Minutes 2009-03-10MINUTES
REGULAR MEETING OF THE CITY COUNCIL
TUESDAY, MARCH 10, 2009
COUNCIL CHAMBERS, 215 EAST BRANCH STREET
ARROYO GRANDE, CALIFORNIA
1. CALL TO ORDER
Mayor Ferrara called the Regular City Council meeting to order at 7:00 p.m.
2. ROLL CALL
City Council: Council Members Jim Guthrie, Ed Arnold, Mayor Pro Tem Costello, and
Mayor Ferrara were present. Council Member Fellows was absent.
City Staff Present: City Manager Steven Adams, City Attorney Tim Carmel, Director of
Financial Services Angela Kraetsch, Chief of Police Steve Annibali,
Director of Parks, Recreation and Facilities Doug Perrin, Director of
Public Works Don Spagnolo, Director of Community Development Rob
Strong, and Associate Planner Ryan Foster.
3. FLAG SALUTE
A representative from Knights of Columbus led the Flag Salute.
4. INVOCATION
Pastor Randy Ouimette, Saint John's Lutheran Church, delivered the invocation.
5. SPECIAL PRESENTATIONS
5.a. Mayor's Recognition of Former Commissioners, Committee, and Board Members.
Mayor Ferrara recognized the following outgoing City Commissioners, Committee, and Board,
Members for their outstanding service to the City and presented them with a City plaque: Doug
Tait, Planning Commission (December 2004 -December 2008); Phil Lozano, Parks and
Recreation Commission (January 1999 -January 2009); and Scott Harrison, Parks and
Recreation Commission (January 2005 -January 2009). He also recognized those who were
not present to receive their plaques, including Ron Addison, Parks and Recreation (January
2005 -January 2009); Joel Couser, Traffic Commission (January 2005 -November 2008); and
Terry Moore, Architectural Review Committee (January 2007 -January 2009).
6. AGENDA REVIEW
6.a. Ordinances Read in Title Only.
Council Member Amold moved, Mayor Pro Tem Costello seconded, and the motion passed
unanimously that all ordinances presented at the meeting shall be read in title only and all
further reading be waived.
7. CITIZENS' INPUT. COMMENTS. AND SUGGESTIONS
Richard Duffin, Newport Avenue, expressed concern about the heavy truck traffic at Courtland
and E. Grand Avenue as it relates to pedestrian crossing from the Cortina de Arroyo Grande
senior housing complex and requested the City consider crosswalks at this location.
Mayor Ferrara referred the matter to the Public Works Director for review.
Minutes: City Council Meeting
Tuesday, March 10, 2009
Page 2
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 Arnold moved, and Council Member Guthrie seconded the motion to
approve Consent Agenda Items 8.a. through 8.h., with the recommended courses of action.
The motion passed on the following roll-call vote:
AYES: Arnold, Guthrie, Costello, Ferrara
NOES: None
ABSENT: Fellows
8.a. Cash Disbursement Ratification.
Action: Ratified the listing of cash disbursements for the period February 16, 2009
through February 28, 2009.
8.b. Consideration of Annual Adjustment of Development Impact Fees.
Action: Adopted Resolution No. 4164 as follows: "A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF ARROYO GRANDE ADJUSTING DEVELOPMENT
IMPACT FEES BY THE CHANGE /N THE ENGINEERING NEWS RECORD
CONSTRUCTION COST INDEX".
8.c. Consideration of Annual Adjustment of Sewer Connection Fees Based on
Changes in the Engineering News Record Construction Cost Index.
Action: Adopted Resolution No. 4165 as follows: "A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF ARROYO GRANDE ADJUSTING SEWER CONNECTION
FEES BY THE CHANGE IN THE ENGINEERING NEWS RECORD CONSTRUCTION
COST INDEX".
8.d. Consideration of Approval of Minutes.
Action: Approved the minutes of the Special City Council Meeting of January 27, 2009,
the Regular City Council/Redevelopment Agency Meeting of January 27, 2009; the
Special and Regular City Council Meetings of February 10, 2009; and the Regular City
Council Meeting of February 24, 2009, as submitted.
8.e. Consideration of Council Appointment to Parks and Recreation Commission.
Action: Approved the recommendation of Council Member Jim Guthrie to appoint
Shawn Blethen to the Parks and Recreation Commission.
8.f. Consideration of Resolution Granting aOne-Year Time Extension and Approving
Project Phasing for Vesting Tentative Tract Map No. 04-004 and Planned Unit
Development No. 04-001; Applicant - DB 8 M Properties, LLC; Location - 415 East
Branch Street
Action: Adopted Resolution No. 4166 as follows: "A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING TIME EXTENSION
CASE NO. 08-008 AND PROJECT PHASING FOR TENTATIVE TRACT MAP CASE
NO. 04004 AND PLANNED UNIT DEVELOPMENT CASE NO. 04001; APPLICANT -
DB&M PROPERTIES, LLC; LOCATION - 415 EAST BRANCH STREET (THE
CREEKS/DE PROJECT)".
8.g. Consideration of a Resolution Accepting an Irrevocable and Perpetual Offer to
Dedicate Right-of-Way on East Cherry Avenue for the Traffic Way Streetscape
Project, PW 2007-10.
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Tuesday, March 10, 2009
Page 3
Action: Adopted Resolution No. 4167 as follows: "A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF ARROYO GRANDE ACCEPTING AN IRREVOCABLE
AND PERPETUAL OFFER TO DEDICATE RIGHT-OF-WAY ON EAST CHERRY
AVENUE FOR THE TRAFFIC WAY STREETSCAPE PROJECT".
8.h. Consideration of Extension of Agreements with Grande Mobile Manor and
Halcyon Estates for Temporary Water Service.
Action: Approved a Third Amendment to the existing Agreements with Grande Mobile
Manor and Halcyon Estates extending temporary water service for an additional 6-month
period.
9. PUBLIC HEARINGS:
9.a. Consideration of Tentative Tract Map 07-002 and Planned Unit Development 08-
003; Greg Nester; 451 Hidden Oak Road.
Assistant Planner Foster presented the staff report and recommended the Council adopt a
Resolution adopting a Mitigated Negative Declaration and approving Tentative Tract Map 07-
002 and Planned Unit Development 08-003; located at 451 Hidden Oak Road; applied for by
Greg Nester Construction and Development. Staff responded to questions from Council
regarding the proposed access road; the zoning of the open space area; emergency access;
affordable housing provisions; and water neutralization programs.
Mayor Ferrara opened the public hearing and invited the applicant to address the Council first.
Grea Nester, applicant, responded to Council questions and addressed issues concerning
ingress and egress to the project; emergency access; easements; proposed pathways and
landscaping; grading; stepped foundations; existing topography; drainage; and architectural
design.
Upon hearing no further public comments, Mayor Ferrara closed the public hearing.
Council comments ensued in support of the proposal; support for the primary access from
Hidden Oak Road and secondary (emergency) access from Rodeo; preference for providing
equivalent affordable housing units off-site rather than accepting in-lieu fees; support for the
clustered design and pedestrian pathway; acknowledgement that there is minimal impact to
existing neighborhoods; support for two-story units; and clarification that fire sprinklers are
required as a condition of approval. In response to concerns expressed regarding a complete
emergency access easement, including the adjacent tract, to ensure adequate public safety
circulation, City Attorney Carmel suggested the addition of two new conditions of approval, as
follows:
21 a. The applicant shall dedicate a 24 foot wide emergency access easement over Lots
8 and 12, subject to the approval of the Director of Building and Fire.
21 b. The applicant shall dedicate an access control easement over the emergency
access easement of Lots 8 and 12, subject to the approval of the City Attorney and
the Director of Building and Fire.
Minutes: City Council Meeting
Tuesday, March 10, 2009
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Additionally, City Attorney Carmel also noted that a standard fee protest provision must be
included in the conditions of approval and suggested the following language be added following
Condition #103:
Notice is hereby given, pursuant to Government Code Section 66020, that the applicant
shall have 90 days from the date of this approval to protest the fees and dedications
imposed by this approval.
Action: Council Member Arnold moved to adopt a Resolution as follows: "A RESOLUTION OF
THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING A MITIGATED
NEGATIVE DECLARATION AND APPROVING TENTATIVE TRACT MAP 07-002 AND
PLANNED UNIT DEVELOPMENT 08-003; LOCATED AT 451 HIDDEN OAK ROAD; APPLIED
FOR BY GREG NESTER CONSTRUCTION AND DEVELOPMENT, INC.", as modified to
include Conditions of Approval 21a and 21b, as well as the addition of fee protest language
following Condition of Approval 103, as drafted by the City Attorney. Council Member Guthrie
seconded, and the motion passed on the following roll call vote:
AYES: Arnold, Guthrie, Costello, Ferrara
NOES: None
ABSENT: Fellows
9.b. Consideration of 2009 Water and Wastewater Financial Plan and Rate Study.
Director of Public Works Spagnolo presented the staff report and recommended Council review
the 2009 Water and Wastewater Rate Study and direct staff to prepare a Resolution and
schedule a public hearing to consider approval of: 1) water rate adjustments and the alternative
water rate structure presented in the study in Table ES-3, which will phase Lopez operation and
maintenance expenses into water rates over a 5-year period; 2) rate adjustments to Lopez
charges presented in Table ES-10; 3) wastewater rate adjustments presented in Table ES-7,
which include increases beginning in FY 2009-10; and 4) direct staff to implement a program of
providing a payment due date extension for senior citizens.
Director of Financial Services Kraetsch said that due to the state of the economy, staff was
developing procedures to assist customers in making their payments by waiving one late fee per
year and making payment arrangements when necessary. Additionally, she stated an on-line
payment system is being proposed which would result in cost savings for the City and the
customer, and it was recommended that a program be established which would provide an
extension of the due date for eligible senior citizens.
Clayton Tuckfield, Tuckfield & Associates, gave a PowerPoint presentation on the results of the
Water and Wastewater Financial Plan and Rate Study (on file in the Administrative Services
Department). He stated the objectives of the study were to perform an independent analysis of
water and sewer system finances and rates; develop 5-year financial plans that include revenue
adjustments to meet future annual financial obligations; and evaluate existing rates that recover
the cost of providing service, are fair and equitable, and meet Federal, State, and local
requirements.
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Tuesday, March 10, 2009
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Paavo Ogren, County of San Luis Obispo Public Works Director, noted that City staff had taken
the information provided by the County and incorporated it into the Financial Plan and he was
available to respond to questions.
Mr. Tuckfield then responded to questions from Council regarding the reserve funds;
clarification concerning the current water rate structure; what the actual costs are for Lopez
water versus groundwater; and clarification of inflation factors for water and sewer operations
and maintenance.
Dean Benedict, County Utilities Division Manager, discussed the water treatment plant sludge
beds upgrade project and noted that there is a study currently underway and the exact costs are
not yet known. He said the $600,000 is an estimate at this time and based on the final cost,
other projects could be delayed or reprioritized. He also addressed concerns expressed by
Mayor Ferrara about project and design work that could be done in-house by County Public
Works staff instead of contracted out.
Mayor Ferrara opened the public hearing.
Richard Duffin, Newport Avenue, distributed a copy of his water bills over the past year and
expressed concern about sewer overcharges for 2008. He expressed concern that the sewer bill
includes water consumption charges for watering the landscape, and that water is not going into
the sewer. He suggested a maximum rate be set for sewer service.
Upon hearing no further public comments, Mayor Ferrara closed the public hearing.
Discussion ensued regarding various rate methodologies and their impact on cost and water
conservation; establishing proper levels of reserves in all funds; rewarding customers for using
less water; general support for Option 2; and providing a longer grace period to all customers
instead of trying to identify a specific population. There was further discussion to explain the
difference between Enterprise funds (water and sewer) versus the General fund as it relates to
the use of local sales for infrastructure improvements. Concern was expressed with expenses
of County projects and that the City must be vigilant with efficiency measures. Mayor Pro Tem
Costello requested staff provide data on the actual cost for Lopez water and groundwater at a
future meeting.
Action: Mayor Pro Tem Costello moved to direct staff to prepare a Resolution and schedule a
public hearing to consider approval of: 1) water rate adjustments and the alternative water rate
structure presented in the study in Table ES-3, which will phase Lopez operation and
maintenance expenses into water rates over a 5-year period; 2) rate adjustments to Lopez
charges presented in Table ES-10; 3) wastewater rate adjustments presented in Table ES-7,
which include increases beginning in FY 2009-10; and 4) direct staff to implement a program of
providing a longer grace period for all customers. Council Member Guthrie seconded, and the
motion passed on the following roll call vote:
AYES: Costello, Guthrie, Arnold, Ferrara
NOES: None
ABSENT: Fellows
Minutes: City Council Meeting
Tuesday, March 10, 2009
10. CONTINUED BUSINESS:
None.
11. NEW BUSINESS:
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11.a. Consideration of Adoption of a Resolution Naming the Village Green Area as
Heritage Square and the Park Area Adjacent to the Heritage Square Historical Area
as Heritage Square Park.
Director of Parks, Recreation and Facilities Perrin presented the staff report and recommended
the Council adopt a Resolution naming the Village Green area bordered by Arroyo Grande
Creek, Short Street, Nelson Street and Mason Street as "Heritage Square" and the park area
adjacent to the Heritage Square historical area as "Heritage Square Park".
Mayor 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.
Council comments ensued in support of the recommendations to rename the Village Green area
as Heritage Square and the park area adjacent to the historical area as Heritage Square Park.
Action: Mayor Pro Tem Costello moved to adopt a Resolution as follows: "A RESOLUTION OF
THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE NAMING HERITAGE SQUARE
AND HERITAGE SQUARE PARK". Council Member Arnold seconded, and the motion passed
on the following roll call vote:
AYES: Costello, Arnold, Guthrie, Ferrara
NOES: None
ABSENT: Fellows
12. CITY COUNCIL MEMBER ITEMS
None.
13. CITY MANAGER ITEMS
None.
14. COUNCIL COMMUNICATIONS
In response to a question by Council Member Arnold, City Manager Adams confirmed that the
next Recreation Subcommittee meeting is scheduled for tomorrow, March 11'" at 3:00 p.m.
15. STAFF COMMUNICATIONS
City Manager Adams confirmed and reminded the Council of the Budget Study Session to be
scheduled as a Special Meeting on Tuesday, March 31, 2009 at 6:00 p.m.
16. COMMUNITY COMMENTS AND SUGGESTIONS
Andv Richert, Vard Loomis Lane, expressed concern about a home business that was
transporting and storing hazardous waste materials and containers in a residential
neighborhood.
Minutes: City Council Meeting
Tuesday, March 10, 2009
Mayor Ferrara requested that staff follow-up on the concerns expressed by Mr. Richert.
17. ADJOURNMENT
Mayor Ferrara adjourned the meeting at 10:10 p.m.
Tony Ferri ~I yor/
ATTEST:
Kelly W tm e, City Clerk '/
(Approved at CC Mtg ~l'l`l'~ooq )
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