDERATION OF EXCLUSIVE NEGOTIATION AGREEMENT WITH SOUTH VALLEY DEVELOPERS FOR PURCHASE AND HOTEL DEVELOPMENT AT THE VACANT PARCEL OWNED BY THE REDEVELOPMENT AGENCY AT FAEH STREET AND EL CAMINO REAL DATE: JUNE 26, 2007 RECOMMENDATION: It is recommended the City Council/RDA Board of Directors approve the proposed Exclusive Negotiation Agreement (ENA) with South Valley Developers for purchase and . development of a hotel at the vacant parcel owned by the Redevelopment Agency at Faeh Street and EI Camino Real. FUNDING: If approved, costs and revenues associated with the project would be determined through the negotiation with the developer. The original cost to the Redevelopment Agency for the parcel was approximately $830,000. It would be staff's intent to recover this funding. However, some Redevelopment Agency financial assistance may be considered. DISCUSSION: At the July 25, 2006 meeting, the Redevelopment Agency acquired a vacant parcel at Faeh Street and EI Camino Real to facilitate development of a mixed-use project or hotel. A hotel project was identified as the preferred use and the site was previously identified in the City's hotel/motel attraction strategy. The property was purchased in order to ensure development is consistent with the City's economic development program given its optimal freeway exposure. Due to optimal freeway exposure, the vacant property at Faeh Street and EI Camino Real is a key site to, the City's economic development strategy. Thus far, no private development proposals have been submitted that staff believes represent the best use for this property. In addition, staff fears the property may be sold as individual lots, which would result in a fragmented and uncoordinated pattern of development. The property is currently on the market, which provides an opportunity to purchase it at what staff has determined is a reasonable cost. Therefore, staff believes it is important to acquire this property at this time in order to achieve a number of the City's economic development goals. S:Wdministrarion\CITY MANAGER\STEVE\Council Reports�Faeh Street ENA 6.26.07.doc CITY COUNCIL EXCLUSIVE NEGOTIATION AGREEMENT WITH SOUTH VALLEY DEVELOPERS FOR PURCHASE AND HOTEL DEVELOPMENT AT THE VACANT PARCEL OWNED BY THE REDEVELOPMENT AGENCY AT FAEH STREET AND EL CAMINO REAL JUNE 26, 2007 PAGE 2 After discussion of concepts with a number of developers, staff recommends pursuing a hotel project with South Valley Developers, who would propose construction of a Marriott Fairfield Inn with a minimum of 80 units. They appear willing to meet the key terms proposed by staff for purchase of the property, have provided initial design concepts consistent with goals for the site, have expressed a willingness to work with neighborhood residents to address concerns, and staff believes their qualifications are sufficient to provide a successful project. However, they have requested an ENA at this time prior to incurring additional design expenses. South Valley Developers are headquartered in Morgan Hill, California. They specialize primarily in residential and hotel development. Currently, they are developing a Courtyard by Marriott in Paso Robles. Background information on their experience is attached. ALTERNATIVES: The following alternatives are provided for the Council's and Agency's consideration: - Approve recommended Exclusive Negotiation Agreement with South Valley Developers; - Modify as appropriate and approve the acquisition and funding; - Do not approve property acquisition; - Provide direction to staff. Attachments: 1. Exclusive Negotiation Agreement 2. Background Information from South Valley Developers ATTACHMENTI EXCLUSIVE NEGOTIATION AGREEMENT This Exclusive Negotiation Agreement (`BNA") is made and entered into, to be effective the day of July _, 2007 ("Effective Date"), by and among the City of Arroyo Grande ("City"), a California general law city, the Arroyo Grande Redevelopment Agency ("RDA"), a public entity organized under the laws of the State of California, and South Valley Developers, LLC ("Master Developer"), a California limited liability company. (City, RDA, and the Master Developer aze individually referred to as a"Party" and collectively as the "Parties," and City and RDA are collectively referred to as the "Agencies"). RECITALS A. RDA is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Community Redevelopment Law of the State of California(Health and Safety Code Section 33000 et seq.). B. RDA is the owner of record of that certain real property consisting of approximately 36,590 square feet of land area located on the north side of Faeh Street west of El Camino Real in the City of Arroyo Grande, County of San Luis Obispo, State of California, more particularly described in the legal description attached hereto as Exhibit"A" ("Property"). C. On June 10, 1997, the City Council of the City of Arroyo Grande adopted Ordinance No. 487 C.S. approving and adopting the Redevelopment Plan for the Arroyo Grande Redevelopment Project ("Redevelopment Plan"), which Redevelopment Plan delineates the Arroyo Grande Redevelopment Project Area ("Project Area"). The Property is located within the boundaries of the "Project Area." D. Agency desires to implement the Redevelopment Plan for the Project Area by considering the potential disposition of the Property to Developer for the possible development of a Fairfield Inn by Marriott standard hotel and, to this end, Master Developer and Agency desire to further study and analyze the feasibility of the disposition of the Property to Master Developer for the potential development of a hotel on the Property. E. The Agencies and Master Developer desire to enter into this ENA, which provides for the Agencies' exclusive negotiation with the Master Developer for up to twelve (12) months (the "Negotiation Period") for the purpose of effecting the timely performance of all of the following: (i) the Master Developer's preparation, and the Agencies' review (as applicable) of a Preliminary Site Plan for the Project; and (ii) the negotiation and preparation of a disposition and development agreement that provides for, among other things, (a) the Agencies' potential conveyance to the Master Developer of the Property; (b) Master Developer's preparation and processing of all land use 1032/024600-0004 819668.02 a0G/21/07 '1— ,, �, . entitlements required for the development of the Project; and (c) the submittal to the Agencies by Master Developer of evidence of Master Developer's financial ability to develop and operate the Project (collectively, the "DDA"); and (iii) the Agencies' preparation and circulation of all requisite environmental documents (the "Environmental Documents") to evaluate the potential environmental impacts of the proposed Project and any related necessary actions required of the Agencies, in accordance with the requirements of the California Environmental Quality Act (California Public Resources Code §§ 21000 et seq. ("CEQA")). F. The Master Developer is willing to pay for the Agencies' actual, out of pocket consultant fees and costs incurred in preparing the Environmental Documents (the "Approved Environmental Review Costs"). AGREEMENT NOW THEREFORE, in consideration of the Recitals and mutual covenants and conditions contained herein, the parties hereto agree as follows: 1. Definitions. 1.1 Additional Deposit. The term "Additional DeposiY' shall mean an additional deposit amount that the Agencies may request the Master Developer to provide if the Agencies incur or will incur additional Approved Environmental Review Costs after depleting the full amount o£the Deposit, as further discussed in Section 6 hereof. 1.2 AQencv. The term "Agency" shall mean the Arroyo Grande Redevelopment Agency, a public entity organized under the ]aws of the State of California. At times, Agency shall also be refened to as "RDA" in this ENA. 1.3 Approved Environmental Review Costs. The term "Approved Environmental Review Costs" shall mean the actual, out-of-pocket consultant fees and costs the Agencies incur in preparing the Environmental Documents. ].4 Citv. The term "City" shall mean the City of Arroyo Grande, a California general law City. 1.5 Default. The term "DefaulY' shall mean a failure or delay by any Party to perform any term or provision of this ENA if, subject to Section 11, after receiving written notice of such failure or delay, the responsible Party fails to commence to cure, correct, or remedy such failure or delay within thirty (30) days thereafter and diligenty pursue such cure, conection or remedy to completion. 1.6 Deposit. The term "DeposiP' shall mean that certain deposit Master Developer is required to provide to the Agencies, as further described in Section 6 hereof. 1032/024600-0004 R79RG8.02 a0G21/07 -Z- 1.7 Develonment Plan. The term "Development Plan" shall mean the development plan far the Project, to be prepared by the Master Developer, as further described in Section 9 hereof. 1.8 Environmental Documents. The term "Environmental Documents" shall mean all of the environmental documents to be prepared or directed by the Agencies which are necessary to evaluate the potential environmental impacts of the Project and Redevelopment Plan, and any related necessary actions required of the Agencies. 1.9 Exniration Date. The term "Expiration Date" shall have the meaning ascribed in Section 3.1 hereof. 1.10 Master Develoner. The term "Master Developer" shall mean South Valley Developers, LLC, a California limited liability company as defined under the terms of this Agreement. 1.11 Preliminary Site Plan. The term "Preliminary Site Plan" shall mean the preliminary site plan for the Project to be prepared by the Master Developer, as further described in Section 9 hereo£ The Preliminary Site Plan shall include a map generally depicting the location of the Project, and identifying thereon each of the proposed land uses comprising the Project. 1.12 Project. The term "ProjecY' shall mean the hotel project proposed by the Master Developer to be developed on RDA's Property. 1.13 Proiect Area. The term "Project Area" shall mean the Anoyo Grande Redevelopment Project Area adopted by way of Ordinance No. 487 C.S. 1.14 RDA's Property. The Term "RDA's Property" shall mean the Property owned by RDA as described in Exhibit "A." 1.15 Redevelonment Plan. The term "Redevelopment Plan" shall mean the Redevelopment Plan for the Arroyo Grande Redevelopment Proj ect Area adopted by way of Ordinance No. 487 C.S. 2. AQreement to NeQOtiate Exclusivelv: Good Faith Negotiations. The Agencies agree that, during the Negotiation Period (as defined in Section 3 below) and provided that the Master Developer is not in Default of its obligations under this ENA, the Agencies shall negotiate exclusively the terms of the DDA with Master Developer. Notwithstanding the foregoing, Master Developer expressly acknowledges that Agencies are under no obligation to enter into a DDA with Master Developer at the end oFthe Negotiation Period. �osziozaaoo-ooua 819868A2 a0G/21/07 —3— 3. Period of Negotiation. 3.1 The Parties agree to negotiate in good faith for a period of twelve months (12) months, commencing on the Effective Date. Subject to the provisions of Section 12, if the Parties have not executed the DDA by the Expiration Date, then this ENA shall automatically terminate; provided, however, the Parties may mutually agree to extend the term of this ENA far additional periods, subject to City Council and Agency Board approvals. If the Parties cannot agree upon such an extension, this ENA shall automatically terminate upon the Expiration Date. 3.2 This ENA may be terminated by written notice, without liability or damage to the terminating party, (i) by the Agencies, if the Master Developer is in Default of the terms hereof, as described in Section 11, the Master Developer has involuntarily filed for bankruptcy, or the Master Developer has assigned or subcontracted any part of the Master Developer's obligations or rights hereunder, in violation of the terms hereof, without obtaining the Agencies' consent; (ii) by the Master Developer, if the City or RDA are in Default of the terms hereof, as described in Section 11, or (iii) by the mutual written agreement of the Parties. 33 Upon termination of this ENA, any interest that Master Developer may have hereunder shail cease and the Agencies shall have the right to thereafter develop or dispose of the Property as Agency shall determine appropriate in its sole and absolute discretion. 4. Test and Survevs. During the Negotiation Period, Master Developer shall, to the extent reasonably possible and at its own expense, conduct such tests, surveys, and other analyses as the Master Developer deems necessary to determine the feasibility of designing and constructing the Project on the Site, and shall complete such tests, surveys, and other analyses as promptly as possible within the Negotiation Period. For these purposes, the Agencies shail, and hereby do provide to Master Developer, its agents, consultants, and representatives, a license to enter onto any the Agencies' Property to conduct such inspections, tests, surveys, and other procedures as reasonably desired by Master Developer("Tests"). 5. Tovics for NeQOtiation of DDA. The topics for negotiation of the DDA include, among other things (i) Master Developer's rights to lease or purchase the Property from the Agencies, (ii) method of calculating and paying ground lease rents and/or purchase price; (iii) the terms of any proposed ground lease or purchase deed including necessary covenants, conditions, and restrictions affecting the Site; (iv) air rights use; (v) management of the Project; (vi) the schedule of performance; (vii) availability of the Property to the Master Developer; (viii) proposed land uses; (ix) development layout; (x) preliminary design and architectural concepts and plans; (xi) architecture of improvements to be constructed on the Property; 1032/024600-0004 RI98(8.U2 a06/21/07 '4— (xii) aesthetic considerations; (xiii) the quality and type of construction; (xiv) environmental responsibilities; (xv) the Master Developer's responsibility to obtain environmental clearances, entitlements, and project financing; (xvi) the terms of Master Developer's construction financing and the Agencies' reasonable right to review same; (xvii) any other considerations necessary to fully evaluate the feasibility and implementation of the Project; (xviii) subdivision of the Site, and (xix) management of the Project following potential disposition. In addition to the topics described herein, the Parties further agree to negotiate in good faith with each other with respect to such other terms and conditions as may be necessary or appropriate to be included and provided for in the DDA and to cooperate in the preparation thereof. 6. Master Develoner's Pavment Obligations and DepoSlt. 6.1 Prior to and as a condition precedent to the execution of this ENA by the Agencies, Master Developer shall submit to the Agencies a minimum good faith deposit ("DeposiY') in the amount of Twenty Five Thousand Dollars ($25,000) in the form of �, cash or check to ensure that Master Developer will proceed diligently and in good faith to negotiate and perform all of Master Developer's obligations under this ENA. The Deposit, when received by the Agencies, shall be deposited into a trust account selected by the City Treasurer, in its sole discretion (the "Trust Accounf'). Interest, if any, shall remain in the Trust Account and be held as security for the Master Developer's obligations in this ENA. The Agencies may withdraw portions of the Deposit from the Trust Account for purposes of paying for the Agencies' Approved Environmental Review Costs. Prior to any such withdrawal, the Agencies shall present evidence satisfactory to Master Developer, in Master Developer's reasonable discretion, that the Agencies have or � will incur costs in the amount to be withdrawn. If any funds are withdrawn prior to the time the expense is actually incurred, the Agencies will promptly provide the Master � Developer with supporting documentation evidencing that the work has been performed and the actua] cost thereof. In the event of any discrepancy between the amount withdrawn and the cost incurred, the Agencies shall perform an immediate reconciliation. For example, if the Agencies make a $1Q000 withdrawal based on an environmental consultant's estimate (with evidence of such estimate having been provided to Master Developer prior to the withdrawal), and the actual cost of such work is $8,500, the Agencies shall immediately deposit the amount of$1,500 into the Trust Account. I 6.2 If the Agencies' incur or will incur additional Approved Environmental I Review Costs after depleting the full amount of the Deposit, the Agencies may request an additional deposit (the "Additional DeposiY') from the Master Developer to cover such ' costs. Upon request by the Agencies, the Master Developer shall provide the Agencies � with the Additional Deposit, in the amount requested. Withdrawals by the Agencies shall be made in the same manner as described in the immediately preceding paragraph. , 63 If this ENA is terminated without execution of a DDA, the Agencies shall promptly refund the remaining amount of the Deposit or any Additional Deposit, plus � interest, less any and all Approved Environmental Review Costs owed or due for which i evidence of the amount and/or actual expenditure has been presented to the Master � iosziozaeoo-000a � 879868.02 a06/21/07 -5- I Developer. In the event that a DDA is executed, the Agencies shall, within thirty (30) days after said execution, return the remaining amount of the Deposit or any Additional Deposit, plus interest, to the Master Developer, unless the Master Developer expressly agrees that the Agencies may retain such amount, in which case such amount shall be credited against the Master Developer's financial obligations to one or both of the Agencies, as may be provided in the DDA. 7. Broker's Fees. The Parties represent and warrant to each other that no broker or finder has been engaged or is in anyway connected with the transactions contemplated by this ENA. In the event any claim far brokers' or finders' fees is made in connection with the transactions contemplated by this ENA, the Party upon whose statement, representation, or agreement the claim is made shall indemnify, save harmless and defend the other Parties from and against such claims. 8. Assienment. 8.1 The qualifications and identity of the Master Developer are of particular interest to the Agencies. It is because of these qualifications and identity that the Agencies have entered into this ENA with the Master Developer. ConsequenUy, no person, whether a voluntary or involuntary successor of Master Developer, shall acquire any rights or powers under this ENA nor shall the Master Developer assign all or any part of this ENA without the prior written approval of the Agencies with such approval or disapproval to be exercised at the Agencies' sole and absolute discretion. A voluntary or invohmtary sale or transfer of any interest in the Master Developer shall be deemed to constitute an assignment or transfer for the purposes of this Section 8.1, and the written approval of the Agencies sl�all be required prior to effecting such an assignment or transfer. The Master Developer shall not, except as permitted by this ENA, assign or attempt to assign this ENA or any rights or duties herein, without the prior written approval of the Agencies. Any purported transfer in Violation of the preceding two sentences, voluntazily or by operation of law, except with the prior written consent of the Agencies, shall be null and void and shall confer no rights whatsoever upon any purported assignee or transferee. 8.2 The Agencies may assess a separate fee for its approval of any assignment so long as such Fee does not exceed the total of the direct, reasonable costs incurred by the Agencies related to the review and approval of the assignment, including all in-house costs and expenses, direct third party expenses, consultant fees, and legal fees related to the review and approval of the assignment. Such fee shall not exceed five thousand dollars ($5,000) unless Master Developer is requested to, and does authorize a higher fee. 83 Nothing contained in this Section 8 of the ENA shall prohibit or in any way limit Master Developer's ability to choose or replace consultants and other third parties retained by the Master Developer to perform services relating to the Master Developer's obligations under this ENA. ivaziozaaoo nooa < x19868.02 aoG21/0"] -V- 9. Oblieations of the Parties. 9.1 Upon Execution of this ENA, the Master Developer shall prepare and submit to the Agencies the Preliminary Site Plan. The Agencies and/or Agency staff shall review and provide comment to the Master Developer regarding the Preliminary Site Plan within sixty (60) days after receipt thereof from the Master Developer. Within forty five (45) days after the Master Developer receives comments from the Agencies regarding the Preliminary Site Plan, the Master.Developer shall revise, as necessary, and resubmit to the Agencies and/or Agency staff, the Preliminary Site Plan. IF additional changes to the Preliminary Site Plan are necessary, the timeframes set forth above shall apply. 9.2 Upon the Agencies' non-binding approval of the Preliminary Site Plan, the Agencies shall commence preparation of requisite Project Approvals and the Environmental Documents. At this time the parties shall also commence negotiating and preparing the DDA. Collectively, the Preliminary Site Plan, the Project Approvals and the Environment Documents shall be referred to as the "Redevelopment Plan." 93 It shall be the obligation of the Master Developer to be fully and completely familiar with all laws, rules, regulations, and practices of the Agencies and any government agency having regulatory jurisdiction over the project and Master Developer shall acquire and possess a clear understanding of the planning and design criteria required by these and other agencies. 9.4 This ENA is an agreement to enter into a period of exclusive negotiations according to the terms hereo£ The Agencies and the Master Developer each expressly reserves the right to decline to enter into the DDA in the event the Parties fail to negotiate an agreement to the mutual satisfaction of the Agencies and the Master Developer at their sole and absolute discretion. Except as expressly provided in this ENA, the Agencies and Master Developer shall have no obligations or duties hereunder and no liability whatsoever in the event the Parties fail to timely execute the DDA. 9.5 The Master Developer acknowledges and agrees that the Agencies have not agreed to directly fund, subsidize, or otherwise financially contribute in any manner toward the (1) preparation of the Preliminary Site Plan, or (2) the development of the Project, or (3) the Environmental Documents, except as expressly provided in this ENA or as may be negotiated and included in the DDA. 9.6 By their execution of this ENA, the Agencies are not committing to or , agreeing to undertake: (i) disposition of the Site to the Master Developer; or(ii) any other acts ar activities requiring the subsequent independent exercise of discretion by the City Council or the Agency Board. The Parties recognize that one or more of the documents to be prepared by Agencies' staff as set forth herein may fail to be approved as a result of subsequent studies, reviews, and proceedings invoking the excercise of discretion by the City Council or Agency Board or any public agency having regulatory jurisdiction over the Site or the Project. The Agencies shall not be liable to Master Developer far any damages, injuries, or losses of any kind that the Master Developer may suffer as a result 1032/024600-0004 819868.0?a06/21/07 -7' � y of the use of discretion, as provided for herein, by one or more of the Agencies' or any other pubiic agency having regulatory jurisdiction over the Project or the Site, nor shall the Agencies be compelled to take any action to avoid any such damages, injuries, or losses. Except as provided in Section ll, Master Developer expressly and without reservation or limitations of any kind holds the Agencies and all public agencies having regulatory jurisdiction over the Site or the Project hannless for any damages, injuries, or losses of any kind the Master Developer may suffer, directly or indirectly, as a result of the lawful exercise of discretion made, rendered, determined, or implemented by one or more of such agencies as provided under law or this Section 9.6. 10. Non-Liabilitv of Agencies' Officials and Em lovees. Without limiting the provisions set forth herein, no member, official, representative, director, attorney, or employee of the Agencies shall be personally liable to Master Developer or any successor in interest, in the event of any Default or breach by the Agencies of any obligations under the terms of this ENA, or of any amount, if any, which may become due to Master Developer or to its successor under the terms of this ENA. 11. Defaults. 111 Subject to the extensions of time set forth in Section 12, Failure or delay by any Party to perform any term or provision of this ENA constitutes a Default under this ENA if, after receiving written notice of such failure or delay, the responsible Party fails to commence to cure, correct, or remedy such failure or delay within thirty (30) days thereaRer and diligenty pursue such cure, correction or remedy to completion. 11.2 In the event of a Default, the Parties or their representatives and such additional persons as the Parties believe may be helpful in the resolution of any dispute, shall meet and confer in good faith in an effort to resolve the dispute in an amicable manner for a period of forty-five (45) days, as such period may be extended by mutual agreement of the Parties. If the dispute is not resolved in this manner, the dispute shall be resolved pursuant to the following: 113 If the Parties are unable to resolve the dispute by voluntary settlement within the period described above, the dispute shall be resolved by binding arbitration by delivering a written demand for arbitration to the other Parties to the dispute. 11.4 Arbitration shall be conducted in San Luis Obispo County, California, in accordance with California Code of Civil Procedure Sections 1280-1284.2, as amended as of the date of submission of the dispute ("Rules"), and as modified by this Section. To the extent there is a conflict between the provisions of this Section and the Rules, however, the provisions of this Section shall govern. By mutual written agreement, the Parties may vary any of the provisions of this Section and the Rules, including modifications which designate an alternative dispute resolution procedure. IU32/02460U-0004 O 8198G8.02 a0G/21/07 'O— 11.5 As used herein, a "qualified arbitrator" means a party with at least ten (10) years experience in resolving disputes in the Central California area. Within thirty (30) days after any Party delivers written demand for arbitration, the Parties shall meet and attempt to select, by mutual agreement, one (1) qualified arbitrator to act as the sole arbitrator of the dispute. If the Parties cannot agree on an arbitrator within such 30-day period, as such period may be extended by mutual agreement of the Parties, then, within an additional thirty (30) days, the Master Developer and the Agencies each shall designate up to three (3) qualified azbitrators and notify the other Parties in writing of the designations. The qualified arbitrators so designated within such 30-day period shall constitute the "List of Arbitrators." If either the Master Developer or the Agencies fail to designate any qualified arbitrators within such 30-day period, then the qualified arbitrators designated by the other Party shall constitute the List of Arbitrators. Within thirty (30) days after the List of Arbitrators has been constituted, the Parties shall meet and negotiate in good faith to select one (1) azbitrator from the List of ArbiYrators to act as the sole azbitrator of the dispute. If the Parties fail to select an azbitrator within such 30- day period, such sole arbitrator shall be appointed from the List of Arbitrators by the Presiding Judge of the Superior Court of San Luis Obispo County, Califomia, upon written application of a Party. 11.6 Discovery for the azbitration proceedings shall be conducted by the azbitrator in accordance with the Rules, except to the extent otherwise provided in this Section. The Parties desire to provide for the expeditious resolution of disputes. Therefore, notwithstanding anything to the contrary set forth in the rules, discovery conducted under the arbitration shall be limited as follows: (i) within twenty (20) days after selection of the azbitrator, the Parties shall meet at a mutually-agreeable place and conduct a mutual exchange of documents relating to the dispute; and (ii) at such meeting, I the arbitrator shall have the right to order the production of any additional documents li from any Party and to specify the nature and extent of other discovery which the arbitrator determines is reasonably required, including, but not limited to, the taking of depositions or the obtaining of expert reports. If the arbitrator determines that expert witnesses are required, each Party shall be entitled to designate such an expert and the arbitratar may designate a third expert, as the arbitrator deems appropriate. The arbitrator shall have authority to set further discovery deadlines in order to facilitate the efficient conduct of the arbitration. 11.7 A hearing shall be conducted by the azbitrator within sixty (60) days after I, selection of the arbitrator, unless the arbitrator determines that additional time is ; reasonably required. The Parties shall submit such ]egal briefing or other statements of position as the arbitrator may request. ' 11.8 Within thirty (30) days after completion of the hearing, the arbitrator shall reach a written decision regarding the dispute and deliver the same to the Parties. Upon the request of a Pariy, the arbitrator shall issue a written opinion of findings of fact and conclusions of law. The decision of the arbitrator shall become final ten (10) days after it is delivered to the Parties and shall be binding on the Parties, conclusive and non- appealable. toszinzaeoo ouua � R74668.02 a06/21/07 -9- I 11.9 The arbitrator shall have the power and jurisdiction to resolve all disputes and order all remedies available under applicable law or equity, consistent with the provisions of this ENA, including, without limitation, ordering specific performance; provided, however, that the arbitratar shall not have the power to award punitive damages. The arbitrator shall resolve the dispute in accordance with applicable substantive laws of the State of California. 11.10 The Parties shall share equally the arbitrator's fees and costs, but each party shall bear its own attorneys' fees and other costs related to the presentation of its case. 11.11 Judgment upon the arbitration awazd may be entered in, confirmed and enforced by the Superior Court of the County of San Luis Obispo, CaliFornia. 11.12 The Parties hereby waive any right to a trial by a court or jury and agree that any dispute arising out of the interpretation or performance of this ENA shall be resolved by arbitration conducted pursuant to this Section. NOTICE: BY II�IITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE "ARBITRATION OF DISPUTES" PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR NRY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE "ARBITRATION OF DISPUTES" PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE iJNDER THE AUTHORITY OF THE CALIFORIVIA CODE OF CNIL PROCEDi.IRE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY. WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE "ARBITRATION OF DISPUTES"PROVISIONS TO NEUTRAL ARBITRATION. CITY'S INITIALS: RDA'S IIVITIALS: MASTER DEVELOPER'S INITIALS: 12. Enforced Delav: Extension of Times of Performance. In addition to specific provisions of this ENA, performance by either party hereunder shall not be deemed to be in Default, and all performance and other dates specified in this ENA shall be extended, where delays or Defaults are due to: war; insurrection; strikes; lockouts; riots; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; epidemics; quarantine restrictions; freight embargoes; lack of transportation; governmental restrictions or priority; litigation; unusually severe weather; io3ziozaeon-onnn 81)8G8.02 a06/21/07 —1�— inability to secure necessary labor, materials or tools; delays of any contractor; subcontractor or supplier; acts or omissions oF the other party; acts or failures to act of the City or RDA, or any other public or governmental agency or entity(except that the acts or failures to act of the City or RDA shall not excuse performance by the City or RDA); or any other causes beyond the control or without the fault of the party claiming an extension of time to perform. Notwithstanding anything to the contrary in this ENA, an extension of time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement oF the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) days after the commencement of the cause. Times of performance under this ENA may also be extended in writing by the mutual agreement of the Parties. The RDA's Executive Director and the City Manager shall also have the authority on behalf of the Agencies to administratively approve extensions of time not to exceed a cumulative total of one (1) year. 13. Entire Aereement. This ENA represents the entire agreement of the Parties with respect to the matters set forth herein and supersedes any and all prior written, oral, or implied agreements. This ENA may not be amended except in writing signed by all of the Parties hereunder. 14. Covenant Aeainst Discrimination. Master Developer shall not discriminate against nor segregate any person, or group of persons on account'of race, color, religion, creed, national origin, ancestry, sex, sexual preference/orientation, age, disability, medical condition, Acquired Immune Deficiency Syndrome (AIDS) — acquired or perceived, retaliation for having filed a discrimination complaint, or marital status in the performance of its obligations under this ENA. 15. Miscellaenous Provisions. I5.1 The recitals set forth in this ENA are part of this ENA between and among the Parties and shall be enforced and are deemed enforceable as any of the provisions set forth in this ENA. 15.2 The Master Developer shall cooperate and participate in any and all public outreach processes the Agencies may create to ensure timely and effective public involvment and participation in the review and consideration of the various actions the Master Developer or the Agencies are required to perform under the terms of this ENA. 15.3 In the event of third party litigation brought against Master Developer and/or the Agencies in connection with this ENA, Master Developer agrees to save, indemnify, defend, and keep the Agencies, their officers, agents, employees, engineers, and consultants for this ENA, harmless against any and all liability, claims, judgments, io3ziazavoo-ooaa N I98GR(R a0/l21/07 '1 1' costs, and demands, of any kind (including, without limitation, reasonable attorneys' fees) arising out of or related to the Agencies' approval and/or the implementation of this ENA (save and except claims or litigation arising through the willful misconduct Agencies), including but not limited to claims or lawsuits of any kind that may be filed against Master Developer or the Agencies in connection with the Preliminary Site Plan, the Project, and/or the Environmental Documents. The Master Developer will Fully reimburse Agencies for any expenditures, including reasonable attorneys' fees and costs, Agencies may incur by reason of such matters, and if requested by Agencies, will defend any such suits at the sole cost and expense of Master Developer. 15.4 Master Developer shall present the Agencies with evidence of a general liability insurance policy, in a commercially reasonable amount, naming the Agencies as additional insured by endorsement to the policy. The insurance policy shall cover all liability and responsibilities of the Master Developer under this ENA and guazantee the obligations of the Master Developer to indemnify and hold the Agencies harmless pursuant to Paragraph 143 of this ENA. The insurance procured shall be on an `bccurrence" basis, be effective at all times this ENA is in effect, and shall provide for 30 days advance written notice to be provided to Agencies prior to cancellation or modification. 15.5 No delay or omission in the exercise of any right or remedy of a non- defaulting Party on any Default shall impair such right or remedy or be construed as a waiver. Any waiver by any Party of any Default must be in writing and shall not be a waiver or any other Default concerning the same or any other provision of this ENA. 15.6 The rights and remedies of the Parties are cumulative and the exercise by any Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same Default or any other Default by another Party. 15.7 The Parties agree that time is of the essence of this ENA with respect to the deadlines set forth herein. 15.8 The text of this ENA is the product of negotiation among the Parties, each of whom had the opportunity to have it reviewed by counsel of their choice, and is not to be construed as having been prepared by any one Party. 16. Notices. 161 All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered or sent by registered or certified mail, postage prepaid, return receipt requested, delivered or sent by electronic transmission, and shall be deemed received upon the earlier of(i) the date of delivery to the address of the person to receive such notice if delivered personally or by messenger or overnight courier; (ii) three (3) business days after the date of posting by the United States Post Office if by mail; or (iii) when sent if given by electronic transmission. Any notice, 1032/0?4600-0004 81986tl.02 a06/21/07 —12— request, demand, direction, or other communication sent by electronic transmission must be confirmed within forty-eight (48) hours by letter mailed or delivered. Notices or other communications shall be addressed as follows: If to City: City of Arroyo Grande P.O. Box 550 Arroyo Grande, CA 93421 Attention: City Manager If to RDA: Arroyo Grander Redevelopment Agency P.O. Box 550 Arroyo Grande, CA 93421 Attention: Executive Director With Copies To: City Attomey City of Arroyo Grande P.O. Box 550 Arroyo Grande, CA 93421 If to Master Developer: South Valley Developers, LLC 16060 Caputo Drive, #160 Morgan Hill, CA 95037 Any Party may, by written notice to the others, designate a different address, which shall be substituted for that specified above. 1032/0?4fi00-0004 8798G8.02 a06/21/07 -13- IN WITNESS WHEREOF, the Agencies and Master Developer have signed this ENA as of the dates set forth below. CITY OF ARROYO GRANDE By: Tony Fenara, Mayor ARROYO GRANDE REDEVELOPMENT AGENCY By: Tony Ferrara, Chair ATTEST: By: Kelly Wetmore, City Clerk APPROVED AS TO FORM: By: Timothy J. Carmel, City Attorney SOUTH VALLEY DEVELOPERS, LLC By: President, By: Secretary, (Attach Notary Acknowledgements) 1032I024600.0004 819868.02 a06/21/0"/ -14- EXHIBIT "A" THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE QTY OF Anoyo Grande, COUNTY OF San Luis Obispo, STATE OF CA AND IS DESCRIBED AS FOLLOWS: PARCEL 1: Lots 1 to 10 inclusive in Block 14 and Lotr 6 and 7 in Block 15, all in Westem Addition to the Town of Arroyo Grande, in the City of Arroyo Grande, County of San Luis Obispo, State of California, acwrding to map recorded April 10, 1894 in Book B, Page 10 of Maps, in the office of the County Rxorder of said County. PARCEL 2: That portion of Alpine Street, as said street is shown on map of Western Addition to the Town of Arroyo Grande, in the City of Arroyo Grande, County of San Luis Obispo, State of California, according to map recorded April 10, 1894 in Book B, Page 10 of Maps, in the Office of the County Recorder of said County, which is bounded on the Northwest by the Northeasterly prolongation of the Northwesterly line of Lot 7 in Blak 15 of said Addition, and bounded on the Southeast by the Northwest line of Faeh Avenue as shown on said Map. ATTACHMENT2 , • �������� DEVELOPERS .1UN 1 g ZG07 June 15,2007 C��( C.�!' �!i's-.'C;d;�<:i %.:.'trt�:tij]� , con�r;�ur�rrir���v��;�;��,,�t,vr City of Arroyo Grande 214 East Branch Sueet Arroyo Grande,CA 93420 City Council Members: South Valley Developers would Gke to foxmally express interest in developing a hotel faciliry to be located at EI Camino Real and Faeh. Our experience in hotel development is complimented by a stxong background in commercial, retail, and residential. We Eeel that we have the vision, expertise, and pecsonnel to work effectively with the City of Arroyo Grande to establish a site design Eor a hotel facility that will continue to define Arroyo Grande as a destination locarion. South Valley Developers has built Hilton, Maxriott, and unbranded hotels. We ase currently consuucting a Courtyard Marriott in Paso Robles. The hotel architecture is a depaztuxe fxom the rypical Marriott prototype, and our concept was readily accepted by Mazriott and the City oE Paso Robles. The acchitectuxal style incorpoxates the wine country Eeel that the Ciry has developed. The hotel should open by the Eall of 2007 and South Valley Developers will own and operate the facility. We built, own and operate the Hilton in Santa Ctuz,which is a full-secvice Hilton hotel. We warked very hard to develop a hotel that would pxovide the gareway pxesentation that the City had xequested. Again, the architectural style is unique to the geography and locadon of the hotel. Our on-going management of the hotel has been widely recognized as exceptional. In fact, in 2002 the hotel won the Conrad Hilton Awaxd for customer service; sausEacrion, and overall performance.The same level of management would be applied to the project in Arroyo Gxande. It is an exciring opportunity to work with the City to cceate a first-class Eacility that will assist in the economic development of Arroyo Grande. We have certainly enjoyed the axea and would be thrilled to have a more permanent involvement in the community. Please let us know how we could work with the City to move forward in the selection process for this pxoject. Regards, �—/ ���� s�occ s�n�v�g South Valley Developers (408) 779-6400 16060 CAPUTO DRIVE, SUITE 160 • MORGAN HILL, CA • 95037•VHONE: 408 779-6400 • FAX: 408 779-5135 . �Velopers �'��. th va11�y Q Sou Generation �e�elopers ➢ Second ex erience rs of P design, construction, an ➢ 3p Yea � �xisition, ➢ ExcellenCe n land a q manageme � IZesiden{ial o Tract Homes es � LuXUry �Iom ➢ Commercial � Hotels � Office � ge�ail , • . _ � � • ;'. a � �« �;, _-; _ ; '.<;, r;��r.�;; � �;���,� ; ���.���< F,������ e� �z�;�-, ��`_� J j �G� *{sFu. _ � ���'�f.. ��'JJ �t���'�.���.��I��} 1�'����` ��e�,� S [ y� a 4 r'� fl•�' �� - \ . S.�S .r'�i _ ; j�— � � . � , — . _ a��,��r x���f��„� ��� � � - � �,s�,�,��,cf��l,/�yw�,,,,,�'� � ^� � � ,� �•',„,*•y--„�„""' ,�- ;; ` ,c';" , � ' �"� ������r_ �� � ��-�';� �� ,:t�t � , �r = - i;_..,. �,_ �- t � _ V"•.,y..� , a• '� � � � ;s 4�y�� MYY � ;! ♦ � �y. �Y �+ 4�l 4 . f�I��� . ��'i0l� �f t. :.. 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Sa�-tt. , � � . �_ ' .j -�`}�{� �� � �i � � - + �� ""s;t` '¢ t �'_iw_ � 1 �`� �� 1` ��� �, f �� � '^ �F I v�i t . � � .� S �y a�:� �` �� � ' — .� � a I„�Ii��l;l uP �£ _ � . , _. .� —t �- ����r ir�.�;�� �� � i1�� `\ . .-.=..�:_---=-: .�.�.--- � �� > ' _-__ ,--;:: ,- .w..-- -° ��� �- _ .�� .� �,-° ,,,��--t ��,_ �` _"""� �a �"" �..-----� . . . _ ;,; `l-�ss ,�_ �'�� - �3�,��..= - souTH: " VALLEY � , � . _� —' _-_" - ' 1 11 .a. pRROy� �� cP � INCOHPORnTE� 92 " � � MEMORANDUM ' � JULY 10, 19N * , c4��FORN�P I TO: CITY COUNCIL FROM: DON SPAGNOLO, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER � SUBJECT: CONSIDERATION OF A CENTER LEFT TURN LANE ON EAST GRAND AVENUE BETWEEN HALCYON ROAD AND EL CAMINO REAL DATE: JUNE 26, 2007 RECOMMENDATION: The Traffic Commission recommends the City Council approve Option A for the proposed striping revisions on East Grand Avenue between Halcyon Road and EI Camino Real for a center left turn lane. FUNDING: The microsurfacing and striping project for East Grand Avenue is included in the Capital Improvement Program budget for the proposed FY 2007-08 budget. The budget includes $86,000 from initial local sales tax revenue in FY 2006-07 and an additional proposed $40,000 in local sales tax funds proposed in FY 2007-08. The proposed striping revisions will not add to the original cost estimates for the project. DISCUSSION: The Capital Improvement Program includes a project to microsurface East Grand Avenue between Halcyon Road and EI Camino Real. The work is being performed in accordance with the schedule listed in the Pavement Management Program. The microsurfacing will cover the existing striping and it provides an opportunity to perform improvements to the striping configuration. Traffic circulation, roadway widths, sight distance, driveway access, provisions for bike lanes and accident history were reviewed to develop the proposed striping improvements. Most of the accidents along this segment of East Grand Avenue have involved rear end collisions. To address accident conditions, the main element of the restriping plan wili provide a center turn lane from Rena Street and Oak Street to connect to the existing left turn lane between Oak Street and EI Camino Real. East Grand Avenue between 101 and Halcyon Road has 80' right-of-way and is 62 feet in : width from curb to curb except one block between Bell Street and North Alpine Street (adjacent to the gas station) where the width is only 58 feet. The narrower section is the result of a wider driveway and sidewalk on the north side of the street only. ____._—'_-- —�_,—____ _. _._ ' _ __ . - . CITY COUNCIL CONSIDERATION OF A CENTER TURN LANE ON EAST GRAND AVENUE BETWEEN HALCYON ROAD AND EL CAMINO REAL JUNE 26, 2007 PAGE 2 I Two options are being proposed (Attachment No. 1)to accommodate the center turn lane: �' Option A. Center left turn lane with parking on north and south sides On the north side, four of the ten existing parking spaces will need to be removed and one of six existing parking spaces on the south side. The proposed lane configuration will be shifted to accommodate the parking spaces that will remain to provide parking in areas that do not have on-site parking. This will match the existing lane configuration, which already shifts between Oak Street and EI Camino Real. The proposed shift will be accomplished in a similar manner. Pros: . Maximizes the number of existing parking spaces maintained (provides 12 on-street parking spaces) � . Provides for adequate vehicle lane widths � Cons: . Does not provide for a striped bike lane, but would be signed as a bike route i • Travel lanes would be shifted closer to the curb where there is no parking, I which may require slower entry speeds for right turns into driveways Option A is recommended in order to increase safety by the addition of the center turn I lane, while maintaining adequate lane widths and some parking. Staff is concerned with potential loss of parking given complaints received from neighborhood residents regarding an already deficient number of available parking spaces. Future widening could be , proposed to add bike lanes at that time. Bike lanes could be added with restriping of four � blocks when the sidewalk and driveways in the block between Bell Street and Alpine Street ' are reconstructed in the future. I, Option B. Bike lane with 11-foot travel lanes on both sides except for mid-block This option would eliminate all on-street parking and create 4 foot wide shoulder bike lanes , on both sides of the street except one block on the north side where the street narrows. Class II bike lanes are separate dedicated bicycle lanes four feet in width and East Grand Avenue is the top priority street segment proposed in the 2006 Bike and Pedestrian Enhancement Plan, which was adopted by the Planning Commission and Council as part of the Circulation Element Update of the General Plan. In order to provide for a separately striped lane, all on-street parking would need to be eliminated, similar to the roadway segment from EI Camino Real to Oak Street. Eliminating all parking would provide room for a striped Class II bike lane on both sides except on the north side of the one constrained block between Bell Street and Alpine Street due to the narrow street width. U:\2007\City Council\June\East Grand Striping Revisions 11062607.doc _ _ __ CITY COUNCIL CONSIDERATION OF A CENTER TURN LANE ON EAST GRAND AVENUE BETWEEN HALCYON ROAD AND EL CAMINO REAL JUNE 26, 2007 PAGE 3 i Pros: • Provides bike lanes consistent with the City's General Plan Circulation � Element . Increases traffic safety by reduced parking friction Cons: I • Eliminates all on-street parking (loss of 12 spaces versus Option A) • No bike lane for one block on north side between Bell Street and North Alpine Street (adjacent to gas station) until sidewalk / driveway could be reconstructed, which is estimated to cost $60,000 - $80,000 • No bike lane on north side between North Rena and Halcyon without modification of raised median island. The Community Development Department has recommended Option B in order to meet � bike lane policies of the City's General Plan. Some of the properties impacted by lack of , parking are existing nonconforming uses. The six spaces proposed on the south side of � East Grand in the block between Rena Street and Alpine Street would primarily serve the commercial building at the corner of Rena Street, with eight on-street spaces on the side street. I On the north side of East Grand Avenue in the block between Oak Street and Bell Street where six on-street spaces would be eliminated by Option B, there are two single family dwellings at 516 and 520 East Grand Avenue. Each dwelling has a driveway and single car garage, but would lose on-street guest or supplemental resident parking. The house at the corner, 524 East Grand Avenue, would also lose on-street parking on East Grand I Avenue but has five spaces along the east side of Bell Street to serve the small existing business. W hile several other homes and businesses along other blocks of East Grand Avenue are non-conforming with regard to required off-street parking standards, they generally have side street or some off-street parking for basic resident and/or customer use. Staff could pursue alternatives for increasing off-site parking in the future. � On March 26, 2007, proposed striping revisions were presented to the Traffic Commission ; (see Attachment No. 2). There was consensus among the Commissioners that the new ; center left turn lane is critical for more efficient left turn movements and in helping to i prevent rear end collisions. Parking is recommended by Public Works staff to remain on � the north side between Oak Street and Bell Street and on the south side between Alpine i Street and Rena Street based on input by the'business tenants and property owners. i i U:\2007\Ciry Council\June\East Grand SViping Revisions 11062607.doc 1 i . �_ 1 CITY COUNCIL CONSIDERATION OF A CENTER TURN LANE ON EAST GRAND AVENUE BETWEEN HALCYON ROAD AND EL CAMINO REAC , JUNE 26, 2007 PAGE 4 ! The Commission also suggested the placement of "Bike Route" signs as bicyclists may continue to use East Grand Avenue instead of the alternate route on Cornwall Avenue. However, to address the need for bikes in accordance with the General Plan, Public Works recommends that all bike traffic be directed to an alternate route to avoid this section of East Grand Avenue. Bikes traveling from the east could turn north onto EI Camino Real and then east onto Cornwall Avenue, parallel to East Grand Avenue, but would have to cross traffic and detourtwo blocks to travel eastbound. Community Development opposes this rerouting due to the unlikelihood that cyclists would utilize the alternate route. On April 30, 2007, the City hosted a Town Hall Meeting with tenants and property owners on this section of East Grand Avenue to review the revised striping configurations. Input was received from those in attendance (see Attachment No. 3). All the attendees were in favor of the proposed center left turn lane, but there were concerns regarding the loss of parking. Two businesses on the south side of East Grand Avenue at South Rena Street were especially concerned about any loss of parking, while one favored reduction or elimination of parking to facilitate driveway access. Notification of the striping revisions went out to property owners and tenants on East Grand Avenue from Halcyon Road to EI Camino Real. On June 18, 2007 the Traffic Commission reviewed both options and recommended the Council approve Option A. The restriping will be performed as part of the microsurfacing project. The total budget in the Capital Improvement Program is in the amount of$126,000.00. This includes funds for design, construction, construction contingencies, contract administration and testing. A future project could be developed to provide additional roadway width, including the section on the north side between Bell Street and Alpine Street at an estimated cost of$60,000 - $80,000. In order to complete the resurfacing project, it is recommended that East Grand Avenue be restriped to provide for a center left-turn lane at Rena Street and that input be provided as to the on street parking and bike lanes. The contract time for the microsurFacing and striping project is specified at 30 calendar days. Work is expected to be pertormed in August and September 2007. U:\2007\City Council\June\East Grand Striping Revisions 11062607.doc CITY COUNCIL CONSIDERATION OF A CENTER TURN LANE ON EAST GRAND AVENUE BETWEEN HALCYON ROAD AND EL CAMINO REAL ; JUNE 26, 2007 PAGE 5 ALTERNATIVES: The following alternatives are provided for the Commission's consideration: • Recommend approval of the restriping plan identified in Option A; • Recommend approval of the restriping plan identified in Option B; • Modify as appropriate and advise staff accordingly; or I • Provide direction to staff. Attachments: 1. Proposed East Grand Avenue Striping Plan (available for review at Engineering Office) i 2. Excerpt from Traffic Commission Draft Meeting Minutes June 18, 2007 3. Town Hall Meeting Minutes U:\2007\City.CouncilUune\East Grand Striping Revisions 11062607.doc Attachment 1 THE EAST GRAND AVENUE STRIPING PLAN IS AVAILABLE FOR PUBLIC REVIEW AT CITY HALL IN THE PUBLIC WORKS/ENGINEERING DEPARTMENT .-_ _ - _- i Attachment2 ' TRAFFIC COMMISSION - DRAFT (EXCERPT) JUNE 18, 2007 ARROYO GRANDE, CALIFORNIA 7:00 PM REVIEW OF THE.EAST GRAND AVENUE STRIPING REVISION OPTIONS � 4 Mr. Spagnolo presented the proposed striping revision on East Grand Avenue between Halcyon Road and EI Camino Real for a center turn lane. He indicated that this item came before the Commission on March 26, 2007. He said two options are being proposed to accommodate the center turn lane: Option A creates a center turn lane with � parking on north and south sides. He said the advantages of this option are that it maximizes the number of existing parking spaces (12 on-street parking spaces). Provides for adequate vehicle lane widths. He said the disadvantage is it does not provide for a striped bike lane, but would be signed as a bike route. Travel lanes would I be shifted closer to the curb where there is no parking, which may require slower entry �, speeds for right turns into driveways. Mr. Spagnolo presented Option B. Bike lane with 11-foot travel lanes on both sides except for mid-block. The advantage is that it provides bike lanes consistent with the City's General Plan. He said the disadVantage is that it eliminates all on-street parking (loss of 12 spaces versus Option A). No bike lane for one block on north side between Bell Street and North Alpine Street until sidewalk/driveway could be reconstructed, which is estimated to cost $60,000 - $80,000. No bike lane on north side between North Rena Street and Halcyon Road. Commissioner Ross asked if the curb was moved back was this against City policy. Mr. I Spagnolo indicated no. Community Development Director Strong said there are no defined bike lanes. He said between Elm Street and Halcyon it would be easy to add a bike lane. The advantage of having a bike lane is there is a shoulder, and creates better visibility. He indicated most of the businesses have on site parking. Mr. Strong suggested that the Commission recommend to the City Council approval of the restriping plan identified in Option B. The meeting was opened to the public for comment: The following business owners/tenants were against removal of parking on East Grand Avenue and are in favor of Option A: Ronald Gould, owner of the building at East Grand Avenue and Rena Street, Tom Girard, 723 East Grand Avenue, Tom Kornmaier, hotel owner, 617 East Grand Avenue, Vic Buccola, owner of the building at East Grand Avenue and Rena Street, Jessica Balseiro, 721 East Grand Avenue. The following business owners/tenants spoke in favor of Option B: Fred Pope, 715 and 717 East Grand Avenue. He said it is difficult for vehicles to turn in and out of the driveway adjacent to his building and he would be in favor of elimination parking. The following comments were provided by the Commission: Commissioner Carson -The City needs the center turn lane -Parking is the big difference TRAFFIC COMMISSION - DRAFT (EXCERPT) JUNE 18, 2007 ARROYO GRANDE, CALIFORNIA 7:00 PM Commissioner Borda and Brownlee ' -Does not feel that the General Plan has to be followed to the letter. -Does not feel this area will be safe for bicyclist -If we went with Option B we would put a lot of people out of business -In favor of Option A I -Commissioner Couser -Asked if the concern for the parking space at 617 East Grand Avenue will go away with both Plan A and B. -The center turn lanes are critical for the roadway -Excessive speed is an enforcement problem -Like Class III bike lane -In favor of Option A -Commissioner Ross -Appreciates the amount of work done by the City for the General Plan -In favor of Option A After discussion, it was moved by Commissioner Borda, seconded by Commissioner � Brownlee to recommend the City Council approve the restriping plan identified in Option ' A. Upon roll call vote: AYES: Commissioners Borda, Brownlee, Ross and Couser. NOES: Commissioner Carson. _ , Attachment 3 THE U: ! GF TOWN HALL MEETING - � ° � � • -�.° Subject: East Grand Avenue Restriping Revisions ,- ;� �\;, _ �ocation: City Council Chambers `'�: , '� ��I�� • Date: April 30, 2007, 6:00 PM � ' \` 02[SYG ��- ' Present: City of Arroyo Grande City Engineer - Don Spagnolo Assistant City Engineer- Mike Linn Community Development Director— Rob Strong Residents/Businesses (see attached sign-in sheet) Written by: Mike Linn Meeting Objective The Public Works Department has developed preliminary plans and specifications to resurface and stripe East Grand Avenue between Halcyon Road and EI Camino Real. The revisions were prompted by citizen concerns and the accident history for this roadway segment, which includes a number of rear-end collisions stemming from the lack of protected turning lanes. The Town Hall Meeting allows citizens to review the concepts and provide input to the project design. The revisions are being proposed at this time as the Public Works Department wili resurtace this segment of East Grand Avenue later this summer. Staff will present the striping revisions to the City Councii at their meeting on May 22nd Meeting Summary Mr. Spagnolo explained the restriping configurations as foilows: ♦ The restriping will provide for two lanes in each direction and a center left turn lane. ♦ The majority of the on-street parking will remain but adding the center left turn lane does cause three parking piaces on the north side and one space on the south side to be eliminated. ♦ A continuous center left turn lane wiii provide easier access to business on both the north and south sides of East Grand Avenue. ♦ A turn pocket will be added for eastbound East Grand Avenue to access North Rena Street. "Keep Clear" pavement markings will be placed in the intersection North Rena / East Grand Averue intersection. i Mr. Strong stated that his preferred striping configuration would have the parking remain on the north side of the street to avoid having to perform the "graduat shift" of traffic. He also believed that residences on the north side of the street require the parking and many businesses have no other parking available. Mr Strong stated that his real preference would be to e�iminate ALL parking to facilitate the placement of bike lanes on each side of the roadway. The citizens/business owners provided the following comments: ALL in attendance were in favor of providing the center turn lane, as it would help avoid accidents and help the businesses. Tom Kornmaier, Hotel Owner, 617 East Grand Avenue ♦ Removing parking on the south side of the roadway will shift the traffic closer to his building. This will create more noise and awaken his guests. ♦ Vehicies routinely travel more than 50 MPH at night. Believes the roadway will become more dangerous. Tom Girard, 723 Grand Avenue: ♦ The lack of attendance at the meeting stems partiy from the number of vacant businesses on the north side of the roadway. Fred and Linda Pope, 715 East Grand Avenue: ♦ Believes vehicles will travel faster if you remove the parking as the parked cars help to visually narrow the lanes. Believes more businesses will close their doors as a result. ♦ The 35 MPH speed limit is too fast and should be downwardly adjusted to match the 25 MPH speed limit through the Village. ♦ Vehicles in the parking space directly west of his driveway obscures his vision when he tries to enter traffic and the parking should be prohibited with red curb. Jessica Balsiero, 721 East Grand Avenue: e Disagreed with her neighbor Tom Girard and requested that the parking spaces remain on the south side of the roadway adjacent to her business. ♦ Suggested the placement of stop signs at Rena Street and South Alpine to slow traffic and protect the crosswalk at South Alpine. Mr. Spagnolo provided the following in response to the comments: ♦ He explained the procedure that the City follows to determine and establish the posted speed limits. Mr. Strong added that any effects of striping revisions on the speed limit would not be known until after the striping is placed. ♦ The placement of stop signs for speed control is discouraged by major traffic engineering organizations based on numerous studies. The City has researched the placement of in-pavement lights for the crosswalks on East Grand Avenue. The number of pedestrians appears to be minimal and the City may consider removal of the crosswalk. Conclusion Mr. Strong emphasized that no alternative will please everyone and that the Council will need to hear ail the concerns to make an informed decision. Nir. Strong encouraged all to write their concerns to the City Councii prior to the May 22"a meeting. Mr. Strong will also present the restriping revisions to the East Grand Business Association for their input. Mr. Spagnolo stated that staff would compile the citizen and business owner comments and incorporate them into a staff report for presentation to the City Council on May 22, 2007. The meeting concluded at 7:15 PM. I