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Minutes 1986-01-14 -.. - .- CITY COUNCIL JANUARY 14, 1986 ARROYO GRANDE, CALIFORNIA 7:30 P.M. The City Council met in Regular Session with Mayor Pro Tem Matt Gallagher pres i di ng. Upon ro 11 ca 11 Counc i 1 Members Dorace Johnson and Gene Moots were present. Mayor B'Ann Smith and Council Member D. G. Porter were absent. PLEDGE OF ALLEGIANCE AND INVOCATION Council Member Moots led the Pledge of Allegiance to our flag. The Rev. Gregory Waybright of Grace Bible Church of Arroyo Grande delivered the invocation. ORAL COMMUNICATIONS None CONSENT AGENDA City Manager Bob Mack withdrew item No.1 for correction; Council Member Johnson withdrew Items No.7, 11 and 24 for di scuss i on, and Council Member Moots withdrew Item No.4 for discussion. On motion of Council Member Johnson, seconded by Council Member Moots, and unanimously carried to approve and follow the recommended course of action for Items No.2, 3, 5, 6, 8, 9, 10, and 13 through 23. Due to an error, there was no Item 12 listed on the Agenda. 2. Demand Register (Reccmneoo Approval) 3. December, 1985 Deposit Report (Infollllation) 5. 1986/87 Budget Calendar (Infonnation) 6. 1984 Pedestrian Safety Award (Infollllation) (Reccmnend Approval) 8. December, .1985 Departmental Report (InfOllllation) 9. Brush Popper Arena Property Appraisal (Infollllation) 10. Brush Popper Corre.pondence (InfOllllation) 13. November 21, 1985 Zone 'Ihree Note. (Infollllation) 14. October 18, 1985 SCAT Minute. (Infollllation) 15. October 31, 1985 Animal Regulation Advisory Conmittee Minutes (Information) 16. Spring, 1986 Recreation Schedule (Infollllation) 17. 1986 Soutb' County Seniors' Yearbook (Infollllation) 18. Fire Training Bum Notice (Information) 19. League of California atie.' Legislative Bulletin (InfOllllation) No. 41-1985 20. Resolutiort Acknowledging Annual Review of Drainage Area No. 1 Fees (Reccmneoo Adoption) 21. Resolution Approving aty of Santa Maria Acbission to ccc]pA Liability Insurance Program (RecOCduCoo Adoption) 22. Introduction and Executive &moary from S.L.O. County Master Water Plan Update (Infollllation Only) 23. aty of Santa Maria State Water Action Letter (Information Only) \ -.- CITY COUNCIL JANUARY 14, 1986 ARROYO GRANDE, CALIFORNIA PAGE TWO CONSENT AGENDA Continued Council Member Johnson corrected Item No.1, the Minutes of the City Council meeting of December 18, 1985, by saying that in the fifth paragraph of Page Three it should read, "Mr. Keisler also reviewed recent work completed at the So to complex, saying that R. Baker Construction had put in a drain line, the fence had been finished and the City had gone to bid on the restroom inside the parking lot." Council Member Moots referred to Item No. 4 saying he likES to bring forward the amount of sales tax the City generates each quarter for pub 1 i c information. Mr. Mack said that sales tax revenues have increased practically every quarter over the preceding quarter in recent years. He said that trend was disturbed this last time, but felt there is no basis for concern at this time. He said the reasons could be when and whom the state is collecting from and when they remit. He al so sai d that the 1 ast half of the calendar year generally brings in 53 to 56 per cent of the annual sales tax revenues, and this past half year represented only 51 per cent. Council Member Moots said that generally the sales tax revenues received by the City are getting bigger and bi gger. Council Member Johnson referred to Item No.7 and asked about the process for the South County Sanitary Service Rate Increase. Mr. Mack said the item should have been an Information Item on the Agenda, and that the rate increase is for all the Cities in the South County. He referred to his South County Sanitary Service Rate Increase Status Report saying that he and Mayor Smith are the Council-appointed representatives to negotiate the question of the rate increase. He said a revi sed propos a 1 has been submi tted by South County San i tary Servi ce, and next meet i ng of the negot i at i ng part i es wi 11 be January 22, 1986. Council Member Gallagher asked about the special service to low-income citizens, and Finance Director Dave Bacon said that there is a $1.00 charge for one bag of trash for these people. Council Member Johnson referred to Item No. 11, the General Plan Circulation Element Proposal and suggested that a study session be held on the item. Council Members decided to meet at 1:00 P.M. Tuesday, January 21, 1986, in City Council Chambers Council Member Johnson asked about Item No. 24, Tally Ho Road Improvements Project Progress Payment to John Madonna Construction Company. She asked about telephone poles located in the middle of the sidewalk area just north and easterly of Via LaBarranca. Mr. Mack said that they are not a part of the Madonna Con- struction Co. contract and are a separate project. He said the Council had budgeted money for this project but does not have the rights of way at this time. City Attorney Art Shaw has been directed to respond to the owners' request for formal right of way contract. On motion of Council Member Johnson, seconded by Council Member Moots, and unanimously carried to approve Consent Agenda Items No. 1 as corr~cted, a~d . 4, 11 and 24 as recommended, and Item No.7, which was changed to an lnformatlon ltem. RESOLUTION SUPPORTING STUDY OF THE COASTALBRANCH, STATE WATER PROJECT AND USE OF RECLAIMED WATER Mr. Mack referred to the January 8, 1986 staff report prepared by Director of Public Works Paul Karp, and said that the recommendation is that the City Counci 1 consider a draft resolution for adoptio,n and. transmittal. to the County Board of Supervi sors, in response to dl rect 1 on glVen Staff Wl th adoption of the City Urban Water Management Plan. He pointed out that the resolution calls for a study of the State Water Project and Use of Reclaimed Water. Mr. Mack read the title of the proposed resolution, On motion of Council Member Johnson, seconded by Council Member Moots, and unanimously carried, to dispense with further reading of the resolution. -- CITY COUNCIL JANUARY 14 1986 ARROYO GRANOE, CALIFORNIA PAGE'THREE RESOLUTION SUPPORTING STUOY OF THE COASTALBRANCH, STATE WATER PROJECT AND USE OF RECLAIMED WATER Continued RESOLUTION NO. 1929 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE VOICING SUPPORT FOR A STUDY OF THE COASTAL BRANCH OF THE STATE WATER PROJECT AND WASTE- WATER RECLAMATION WITHIN THE COUNTY OF SAN LUIS OBISPO On motion of Counci 1 Member Moots, seconded by Council Member Johnson, and on the following vote, to wit: AYES: Mayor Pro Tem Gallagher and Council Members Johnson and Moots NOES: None ABSENT: Mayor Smith and Council Member Porter the foregoi n9 Reso 1 ut i on was passed and adopted on the 14th day of January, 1986. GRIEB PROPERTY REPORT Planning Director Stan Eisner referred to his staff report of January 9, 1986, and said that this report on Grieb General Plan/Zoning Proposals was prepared pursuant to the direction from the Mayor and Council. He said the staff had reviewed with the City Attorney and representatives of the Grieb family the reasonable alternatives that appear to be available to the appli- cants and the City with regard to this matter. Mr. Mack said that no Council action is expected at this time. Mayor Pro Tem Gallagher recommended that nearby residents, who have opposed previous plans for the property, should be made aware of the suggested scenarios. SEPTIC TANK AND WATER WELL APPROVAL FOR PARCEL B, TRACT 1278, WILLIAM LACKEY Mr. Karp said the City has received an application from Mr. Lackey requesting permission to install a private water well on his lot in the R-S Zone off Printz Road where water wells are permitted. He recommended that the City Counci 1 grant approval of the well, subject to State and County Health Department requirements on Lot A. He said the City also has received a request to install a private septic tank on the property, which is located more than 250 feet from available sewer, and recommended approval, subject to County Health Department and the Regional Water Quality Control Board requirements. After Council discussion, on motion of Council Member Moots, seconded by Council Member Johnson, and unanimously carried, to approve Mr. Karp's recommendations subject to the conditions set down by him. PARKING AND TRAFFIC COMMISSION APPOINTMENT Mr. Mack said that Mayor Smith had intended to make the appointment of Spencer L. Thomas to the Parking and Traffic Commission. On motion of Council Member Johnson, seconded by Council Member Moots, and unanimously carried, to appoint Mr. Thomas to the Commission. MODIFICATION OF ZONING ORDINANCE, BY REPEALING THE CURRENT R-G AND R-3 ZONING DISTRICTS AND ESTABLISHING A NEW R-3 DISTRICT WITH STANDARDS-PUBLIC HEARING Mr. Eisner said that about six months ago the City Council by Resolution of Intention directed the staff to prepare the necessary General Plan Amendments and Zoning Ordinance Amendment and Map Change necessary to carry out the lowering of the density in the multiple-residential zone and to otherwise modify the Standards for Development to improve the visual quality of our multiple-residential developments to increase the amount of open space to be used by the residents of those projects. He said last year a General Plan Amendment was brought both to the Planning Commission and the City Council which lower the density of the multiple-residential from 17 units per acre to a single category of 14 units per acre. He said the Staff has Rrepared for Public Hearing a draft of an Ordinance which will carry out the lowering of the density and the changing of the development standards in the -- CITY COUNCIL JANUARY 14, 1986 ARROYO GRANDE, CALIFORNIA PAGE FOUR MODIFICATION AND ZONING ORDINANCE, BY REPEALING THE CURRENT R-G AND R-3 ZONING DISTRICTS AND ESTABLISHING A NEW R-3 DISTRICT WITH STANDARDS Continued multiple-residential zones. He recommended that the R-G Zone be eliminated from the Zoning Ordinance, and that the R-3 Zone be re-written so as to lower the pract i ca 1 development density to 14 units per acre and to increase the open space requirements. He explained the major changes in the draft ordinance. Mayor Pro Tem Gallagher said the notice of Public Hearing had been duly pub- lished and all requirements met for this public hearing and invited the public to address the Council. When no one came forward, he dec 1 ared the hear i ng closed. After Counc i 1 comments, Mr. Eisner read the title of the proposed Ordinance. On mot i on of Counc i 1 Member Johnson, seconded by Counc i 1 Member Moots, and unanimously carried, to dispense with further reading of the Ordinance. ORDINANCE NO. AN ORDINANCE OF THE CITY OF ARROYO GRANDE MODIFYING THE MULTIPLE FAMILY RESIDENTIAL DEVELOPMENT STANDARDS BY REPEALING ARTICLE 8 "GARDEN APARTMENT RESIDENTIAL DISTRICT OR R-G DISTRICT", AND REPEALING AND AMENDING ARTICLE 9, "MUL TIPLE-FAMIL Y RESIDENTIAL DISTRICT OR R-3 DISTRICT", AND AMENDING THE APPROPRIATE TITLES AND THE LEGEND ON THE ZONING MAP Mayor Pro Tem Gallagher said that constituted the first reading of the proposed Ordinance. MODIFICATION OF ZONING ORDINANCE TO ESTABLISH A GENERAL COMMERCIAL DISTRICT IN THE ZONING ORDINANCE AND MODIFYING THE NEIGHBORHOOD COMMERCIAL DISTRICT AND HIGHWAY SERVICE COMMERCIAL ZONE-PUBLIC HEARING Mr. Eisner explained that thi s Zoning Ordinance amendment and accom- panying Zoning Map amendment are intended to implement modifications to the General Plan already adopted by the City Counc i 1. He said the Planning Commission has held public hearings on both the text amendments and the maps, and recommended approval of both to the City Counci 1. He said that the Pl anni ng Commi ss i on had been concerned for some time that the Ci ty di d not have a General Corrrnercial Zone. He said that the Hi ghway Servi ce Zone is oriented more toward heavier uses than are now appropriate for Traffic Way and Grand Avenue. He said that in the long-run these changes should stimul ate retail use along Grand Avenue. After questions from the Council, Mayor Pro Tem Ga 11 agher said the notice of Public Hearing had been duly published and all requirements met for this public hearing and invited the public to address the Council. MARIE CATTOIR, 195 Orchid Lane, objected to the fact that there will be no general offices, professional offices, banks or savings and loans permitted in the C-3 Zone. She said more time should be taken to inform the public about the new Ordinance and changes. She said that when there are this many changes more imput is needed from the pub 1 i c, expeci ally in the Traffi c Way area. MAX HARRIS, 212 McKinley, askedifat present non-conforming property would be affected by resale of the business, and could not curb, gutters and sidewalks be upgraded upon such resale? City Attorney Art Shaw said that the City 1 i censes bus i nesses for revenue basi ca 11y and not to regul ate them in that regard. He said that if a business ceases operation, it would have to comply with the Zoning Ordinance at that time. ROBERT KNOX of 414 Traffi c Way spoke about hi s concerns about the C-3 Zone eliminating the professional and general office businesses. Mr. Eisner described the C-3 Zone, it purpose and permitted uses. MARIE CATTOIR asked Mr. Eisner if he could for see the H-S Zone being enlarged in the Traffic Way area, and he replied that it is not likely now since the area is pretty well defined historically as well as physically. Mrs. Cattoir said most of the permitted uses in the past have been in the C-2 category and with the limited area, she could see retail shops there also. She said she wondered about the heavy duty uses there. . -- CITY COUNCIL JANUARY 14, 1986 ARROYO GRANDE, CALIFORNIA PAGE FIVE MODIFICATION OF ZONING ORDINANCE-COMMERCIAL-PUBLIC HEARING Continued KEN MCDANIEL of 396 Miller Way said he owns property at Traffic Way and Cherry Avenue and would like to have professional office space and a restau- rant. He asked the Council to consider that a nice office building would look better at this entrance to the Vi 11 age. Mr. Mack said that the City Council is at this time dealing with a long-range view. He sai d that what is bei ng proposed is that the H-S Zone should be maintained and clarified by not permitting uses that can go in other districts, so as not to take up property which would serve the highway. MARl E CATTOIR sai d she wants South Traffi c Way to be H-S but doesn I t want some types of businesses deleted. Mayor Pro Tern Gallagher called for others to speak; when no one came forward the public hearing was closed. After Counc i 1 discussion, Mr. Eisner read the title of the proposed Ordinance. On mot i on of Counc i 1 Member Johnson, seconded by Council Member Moots, and unanimously carri ed, to dispense with further reading of the Ordinance. AN ORDINANCE OF THE CITY OF ARROYO GRANDE AMENDING SECTIONS 9-4.1201 THROUGH 9-4.1213, "NEIGHBORHOOD COMMERCIAL: (TITLE ONLY)"; REPEALING ARTICLE 14 IN ITS ENTIRETY: AND ADDING ARTICLE 13A, "GENERAL COMMERCIAL OR C-2 DISTRICT" AND ARTICLE 14, I "HIGHWAY SERVICE OR C-3 DISTRICT"; AND AMENDING THE ZONING MAP Mayor Pro Tern Gallagher said that constituted the first reading of the proposed Ordinance. Mr. Eisner thanked Peter Rosen, special projects planner who worked on both of the foregoi ng Ordi nances and has devoted about three and one-ha 1 f months to the projects. He said he has done an excellent job. SONIC CABLE TV RATE NOTICE Mr. Mack reported that the City had been notified by Sonic Cable TV that there will be a rate increase, effective March 1, 1986, of five per cent. He said residential subscribers will receive notice of the change on their February invoice, which they should receive during the last week of January, and the March invoice will reflect the revised rates. He said commercial subscribers will be notified by separate letter during the last week of January. He said the Federal Communications Commission permits a five per cent annual increase, and the City only receives and files this notice from Sonic. PROPOSED ASSESSMENT DISTRICT NO. 81-1 FOR PUBLIC WORKS IMPROVEMENTS, RANCHO GRANDE AND CERTAIN ADJOINING AREAS-PUBLIC HEAR I NG Mr. Karp referred to his January 8, 1986, staff report on "Abandonment of Assessment District Number 81-1" and recommended that the City Counc i 1 consider imput by the Staff at this continued public hearin9 on the Assessment District. He recommended that a motion be adopted authorizing the Mayor and City Clerk to execute the Improvement Agreement with regard to construction of the public improvements placed as conditions to Parcel Map AG AL 83-013 and Tract 1132. He also asked the Council to adopt, with appropriate direc- t i ves to Staff to proceed with record at i on, the Reso 1 ut i on abandoni ng procee- dings and Rejecting Construction Bids with the conditions he recommended. He referred to his letter of December 17, 1985, to Ottse, Inc., with regard to the abandonment of proceedi ngs for Assessment District 81-1, and said the developer is currently negotiating with the low bidder for the City's project to proceed with the project with private funds. He said the developer is also working with a financial institution to satisfy requirements outlined in the 1 etter determi ned necessary by Staff to obtai n a recornmendat ion for di stri ct proceedings abandonment. . - CITY COUNCIL JANUARY 14, 1986 ARROYO GRANDE, CALIFORNIA PAGE SIX PROPOSED ASSESSMENT OISTRICT NO. 81-1 FOR PUBLIC WORKS IMPROVEMENTS, RANCHO GRANDE AND CERTAIN ADJOINING AREAS-PUBLIC HEARING Continued He said that he believes that the developer also intends to post adequate funds to commence with inspection of the project by City forces, and one of the terms of the agreement i nc 1 udes acknowl edgement by the developer and his financial institution that proceeds from the Instrument of Credit may be used to condemn any rights of way deemed necessary to complete the project should those not be dedicated as currently planned. He said that because the developer considers it a necessity to execute in a timely manner a contract with the City's low bidder, this matter has not been continued to a future Council meeting. He said it is conceivable that the developer will be able to resolve all of the concerns outlined in the Staff letter within the next few days. He said the developer had requested the Staff to place the matter in its present form before the City Council. He said the City's District Counsel had no objections to adoption of the proposed resolution by a motion including conditions which must be met prior to recordation, but he did express concern that the resolution itself not be modified from its drafted form to avoid future confusion during title searches. Mr. Karp said that although the developer is willing to enter into a developer agreement and post appropriate security to guarantee performance of the public improvements, he will be presenting the subdivision maps to the City Council until some future date. Mr. Mack referred to the December 31, 1985, letter from Peter C. Miller, attorney for OTTSE INC., and its accompanying Protest of Assessment District 81-1 to the Clerk of the City Council of the City of Arroyo Grande. Mr. Karp explained the agreement the City would enter into with OTTSE INC. upon compliance with the conditions, which would be part of the motion to approve the Assessment District Abandonment Resolution. After Council questions of staff, the Mayor Pro Tem said the notice of Public Hearing had been duly published and all requirements met for this continued public hearing and invited the public to address the Council. .._-,--".. - F. J. KIRKPATRICK of Printz Road said his property has not been included in the assessment district and could not be assessed, but he was concerned about an easement. Mr. Karp said that the current proposal is to establish an ease- ment between the new tank site and the easterly boundary of Tract 1278. This easement will not be created until the area to contain the easement is resubdivided by Rancho Grande some time in the future. , REUBEN KVIDT of Oak Park Acres said he had no objection to the abandon- ment of the assessment district, that he feels Oak Park Acres is adequately protected, and Rancho Grande is working with them. The Mayor Pro Tem called for others to speak; when no one came forward the public hearing was closed. On motion of Council Member Johnson, seconded by Council Member Moots, and unanimously carried, to adopt the recommendation of the Public Works Director as outlined in his Memo of January 8, 1986, with regard to the Abandonment of Proceedi ngs for Assessment Di stri ct No. 81-1, subject to the following conditions: ~ 1. Pri.Jr to execution of the attached "Agreement" by the Mayor and City Clerk, it shall be modified as follows: a. Instrument of Credit may be used to pay the Cit). the approp- riate insgection fee lhf fee Shrll ~e due and ~atable i9 full pr10r 0 ommencement 0 he cons ruc 10n proJec 0 comp e e improvements for Tract 1132 and Parcel Map Number AG 83-013. b. Instrument of credit may be used to guarantee payment to the City the out of pocket expenses to form the district being abandoned. The developer shall pay the fees with separate funds as the actual amounts of consultant fees are made known and such are invoiced to the developer. ~ CITY COUNCIL JANUARY 14, 1986 ARROYO GRANDE, CALIFORNIA PAGE SEVEN PROPOSED ASSESSMENT DISTRICT NO. 81-1 FOR PUBLIC WORKS IMPROVEMENTS, RANCHO GRANDE AND CERTAIN ADJOINING AREAS-PUBLIC HEARING Continued 2. Recordation of the resolution ordering abandonment and rejection of construction bids shall not be carp1eted by the City Staff until the "Agreement" is modified as required; executed by the Developer; and returned to the City Engineer along with the stated instrument of credit. Mr. Karp read the title of the proposed Resolution, and on mot i on of Counc i 1 Member Johnson, seconded by Council Member Moots, and unanimously carried to dispense with further reading of the proposed Resolution. RESOLUTION NO. 1928 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE, CALIFORNIA, ABANDONING PROCEEDINGS AND REJECTING BIDS FOR THE CONSTRUCTION OF CERTAIN IMPROVEMENTS IN ASSESSMENT DISTRICT PURSUANT TO THE "MUNICIPAL IMPROVEMENT ACT OF 1913" On motion of Council Member Moots, seconded by Council Member Johnson, and on the following roll call vote, to wit: AYES: Mayor Pro Tem Gallagher and Council Members Johnson and Moots NOES: None ABSENT: Mayor Smith and Council Member Porter the foregoing Resolution was passed and adopted the 14th day of January, 1986. Mr. Karp said he would be reporting back to the Council on the progress of the matter. OAK PARK INTERCHANGE REPORT Mr. Mack gave the background on negot i ati ons with the City of Pi smo Beach concerning the proposed interchange, and said there could be a delay in the beginning of the construction. He said Ca1 Trans has offered to alter its position on the off-ramps. He recommended that the City Council accept Ca1 Trans latest proposal which would permit the northbound on-ramp to remain open during and after both project phases. REUBEN KVIDT said that the Ca1 Trans latest proposal is a good one and that he would support it on behalf of Oak Park Acres. Mr. Mack reported that Cal Trans would be installing some stop signs at the intersection of Oak Park Boulevard and the Freeway, and it was his under- standing that there would be warning signs for traffic going East. STATE LEGISLATION REPORT Mr. Mack reporting on the following proposed legislation: 1. Compulsory and Binding Arbitrat i on for Peace Officer and Firefighter Labor Negotiations. SB 1398 (Dills) 2. State Public Employment Relations Board. Unfair Labor Practices. SB 1254 (Dills) 3. Workers' Compensation: Cancer Presumption for Peace Officers. AB 564 (O'Connell ) Mr. Mack recommended that the Counc i 1 oppose thi s 1 egi slat i on, and on motion of Council Member Johnson, seconded by Council Member Moots, and unanimously carried, that a letter be wri tten to legislators stating the Council's view of these issues. , ~. CITY COUNCIL JANUARY 14, 1986 ARROYO GRANDE, CALIFORNIA PAGE EIGHT CITY LIA8ILITY INSURANCE REPORT Mr. Mack said the liability insurance situation has continued to deteriorate. He explained that the City is self-insured through the CCCJPA Deposit Account up to $100,000.00 per case. He said above that the City is insured through a Planet Commercial policy, which may in the future be dropped by Planet. He said we are looking at creating a self-insurance program with a statewide JPA, or one through the League of California Cities. DESIGNATION OF NEXT COUNCIL MEETING DATE On motion of Council Member Moots, seconded by Council Member Johnson and unanimously carried, to move the next City Council meeting date to Monday; January 27, 1986, at 7:30 P.M. FARMERS MARKET LIABILITY INSURANCE REPORT Mr. Mack said that John Turner had notified him that the Farmer's Market Association had lost its current coverage, and that it is unprotected. He said the Saturday Farmer's Market would have to be cancelled, and that the Association is looking for a new policy. After Council discussion of the matter, it was decided that the Farmer's Market could come under the auspices of the Parks and Recreat i on Department and come under the Ci ty' s Li abil ity Insurance for a period of 60 days. The Council said that should give the Farmer's Market time to find its own liability insurance. WRITTEN COMMUNICATIONS --"- HIGHWAY 227 BYPASS STUDY Mr. Mack reported that the San Luis Obispo Area Coordinating Council adopted a recommendation by its staff to include a special study of the Highway 227 Arroyo Grande Bypass in the next STIP and add the Bypass to the State Long Lead Project List. He said by so doing the Coordinating Council further emphasized its concern over the status of Highway 227 through the Vill age area. He said the action taken by the Coordinating Council will be forwarded to Cal Trans by Coordinating Council Staff. He said no Council action is required at this time. STATE WATER PROJECT Mr. Mack said that the mayors of San Luis Obispo County had met to dis- cuss their community interests on water, but that no one is prepared to commit at this time, and discussion will continue. ORAL COMMUNICATIONS Mr. Mack Said that the private operator of SCAT had liability insurance go up to $42,000.00 annually and cannot pay and continue to operate the system. He said the SCAT Board directed the City Staffs to work up solutions and report back at the next meet i ng. The Board also authorized Arnold Dowdy to shut down SCAT, if necessary, as an emergency measure. Mr. Mack offered several alternative solutions. One was for the members of SCAT to pay the premium, and the other was for one of the cities to operate the system. No Council action was taken. Also on the subject of SCAT Mr. Mack reported that the three cities had rebuffed a County staff attempt to administer SCAT and/or to operate the system next year. He said the cities prefer to administer through Mr. Dowdy and operate the system through a private contractor. He said new buses will likely arrive in May/June. He said three cities will pay their share until reimbursed by the Feds. He said the San Luis Obispo County Counsel said that the County cannot do the same for its share, and wi 11 borrow from Grover City and pay interest. CITY COUNCIL JANUARY 14, 1986 ARROYO GRANDE, CALIFORNIA PAGE NINE ORAL COMMUNICATIONS Continued Mr. Mack reported that he had attended the Vision 2000 conference and a report on the recommendations coming from the conference will be sent to the Cities. ADJOURNMENT TO STUDY SESSION On mot i on of Counc i1 Member Moots, seconded by Counc i1 Member Johnson, and unanimous ly carri ed, to adj ourn the meet i ng to a study ses s i on at 1: 00 P.M. Tuesday, January 21, 1986. The time was 10:00 P.M. MAYOR ATTEST: --_.~- --