Minutes 2001-02-13
MINUTES
REGULAR MEETING OF THE CITY COUNCIUREDEVELOPMENT AGENCY
TUESDAY, FEBRUARY 13, 2001
COUNCIL CHAMBERS, 215 E. BRANCH STREET
ARROYO GRANDE, CALIFORNIA
1. CALL TO ORDER
Mayor Lady called the Regular City Council meeting to order at 7:05 p.m.
2. ROLL CALL
City Council: Council Members Runels, Dickens, Lubin, Mayor Pro Tem Ferrara,
and Mayor Lady were present.
RDA: Board Members Runels, Dickens, Lubin, Vice Chair Ferrara, and
Chair Lady were present.
City Staff Present: City Manager Adams; City Attorney Carmel; Director of
Administrative Services Wetmore; Director of Financial Services
Snodgrass; Community Development Director McCants; Director of
Public Works Spagnolo; Associate Planner Heffernon, and Chief
Building Inspector Schmidt.
3. FLAG SALUTE
Members of Boy Scout Troop 70 led the Flag Salute.
4. INVOCATION
Pastor Paul Bautts, Bethel Baptist Church, Arroyo Grande, delivered the invocation.
5. SPECIAL PRESENTATIONS
5.a. Certificates of Special Recognition for Outgoing Commissioners
Mayor Lady presented certificates of special recognition to outgoing commissioners
Larry Greene, Keith Storton, Thomas Owen, and Joseph Taylor and thanked them for
their years of service to the City. Outgoing commissioners Martin London, Nanci
Parker, Leslie Brown, Bill Borgman, Betty Branch, and former City Treasurer JoAnn
Wizemann were not present to receive their certificates; however, Mayor Lady
acknowledged them and expressed appreciation for their years of service to the City.
5.a. Proclamation - Spay Day USA
Mayor Lady presented a proclamation to Barbara Wilkins of the Animal Rescue
Coalition Humane Society proclaiming February 27, 2001 as Spay Day USA.
6. AGENDA REVIEW
None.
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FEBRUARY 13, 2001
PAGE 2
6.a. Resolutions and Ordinances Read in Title Only
Council Member Runels moved, Council Member Dickens seconded, and the motion
passed unanimously that aU resolutions and ordinances presented at the meeting shall
be read in title only and aU further reading be waived.
7. CITIZENS'INPUT. COMMENTS. AND SUGGESTIONS
Fred Sweeney, 432 Greenwood, presented the City Council with a petition entitled
"Neighborhood Committee to Make Branch Mill Road Safe" signed by approximately 75
residents. Mr. Sweeney expressed concerns regarding the condition of Branch Mill
Road. a nearby embankment, and various trees and requested that the City address the
problems.
Carter Hooker, 380 Spanish Moss Lane, requested that the City provide more
communication to the public with regard to the status of City projects and when items
are scheduled to be considered. He referred specifically to the progress of Rancho
Grande Park and expressed an interest in the status of the park's development.
8. CONSENT AGENDA
Council Member Lubin requested Item 8.e. be pulled for discussion.
Council Member Dickens moved and Council Member Runels seconded the motion to
approve Consent Agenda Items 8.a. through 8.h., with the exception of Item 8.e., with
the recommended courses of action:
8.a. Cash Disbursement Ratification.
Action: Approved the listing of cash disbursements for the period January 16,
2001 through January 31,2001.
8.b. Statement of Investment Deposits.
Action: Received and filed the report of current investment deposits as of
January 31,2001.
8.c. Adoption of Ordinance Establishing a Mandatory Construction and
Demolition Debris Recycling Program.
Action: 1) Adopted Ordinance No. 523 C.S. amending Title 6, Chapter 4 of the
Arroyo Grande Municipal Code to establish a mandatory construction and
demolition debris recycling program; and 2) Directed the Director of
Administrative Services to file a Notice of Determination with the County
Recorder.
8.d. Minutes of the Special Meeting of January 23, 2001 and Regular City
Council/Redevelopment Agency Meeting of January 23, 2001.
Action: Approved minutes as submitted.
8.1. Fair Oaks AvenuelTally Ho Road Overlay Project, Project No. PW-2000-2,
Progress Payment No.6 and Notice of Completion.
Action: 1) Authorized progress payment in the amount of $22,379.40 to R. Burke
Corporation; 2) Directed staff to file a Notice of Completion; and 3) Authorized
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CITY COUNCIL MINUTES
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PAGE 3
release of the retention of $75,020.65, thirty-five days after the Notice of
Completion has been recorded, if no liens have been filed.
8.g. The Scenic Creekside Walk Through the Historic Village of Arroyo Grande,
Phase II, Progress Payment No.1.
Action: Authorized progress payment in the amount of $27,988 to R. Simons
Company, Inc.
8.h. Authorization to Issue Request For Proposals (RFPs): Traffic Way Bridge
Barrier Rail Replacement Project.
Action: Authorized distribution of the Request For Proposal (RFP) for design
services to qualified consultants.
AYES: Dickens, Runels, Lubin, Ferrara, Lady
NOES: None
ABSENT: None
There being 5 AYES and 0 NOES, the motion is hereby declared to be passed.
8.e. Approval of Agreement to Purchase Fuel Through Lucia Mar Unified School
District.
Recommended Action: Authorize the City Manager to execute the Agreement
between the City and LMUSD to purchase fuel.
Council Member Lubin asked for clarification on the gasoline rate structure; whether the
negotiated price is below the retail market; whether the rate could be decreased further
based on volume; and whether there had been an open bid process.
Director Spagnolo explained that gasoline would be purchased at a rate of .045ct over
Oil Producer Industry Standard which was below retail; that the volume would have to
increase substantially to receive a further reduction; and that LMUSD had conducted an
open bid process.
In response to a question posed by Council Member RuneJs, Director Spagnolo stated
that gasoline was delivered directly to the City's recently replaced state-of-the-art
underground fuel tanks.
Mayor Pro Tem Ferrara asked for clarification on whether the gasoline was free of
MTBEs and requested that staff look into the matter.
Council Member Lubin moved to authorize the City Manager to execute the Agreement
between the City and LMUSD to purchase fuel. Council Member Dickens seconded the
motion, and on the following roll-call vote, to wit:
AYES: Lubin, Dickens, Runels, Ferrara, Lady
NOES: None
ABSENT: None
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FEBRUARY 13, 2001
PAGE 4
There being 5 AYES and 0 NOES, the motion is hereby declared to be passed.
9. PUBLIC HEARINGS
9.a. Consideration of Resolution Increasing Lopez Contract Charges.
Director of Financial Services Snodgrass presented the staff report. She explained that
increased charges are required in order to meet costs associated with State mandated
Dam remediation, operations and maintenance, and capital outlay associated with
Flood Control Zone 3 and the Lopez Dam. She explained that the City has not
increased the rates since 1992 and stated that the revenues in the Lopez Fund are
insufficient to meet future debt service costs. Staff recommended the Council adopt a
Resolution increasing Lopez bi-monthly contract charges over a four-year period,
beginning on April 1 , 2001.
Council Member Lubin asked why the City of Arroyo Grande's charges would be higher
than those of the other South County cities.
Director Snodgrass responded that the City of Arroyo Grande has assumed over fifty
percent (50%) of the Lopez Dam cost and Pismo Beach and Grover Beach have each
assumed seventeen percent (17%). She further explained that the other cities could pay
their shares through property tax revenues and other reserves that are available.
Further Council questions and discussion included whether there was a method to
borrow from other City funds in order to level out the increases over time; clarification
that certain funds in the budget are being invested to cover costs for specific projects;
clarification that the Lopez charge is billed every two months on the utility bill;
cJarification that the Lopez contract charge is separate from the water usage rate; that
the operating and maintenance costs on the water treatment plant have increased and
the City has been using reserve funds to support those costs; and the need for
upgrading the water treatment plant in the next future. Following further discussion,
Council Members recognized that all of the utility costs were rising and acknowledged
those citizens who were on fixed incomes. Council asked staff whether there were any
programs available that provided financial assistance to low-income seniors for their
utility bills.
Mayor Lady opened the public hearing.
Carter Hooker, 380 Spanish Moss Lane, asked if there was a committee to track the
costs and the progress of the remediation project.
Ray Abdener, 955 Via Las Aguilas, asked for clarification when the increase would be
effective, and asked if the rates would. be increased for developers to help cover the
costs.
CITY COUNCIL MINUTES
FEBRUARY 13, 2001
PAGE 5
Director Snodgrass replied that the increase would be implemented April 1, 2001;
however, it would not appear on customer's bills until June 1 st. She explained that
developers were not responsible for these costs. She explained the development impact
fees that were charged to developers.
Hearing no further public comments, Mayor Lady closed the public hearing.
Council Member Runels moved to adopt a resolution increasing Lopez bi-monthly
contract charges as follows: $9.50 effective April 1, 2001; $4.50 effective April 1 , 2002;
$4.00 effective April 1, 2003; and $4.00 effective April 1, 2004. Council Member Lubin
seconded the motion, and on the following roll call-vote, to wit:
AYES: Runels, Lubin, Dickens, Ferrara, Lady
NOES: None
ABSENT: None
There being 5 A YES and 0 NOES, the motion is hereby declared to be passed.
9.b. Proposed Ordinance Repealing or Amending Obsolete, Superseded, or
Unconstitutional Ordinances and Portions Thereof in the City of Arroyo
Grande Municipal Code.
Director of Administrative Services Wetmore presented the staff report. She explained
that a comprehensive legal analysis had been conducted by Book Publishing Company
to identify problems and discrepancies in the Municipal Code. She stated the Code was
reviewed for ambiguities, inaccuracies, duplications, and compliance with current State
and Federal statutes. Staff recommended the Council introduce an Ordinance
repealing or amending obsolete, superceded, and/or unconstitutional ordinances and
portions thereof in the Arroyo Grande Municipal Code.
Council Member Dickens referred to duplicate language in Section 2, I. of the proposed
ordinance and requested a grammatical correction be made. He referred to Section 2,
Q. and stated he had spoken to the Chief of Police about bicycle licensing requirements
and inquired whether the provision should be repealed.
Director Wetmore explained that the City did not have jurisdiction for issuing bicycle
licenses and the Code was amended to add a provision that the issue was subject to
State Law and pursuant to Vehicle Code Section 39001.
Council Member Dickens referred to Section 2, W. regarding political signs and asked
how the standard that signs be no larger than sixteen (16) square feet was determined.
Director Wetmore replied that the Planning Commission might have established and
approved the standard as part 'of the Planned Sign Program.
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Council Member Lubin asked if the Department Directors and the City Attorney had
reviewed the report and recommendations.
Director Wetmore responded that the Department Directors reviewed sections relevant
to their operations and the City Attorney had extensively reviewed the report and
proposed Ordinance.
Mayor Lady opened the public hearing, and upon hearing no comments closed the
public hearing.
Mayor Pro Tem Ferrara moved to introduce an Ordinance repealing or amending
obsolete, superseded, or unconstitutional ordinances and portions thereof in the City of
Arroyo Grande Municipal Code. Council Member Dickens seconded the motion, and on
the following roll-call vote, to wit:
AYES: Ferrara, Dickens, Runels, Lubin, Lady
NOES: None
ABSENT: None
There being 5 AYES and 0 NOES, the motion is hereby declared to be passed.
10. CONTINUED BUSINESS
10.a. Conditional Use Permit Case No. 00-015; Horizon Senior Housing; 579
Camino Mercado.
Community Development Director McCants presented the staff report. He stated that at
the January 9, 2001 meeting, the Council took tentative action to deny Conditional Use
Permit Case No. 00-015 and directed staff to return to Council with a Resolution
containing the findings supporting the denial. Staff recommended the Council adopt the
Resolution Denying Conditional Use Permit Case No. 00-015.
Council Member Lubin asked questions regarding the findings in the Resolution;
clarification regarding the City's regulations for providing affordable housing or paying
an affordable housing in-lieu fee; clarification of the City's development standard for
maximum building height limit in the Professional Commercial District; the definition of
surrounding development as it pertains to the proposed structure impairing the integrity
and character of the neighborhood; whether the Americans with Disabilities Act
standards were taken into consideration for pedestrian access from the project to the
street; and whether updated traffic study data was available.
Council Member Dickens referred to the discussion regarding finding #3 and requested
that staff correct a mistake in the proposed resolution to state that the proposed
structure exceeds the two-stOry maximum height limit; as specified in the Code. He
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CITY COUNCIL MINUTES
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PAGE 7
then referred to finding #6 and commented that it was not known if the project would
adversely impact traffic since the City did not have updated traffic data available.
Mayor Pro Tem Ferrara asked for clarification on whether it was more common for
developers to pay in-lieu fees as opposed to setting aside affordable housing units
within their project. Director McCants replied that had been true in most cases over the
last year and a half.
Mayor Pro Tem Ferrara referred to finding #4, relating to the character, building height,
density, and mass issues and stated for clarification that the Council had attempted to
show consistency with how the General Plan interprets these issues. He commented
that the size of the project was over 100,000 square feet Jocated on the side of a hill,
which is about the size of Wal-Mart. He stated that there was an issue in the past about
the appropriateness of that project in terms of its relevancy or consistency with the
General Plan. He stated that he did not want to repeat that mistake in terms of the
interpretation of the General Plan. He referred to finding #5 and clarified the distance
and steepness of the grade from the street to the project and expressed concerns about
accessibility for seniors; and with respect to finding #6, he clarified that traffic data used
for this project was dated material from over 20 years ago compiled from data relating to
facilities located in Oregon.
Mayor Lady opened the discussion for public comments.
The following persons spoke in support of the proiect:
Ken Bornholdt, Law Offices of Walter and Bornholdt, submitted a letter for the record
stating there was no substantial evidence in the record to support the proposed findings
to deny the project..
Steven Puglisi, Project Architect and representative for Horizon Senior Housing, spoke
in support of the project, and also submitted a letter from Mr. Fred Wilkie in response to
finding #5 regarding pedestrian access on the property.
Keith Higgins, Higgins and Associates, submitted a letter and supplemental information
in response to questions raised previously regarding the traffic impacts associated with
the project. Council questions of Mr. Higgins and discussion ensued regarding dates of
the traffic studies; interpretation of traffic data as it relates to the project; unknown traffic
generation from the project not only from residents, but staff, caregivers, visitors, and
delivery vehicles; and interpretation of the City's Level of Service Policy.
Earl Paulding, 232 La Cresta, spoke in favor of the project and stated there were many
seniors in the audience in support of the project. He stated that California did not have
enough senior living facilities.
Rosemary Torres spoke in support of the project.
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Tom Hogan, former Director of Wyndam Residence on Elm Street, addressed the
staffing issue; amenities; the size of the structure, the demand for larger units; stated
that the average age of residents was 80-85 years; and explained the difference
between assisted living facilities and congregate care living facilities.
Yolanda Alarcia, 311 N. Alpine, addressed concerns about traffic and commented that
most seniors do not go out at night.
George Moylan, representing the Housing Authority of the City of San Luis Obispo,
stated there was a tremendous need for senior housing and affordable senior housing in
the County and he could not think of any other use that would generate less traffic.
Chris Skiff, representative for Horizon Senior Housing, explained that his previous
statements regarding the monthJy cost of the units were in error. He stated this project
would be comparable to other projects in the County and would start at $1,OOO/month
per unit. In response to a question from Mayor Pro Tem Ferrara regarding the project
providing a senior center, Mr. Skiff replied that discussions were ongoing to include a
senior center in the project; however, the project had not been modified at this time. He
explained the amenities that the project would include such as meals, maid service, and
transportation. He said that residents at this facility would have the option to pay for
home health services should they need them.
Stephanie Painter, 541 Mesa View Drive, stated there was a need in the community for
senior housing.
Frank Lindner spoke in support of the project and stated this would be a stunning
achievement for the City.
Margaret Ruthias spoke in support of the project.
Kathleen Schaffer, 353 Mesquite Lane, spoke in support of the project.
The followina Dersons sDoke in ODDosition to the Droiect:
Ray Abdener, 955 Via Las Aguilas, spoke of the current traffic pattern at Camino
Mercado and suggested installing a signal at the intersection at W. Branch Street. He
responded to the issue of mass and density and expressed concern about the impact to
the homes near the project.
Theresa Brown, RN., 468 Campana Place, expressed concerns about seniors getting
out to walk around the steep property for exercise.
Hearing no further public comments, Mayor Lady brought the discussion back to the
Council for consideration.
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CITY COUNCIL MINUTES
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Council Member Runels stated his support for the project.
Council Member Lubin said there appeared to be a need for this type of project and
acknowledged Mr. Moylan's comments regarding the need for all types of senior
housing. He addressed the traffic study data and stated he felt there would be minimal
adverse traffic impacts resulting from the project. He stated that if the facility was going
to provide residents transportation from the site, he was not as concerned about the
issue of the driveway. He stated his support for the project.
Council Member Dickens reviewed the proposed resolution and supported each finding
based on his understanding of interpretation of the General Plan. He referred to the
Housing Element, section 3.3, which addresses affordable housing needs for seniors.
He said the project did not provide reasonable affordable senior housing for the large
population of fixed, limited income seniors in the City. He spoke of the small town, rural
character of the City as a whole and agreed that the project was not consistent with the
goals and policies of the Land Use Element of the General Plan due to its mass and
density. He stated he could not compare this project to the Five Cities Center because
that project was not consistent with the City's General Plan. He supported finding #3
because the structure exceeds the two-story maximum height limit as designated in the
Development Code. With regard to finding #4, he agreed that the project was out of
scale and incompatible with the Kolbo project and surrounding residential homes.
Council Member Dickens stated the project, as proposed, does not adequately mitigate
mobility issues on the site for seniors. He spoke of the ambiguity of the traffic data used
and stated that at this time, he supported the finding that increased trips resulting from
the project would adversely impact traffic. In conclusion, he stated it was important for
the City to address all of the senior housing needs, including affordable senior housing
units; there is a need to optimize the minimal land that is left in the City; that the project
would have an adverse visual impact, and referred to the Open Space and
Conservation Element, section 4, which addresses visual impacts of developing on
ridgelines; and that there is a need for adjacent access to public transportation. Council
Member Dickens recognized the applicant's willingness and efforts to investigate
methods of accommodating affordable senior housing, and the incorporation of a senior
activity facility; however, he believed the impacts of the total project outweigh these
proposals. He stated he would uphold his previous position to deny the project.
Mayor Pro Tem Ferrara agreed with concerns addressed by Council Member Dickens
and added emphasis on the unsuitability of the proposed site. He acknowledged the
applicant's previous projects and agreed that there was a need for this type of project.
He said the question was whether this was the right site for this facility in terms of its
size, scale, and physical location. He stated he did not think so and expressed serious
concerns with respect to the steepness of the topography. He stated that the safety
issues couJd not be mitigated. He commented that there were a number of
opportunities in the City for this project to be placed. He encouraged the applicant to
seek out alternative sites. He addressed comments made by Mr. Higgins regarding
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CITY COUNCIL MINUTES
FEBRUARY 13, 2001
PAGE 10
traffic generation and expressed concerns about the reliability of the data. Mayor Pro
Tem Ferrara said he could not support the project as proposed.
Mayor Lady expressed concerns regarding the size, scale and location of the project,
traffic, access, affordability, density and GeneraJ PJan consistency. He stated he
supported the findings. He said there were many issues raised and proposed
continuing the item in order to conduct further public hearings and gather information to
address the stated concerns.
Mayor Pro Tem Ferrara moved to adopt a Resolution denying Conditional Use Permit
Case No. 00-015, applied for by Horizon Senior Housing, located at 597 Camino
Mercado. Council Member Dickens seconded the motion, and on the following roll-call
vote to wit:
AYES: Ferrara, Dickens, Lady
NOES: RuneJs, Lubin
ABSENT: None
There being 3 AYES and 2 NOES, the motion is hereby declared to be passed.
11. NEW BUSINESS
11.a. Fiscal Year 2000-01 Mid-Year Budget Report.
Director of Financial Services Snodgrass presented the staff report. Staff
recommended the Council/RDA: 1 ) Approve detailed budget adjustments and
recommendations as shown in Schedule B; 2) Approve Schedules A through E included
in the Mid-Year Budget Status Report; and 3) Approve requests for additional
appropriations in the General Fund.
Mayor Lady opened up the item for public comment, and upon hearing none, brought
the issue back to the Council for consideration.
Council/Board Member Lubin moved to approye staff's recommendations.
Council/Board Member Runels seconded the motion, and on the following roll-call vote,
to wit:
Council
AYES: Lubin, Runels, Dickens, Ferrara, Lady
NOES: None
ABSENT: None
CITY COUNCIL MINUTES
FEBRUARY 13, 2001
PAGE 11
RDA
AYES: Lubin, Runels, Dickens, Ferrara, Lady
NOES: None
ABSENT: None
There being 5 AYES and 0 NOES, the motion is hereby declared to be passed.
12. COUNCIL COMMUNICATIONS
- Mayor Lady referred to the City's energy conservation resolution and requested that
the City Manager provide periodic updates on the energy shortage and the Ci~'s
energy conservation efforts.
- Mayor Lady requested consensus from the Council to direct staff to place on a future
agenda for discussion the potential for some type of ordinance or ballot measure
that would require voter approval for major land use changes, such as general plan
amendments or annexations. Council concurred regarding the matter.
- Mayor Lady inquired as to the status regarding a date for the Joint City
Councils/Board Meeting with Grover Beach, Pismo Beach, and Oceano Community
Services District to discuss joint fire efforts. City Manager Adams stated that
Monday, March 26, 2001 appeared to be the best date for all agencies.
- Mayor Pro Tem Ferrara requested consensus from the Council to direct staff to
place on a future agenda for discussion information relating to the televising of City
Council meetings. Council concurred regarding the matter.
- Mayor Pro Tem Ferrara commented that it was time to revisit the Level of Service
policy and traffic guidelines. City Manager Adams stated that staff was currently
preparing to bring this item to Council for review.
13. STAFF COMMUNICATIONS
None.
14. ADJOURNMENT
Mayor Lady adjourned the meeting at 11:10 p.m. to the next Regular City Council
meeting of February 27,2001.
=~
Michael A. Lady, M'!ff.W
ATTEST:
OJrY-
re, Director of Administrative Services!
Deputy City Clerk